50 Punjab and Sind Bank Shares

... is all I got of the 300 I applied for. In fact all of the 8 people I have spoken to have been allocated 50 shares irrespective of what they applied for. Actually no, one of them got nothing.

50 shares is nothing write home about. I got them at 114 and they closed at 128.35 on the 31st December. I think the Indian investor has unreasonable expectations when it comes to IPOs; we tend to demand that we get returns in the range of 25-40% at the very least. And that too on the day the stock lists.

As I mentioned in an earlier post about the PSB IPO, I too went in with the idea that I would get huge returns on listing, sell of immediately and encash my profit.

How much was my profit by the way? Turns out not too bad...

1. In 2 days of being listed, the stock closed 14.35 rupees higher. On 114, that means a return of around 12.5%. Not bad at all for 2 days.
2. If I consider an overall 'investment' of 36,000 rupees (for 300 shares @ 120 put in on the 14th December), I am looking at Rs 717.5 in half a month. A return of around 2%. Which translates to 48% per annum.

What am I saying? I am saying that even with the 'low' rise of the IPO stock, there still is a decent percentage to be made. However, with just 50 shares, the decent percentages do not really add up to significant money.

Was it worth it? Absolutely not.