IPO vs QIP shares: Which is better in stock market today?

livemint.com:

IPO vs QIP shares: Amid the buzz of around ₹30,000 crore money getting raised in the Indian primary market through fresh Initial Public Offerings (IPOs) in the next two months, retail investors are eagerly waiting for the launch of fresh IPOs from the quality business houses like Bajaj Housing Finance, Haldiram, Prestige Estate, Ola Electric, Swiggy, Waree Energy, etc. However, if we go by the expert's opinion, the Indian stock market is preparing for a fresh rally after Modi 3.0 took charge in the centre.

They said that most of the ministers had been retained in the business and economy-related ministries, which means continuing the policies in these ministries.So, a non-listed company would try to benefit from this bull market, and hence, a good number of IPOs are expected to hit the Indian primary market in the next few months. However, they also mentioned that a company initially made a public offer to raise money either for the promoters or the company.

So, most IPOs coming in a bull market are offered at a higher valuation, leaving very little room for a retail investor. Those looking at options other than the stock market in the equity market should look at the QIPs the listed companies offer to raise funds for the company.

In most QIPs, a company provides placement issues lower than the stock price, leaving much on the table for investors. Though QIPs are not for retail investors, they may help retail investors find a value pick for their portfolio.Comparing the two investment options, Avinash Gorakshkar, Head of Research at Profitmart Securities, said, "In the current stock market, we are heading for a fresh bull market or, say, pre-budget rally.