The IPO from Bharatiya Global Infomedia Limited (BGIL) which had opened for subscription on Monday the 11th of July and closed on Thursday the 14th of July was subscribed. The IPO was for 67.20 lac shares in a price band of Rs 75-82. There was not even a single application ion the QIB category and the entire issue was subscribed by the retail investors and partly by the HNI Investors. This issue is yet another example of an issue which is fundamentally weak, has therefore not received a single share application from QIB’s, yet is subscribed by retail which is oversubscribed 5.06 times because the retail believes that there are “friendly intermediaries” behind the issue. The greed is that because of this so called support there will be listing gains and therefore the support and the subscription to the issue. God help the investor.

The details of the subscription level in various categories are given below: –

One more IPO has come and been subscribed. The quality of issues seems to be deteriorating to such an extent, that one feels that it is not worth the effort to even analyse the issues. Because they are fundamentally sub-standard they are expensively priced or ridiculously over-priced to take care of the expenses of marketing the issue and they therefore receive little or no support from the QIB investors. This is a vicious circle and it is like the chicken and egg story where it is difficult to say what should be done to prevent this malpractice from being done. I am aware that this is very dirty and deep game and probably people may not like the fact that I am trying to warn people about this. I believe that it is high time that some checks and balances are introduced otherwise if this continues so rampantly, there would be bad times for all market intermediaries.