In the current calendar year, small and medium enterprises (SMEs) have witnessed an impressive surge in initial public offerings (IPOs), surpassing the 2018 record. Over 150 SME IPOs have been introduced to the market, breaking the previous record of 141 set in 2018. According to data from PRIME Database, a primary market tracking firm, 147 companies successfully concluded their debut share sales by the end of October, raising a cumulative Rs 3,727 crore.
It is pouring heavily not only in North India, but at Dalal Street too. However, the latter is seeing a flurry of initial public offers (IPOs). After a busy fortnight that ended on July 7 with seven IPOs - IdeaForge Technology, Cyient DLM, PKH Ventures, Pentagon Rubber, Global Pet Industries, Tridhya Tech, and Synoptics Technologies -- four more IPOs will hit the Street this week, including one mainboard IPO of Utkarsh Small Finance Bank. That apart, India's largest securities' depository National Securities Depository Limited (NSDL) has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) for an IPO.
New-age tech tools and 'mystery shoppers' are helping the country's top bourse stay ahead of the curve against dabba trading platforms and entities dolling out unsolicited investment tips. In the past one month, the National Stock Exchange (NSE) has issued close to two dozen warnings and advisories against such activities. "We saw a rise of dabba trading or illegal trading platforms after the pandemic.
'Whenever markets rally, the IPO pricing gets aligned to the prevailing market conditions.'
Arun Kejriwal, founder, Kejriwal Research and Investment Services, tells Krishna Merchant that with the second round of quantitative easing on, the US economy is likely to receive higher allocation of funds.
"The market will most probably open in negative territory but national fervour could help it in closing better," said Arun Kejriwal, director, Kejriwal Research and Investment Services. Global research firm Moody's Economy.com said, "Although the terrorist attacks are expected to affect market sentiment, local investors in Mumbai are well acquainted with terrorism and unlikely to engage in panic selling."
The foreign inflows to the country will remain unchanged as the cut in the interest rates by US Federal Reserve is too minimal to affect the global investment scenario, analysts say.The US market went up after the rate cut was announced and some of the Asia markets also gained. Indian markets too opened higher on Thursday but Sensex plunged about 200 points due to profit booking, Kejriwal added.
This trend shows that global cues had a very influential effect on our markets. "We should be growing on our own strength," Kejriwal cautioned, adding the "subprime issue was not resolved, not sorted out, it has just been postponed".
When you buy a stock, especially a mid- and small-cap one, have a price target. Once you hit the target, exit the stock, advises Joydeep Ghosh.
Though stocks backed by private equity investirs are likely to have higher governance standards, investors should do their own due-diligence, experts tell Sanjay Kumar Singh
'If an investor wants to clone an ace investor's portfolio, s/he will be better off cloning the entire portfolio rather than cherry picking stocks selectively.'
Avoid fresh investments, as there might be more opportunities in the coming months, market experts tell Joydeep Ghosh
Wait for a few days before deciding to buy shares or MF schemes.
Financial planners also believe that retail investors should avoid the IPOs or direct stock route because it is too risky for them.
Operators in this unofficial market are offering an upfront sum of anywhere between Rs 5,300 and Rs 6,000 to retail investors, who will get shares in the offer at a 5 per cent discount to the issue price.
The company was looking to raise around Rs 1,800 crore for a stake sale of 10 per cent.
High retail concentration in small companies; many left to fend for themselves in penny stocks
Sebi's suggestions are good but investors should not become overconfident.
The company has a market capitalisation of $743 billion.
Direct investors should stagger their investments over 1-2 months.
There cannot be value in every stock, whether large cap or otherwise. Thus buying a stock cheap does not always translate into value buying
For retail investors who are into direct stocks, buying one when it enters the index can be a good strategy.
Retail investors usually get caught up in the frenzy of a bull market and burn their fingers in IPOs, warns Tinesh Bhasin.
Unless unique, avoid investing in IPOs.
Laggards yet, a number of smaller PSBs in the category have balance sheets which do not give much comfort.
Laggards yet, a number of smaller PSBs in the category have balance sheets which do not give much comfort.
In good times, analysts justify valuations giving interesting investment rationale.
It could be a tough week In the run-up to such an event, the market is always nervous.
Before participating, consider company's long-term prospects, premium offered and acceptance ratio.
Tendering the shares in an open offer will lead to higher taxation.
For a while, it seemed the markets were going on a free fall.
Uncertainty lingers in the minds of retail investors due to scams.
The 91.9 per cent slide in the stock price of Gitanjali Gems since April has depleted the value of promoter Mehul Choksi's holding in the company by at least Rs 17 crore (Rs 170 million) a day on an average.
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