GM jsk stock in news ril,vatech,jainirr,trivenitur,grmover,vst,asianpaint, welspunndia,alembicphar,alhuwalia,tarc,cadila, equitas small,hul,nazaratec,nuvoco. Negative stocks DishTV,dhampur,thyrocare. Nifty range 17300-17450.

_*Bulk Deal & Insider Trade Update*_

Bulk Deals
*Balrampur Chini Mills : Balrampur Chini Mills Ltd Buy 1129869 Shares @ Rs. 366.53

*Wonderla Holidays Ltd. : Valuequest India Moat Fund Limited Sell 348251 Shares @ Rs. 238.11
Ashika

Insider Trade
Acquisition*
*Veda Nilesh Gupta Promoter Acquisition 2650 shares of Lupin Ltd. on 03-Sep-21

*Neel Deshbandhu Gupta Promoter Acquisition 2650 shares of Lupin Ltd. on 03-Sep-21

*ADVENTZ FINANCE PRIVATE LIMITED Promoter Group Acquisition 5000 shares of Mangalore Chemicals & Fertilizers Ltd. on 03-Sep-21

*Urmila Bhuwalka Promoter Group Acquisition 27736 shares of Jindal Steel & Power Ltd.

*BHARAT P MEHTA Promoter Group Acquisition 2500 shares of Sasken Technologies Ltd on 03-Sep-21

*DIPAK HARKISAN DESAI Promoter Group Acquisition 2758 shares of Sasken Technologies Ltd on 02-Sep-21

*Infinite Trade and Investments Limited Promoter Group Acquisition 520000 shares of Adani Green Energy Ltd on 03-Sep-21

**Disposal
*Nilesh D. Gupta Promoter Disposal 5300 shares of Lupin Ltd. on 03-Sep-21

*HARKISAN GIRDHARLAL DESAI Promoter Group Disposal 2758 shares of Sasken Technologies Ltd on 02-Sep-21

*SBI Life Insurance Company Limited Promoter Group Disposal 300000 shares of Sbi Cards And Payment Services Ltd on 03-Sep-21

*Mrudula Sushilkumar Parekh Promoter Group Disposal 200000 shares of Pidilite Industries Ltd.

*Promoter Group Disposal 34972999 shares of Thyrocare Technologies Ltd

Pledge
*Siddeshwari Tradex Private Limited Promoter Group Pledge 500000 shares of Jindal Steel & Power Ltd. on 03-Sep-21

*Rashmi Saluja Director Pledge 1425000 shares of Religare Enterprises Ltd. on 02-Sep-21

*Aura Securities Private Limited Promoter Pledge 2600000 shares of Arvind Fashions Ltd on 03-Sep-21

Revoke
*OPJ Trading Private Limited Promoter Group Revoke 1710000 shares of Jindal Steel & Power Ltd. on 31-Aug-21

*Siddeshwari Tradex Private Limited Promoter Group Revoke 250000 shares of Jindal Steel & Power Ltd. on 02-Sep-21
Ashika

Dividend Update
*Anjani Portland Cement Ltd. Final Dividend Rs. 5 Ex Date 07-Sep-2021
*Ashok Alco-Chem Ltd. Final Dividend Rs. 0.5 Ex Date 07-Sep-2021
*Axtel Industries Ltd. Dividend Rs. 3 Ex Date 07-Sep-2021
*Baid Leasing & Finance Company Ltd. Final Dividend Rs. 0.5 Ex Date 07-Sep-2021
*Beardsell Ltd. Dividend Rs. 0.1 Ex Date 07-Sep-2021
*Capri Global Capital Ltd. Dividend Rs. 0.4 Ex Date 07-Sep-2021
*Compuage Infocom Ltd. Final Dividend Rs. 0.2 Ex Date 07-Sep-2021
*Compucom Software Ltd. Final Dividend Rs. 0.3 Ex Date 07-Sep-2021
*Coromandel Agro Products & Oils Ltd. Final Dividend Rs. 2 Ex Date 07-Sep-2021
*Cybertech Systems & Software Ltd. Final Dividend Rs. 1 Ex Date 07-Sep-2021
*Goodricke Group Ltd. Dividend Rs. 3 Ex Date 07-Sep-2021
*Jeevan Scientific Technology Ltd. Dividend Rs. 0.5 Ex Date 07-Sep-2021
*KIOCL Ltd Final Dividend Rs. 1.64 Ex Date 07-Sep-2021
*Panasonic Carbon India Company Ltd. Dividend Rs. 12 Ex Date 07-Sep-2021
*Parag Milk Foods Ltd. Final Dividend Rs. 0.5 Ex Date 07-Sep-2021
*Praxis Home Retail Ltd. Right Issue of Equity Shares Ex Date 07-Sep-2021
#N/A
*Radix Industries (India) Ltd. Final Dividend Rs. 0.5 Ex Date 07-Sep-2021
*Shivalik Bimetal Controls Ltd. Final Dividend Rs. 0.3 Ex Date 07-Sep-2021
*Swan Energy Ltd. Dividend Rs. 0.1 Ex Date 07-Sep-2021
*Triveni Turbine Ltd. Final Dividend Rs. 1.2 Ex Date 07-Sep-2021
*63 Moons Technologies Ltd. Dividend Rs. 2 Ex Date 08-Sep-2021
*Acrysil Ltd. Final Dividend Rs. 1.2 Ex Date 08-Sep-2021
*Ajmera Realty & Infra India Ltd. Final Dividend Rs. 1.4 Ex Date 08-Sep-2021
*Asian Granito India Ltd. Right Issue of Equity Shares Ex Date 08-Sep-2021
*Bannari Amman Spinning Mills Ltd. Right Issue of Equity Shares Ex Date 08-Sep-2021
*B&A Ltd. Final Dividend Rs. 1 Ex Date 08-Sep-2021
*Creative Castings Ltd. Final Dividend Rs. 10 Ex Date 08-Sep-2021
*Dhanvarsha Finvest Ltd. Final Dividend Rs. 0.05 Ex Date 08-Sep-2021
*Dhunseri Investments Ltd. Dividend Rs. 2.5 Ex Date 08-Sep-2021
40
07:27

*Everest Organics Ltd. Final Dividend Rs. 1 Ex Date 08-Sep-2021
*Filatex India Ltd. Final Dividend Rs. 0.4 Ex Date 08-Sep-2021
*Flex Foods Ltd. Dividend Rs. 1 Ex Date 08-Sep-2021
*Garware Technical Fibres Ltd. Final Dividend Rs. 2.5 Ex Date 08-Sep-2021
*Genus Power Infrastructures Ltd. Dividend Rs. 0.5 Ex Date 08-Sep-2021
*Glenmark Pharmaceuticals Ltd. Final Dividend Rs. 2.5 Ex Date 08-Sep-2021
*Gowra Leasing & Finance Ltd. Dividend Rs. 1 Ex Date 08-Sep-2021
*Gujarat State Fertilizers & Chemicals Ltd. Dividend Rs. 2.2 Ex Date 08-Sep-2021
*Gujarat State Petronet Ltd. Dividend Rs. 2 Ex Date 08-Sep-2021
*Gujarat Gas Ltd. Dividend Rs. 2 Ex Date 08-Sep-2021
*Gujarat Intrux Ltd. Final Dividend Rs. 3 Ex Date 08-Sep-2021
*Gulf Oil Lubricants India Ltd. Final Dividend Rs. 9 Ex Date 08-Sep-2021
*Gulshan Polyols Ltd. Final Dividend Rs. 0.4 Ex Date 08-Sep-2021
*Hisar Metal Industries Ltd. Final Dividend Rs. 1 Ex Date 08-Sep-2021
*IOL Chemicals & Pharmaceuticals Ltd. Final Dividend Rs. 2 Ex Date 08-Sep-2021
*ISGEC Heavy Engineering Ltd. Final Dividend Rs. 1 Ex Date 08-Sep-2021
*Jaysynth Dyestuff (India) Ltd. Dividend Rs. 0.2 Ex Date 08-Sep-2021
*Kamdhenu Ltd. Final Dividend Rs. 0.8 Ex Date 08-Sep-2021
*Lotus Eye Hospital And Institute Ltd. Final Dividend Rs. 0.5 Ex Date 08-Sep-2021
*Lohia Securities Ltd. Final Dividend Rs. 2.7 Ex Date 08-Sep-2021
*Mangalore Chemicals & Fertilizers Ltd. Dividend Rs. 1 Ex Date 08-Sep-2021
*Mangalam Cement Ltd. Dividend Rs. 1.5 Ex Date 08-Sep-2021
*Maris Spinners Ltd. Dividend Rs. 1 Ex Date 08-Sep-2021
*Mazda Ltd. Final Dividend Rs. 11 Ex Date 08-Sep-2021
*Mahindra Holidays & Resorts India Ltd. Bonus issue 1:2 Ex Date 08-Sep-2021
*Mitsu Chem Plast Ltd. Final Dividend Rs. 0.2 Ex Date 08-Sep-2021
*MOIL Ltd. Final Dividend Rs. 4.9 Ex Date 08-Sep-2021
*Mukand Ltd. Dividend Rs. 1 Ex Date 08-Sep-2021
*Nitin Spinners Ltd. Dividend Rs. 1.5 Ex Date 08-Sep-2021
*NTPC Ltd. Final Dividend Rs. 3.15 Ex Date 08-Sep-2021
*Oil & Natural Gas Corporation Ltd. Final Dividend Rs. 1.85 Ex Date 08-Sep-2021
*Pilani Investment & Industries Corporation Ltd. Final Dividend Rs. 15 Ex Date 08-Sep-2021
*Pondy Oxides & Chemicals Ltd. Final Dividend Rs. 2.5 Ex Date 08-Sep-2021
*Power Grid Corporation Of India Ltd. Final Dividend Rs. 3 Ex Date 08-Sep-2021
*Premier Polyfilm Ltd. Dividend Rs. 0.5 Ex Date 08-Sep-2021
*PSP Projects Ltd. Final Dividend Rs. 4 Ex Date 08-Sep-2021
*PTC India Ltd. Final Dividend Rs. 5.5 Ex Date 08-Sep-2021
*Ram Ratna Wires Ltd. Final Dividend Rs. 1 Ex Date 08-Sep-2021
*Rishiroop Ltd. Buy Back of Shares Ex Date 08-Sep-2021
*RJ Shah & Company Ltd. Dividend Rs. 2.5 Ex Date 08-Sep-2021
#N/A
*Sahyadri Industries Ltd. Final Dividend Rs. 3.5 Ex Date 08-Sep-2021
*Salasar Techno Engineering Ltd. Final Dividend Rs. 1 Ex Date 08-Sep-2021
*Sequent Scientific Ltd. Final Dividend Rs. 0.5 Ex Date 08-Sep-2021
*Shree Ganesh Remedies Ltd. Final Dividend Rs. 1.75 Ex Date 08-Sep-2021
*Singer India Ltd. Final Dividend Rs. 0.5 Ex Date 08-Sep-2021
*Sumedha Fiscal Services Ltd. Final Dividend Rs. 1 Ex Date 08-Sep-2021
*Supershakti Metaliks Ltd. Final Dividend Rs. 0.5 Ex Date 08-Sep-2021
*Tribhovandas Bhimji Zaveri Ltd. Final Dividend Rs. 2.5 Ex Date 08-Sep-2021
*Themis Medicare Ltd. Final Dividend Rs. 4.3 Ex Date 08-Sep-2021
*Triveni Engineering & Industries Ltd. Final Dividend Rs. 1.75 Ex Date 08-Sep-2021
*TV Today Network Ltd. Final Dividend Rs. 2.5 Ex Date 08-Sep-2021
*Uflex Ltd. Dividend Rs. 2.5 Ex Date 08-Sep-2021
*Ugar Sugar Works Ltd. Final Dividend Rs. 0.2 Ex Date 08-Sep-2021
*Vedanta Ltd. Interim Dividend Rs. 18.5 Ex Date 08-Sep-2021
*Vipul Organics Ltd. Final Dividend Rs. 0.9 Ex Date 08-Sep-2021

