IPOs seem to be back in action. The recent fancy in IPOs could be due to the overheated secondary markets, and the recent SEBI directive to list stocks in 12 days after closure of the issue. What this means, is that speculators will dump the stocks on the very first day of listing, and so we can expect the prices to fall in the subsequent few days.
Didn’t this happen before the market crashed? Are we heading towards an era of lower liquidity? The finance minister seems to have this in mind.

http://www.thehindubusinessline.com/2010/04/18/stories/2010041851190100.htm

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