Trend during IPO's

One trend which I had noticed is that every time there is a major IPO announced I have seen that the market had gone down. Most of the retailers and even some investment institutions sell for liquidity thus creating a bearish trend in the market.

So considering this trend I feel it makes more sense to invest in performing shares which will be available at a more subsidized rates than going through the hassle of applying for IPO's. Both my previous experience with IPO with Reliance Power and recent NHSPC was disappointing. Both were oversubscribed by 15-20 times and so we get just a percentage of what we have applied for.

The application process involves bidding and paying in advance. So if the IPO is over subscribed we get just percentage of what we have applied and the money which we had paid as advance will be idle till they refund which can take any where between 4-6 weeks.

So considering this I feel it is better to utilize the money for buying other key stocks as they will be available at lower rated because of the bearish trends during IPO’s.