Why Investing In Listed Peers Is Better Than Subscribing to Upcoming IPOs?

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The year 2016-2017 has seen a spree of IPOs making their mark from across the sectors. And investors have taken a bet in these citing listing gains. Nonetheless, few recent companies that forayed in the primary market failed to provide listing gains to investors.

Should listing gains drive investment decision in an IPO, read all about it here.

Generally, investments should be made keeping in view, long term horizon in mind and same goes with the IPOs. Betting on an IPO just to log in listing gains and exit is not a great idea as suggested by different analysts and experts.

The market sentiment has been the gear giving momentum to a number of IPOs this year and the year gone by.

Similarly, the valuations for these IPOs were seen edging higher on account of the market sentiment. So, on the whole, the environment around the recent and upcoming IPOs on the valuation front is very demanding. This means there shall not be enough room for the companies coming up with IPO issues to make huge gains despite the strong fundamentals backing.

So, experts from different broking houses suggests to look at listed peers which are available at cheaper valuations instead. And go by companies that have good financial as well as trading record.

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Why Investing In Listed Peers Is Better Than Subscribing to Upcoming IPOs?
The year 2016-2017 has seen a spree of IPOs making their mark from across the sectors. And investors have taken a bet in these citing listing gains. Nonetheless, few recent companies that forayed in the primary market failed to provide listing gains to investors.
Should listing gains drive investment decision in an IPO, read all about it here.
Generally, investments should be made keeping in view, long term horizon in mind and same goes with the IPOs. Betting on an IPO just to log in listing gains and exit is not a great idea as suggested by different analysts and experts.
The market sentiment has been the gear giving momentum to a number of IPOs this year and the year gone by. Similarly, the valuations for these IPOs were seen edging higher on account of the market sentiment. So, on the whole, the environment around the recent and upcoming IPOs on the valuation front is very demanding. This means there shall not be enough room for the companies coming up with IPO issues to make huge gains despite the strong fundamentals backing.
So, experts from different broking houses suggests to look at listed peers which are available at cheaper valuations instead. And go by companies that have good financial as well as trading record.
Goodreturns.in

Read more about: ipo, listing gains, valuations, financials
Story first published: Monday, October 23, 2017, 14:19 [IST]
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