Initial Public Offering: The stock market regulator SEBI has released a report according to which more than 50 percent of the successful investors who apply for any company’s IPO sell their shares within a week of the company’s listing on the stock exchange and take home the profit. But an interesting thing in this report is that about 70 percent of the investors who apply for IPO come from only four states.
70 percent of IPO investors are from 4 states
SEBI has released a study on Monday 2 September 2024 after analyzing the behavior of investors applying in IPO. According to this report, out of the total investors investing in IPO, 70 percent of the investors come from only four states which include Gujarat, Maharashtra, Rajasthan and Uttar Pradesh.
Most shares allotted to retail investors from Gujarat
According to this report, 39.3 percent of the total shares allotted in the IPO in the retail category have been allotted to retail investors from Gujarat. After this comes the turn of Maharashtra and 13.5 percent of the total allotment has been successfully allotted to investors from Maharashtra. 10.5 percent shares have been allotted to investors from Rajasthan. That is, about 64 percent of the shares in the retail category have been allotted to retail investors from these three states and the retail investors here have proved lucky in this matter. According to a study by SEBI, 42.3 percent of the total allotment in the category of non-institutional investors (NII Investors) has been allotted to non-institutional investors coming from Gujarat in the IPO. Maharashtra is in second place with 20.4 percent while Rajasthan comes next with 15.5 percent.
Most shares allotted in these demat accounts
According to the SEBI report, out of the IPOs that came between April 2021 and December 2023, about half of the shares that were allotted were in demat accounts opened between 2021 and 2023. While 85 percent of the allotments have been made in those demat accounts which were opened in the 8 years between 2016 and 2023. In the same study, SEBI said that, out of the 144 IPOs that hit the market between April 2021 and December 2023, more than 26 percent have given investors a return of more than 50 percent on the day of listing itself. 92 IPOs were subscribed more than 10 times and there were only 2 IPOs that could not be fully filled.
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