Cheerful Time for IPO Investors
Initial Public Offer (IPO) has got good response in last six months; most of these were oversubscribed. Investing in any IPO has become convenient after India’s Stock market regulator SEBI introduce ASBA (Application Supported by Blocked Amount) system from 3rd December 2012 to invest in primary market. In ASBA, applicant’s account does not get debited until he/ she receive an allotment of shares.
Retail investors have got huge return on their IPO investments in last six months, with minimum investment amount. Currently India has computer literacy of 6.5% (approx) and around 89 million people are using internet and 18 million people are investing in equity market. All these data gives the understanding that if the success ratio of IPO does remain constant then primary market will attract more investors. Most of the financial websites have been providing necessary information on upcoming IPO’s. Dynamic Levels has also updated its users on regular basis and has been successful in providing important information with recommendation on the same.
Out of all sixteen, five shares have given a return of more than 50%. Ujjivan Finance being a top performer has given return of 90.36% in just two months. However out of sixteen IPO’s five are trading in the negative zone.
Investment in IPO would be a better option for new comer who does not have knowledge of stock market. However they need to do their research prior to investment and instead of jumping to secondary market may first try their luck in primary market, which is comparatively less risky. An investor only needs to have a bank account and a DP (Depository participant account) in their name and they can start investing in primary market. If any person would have invested in all of these sixteen IPO’s with minimum investment of Rs. 14000, they might have made a profit of Rs. 56560.75.
