Tuesday, April 18, 2006

Why IPOs must not be rated

We have enough problems with the way stocks in general and IPOs in particular are seen and devoured by retail investors. Almost like fast moving consumer goods, IPOs have over the past two years been consumed at the speed of thought — a company only has to announce its IPO plan and it dreams of 100 per cent plus returns for Rs 1 lakh minus investors. The money pours in, the issue gets oversubscribed, and while listing gains have narrowed down and in some cases even fallen, the trend so far has been positive in a market that raised Rs 10,808 crore (45 per cent of all the money raised in the primary market) last year.

Opinion in The Indian Express, April 18, 2006

No comments: