In FY22 thus far,15.68 lakh retail investors have participated on a median in every IPO. This is 25% greater than the typical 12.73 lakh retail functions in FY21 and 6.88 lakh in FY20.
In 2007-08, when the IPO market witnessed frenzy, the typical functions from the retail investors have been 3-5 lakh, besides within the case of
and Coal India.
Retail subscription within the newest two IPOs – Zomato and Tatva Chintan Pharma – is an proof of their voracious urge for food. Both the problems noticed greater than 32 lakh functions every, nearly 5% of the full demat accounts in India. In the case of much-awaited Zomato, the retail class was lapped up inside a few hours of the problem final week regardless of blended commentary about its prospects.
The earlier two IPOs – Clean Science and GR Infraprojects – noticed 23.5 lakh and 20 lakh functions, respectively, from retail investors. IPOs of 2021 comparable to Indigo Paints, RailTel Corporation, MTAR Technologies, Laxmi Organic and Nazara Technologies noticed greater than 20 lakh functions every from retail investors, a constant pattern that was by no means seen earlier than.
“The stellar performance of the recent IPOs – both in terms of listing gains and returns post-listing – will keep investor interest elevated in new offerings,” mentioned Atul Mehra, managing director, funding banking, JM Financial.
Out of the 38 corporations which have listed on the principle exchanges prior to now one 12 months, 34 are buying and selling above their IPO costs, confirmed information compiled by ETIG Database.10 corporations have gained over 100% from their IPO costs. Around half of those 38 corporations have gained at the very least 50%.
Investment bankers mentioned cellular buying and selling functions, that are straightforward to use, have eased the method of making use of for IPOs.
“Technology has dramatically reduced the barrier of entry for individual investors from participating in the primary market as now it takes just a minute to apply for an IPO,” mentioned V Jayasankar, head of fairness capital markets, Kotak Investment Banking.
Earlier, investors had to refill IPO functions for every situation and the interval between the time of situation and the listing was so long as a fortnight, leading to utility cash getting caught. All that has modified now.
“Technology plays a key role in increasing participation in new offerings beyond top-10 cities and penetrating tier 2 and 3 towns,” mentioned Mehra.
Retail investors are pumping cash into equities like by no means earlier than. More than two crore demat accounts have been added since April 2020.