Stock Market Today With Anil Singhvi: Post-Happiest Minds IPO, Market Guru unveils strategy for upcoming offers
Stock Market Today With Anil Singhvi: After robust listing of the Happiest Minds IPO yesterday, people are looking at two more IPOs, CAMS IPO and Chemcon Speciality Chemicals IPO, coming up next week.
Stock Market Today With Anil Singhvi: After robust listing of the Happiest Minds IPO yesterday, people are looking at two more IPOs, CAMS IPO and Chemcon Speciality Chemicals IPO, coming up next week. So, it becomes evident to know how to choose an IPO that will give higher returns to its investors. Zee Business Managing Editor Anil Singhvi is of the opinion that smart promoters keep prices of the IPO at attractive level as Happiest Minds promoters did. The Market Guru said that a smart promoter keeps his IPO at attractive level by keeping it at around 20-25 per cent lower from its likely value to attract more and more retail investors.
Speaking on how a smart promoter launches initial public offer (IPO) in the market, Anil Singhvi said, "Success of an IPO depends upon its promoters. Market always rewards good promoters and a smart promoter is one who accepts the flow of money to the company with grace. Generally, an IPO needs support of retail investors and to attract retail investors, smart promoters keep their IPO at an attractive price, which means around 20-25 per cent lower from its likely market price. In that case, retail investors throng to the IPO, sensing they are already looking at 25 per cent gains after allotment."
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On smart promoters' strategy to remain strong after the IPO listing, Singhvi said, "Once the IPO is listed, the listed company needs fund house support and it has been found that majority of the fund houses invest in the company on the date of listing as the volume of the shares is highest on the date of listing. For fund houses, it doesn't matter whether the share is bought at 10 per cent above or 10 per lower from the listing price because they invest for three to five years."
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रिटेल निवेशक कैसे करें अच्छे IPO की पहचान?
— Zee Business (@ZeeBusiness) September 18, 2020
Lesson from Happiest Minds IPO listing
Asking IPO investors to take lesson from yesterday's happiest Minds IPO listing, the Market Guru said, "Yesterday, when the Happiest Minds IPO got bumper listing, most of the retail investors got their money doubled and a good number of retail investors booked-profit as well. But, a good number of fund houses have invested in it as well. So, Happiest Minds shares were able to sustain above its opening mark and in long-term its outlook looks secured if the fund flow continues."
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