Quality IPOs evoke tremendous response from investors

Investors have given a thumbs-up for IPOs from quality companies from sun-rise sectors. The recent IPOs of ENIL (promoter of Radio Mirchi FM station) belonging to the Times group and GSPL (Gujarat State Petronet Limited) have evoked tremendous response from the investor community.

Both the issues have got oversubscribed by more than 40 times. The demand from retail investors have been awesome with the retail portion of both issues have subscribed more than 20 times.

This is good news as there is appetite for good paper in the markets. The retail investors have been shunning from investing in the secondary markets as the markets have been scaling new highs every other day.

With such euphoria in the secondary markets the retail investors have been investing in mutual funds and IPOs of quality companies. Is this the end of bull run? People tend to say when new issues flock the markets and the rickshaw walas giving stock tips are signs of market at its peak or near its peak. Only time will tell whether it is true or not.

Source : Equity Bulls

Keywords