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HDB Financial Services (HDBFS), the NBFC arm of HDFC Bank, has seen dramatic swings in its unlisted (pre IPO) share price that have hurt early investors: 📉 What happened with pre IPO investors? 1. Surging unlisted prices Ahead of the IPO, HDBFS shares traded in the grey/unlisted market at ₹1,200–₹1,525, roughly double their value from a year ago (~₹650–₹700)  2. IPO pricing is much lower The official IPO price band is set at ₹700–₹740, significantly below these unlisted market highs  3. Pre IPO buyers locked in losses Investors who paid ~₹1,200–₹1,500 in the private market are facing 40–60% unrealised losses, unless the listed share price rebounds above their purchase price. Why such a big discrepancy? • Speculative premium in the unlisted market: Investors often overpay based on hype and peer comparisons rather than fundamentals, leading to inflated valuations  • IPO valuation grounded in fundamentals: Regulators and investment bankers set the IPO price based on due diligence, comparable peer valuations, and financial performance—resulting in a more conservative band (~₹700–₹740). Broader investor insight Community opinions echo caution. One Reddit user noted: “Probably because the overall market is down by 10–12%. And this is the risk with unlisted shares. Unless you can evaluate the company urself, better to stay away from them.”  This underscores that pre IPO investments carry higher risk and less transparency than listed market purchases. ✅ Bottom line • If you bought between ₹1,200–₹1,525 pre IPO, you’re currently looking at substantial unrealised losses since the IPO price is much lower. • For new investors, buying via the IPO at ₹700–₹740 might be a safer bet—though the grey market can still impact short-term listing performance (a ~11% premium is expected) Would you like to Discuss Investment options Connect with me in 7810079946🤝 #sip #mutualfund #sathishspeaks #ipo #hdbservices #financialfreedom

But how do you reach High Availability? Here are 5 basic concepts you need to answer that question. Think of High Availability as a safety net. Like a safety net catches you if you fall, High Availability catches your system if it encounters issues.  This way, your services keep working smoothly even if some parts break down. 𝟭. 𝗥𝗲𝗱𝘂𝗻𝗱𝗮𝗻𝗰𝘆 Having multiple instances running or ready to take over if the primary ones fail.  You can have:  • Multiple Server Instances • Geographic Redundancy The idea is to cut single points of failure and ensure continuous operation. 𝟮. 𝗟𝗼𝗮𝗱 𝗕𝗮𝗹𝗮𝗻𝗰𝗶𝗻𝗴 A Load balancer distributes incoming traffic across multiple instances or servers. This not only prevents overwhelming a single instance but also improves your performance and resilience. You can use various algorithms to distribute traffic: • Round-robin • Least connections • Weighted response time 𝟯. 𝗗𝗮𝘁𝗮 𝗥𝗲𝗱𝘂𝗻𝗱𝗮𝗻𝗰𝘆 Creating copies of your data on different servers or locations ensures that another can step in if one copy becomes unavailable.  • Backup Solutions: Regular backups allow you to recover from catastrophic data loss. • Replication: replicating data across different databases helps avoid losing data when a single database fails. 𝟰. 𝗙𝗮𝗶𝗹𝗼𝘃𝗲𝗿 𝗠𝗲𝗰𝗵𝗮𝗻𝗶𝘀𝗺𝘀 Failover is like having a backup plan.  If a main component fails, the system switches to a backup component, minimizing disruptions. This can include switching between servers, data centers, or even entire regions. Failover guarantees minimal service disruption by immediately replacing faulty components. 𝟱. 𝗗𝗶𝘀𝘁𝗿𝗶𝗯𝘂𝘁𝗲𝗱 𝗔𝗿𝗰𝗵𝗶𝘁𝗲𝗰𝘁𝘂𝗿𝗲 Break down your system into smaller, interconnected parts. • Microservices: Instead of a monolith, you split into microservices, each handling distinct responsibilities. A failure in one service doesn’t bring down the entire system. • Decentralized Data Storage: Store data across many nodes to prevent data inaccessibility. If one part encounters issues, it doesn't bring down the entire system, allowing other parts to function. 𝗧𝗟;𝗗𝗥 Redundancy ensures backups for every critical component. Load Balancing distributes traffic to prevent overloading. Data Redundancy keeps critical data accessible even when failures occur. Failover Mechanisms automatically switch operations to standby units when a failure happens. Distributed Architecture localizes failures, preventing a total system collapse. Stay Available and add more!

