LAUGFS GAS IPO
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| laugfs gas |
Laugfs Gas Ltd is issuing 75 million voting ordinary shares at Rs 23.00 per share and 52 million nonvoting ordinary shares at Rs 15.00 per share. This is a large issue compared to other IPOs we had in recent past.
Laugfs is having 28% market share in LPG market and planed to increase it to 50% in two years. In addition to their main business Laugfs Gas Ltd ventured in to property development and leisure sector which is a fast developing sector after end of the war.
According to Laugfs Gas prospectus their current stated capital is Rs 780,000,260 divided in to 260,000,086 shares. As at 31st March company’s issued number of shares amounted to 78,000,026 but they increased it to 260,000,086 shares by splitting it on 30th June 2010.
After adjustment for the share split earning per share as at 31st March 2010 is Rs 2.03 and the price earning ratio (PER) stood at 11.33. But this will be diluted with increased number of shares after public issue.
Therefore I do not consider Laugfs Gas Ltd IPO as cheap one but when you consider future growth potential of LPG industry and leisure sector, I think Laugfs Gas Ltd IPO should be considered as a medium to long term investment.
According to the news article published in Daily News (http://www.dailynews.lk/2010/10/11/bus06.asp) on 11th October 2010, Laugfs plans to buy a stake in Shell Gas Company when it listed in the Colombo Stock Exchange. If this happens it will be a great boost for the Laugfs future.
You can download Laugfs Gas IPO prospectus and application forms by visiting http://www.laugfs.lk web site.
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Filed under: Investment Tips • IPO
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Hi thanks for the information.
I don't have account with a broker. Can I use downloaded laugfs gas ipo application to apply without broker stamp on it?
Yes Romesh you can apply for Laugfs Gas Ltd shares with downloaded application and you don't need brokers approval for it.
But if you want sell it on first day of the Lsugfs shares starts trading I suggest you to open CDS account with a stock Broker and insert your CDS account number in share application in order to deposit your share certificate directly to CDS.
You have enough time to open a CDS account as laugfs gas ipo opening date is 4th Nov 2010.
Hi what do you think about hydro power free lanka ltd – IPO, can i get a advice from you
Go for it! You may be able to make quick bucks.
According to article published in LBO website, Laugfs Gas is going to make net profit of a billion rupees in the 2011 financial year with an estimated 2.75 rupees earnings per share fully diluted after the IPO. This means at issue price Rs 23.00, price earning ratio is coming down to 8.36.
I think Laugfs Gas IPO is attractive buy.
hi all…
I think laugfs share price will be increase at the starting time….
Hi everyone,
For laugfs gas as the issue is quite huge compared to previous IPOs, where will the buying demand comes from on the first day?
@ Anonymous
Do not buy Laugfs Gas shares if you are planning sell it on first day. You are correct Laugfs IPO is a big one.
Subscribe to it if you can hold it 6 to 12 months. I mentioned it in my post Laugfs as a medium to long term investment.
Whats best to buy? Voting or Non voting shares?
@ SHIVENDRA,
Go for "VOTING Shares".
In my experience non voting stocks gain slowly than voting stocks but if you invest for long term to get dividend income, non voting option is not a bad idea.
i am new for shere marcket and my first deal is laugfs ipo,do you think it is a good idea?
@ Anonymous,
As I said earlier Laugfs is good medium to long term investment.
Do not expect huge gain on opening day. Because Laugfs is offering big quantity of shares. There will be enough supply in secondary when it listed.
If you have holding power you will definitely make good profit from this investment.
But if Institutions and fresh foreign institutions from the next level of investors who are willing to trade on high PEs walk in they will buy from the market as retailers sell out.
@ Anonymous,
Yes, Good point! Then retailers can make quick profit.
wanna know what ratio they issue there share to applicant.? and which day share 's coming to trade in share market. if i can sell it today and get capital gain from it. its good or bad?
@ Anonymous,
Laugfs IPO basis of allotment still not decided.
Selling it off on first day depends on your holding power and how much it will gain on first day. I am sure it will start trading higher than issued price.
If you want quick profit sell it on first day. But it is worth to hold long term when you look at Laugf's growth potential.
When does trading start for Laucfs share
@ Anonymous,
Hopefully first week of December.
hii,,
if i invest in Stock market,, how can i take profit?? monthly or yearly???
@ chanaka,
No there is no guaranteed profit in stock market investments. It is not like getting fixed interest from a bank deposit.
If you buy 1000 shares in ABC company @ Rs 10/- per share today it may go up or down in next few days (up or down depends on several factors).
If ABC company shares go up by two rupees within just three days you can sell it and enjoy Rs 2000 gross profit within three days. Remember this may go opposite way too.
Investing in shares is high risk high return business. Hope you understand.
If you wish join our forum …
http://forum.guidetocse.com
hi,i have purchased the LGL for the price of 26.3..few of my friends are telling me that the price of lgl will decline suddenly so better to sell it right now.. i need your advise based on the long term point of view
@ BM4,
Don't sell. Laugfs will grow steadily in long run but will not rise sharply in short term due to high liquidity in stock quantity.
It will consolidate within 25 to 30 range for a while. Hold it if you are a long term investor.
I would like to know about the PANASIAN POWER IPO and SINGER FINANCE IPO. Please advise me
@ Ravi,
PANASIAN POWER IPO already closed due to over subscription. Actually I was not interested about it.
Singer Finance IPO is worth to subscribe. Go for it. But you will not able to collect large quantity.
As a tip, apply under other family members names including your self in smaller quantities.
hi everyone,
i have some laugfs gas shears those shears gave more than 20% capital gain in last Friday. but i didn't sell those .do you think will it give more c.gain if i keep it more period ???
chandika,
If any stock gain sharply within short period of time it will decline again when investors try to take the profit.
If you are short term investor you may sell it. It is up to you brother.
Laugfs is good for long term holding if you have holding power.
thanks brother !!!
what will happen to the share prices of Laugfs gas as LAF gas lose its exclusive rights to CPC whole output..
@ Anonymous,
I think there will be a negative impact on Laugfs shares on Monday.
Laugfs should make an announcement on this matter.
Dear adviser
I am new to the share market.But opend a CDS a/c
Can I sell my HNB shares which I bought few yers back
Your advise is very valuable to save time specialy for new comers to the share market
@ nandandavi
Of course you can sell it. First you should deposit your share certificate to your CDS account. Go to your broker's office with it and they will help you
Investment advisors comments are more important than ours