Vishal Retail: Lucky ones will have little to cherish says Anand

In IPO, too good a news is a bad news! HNI Mr. Abhishek Anand is of the view that For HNIs pumping money into Vishal Retail happened to be as bad as pumping it into an IPO which couldn't get subscribed even 50%.

Anand puts an example for this; consider for an HNI who has put INR 2 million into Vishal retail IPO, taking oversubscription ratio of 300, at the end of allotment process, he may get meager 25 share in hand. Even at 100% premium listing it'll earn him a maximum of INR 6750. Now consider the interest rate (15% industry avg), he'll turn up paying on that over a month period, which if you calculate will come down to 25000. So at the end of day he is in loss, isn't he?

Well, even those in retail sector who will be among the lucky ones to get 25 shares, will have very little to cherish Anand goes on to say.

Probably Vishal Retail would have been a real good investment if DLF, which also opened for subscription on the same day, would have kept less aggressive pricing.

Learn the basics: http://knowmarket.blogspot.com/