On the slew of initial public offers (IPOs) seen in India, Mobius said many of them were “much too aggressively priced”. “Many of these IPOs are going to have to be repriced as we go forward. That is already happening; we have seen a number of IPO prices come down even before they begin to think about going to the market,” he said.
The IPO party would, however, help in reining in the secondary stock market from going to bubble valuations because the excess supply of paper absorbs capital. “This IPO activity has a tempering effect on the markets which is very positive,” he said. “I am certainly not against IPOs. That doesn’t mean I am going to go after these IPOs that are expensively priced
various issue has been address to sebi before regarding the investors protection and sebi has made amendments time to time.
there should be some thing like investor protection board or sebi should undertake the responsibility.
They have a say even now, of course in deciding either to buy or say NO. If the over priced IPOs are rejected then the price of the new IPOs will automatically come down. After all the market is all about supply and demand. I do not now as to how the retail investors can have a say in deciding the issue price.
dear nadhi,
I agree with you on this, retail investors do not have any say. but have to control themselves by refraining from subscribing to such ipo`s. I have never seen sebi, returning prospectus in the name of high prices whether it is from public /private sector..
regards
t23
tara23 One solution can b no price band.Let investors themselves write price in d form that they wl buy at this price and co then allot to those who have quoter high price.It wl also stop grey market.
Many a time investors get carried away by the greed of making quick buck on the listing day and end up overlooking the higher price.
It is up to the investor to decide whether to apply or not.
As long as the greed exists, exploitation also exists..retail lot have to blame nobody except themselves when it comes to applying for high priced IPOs.
IPOs were real attraction in the days when they were offered at par during the time of CCI( controller of capital issues).
Once the norms got relaxed ( with the advent of SEBI and new capital market regulations came in to existence in early 90s)and companies were allowed to charge premium, they lost the charm and savvy investors since then have been keeping themselves away from IPOs as they always find better options in secondary markets.
Now its only the gullible ones and gamblers who get carried away by IPOs.
Why should SEBI object??? Company officials put enough money in their pocket for keeping their mouth shut... Regarding small investors, even after so many disasters in the IPO market for the last few years, they don`t have any lessons learnt, then it is better that they lose their money...
Agree with you. To the ones who subscribe for IPOs, gullible are negligible. Gamblers are in plenty.
I read a message that the IPO issue pricing should be as such that the retailers should have some benefit by selling on listing. That is in other words an almost guaranteed return on listing. LOL. The boarder neglected to think about the response in that case and the possibilty of drawing of lots for allotment.
About 15-20 years before I have seen my friends getting their amount returned than shares getting allotted. Of course when the IPos were issued on face value.
There are some short comings with SEBI. I accept. But I am unable to understand as to why we buy either knowing it as over valued or not knowing about value at all. It is due to either greedyness or ignorance/innocence. Unfortunately market never forgives both.
sebi should valuate the valuations whether it is fair or not... in the interests of all investors... why only investors, should be looking at.. in the interests of a healthy stock market..and economy they should object.. and should not object after every one burnt their fingers and lose their shirts..
| NIFTY 
