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IPOs set to mobilize at least ₹20,000cr from retail investors

November 08, 2021

IPOs set to mobilize at least ₹20,000cr from retail investors

Retail investors are expected to plough at least ₹20,000cr into India’s red-hot primary market in 2021, lured by sterling listing day gains of recent share sales and falling returns from competing asset classes.

Companies have raised ₹18,492cr from retail investors through initial public offerings this year, according to data from primary market tracker Prime database and stock exchanges.

Paytm’s IPO, the nation’s biggest yet, which opens on Monday, alone has a retail book of ₹1,830cr. The substantial amount highlights the growing significance of retail investors in India markets since the outbreak of virus.

Typically, retail investors crowd IPOs for quick listing day gains, a behaviour enhanced by this year’s handsome gains.

Shares of companies such as Paras Defence and Space Technologies, Tatva Chintan, Indigo paints & GR Infraprojects more than doubled on listing this year. These companies saw the retail portion of their share sale subscribed in double digits. The highly subscribed retail books this year include names such as Nureca Ltd, Paras Defence, Nazara Technologies and Easy Trip Planners Ltd.

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