I think its better to invest in A group stocks from secondary market compare to IPO Market ....If we look at last 15 year IPOs ...almost 75% are quoting well below IPO price ....Nutek IPO price 96 , right now its at 0.85 ....several other examples where we are not even getting 1000/- against our investment of 1 lacs ....IPOs apply only if its Branded and good Management otherwise avoid it ....
Sharda Crop does not have any manufacturing facilities of its own and sources products from third party vendors or manufacturers. In addition to this, it does not have any definitive long term contracts with vendors, and operates on a case-to-case basis. A peek at the balance sheet (consolidated) reveals that fixed assets of Rs. 198 crore, comprised of intangibles of Rs. 196 crore! i.e. company does not have a single plant or machinery or building of its own. Complete reliance on third party manufacturers does not bode well, besides being extremely challenging with respect to control and operations, given the vast geographic span. No other agro chemical company outsources 100% of its manufacturing function
Grey Market premium can be 50 Rs now but when it will list, the premium can go down to negative also. That is what I meant. My personal opinion is not to subscribe to this IPO as it might list below IPO price.
Avoid this issue. Review in SP Tulsian is correct. Do Not fall to grey market premiums. They can change any time. I believe IPO will list around 140 levels.
GUYS this sharda crpo chem is a trading company it is not having any manufacturing unit/ facility in india as well as abroad 70- 72 premium is a game plan by some grey market operators at 50- 52 rate there was seller in the counter now rate is 70-72 no body is selling this is the statragy of grey operators they bought around 15-20 lakh shares in grey market at 50 rs now people are covering there shorts at 72 rs but at the time of listing you will find the real value of this share below the issue price. so take care guys.
What’s the profitability rule for IPOs? A company with no three-year profitability record has to sell a large portion of the offering to institutional investors What’s the rationale? The objective is to limit small investor participation in IPOs of companies that aren’t profitable, as they don’t generate good returns When was it introduced? In 2011, Sebi investigations had found irregularities in several IPOs, which were filled only by retail participation. To prevent this, the regulator introduced this rule for IPOs in 2012 How do reservations change in IPOs that don’t meet the norm? Retail investor quota is 10 per cent, against 35 per cent for other IPOs QIB portion is 75 per cent, against 50 per cent How has the rule become a hurdle for retail investors? It has limited retail participation in some IPOs that fared well, such as those of Just Dial. Also, it might shut retail investors from e-commerce IPOs such as those of Just Dial or SnapDeal