Recently Indian public have shown little interest in public IPOs in spite of some discount in the offer for retail segment. This has made Govt of India jittery as their plan of disinvestment will not yield the required revenue. In order to mop up funds and to enthuse Indian public to participate in IPO, Govt of India advised SEBI to find means. Sebi’s Primary Market Advisory Committee is working as part of its efforts to revive retail investors’ interest in the public offers.
Normally four working days are earmarked for any IPO. SEBI is thinking to earmark first two days for institutional investors and the last two days for retail investors. Also it is planning to suggest simple form in place of complicated form of application.
Reason for this may be:
Retail investors have been traditionally following the cues from the demand generated among the large institutional investors and put in their bids on the last day, but in the recent IPOs the institutional investors have also been seen waiting till the last moment thus keeping the retail investors on hook to decide till the last moment.This has led to a large chunk of retail investors missing on the opportunity to invest in the IPOs where institutional investors have come in during the last hours.
Let’s hope some thing will come out of this and revival of retail interest in IPO comes back.
C. R. Venkata Ramani