Now Reading: Retreating listing gains dampen retail appetite for IPOs
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Retreating listing gains dampen retail appetite for IPOs
Retail participation in initial public offerings (IPOs) remains sluggish despite a surge in fund raising and the number of issues in July, as investors prioritise quality over quick listing gains. Data shows…
The Story in Brief
Retail participation in initial public offerings (IPOs) remains sluggish despite a surge in fund raising and the number of issues in July, as investors prioritise quality over quick listing gains. Data shows that of the 12 issues that hit the market last month, the retail portion of only five companies was oversubscribed in double digits, while six companies saw single-digit oversubscription.
The ₹9,275-crore issue of Manipal Health Enterprises, the second biggest this year, was undersubscribed in the retail category, receiving bids for only 93% of the shares offered. Gaurav Bhandari, CEO of Monarch Networth Capital, said average listing gains have collapsed to 8% in the last fiscal year from 30% in FY25, with median gains at just 3%. Krishna Patwari of Wealth Wisdom India added that bankers price in future earnings, leaving no margin for buyers, and SEBI data indicates retail investors are becoming more selective.
The Indian Opinion
The typical Indian investor, once lured by bumper listing day profits, is finally reading the fine print. Experts and data now show the average listing gain has crashed from 30% to 6%, killing the easy-money narrative. This isn't just caution; it is a market maturing. The real test is whether companies will now price their shares fairly, or if this retail sobriety chokes off the IPO pipeline itself. Will SEBI need to step in, or is the market self-correcting?
Source: thehindubusinessline.com
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