This may sound harsh but its a though provoking question which every investor should ponder.
The recent market buoyancy has triggered an IPO boom. Companies with good fundamentals are seeing huge oversubscription leaving investors with nil or low allotment. This is very annoying as there is a loss of opportunity to make profit in form of listing gains. Also investors would be disappointed by nil or low allotment as IPOs are an entry point for many new investors who begin their stock market journey. Companies with dull fundamentals or highly priced are ignored.
To address this situation, investing in stocks at a pre-IPO stage makes sense. The biggest benefit is getting the assured desired quantity. Also there is price benefit. This wealth creating tool was earlier available only to institutions, private equity investors and high networth investors.
But now its available for all. For more details and buying pre-IPO shares of all companies about to bring out IPO soon, please call on 08108234400 or email on email@example.com
The recent IPO of private sector RBL Bank which closed on 23 August was oversubscribed 69.62 times. The stock will list on 31 August 2016. The listing is likely to be around Rs 250-275 range. The stock has already become 5-bagger for investors who have invested in the bank at just Rs 50 around 3 years back in unlisted market. Since then it has gone up steadily based on improving fundamentals. There are many such stocks still available with multibagger potential in unlisted market.
Many fundamentally good companies will be floating their IPOs soon. Insurance is an age-old and proven business and with rising per capital incomes, there will be more need for insurance cover. Shares of life insurance companies ICICI Prudential Life Insurance and HDFC Standard Life Insurance are seeing high demand from investors. Shares of general insurance firm ICICI Lombard are also being highly traded.
It is not only insurance companies but a whole host of new segments will be entering the market soon. These include leading stock exchange Bombay Stock Exchange, a mutual fund UTI Asset Management Company, an e-commerce company MSTC and payments bank FINO Paytech. Also shares of mattresses maker Kurlon are seeing high investor fancy.
|Company||No of times||IPO||Listing|
|Dr Lal Pathlabs||33||550||717|
|S H Kelkar & Co||27||180||222|