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Just curious, The retail subscription is only 1.68 times...but of the total allotment i got only 20% of what I had bid for...I can understand if the share has been oversubscribed 5 times but that is not the case here. Can someone please share light on why the Retail investor gets the short stick even if retail subscription is less than 2 times :(.
NOTE : I still hold on to the view that IPO in Indian markets are a swindlers paradise. A good IPO like this come few and far between and it is sad to see the Retail investor get the short shrift there as well...
old allotment system as per oversubscription in retail portion is no more effective now.
as per new SEBI rules now number of applicants are basis for allotment in retail . suppose 1 lac applications are made in retail, either in 1lot orupto full lot, all will be allotted 1 lot and then left over will be given to applicats of 2 lot and above proportionately as per applications received in that portion.
now retail investor should apply for 1 lot only for better chances on minimum amount blocked
So essentially that just means that as a Retail Investor in IPO, you get scr@wed both ways. If a stock is bad, you get full allotment and lose your shirt/trousers and more when listed. If the stock is even half good, you get peanuts or nothing for parking your money on the stocks. Wow...God bless the Retail Investors!!!
At this rate, SEBI can just debar Retail investors from IPO so that the small fishes dont become easy meal for the Institutional sharks. But then who is going to feed the sharks and hence SEBI will continue to look the other way. This was my first IPO subscription in 2 years and it will be the last IPO I suppose.
Cheaters all cheaters...What is the basis for this overpricing. Stocks of Excellent frontline branded companies with consistent growth record like Finolex Cables are already available in the market at better/par prices. How do these cheats expect me to buy a new stock for the same price? Retail investors - Please stay away