Lead by Greedy Indian Real Estate Companies the QIP mania bit the market and Unitch, HDIL, Sobha etc have raisd money. However, fundamental Analysts on the Street have warned of serious earnings erosion [forget growth] in Q1 FY09 and the markets are in SELL-OFF mode.Many of the QIPs will be listed or are already listed and investors are facing a MTM loss.
Shankar Sharma of First Global called these QIPs as Junk,
Investors have been expressing a huge amount of concern. But still some of them are going out and buying QIPs. That’s what bothers me the most. It means that you have no conviction and you are just buying to flip. So, a lot of people participated in QIPs last week and they are expected to get the stock on Monday and they can sell after three days. So it’s down to almost a stopwatch situation that you have a stopwatch in front of you and you are saying, ‘God please let this stock market go up next week so that the junk that I bought last week can get sold at 10% higher prices.’ That’s never a very comforting thing to know, but I have seen a lot of people say that.
Good Luck to Greedy Investors 🙂