Please explain why there has been such huge subscription(nearly 200% or so) even by QIB and NII in the IPO market/primary market even for companies which doesn’t have good financials such as Nureca , Easy trip planners etc.??
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Two things right away…
1) Subscription to IPOs is a direct function of market sentiments…and u know the sentiments on the street right now
2) Its also a function of liquidity….there is abundant liquidity a low cost funding available
3) Most sunscribers are short term focussed and are not concerned with long term fundamenatals-they would sell off the very first day that the ipo gets listed…and returm the amount that they borrowed to apply for the ipo.
So what you are saying is that the QIB , NII are also jumping in the primary markets with their money just for listing gains, Correct ??