Good subscription does not always mean green listing with bumper premium .Look at Powermech, QIB 27 times subscribed HNI 130 times subscribed. But it was in red..!!!
275.1. Haar Jeet| Link| Bookmark|
February 10, 2016 11:08:19 AM
Top Contributor (300+ Posts, 200+ Likes)
271. Chem cho| Link| Bookmark|
February 10, 2016 10:40:01 AM
IPO Guru (2500+ Posts, 2700+ Likes)
Retailers have to decide , whether to apply or not considering their risk appetite , those of who have earned money in IPO above RS 50000 in this year 2015-2016 can take the risk , Those of who are new and want to test game plan can apply
after all it is your money ,
remember nifty is all time low , and no new IPO are likely to hit the market till budget blues , and market reaches above 25000
QIB may HNI may apply are you so much rich to loose money like PRECAM, COFFEE DAY
As per current situation in market, IPO market seems bearish, issues are been demanded at very higher price than valuations and there are no-listing-gains. Retail investors are in a fix. Couple of experts had a good quote for current situation - "sit on cash as of now", implies here very well.
After getting allotment in PCL and not able to exit, I think that I could had made money on buying from secondary market on listing day, at lower levels than issue price, and had been able to exit at 180+.
Shouldn''t one buy shares from secondary market on listing day of Teamlease or Quickheal, at lower price and exit same day on earnings. This could be better bet to earn in IPO rather than applying and watching prices going down below issue prices.
Quickheal demand details on bse seems in same pattern like PCL.. and during listing time may fall from issue price. Why not to sit on cash and watch the listing, and buy at lower and exit same day with little gains..
I agree Nital Chanchani, but what will you do if on listing day, the price keeps going down? Again we will be in trouble and make loss. We have to wait and watch until the prices stabilize or keep strict stop loss.
or just sit on cash. Bank interest will be green even if its low. Better than red.
Shivajee, on listing day, we can buy the shares below issue prices. you targets, little mathematics.. for example from PCL it was listed at 165.. would had buy at that level. Maybe it go down, and it does as always.. this is market. But same day it had shown 180+.. Thats the strategic point of trade.
So wait and watch, if IPO opens below issue price (ex. 10-15% lower) buy it, or else wait to come lower a little than issue price. Same day exit is advisable (seems good) in today''s markets scenario.
Loss will be lesser than issue price if you buy on listing day if IPO opens in red. But you will gain same day for sure, if you had targets for exiting same day with little profits. This seems good as of now. What you all say??
I think this year is not good for IPO also. If markets are bad, no IPO will be successful even if it is fundamentally strong, good PE, valuations etc.
I heard my friend saying in 2006 or 2007, one Powergrid government based company IPO was there and was successful.
After that, he got inspired and tried to put all the money he had in one rpower IPO. There were even TV ads as if it is going to enlighten all the Indians. It was a flop as there was market fall. During that, the IPO period has been dull as seen from the historical data of chittorgar. It was dull and mostly were in red. Only last year it picked up. Now again dark days are coming back.
The Institutions have lot of money, they will withstand losses. The rich HNI also can loose money, but the impact won''t affect them much. Brokers are always safe since if anyone buys or sells, or the market falls, they will get brokerage. They will give you all type of calls and if anything goes bad, they will say, ya, markets are like that only, and everybody has lost money, so don''t worry. Some brokers are now also shooting email saying sensex will go up to 50 k and 80 k. (may go, but after few centuries, by that time where I will be.....)
Its always retail people who will suffer. We cannot risk too much. We are just dust in the cyclone, we have to move in the direction of the wind. Its better to keep quiet. IPO was one safer avenue, but now, it looks gloomy also.
If there is a huge fall around 500 to 1000 points during listing of a good value company, due to china reason or japan reason or some other antartica or mars, we will be in trouble. This is my assumption only
Somebody like eagleeye sir, or rajeev sirthrow light on what will happen if disaster fall happens like 500 to 1000 points on heavily subscribed IPO. Is it independent of market mood, or will it list at a lesser price?