observations on the primary market?

Basu: Many people must have mentioned repeatedly that market was looking frothy and it’s a frothy market that attracts IPOs and overpriced IPOs but overpricing is something that one knows only with hindsight.

As long as one is able to subscribe at x price and is able to flip at a 2x price, the market is fine. There are international studies to prove that a frothy IPO market usually signifies a temporary or an intermediate market top.

But the question is who is interested in not flipping? - Because when one is buying an IPO, one doesn’t know the history of the promoter, one doesn’t have a track record to go by, the disclosures are one thing but then one doesn’t know that much and yet one is punting. Whether it is the institutional investors or it’s the retail investors everybody is punting to flip and now the flipping has stopped; some day it will start again and all will be well.