Mumbai: Greater than half of the buyers in preliminary public choices (IPOs) between April 2021 and December 2023 offered the shares inside per week of itemizing, a examine by the Securities and Alternate Board of India (SEBI) revealed on Monday.
In gentle of the rising participation of retail buyers and the heightened oversubscription in current IPOs, the market regulator carried out an in-depth examine to analyse investor behaviour in Principal Board IPOs.
It discovered “Flipping” behaviour amongst particular person buyers who offered 50 per cent of the shares allotted to them by worth inside per week of itemizing, and 70 per cent of shares by worth inside a 12 months.
The SEBI examine discovered a powerful disposition impact, with buyers displaying a higher propensity to promote IPO shares that posted constructive itemizing features, in contrast to those who listed at a loss.
“When IPO returns exceeded 20 per cent, particular person buyers offered 67.6 per cent of the shares by worth inside per week. In distinction, solely 23.3 per cent of shares by worth have been offered when returns have been damaging,” the markets regulator noticed.
Almost half of the demat accounts that utilized for IPOs between April 2021 and December 2023 have been opened in the course of the post-COVID interval.
In keeping with the examine, the interval between April 2021 and December 2023 noticed a complete of 144 new firms making their debut on the within the inventory market via primary board IPOs.