𝐒𝐡𝐨𝐮𝐥𝐝 𝐲𝐨𝐮 𝐢𝐧𝐯𝐞𝐬𝐭 𝐢𝐧 𝐮𝐧𝐥𝐢𝐬𝐭𝐞𝐝 𝐬𝐭𝐨𝐜𝐤𝐬? Read this before chasing the next ‘pre-IPO’ jackpot. Lately, 𝐈 𝐬𝐞𝐞 𝐮𝐧𝐥𝐢𝐬𝐭𝐞𝐝 𝐬𝐡𝐚𝐫𝐞𝐬 𝐛𝐞𝐢𝐧𝐠 𝐬𝐨𝐥𝐝 𝐥𝐢𝐤𝐞 𝐡𝐨𝐭 𝐬𝐚𝐦𝐨𝐬𝐚𝐬. Every broker is pushing it. Friends are forwarding “pre-IPO” deals. All backed by one belief: “𝐈𝐏𝐎 𝐦𝐞𝐢𝐧 𝐭𝐨 𝐩𝐚𝐢𝐬𝐚 𝐛𝐚𝐧𝐭𝐚 𝐡𝐢 𝐡𝐚𝐢” But reality check? ✅   𝐇𝐃𝐁 𝐅𝐢𝐧𝐚𝐧𝐜𝐢𝐚𝐥 𝐰𝐚𝐬 𝐛𝐞𝐢𝐧𝐠 𝐬𝐨𝐥𝐝 𝐚𝐭 ₹1200-₹1500 in the unlisted market. It is 𝐧𝐨𝐰 𝐭𝐫𝐚𝐝𝐢𝐧𝐠 𝐚𝐭 𝐚𝐫𝐨𝐮𝐧𝐝 ₹830. Nearly everyone who entered in the 𝐩𝐚𝐬𝐭 18 𝐦𝐨𝐧𝐭𝐡𝐬 𝐢𝐬 𝐢𝐧 𝐥𝐨𝐬𝐬. Post-HDB, prices of 𝐍𝐒𝐄 𝐚𝐧𝐝 𝐍𝐒𝐃𝐋 𝐬𝐡𝐚𝐫𝐞𝐬 𝐚𝐥𝐬𝐨 𝐝𝐫𝐨𝐩𝐩𝐞𝐝 𝐛𝐲 15-20%. Here’s why unlisted investing isn’t as simple as it looks: ❌ 𝐍𝐨 𝐫𝐞𝐬𝐞𝐚𝐫𝐜𝐡 Most buyers rely on a 1-pager from brokers. No proper financials, no business overview. Just “looks good, will list soon.” ❌ 𝐍𝐨 𝐯𝐚𝐥𝐮𝐚𝐭𝐢𝐨𝐧 𝐜𝐡𝐞𝐜𝐤 Everyone talks price. No one checks at what valuation they're buying. No PE, no PB, no listed peer comparison. ❌ 𝐍𝐨 𝐞𝐚𝐬𝐲 𝐞𝐱𝐢𝐭 Many companies keep delaying IPOs. There's no timeline. If you want to sell, you may have to sell at a loss due to low liquidity. ❌ 𝐍𝐨 𝐬𝐚𝐟𝐞𝐭𝐲 𝐧𝐞𝐭 In listed stocks, exchanges protect you from counterparty defaults. In unlisted trades, there’s no such protection. If the other party disappears, there’s little you can do. ❌ 𝐋𝐨𝐜𝐤-𝐢𝐧 𝐩𝐞𝐫𝐢𝐨𝐝 If you buy shares within 6 months of IPO allotment, SEBI restricts you from selling them for 6 months after listing. Most people are unaware of this.   𝐀𝐬𝐤 𝐭𝐡𝐢𝐬 𝐛𝐞𝐟𝐨𝐫𝐞 𝐛𝐮𝐲𝐢𝐧𝐠: 𝐼𝑓 𝑡ℎ𝑒 𝑠𝑡𝑜𝑐𝑘 ℎ𝑎𝑠 𝑢𝑛𝑙𝑖𝑚𝑖𝑡𝑒𝑑 𝑢𝑝𝑠𝑖𝑑𝑒, 𝑤ℎ𝑦 𝑖𝑠 𝑠𝑜𝑚𝑒𝑜𝑛𝑒 𝑠𝑒𝑙𝑙𝑖𝑛𝑔 𝑖𝑡 𝑡𝑜 𝑦𝑜𝑢?   Unlisted investing isn’t bad. 𝐁𝐮𝐭 𝐢𝐭’𝐬 𝐧𝐨𝐭 𝐚𝐬 𝐞𝐚𝐬𝐲 𝐚𝐬 𝐢𝐭 𝐥𝐨𝐨𝐤𝐬. 𝐃𝐨 𝐲𝐨𝐮𝐫 𝐡𝐨𝐦𝐞𝐰𝐨𝐫𝐤. 𝐊𝐧𝐨𝐰 𝐲𝐨𝐮𝐫 𝐫𝐢𝐬𝐤.   𝘍𝘖𝘔𝘖 𝘪𝘴𝘯’𝘵 𝘢 𝘴𝘵𝘳𝘢𝘵𝘦𝘨𝘺. 𝘐𝘵’𝘴 𝘰𝘧𝘵𝘦𝘯 𝘢 𝘴𝘩𝘰𝘳𝘵𝘤𝘶𝘵 𝘵𝘰 𝘳𝘦𝘨𝘳𝘦𝘵. For more insights follow Akashdeep Grover

THINK BEFORE BUYING NSE UNLISTED ( CMP - 2300 Rs ) SHARES - Before jumping into the hype of NSE's upcoming IPO, here are some important facts and insights every retail investor should carefully consider: 1. Sharp Rise in Retail Shareholding – Is It a Signal ? Over the last 6 years, the share of retail investors in NSE has grown significantly: Mar 2019: 46.14% ( 119 investors ) Mar 2020: 49.07% ( 308 investors ) Mar 2021: 52.33% ( 865 investors ) Mar 2022: 55.34% ( 4,290 investors ) Mar 2023: 55% ( 5,097 investors ) Mar 2024: 56.20% ( 11,900 investors ) Mar 2025: 64.02% ( 1,00,000 investors ) This reflects a massive increase in retail participation, especially in the last 2 years. Big Investors Are Gradually Exiting While retail ownership is rising, large institutional or early investors have been reducing their stakes — from 54% to 36% over the same period. This may indicate profit booking by early backers as valuations rise. Valuations Are Already High in the Unlisted Market - The stock price of NSE has already appreciated significantly in the unlisted space over the last