The Third Eye of Investor

It's raining IPOs right now and days are as busy as it could get for IPO players and analysts. A lot of people I know are applying in all the IPOs and I understand the reason behind this frenzy. Most of the recent IPOs gave good listing gain to investors, which gave a sense of confidence to retail investors and hence most of them are applying blindly as  Stocks only go up!! If you are also one of them then you can take an edge over most by just analyzing few things and then you can make an informed decision. Now, if you are applying just for listing gains, then this article might not help much as listing gains are purely based on sentiments and not necessarily on underlying business or fundamentals of the company. However, a company with good fundamentals and if available at reasonable price might give good listing gain and you can even hold that for long term. So, let me share the main points which I consider before applying in an IPO.   Understanding the business and ri...

March is going crazy with IPOs. There is a long list of companies coming up with initial public offer. to raise funds. So, you must be wondering, why is it that so many companies are lining up for money at the same time. Let's discuss this. There could be various reason to it but following are also very obvious reasons: 1. Surging retail participation in equity markets - This is really good for companies planning an IPO as this can give easy exit to Private Equity investors and at times gives opportunity of encashing high valuations to the promoters also. 2. Response to recent IPO listing - This is a confidence booster. Almost all the recent IPOs were oversubscribed and listed at bumper price, way above its IPO price, which was already overvalued in most of the cases. Let's have a look at current price of recently listed companies.   Source: StockEdge We can see that most of the companies are trading at a price which is lower than listing price in most of the cases and even b...

Heranba Industries Limited's IPO is opening for public tomorrow to raise up-to Rs. 625.24 crores. So, let's discuss this IPO. Company profile Heranba is a manufacturers of Synthetic Pyrethroids and its intermediates in India based out of Vapi, Gujarat, with Corporate and Administration Offices in Mumbai. It has a wide network of business in India as well as in world market with a phenomenal growth rate year after year. It produce advance agro-chemical solutions based on specially developed technology. Its Public Health products are supplied in both Government Tenders and to Pest control companies. It has expertise on all the key chemical reactions on commercial scales. Presently engaged in the following processes: Objective of the IPO 1. To fund working capital requirements 2. General corporate purpose Third Eye View - Not growth oriented but a good opportunity for retail investors to participate in.  Financial data Numbers are looking fabulous. Net worth is increasing, profit...