*Good Morning*
• End Game of U.S. Withdrawal Wasn’t What Anyone Saw: Jaishankar
• India Asks Power Cos to Boost Output From Captive Coal Mines
• RBI Announces Additional Operations to Mop Up Excess Liquidity
• India Bond-Earnings Yield Gap in Uncomfortable Zone: Jefferies
• Palm Oil Prices Extend Advance on Positive India Demand Outlook
• India Cumulative Monsoon Rainfall 9% Below Normal as of Sept. 6
• India Stocks Extend Record Run as Realty, Tech Stocks Gain
• Global Funds Sell Net INR5.89B of India Stocks on Monday: NSE
o Domestic funds buy net 5.47b rupees of stocks
• Foreign Investors Sell Net INR6.35B of India Equities on Sept. 3
• Foreigners Buy Net INR48B of Indian Equity Derivatives Monday
• Gold Retreats From Near Seven-Week High as Dollar Rebounds
• Working at fast pace to restore air traffic to pre-COVID-19 levels: Scindia: PTI
• Sugar output may drop to 30.5 mn tn next season with more cane diversion to ethanol: PTI
• PM Modi to chair BRICS Summit on Thursday: PTI
• Ashapura Minechem (ASMN): Says its operations in Guinea continue to be normal
• Dish TV (DITV): Says Yes Bank (YES) seeks to replace some directors
• Nuvoco Vistas Corp (NUVOCO): 1Q group net income 1.14b rupees vs 913.8m year ago; revenue INR22.03b vs 8.42b y/y

*SGX Nifty +5 pts (17413) from last trade 17408*

Nikkei +267 pts ,
Hangseng +44 pts ,
Now @6.55am .

US Mkt Clsd, Bovespa +935 pts , Ftse +48 pts  , Dax +150 pts , Cac +53 pts , Crude @ $68.92 brl (+0.04), Brent @ $72.28 brl (+0.18) , Gold @ 1827.55 (+2.05), Silver @ $24.773 (-0.02), Euro @ $1.1880, JPY @ $109.78,  INR @ 73.105

*Today's Corporate Action*
*7th  Sep Ex Date*
APCL
Final Dividend - Rs. - 5.0000

ASHOKALC
Final Dividend - Rs. - 0.5000

AXTEL
Dividend - Rs. - 3.0000

BALFC
Final Dividend - Rs. - 0.5000

BEARDSEL
Dividend - Rs. - 0.1000

CGCL
Dividend - Rs. - 0.4000

COMPUAGE
Final Dividend - Rs. - 0.2000

COMPUSOFT
Final Dividend - Rs. - 0.3000

CORAGRO
Final Dividend - Rs. - 2.0000

CYBERTECH
Final Dividend - Rs. - 1.0000

GOODRICKE
Dividend - Rs. - 3.0000

JSTL
Dividend - Rs. - 0.5000

KIOCL
Final Dividend - Rs. - 1.6400

PANCARBON
Dividend - Rs. - 12.0000

PARAGMILK
Final Dividend - Rs. - 0.5000

PRINCEPIPE
Final Dividend - Rs. - 2.0000

RADIXIND
Final Dividend - Rs. - 0.5000

SHBCLQ
Final Dividend - Rs. - 0.3000

SWANENERGY
Dividend - Rs. - 0.1000

TRITURBINE
Final Dividend - Rs. - 1.2000

*Today's Key Results/Board Meetings*
*7-Sep-21*
ALSL
A.G.M.;General

ASYAINFO
Audited Results

BENARA
A.G.M.

COSPOWER
A.G.M.;General

FRANKLIN
General

GSBFIN
A.G.M.

HKG
A.G.M.;General

HVL
A.G.M.;General

JAINMARMO
A.G.M.

JISLDVREQS
Preferential Issue of shares

JISLJALEQS
Preferential Issue of shares

KAARYAFSL
A.G.M.;General

KCDGROUP
A.G.M.