few years. Most of the growth story may already be priced in — leaving limited upside at current levels. Entering now may expose investors to valuation risk. 6-Month Lock-in After Listing - As per SEBI rules, shares bought in the unlisted market before an IPO are subject to a mandatory 6-month lock-in from the date of listing. During this time, even if the stock corrects or underperforms, you cannot sell. Avoid FOMO, Take an Informed Approach - The fear of missing out ( FOMO ) is causing many to buy blindly. A better strategy: Wait for the IPO, observe how the stock performs post-listing, and analyze 2-3 quarters of financial results. This will give a clearer picture of earnings stability, valuation comfort, and overall market sentiment. Conclusion - Don’t chase the hype. Patience often pays better than premature entry. Wait, watch, and invest wisely — based on data, not emotions. #Dydd #NSE #nseindia #Unlisted

The IPO Grey Market: Are You Investing, or Just Placing a Bet? A brand new IPO is around the corner, and the chatter begins. "The Grey Market Premium (GMP) is 40%!" It sounds like a sure thing; a guaranteed listing day win. But what if I told you that relying on the GMP is like guessing the direction of the wind, while sitting in a closed room with no windows. I’ll be clear. The grey market is not an investment market. It is an unofficial, unregulated arena for speculation. The "premium" is nothing more than collective sentiment, with no real scientific basis for price determination. Before you're tempted by that GMP, consider the hard data: A Coin Flip at Best: In 2024, according to multiple available analyses, 40% of IPOs ended up trading below their issue price. In the first half of 2025, that number has shot up to 67%. The odds are not as favorable as the buzz suggests. Mainboard Malaise: Even if we exclude smaller SME IPOs, nearly half of all mainboard listings since the start of 2022 are trading below their offer price. The risks go far beyond listing losses. Because the market for Pre IPO and unlisted shares is unregulated, you face: Counterparty Risk: The entire transaction is based on "mutual trust". There's a very real danger of non-delivery of shares after you've paid. Opaque Pricing: The price you're quoted might be completely speculative and momentum-driven, as there is no transparency. No Recourse: These trades are hard to justify in a dispute. There is no formal regulatory body to protect you. Liquidity Risk: Delays in listing and or cancellation of plans of listing Lack of Information : No research, no written analyst reports The strategic question for any serious investor is this: Does a short-term, high-risk gamble in an unregulated market align with your long-term goal of building sustainable wealth? True investing is the disciplined ownership of quality assets aligned with your wealth goals. The grey market, for the most part, is just a bet on crowd psychology. Knowing the difference can save you a lot of unnecessary heartburn. I shared my views on this issue in detail on ETNOW as well. https://lnkd.in/gQZ_Pw9m #IPO #GreyMarket #StockMarket

