If u consider stats the best thing to do is to flip an IPO because that will be the only way you make money 2 out of 3 times u invest.
Business Standard has this great article on the underwriting business of the Ibanks and how their issues/ IPOs have fared.
|TOP 10 UNDERWRITERS
(For IPOs since Jan 2007)
|Kotak Mahindra Cap||15||31||30||16||46|
|SBI Capital Markets||7||17||16||8||24|
|(Figures in numbers) Source: Bloomberg Compiled by BS Research Bureau|
An investment banker said on the condition of anonymity that “it is difficult to say who takes the pricing call — the company or i-banker as several PSUs are influenced by the broader market and many have not done well. PSUs are supposed to leave something on the table for retail investors.”… BS
Points to ponder
1. PSU shares are no more safe bets cause most PSU Issues are under water.
2. IPOs are managed (especially small issues) and operators exit soon after the issue lists, landing hapless small investors with losses.
3. High IPO Rating does not meen the issue is good. The price at which the good company is selling share is the determining factor.
So Caveat Emptor