raj_pisces4u said:
I agree with you that one can invest in secondary market and get gains considering the one month lock in period of the investment in ipo. But the current market provides very less opportunities that can provide you with the same gains as ipos can provide. BEYOND GREED AND FEAR
Hi raj
I applied for following IPOs
script -- applied for-- allotted qty-- rate -- listing rate -- gains
ginni -- 4500 -- 718 -- 22 -- 22.90 -- .90*718=646
celebrity-- 525 -- 46 -- 180 -- 228 -- 48*46=2208
bartronic --1275 -- 0000 -- 75 -- 118 -- 43*0=0
I got refund order from Bartronic and is awaiting credit to my account
Yet to receive refund order for other two. Money was not credited to my account directly though application was online. Total appreciation on about Rs. 3.0 lakh is about Rs. 2854 which is less than one percent appreciation.
I spent 60 rs. per share (500) for Gruh and in 3-4 months i got 70% appreciation.
Some of the stocks in ipo are now quoting lower than issue price.Price fixed for ipo issue is based on upswing in the market. Discovery takes place only later. Even though one can get decent price in the weeks following listing.
Ipo for retail investor is a fools paradise. Earlier I had similar experience with TCS though money was given through ECS.
If one believes insoundness of script he can invest after ipo dust settles. One can get decent valuation and avoid all hassles. in ipos allotments are neither certain nor adequate. The cost of floating ipo is recovered by the company and registrar/bankers due to oversubscriptions and retail investors loose. institutional investors do not give the full price only 50% at present with prorata allotment ( earlier it was nill with preferential allotment). So they have no reason to worry if less allotment is made as nothing is lost.
in any given situation some stocks will always go up and some will go down, thats how people make money while others loose it. Secondly, if a fundamental stock has gone down it will go up some day. You have to do research and invest with stop loss. One thing I have learnt is that one should not fall in love with either company or with profit. if your target of price and time frame of holding is reached book prifit. Too early or too late and you get too little . Too slow or too fast you loose. Lastly, for any trade or invet one should have stop loss depending on risk profile and market conditions.
AS FOR ME NO IPO is NEW YEAR RESOLUTION.
Appreciate your comments
regards
pankaj
