The market for dealing in unlisted shares now gives the company a market capitalisation that dwarfs its parent firm Reliance Industries (RIL), which holds about 99.95 per cent stake in the retail firm.
- Warren Buffet
But such wisdom holds no merit for the new-age equity investors, who are in a hurry to make their first million. India’s IPO mart has been delivering solid returns of late, with some issues doubling investors’ money in debut trade.
But even that’s not enough for the young and the restless, who are rushing to the unofficial market for unlisted shares to try and buy shares of the companies that are in the queue to float their primary issues. The idea is to catch potential multibaggers early at cheaper valuations.
However, that’s not a smooth ride. The pre-IPO market is already overheated, and many of the listing-bound candidates have already turned multibaggers, trading at mercurial valuations.
There is a possible upside of up to 100 per cent in unlisted stock, as the company is eyeing double the valuation, compared with last fundraising, said Rajesh Singla, Founder, Planify.
New Delhi: A surge in Covid-19 second wave in the country has led to the suspension of the ongoing edition of Indian Premier League (IPL). The cricket tournament has been postponed indefinitely, as at least half a dozen players and support staff from different franchises have tested Covid positive.
After the developments in the last few hours, unlisted shares of IPL franchise Chennai Super Kings (CSK) have nosedived some 30-odd per cent. The unlisted scrip was available at Rs 60-62 in off-market trade on Tuesday down from Rs 82-85 in mid-April, when the tournament had started.
Dealers of pre-IPO market said the kneejerk reaction was on the expected lines.