1. Avoid Greed …. read those god forsaken IPO forms well before taking decisions as all investments are subject to market risks. Lastly dont ever subscribe using borrowed funds or be ready to play the satta game and suffer the consequences.
2. Dont trust the rating agencies or the merchant bankers , they are there to give maximum listing gains to the promoters not to investors. Dont listen to Brokers / Sub brokers / Analysts who love to give free buy calls, they are interested parties too.
3. Be decisive while taking sell decisions. Dont invest in ipos using the online route it may be convenient but u cant do the stop payments.
4. Dont look at grey market premiums, its all a sham !
5. Dhirubhai is no more… dont take impuslive or emmotional decisions based on his name…
6. IPO markets in India are managed and the small investor is at the bottom of the information chain.
7. Regulators are not there to protect small investors …
8. Most Large institutional investors (QIBs) both local and especially foreign are in it for listing gains too and not for fundamentals, India is as most emerging markets a Speculative market and a hot money destination never mind what the FM says.
9. When the ADAG group says “A very large number of pivotals, including RIL, ONGC, NTPC, DLF, ICICI Bank, BHEL, L&T etc have actually all declined in a much larger range of 20-40 per cent in the same period (since the IPO opened on January 14).”
they conveniently forget that the grey mkt premium on on reliance power ipo on jan 14 was Rs 400 to 550 to the least, that brings me back to point no 4.