SEBI Raises Red Flags on Shares of These Firms; Here’s What Investors Need To Know
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Journalist by profession, marathoner by passion. Constantly chasing stories and personal bests !
While SEBI has issued a consultation paper while proposing a hike in minimum application size among other things, experts believe that the regulator should look at creating entry barriers in the segment while also bringing in lock-in clauses for all IPO investors and pushing for at least a five-fold rise in the minimum application size. https://lnkd.in/d2D3fYx8
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Lately, there's been considerable buzz around SME IPOs, particularly concerning the fraudulent hype surrounding share prices, with investors often applying based solely on grey market premiums. Given that the minimum lot value in SME IPOs is significantly higher, it's crucial for investors to conduct basic research on the company. A few fundamental aspects, which can be reviewed using information available in the Draft Red Herring Prospectus (DRHP), should guide investors in deciding whether to participate in the IPO. This analysis will provide valuable insights into the company's prospects and future plans. Investing in SME IPOs involves several risks, including low market liquidity, which can lead to higher volatility and difficulties in trading shares. SMEs are generally smaller and less established, making them more vulnerable to economic downturns and financial instability. Valuation can be challenging, with prices sometimes inflated by speculation rather than solid fundamentals. These companies may also lack strong corporate governance and face difficulties in complying with regulatory standards. Additionally, SMEs often rely heavily on key individuals, making them susceptible to leadership changes. Limited publicly available information and sector-specific vulnerabilities further add to the risks, emphasizing the need for thorough research before investing. BSEIndiaNSE Indiamoneycontrol.comZEE BusinessCNBC
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Sharing few fundamental analysis to be done before applying for an IPO
Lately, there's been considerable buzz around SME IPOs, particularly concerning the fraudulent hype surrounding share prices, with investors often applying based solely on grey market premiums. Given that the minimum lot value in SME IPOs is significantly higher, it's crucial for investors to conduct basic research on the company. A few fundamental aspects, which can be reviewed using information available in the Draft Red Herring Prospectus (DRHP), should guide investors in deciding whether to participate in the IPO. This analysis will provide valuable insights into the company's prospects and future plans. Investing in SME IPOs involves several risks, including low market liquidity, which can lead to higher volatility and difficulties in trading shares. SMEs are generally smaller and less established, making them more vulnerable to economic downturns and financial instability. Valuation can be challenging, with prices sometimes inflated by speculation rather than solid fundamentals. These companies may also lack strong corporate governance and face difficulties in complying with regulatory standards. Additionally, SMEs often rely heavily on key individuals, making them susceptible to leadership changes. Limited publicly available information and sector-specific vulnerabilities further add to the risks, emphasizing the need for thorough research before investing. BSEIndiaNSE Indiamoneycontrol.comZEE BusinessCNBC
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Partner at PAIRA Advisors | Corporate Law | Private Equity | Transaction Advisory | Media
Very useful fundamental analysis for retail investors!!
Lately, there's been considerable buzz around SME IPOs, particularly concerning the fraudulent hype surrounding share prices, with investors often applying based solely on grey market premiums. Given that the minimum lot value in SME IPOs is significantly higher, it's crucial for investors to conduct basic research on the company. A few fundamental aspects, which can be reviewed using information available in the Draft Red Herring Prospectus (DRHP), should guide investors in deciding whether to participate in the IPO. This analysis will provide valuable insights into the company's prospects and future plans. Investing in SME IPOs involves several risks, including low market liquidity, which can lead to higher volatility and difficulties in trading shares. SMEs are generally smaller and less established, making them more vulnerable to economic downturns and financial instability. Valuation can be challenging, with prices sometimes inflated by speculation rather than solid fundamentals. These companies may also lack strong corporate governance and face difficulties in complying with regulatory standards. Additionally, SMEs often rely heavily on key individuals, making them susceptible to leadership changes. Limited publicly available information and sector-specific vulnerabilities further add to the risks, emphasizing the need for thorough research before investing. BSEIndiaNSE Indiamoneycontrol.comZEE BusinessCNBC
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Corporate Finance and Deals Partner focused on financial due diligence, (buy-side & sell-side), for Private Equity & Corporates
Deal volumes were maintained in Q1 but the Private Company Price Index*, (PCPI), reveals an ongoing softening in trade multiples. Download the report: https://bit.ly/3yiEbW7 *The PCPI/PEPI tracks the relationship between the Enterprise Value (EV) to 'Earnings Before Interest Tax Depreciation and Amortisation' (EBITDA) multiple (EV/EBITDA) paid by trade and private equity buyers when purchasing UK private companies.
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#MarketsWithBS | It is not just the secondary market that is setting new records, the primary market is also buzzing with energy. The three IPOs closing this week will mark the best first half for the primary markets in 17 years.
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Delisting process: Sebi’s fixed price model may face acceptance hurdle In this latest article on Financial Express (India), Vatsal Gaur shared valuable insights discussing the complexities of the new model. He emphasized that the appeal of a 15% premium is contingent on various factors, including market conditions, the company's valuation, and investor sentiment. Read more: https://lnkd.in/gSY2BANW #FinancialMarkets #InvestorSentiment #CompanyValuation #ShareholderValue #MarketTrends #DelistingChallenges #CorporateFinance #FinancialInsights #InvestmentStrategy #KSK
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#SEBI To Tighten SME IPO Norms And Broaden UPSI Definition #SMEs #SMEIPO #Regulations #UPSI https://lnkd.in/g-E4zCKY
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Investors' growing preference for private markets has grown as the ASX is expected to close 2024 with fewer listings than it started with. https://lnkd.in/gFGZaiUk #asx #australiansecuritiesexchange #delisting #eqtnexus #equitytrustees #investment #listings #privatecompanies #privatemarkets #unlistedassets