Whenever we apply for the IPO, we check the GMP or Grey Market Premium as well as check what is the overall PE ratio along with that how much the bug institutions are applying for. Even if the GMP is high, if the institutions are not applying, it's worth not applying for. Along with thar if the PE ratio is quite high then it's very less chance that the price will go up after the listing.
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And that's the mistake a lot of young investor in IPO is doing. Let me give you an example, today the Studds Stock get listed. It was perfect, more than 10% GMP, good institutions support along with that nicely priced. But still it was listed at discount and then it gone down. Now this could have happened because the overall sentiment is negative and the stock market seems to be going down.
But whatever is the case, it shouldn't have listed in discount. I have also applied the IPO but luckily I have not got it. The problem is previously I used to sell on profit, but now I thought of keeping some stocks for long term but that is not giving good returns. So now from now on I will be selling all the stocks on the listing day itself whether I will get profit or loss.
Similarly the Lenskart is going to list on Monday, I have not applied because the valuations seems to be quite high. And even though it can give me profit, it cannot sustain that much profit on the long term and that's why I have not applied for it. So if you are also applying in IPO, check few things before applying. And if rge IPO listed on discount, try to book the loss rather than waiting.
