innam wrote:the IPO price you might say is not vastly over priced for a conglomerate but the biggest problem is that the existing shareholders had sold nearly 300 million of shares at a price of Rs 6/=, so friends and the big players have got 300 million shares at 6/= while retailers and smaller big boys are going to get 172 million at 14/=......the question is will those 300 million shares get dumped onto the market on the first day or will the SEC one year lock rule apply to them?
Hi innam
When u see the prospectus page No 44, there is a statement that "There were no shares issued for two (02) years preceding the date of the prospectus". . Therefore CINV/WAPO, JKH and others will be able to sell even in first day.. SEC rule only will apply to the shares allotted after FEB 7 2011...
So there is high possibility these guys will dumb, when shares hit to mkt, Since these investors have been waiting for more than 2 years...
or else there should be some pre-agreement with these shareholders.
will see what will happen....
Last edited by seyon on Fri Apr 22, 2011 1:51 pm; edited 1 time in total