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54% IPO shares allotted to investors sold within a week, shows Sebi study
A study by markets regulator Sebi highlighted flipping behaviour among investors in the initial share-sale market with investors (excluding anchor) selling 54 per cent of IPO shares allotted to them by value within a week.
The study found a strong disposition effect (tendency to prematurely sell assets that have made financial gains) with investors showing a greater propensity to sell IPO shares that posted positive listing gains, compared to those that listed at a loss.
In light of the increasing participation of retail investors and the heightened oversubscription in recent IPOs, the Securities and Exchange Board of India (Sebi) conducted an in-depth study to analyze investor behaviour in main-board IPOs. The study encompasses data from 144 IPOs listed between April 2021 and December 2023.
During the study period, 144 IPOs collectively raised a total of Rs 2.13 lakh crore. Notably, 65 per cent of the total issue size was Offer for Sale (OFS), through which the pre-existing ...