Oil India IPO investment: Is it good for Short term gains or a long term investment?

Past two big IPO's Adani and NHPC didn't realised the returns investors. The grey market speculators are still in losses and not reached the break even. On that, since the issue is a huge premium to face value, thousand rupees would earn minimum Rs.100 per annum at 10% return. So, I think it is better for long term investments...

good for short term and long term too such companies take a huge time to come to this stage.the fact that only 72 lakh share would be in public would make it a punters delight.

no one dares to play punter in public sector companies.they are slow to react,when faced with competition dies a natural death.the company doe snot have any use for the money raised it would be a burden on the returns generated unless put to some great use.

it is surprising why government has taken this route when there wa sno need for funds and no project what so ever the money is only going to add to the cash balances.by th emost fixed deposit.

even if it does a fixed deposit the earning per shar would go up considerable because of other income.since the issue is a a huge premium to face value.thousand rupees would eanr minimum 100 rupees per annum at 10% return.

I got the above information from livemint.com. There we see the Petroleum industry is tracking the Sensex till feb09 and then diverges with lower returns than the Index. MyIris.com has only their financials of 03 and 02 where then they seemed to be doing good. I feel with such premium short term gains cannot be expected may be lower than the Index returns.

I think it would be a good bet for long term rather than short term, but rather I feel there are better options in the market in the same industry. The last two big IPO's Adani and NHPC didnt realised the returns investors expected. The grey market speculators are still in losses and not reached the breakeven.

Where as the industry it is into has a long term benefit, the returns do not gets generated in the short period as the gestation period is longer in this industry.

I believe that OIL INDIA is a good long term bet, looking at the current market scenario, i do not believe that the investors will get a good short term return.

Also the space the company is into is more of a long term as right now the things are not going good for them, the valuations are fair enough and so no much upside is seen at the time of listing. Also the participation may be less as the leverage investors are yet to break even in the last two IPO's...

Purely on fundamentals, the company is a very good long term investment...

I think it is a long term investment. Considering the current scenario and ecnomic turmoils it is always better fro long term purpose. Short term purpose may not be fulfilled. It is very good for long term as the scenarios are changing.