All recent IPOs are very highly priced and I see that all the experts have an Avoid rating on all of them and CRISIL ratings are also not very impressive. So do you think Age of IPO investing is over?
Ashwin Jani, reader of the blog asked me
What are your suggestions and guidance for recent IPOs.
Aqua Logistics Limited
Vascon Engineers Limited
D B Realty Limited
Syncom Health-care Limited
Thangamayil Jewelery LimitedThanks
Ashwin
And without going into the details of each of them I replied
In general all of them are highly priced.
And this was not done after any research but a simple reply.
I did reply very fast but how did I knew that. I just Googled about each of them and saw the title of what other experts have suggested.
I see that all the experts have an Avoid rating on all of them and CRISIL ratings are also not very impressive for majority of them.
So do you think Age of IPO investing is over?
hey is it legal to invest in IPO through different application of family members. any risk and how to asses good IPO
Kuldeep it is perfectly legal
Hi Shabbir,
What is your take on UBI IPO.
Pass or to an extent possible less investment. Probably one or two lots max
IPO’s need not be analyzed. They are all either overpriced or fully priced, this is exactly why Investment Banks are hired to float the IPO’s. These Investment Banks are paid to get the most out of IPO’s for their clients. What is the point in buying something that is already overpriced or fully priced?
Now the question that comes up is how one could explain the huge listing gains that the Indian Markets have been seeing. Answer is simple, operators cornering huge amounts of shares upon listing resulting in a pump and dump model. Case in point is the recent Thinksoft Global Services IPO. Thinksoft may e a good company in itself, but investing in IPO’s of such companies does not make sense to me. Look into the secondary market, you will find more oppurtunities.
Thanks for the fast reply and guidance.
The pleasure is all mine Hitesh.
Hi Shabbir,
After goung through your tax savings mutual fund article,
I selected Birla Sun Life 96 (Dividend) scheme.
When I visisted the office if Birla to get more enquiry, they gave me option to either invest in Birla Sun Life 96 or Birla sun Life Century Sip – Tax relief 96 .
The only diffrence they told me is that they r offering free insurance cover and rest all points remain the same.
Can u guide me whether Century SIP and and the former one is one and the same or not?
Hitesh, Thats a sales pitch. Insurance cover means you pay the insurance fees which goes without saying. Don’t change the plan when they suggest.
They will always push for insurance and see why here – http://shabbir.in/better-way-to-save-tax/
Hi Shabbir,
What is your take on Hathway Cables ?? should one apply for it.
Subal, The IPO looks ok but its a bit highly priced but when it comes to figures and growth looks ok.
http://www.livemint.com/2010/02/10221623/Hathway-Cable8217s-profitab.html
I will not be making a detail post on this.