Learning #1: Never invest in an IPO just b’coz it is an IPO without understanding the fundamentals of the company/industry. Belief in fundamentals adds in an ounce of patience in our emotion. Otherwise we tend to panic and sell of the stock at a lower price than the offer price. Understanding the fundamentals thoroughly before we invest in an IPO makes us to wait with patience and confidence, even if the listing price is lesser than the offer price…
So, guyz (investors) out there… watch out before you invest in an IPO. I have paid my price for not heeding to the words of the experts and for getting carried away with my emotions and sentiments... would you want to be a prudent investor? The choice is yours…
Dopes with Stats:
Puravankara – offer price – Rs. 400 and current price is around Rs. 365
KPR mills – offer price – Rs. 225 and current price is around Rs. 170
The eternal quest for knowledge lies in these – Why, Where, When, What, Whom, How….
As always, Comments and Criticisms are most welcome. Will come back with more thoughts/learnings as thoughts converge (or) when time permits…J
Thanks,
Kiru.
2 comments:
In 2007,out of 171 ipo's listed 78 gave positive returns.It's all about,your choice.FYI,I invested in indian bank IPO,the offer price is 91 and current price is 194 ,it may go around 220.(in less than a year)
Good stats...It's all about numbers coupled with intuitions and how best we could predict the market centiments ...
Agreed, but then, In future I would not want to invest in an IPO of a textile company even if the offer price is attractive and tempting..B'coz the sector itslef is going through a tough time. So, I can only blame myself for the wrong choice of invetsing in KPR mills IPO when there were so many other better options available to me in the secondary market...Thatz exactly the intent of that post..I started off with a simple and bad principle of "I will invest only in IPOs" ..without any clauses attached to it and that was the blunder...
Even I started off my invetsments with primary markets i mean IPOs. But then very quickly I realised that most of the good IPOs gets oversubscribed to such an extent that we don't get even a single lot even after we invest the maximum of 1 lac.
So, these days I don't apply for any IPO on the first day. Rather i wait till the last day to see the no of times it gets oversubscribed . There is no point in locking up the money for a months time in an IPO only to realise later that no shares have been alloted. thats miserable...Whatever said and done anyday IPO is a safe game.
But then these days secondary market gives better kick than IPOs (probably I am growing older) :-). I am sure that in a few months time i might be more inclined to day trading... who knows?
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