My Thrilling Expedition into the World of IPO – Personal Finance Stories # 2

Story of My IPO Investment

That morning one of my friends was filling out a form for IPO of the company. I was curious to know what it was all about and he said that the company is going public through an Initial Public Offering (IPO). He further told me that its stock price will rise drastically in few days as soon as the IPO opens and if I want to gain good returns, this would be a great opportunity.

Everyone has either heard about or experienced the phenomenon of investing in the stock market and reaping incredible benefits over time. That’s the story of my journey with this stock. It all started when the company decided to issue an Initial Public Offering (IPO) in the late 90s. The buzz around this IPO grabbed my attention and ignited some interest in me to secure some stocks for myself. Little did I know that it would escalate into a success story, and I would gain invaluable insights into investing and IPOs. In this post, I stock my experience and learnings from investing in stocks through IPO.

What is IPO?

The next thing I remember, I asked him, “So, what exactly is an IPO?” It’s an acronym that stands for Initial Public Offering, which is a process where a private company goes public by selling its stocks to the general public for the first time. It’s a way for companies to raise capital and for investors to potentially gain significant returns if the company performs well. This was all new to me at the time, but I was intrigued by the prospect of being part of a company’s growth story. The understanding of IPO was the first step in my journey towards becoming an investor. Little did I know how valuable this knowledge would become?

Starting the Investment Journey

I was fascinated by the IPO because, at the time, the internet had started gaining traction worldwide, and this offering presented an opportunity to invest in a company that was uniquely positioned to capitalize on this trend. The company had a solid track record, too, having been a public sector company that dominated the telecommunications space. Moreover, this was my debut IPO, an aspect that significantly elevates the significance of this investment journey for me. As a novice in the stock market world, everything about this process was new and intriguing. I was eagerly curious about IPOs, their functioning, and their potential for generating wealth. This venture was the starting line of my financial literacy journey, catalyzing a deeper understanding of the stock market and its complexities.

Riding the IPO Wave

The excitement around the IPO was palpable, and the media was only fuelling it. People were buying the stocks with the hopes of cashing in on the frenzy around IPOs. I joined in the fray, too, and managed to secure my stocks through the designated branches of banks. Within days of the IPO launch, the demand for the stocks was so high that they were trading above the issue price, making us early investors incredibly happy. The excitement was only further amplified when the stock prices started climbing higher and higher, with people talking about it at every corner.

Missing Out on the Big Gains

As an inexperienced investor, greed got the best of me as the value of the stocks saw a meteoric rise within months of the IPO. Tracking the progress of stocks was a daily task for me, and I was oblivious to the risks surrounding investment in the stock market. I failed to acknowledge the importance of sound investment strategy, and in my excitement, I held on to the stocks for far too long, even as the price began to dip.

The Learning Curve

The value of this stock, like other stocks in the stock market, was susceptible to various risks that could adversely impact the value of the company and, in turn, stock prices. However, over time, I learned that the value of an investment in the stock market is heavily influenced by supply and demand forces. I also realized that there was a need for an investment strategy that would allow me to manage risks and optimize gains.

The day finally came when I sold my stocks. I had watched as the stock price steadily declined, my initial excitement gradually turning into a sinking feeling of regret. The value of the stocks had dropped significantly from their peak, and I found myself with much less profit than I could have made. As I finalized the sale, I felt a strange mixture of relief and disappointment. Relief, because I was no longer bound to the relentless fluctuation of the stock market; disappointment, because I had not made the gains I had so naively anticipated. This experience served as a stern reminder that the stock market is not just about quick gains, but rather a long-term investment strategy.

Lessons Learnt

My experience with this particular stock has imparted several valuable lessons that have significantly shaped my current investment strategy. Firstly, it underscored the paramount importance of diversifying one’s investment portfolio across a broad spectrum of economic sectors. Secondly, it emphasized the significance of vigilant market analysis, risk assessment, and the implementation of a well-thought-out entry and exit strategy, which can safeguard against catastrophic losses and pave the way for consistent and substantial profits. Lastly, it instilled the understanding that successful stock investing demands a steadfast, long-term perspective, characterized by patience, unwavering discipline, and astute, strategically sound decision-making. These lessons have not only informed but also expanded the foundation upon which I build my investment approach today.


