26 October,2010 07:12 AM IST | | Bobby Anthony
Coal India IPO is already a success. The government yesterday fixed its issue price at Rs 245 per share, but some grey market operators will never quit floating all sorts of outrageous rumours.
According to market sources, the latest grey market bazaar rumour doing the rounds is, "Hey, beware!
The Coal India IPO will surely open below par. It was not even worth investing in the first place. Better to sell it. There are just too many risk factors..."
Grey market operators trade in stocks unofficially before trading or listing actually begins on the stock market. They are most active in the Ahmedabad-Surat belt, where they are known to try and manipulate the markets.
In Coal India's case, their modus operandi seems to beu00a0 to create panic in the market so that investors sell their stock to them at a price below the listing price, prior to the listing.
This will make gullible panic stricken investors sell in the hope that they will avoid making a 'loss' on listing dayu00a0 to avoid any loss only to realise on November 4 (the day of listing), that they have been duped.
"Mumbai is considered a very formal market unlike Ahmedabad. But because of the popularity of the Coal India IPO, some elements here too seem to be out to make a fast buck even before the listing," said a reputed broker.
Another phenomenon being observed is that investors have now become 'listing price conscious'. "Short-term investors are not interested in holding a listed stock for the long term.
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Instead, they want to make profits immediately after listing and then sell the stock, perhaps to invest in some other IPO. Such IPO hopping can be expected because of the slew of forthcoming IPOs," he said.
