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How the super-rich are distorting merchant banks’ IPO price discovery efforts

09 August, 2017

When hypermarket chain D-Mart made its debut on the stock markets in March this year, its shares doubled on the first day itself. The blockbuster listing came after its initial public offering turned out to be one of India’s most successful ever thanks to heavy demand from investors, especially high-net-worth individuals (HNIs).


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1 Comment
gautam.joshi@asia.bnpparibas.com . 1 week ago

Interesting article and the problem is very well elaborated, however the author should have also dwelled into suggesting a solution to this menace. As it goes against the basic tenet of encouraging retail investors to invest in new IPO’s as well as having a well diversified holding of investors. Distorting the price discovery , although left to the markets does not mean that at the cost of Retail investors hard earned money going down the drain & eventually turning them away from the secondary capital markets.

How the super-rich are distorting merchant banks’ IPO price discovery efforts

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