Frenzied retail demand pushing SME IPOs to dangerous heights: Sunil Subramaniam
«Today, you just present a good story, people are willing to buy. And some of the recent IPOs are doubling just the day after listing are adding to this frenzy. But it is the institutional segment, the merchant bankers who need to be disciplined, who need to not use everything as a revenue earning opportunity,» says Sunil Subramaniam, Market Expert.
Am I right in saying when I say that right now merchant bankers who are taking some of the SME IPOs public, they are not doing their fiduciary duty. They are like the SEBI, whole-time director Mr Bhatia said that they are prescribing steroids when paracetamol can do the work?
Sunil Subramaniam: I think absolutely because if you look at it, the situation is that you have a gullible investing public. You look at the stories around the F&O story, the margin trading story, the Demat account, people just buying stocks. So, there is what is called in Hindi, the hawa. So, in this place, all it needs is a good story for people to buy it. And it has gone to such an extent that I got a WhatsApp forward saying, somebody has got 10 tickets to the Coldplay concert and wants to launch an IPO. Fin influencers are also a part of this.
Today, you just present a good story, people are willing to buy. And some of the recent IPOs are doubling just the day after listing are adding to this frenzy. But it is the institutional segment, the merchant bankers who need to be disciplined, who need to not use everything as a revenue earning opportunity.
And I think SEBI’s Mr Bhatia's thinking is
