Explained: What is driving so many retail investors to the IPO market?

Flurry of activity in post-Covid era, average retail applications for 20 issues since Sept have nearly tripled

Crowding may have become rare in the post-pandemic world, but not if you are on the IPO Street. The average number of retail investors subscribing to maiden offerings has nearly tripled in the post-pandemic world. 

Consider this: the 20 initial public offerings (IPOs) that have hit the market since September have attracted an average 1.3 million applications from small investors — those investing up to Rs 200,000. Meanwhile, the average applications for the 20 IPOs that preceded the lockdown in March stood at about half a million, data provided by primary market tracking firm Prime Database shows.

So what is driving so