A gray trading lesson for retail investors from the HDB financial

Prior to announcement, the financial stock of HDB’s financial finance is trading ₹1,250 apiece.

As a result, HDB shares HDB shares have been solved rapidly in gray market. With a compound problem, the rules require 6 months in Post-IPO.

This is the risk that investors should be considered before having an inappropriate inference.

Fraud

The obtaining no-free share involves the risk of fraud, as the transaction is not facilitated by the platform.

“Investor can lose their capital if they were caught in the wrong project.

In addition, brokers are charged for higher committees in the market without transferred market.

Gray marketing risk

The gray marketing activity usually begins in anticipation of the company’s public publications. Early activities may begin as soon as the body of the body (DRHP) is filed, but usually it will be more obvious in the IPO launch.

However, the gray market comes with your own risk. As results in the market performance normally.

When buying attention for the limited pool is high, gray market prices may be higher than the Company’s fair value. In the case of HDB financial cases have evaluated the value of their own shares at the lower price of the gray market.

Risk

Timelines often expressed in two ways.

The value of the gray market may be higher as much as the IPO around the IPO grows. However, assessing these values ​​may not need to be close to iPo in the end.

Mr. G. Chokkalingam, founder and over the fall during the IPO and better research.

“This strategy is still risky, like investing in the company when there is the future precision of the IPO.”

It is also at risk that the company may never go to IPO. “It is not uncommon for companies to be delayed or even the implementation of the company’s activities, external environment

This will cause the investor needed to become investors attached to the stock without exit.