A week of IPO Listing !

IPO's showers money on investors, Mundra listing on 27th November

We saw a lot of IPO's listing this week and few more are coming to rock the markets. Before that let me give you an update that the Intime spectrum site is working and you can check allotment status for Mundra Port IPO. As far as IPO refund for Mundra port is concerned, you can expect them in your bank accounts by 27th November as per information posted by the Registrar. Mundra is listing on the bourses on 27th November and is expected to have a grand listing in the coming week. The stock may list around Rs. 1,000 levels on Tuesday.

The most rewarding IPO was the least talked about. Allied computers which listed on BSE rewarded investors with a return of 217 %. This was followed by religare which rewarded investors with 182 % return. Out of the 5 IPO's that listed this week, only one Rathi Bars disappointed the investors and generated a negative return of 9%. And all this when Sensex posted a fall of 840 odd points !

One thing is clear, the IPO euphoria is here to stay and is going to reward the investors well. Reason ? Liquidity and the ongoing feel good factor ! Investors across the spectrum have shown interest in investing through the IPO route and most of issues are getting hugely oversubscribed. This results in poor allotments and then the rush to acquire the stocks on the listing day. However, there has been a slight deviation from earlier listings. The stocks are able to maintain and in some cases even further strengthen their upmove post listing though amidst lot of volatility.

As far as valuations is concerned, there is no doubt that these stock do not deserve these valuation based on their fundamentals and the investors would do well to book profits at regular intervals in such stocks. An entry can be made at lower levels depending on the performance of the company.

Empee Distillers to list on Monday, 26th November

The IPO party is bound to continue in the coming week. Empee Distillers is listing on Monday. The issue was subbscribed nearly 7 times. The company has offered shares @ 400 per shares. At the offer price the issue was valued at a PE of 25 which is in line with valuation of its peers. The Grey market is puting a premium of Rs. 50 on the stock valuing it at Rs. 450 per share. Investors can expect the stock to listing in the range of 450-475. A price above 500 would be good fit for profit booking.

IPO's Open now

Jyothi Laboratories: Issue closes on 27th November

Burnpur Cement : Issue Closes on 3rd December


Anonymous said...

Hello Sir,
I have got 15 shares of Mudra Port and SEZ in the allotment. What is the target for the stock ? Should I hold it for long term as I have heard that the long term prospects are good. Your advice is highly valuable.