3 weeks ago
WWIPL Founder Warns Pre-IPO Hype Can Hurt Investors
Krishna Patwari is the founder of a company called WWIPL that helps people buy shares in private companies.
Private companies are businesses that are not yet listed on the big stock market.
He warns that buying shares right before a company goes public is very risky.
Not every company makes money after it goes public, even when people are very excited about it.
When Mr. Patwari started his company in 2007, very few regular people bought these types of shares.
Today, nearly half of the buyers are regular people like everyday investors.
His company keeps transactions safe by handling the money and delivering shares directly to buyers.
He thinks investors should learn about a company and invest years before it goes public.
He also hopes that better rules will be made to protect investors.
WWIPL Founder and Managing Director Krishna Patwari warned that chasing pre-IPO hype can hurt investors because valuations may already be close to the proposed IPO price.
Retail investor participation in India's private market grew from barely 5-10 percent in 2007 to nearly half of the market today.
WWIPL launched PrimeX 40, which it describes as India's first live private-market index tracking 40 unlisted stocks.
WWIPL transactions pass through its own books, as it purchases shares, makes payments and delivers shares directly to the buyer to reduce counterparty uncertainty.
Patwari advised investors to study fundamentals and enter promising companies several years before an IPO rather than buying for short-term listing gains.
- Who
- Krishna Patwari, Founder and Managing Director of WWIPL, speaking in an interview with The Free Press Journal.
- What
- A warning about the risks of chasing pre-IPO hype, alongside a discussion of India's private market evolution and WWIPL's investor safeguards.
- Where
- India, focusing on its unlisted and pre-IPO share market.
- When
- Not specified in the article; it reflects current market conditions.
- Why
- To caution retail investors against buying pre-IPO shares solely for expected listing gains and to explain how WWIPL operates.
Key facts
- Company
- WWIPL (began operations in 2007)
- Founder and Managing Director
- Krishna Patwari
- Core warning
- Pre-IPO hype can hurt investors; not every listing generates profits
- Retail participation in 2007
- Barely 5-10 percent of the market
- Retail participation today
- Nearly half of the market
- Flagship product
- PrimeX 40, described as India's first live private-market index tracking 40 unlisted stocks
- Transaction model
- WWIPL purchases shares into its books and delivers them directly to the buyer
- Patwari's banking background
- Previously at IDBI Bank and ICICI Bank
Sources
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