the point is risk reward matrix the question is about probability (frequency distribution) of allotment vis-a-vis the risk taken!!!! Higher the risk (200000 single application) higher the probability of allotment and vis-a-versa so if 150 people apply at maximum lot the ratio of allotment should be higher for them then the minimum lot, in case of over subscription
if this is not there is foolish to apply maximum lot!!!!! While actually it should be the other way round...
example you have given is not apt!!! you are assuming that i apply in 7 different applications with minimum lot.... but for single lot application (15000) of Mr B i still get allotted minimum lot when there is over subscription while if Mr A apply at Rs 200000 he still get minimum lot irrespective of putting 13 times higher amount than Mr B
to over come this stupid logic of SEBI you are suggesting to apply Rs 200000 in different application that is 13 applications of 15000 each....
so by the way you are confirming that there is no logic in applying maximum lot in one single application....
So why the hell do we have 200000 as limit???? so instead of having this limit it is better to have fixed lot wise restriction for retail segmen... so even if over subscribed or under subscribed all have equal risk...
the question is about probability (frequency distribution) of allotment vis-a-vis the risk taken!!!! Higher the risk (200000 single application) higher the probability of allotment and vis-a-versa so if 150 people apply at maximum lot the ratio of allotment should be higher for them then the minimum lot, in case of over subscription
if this is not there is foolish to apply maximum lot!!!!! While actually it should be the other way round...
2L limit shud be raised (to 5L or 10L) for retail segment. The companies would want highest number of applicants to get shares and not give shares in proportion to their bid amount. Hence if you have many/max ids, better to apply for all ids (whatever be the proportion) to get max allotment. So if its oversubscribed by 6 times, all ids applied for more than 2 lots would get 2 lots and rest might be proportionately distributed. But if its 13 or more times, all would get 1 lot and might as well be lottery system.
Dear Eagleye, what all Brokerages are providing NBFC funding for this and what is break even price, Interest rate for HNIs? Could you please respond asap.
Thanks mam ap return aaye abi apke comments read ke or music mein kal apply karuga apke comments ke bina sabke liye decide Karna Kafi difficult tha we all are dependable on you madam thanks for return
Apply in avenue Mart Ipo the company looks promising to me. As far as music is concerned I am applying in the company and hence in case of tepid listing I will hold this stock. Recommend to apply in both ipo for listing gains.
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March 7, 2017 8:50:23 AM
IPO Mentor (900+ Posts, 1100+ Likes)