Not a Great Listing

I have applied to Tarsons Products Limited Initial Public Offering thinking it will give me a decent listing gain. I have been applying to IPO for quite some time but whenever there were huge applications it's very hard to get the shares, but for tarsons it was decent applications that means I had a better chance of getting the IPO and I got it.

PC: Chittogarh.com

The Grey Market Premium for Tarsons was around Rs 170 which means for one lot I would have got around Rs 3740. I had some funds so I tried my luck of getting the allotment and thinking that the Indian market will remain stable and since it was a leading Indian life sciences company it will surely go up and give around 50% returns.

But I was wrong the Tarsons debuted at only 3% higher which means Rs 20 per share but the good thing was it had hit the Upper Circuit in half an hour by rising 20% and people got around Rs 156.40 profit per share. I had no intention of keeping the share for the long term so I have sold 19 shares for Rs 810 thus taking out my Initial investment and the 3 shares I have kept to see how it behaves in 3-6 months time.

PC: Groww.com

I do not expect it to go too high and I only applied it just to get some short term benefit which I have got and if it goes higher for another Rs. 200-300 I will be selling the remaining 3 shares too to remove any allocation from my portfolio.

I think if the market would have been on Green instead of Red then the situation might have been different. Today was a blood bath again in the Indian Market where the market was down around 2.87%.

PC: Groww.com

And I think because of this blood bath the IPO was listed at less price than the Grey Market Premium. There are two more IPOs will be opening next week and I will be applying for one of them. As I said I have already sold almost 95% of my share just to get the capital back for the next IPO. I do not trade much but I really like to invest in good IPOs because that is one of the safe bets in these market conditions. Those who have more capital usually applies to the HNI category for more than 100 lots to get more shares in a good company.

I think if I have that much capital I will be doing the same, I will be applying in the HNI category hoping to get more shares for good companies just to get the listing gains. I will keep some of the shares for the long term but again it totally depends on which company you are buying. There are some companies that have given 5X-10X returns from the initial offering price and thus who have to hold on to some shares are actually in the profit. Just like holding Hive and reaping the profit now.

In my case I have to change my mindset to take some risks, I am actually a risk-averse person who wants to keep the capital intact and the profit should rise automatically and because of that I have sold the share today just to keep the capital for my next IPO.

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