Dabble in IPOs at listing price; overweight on IT: Samir Arora
Samir Arora, founder & fund manager of Helios Capital, on Monday, said that it’s hard to buy recent listings given the strong listing gains.
Samir Arora, founder and fund manager of Helios Capital said on Monday that it is hard to buy recent debutants given the strong listing gains.
“We want to dabble at the initial public offering (IPO) price and not the post-listing price because it is another 20-30-40 percent higher. So, with great difficulty in some cases, we may reconcile that the IPO price is quite okay. But then, if you are not getting it at the IPO price, and getting it 30 percent higher, then what's the point?” he said in an interview with CNBC-TV18.
“The same thing happened for Zomato. We would have bought at Rs 90-95 and then it opened at Rs 120. So we had actually put a normal bid in the IPO for $50-70 million, but what is the use? You get $1 million. We sold that also and moved on in life,” he said.
On IT, he said, “Currently IT, relative to anything else, is our biggest overweight; the only thing in IT is whether the wages will go up, whether we will have enough talent because every company is saying that the demand is there and actually from their side, they are also saying that they will be able to pass through any wage increase. We also have more largecap than midcap but basically, all IT companies that we own, we think they are all going to do very well.”
He said that 8 percent of the portfolio is invested in the pharmaceutical space, but there are no plans to increase allocation in the sector hereon.
“If we leave out Apollo, our weight would be around 8 percent or so in proper pharma, and we are not going to increase because we have everything now and money is only $100 every time, although we sometimes take it higher. So the point is, you have to choose. So even if everything is good, what to do? But right now, we also don't feel that pharma is so good and that we have so much cash lying around. It has not done well in the last 5-6 months except one of them, but broadly, it's okay. I don't have any interest in buying more right now,” said Arora.
He also said that Bharti Airtel will benefit from a possible market duopoly and that they have added more to the existing position.
For the entire interview, watch the video
(Edited by : Dipika Ghosh)
First Published: Aug 16, 2021 12:54 PM IST
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