Shall IPOs be abolished ?

The IPO season is back in the Indian market; Yesterday Thyrocare got listed on Indian bourses with more than 50% IPOof premium. Ujjivan Financial Services will make the debut today, Parag milk foods owner of Go and Gowardhan brands of dairy products, is in the pipe line.

I have been always arguing the case Do IPO’s really make money for the investors?  Yes/No

There is a proactive paper published in 2012 arguing that Initial Public Offerings (IPOs) must simply be abolished by Adam Pritchard (“Revisiting ‘Truth in securities revisited’: Abolishing IPOs and harnessing markets in the public good”). He suggests that Continue reading “Shall IPOs be abolished ?”

The Initial Public Offerings back in Indian market

It was almost a slag of 3 years the Initial public Offerings (IPO) was out of fashion in the Indian markets. Now they are back, so are blogthe bulls back on Indian bourses? Yes they are. How long they will last? I don’t know.

The Wonderla IPO was subscribed over 38 times on the final day of bidding, next in line: L&T Technology Services and L&T Infotech, Bharat Business Channel, Hindustan Aeronautics Ltd, Tarini International, Manpasand Beverages, Adlabs Entertainment, Quick Heal to name some.

Have done series of posts the IPOs as they are controversial in nature.  The paper by Pitchard “Initial Public Offerings (IPOs) must simply be abolished” is worth a read.

Well IPOs are always overpriced? Continue reading “The Initial Public Offerings back in Indian market”


Many of you have Burnt your fingers in the recent IPOs, financial expert came out with their own school of thoughts that the IPO was overpriced, company fundamentals were not sound, the management was weak and so on. Most of us did not take a pain to read a big, fat offer document which can be overwhelming, but we can have a birds eye view by focusing on some essential sections:-

1) RISK FACTORS: – 1st section in the offer document, In this section we must focus on the those risk that are specific to a company such as client concentration, legal disputes, heavy indebtedness, Continue reading “IPO’s WHAT TO READ IN AN OFFER DOCUMENT ??”