Around 52% of IPO investors have sold shares on listing day in FY22 so far

In the first half of 2021, Indian companies raised Rs27,417 crore through IPOs, the highest in at least a decade.Premium
In the first half of 2021, Indian companies raised Rs27,417 crore through IPOs, the highest in at least a decade.
 2 min read . Updated: 23 Aug 2021, 02:39 PM IST Nasrin Sultana

MUMBAI: Investor euphoria has largely been led by listing pop or gains made on debut at stock exchanges amid frenzied activity in primary markets so far this financial year 2022. Almost 52% of investors of Motilal Oswal Financial Services Limited (MOFSL) sold shares on the listing day, showed data.

According to the broking and distribution business of MOFSL, another 20% sold the allotted shares within the first week of listing on the stock exchanges. Around 64% of the IPO clients applied for at-least two IPOs, it added.

Analysis showed that around 5.7 lakh of its investor clients have subscribed to IPOs in just four months of FY22 versus 5.1 lakh in entire previous year. Also, data revealed that round two-thirds of overall IPO clients were from three states - Gujarat, Rajasthan, and Maharashtra.

Of all the clients of Motilal, 61% made online subscription for IPO shares. Glenmark Lifesciences received the highest online penetration with 68% clients and 71% of the overall investment value coming through online channels.

Ajay Menon, whole time director and CEO, broking and distribution, MOFSL said, “So many companies are planning to raise money through primary markets in the remainder of the financial year. With economic turnaround taking shape and favourable general market conditions, IPO is expected to remain a preferable investment avenue for FY22."

As liquidity-driven markets whet investor appetite, retail participants in IPOs have climbed manifold despite steep valuations. In the first half of 2021, Indian companies raised Rs27,417 crore through IPOs, the highest in at least a decade compared to six months of previous years. A total of Rs5,509 crore and Rs23,452 crore were raised via IPOs in the first six months of 2019 and 2018, respectively.

Primary markets have been busy. Last year after June, following a strong rebound in stock markets after the covid outbreak in India, retail investors flocked to subscribing IPOs. The retail portion of Nureca Ltd was subscribed 166.65 times, highest in the last one year. Similarly, IPOs of other companies such as Nazara Technology, Happiest Minds Technologies, Easy Trip Planners, Burger King India, Chemcon Speciality Chemicals, Mazagon Dock Shipbuilders, Mrs Bectors, MTAR Technologies saw their retail segments subscribed 28-166 times.

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