The IPO game

Rajesh Naidu, Rahul Jain
Posted: Sunday, Aug 12, 2007 at 0000 hrs IST
Updated: Sunday, Aug 12, 2007 at 0030 hrs IST

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NHPC deposits IPO proceeds at card rates Lavasa plans to raise Rs 2k cr via IPO Oil India issue price fixed at Rs 1,050/share New payment system for IPOs by Aug 10: Bhave

: due diligence of the issue has been done by a trusted agency. Reputed merchant bankers are careful of not having their reputation tarnished and will go the extra mile to ensure credibility, adds the merchant banker.

Then there are the other participants playing the game with you. Sound projects will always have participation from banks and other global financial institutions. “The presence of private equity funds is also encouraging,” says Singh. Private equity funds not only invest in companies, but also have a strategic stake that enables them to guide the management. This is a definite plus, she says.

Lesson 5: Keep pegging at it

As markers get volatile, there would be times when there are blips in pricing. A company getting listed in a sell-off time might not see it getting the correct price. Long-term investors need not panic. It just pays to be pegging away at the game that you are playing.

Prospects in abundance

The favourite lore of IPO enthusiasts is that the Infosys stock approached the market in 1993 and was listed at around Rs 93. There were not many takers for this issue. As clichéd, the rest as we know is history.

For the investing community, there will be many such chances. There are several attractive opportunities from the power and infrastructure companies that will be coming your way. Also in line will be several banks that would want to expand their capital base to meet regulatory requirements. The best in the IPO market, as they say, is yet to come....

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