There are quite a few IPO which are now available for subscription in the next one week and they are
a. Eris Life scriences, which is open since 16th and closes on 20th
b. CDSL, which is a depository and subsidiary of BSE opens for subscription ON Monday and closes on 21st.
c. GTPL Hathway Limited is also open in the coming week from 21st to 23rd.
In addition to the above, we have other IPO which are likely to hit the market like
SBI life Insurance
HDFC Life insurance as the Max merger has not gone through
the details of PSU sale are given in the link for you to have a look. There will be also offer for sale of shares in select companies.
Should you Invest in IPO?
A Common question in every one’s mind is, Is it good to invest in IPO?
Is it the right time?
As you all know, the markets are at an all time high with the sensex over 31 k and enough liquidity is there in the market and currently there is no sight of the market coming down drastically or correcting itself. One is thinking twice to invest in the current market. IPOs provide an opportunity for you to invest.
How the IPOs which came earlier have fared?
Look at the image below and see the performance of the various IPO which came about since April 16 and most of them have given decent returns.
How much you need to invest?
Most of the IPOs require anywhere between 14k to 15k per lot and you can investment more in multiples of the minimum lot size.
Who should invest?
Both short term investors and Long term investors can consider investing. Short term investors can look to take listing gains.
Where as long term investors can choose the IPO on fundamental strength and invest.
What happens if the listing price is lower than the IPO price?
It is possible you need to hold and should have the ability to hold. Take IPO like ICICI pru life insurance from the listing price of 335 it went down to 261 and it has bounced back 70% from there and trading around 440
Same is the case with VArun beverages.
Do not borrow money and invest in IPO. You should invest only with your surplus money. Otherwise, on a downturn, you can lose heavily and interest cost on the borrowed amount can be higher.
In case you need any further details do contact me.