Trend has accelerated as some offerings have given   100% returns within days of listing.

Spectacular returns by the recent initial public offerings   (IPOs) on listing day are prompting a growing number   of retail investors and even high net worth investors   (HNIs) to borrow funds at a costly 16 to 17 per cent   (for two or three weeks) to bid for IPO shares.

“Several brokerage houses have back-to-back  arrangements with banks for IPO financing.The  oversubscription of recent IPOs shows that liquidity   conditions are very good,” said Rajnish Rangare,  Head-Capital Markets, Karvy.

The trend has accelerated because some recent IPOs have  offered more than 100 per cent returns within days of listing.

For instance, Motilal Oswal Financial is trading at Rs 1,716, up 108 per cent from the issue price of Rs 825 since its listing in mid-September. Maytas Infra trades at Rs 899, up 142 per cent from the issue price of Rs 370 since its listing on October 25.

The prospect of such handsome returns has resulted in recent IPOs being subscribed many times over.

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For those who follow the sensex, things are getting curiouser and curiouser. The key   30-share index has shot up by more than 50 per cent over the past year.

But since August 2007, when the sensex leapfrogged within two months from 17,000 to   20,000, the skewed nature of the rise has become evident.

Nearly 70 per cent of that 3,000-point rise was on account of the major Ambani stocks — Reliance Industries and L&T (both Mukesh Ambani companies) and Reliance Communications and Reliance Energy (Anil Ambani firms). Seventeen of the 30 sensex stocks did not go up at all or fell during this period.

So what’s going on? The searing rivalry between the two Ambani siblings has had at least one happy consequence: creating enormous public shareholder wealth.

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After the dot-com bubble burst about five years ago, corporate-sponsored venture capital funds jumped off that bandwagon in droves. Investing in startup technology companies — thought to be a quick way to beef up the corporate bottom line and look technologically hip while doing so — suddenly didn’t seem like such a smart idea.

Managements as diverse as those at Boeing and Dell junked the concept. The reasons varied, says Mark G. Heesen, president of the Arlington, Va.-based National Venture Capital Association (NVCA). At Boeing, the unit fell victim to a wider corporate restructuring. At Dell, managers just didn’t see enough of a positive impact on its bottom line. Such retrenchments caused hardly a blip on the corporate Richter scale. Unlike freestanding venture funds, some of which now manage billions of dollars in assets, corporate funds typically are small. “When a key person leaves, these funds often fall apart,” Heesen says.

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There are a plethora of IPO and while they give good    opportunities to make money they can also be dangerous if   one doesn’t exercise caution in the choice of IPOs that one   invests in.

While conventional wisdom has it that stocks should be   bought into only with the intention of holding on to them
for the long term and money can only be made if one waits
on their investment for at least an year or so. While this is
true and investors as far as possible should stick to this maxim IPOs are generally priced at a discount to their intrinsic value and can present opportunities of what is known as Listing Gains.

Here are a couple of tips that should hold you in good stead while investing in any IPO.

When you invest in an IPO you block a big amount of your cash for about a month or so. Invariably the number of shares that are allotted to you are not even half of what you have applied for. This is a very critical thing, because very often it can happen that if the shares are oversubscribed 6 or 7 times and you are investing only around Rs.25000 or Rs.30000 you might end up not even getting a single share. In such situations not only do you lose interest for that period but more important than that you lose opportunities to invest in other IPOs that might have been open in that period.

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General insurance tips:

1. Have your current insurance policy with you when requesting your insurance quotes.
2. Consider a higher insurance deductible.
3. Place all of your insurance policies with the same company to qualify for a multiple policy discount.

For car insurance quotes

1. Be sure all vehicle discounts are applied (Anti-lock brakes, Alarm system, daytime running lights, vin-etching, etc.).
2. Take a defensive driving course.
3. Be very accurate about your mileage to and from work.
4. Ask about affinity discounts.

For a homeowners insurance quotes

1. Be sure that your home is insured to its value
2. Be sure all home discounts are applied (Alarm, smoke alarms, fire extinguishers, dead bolt locks, etc.).
3. If your older home has been renovated, tell your agent.

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Studies are becoming expensive day by day. People facing hard times    to get themselves enrolled for the studies today. But as there are    problems, there are solutions also. Here, you can have the money    from the lenders not only with easy price but also, with unbelievable    benefits. You can have the student cash loans to put the cash for any    study needs.

Student cash loans are the loans cash is advanced to the students to let them meet their study ends. Student cash loan allow you to have the money to do any thing, to buy books, to pay the tuition fees, for the hostel fees or to buy books, computers and many more. Here all the expenses you can easily meet with the help of these loans.

Student cash loans are available from both the Govt. sources and the private sources. The Govt. provided loans bear all the expenses of your studies and you can also refinance these loans when you feel like going for a cheaper interest. However, you can also take the loans from sources around the loan market which are very much private in essence and they offer several benefits like cheap rates of interest attached.

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