Another time, Dad gets an offer to subscribe to the IPO of HDFC Life Insurance. I am wiser now I think, a little more familiar with Indian equities. Besides, this is a blue-chip offering. I have even told my class about ICICI Lombard, showed them a news clipping of how another Buffett in Canada, may have exited even pre-IPO with a 40X gain. Again, I fire up the Bloombergs, check out the new issue. Blue-chip HDFC life is priced at 65 times earnings, surely the story of Indians buying life insurance is an old one by now. Sure enough, life insurance policy generation is growing only at about 1-2% nationally.
Father wants to subscribe, the offer price is near Rs 300, I tell him boldly that I will get it for him at 200+ in a few months. Of course, it rockets up to Rs. 450, at about 400 in November 2018. Indian citizens are not buying much of equities, who is driving these prices!