IPO Investment Updates

Oberoi Realty IPO is closing today. While the issue looks expensive & grey
market premium isn't great, we are still investing for one strong reason.
Being in Mumbai, I am familiar with the kind of reputation this builder
has. I found their houses to be of good quality. In fact in 2005 when we
bought our Rustomjee Ozone house, we were considering one of the Oberoi
Property nearby. Finally went ahead with Rustomjee for different reasons.

We were allotted Eros & Career Point stocks. Have sold some & will
liquidate the rest soon.

Now waiting for Wabag allotment. There is a controversy regarding numbers Wabag published in the DRHP and Wabag has given the option to retail investors to withdraw their application. I would stay put. Allotment is getting delayed by few days.

It was difficult to make decision across so many IPOs. I was highly tempted to avoid investing in say Wabag which we knew would be highly subscribed and instead invest in say Orient Green, Ramky or Electro Steel, trying to use Capital judiciously and go for small returns but more assured than investing in IPOs good but difficult to get allotment. Somehow, I held on to my core thinking and invested only for strong fundamentals. Eros has bit disappointed but still 8% on Issue price. Wabag should still give a decent return. Lets see.

Regards,
Rohit

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