Is Buying An IPO a good option or should you wait until the IPO is out in the market.
After a weak 1st quarter and the impact of pandemic on the Indian economy and negative news of GDP it seemed there won’t be any companies braving an IPO launch after SBI cards washed out.
So why have there have been 4 large IPOs launched in just recently why do why has the stock market become and attractive option for the companies. Last year there were 16 IPOs launched in the Indian markets . This year after the success of Rossari Biotech which was over subscribed gave confidence to many other companies like Mindspace and Happiest Minds to go ahead and offer an IPO.
During the pandemic there has been a huge increase in new players(retail investors) in the stock market which have increased their volume by huge margin.Possibly this is the reason why all of the newer companies are positive as every new opportunity brought in the stock market may it be IPO or a Rights issue market seems to be eagerly waiting for it like a hungry wolf waiting to catch it’s prey.
And this is not just something witnessed in India this seems to be resonating across the globe with Nicola and Snowflake being over bought again market seems to be as bullish as it seemed during the dot com bubble.
Now coming back to the topic of upcoming IPO CAMS (Computer Age Management Service )
They operate in providing the banking sector with the digital age resources like KYC, Banking and Electronics payment and other services are being provided by CAMS.
And they make Revenue form paper based and digital transaction for the mutual fund houses and with a giving them a huge database of costumers and also the high net worth clients. CAMS provides these services to top 4 to India’s top mutual fund houses which have already been getting a huge business from with the newer retail investor’s.
As a conclusion it can be said that CAMS is a IPO to look out for and has a huge potential.And Chemcon which is a specialty chemical company which is moreover a company which manufacturers key ingredients used for pharmaceutical companies specifically for antiviral treatments due to which there is a great opportunity and that is the same reason why the IPO is subscribed over 8 times .Overall CAMS and chemcon both are great options for investment but theOffer price for the CAMS IPO which is offered @1230 which is higher than other IPOs but it has a unique market leadership.Whereas Chemcon which is one of the leading manufacturer of important antiviral pharma components which may be useful for covid-19 as well could have a bright future opportunities.