At the onset let me congratulate the investment bankers, promoters and PE funds for launching a successful record breaking IPO of PayTm.
The PayTm IPO has broken many records, largest IPO launched in India, the largest loss on listing day etc. But it has the potential to break many more records and be written in the history books of Indian capital markets.
Before I describe PayTm's potential let's understand the investor segments of Indian capital markets.
There are four major investor groups.
1. DII or domestic institutional investors and mutual funds.
2. FII or Foreign institutional investors.
3. HNI or high net worth investors
and the largest but least respected, taken for granted, disorganized group
4. GII or Gullable Indian investor. The common man, Aam Aadmi.
(According to www.yourdictionary.com
Gullable meaning
The definition of gullable is an alternative spelling for gullible, and is easily tricked or fooled. A person who falls for every prank and trick is an example of someone who would be described as gullable. adjective.)The very existence of the first two categories (DII/ FII) depends on the fourth category (GII) yet the common man is always a Gullable group meant to be exploited and offloaded with overpriced shares.
It's high time that the fourth group understands its role and importance in the Indian capital markets and Awakens.
You the GIIs, the common man, the Aam Aadmi, including myself is also recognized by the derogatory term GFI (Gand Fatu Investor) it's high time the nomenclature be changed. Fatu be replaced by Fadu.
The very existence of Startups, PE funds, DIIs, FIIs is dependent on the "India Growth Story." And that story exists till there is money in the wallets of Indian Aam Aadmi the GFI. The day the GFI turns kangal there will be no India Growth & no Story
Yet how come that every time its the GIIs that are taken for a ride.
The IPO of PayTm is a wake up call my dear colleagues of the GFI group.
Angraz chala gaya but ibankers, PE Funds chode gaye. East India company still exists but in a different form. The only qualification of today's PE funds seems to be the ability to find a greater fool to offload rosy dreams at exorbitant prices
We are a nation of Gandhi, our ethos is infused with Gandhian thoughts from our childhood. Even today we carry 'Gandhi' if not in our hearts at least in our wallets. It's high time we protect our ' Gandhi'. Otherwise the other investor groups will keep on showing you rosy dreams which will turn into nightmares when reality strikes. Not only your wallets but the entire future of India, its growth story, it's startups are at risk.
It's time the greedy promoters, merchants of grandeurs proclamation and dreams, & the facilitators of this promoters the ibankers are shown that the Gullable Indian investor has woken. You call him GFI..Gand Fatu investor, but when he rises he will make you respect him as Gand Fadu investors who ripped the ass off greedy promoters, PE funds and I bankers.
Is it possible? Can it happen? What can the disorganized, decentralized Indian investor do?
If the Viet Cong could make the mighty US with all its resources to withdraw from Vietnam, if India could get freedom from East India company. Why should this utopian dream be not a reality.
Mahatma Gandhi gave us the idea of civil disobedience
It's time we revoke Gandhi to safeguard the Gandhi in our wallets and launch a "Social disobedience movement".
1. Stop all activities on PayTM
2. Uninstall PayTM
3. Don't give a exit route to the anchor investors and PE Funds, who are going to offload their shares after the lockin period is over, on you GIIs after posting rosy dreams about the PayTM wallet. Your wallet will have nightmares if you act on this falling knife.
4. Entrepreneurship is not about boisterous dreams and megalomaniac personalities. It's about execution and making your financers partners in your journey and profits.
Demand that all personal shares of Vijay Shekhar Sharma be blocked confiscated and distributed equitably within all public shareholders and he be removed from any post of responsibility from PayTM.
If regulations of today do not permit this. Do not stop your non cooperation till regulators are forced to change the regulation.
It's now or never.
If we don't arise now there will be more Harshad's, Ketan's, Vijay's and Sharma's who will show you dreams and play with your money and India's future.
Jago investors Jago.
To quote Swami Vivekananda" Arise, awake, stop not till the goal is reached".
"Soch kar Samaj kar Invest kar" let this be the slogan not meant for the "Aam Admi" the GFI but for the FII, PE, I banker cartel, because the Indian investor has awakened.
Well thought and well written. Dr Parag Shah though a medical professional has an in depth knowledge of the loopholes in the Capital Market.Paytm is incurring massive losses year after year. It owns nothing worth mentioning. Yet price band of the IPO was terribly high. Retail investors should study the company in particular and general economic atmosphere before investing.
ReplyDeleteKudos to Dr Parag Shah for such a write up
Thanks for your comments
DeleteSorry to say but most of losses were borne by fii during qib.. retail investors money is just around 800 cores..the real losers are fiis
ReplyDeleteYou are partially right. Right now FIIs/ Anchor investors have mark to market loss in there books, because they cant sell till the lockin mandated by SEBI is over. Yes once the lockin is over they will definitely sell and book losses offloading shares to GIIs.
DeleteFIIs is smart money. They have resources and opportunities to access the companies book and find justifiable valuations. Its the role of promoters, who if not greedy, leave something on the table for the new investors and not milk them dry. But does the smart money, today, does it work judiciously? Its the simple calculation of every one wanting the biggest piece of cake expecting a greater fool on the other side of the table. Valuations, ethics, profitability TO HELL with it. Make marry when the sun shines and the markets booms. Such smart money deserves a harsher punishment to safe guard the future of Indian capital markets.
Salute to Dr. Parag Shah for such a researched write up. He is the man to watch and follow....bundle of talents...A well known surgeon....Award winning scaler of top mountains of the world and now an economist....a man who deserves a National Award...for being the role model for youths in India
ReplyDeleteU sound like u have gambled and lost ur fortune.
ReplyDeleteU should write about investors to be aware and boycott such IPOs rather than taking retrospective actions
DeleteYou are right dear but before that suggestion you should read my past writings too. I assure you you would not have that complain. Not catching the falling knife, Detrimental effect on funding of the entire startup ecosystem of India in future because of one greedy person, repercussions on the entire capital market, all are Prospective Prophecy. Nothing retrospective here. Do try to find the meaning of Cassandra and you will have some clear thoughts.
DeleteHi khush,
ReplyDeleteThanks for being a frog in the well. No dear I am not in the business of gambling, trading of scrapping IPOs.To know more about me, if interested you can read the other blogs that are published by me in the past. It's important for me to understand the market dynamics before investing my hard earned money. And to understand that I don't need to make my hands dirty.