Invest, but Cautiously
Many of the recent initial public offerings were aimed at providing earlier investors an exit route rather than capital formation.
Many IPOs were aimed at providing earlier investors an exit route rather than capital formation
If it was not for some of our investors looking for an exit, we might have not listed our company,” says Murugavel Janakiraman, CEO, Matrimony.com. The company, whose initial public offering, or IPO, in September mopped up nearly `500 crore at `985 per share, got only `130 crore, as the rest went to exiting investors. The stock was subscribed 4.5 times but, since its listing, has had a tepid run, ending the first listing day at `901.20. As of September 26, it was down to `801.90, 18.5 per cent below its issue price. But Janakiraman is not worried. “The listing has given us liquidity and visibility, apart from allowing earlier investors an exit,” he says. “We raised only `130 crore as we do not need more money.”
Matrimony.com is not a one-off case. The aim of many