28/09/2021

THAILAND DAILY

NEWSPAPER / MAGAZINE / PUBLISHER

almost-52%-ipo-investors-sold-shares-on-listing-day-in-apr-jul-fy22

Almost 52% IPO investors sold shares on listing day in Apr-Jul FY22

Around two-thirds of overall IPO clients have been onboarded from three states – Gujarat, Rajasthan and Maharashtra

Topics

IPO activity | IPO investors | Motilal Oswal Financial Services

Almost 52 per cent of IPO investors sold shares on the listing day in the first four months of the ongoing fiscal year while another 20 per cent sold the allotted shares within the first week of listing on stock exchanges, an analysis by Motilal Oswal Financial Services showed.

Around 64 per cent of the initial public offering (IPO) clients applied for at-least two such public issues, according to the broking and distribution business of Motilal Oswal Financial Services (MOFSL).

The data showed that around 5.7 lakh of Motilal investor clients subscribed to initial share-sales in just 4 months of 2021-22 compared to 5.1 lakh in the entire preceding fiscal year.

Around two-thirds of overall IPO clients have been onboarded from three states — Gujarat, Rajasthan and Maharashtra.

MOFSL cited this exponential surge in numbers from 17 IPOs in comparison to 36 IPOs in the last fiscal year. It, further, said 61 per cent of its clients made online subscription for IPO shares. Glenmark Lifesciences received the highest online penetration with 68 per cent clients and 71 per cent of the overall investment value coming through online channels.

“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,” Ajay Menon, Whole Time Director & CEO, Broking & Distribution, MOFSL said.

So far this year, there have been at least 40 new listings that have raked in around Rs 68,000 crore and more are in the offing.

The depth of investor interest, especially from the retail segment, is much visible with many IPOs being oversubscribed over 100 times and offers worth over Rs 75,000 crore in the pipeline.

Also, reports say the total number of IPOs may well top the 100-mark this year.

Experts believe that high liquidity in domestic and foreign markets is driving the IPOs.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Take Me Top