Crow's Red Flags:
1. As of day 1, GMP is a measly 6%.
2. Full OFS for a growing company can mean that the promoters are cashing out at a favourable juncture. Will there be anymore upmove is a question. Post-issue promoter holding going down to 46 is another indicator.
3. P/E ratio of 38 is high but due to first-mover advantage, could be ignored. But not when the GMP is behaving like a migratory bird.
4. Management is involved in financial, civil, and criminal litigations, some of which are still active. Even IRDAI has levelled showcause notices to its subsidiaries, which hint at potential unfair trade practises, a stereotype usually attached to the insurance business.
5. Correlation is not causation but none of the previous IPOs since 2020 in similar kind of business gave any listing gain and/or have moved beyond their below-issue-price languishing.
PB Fintech gave a 17% pop but now ~15% down
Star Health listed -6% and now nearly half its price
LIC gave a chance to exit but still ~12% down
Always in restraint of Mrs. Crow.