The current IPO season has been bad, as most private ipos are underwater. Most pvt cos have been very greedy and rightly so as the whole issue process is well and truly fixed to benefit the promoters .
The Govt IPOs are no better, 1. because they have been aggressively priced, 2. because neither merchant bankers nor the big govt fis have been supporting them post listing and 3. because this minority divestment circus is mainly done to bail out a cash strapped govt, and dose not add any value to these cos.
The IPO both babus and small investors thought would turn the tide of losses has taken a turn for the worse and SJVN is now quoting below the retail investors Rs 24.70 cost thanks to the recent market fall.
There was little doubt that most investors were only interested in the flipping game but now that most ipos are quoting well below their issue price , people that were giving most IPOs a miss , will most likely not bother about even looking at them as an investment option.
Its time the Govt and the Merchant Banks rethink their strategy.