Almost 52% of IPO investors sold shares on listing day in April-July FY22
Almost 52% of IPO investors sold shares on listing day in the first four months of the current fiscal year, while 20 percent sold the awarded shares in the first week of listing on the stock market, according to an analysis by Motilal Oswal Financial Services. .
About 64% of the initial public offering (IPO) clients requested at least two of these public offerings, according to the brokerage and distribution activities of Motilal Oswal Financial Services Ltd (MOFSL).
Data showed that approximately 5.7 lakh of Motilal investor clients subscribed to initial share sales in just 4 months from 2021-2022, compared to 5.1 lakh in the entire previous fiscal year. .
About two-thirds of all IPO clients have been integrated in three states – Gujarat, Rajasthan and Maharashtra.
MOFSL cited this exponential increase in the number of 17 IPOs compared to 36 IPOs in the last fiscal year.
He further said that 61% of his clients had subscribed to IPO stocks online. Glenmark Lifesciences received the highest online penetration with 68 percent of clients and 71 percent of the overall investment value coming from online channels.
So many companies plan to raise funds in primary markets for the remainder of the year. With the economic recovery taking shape and favorable general market conditions, IPO should remain a preferable investment avenue for FY22, ”said Ajay Menon, full-time director and CEO, Brokerage and Distribution , MOFSL.
So far this year there have been at least 40 new announcements which have grossed around Rs 68,000 crore and more are in sight. The depth of investor interest, especially from the retail segment, is very visible, with many IPOs oversubscribed more than 100 times and offers worth over Rs 75,000 crore in Classes.
In addition, reports indicate that the total number of IPOs may well exceed the 100 mark this year.
Experts believe that the high liquidity in domestic and foreign markets is behind IPOs.
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