Wednesday, March 18, 2015

Time to rethink on the HNI ?

The response to the Adlabs issue is interesting.
HNI Segment subscribed to just seventy percent of what was kept aside for them.
Retail got sucked in and did 140% of what was kept aside for them.
An issue where the Retail has got suckered in big time, I think. Of course, they can still do a "STOP PAYMENT" and withdraw their application before allotment.
 The HNI segment used to be the biggest one when IPO financing was in vogue. Rightfully, the RBI put an end to that racket. So now the HNI segment (i.e. those who are not institituions and investing upwards of two lakh rupees) is deprived of IPO financing, I think it is the end of this segment as a viable window dressing for any IPO. The HNI segment used to leverage extensively, sell on listing and make money (not always). The category of retail and HNI can be folded together. Retail can always get a preference if SEBI does a simple thing of ensuring that allotments also take in to consideration the number of applicants. Need not be proportionate to the money invested. If cricket could invent a Duckworth Lewis to solve problems, this should be leasf of the problems.

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