The VSNL IPO experience was a defining moment in my investment journey, and it taught me valuable lessons that have shaped my investment journey. As an investor, you must be aware of the risks and opportunities in investing in IPOs and the stock market. Diversification, strategic investment planning, and patience are crucial elements of successful investing in the stock market. Remember, with every investment you make, you have the potential to turn the gamble into a success story like mine.

Airline Stocks That Made Me Regret – Personal Finance Stories # 1

Personal Finance Stories

Personal Finance Stories are real stories of my investment successes or failures to share my learnings with you.

I still remember when a good friend of mine, who had a lot of experience in investing, really encouraged me to buy an airline stock. He painted a promising image of a booming airline that was all set to grow rapidly and firmly told me that this was an opportunity I shouldn’t miss. Looking to broaden my investment mix, and charmed by his enthusiastic talk and the prospect of good profits, I found myself getting caught up in buying stocks of that airline. I didn’t know then that this decision would teach me a hard lesson about how unpredictable investing can be.

Next day, woke up eager to buy this stock…….

The very next day, I was raring to go, ready to buy this stock at any price. The thought of missing out on this ‘golden opportunity’ was inconceivable. My focus was locked onto the potential highs and I was oblivious to any potential pitfalls. I was firmly caught in the throes of FOMO – the Fear Of Missing Out. The rational investor in me had taken a backseat to the eager speculator. Armed with an unwavering resolve and almost blind faith in the advice I had received, I bought stocks of the airline company with an optimism that was as high as the planes the company flew.

Despite my overbearing optimism, it soon became clear that I wasn’t alone in my enthusiasm. I remember that day, seeing the same determination in the eyes of other investors. They too, driven by the same FOMO, were eager to get in. It was like a frenzy, an entire sea of investors swept up in the same wave of speculative fever. Each of us, armed with our own unwavering resolve, was ready to buy these stocks at any cost, firmly believing that we were about to make a significant profit. But, little did we know, our collective optimism was about to be met with a harsh reality.

Searching for a glimmer of hope in a heap of trash….

After buying the stocks, I started keeping a close eye on the move of the stock. I looked at financial results, trying to understand how the company was performing. The financial statements seemed positive at first, showing a steady increase in revenue. But as I dug deeper, I started noticing alarming signs. There was a significant amount of borrowing on the company’s balance sheet, much of its short-term debt, and its profitability was far from stellar. I also noted that the company’s operating expenses were increasing at a much faster rate than its revenues, hinting at the possibility of unsustainable growth. It was a stark reminder that a company’s financial health is not always as it appears on the surface and that investing requires a thorough understanding of a company’s finances, not just the hype and promise of growth.

And the bubble burst that day….

Soon the company started to show signs of financial troubles. The company’s debts began to pile up and it was clear that something was wrong. Despite these red flags, I was too caught up in my investment and believed that things would turn around. Adding more money to this stock at every decline thinking about cost averaging and having blind faith in the management of the company.

And the day came when the unfathomable happened. Kingfisher Airlines, once seen as a stronghold of potential and growth, declared bankruptcy. My stocks, which I had invested so heavily in, were now worthless. The stark realization that my investment was a loss was a bitter pill to swallow. I was left dumbstruck, staring at the numbers on the screen that confirmed my worst fears. It was a harsh lesson in the volatile nature of the stock market and the dangers of investing with blind faith.

My Regrets and What Saved Me….

I was careful not to invest more money than I could lose without going broke, and that saved me. I also learned the importance of diversification. Putting all my eggs in one basket by investing solely in Kingfisher Airlines was a huge mistake. I should have spread my investments across different industries and companies to minimize my risk. Lastly, I realized the importance of having a long-term strategy when it comes to personal finance. Investing is a marathon and not a sprint. It’s crucial to have a solid financial plan and stick to it.

Through this experience, I learned a lot about personal finance and investing. I learned that investing blindly in a company just because it appears to be doing well is not a good strategy. I learned that thorough research and analysis are essential before making any investment decisions. It’s important to assess the industry, the company’s financial health, and the management team before investing.


It’s easy to make mistakes when it comes to personal finance. My failed investment in Kingfisher Airlines was a hard lesson, but it taught me invaluable lessons. Now, I make sure to do thorough research and analysis before making any investment decisions, diversify my portfolio, and have a long-term strategy for my finances. I hope my personal finance story can help others avoid making the same mistakes that I did.