I have invested in Graphisad IPO @111 and since from listing it got lower cercuit, now it is trading at 63, my question is that why IPO
allowed to come with such high price, initally, it was subscribe more than three times, is it something fishy when any IPO oversubscribe and on lisiting it get lower circuit,
Ans: Declining Net Cash Flow : Companies not able to generate net cash, whenever you apply for IPO you should read the Red Hearing Prospects which gives you all the details the company is raising funds for and the utilizations and also the problems. There is nothing fishy, it gave opportunity twice to book profits and get out.
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