A strong equity market performance is generally followed by a flurry of initial public offerings (IPOs). Euphoria grips the Street and IPOs – whether reasonably priced or not— get through with ease. Conversely, primary market frenzy is often seen as harbinger of market peaking. This trend is playing on Dalal Street these days. But retail investors who ignore valuations of IPO in this euphoria often end up getting the wrong end of the stick. Analyst warn that investor who wish to hold new papers on quality parameters should pay heed to valuations. “Many a times, companies with very high pricing also attract good subscriptions. Remember the Reliance PowerBSE -1.35 % issue in 2008? It did very well, but we all know what happened next. One should always look at valuations before putting money in an IPO. If you find an IPO more than fairly priced or aggressively priced, ignore it and look for opportunities in the secondary market instead. Some of the recent IPOs such as...
Stallion Asset is an SEBI Registered (INH000002582) Independent Equity Advisory Company backed by experts who have huge experience in wealth creation in the Indian Stock Market. We are a Specialist in buying high quality midcap companies that are often ignored by the analyst community. Visit: http://www.stallionasset.com/ Call: 916 7090 883 , 02240033944