From yesterday swiggy IPO has started and tomorrow is the last day for applying for the IPO. As per the GMP the Swiggy is not doing great as the GMP is below 1% and thus it might go down further and list in discount. But looking at the anchor list, the anchor list is great.
Swiggy is a loss making company, but they are coming up with the innovations and might see the profit in the future. Swiggy's competition was with Zomato. And zomato, also given good returns after listing. And that's why a lot of people are hopeful that Swiggy might give good returns too. The anchor list, who are institutional investors who get shares before IPO opens for retail investors, are also looking good where a very good names are actually invested in it.
I have made up my mind of not investing in the IPO. But I will surely buy the shares on the listing day because I feel it can give good returns in the next year as they might get into tough competition with Zomato which will actually force them to innovate things. A lot of people are actually avoiding it just by seeing the GMP. But I feel the company is good, the valuations seems to be little on a hunger side. When the valuations are high, it can give negative returns like PayTM whose shares listed for Rs 1600 but never recovered.
And that's why being cautious is actually the way to go because you never know what it can happen on the listing day. If there is a negative news, it can list at very low and thus you will get trapped. So that's why for me, investing on the listing day makes sense. What's your opinion about the same?
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