Softlogic - another blunder by JKH?

TuskerLK · 1 Softlogic - another blunder by JKH? Sat May 14, 2011 11:22 pm

TuskerLK

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Dear mates,

I heard that softlogic is also going to come to the IPO at a price extremely higher than the private placement price, which was concluded about one year back. In this case also JKH involvement is there.

To my knowledge both expo and softlogic shares were traded at gray market at very high prices.

It would be grateful if anybody got more information on softlogic last year private placement and present top 20 shareholder list.(Those who bought shares on gray mkt should have got the last year annual report)

What I heard was they issued the shares at 60-80 price level on private placements and subsequently gave a 1:10 share split.

Last edited by Quibit on Sat May 14, 2011 11:38 pm; edited 1 time in total (Reason for editing : Unnecessary fullstops and question marks removed from the topic)

widanage · 2 Re: Softlogic - another blunder by JKH? Sun May 15, 2011 12:16 am

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tinyman wrote:Dear mates,

I heard that softlogic is also going to come to the IPO at a price extremely higher than the private placement price, which was concluded about one year back. In this case also JKH involvement is there.

To my knowledge both expo and softlogic shares were traded at gray market at very high prices.

It would be grateful if anybody got more information on softlogic last year private placement and present top 20 shareholder list.(Those who bought shares on gray mkt should have got the last year annual report)

What I heard was they issued the shares at 60-80 price level on private placements and subsequently gave a 1:10 share split.

As I remember the issue price of the share was Rs 72/- in the private placement. Correct me if I am wrong.
Two weeks ago they were planning to issue the shares at 28/- but has changed to 29/- recently. Which I learned from a reliable source.

JKH has a substantial interest in "The Central" and they go together with AP (Ashok Pathirage). Who else is going to help AP other than JKH.

The other factor is the sale of Nokia phones which had substantially increased since the PP. Due to two main reasons.
1. Opening up of the NE market with the necessary infrastructure.
2. Stringent controls by TRC on phone imports.

Therefore there has to be a significant difference in the financials then and now

However, down side of the story is...

They have to keep a huge inventory to support the market demand with all the models with the risk of being obsolete. Unless you get suppliers credit it is too costly and it is very unlikely to get suppliers credit from a firm like Nokia.

Waiting for the prospectus to see it...

Last edited by widanage on Sun May 15, 2011 12:17 am; edited 1 time in total (Reason for editing : Explantion given on the issue price)

econ · 3 Re: Softlogic - another blunder by JKH? Sun May 15, 2011 4:13 am

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Need prospectus to see what is going on this. I remember they had private placements some time ago.

tkc · 4 Re: Softlogic - another blunder by JKH? Sun May 15, 2011 6:07 am

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econ wrote:Need prospectus to see what is going on this. I remember they had private placements some time ago.

Yes!! Hope it will be a good one....

cse.alpha · 5 Re: Softlogic - another blunder by JKH? Sun May 15, 2011 11:20 am

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2 differences between Softlogic and Expo private placements

1) Softlogic pvt deal was over 12 months ago
- Expo had only a 5 month lag between pvt deal and IPO

2) JKH has not invested in Softlogic
- Carsons and lot of private investors are in Softlogic
- Controversy on Expo was compounded as JKH's independence was questioned as it had 83 million Expo shares at Rs6/-

TuskerLK · 6 Re: Softlogic - another blunder by JKH? Sun May 15, 2011 12:16 pm

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cse.alpha wrote:2 differences between Softlogic and Expo private placements

1) Softlogic pvt deal was over 12 months ago
- Expo had only a 5 month lag between pvt deal and IPO

2) JKH has not invested in Softlogic
- Carsons and lot of private investors are in Softlogic
- Controversy on Expo was compounded as JKH's independence was questioned as it had 83 million Expo shares at Rs6/-

true, but Expo IPO price was 2 times of the Placement price, but Softlogic it's four times.
I don't think 5 months and 12 month time will not justify the premium for the pricing.isn't it
Could you please give the source for ur comment on JKH involvement in Softlogic,have u got their last year annual report, if so geateful if you could share with all....

cse.alpha · 7 Re: Softlogic - another blunder by JKH? Mon May 16, 2011 8:18 am

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tinyman wrote:

Could you please give the source for ur comment on JKH involvement in Softlogic,have u got their last year annual report, if so geateful if you could share with all....

Don't have Softlogic reports, but both JKH and CARS are quoted companies, so FY10 reports are out, and soon FY11 will be - CARS had Softlogic shares (through CINV & GUAR I think) shown in its FY10 Annual Report, so we know the shares were issued before 31st March 2010.

JKH had not shown any Softlogic shares in its FY10 Annual Report, so we can assume that they do not have any.

TuskerLK · 8 Re: Softlogic - another blunder by JKH? Mon May 16, 2011 8:38 am

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Might be, but what I heard was no so, anyway let's see the prospectus

Rstock · 9 Re: Softlogic - another blunder by JKH? Mon May 16, 2011 9:31 am

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Same thing said about Expo Lanka IPO. What happened? It got oversubscribed. I think all this talk about the unethical etc. is to take the prospective investors away and the selected few to take advantage. Therefore these things have to be ignored.

manula · 10 Re: Softlogic - another blunder by JKH? Mon May 16, 2011 9:58 am

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Not same thing. That the fact regarding EXPO prospectus clearly it mentioned. When we get the soft logic prosecutes also if required we can get the confirmation of above. Any IPO can simply oversubscribed by many times. Many people are their buying with out knowing any thing. some time checking the luck . Now see ALUFAB already going in a big loss as mention by directors but still some people are buying. What about CSF??? Any one can buy any thing but you have to think and buy due this is your hard earn money .Choice is on yours.

pradeeptha_007 · 11 Re: Softlogic - another blunder by JKH? Tue May 17, 2011 7:17 pm

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the share price will be 29/- and they will come for the IPO in mid of June

widanage · 12 Re: Softlogic - another blunder by JKH? Tue May 17, 2011 7:32 pm

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pradeeptha_007 wrote:the share price will be 29/- and they will come for the IPO in mid of June

Are you sure about this mid June thing? I was expecting it to close before EXPO comes in to the market.

milanka · 13 Re: Softlogic - another blunder by JKH? Tue May 17, 2011 7:55 pm

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widanage wrote:

pradeeptha_007 wrote:the share price will be 29/- and they will come for the IPO in mid of June

Are you sure about this mid June thing? I was expecting it to close before EXPO comes in to the market.

Mr. Ashok Pathirage said it would be before 10th June.