Wealthy Investors: The IPO of NTPC Green Energy Limited, a subsidiary of NTPC’s renewable energy sector, closed on 22 November 2024 after being subscribed only 2.55 times. But in this IPO, the 15 percent shares that were reserved for High-Networth Individuals investors i.e. rich investors could not be fully subscribed. The shares reserved for rich investors could be filled only 0.85 times. It is clear from this that the rich investors on whose strength the IPO market remained vibrant seem to be disappearing.
IPO is not getting HNI investors!
NTPC Green Energy’s IPO is not the first IPO from which rich investors have stayed away. In fact, in the last one and a half months, the response of high-net worth individual investors to invest in all the companies that have come to the capital market to raise money through IPO has been very weak.
Swiggy- kept distance from Hyundai Motor’s IPO!
In the IPO of NTPC Green Energy, 122,222,222 shares were offered to non-institutional investors and applications were received for only 10,44,99,2598 shares which is 0.85 times the total shares. Earlier, online food delivery and quick commerce company Swiggy had raised Rs 11,327 crore through IPO. The number of shares reserved for non-institutional investors i.e. rich investors could be filled only 0.41 times. Hyundai Motor India, which launched the largest IPO in the history of the Indian stock market, had raised Rs 27870 crore. And high-net worth individual investors also stayed away from this IPO and the number of shares reserved for these investors in this IPO could be subscribed only 0.60 times.
Invested heavily in Vari Energies IPO
Neeva Bupa Health had an IPO worth Rs 2200 crore. And in this IPO also the reserve quota for rich investors could not be filled. Only 0.71 times the number of shares reserved for investors could be filled. The shares offered for non-institutional investors in the IPO of Acme Solar Holdings were somehow filled. Whereas rich investors had invested heavily in the IPO of Vari Energies worth Rs 4321 crore and the number of shares reserved for them was subscribed 65 times.
Why are rich investors staying away?
According to market experts, the ongoing decline in the stock market since the last week of September, decline in the gray market price (GMP) of IPOs, expensive price-band of big IPOs have kept high-net-worth individual investors away from the IPO market. .
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