ETMarkets Investors' Guide: Should you too chase a quick buck in IPOs?


The IPO market is all abuzz these days. Amid the spike in bond yields and inflation fears, IPOs are receiving overwhelming response and are minting money for investors on market debut. Be it Friday’s 44 per cent listing gain for Heranba Industries, 16 per cent rise for RailTel or Nureca’s 59 per cent rally, latest issues have helped to keep IPO investors’ sentiment upbeat.

That said, IPOs too come with risks. In fact, the risk is much higher there than their listed peers, which have ample trading and financial history.

Our Principal Correspondent Amit Mudgill recently caught up with Pranav Haldea, MD at PRIME Database, to try and decipher the trends in latest IPO offerings. Haldea, who has his finger on the pulse of the primary market, talked about P/E exits, the euphoria among investors and the risks they face. Besides he also shared a piece of advice for investors chasing listing gains. That’s our offering in this week’s Special Podcast.

Welcome to the show Mr Haldea

Most IPOs of 2021 so far have received strong investor response. How do you read that trend?

Do you think the IPO pipeline will stay strong given the ongoing momentum in the secondary market?

How many mainboard IPOs do you expect in March and in FY22, given the approvals we have so far?

Investors love IPOs from new industries. What should they look at before investing in a company that has no listed peer?

Are promoters and PE investors cashing in on the market rally or do we have genuine cases where money is being raised for business expansion?

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What would be your advice to retail investors who are chasing listing gains?

Thank you, Mr Haldea.

That’s it in this week’s edition of the special weekend podcast. Do come back next Saturday for this weekly special. You can meanwhile check out our regular podcasts on the equity market twice every weekday. Our podcasts are also available on Spotify and Gaana platforms.





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