Power Grid Ipo: Power Grid Ipo Issue Price

FPO Opening Date: Power Grid FPO Opening Date set to November 9 – 2010
Power Grid Corporation of India , India’s highest energy transmission establishment will be able to be hitting the capital markets provided it’s mimic on public offer(FPO) in the period of November 2010.

The FPO is imminent to open on November 9th .The Power Grid FPO ought to end for the QIB segment on the November 11th 2010. For Retail …

Why are experts bullish on Power Grid Corp FPO?

The follow-on public produce (FPO) of India's most major inter-state transmission firm Power Grid Corp is set to open for subscription on November 09, 2010. It is initiating 84,17,68,246 equity shares within FPO at a price levels band of Rs 85-90/share. The firm aims to appreciate !no! as opposed to Rs 7500 crore via this moment FPO.

Experts feel the levels band of the problem is tantalizing for investment. Investment Advisor, SP Tulsian said, "Our advise to retail investors is to go for presently trouble by applying at upper band of Rs. 90 per share. If one applies for 1,105 shares, he is possibly to get allotment of regarding 700 shares, that can find a income of Rs 15,000 in a month’s time.

So, folks who missed on Coal India can try such a luck here. Those who own tasted earning in Coal, are advised to go for Power Grid, to have particularlly action replay!"

Why are authorities bullish on Power Grid Corp FPO?

Manish Bhatt of Prabhudas Lilladher moreover advised subscribing the quandary at cut-off. "The challenge looks as if it's wonderful and still pricing appears attractive. The municipal has left funds for investors," he explained.

A share, in the future of question opening, closed at Rs 98.35, ebbed 3.58% on incredible volumes. However, Tulsian performs not suppose the share to end under Rs 95 till closure of FPO. He said, "It can move to Rs 110 by end of November, by the little bit we may see allotment of FPO, taking out completed.

Even if we predict the book to get found at Rs 90 and planning to a price cut of 5% to retail investors, net acquisition price level to them is able to be Rs 85.50 per share. Hence, that is anticipated to come up with a terrific selection to earn, between Rs 15 to Rs 25 per share in later one month."

Hitul Gutka, examination analyst at PINC alleged he feels the FPO is attractively priced. “The price levels band of Rs 85-90 is a happy rate and investors can surely seem to invest at the upper levels band,” he advised.

He moreover has a objective on the inventory of Rs 115 amongst a one-year perspective. Samir Arora of Helios Capital feels the Power Grid FPO is really good. "Pricing is basically superior for Power Grid. We may apply. But I'm professing on a macro rank of view you plans to not get that sort of size again, software sizes of people due to the fact that now is a listed company. And in a listed organization multitude of households suffer the option of only purchasing it in the economic and pay 3-4% higher," he reasoned.
Source:http://www.moneycontrol.com/news/ipo-tip/whyexperts-bullishpower-grid-corp-fpo_497483.html