Doubt regarding IPO Listing Gains
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Hi dimers,
It may be a silly question, but suppose a person named 'A' applied in an IPO at 100 Rs cutoff price, then after 3 days company gets listed at 100% premium means current market price is 200 Rs. A got 100% returns and he sold all the shares.
Now my doubt is within 3 days, where did this 100 rs difference come from ? "Who paid for the profit that A got"?
It may be a silly question, but suppose a person named 'A' applied in an IPO at 100 Rs cutoff price, then after 3 days company gets listed at 100% premium means current market price is 200 Rs. A got 100% returns and he sold all the shares.
Now my doubt is within 3 days, where did this 100 rs difference come from ? "Who paid for the profit that A got"?
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https://www.desidime.com/comments/permalink/10028230
Seems interesting 🤠🤠
Following 🙂🙂
https://www.desidime.com/comments/permalink/10028322
It came from the people who think A s price (valuation) is more than what you or the IPO setters thought. Stock market works on perception, not on actual value.
https://www.desidime.com/comments/permalink/10028365
it came from the person who paid 200rs man, profit only comes when there is a transaction
https://www.desidime.com/comments/permalink/10028472
This is the right answer. The ₹100 extra came from the person who bought at ₹200 a share.
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It came from the people who think A s price (valuation) is more than what you or the IPO setters thought. Stock market works on perception, not on actual value.
The buyer who purchased your share..