Sunday , January 12 2025

Indian IPOs give higher returns to retail investors than global investors

The trend of participation of retail investors in initial public offerings (IPOs) is expected to continue this year as well.

Compared to the broader market and foreign listed stocks, new entrants to the Indian stock market have offered greater financial benefits to retail investors.

Companies that debuted on the stock market this year have given an average return of about 57 per cent since inception, the data said, adding that the figure is 32 per cent in Asia Pacific and almost double globally.

About 15 companies are preparing for IPOs in the coming months. Together they plan to raise $11 billion. The success of such IPOs in India depends on the investments made by retail investors. India has a great position globally in terms of IPOs in the year 2024. The main reason for this is the increase in valuation and good economic scenario. Due to these factors, companies are attracted to IPOs. Looking at the current rate of IPO issuance, it seems that this trend will not slow down soon.

According to market experts, many young people of India were talked to. Those who prefer investing in the stock market instead of buying a house or investing in real estate.

Retail investors bid for shares worth about $10.6 billion in 36 IPOs this year. This amount was 12 times more than the peak set for retail investors. All new share sales meet their individual quota.