Posted at 10:23 AM , on September 22, 2016
The Rs.6057 crore IPO from ICICI Pru has been oversubscribed by over 10 times. The institutional and the HNI portion were oversubscribed 11.8 times and 28.5 times respectively. The retail portion was just about subscribed but that was to be expected considering the size of the issue. But then, ICICI Pru Life is not just another issue. It is important because it is the first major IPO by an Indian insurance JV and will set the benchmark and a precedent for future issues. More importantly, this issue will be one of those veritable bets on the expanding Indian middle-class. So what exactly are the factors that make the ICICI Pru Life so uniquely special in the Indian context? Continue reading
Posted at 4:57 PM , on August 21, 2015
A successful self trader – Rule # 21
You must be aware that certain stocks have turned up incredible performances over the years. Had you invested in the Infosys IPO, appreciation would have been 85 times in 6 years. TTK Prestige had moved from Rs.105 in 2007 to Rs.4500 in 2012. A relatively low profile Bharti listed and went down to Rs.18 in 2002. By 2006, it was quoting at a whopping Rs.900. How do you identify a multi-bagger? Continue reading
Posted at 12:35 PM , on March 23, 2015
Then you can take equity participation to the people…
We all hear this rant about how Indian investors are hardly exposed to equities. Apart from the issue of risk and opacity of markets, the biggest issue is entry barriers. The number of documents, asset details, PMLA details and the number of signatures required are so elaborate that it puts off most retail investors. It is in this context that the proposed “SARAL” account opening form becomes relevant.
SARAL will not really be simple…
I would have typically expected the SARAL to be an over-the-counter form which permits small investors to participate in IPOs, equity SIPs and small investments in equity markets. But what SARAL actually does is that it just simplifies the length of the form and the requirements with respect to the proof of address. Most other requirements in terms of documentations, agreements, PMLA requirements continue as before. This may largely defeat the purpose. Here is a simpler and more effective way to do the whole simplification. Continue reading
Posted at 12:29 PM , on March 23, 2015
How about stopping the export of risk capital?
On February 27, an innocuous meeting of SEBI with technology start-ups could actually grow into something really significant. According to preliminary estimates, Indian start-ups like Flipkart, Snapdeal etc have been raising venture funds but avoiding the IPO route. Similarly, veteran players like rediff.com and makemytrip.com are listed abroad, but not in India. That is exactly the problem that SEBI is now planning to overcome when it meets on March 27. Continue reading