Nimesh Chandan, Chief Investment Officer at Bajaj Finserv Asset Management Company, said the fund house remains careful about investing in new listings, choosing to participate only in select opportunities.

“When a sector is doing well and initial public offerings (IPOs) come in, we approach it a bit cautiously,” Chandan said. “I’m not saying all the IPOs are like that, but we have participated in a few of them.” Referring to Benjamin Graham’s The Intelligent Investor , he added, “IPOs in a bull market should be defined as probably overpriced.”

Chandan said there are several good companies already available in the secondary market at fair valuations, offering better opportunities for investors than newly listed firms. “We want to benefit from that rather than just chase IPOs,” he said.

See Full Page