LOYAL
A.G.M.

MACH
A.G.M.;General

MISQUITA
A.G.M.;General

MRSS
Preferential Issue of shares

NILACHAL
A.G.M.

NIVAKA
A.G.M.;General

ODYCORP
A.G.M.;General

ONEGLOBAL
A.G.M.

OPTOCIRCUI
Quarterly Results

PBGLOBAL
A.G.M.

PROVESTSER
A.G.M.;General

RAJNISH
A.G.M.;General

RISHDIGA
A.G.M.;General

SEAGOLD
Increase in Authorised Capital;General;Preferential Issue of shares

SHANTAI
General

SIROHIA
General

SPECMKT
Preferential Issue of shares

UNITINT
A.G.M.;General

VISUINTL
A.G.M.;General;Quarterly Results

VRFILMS
A.G.M.;General

ZPRBHSTE
A.G.M.;General

*Stock under F&O ban on NSE*
*7-Sep-21*
1IBULHSGFIN
2NATIONALUM

World Markets

Dow Closed
Nasdaq Closed
Dax + 151
Nikkei + 207
Hangseng - 46
Sgxnifty - 2 (17406)
Brent Crude 72.28
Dow Fut + 35
Dollar Index 92.13

Insiders Trades

Adani Green Energy: Promoter Infinite Trade and Investments bought 5.20 lakh shares on September 3.

Jindal Steel & Power: Promoter Urmila Bhuwalka bought 27,736 shares between August 31-Spetember 3.

Lincoln Pharmaceuticals: Promoters (Munjal Patel and Ashish Patel) bought 60,000 shares on September 6.

Mangalore Chemicals & Fertilizers: Promoter Adventz Finance bought 5,000 share on September 3.

Man Infraconstruction: Promoter Mansi Shah bought 1.94 lakh shares on September 3.

Pidilite Industries: Promoter Mrudula Parekh sold 2 lakh shares between September 2-3.

RPSG Ventures: Promoter STEL Holdings bought 25,000 shares on September 3.

SBI Cards and Payment Services: Promoter SBI Life Insurance Company sold 3 lakh shares on September 3.

Sasken Technologies: Promoter Bharat Mehta bought 2,500 shares on September 3.

Stocks To Watch

Dish TV India: YES Bank, which holds a 25.63% stake in Dish TV India, has sought the removal of five directors in the company, including Managing Director Jawahar Lal Goel. YES Bank has given a special notice under Section 169 of the Companies Act, 2013. The bank said the current board of directors of the company had approved a rights issue process despite the bank's objections solely to dilute its shareholding and to prejudice the interests of the bank.

Cochin Shipyard: Has emerged as the lowest bidder in the 6-vessel tender from the Indian Navy for the next generation missile vessels worth about Rs 10,000 crore and the formal contract signing is expected shortly, said Madhu Nair, Chairman & Managing Director.

VST Tillers Tractors: The company has entered into an agreement with Export Trading Group, for distribution of its tractors, power tillers, power reapers and diesel engines in the Southern African markets including South Africa, Namibia, Botswana, Zimbabwe, Swaziland, and Zambia.

Triveni Turbine: Due to multiple disputes for over two years amongst joint venture partners, Triveni Turbine and DI Netherlands BV and Baker Hughes and its affiliates, General Electric Company and its affiliates, these parties agreed to terminate the joint venture agreement and finally resolved the multiple disputes amongst them. The JV stands terminated, as do all technology and brand licenses executed among the former JV partners. Further, the entire shareholding held by DI Netherlands BV in the equity share capital of GE Triveni has been acquired by the company for Rs 7.99 crore.

SVP Global Ventures: Approved the appointment of OP Gulia as CEO of the company.

Ashapura Minechem: Operations in Guinea continue to be normal despite certain political developments in Conakry, the capital of Guinea, since September 5, the company said. We continue to monitor the situation closely; all the employees of the Ashapura Group in Guinea remain safe and are in contact the company, it added.

Starteck Finance: The company approved to sell 100% stake in subsidiary Starteck Housing Finance to Paripurna Trust and/or Matrabhav Trust for Rs 11.45 crore.

