IPOs: Have a 'stag' strategy

Be ready to book profits and sell out if the stock lists at a premium

Higher secondary market prices often translate into primary market buoyancy as well. This has been one of the best calendar years ever for initial public offerings (IPOs). By mid-October, IPOs had raised over Rs 41,000 crore and there are issues lined up for the next two months as well. According to Prime Database, this is the best year in the last decade — even better than the bumper 2007 (Rs 34,000 crore) and 2010 (Rs 37,500 crore).

The insurance sector has tapped the markets most effectively. ICICI Lombard, SBI Life and GIC-Re have already completed big issues and New India Assurance’s