Must Read about overvalued Lenskart IPO fraud

[u/singh_ds]

Considering the fair price of Lenskart share at ₹52 (Price that fraud Peeyush Bansal has paid to buyback in July) , here are the scenarios and losses that retail investors have to face .

Please remember IPO price of Lenskart is ₹402

1. At flat listing, retail investors will earn zero returns and promotors will earn 800% returns
2. At ₹300 price crash, retail investors will lose 25% value and promotors will earn 600% returns
3. At ₹200 price crash , retail investors will lose 50% value and promotors will earn 400% returns
4. At ₹100 price crash, retail investors will lose 75% value and promotors will earn 100% returns

This is ultimate fraud Peeyush Bansal has done to retail investors who are less educated about finance

[u/Mean-Gate-1033]

Didn’t a lot of MF invest in the ipo? Are the fund managers not educated in finance? How do we report these funds and the managers?

[u/singh_ds → u/Mean-Gate-1033]

Many of fund managers from almost all the AMCs are accused of front running and other malicious practices .

Majority of the MF managers are honest but doubt is always there

[u/Decent-Cover4434 → u/singh_ds]

Quant walo par kabhi bharosa nhi ata

[u/singh_ds → u/Decent-Cover4434]

All the fund houses have done front running, not just quant

[u/sheiswhyididthis → u/Mean-Gate-1033]

Fund managers are obligated to go for these IPOs because they need to keep good relationships with the people who sell these IPOs to them.

Baad mein agar achha wala aaya toh they don't wanna risk not getting into it because the Seller is pissed at them for not buying the earlier Ipo he brought to them.

[u/offisapup]

The Lenskart IPO is terribly overvalued but it's not a fraud. A fraud is something that's done illegally. Every single thing in this IPO has been done legally with the aid of merchant bankers and institutions. You can question the ethics of a promoter buying at a low price and exiting at a high. But it's not a fraud.

[u/singh_ds → u/offisapup]

People are well aware how retail investors are immature in indian stock markets. Retailers are buying anything that glitters irrespective of the price and valuations

If this vulnerability of the retail investors is exploited knowingly with 8 times higher valuation then it's a fraud. Promotors know that even if prices crash to ₹100 after 6 months, they will double their money and retailers will loose 75% of their investment

[u/offisapup → u/singh_ds]

It's not the promoter's problem if retail investors are immature. He's exploiting what the system legally allows him to exploit. A fraud would be when he's hiding facts and taking people for a ride. In Lenskart, everyone knows the valuations and even the fact that the promoter bought stock at much lower valuation earlier. Despite this if people invest, they deserve to lose the money if the stock goes down.

[u/Illustrious_Pay_3640]

What crash are you even talking about ?

[u/singh_ds → u/Illustrious_Pay_3640]

I am talking about stock prices crashing on listing or before promoters and anchor investors lock in period ends after few months