The oversubscription of this IPO is going to change the Indian stock market.
Here’s what’s going on.
2 weeks ago, Resourceful Automobile’s 12 crore IPO made headlines for being oversubscribed 419 times. But what’s scarier is that Bajaj Housing Finance's IPO subscription is even higher.
Bajaj Housing Finance Limited, being founded in 2008, is genuinely creating a massive buzz in the stock market today due to:
→ ₹6,560 cr being raised
→ 63.61x being oversubscribed
→ ₹3.24 lakh cr in total bids
But here’s what really shook me.
Their ₹3 lakh cr funds are essentially locked up in bank accounts. For days!
Why does this matter?
→ The market will take a huge downturn
→ That ₹3 lakh crore is sitting idle
→ There is no cash to stabilize things
These 2 IPOs use the ASBA (Application Supported by Blocked Amount) method, where investors' money is held in their bank accounts but not deducted until the shares are allocated.
This would result in the funds being temporarily unavailable for other market activities. However, these funds will be tied up temporarily and will not be used for any market purposes.
The real risk isn't in the small IPO everyone's being worried about. It's in the big one, tying up massive liquidity.
For investors navigating this:
→ Keep an eye on overall market liquidity. It's your early warning system.
→ Brace for short-term volatility. It's coming.
→ Don't get blinded by subscription numbers. They can close your eyes to real risks.
Big subscriptions ≠ smooth sailing
Your move should be to:
→ Stay alert
→ Keep cash handy
→ Don't follow the herd
To all the investors and traders out there, as we brace ourselves for the market volatility that will be brought up due to the 2 IPOs, let’s be careful in making informed decisions rather than losing money faster.
Let the market turbulence work in your favor. Stay vigilant.
#stockmarketupdate #marketvolatility #IPOalert
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