Who’s Meeting Whom

UltraTech Cement: To meet Amundi Asset Management on September 7.

Indoco Remedies: To meet Sameeksha Capital on September 16.

Rail Vikas Nigam: To meet Canara HSBC OBC Life, New Horizon, ITI MF, and TruEquity Adviors on September 8.

Pledge Share Details

Arvind Fashions: Promoter Aura Securities created a pledge of 26 lakh shares on September 3.

Jindal Steel & Power: Promoter OPJ Trading revoked pledge of 17.10 lakh shares on August 31. Promoter Siddeshwari Tradex created a pledge of 2.50 lakh shares on September 3.

Orient Cement: Promoter Shekhavati Investments and Traders revoked pledge of 19.50 lakh shares on September 3.

Money Market Update

The rupee ended at 73.10 against the U.S. Dollar on Monday as compared to Friday's closing of 73.01.

Trading Tweaks

Ex-Date AGM: Prince Pipes And Fittings, Capri Global Capital, Shivalik Bimetal Controls, Dynamatic Technologies, Kewal Kiran Clothing, Swan Energy, Navkar Corporation, RSWM

Ex-Date Final Dividend: Anjani Portland Cement, Ashok Alco-Chem, KIOCL, Parag Milk Foods, Prince Pipes and Fittings, Shivalik Bimetal Controls, Triveni Turbine

Ex-Date Dividend: Axtel Industries, Capri Global Goodricke Group, Swan Energy

Record Date Final Dividend: Engineers India, Deccan Cements, CARE Ratings

Record Date Dividend: Heranba Industries

Price Band Revised From 20% To 10%: Delphi World Money

Move Into Short-Term ASM Framework: Repro India, Tinplate Company of India, BLS International Services

Stocks Ban In F&O:
Indiabulls Hsg Finance,
Nalco

*Stocks in News*

Nuvoco Vistas Corporation: The company reported higher consolidated profit at Rs 114.28 crore in Q1FY22 against Rs 37.52 crore in Q1FY21, revenue fell to Rs 2,202.97 crore from Rs 2,631.61 crore YoY.

Orient Cement: HDFC Asset Management Company sold 44.70 lakh shares in the company via open market transaction on September 3, reducing shareholding to 2.97% from 5.15% earlier.

VST Tillers Tractors: The company has entered into an agreement with ETG (Export Trading Group), for distribution of its tractors, power tillers, power reapers and diesel engines in the Southern African markets including South Africa, Namibia, Botswana, Zimbabwe, Swaziland, and Zambia.

Starteck Finance: The company approved to sell 100% stake in subsidiary Starteck Housing Finance to Paripurna Trust and/or Matrabhav Trust for Rs 11.45 crore.

International Conveyors: The company sold 7.95% stake in Elpro International for Rs 74.14 crore.

Triveni Turbine: Due to multiple disputes for over two years amongst JV Partners, Triveni Turbine and D I Netherlands B V and Baker Hughes and its affiliates (BH Parties), General Electric Company and its affiliates (GE Parties), these parties agreed to terminate the joint venture agreement and finally resolved the multiple disputes amongst them.

Start-ups: Does one participate?

Akash Prakash


The Indian start-up scene is incredibly vibrant. Every week we hear of another unicorn being created. Transactions are now on a global scale. Witness the $3.6-billion raised by Flipkart, or the just announced $4.7-billion sale of Billdesk to Prosus. These are global scale deals and demonstrate the coming of age of the Indian start-up ecosystem. This is wealth creation and monetisation at a scale seen rarely outside Silicon Valley.

There are numerous reports highlighting how this trend will only deepen and further accelerate. India currently has 65 unicorns, most expect this number to cross 150 by 2025. The top 10 unicorns already have a market capitalisation exceeding $125 billion, this is even before they have gone public. Since 2014, start-ups have raised over $70 billion and the current value of the ecosystem exceeds $300 billion. It would not be an exaggeration to assume that today’s start-ups will be a significant chunk of market capitalisation in the coming years. The path for domestic listing has been laid. These new age disruptive business models should make up an increasing share of the economy and therefore of the markets as well. I have little doubt that following Zomato’s listing, at least 35-50 start-ups will attempt to list in the coming 18 months. This poses a dilemma for public market investors. Should they attempt to participate in these new listings (IPO or pre-IPO) or stay away?

