The portion set-aside for retail investors in the Rs 3,000 crore IPO from Indigo and Rs 1,150 crore IPO from Cofee Day Enterprises
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Mumbai: The retail investors participation in some of the largest initial public offers (IPO) floated this year has remain tepid as steep valuation and cautious sentiment prompted many of them to adopt a wait and watch approach. The portion set-aside for retail investors in the Rs 3,000 crore IPO from Indigo and Rs 1,150 crore IPO from Cofee Day Enterprises, the biggest IPO’s in 2015 remained undersubscribed.
Even in other IPO’s where the portion reserved for the high net-worth investors (HNI) and qualified institutional buyers (QIB) were subscribed multiple times, the retail participation wasn’t that encouraging. However, experts said that the retail investors would start coming in large numbers if a couple of IPO’s are able to generate decent post listing gains.
“Their participation in the secondary markets has also come down. Most of the retail investors started making fresh investment when the markets were hovering around their historic peaks. However, the markets have retreated from those levels and had remained subdued during the most part of this year. So, a lot of small investors were caught off guard. Adding to that, the high volatility witnessed during the last few months amidst heavy selling in the global markets has also turned lot of investors cautious in the near term,” said Uday Narayan Dubey, VP, institutional desk, R.K.Global.
( Source : deccan chronicle )
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