After SEBI’s strictness and weak returns, investors’ interest in IPO decreased.

Ahmedabad: The month of November has been unforgettable for the Indian stock market. Continued selling by foreign investors and several major events including Adani led to a general slowdown. Meanwhile, pressure was seen not only in the secondary market but also in the primary market i.e. IPO market. Last month in November, the IPO market was quite sluggish.

Both the mainboard and SME IPO segments witnessed a significant decline in the average subscription levels. According to Prime Database data, the average subscription level for mainboard IPOs stood at 1.9 times in November, compared to 16 times in October and 76 times in September. However, this does not include data from Enviro Infra Engineers IPO, which was oversubscribed by almost 90 times.
Except Enviro, all IPOs launched in November received 3.6 times subscription. Mainboard IPOs of a total of seven companies came in November, including Swiggy’s Rs. 11,327 crore and NTPC Green Energy Rs. Big IPOs worth Rs 10,000 crore included. Subscription data has also reduced due to these two big IPOs.

According to market experts, both secondary and primary markets witnessed considerable volatility last month due to geopolitical concerns globally. Apart from this, continuous selling by foreign institutional investors also created a negative environment. Additionally, lower-than-expected listings of some large and gray market-discussed IPOs weakened market sentiment. Swiggy’s IPO received the highest number of bids on the mainboard last month, overall being oversubscribed by more than 3 times.

This was the case not only for mainboards but also for small and medium enterprise IPOs. The average subscription for IPOs in the SME segment last month was 112 times, while in September it was 242 times. Rajputana Biodiesel’s IPO received the highest subscription, which was oversubscribed 718 times. After this, the IPO of Onyx Biotech, the highest bidder, was oversubscribed 198 times. The low response to SME IPO subscription is also due to regulatory stringency and increased surveillance on this segment.