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Getting Confused in choosing the right #IPO ?! (Ranking given at the last for this week 9 Mainboard IPOs)
With numerous Mainboard IPOs hitting the market, investors face a daunting task: deciding how many to apply for and how many lots to opt for. After analyzing the past three months Mainboard IPOs basis of allotments(BOA), I've drawn some valuable conclusions.
Key Takeaways from Past IPOs:
1. Retailers who applied for 1 lot (₹15,000) had a higher allocation priority than those who applied for Retailers (₹30,000 to ₹2 lakhs), BHNI (above ₹10 lakhs), and SHNI (₹2 lakhs to ₹10 lakhs).
Allotments Priority:
Retailers (1 lot/₹15000) > Retailers ( ₹30K to 2 Lakhs)> BHNI(above 10 Lakhs) > SHNI(2 Lakhs to 10 Lakhs) was the allotments priority given in most of the companies
2. BHNI category applicants typically received ₹2 lakhs worth of shares only if allotments were made.
3. ₹30,000 - ₹2 lakhs Retailers category allotments usually received 1 Lot/₹15,000 worth of shares, with just one extra share in most cases.
4. Applying for more than one lot usually reduces the chances of allotment. Suppose in retailers category, 93% of total applicants had applied for 1 lot means, 93% of the total shares to be allotted are blocked only for this category applicants. In 2 lots category if 2% of the application had received means, only 2% of the shares are blocked in this category.
5. This pattern was commonly seen for oversubscribed IPOs with sky high GMPs. In less subscription companies they simply had filled the allotments for the money they had received.
More Points to Ponder:
1. Check the company's financial health: Look for strong revenue growth, healthy profit margins, and low debt.
2. Evaluate the management team: A competent management team can make a significant difference in a company's success.
3. Industry trends and growth prospects: Invest in companies operating in growing industries with strong future growth potential.
4. Subscription status and GMP: Monitor these to gauge market sentiment and make informed decisions.
9 Mainboard IPOs of this Week:
We have 9 Mainboard IPOs this week, with most closing today or tomorrow. Two companies are allocating only 10% shares for retailers, while the rest offer 35% shares for the retailers quota. Based on financials, subscription status, and GMPs, I've ranked the companies as follows:
Risk-Free:
1. Mamata Machinery
2. DAM Capital
3. Unimech AeroSpace (closes on 26th)
4. Senores Pharmaceuticals (closes on 24th, with only 10% for Retailers)
5. Transrail Lighting
Moderate Risk:
1. Ventive Hospitality (with only 10% for Retailers)
2. Concord Enviro
Risky:
1. Sanathan Textiles
2. Carraro India (closed on 24th)
The choice is yours. Good luck!

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