Emaar MGF IPO come-back: may relaunch IPO

Emaar MGF, which has cancelled its IPO due to high market volatility and poor subscription, is all set to come back to the stock markets once again.
Hardly 1.5 months, and the stock market is looking good again to the IPO hungry companies. Don’t we see any randomness here? Can someone predict any such thing?

And why shouldn’t the companies come to the market again and again, failure after failure? Stupid investors are there to make the companies rich. Whether it is the Zero Watt Reliance Power Company having a devastating listing and finally going for a Bonus Share plan, or whether it is the Wockhardt hospitals and other IPO including Emaar MGF cancelling the IPO’s at the last moment. All these things were led by investor madness. The GREED to earn a quick buck with hardly any effort makes the investors take the IPO route. Hardly anyone knows how to value a company. My friend is applying, so should I. My relative is taking a house loan, so should I. My junior team-mate in office comes in a mid-size luxury car, so should I take a car loan. No one cares about what is the actual cost and risk involved.

Very recently, the Reliance Petrol Pumps have been shut down. The reason – they were not able to offer competitive prices as compared to the government backed oil companies, which enjoy the subsidy which can be as high as 14 Rs for petrol and 8 Rs per liter of diesel. Investors blindly trust Reliance. Didn’t the Reliance Managers see this risk while planning more than 1400 petrol pump outlets in the country? Worst is the case for the dealers who have taken the dealership. They have given their lands, built the petrol pumps, invested heavily in the name of Reliance. All ending up in a big loss.

Even Reliance Fresh is running is losses. Probably that’s why they are planning to come out with the Reliance Fresh IPO. Probably, they know that investors are greedy fools- they will pay anything you demand.

I don’t know what has changed for Emaar MGF in less than 1.5 months. Neither I see any changes in valuations of the company, nor do I see any stability in the market. It will be foolish to predict anything. Yet, the nes is that Emaar MGF IPO may be relaunced.

Try your luck, see what this random stock market has for you!

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