In value terms, retail investors applied for shares worth a staggering Rs 1.49 lakh crore, which was a whopping 203% higher than the total IPO mobilisation in 2022, according to Prime Database.
India offers “a much more constructive story for capital markets than the rest of Asia. It is as wide open as we have seen it for a while,” said Udhay Furtado, co-head of ECM, Asia Pacific at Citigroup Inc. “Bigger names could be potential candidates for 2024 listings.”
Aditya Birla Sun Life MF, Axis MF, DSP MF, Franklin Templeton MF, ICICI Prudential MF, Kotak MF, Nippon India MF, Motilal Oswal MF, Mirae, Sundaram, JM and SBIMF shopped for Tata Tech, a Nuvama report said. They added shares worth Rs 1,120 crore.
“The entire capital goods is one pack which looks very interesting to us. Hospitals is another segment which we are very positive about. Third sector is private sector banks where the valuations are at a multi-year low. ALso on the consumption side, we have been pitching for some of the discretionary names.”
Unlike the listed stocks, IPOs present a high information asymmetry between the seller and buyers. For years, IPOs have been pitched to retail investors as being advantageous to them. However, the reality is that IPOs sharply favour the sellers, rather than public participants. The regulators may try to level the playing field, but retail buyers still operate at an inherent disadvantage.