29/09/2023
Promoters Selling is at its Highest Levels
In my view, nobody knows more about a company but the promoters, especially in the case of first-generation promoters. Every other day, you hear some or the other promoter selling a little part of his stake. The picture below says it all.
I'm sure the promoters know something more than analyst / fund managers. It's their own company after all.
*SME IPOs: Is there a Method to the Madness*
A Chennai based VFX studio that came up with its SME IPO at Rs 660 m a few weeks ago saw a subscription of 286 times. Basilic Fly Studio received bids of Rs 140 bn for its IPO.
The euphoria isn't limited to IPO bids but it continues on the listing day. and after it too. Sungarner Industries was up 200% on the first day while companies like Shoora Designs and Bonada Engineering doubled investors wealth on listing day. Is it really so easy to make money?
However, in such an upbeat mood, it's extremely important to stay cautious.
Markets never fall with a warning. It's fine to miss the last leg of any rally rather than to 'time the top'.
_Finally, always remember the old market wisdom which informs us that the market comes up the stairs but goes down in the elevator._
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