Apologies for the overdose of IPO’s on this blog for sometime, but there are reasons for doing that,
- IPO Market is seeing a lot of action these days.I subscribed to a few too and intend to do so.So, i am keenly following the new IPO offerings and IPO updates as they happen.
- A lot of people seem to be landing on the blog from search engines, primarily searching for IPO related keywords.So, it sure seems to be helping someone
So, continuing with the IPO overdose, here is the latest from the IPO Warfield in Indian Stock Markets.
United Bank IPO subscribes 33 times
United Bank IPO had a very attractive price range of Rs 60-66.The bank has been reporting decent profits on a yearly basis and the IPO looked promising.
Investors seem to have echoed the same sentiments and the IPO has been oversubscribed by over 33 times.
Interesting to note here that United Bank IPO saw tremendous retail investor participation which has been absent for quite sometime.May be, since Banking Sector IPO’s are too far and few, retail investors jumped at the opportunity.
The IPO received total bids for over 164.59 crore shares against 5 crore shares on offer
Hathway Cables disappoints on listing, plunges 14%
I had earlier covered Hathway Cable IPO and had mentioned that i was a little skeptical about the IPO offering.There were too complications on the supply side and the pricing did not seem to indicate a profitable margin for investor.There were rebuttals mentioned in the comments but the markets seem to have taken my side for the time being.
After opening at a opening price of 250 (slightly higher than the lower range of 240) , Hathway Cable sharesalmost 14% during the day taking the share price down to Rs. 206.The shares finally closed at Rs.207.80 at around 13.4% down from its issue price.
In my opinion, the aggressive pricing seems to have backfired for Hathway Cable.Even with the short term issues with its channel partners, the company fundamentals and operation history was more than average.However, pricing the IPO at a high premium, the investors seemed to have taken their hands off it.
That’s there for now.As of now, my IPO investments in the fast few months have been on the positive side.A few i am still holding but i did exit early.
How do you think are the IPO markets shaping up? The investors have been rather selective with their pickings in the IPO space going for niche businesses and shying away from the so called seasoned public sector IPO’s.
PS:: If you have been reading this blog regularly, do comment if the IPO overdose is putting you off.