The bare truth about mega IPOs is before everyone to realise.
Anil Ambani's dream of becoming the richest man/ richest Indian has been put on hold, and alongwith him the dream of the aam aadmi from becoming a sultan overnight has also been decimated.
The mega issue of Reliance Power has been listed at a steep discount, despite being oversubscribed several times over. It is a matter of some soul searching for the promoters, lead managers to the issue as well as the brokers who advised their clients to subscribe to this highly overrated issue. Earlier, last week the EMAAR-MGF mega issue was also shelved, leaving the promoters with a wish unfulfilled. However, small investors must thank their stars that they were spared of their hard earned money getting locked in one issue, and getting only upto 17 shares in the other, reducing your loss considerably.
Dear investors, there are a lot of lessions to be learnt from this episode:
Anil Ambani's dream of becoming the richest man/ richest Indian has been put on hold, and alongwith him the dream of the aam aadmi from becoming a sultan overnight has also been decimated.
The mega issue of Reliance Power has been listed at a steep discount, despite being oversubscribed several times over. It is a matter of some soul searching for the promoters, lead managers to the issue as well as the brokers who advised their clients to subscribe to this highly overrated issue. Earlier, last week the EMAAR-MGF mega issue was also shelved, leaving the promoters with a wish unfulfilled. However, small investors must thank their stars that they were spared of their hard earned money getting locked in one issue, and getting only upto 17 shares in the other, reducing your loss considerably.
Dear investors, there are a lot of lessions to be learnt from this episode:
- There are no shortcuts to make money on the stock market.
- Stock market is not a Casino.
- Money can only be made in the long run.
- Patience is the key to success, on the markets.
The mega issues have taken a heavy toll of the secondary markets, but it is not the time to press the panic button. Hold on to your stocks for long term, the market revival may be around the corner.
History repeats itself, and this time will be no exception. Past record of the sensex tells us that the returns from the sensex are in excess of 18% per annum, leading to the sensex doubling in value every four years on an average. The long term trend line of the sensex is around 16800 levels currently. Stay invested, have patience to reap profits in the long run.
1 comment:
I have lost heavily in the market in the past one week. I am in a dilemma whether to stay invested or quit, lest the market falls further. Your advice comes as a ray of hope. But, is it possible to see the sensex doubling in four years after the recent turmoil?
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