No ! we are not talking about cricket here. IPO season is back (Did we say IPL ?). Suddenly there seems to be a lot of activity around the IPO markets, apart from the QIP issues. After the Mahindra Holidays expensive issue and its not-so-successful listing, many companies have lined up the queue to launch their issues. Prominent among them are Adani Power, JP Power Ventures, National Hydroelectric Power Compnay - NHPC and Oil India.
According to SEBI data, 18 more companies have lined up and finalized their plans to raise more than 6000 crores in the next 2 to 3 months. Not many of them are even worth looking at. Even Adani power needs a re-look, recently it had its Pre-IPO placement done at Rs.47 (last year) and the issue to the public is likely to be priced between Rs.100-110. Looking at such issues, I think we were right in using the word IPL - Initial Public Looting.
We can hope at least the PSU IPOs are reasonably priced. Companies make hay while the sun shines ! And Investors ?
As always, the retail investors are always made fools.
Yes u r right Rajesh Sir, IPOs come when things are looking up to raise market from investors. Pricing IPOs is the issue which needs to be looked in by SEBI, so that there is at least a reasonable return of a minmimu of 10% for the investor on listing in the secondary market.
yea,I agree.Some of the modest companies are often over priced during issue to the public.