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On This Day - Jun 19, 2017
The Bonanza of IPOs in Indian Markets

Initial Public Offerings (IPOs) have got a good attention of Investors these days. Looking at the performance of IPOs listed in 2017, one could see the reason why. Almost 75% of the IPOs listed in 2017 till date have given positive returns. In fact, IPOs like D-mart have given birth to new investors in the market.

Although we are nowhere near the euphoria of 2007, we are slowly but surely getting there. The big question: Is this euphoria justified?

Billionaire investor Warren Buffett certainly doesn't think so....

"It's almost a mathematical impossibility to imagine that, out of the thousands of things for sale on a given day, the most attractively priced is the one being sold by a knowledgeable seller (company insiders) to a less-knowledgeable buyer (investors)."

One need to understand the purpose behind IPO listing. It is either to raise money for the business or as an exit route for private equity investors or owners. In both the cases, the owners of the company tend to overprice the value of their business since they are aware of the hoopla surrounding the IPO and the number of investors waiting to lap it up.

Value investors rarely if ever look at IPOs as a way of making easy money. For them, valuation and business fundamentals are all that matters.

However, there are some exceptions to the rule. And to help you understand those exceptions and how to approach the world of IPOs, we have something for you...

Our new and completely free report - How to Get Rich with IPOs - will tell you how to find those money spinning IPOs and avoid the disasters in the coming year and beyond.

Data Source: Chittorgarh.com
* Provisional Numbers

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