Good, Seems like Primary Market is much more mature now, I kind of liking the pricing of the IPOs now, Entrepreneurs and initial investors are getting their due share of the asset value they created over the years with good IPO pricing, Good not all promoters are idiots like DMART promoters(like it or not they are idiot investors :)), it''s always fair if you have worked hard for years then you should command fair value from market and don''t resort to cheap populist approach of underpricing IPO for some listing gains for new IPO Investors who run away on listing day. This new model will also control the side IPO financing business started by mediators just to trap NIIs, all this foul business practices should end. Like it or not Primary market has shifted from short term to long term value creation, if you are okay with that invest in IPOs, IPOs are no longer listing gain proposition. Don’t blame promoters for your listing losses, they are right with their prices.
I would say promoters/government have matured faster than most individual investors (sic)
Individual investors should understand that investing in IPO ("Initial" Public Offer) carries much higher risk in comparison to secondary market.
Please take note of word "Initial" in IPO. So investors in IPO are also Initial investors and hence promoters/government does have an ethical responsibility to leave something on the table as an reward for this higher risk.
I am not blaming promoters/government but attempting to remind them of their ethical responsibility.
''Initial'' is just a literal you can''t say something initial if you are getting into it after 15-20 years (Of course, if you are not investing in Reliance Power :)), and if you compare the risk it''s nothing compared to what it would be when the company was formed. But I agree with you on government part, nowadays they are horrible with their IPO pricing, there is difference between pricing your IPO right and horribly wrong. Earlier, Sometimes they used to call LIC and SBI to cover their IPO pricing mess but now they have made it a standard practice.
What risk are we talking about ?? It qualifies as risk when the company is correctly / valued but you trust that company will do well in future. then its a risk. Undervalue a company so that retail investors can make some money by investing at max 15K for some 5-6 days isnt called risk. There is no ethical responsibility here. If you feel its overvalued - DO NOT APPLY. Let long term investors invest. Please dont take RISK and save us the horror.
"Initial" is in the sense that first investors when company became public. Risk for new investors is more as value perception of the company in eyes and mind of varied investor categories is yet to be own and hence their needs to be a reward for this risk taken.
As far as promoters reward for their risk is concerned....when company goes public their INR 1000 would have already become at least 10 lakh. So they are anyway handsomely rewarded. No denying that their risk is more.
So Retail Investors, Now its time to sit tight and pick right.
Now a days even IPOs have also become a smart players game who really can hold there horses in the battle of upward & downward moment of price. Who really knows when to exit by what price to hold. And this is only the first IPO with good subscription and opening at discount. Yet more to come..
All the IPOs this season, even if nicely oversubscribed, opening in loss. because the new retail idiots want listing gains, and then they themselves panic and sell low taking the whole price to a lower level. pura kachara kar diya IPO market ka in logo ne. If you had to panic and sell low, agar kuch hours hold karne ka dum nahi hai toh kyu sabki lagane ke liye apply karte ho?
This extreme greed for instant listing gains has been exploited by companies in pricing issues at un-sustainable valuations and not leaving anything on table even for initial investors in the company.
This is what greed does. 6 times oversubscribed and listing in discount.
Everyone opening demat accounts to invest only in IPOs. This had to happen. Stupid people will come and say that its company''s responsibility to leave money on the table for retail investors. Well, the companies owe you nothing. You are greedy, so are the companies.
Good that companies are pricing their IPOs at high valuations. Greed needs to be shown its place.
That''s funny. if you are not in the ipo market for listing gains why are you worried of price going down after listing? How different are you from the retailer you claim to be greedy?
Stop blaming others for your decisions - if you know retailers are messing up ipo market, don''t apply in ipo and buy it in open market when price goes down. isn''t that a better option?
@ AryanRam - yes. i have learnt my lesson. whoever in this market denies that they are not greedy, is a liar. Yes I am greedy just like the rest, but one should not be a domino in the chain, falling when others fall. this way the whole thing collapses. I feel sad to say that we proud Indians are most vulnerable to influences in every sense- caste, prejudice and now even in Financial Markets..
Dear Altamash brother...before blaming poor retail investors for negative listing, why don''t you look at your strategy of greed, greed and greed...
this is highly priced IPO and will end up like GIC, SBI life and will trade at discount in future.....hope if you are smart enough, next time you take some lessons on valuation from Septa sir and gamble sir...till then keep cribbing on your greed....greedy people always loose money.....
Anand Mahindra is sorry for making retailers sell their shares by paying brokerage from their pockets. Please wait if possible, i am trying to take it above issue price. Can''t say anything right now.....all depends on volumes and brokerage houses....Keep Hope....
590. Carn Mohan| Link| Bookmark|
November 10, 2017 11:25:01 AM
IPO Guru (1300+ Posts, 500+ Likes)
Sell all new ipos immediately otherwise you will lose all your hardearn money all are highly overvalued.
Good that no allotment. On listing day, this is the scene means coming days may be like GIC with making new lows everyday. Better to exit at PAR and enter later if you are interested in Brand name.
shahbash! thank you for contributing in taking the price to a whole new low level. Appreciate what you have done. We are so proud of you. Had it not been people like you, we might have a positive listing. But you saved us all. Thank you once again. This forum will always remember your self-less contribution.
There is no single established relationship between subscription and listing gain. Higher subscription gives a comfort feel during IPO that ''''All is well'''' with our investment. A decent subscription multiple is better than very high multiple, more important is future potential of the stock and current valuations.
Heavy subscription doesn''t always mean high listing/quick gains. In last one year there has been almost 70-80% growth in no of demat ac in the country. This is only because of ever growing expectations of listing gains from IPOs. Very soon at last 40-50% of these demat ac will become inactive/defunct accounts after new investors lose significant money as companies will continue to squeeze listing gains with increasingly higher ''''Initial'''' valuations sought.
So play safe in IPO market and stay alert as it is ''''Your own money''''.
586. BullOverBear| Link| Bookmark|
November 10, 2017 10:38:19 AM
Top Contributor (300+ Posts, 100+ Likes)
For all who are first timers and entered IPO for listing benefit,
1. Don''t be bothered about 2-3% loss in IPO listing, ----------like others this was heavily quoted and it was gambling on bullish market during listing. Will suggest 5% as stop-loss
2. If you have well though decision to have logistic company in portfolio then only stay -----------beside this may be available at some cheaper price afterwards 3. IMP: don''t get dragged in listing day trades (i.e. fresh addition or short selling) ------ courtesy one of the prominent boarder in this forum. And mind it game is very risky on listing day..need very shear skill for this
At last: - suno man ki karo dil ki
586.1. BullOverBear| Link| Bookmark|
November 10, 2017 10:39:49 AM
Top Contributor (300+ Posts, 100+ Likes)
Some beginner strategies(most of them follow it) 1.apply and if subscription is not high than if not allotted don''t worry if allotted sell in 15 mins!!
2.most people come for listing gain they thought yadi invest hi karna hota to primary market me kyo aata directly equity m invest nhi krta(they don''t have calculation like me!!)
3.And bank are not giving interest as much as they earn in ipo(in 15 days) and if even single one is allotted with fair pricing it will return whole years interest!!!(or vese bhi 15k-20k u hi pde rahte h)
4.some of them have broker friend who had encouraged them to invest in ipo if he will say apply then apply.