The average retail application size for initial public offerings (IPOs) has seen a sharp drop after the Securities and Exchange Board of India (Sebi) modified the allocation process to provide a guaranteed allotment for small investors.
Average investment in the retail category has dropped to less than Rs 30,000 for the three IPOs this week. This is less than a third of Rs 95,000, the average application size of retail investors after Sebi doubled the maximum application amount for retail investors to Rs 2 lakh.
MCX, which saw this year’s second-biggest IPO after Bharti Infratel, had an average application of Rs 1,25,000. The application sizes for CARE Ratings and PC Jeweller, which closed earlier this week, were Rs 34,000 and Rs 19,700, respectively.
| POOR SHOW IPOs that raised more than Rs 500 cr and got the worst retail subscription since 2008 | |||
| Company | Issue size (in Rs crore) | Subscription (x times) | Retail (x times) |
| JSW Energy | 2,700.00 | 1.56 | 0.38 |
| Jaypee Infratech | 2,257.60 | 1.20 | 0.53 |
| Indiabulls Power | 1,758.15 | 15.76 | 0.87 |
| Prestige Estates Proj | 1,200.00 | 2.19 | 0.24 |
| Oberoi Realty | 1,028.61 | 10.12 | 0.91 |
| Compiled by BS Research Bureau | |||
