BS EDIT: IPO frenzy: Listing-day gains push subscriptions

By Business StandardPublished On Sep 4, 2024

IPO frenzy

Resourceful Automobiles’ IPO oversubscribed 400 times, showcasing extreme retail investor enthusiasm

High demand

219,000 retail applications per IPO in FY25, a sharp increase from previous years, reflecting speculative behaviour

Listing-day gains

Average IPO gain of 76% on listing day in FY25, with many IPOs listing at over 90% premium

Short-term focus

Sebi study shows most investors sell within a week, with 87.8% of shares sold within a year

Market caution

Sebi has issued advisory due to high speculation in SME IPOs; NSE will cap IPO prices at 90% over offer price

Investment advice

Retail investors urged to exercise caution, focus on quality issues to avoid potential market crashes