Hyundai Motors IPO | ભરવો જોઈએ કે નહિ? | Ek Vaat Kau

Summary

The transcript discusses the performance of major IPOs in India, highlighting the largest IPOs like LIC and their listing day results. It notes significant losses experienced by investors on their first trading day, with historical comparisons emphasizing risks associated with IPO investments. The analysis reveals that many large IPOs have not provided favorable returns over time, raising concerns about demand and investor strategies. The expert commentary suggests caution for prospective investors, indicating that many shares offered are part of an offer for sale rather than new issues, limiting the capital inflow into the companies.

Takeaways

• 📈 India's largest IPO is generating significant attention, with a size of ₹2,787 crores.
• 🕛 Investors are advised to check allotment status by midnight to assess their shares for the listing day.
• 📉 Historical data shows that many large IPOs have opened below their listing prices, leading to investor losses.
• 🏦 The LIC IPO, valued at ₹20,000 crores, saw shares open at ₹949, dropping significantly on listing day.
• 📊 Paytm's IPO was another major loss for investors, opening at ₹1,950 and closing much lower at ₹1,271.
• 🌍 Coal India and other past IPOs experienced notable increases over the years, despite initial listing day losses.
• 💸 The Power Grid IPO, with a size of ₹11,560 crores, opened at a low price but later saw increased investor interest.
• 🚫 Many recent IPOs are only offering shares from existing promoters, with no fresh issue of shares for the company.
• 🔍 Demand for shares at the time of listing appears to be low, limiting potential gains for investors.
• ⚠️ Experts caution that substantial gains are not expected on the listing day for large IPOs.

Q & A

What is the size of the largest IPO mentioned in the script?

The largest IPO mentioned is ₹2,787 crores.

What does GMP stand for, and why is it significant?

GMP stands for Grey Market Premium. It indicates the expected premium at which the IPO shares may list, helping investors gauge potential profits.

Which historical IPO had a significant loss on its listing day?

The LIC (Life Insurance Corporation) IPO had a significant loss, opening at ₹949 and closing lower on the listing day.

What was the outcome of Paytm's IPO for its investors?

Paytm's IPO opened at ₹50 but closed down at ₹27 on listing day, resulting in substantial losses for investors.

How has Coal India's IPO performed over the years?

Coal India's IPO share price has nearly doubled over 14 years, trading between ₹495 and ₹500, with a 40% gain on its listing day.

What does the script indicate about the demand for shares in the upcoming IPO?

The script indicates that the demand for shares in the upcoming IPO is expected to be low, which may affect the listing day performance.

What is meant by an 'offer for sale' (OFS) in the context of this IPO?

An 'offer for sale' means that the promoters are selling their shares to the public, and the funds raised will not go to the company but to the promoters.

What were the historical gains or losses for GIC India's IPO?

GIC India's IPO opened slightly lower on listing day, leading to a 4.45% loss, and the shares are still trading around ₹00 after seven years.

What implications does the past performance of large IPOs have for potential investors?

The past performance indicates a high risk of losses on listing day for large IPOs, suggesting that potential investors should proceed with caution.

Why is the anticipated performance of the upcoming IPO considered uncertain?

The anticipated performance is considered uncertain due to low demand and the historical trend of losses in large IPOs.