Thoughts on the upcoming L&T Technology IPO

[jesusloveselonmusk]

Hits the market on September 12 with an offer price of Rs 850-860 a share. Quite a few people calling it an overvalued share and are skeptic - specially after suffering losses in the L&T Infotech IPO. Your thoughts?

 

[zain]

@jesusloveselonmusk Provided how L&T infotech shares have fared I am planning to stay away from this

 

[resjudicata]

@jesusloveselonmusk Is it worth it to apply as a retail investor if you are applying upward of 1.5 lakh and the IPO is likely to be oversubscribed? I was thinking of apply more than 2 as an HNI so that the probability of getting allocations increases. Are there any tax or other implications of apply as an HNI?

 

[rsm777]

@resjudicata HNIs get 15% only as compared to retails 35% total shares on sale in this case.

Anyways, Definately gonna open in discount. All IPOs with < 50 times subscription in HNI are sure shot to open in discount where IPO size is > 1000 crore.

Look at the history since 2015. The bigger the IPO, better are the chances to open in discount.

 

[resjudicata]

@rsm777 But in case of over subscription, retail will get the minimum bid lot and some might not get anything at all while HNI will get allotment on proportional basis, right? Or is HNI always way too oversubscribed compared to retail? Thanks

 

[rsm777]

@resjudicata HNI is always subscribed comparatively higher than retail.

In this specific case, if the HNI portion is oversubscribed by 20 times, all you get is 1/20 of what you asked for.

Retail is pure statistics.