How will the performance be after listing?
Shankar Sharma, Vice Chairman and Co-Founder of First Global, said that to become a company like HDFC Bank and TCS, good management is needed for years. Such a company cannot be created just by spending money. In a conversation with Moneycontrol’s Kshitij Anand, Shankar Sharma said that there is excessive enthusiasm about the IPO of these companies. After listing, the performance of these companies will not be special.
Also read: PB Fintech IPO: Preparing to raise Rs 6500 crore from IPO, PB Fintech is the parent company of Policybazaar
Will investors benefit?
Shankar Sharma said that by investing through IPO, you can make profits immediately after listing. At a time when money is the only thing in the secondary market, this is the right time to bring big IPOs. This is also true in the case of Zomato. Sharma said, “I think it is right for them to raise money through IPO. Of course this is the right time. But is it also the right time for investors? That is a different question. Which is right for the company. Not necessarily good for investors either.
Told Zomato the loss making company
When you look at stocks like Zomato, it is a loss making company. The Indian market is very strict about profits. There has not been a very good history in the market that the shares of companies running in loss have gone up a lot. Burger King is a good example of this. The company is running in loss and the result is that its shares are not able to give good returns.
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