How Ashneer Grover earned ₹2.25cr in 8 mins and what you can learn?
Ashneer Grover, former BharatPe MD, earned a nice ₹2.25 crore in 8 minutes during Zomato’s massive IPO in 2021. In his recently released book, “Doglapan: The Hard Truth about Life and Start-Ups,” he told how he used leverage to generate massive amounts of money in a matter of minutes, according to a Twitter thread of Anmol Sharma Founder & CEO – finlight.in.
Anmol Sharma said via a Tweet that “2.25 crores in 8 minutes!! This is not a clickbait but Ashneer Grover, former BharatPe MD, earned a nice ₹2.25 crore in 8 minutes during Zomato’s massive IPO in 2021.”
“In his recently released book, “Doglapan: The Hard Truth about Life and Start-Ups,” he told how he used leverage to generate massive amounts of money in a matter of minutes. However, the case included straightforward leverage—IPO financing. “While I put up ₹5 crore from my own money, Kotak Wealth secured me finance for ₹95 crore at a weekly interest rate of 10%.”(the period for which IPO funds get blocked). “This additional expense of ₹20 lakh in interest was incurred to purchase the shares,” Ashneer Grover wrote in the Penguin book. Due to oversubscription, Grover got ₹3 crore worth of Zomato’s shares at a price of ₹76 per share,” the Twitter thread of Anmol Sharma reads.
“Grover sold all of the company’s shares for ₹136 apiece within 8 minutes after the stock’s IPO at ₹116 in July 2021. “With my landing cost after interest being between ₹82–85, I ended up making over ₹2.25 crore,” Grover wrote in his book. However, later in 2021, Grover faced backlash over his alleged spat with a Kotak Mahindra Bank official over the non-allotment of Nykaa’s shares,” Tweeted Sharma.
“It was, however, a case of simple leverage—IPO financing. While I invested ₹5 crore from my pocket, Kotak Wealth got me financing for ₹95 crore at an interest rate of 10 per cent annualized for a week (the period for which IPO funds get blocked). This cost of ₹20 lakh as interest was an additional cost for acquiring the shares,” Ashneer Grover shared in his book. He further added that, “By the time the trade got executed, I got a selling price of ₹136 per share. With my landing cost after interest being between ₹82–85, I ended up making over ₹2.25 crore.”
According to Nielsen, Ashneer Grover’s book Doglapan is currently in the top spot after selling 45,000 copies and counting.
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Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.