SEBI issues consultation paper to review SME IPO and disclosure norms. Some key points are as follows 1. Minimum application size shall be increased from one lakh rupees per application to two lakh rupees per application 2. Increase the requirement of minimum allottees from 50 to 200 3. OFS in SME IPO may be restricted to 20% of the issue size. Further, for selling shareholders, shares offered for sale in SME IPO shall not exceed more than 20% of their pre-issue shareholding on fully diluted basis. 4. Requirement of appointment of Monitoring Agency shall be made applicable for issuer company if fresh issue size is higher than 20 crore. 5. In cases where there is no requirement of appointment of Monitoring Agency, there should be a mandatory requirement of Statutory auditor’s certificate for utilization of money raised through the public issue, to be submitted to Exchange while filing the half yearly financial statement, till the issue proceeds are fully utilized. These certificates should also be submitted to the Audit Committee and Board of the Issuer Company. 6. It is proposed that lock-in on minimum promoter contribution in SME IPO shall be increased to 5 years. Additionally, lock-in on promoters’ holding held in excess of MPC shall be released in phased manner i.e. lock-in for 50 promoters’ holding in excess of MPC shall be released after 1 year and lock-in for remaining 50% promoters’ holding in excess of MPC shall be released after 2 years. 7. It is proposed that GCP amount in SME IPO may be restricted to 10% of issue size or Rs. 10 crore (whichever is lower). 8. Removal of option for raising funds for unidentified target / acquisition. 9. In case of conversion of Company from Limited Liability Partnership or from Partnership firm, the Company shall be in existence for at least period of Two full Financial Year before filing of DRHP. 10. Proposal for 2 year cooling off period before SME IPO for a Company, if there is a change of promoter(s) or new promoter(s) have come after acquisition of 50% or more shareholding prior to filing of draft offer document. 11. Minimum Issue Size – more than Rs 10 crore  12. Repayment of Loan of Promoter, Promoter Group or any related party, from the issue proceeds, whether directly or indirectly should not be considered as object.  13. No outstanding convertible securities before IPO.

