Radhika Gupta Cautions Against ‘Influencer Advice’ on Unlished Stocks: ‘Reality of Valuations and Financial gravity’

Radhika Gupta, MD & CEO of Edelweiss Mutual Fund has a word of caution for Ordinary Investors Looking for High Returns with Understanding The Risks.

Noting that influencers push small investors “Crazy Investments Opportunities” that are meant for more seasoned early stage investors, by playing on the fom (fear of missing out) factor Pointed to the HDB Listing Share Price as Lesson.

‘Reality check on Valuations, Financial Gravity’

Writing on Social Media Platform X (Formerly Twitter), Radhika Gupta Said, “” Industrialists and Celebrities are going Crazy Over this one investment options. Estate. Are you missing out? ‘ Says One Influencer Video Telling People to Invest in Unlisted Stocks, ”She said.

She NOTED, “A perfectly Good Asset Class which was meant for early stage investment for high risk takers is now market Price and great money. “

“This article should be a reality check! Public, private, or in between, there is a reality of valuations and financial gravity,” She added, giving an example of the Valuation from The Value Forms’ Initial Public offering (IPO).

On June 24, Mint Reported that Investors Who Bough HDB Financial Services’ Unlished Shares are in for a Rude Shock as the HDFC Bank’s Non-Banking Arm IPO HAS GOT A PRICE BAND OF 700-740-almost half the unlisted shares, which was trading at 1,250 apiece.

HDB Financial’s IPO, The Larget for An Indian Non-Banking Financial Company, Opened for Subscription Today, on June 25, with Large Institutions Bidding A Day Earlier.

Investors Keep in Mind: Grey Market and Fraud Risk

For Small, Retail Investors in Particular, Acquiring Unlisted Shares Always Risk as Regulations and safeguarding by stock exhanges is missing. Speaking to Mint, Market Expert Deepak Jasani Warned that there is a risk of fraud and investors can lose their capital.

Notably, Gray Market Activity Typically Begins in Antiicipation of the company’s public listing. Early Activity may start as soon as the draft red herring principal (DRHP) is filled, but it typically picks up pace once there is more class on the IPO launch.

Disclaimer: The views and recommendations made Above are that of individual analysts or broking companies, and not of mint. We Advise Investors to Check With Certified Experts Before Making Any Investments Decisions.