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The IPO boom is seeing better quality issuers, but this doesn’t make IPO investing any less risky
When a bull market is in full charge, primary market action seldom lags. It is, therefore, not surprising that with India’s stock indices up 74 per cent last year, recent months have turned out to be brisk ones for IPOs (Initial Public Offers). Of the ₹31,277 crore raised by 30 new issues in FY21, 60 per cent was garnered in the latest January-March quarter. While it is certainly a good thing that companies in sectors as diverse as agro-chemicals and gaming are able to raise equity despite the Covid, three-digit over-subscription for recent offers, individuals borrowing big for IPO bids and wild swings in recent new listings point to speculative excesses building up. Such frenzy for IPOs has not boded well in the past, with the dotcom bubble of 1999-2000 and the capex bubble of 2007-08 both ending after similar episodes.
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Tax and Social Security Scammers Add to Their Bag of Tricks
The phone rings. Caller ID shows a Washington, D.C. number. You answer and an official-sounding recording says you are in trouble with the Internal Revenue Service (IRS). Or, your social security number has been used in criminal activity. You need to respond quickly.
You are on your way to losing money to a scam artist if you obey the instructions.
“Consumers reported losing more than $3.3 billion to fraud in 2020, up from $1.8 billion in 2019,” states a report from the Federal Trade Commission. “Nearly $1.2 billion of losses reported last year were due to imposter scams, while online shopping accounted for about $246 million in reported losses from consumers.”
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