SEBI approves regulations for the SME IPO framework, implementing several modifications concerning SME IPOs. Key amendments are as follows: 1. Profit Requirement: SMEs must demonstrate an operating profit of Rs. 1 crore in any two out of the last three financial years at the time of filing the draft red herring prospectus (DRHP) for an IPO. 2. Offer for Sale (OFS) Restriction: In SME IPOs, the offer for sale by selling shareholders is limited to 20% of the total issue size, and selling shareholders cannot offload more than 50% of their holdings. 3. Promoters’ Lock-in: Promoters’ holdings exceeding the minimum promoter contribution (MPC) are locked in a phased manner: 50% release after one year and the remaining 50% after two years. 4. Non-Institutional Investors (NIIs) Allocation:The allocation method for NIIs in SME IPOs will now align with that of main board IPOs. 5. General Corporate Purpose (GCP) Capping:The amount allocated for GCP in SME IPOs is capped at 15% of the funds being raised or Rs. 10 crores, whichever is lower. 6. Loan Repayment Restrictions:SME issues cannot use proceeds for repaying loans from the promoter, promoter group, or related parties. 7. Public Comments on DRHP:The DRHP of SME IPOs filed with stock exchanges must be available for public comment for 21 days. 8. Related Party Transaction (RPT) norms to be applicable to listed SMEs: RPT considered material if it is 10% of annual consolidated turnover or Rs 50 cr, whichever is lower These changes aim to create a robust framework for SMEs to access capital markets efficiently while ensuring transparency and protecting investor interests.

SEBI's New SME IPO Rules: A Much-Needed Reality Check? The Indian IPO market, particularly the SME segment, has been on fire lately. While this presents exciting opportunities, it also raises concerns about potential pitfalls for investors caught up in the FOMO (fear of missing out). SEBI's latest move to tighten SME IPO regulations is a welcome step towards addressing these concerns. Here's what's changing: * Higher Profitability Bar: Companies need to demonstrate consistent profitability to qualify for an IPO, reducing the chances of unsustainable businesses going public. * Curbing Promoter Exits: Limiting promoter OFS to 20% prevents early exits and ensures promoters retain skin in the game, aligning their interests with long-term investor value. * Preventing "Quick Flip" IPOs: Restrictions on loan repayments and general corporate purposes curb the potential for misuse of IPO proceeds. My view: These changes are crucial for fostering a healthy and sustainable SME IPO market. While they may initially dampen the IPO frenzy, they ultimately protect investors and promote transparency. It's a clear signal that SEBI is prioritizing long-term market health over short-term exuberance. Be cautious- a reality check: Analysis of recent SME IPO data reveals that a significant proportion (37.02%) are currently trading below their issue price. On the flip side, a small but significant percentage (5.08%) have delivered exceptional returns, exceeding 1000% growth! Beware and don't get swept up in the hype! Love to hear your thoughts on these new regulations? Do you think they strike the right balance between encouraging growth and protecting investors? #SEBI #SMEIPO #IPORegulations #InvestorProtection #CorporateGovernance #CapitalMarkets #India Harish Mehta Vijay Thadani

