The Third Eye of Investor

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...

Stock markets across the globe have fallen recently due to rising bond yields. Let us understand the relation between bonds and equities and try to figure out whether this fall will continue or it is just an overreaction of slight increase in bond rates and markets will rally again. Nifty - Last 5 days chart Government bond yield - Last 5 days chart Bond yield and equities have inverse relation, in general which we can see in published charts. However, it is not absolute relation because equities can move up or down due to a lot of other factors also but recent fall was primarily due to concerns over increasing bond yields. If bond rates are high, it is very obvious that few investors will move to bonds from equity as it is safer option and your capital is protected.  Stocks are risky by nature. You can lose your entire capital forget about dividend or capital appreciation. Whereas bonds are secured, in general and if it is government bond then of course it is backed by government ...

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...