Most valuation conscious investors find it difficult to understand the multiples being ascribed to these businesses. They struggle with the valuation metrics being used and suspect that no one really knows how to value these loss-making businesses. There is a limit to the relative valuation argument.

Seasoned investors used to paying 20 times earnings cannot understand how do you willingly pay 20 times sales? Will these companies ever make a profit? They are priced as if they will dominate their respective industries and wipe out the incumbents. Is that realistic? When you enter at these valuation multiples, even if the company delivers on all its potential, will you make money? These are legitimate concerns.

Many investors suspect that we are in bubble-like market conditions for these new age disruptive companies. The bubble is not just in India but across the world. The hype is immense and in the momentum and euphoria all types of businesses are getting positioned as technology-enabled or disruptive. A combination of extremely low interest rates, excess liquidity, lack of secular growth opportunities and the value created in technology companies globally have all combined to create the euphoria. Long duration growth assets have been bid up disproportionately.

All this is unambiguously positive for the country, the more capital raised the better, but not necessarily so for investors putting their capital at risk.

So what should public market investors do? You will have this wave of new listings coming to the market. Most priced at valuation levels you do not really understand. However, for the most part, these are very good companies. First generation entrepreneurs, backed by top venture capital and private equity and with disruptive business models. Can one just ignore them?

There are some investors taking that approach. They consider this is a bubble. They do not understand the valuations and prefer to ignore this whole space till the bubble pops. Buying these companies at the IPO is effectively playing the greater fool theory. So, they will not buy something they do not understand. Their argument is that they have seen market cycles before; this hype will die down and valuations normalise. Markets, in their view, are underestimating the incumbents and the valuation pendulum has swung way too much in favour of the challenger business models. They argue we just needs one or two of these new listings to flop and better sense will prevail. Perfectly reasonable arguments. A disciplined approach. Makes sense to emphasise caution when uncomfortable.

There are others who are taking a slightly different approach. Their point is that from all these new listings, the future blue chips of the market will emerge. The next blue chip to emerge in India will not come from an established business house or be an incumbent player. It will be a disruptive business model, funded by start-up capital. This is where the next $100-billion market capitalisation company will come from. India will leapfrog, as China has, and technology adoption cycles will keep shortening.

These new listings will eventually make up 15-20 per cent of the market capitalisation. One cannot afford to just ignore the whole pack of new listings. One has to pick their spots and the companies they think will scale. The risk is paying too high a price today, therefore they must size their positions accordingly. Be prepared for these companies to have a drawdown at some point. When their prices crack, investors must have the conviction and capital to scale up their holdings. They cannot panic at that point. These are the companies of the future. Some of them will dominate their markets and create huge value. If one focuses on the leaders and the best business models, then one is taking price risk, which can be managed through position sizing. For all anyone knows, even after correcting these companies may still trade above their IPO price, depending on the scale-up and when the correction comes.

Investors will have to decide whether they wish to participate in this wave of new listings. Not an easy decision if you are a disciplined valuation-conscious investor, worried about market cycles. The short-term odds are stacked against buying. However, longer-term investors may have a different point of view. The future leaders of India Inc are being created in front of us. Can you afford to be totally absent?

An interesting dilemma. Ultimately, each investor will have a different answer depending on tenure of capital, flexibility in investment approach and willingness to handle drawdowns. There is no easy or even right answer. Like in many other things, in investing, it just depends on your circumstances.
The writer is with Amansa Capital

ZENTEC 186.05❤️❤️

UC LOCKED🔐🔐

SHREYAS SHIPPING 348.5❤️❤️

UC LOCKED 🔒🔒

BPL 55.15❤️❤️

UC LOCKED🔐🔐

TRF 131.45❤️❤️

HIRECT 232.25❤️❤️