10 Jul 07 DLF bags Bangalore township project?
There are rumours in the market that DLF has bagged a 9000 acre township project in Bangalore. If the rumour turns out to be true, then investors who held the DLF shares alloted in the IPO, till date or bought it after listing, would benefit from the rise in DLF stock prices as and when the announcement is made public by DLF through the stock exchanges. I missed the DLF IPO fearing the IPO was overpriced. But, even though the listing premium of DLF was low, the overall returns offered by the DLF IPO works out to be much higher than many other IPO’s which enjoyed higher listing gains, since in the case of DLF, full allotment was made whereas in the case of other IPO’s the allotment made was very low (due to heavy oversubscription)
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Hi Bullish Indian,
Going by what I went thru after applying in the DLF IPO and the anxious wait for its listing, I found your post amusing, I guess DLF IPO was something like ’shaadi ka ladoo’
Generally speaking IPOs have just become a lottery game with no use of ‘real research’.
In my portfolio I have started tracking investments in IPOs separately, so that I don’t give myself any undeserved credit for profits made thru this route.
Happy investing
Cheers
Abhinav
Abhinav,
did you apply for IPO of following
fortis / Insecticides India / Akruti nirman / house of pearl fashions / Transwarranty finance / SMS pharma / C & C Construction / Oriental trimex / Mudra lifestyle / Raj television (though this one bounced 2 months after listing)/ Abhishek mills ltd / Binani cement / Decolight ceramics.
Real research cannot be compared to “gambling”.
Wish you luck in your endeavor of enhanced gains from IPO investing!
Vishal,
No I didn’t apply in any of those IPOs
Agreed, Real research can not be compared to “Gambling” but the way 90% of the IPOs are behaving is this from the retail investor point of view:
1. wait till the second last day of the IPO closing and see the level of oversubscription in retail category
2.If the level of oversubscription is likely to be > 10 times or so, apply with max possible money.
3. wait for the lottery and a allocation of shares which is a fraction of original application.
4. Book some 5-15 thousand rupee as profit on each 1 lakh rupee application.
Where is the research on the companies? Retail investor only looks at the level of oversubscription and applies on that basis.
Cheers
Abhinav,
…
True my friend …I agree with you…
depends on what you are banking on “Market sentiment” or “fundamental value”…you will make money on IPOs in extremely bullish trends (like currently), fundamentals give you returns all the time…
Not trying to discourage you in any way from IPO mania, infact I am also part of the IPO mania bandwagon…but I would still count it as hard earned return coz in case of a crash (which is certainly possible at any point of time)allotments in IPO with strong fundamental wont strip my shirt which would happen if markets crash between application and listing