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IPOs are worst way to participate in Equities (2 Minutes)

IPOs are worst way to participate in Equities (2 Minutes)

Can we learn an important investment lesson in less than 2 Minutes? YES – check this…

We have always maintained that IPOs are the worst way to participate in equity markets. Ex Sebi head Mr Bhave accepted “In a bid to maximize return of promoters, investment bankers are not looking at the interests of investors. “

Why say NO to IPOs? 5 Reasons

  • Owner is not interested whether you are getting his shares at right/reasonable price – he is interested in maximizing his profit.
  • IPOs will arrive in bull market – most of them close to its peak.
  • Most of the IPOs are of companies from hottest sectors of last few years.
  • Most of the investors participate to make quick money – this is recipe to failure.
  • We have proof – check below chart…

BSE IPO Index Vs BSE Sensex & BSE 500

BSE IPO index Vs Sensex

If you still think otherwise – check this detailed report on IPO performance…



What’s your experience with IPO investing?

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  • Anil Kumar Kapila April 23, 2015, 4:51 pm

    I invested only once in IPO about 20 years back.Now no more IPOs for me.

  • himal April 25, 2015, 10:53 am

    Cannot conclude on certain sample size
    Recent IPOs have been a mixed bag
    Inox Wind and REC have given good returns
    It is pricing and subsequent secondary market sentiment which determines

    • Vikas Agarwal April 28, 2015, 11:12 am

      Dear Himal,

      You rightly said “Cannot conclude on certain sample size” – that’s the reason we are not talking about IPOs where investor lost 95% of their money or tripled their money. We are talking about IPO market. Plus I am not talking about one 2 months but atleast 3-5 years as time horizon.

  • Praneeth Mendu November 2, 2015, 2:07 pm

    Is there a site where I generate such graphs for myself i.e. compare indices and stocks etc. ?