Analysis of investor behavior in Initial public offerings (IPOs)
Some day’s back we put blog about how the company performance after IPOs listing for different time horizon.
Today we will discuss about behaviors of Investor after getting allotment in IPOs which is published by SEBI.
Some Facts:
- The study highlights about 54% of IPO share(In Value) allotted to investor were sold within week of listing.
- Individual investor sold 50.2% of share allotted to them within week of listing. Non Institutional investor(NII) sold 63.3% & Retai Investor sold 42.7% of shared within week of listing
- Individual investor sold 67.6% shares within week if return is more than 20% and sold 23.3% if return were negative.
- In FY 22 alone, a record amount of 1,10,000 Cr was raised through 50 IPOs. Below graph show how much fund is raised through how many issue in particular year.
5.Of 144 IPOs listed during April 2021- December 2023, 75% IPOs(108 in Nos) delivered positive return. As many as 26 IPOs delivered more than 50 % listing day return.
6.Out of 144 IPOs collectively raised Rs 2,13,000 Cr. As many as 43 IPOs raised approx. Rs. 92,000 Crs through non-profitability route of fund raising. Notably 65% of issue size was offer for sale(OFS).
7.Exit pattern of different Investor for different time horizon.
8.It was observed that FPIs, Mutual fund and Individual exited more in issues having less than 1000 Cr.