My learnings from 110+ transactions and well over 300 million AuM: The pre-IPO secondary market is not for beginners. These are the 3 most common pitfalls: 1️⃣ 𝗧𝗵𝗲 𝗰𝗼𝘂𝗻𝘁𝗲𝗿𝗽𝗮𝗿𝘁𝘆 𝗶𝘀 𝗯𝘂𝗹𝗹𝘀𝗵𝗶𝘁𝘁𝗶𝗻𝗴 I cannot tell you how many times this has happened. ➤ They offer direct shares or a stake in a first-layer SPV. We check against the latest company cap table, and they’re not even on it. ➤ The counterparty is “friends of Elon”.  Everyone seems to be that lately, but hardly any of these transactions turn out as touted. ➤ The share sale is pre-approved (so it is not blocked by the company or to be ROFR’d) And yet, it is nonsense based on our experience with the companies and market insights. In other words, whatever they’re selling, it’s not what they claim and isn’t worth the money. Many inexperienced or nonprofessional investors don’t know this, and they get ripped off. ___ 2️⃣ 𝗗𝗲𝗮𝗹𝘀 𝘄𝗶𝘁𝗵 𝗵𝗶𝗱𝗱𝗲𝗻 𝘀𝘁𝗿𝗶𝗻𝗴𝘀 𝗮𝘁𝘁𝗮𝗰𝗵𝗲𝗱 ➤ The markups and fee details: Many unsophisticated investors don’t understand where these private companies are trading. Some black sheep add colossal markup. Others are not clear how their fees are precisely calculated. The big red flag: lack of transparency. If the deal manager pushes you to sign without providing information, leave. ___ 3️⃣ 𝗙𝗢𝗠𝗢 𝗱𝗲𝗮𝗹𝘀 I see this rhetoric frequently: ➤ Playing the FOMO game: Commit your money, but don’t ask a question, or you are out. Credible counterparties have no problem in providing transparency about the timeline and structures. ➤ A manager claiming this is your last chance These companies grow fast, and so do secondary markets. Still, don’t fall for the FOMO game. My advice: the secondary market is full of activity. You will have another chance. Being hasty in this space is never worth it. ___ Pitfalls like these are why I always recommend that investors work with a trusted partner in this space. Regulated counterparties with clear policies and procedures ensure you don’t get scammed. We can be that partner if you’d like. Find out more about what we do here: https://lnkd.in/eMbreD75 We are Europe’s go-to partner for pre-IPO investing for 100+ banks, wealth managers, family offices, and forward-thinking institutional investors. 

𝗛𝗗𝗕 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗮𝗹 𝗜𝗣𝗢: 𝗔 𝗥𝗲𝗮𝗹𝗶𝘁𝘆 𝗖𝗵𝗲𝗰𝗸 𝗳𝗼𝗿 𝗨𝗻𝗹𝗶𝘀𝘁𝗲𝗱 𝗠𝗮𝗿𝗸𝗲𝘁 𝗜𝗻𝘃𝗲𝘀𝘁𝗼𝗿𝘀 The HDB Financial IPO has delivered another setback to investors active in the unlisted market. The IPO is priced at ₹740 per share, 42% lower than its last unlisted market price of ₹1,275 just 15 days before the announcement. For added surprise, in September 2024, HDB Financial shares had touched ₹1,525 in the unlisted market, more than double the IPO price. To make matters worse, pre-IPO investors are subject to a 6-month lock-in. Even if the stock climbs back to their purchase price post-listing, they will be unable to exit during this period. In recent years, many retail investors have been chasing the novelty of owning shares before an IPO (NSE, Oyo, Swiggy, etc.). However, this enthusiasm often overlooks the significant risks involved: 𝙆𝙚𝙮 𝙍𝙞𝙨𝙠𝙨 𝙤𝙛 𝙄𝙣𝙫𝙚𝙨𝙩𝙞𝙣𝙜 𝙞𝙣 𝙐𝙣𝙡𝙞𝙨𝙩𝙚𝙙 𝙎𝙝𝙖𝙧𝙚𝙨 • Lack of Liquidity: Selling shares before listing is difficult and uncertain. • Lack of Transparency: Limited disclosures on financials, IPO timing, and pricing. • Valuation Uncertainty: Pre-IPO valuations can be speculative and disconnected from fundamentals. • Regulatory Gaps: – In Dec 2024, SEBI issued a cautionary note against unauthorised platforms and disclosure risks. – In 2023, Reliance Retail bought back shares at ₹1,362 while they were trading at ₹2,700–₹3,400 in the unlisted market—legally valid, but a rude shock for investors. • Lock-In Period: SEBI mandates a 6-month lock-in for pre-IPO investors, limiting exit options post-listing. 𝘽𝙤𝙩𝙩𝙤𝙢 𝙇𝙞𝙣𝙚: Retail investors should exercise extreme caution when entering the unlisted space. The perceived upside rarely compensates for the risks, illiquidity, and lack of control. In most cases, it’s simply not worth it.