Now Reading: Retail IPO interest wanes as listing-day gains shrink to 6%
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Retail IPO interest wanes as listing-day gains shrink to 6%
Retail investors are shunning initial public offerings as average listing gains crash from 30% in 2024 to just 6% in 2026, data from PRIME Database shows. In July, 12 companies raised Rs…
The Story in Brief
Retail investors are shunning initial public offerings as average listing gains crash from 30% in 2024 to just 6% in 2026, data from PRIME Database shows. In July, 12 companies raised Rs 28,646 crore, the highest monthly haul this year, but the retail portion of six out of 12 IPOs got only single-digit oversubscription. The Rs 9,275-crore Manipal Health Enterprises IPO, this year's second-largest, was undersubscribed in the retail category at 93%.
Experts say retail participation has shifted from equity ownership to a listing-gain trade that no longer pays off. SEBI's June data confirms investors are becoming selective, particularly avoiding offers-for-sale that fund promoter exits. The average number of IPO applications has dropped from 18.86 lakh in 2024 to 9.85 lakh in 2026, according to PRIME Database Group managing director Pranav Haldea.
The Indian Opinion
The hype around IPO listing gains is fading, and retail investors are finally acting like buyers, not punters. The average application count halving from 2024 levels tells the real story. Bankers who price in three years of future earnings and promoters who use OFS to cash out have only themselves to blame. The question now is whether this discipline lasts through a bull run or disappears when the next hot issue hits the street.
Source: thehindubusinessline.com
This story was synthesised by AI from the source linked above.
