Share markets in India are presently trading marginally lower. Sectoral indices are trading on a negative note with stocks in the energy sector and metal sector witnessing maximum selling pressure.

The BSE Sensex is trading down 106 points (down 0.3%) and the NSE Nifty is trading down by 35 points (down 0.3%). The BSE Mid Cap index is trading down by 1.4%, while the BSE Small Cap index is trading down by 1.3%. The rupee is trading at 65.06 to the US$.

In the news from the IPO space, the initial public offer of Sandhar Technologies Ltd has opened for subscription today.

The fresh issue of 9.1 million shares along with the offer for sale (OFS) of 6.4 mn shares by the company is aimed at raising Rs 5 billion from the primary market. The IPO will mean promoter's stake in the company reduced to 70% (currently at 83%).

Sandhar Technologies is engaged in the business of designing and manufacturing a diverse range of automotive components, parts and systems which are focused on safety and security systems of vehicles.

The company manufactures its products from 31 manufacturing facilities across eight states in India, two manufacturing facilities in Spain, and one manufacturing facility in Mexico. This apart, it also has an overseas assembly and packaging centre located in Poland and a R&D centre located in Gurugram, Haryana.

To know our view on this IPO, you can read our IPO note on Sandhar Technologies Ltd (requires subscription).The company's customer profile consists of 79 Indian and global original equipment manufacturers (OEMs) across various segments and global automotive component suppliers such as Autoliv, Bosch, and CTS.

Speaking of IPOs, the demand for IPO's has reached sky-high levels. Avenue Supermarts was seen as the first company last year to cross the 100-time subscription mark swiftly followed by CDSL and Dixon technologies, among others.

IPO Subscription Times (2017)

This euphoria is something similar to what was seen in 2007-08. When everyone around you is clamoring to get a piece of the IPO pie, it makes sitting tight difficult. And, why should you sit tight when stocks like Avenue Supermart lets you pocket a cool 100% gain from day 1 of the listing?

History suggests that these cases are few and far between. More than 70% of the IPOs listed in 2007 and 2008 are in the red, even today when the Sensex is at an all-time high.

A merit-based selection primarily including valuation, business, and management quality is the logical way to go about investing in IPOs. If it means going against the herd, so be it. And going by recent past, this strategy has been proven to be successful more often than not.

In the news from the pharma sector, Shilpa Medicare share price is witnessing buying interest today. Gains are seen as the US Food and Drug Administration (USFDA) issued an Establishment Inspection Report (EIR) for the company's formulations manufacturing facility (SEZ unit) located at Jadcherla, Telangana.

The company said that the facility was inspected between November 11 and November 30, 2017 and USFDA determined that the inspection classification of this facility is VAI and accordingly issued EIR.

At the time of writing Shilpa Medicare share price was trading up by around 13% on the BSE.