Investors from Mumbai, Ahmedabad dominate IPO market in 2015

By: | Updated: December 14, 2015 11:22 AM

Individuals from Mumbai and Ahmedabad account for more than half of the funds garnered from retail investors in IPOs so far in 2015, while the national capital has contributed less than 6 per cent.

ipoThe IPO market has seen a strong rebound this year. In 2014, only six IPOs had hit the market and garnered just Rs 1,261 crore, while only three firms had launched their public issues in 2013 to mobilise Rs 1,284 crore.

Individuals from Mumbai and Ahmedabad account for more than half of the funds garnered from retail investors in IPOs so far in 2015, while the national capital has contributed less than 6 per cent.

Together, Mumbai and Ahmedabad contributed over 54 per cent or about Rs 2,200 crore in terms of funds garnered by the IPOs from retail investors, according to an analysis of 18 initial public offerings (IPOs) that hit the capital markets in 2015.

These 18 public issues together mobilised funds totalling Rs 13,000 crore – making it the best period in past few years in terms of fund-raising through such plans.

While there have been 20 IPOs so far this year, the city-wise retail investor data was not available for IPOs of two companies — Dr Lal PathLabs and Alkem Labs — that hit the market last week.

For the 18 IPOs under consideration, about Rs 1,225 crore, or 30 per cent of the funds, have been raised from retail investors from Mumbai – the city that houses most of the large companies.

Mumbai is followed by Ahmedabad which contributed 24 per cent, or Rs 967 crore of the money collected through retail participation, in IPOs.

In terms of retail investor applications, about 33 per cent came from Ahmedabad, as against 23 per cent from Mumbai.

In terms of retail funds mop-up, Ahmedabad is followed by Rajkot (5.86 per cent), Delhi (5.6 per cent) and Jaipur (5.13 per cent).

Others in the top-10 include Bengaluru (2.68 per cent), Kolkata (2.52 per cent), Hyderabad/Secunderabad (1.78 per cent), Vadodara (1.76 per cent) and Surat (1.74 per cent).
Interestingly, four of top-ten cities are from Gujarat.

“The successful IPOs and robust return given to investors on the recent public offers drew many investors from small towns,” UTI Mutual Fund EVP and Fund Manager V Srivatsa said.
People from Gujarat have a strong interest in equities, he added.

In addition, merchant bankers are increasingly targeting emerging towns or tier-II, tier-III cities in the country, Quantum AMC Managing Director and Chief Information Officer I V Subramaniam said.

The IPO market has seen a strong rebound this year. In 2014, only six IPOs had hit the market and garnered just Rs 1,261 crore, while only three firms had launched their public issues in 2013 to mobilise Rs 1,284 crore.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition