Hi ,
Off late i have seen a lot of queries on issues relating spotting good IPOs .....but what process has to be followed and what kind of homework is required is the essence of this thread.
First up, please go through the word file which is an unedited version of the article i authored for times of india and also the supporting excel sheet.
Also please go through the offer document for the risk factors , pricing of the issue and promoters history which i have emphasized in the article .
Iam a brokers right now and i know how DLF issue was promoted ahead of vishal retail (which proved to be a great issue interms of listing gains) . Hence investors should do their own research instead of relying on their brokers advice who recommend on the basis of the commission they get rather than the merit of the issue.
Also note that listing gains for IPOs can be easily predetermined as its mainly a function of valuations of the issuing company vis a vis its competition.Lower the issuing company valuation higher will be the listing gain .Other factors like issue size ( particularly for getting allotments) , grey market price ( visit www.smartinvestment.in) and the investment made( invest close to 1,00,000 to maximise your chances of getting allotment under retail portion) decide the likely listing gains.
IPOs are a fantastic way of making money as the effort to reward ratio is extremely high due to two main factors i.e. every month you get maximum 9 or 10 issues compare this with the effort required to spot a winner among thousands of stocks trading in the market . Also unlike stocks already listed in the market where both fundamentals and technicals play a role , the listing gains on IPOs are purely based on the fundamentals .
Post your queries on IPOs here and i will try my best to answer them.
Regards,
Rajaram.D
pls note :I have assumed that investors only look for listing gains and dont consider IPOs for long term investment.
Also the BRLM excel sheet contains data of issues between 2006 feb - 07 april
Off late i have seen a lot of queries on issues relating spotting good IPOs .....but what process has to be followed and what kind of homework is required is the essence of this thread.
First up, please go through the word file which is an unedited version of the article i authored for times of india and also the supporting excel sheet.
Also please go through the offer document for the risk factors , pricing of the issue and promoters history which i have emphasized in the article .
Iam a brokers right now and i know how DLF issue was promoted ahead of vishal retail (which proved to be a great issue interms of listing gains) . Hence investors should do their own research instead of relying on their brokers advice who recommend on the basis of the commission they get rather than the merit of the issue.
Also note that listing gains for IPOs can be easily predetermined as its mainly a function of valuations of the issuing company vis a vis its competition.Lower the issuing company valuation higher will be the listing gain .Other factors like issue size ( particularly for getting allotments) , grey market price ( visit www.smartinvestment.in) and the investment made( invest close to 1,00,000 to maximise your chances of getting allotment under retail portion) decide the likely listing gains.
IPOs are a fantastic way of making money as the effort to reward ratio is extremely high due to two main factors i.e. every month you get maximum 9 or 10 issues compare this with the effort required to spot a winner among thousands of stocks trading in the market . Also unlike stocks already listed in the market where both fundamentals and technicals play a role , the listing gains on IPOs are purely based on the fundamentals .
Post your queries on IPOs here and i will try my best to answer them.
Regards,
Rajaram.D
pls note :I have assumed that investors only look for listing gains and dont consider IPOs for long term investment.
Also the BRLM excel sheet contains data of issues between 2006 feb - 07 april
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