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By:

Quaid Najmi

4 January 2025 at 3:26:24 pm

Another battle between Pawars on card

Jay desires to contest election in 2029; Rohit reacts strongly Mumbai: Barely had the voting for Baramati Assembly by-election ended, a potential ‘Pawar versus Pawar’ battle in 2029 spooked the immediate contest in which Nationalist Congress Party President and Deputy Chief Minister Sunetra A. Pawar is the prime contender. The by-poll itself – compelled by the demise of former NCP chief and ex-Dy.CM Ajit A. Pawar in January – witnessed a large turnout after an emotionally-charged campaign in...

Another battle between Pawars on card

Jay desires to contest election in 2029; Rohit reacts strongly Mumbai:  Barely had the voting for Baramati Assembly by-election ended, a potential ‘Pawar versus Pawar’ battle in 2029 spooked the immediate contest in which Nationalist Congress Party President and Deputy Chief Minister Sunetra A. Pawar is the prime contender. The by-poll itself – compelled by the demise of former NCP chief and ex-Dy.CM A jit A. Pawar in January – witnessed a large turnout after an emotionally-charged campaign in which even bigwigs from the Nationalist Congress Party (SP) participated. As the voting progressed, certain remarks from both NCP (SP) MLA Rohit R. Pawar and his cousin Jay A. Pawar, son of Sunetra, indicated that the future of Baramati politics would remain family-dominated, at least till the next Assembly elections in 2029. Accompanying his mom to the polling centre, Jay claimed that pressure was mounting on him from the commoners and NCP workers urging him to contest the Baramati elections after 3 years. People’s Desire “It’s the demand from the party activists and the desire of the people that I should be a candidate in 2029. But from my heart, I wish to continue working as an ordinary party worker and serve everyone,” said Jay, hinting that he would be a reluctant contestant while sparking a mini-row. Predicting a record voter turnout and a victory margin for his mother, he appealed to the voters to support Sunetra as enthusiastically as they had supported his father, the late Ajit Pawar in the past. Quickly reacting to Jay’s utterances, Rohit also hinted at the likelihood of a face-off between family members in the next Assembly polls. “We should heed the sentiments of the party workers and the people… Their party (NCP) is different from our (NCP-SP) party,” Rohit said, making it clear that political loyalties would remain separate despite close family ties. Yugendra vs Jay In the eventuality of Jay being fielded by the NCP in 2029, Rohit suggested that another cousin, Yugendra S. Pawar – son of Shrinivas A. Pawar, and nephew of Ajit Pawar – could be a prospective rival from the NCP (SP) – making it another ‘Pawar versus Pawar’ poll duel. Baramati Assembly and Lok Sabha seats have in the past witnessed politically charged electoral battles between different family members of the Pawar clan, he reminded. Nevertheless, Rohit also admitted how the masses frowned at such intra-family contests – as in the 2024 Lok Sabha elections - which divided virtually all families in Baramati while Sunetra Pawar and her ‘nanad’ Supriya Sule slugged it out at the hustings. “It is not the desire of the people to see another ‘Pawar versus Pawar’ fight… There are certain political forces opposed to the Pawar Family which seem keen to foment such divisive contests and weaken its influence here,” Rohit declared. Keeping the door ajar for a reconciliation between the NCP(SP)-NCP, he said it would be opposed, but the views of the workers, elected representatives and family members tend to complicate the issues, as ‘withdrawing from power’ is not an easy option – making it clear that both the parties would function independently at least for the present. Shrinivas Pawar reprimands cousins The statements by the cousins Jay and Rohit evoked sharp response from Shrinivas A. Pawar who pulled them up for raising decisive yet divisive futuristic issues during the polling today. “What was the need to say all this now? Today is important and everyone has come out for ‘Dada’ (Ajit A. Pawar)… We must all remain united,” emphasised Shrinivas A. Pawar. Chiding the younger cousin-siblings, Shrinivas said that “if you are aware that people don’t prefer such intra-family contests, why don’t you sit together and resolve these issues”. Baramati, Rahuri see 50 pc voting Bypoll to the Baramati assembly seat in Maharashtra's Pune district, where Deputy Chief Minister and NCP president Sunetra Pawar was in the fray, recorded a voter turnout of around 50 per cent till 5 pm on Thursday, officials said. The voting percentage in Rahuri assembly constituency in Ahilyanagar district, which also saw a bypoll, was 50.74 per cent, they said. Voting, which began at 7 am, concluded at 6 pm. The Rahuri assembly seat became vacant after BJP MLA Shivaji Kardile's death in October last year. His son Akshay Kardile was in the fray as a BJP candidate from the seat, and was pitted against NCP (SP) candidate Govind Mokate and Vanchit Bahujan Aghadi's Santosh Chalke.

IPO Investment Strategy

Updated: Nov 12, 2024

IPO Investment Strategy

Investors have amassed significant wealth through investing in Initial Public Offerings (IPOs) in India. In 2024, 70 IPOs were launched, with 56 of them delivering positive gains on their initial listing. Among these, Vibhor Steel Tubes, which began accepting subscriptions in February 2024, achieved the highest listing gain at 195 per cent. BLS E-services and Bajaj Housing Finance were the next two IPOs to see substantial gains, with returns of 171 per cent and 135 per cent, respectively. Investors can approach IPOs from two angles: focusing on listing gains or on long-term investment. Let's explore the key factors that contribute to a successful IPO investment strategy.


For Listing Gains

1. Consider the size of the issue. Small IPOs with issues below 2000 crores tend to offer better listing gains.


2. Monitor the Grey Market Premium (GMP). GMP should consistently exceed 30% before the IPO.


3. GMP should either remain stable or increase, and it should not decrease leading up to the IPO's closing date.


4. Even if the goal is to focus on listing gains, it's important to review the company's financials. Financial indicators such as profit growth, Return on Equity, and Price to Earnings ratio are crucial to avoid investing in low-quality IPOs.


5. If the company shows long-term growth potential, it's advisable to hold off on selling shares.


For Long-Term Investment

1. Established companies like LIC, Zomato, Ola Electric, and Hyundai Motors have not met market expectations, often due to the size of their initial offerings. If the issue size exceeds $20 million, it's advisable to consider investing for long-term gains rather than just listing gains.


2. The valuation of the company is critical for long-term wealth creation through IPOs. The company should be profitable, and its price to earnings ratio should be below 25.


3. Occasionally, companies like Zomato, Swiggy, and Ola, which are currently unprofitable, but they have a potential for significant future growth. In such cases, it's important to be mentally prepared for a multi-year period of time correction. It's possible that returns may not be realized until the company becomes profitable.


4. Shares in this category are susceptible to significant price drops, potentially by 50 per cent to 70 per cent from their initial offering price. However, it's beneficial to buy these shares during these price drops. For instance, Zomato, listed at 116 rupees in July 2021, fell to 41 rupees by July 2022. Following this decline, the stock began to rise, currently trading at 248 rupees.


5. If a company is fundamentally strong but its valuation is high, it may consolidate over several years, requiring patience. An example is CDSL, which was listed in 2017, didn't deliver any returns for the next three years. However, from 2020 to 2024, the stock appreciated by over 10 times.


(The author has spoken to experts in the field for writing this piece.)

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