MUMBAI (Reuters) – India’s markets regulator said on Monday that investors in public issues sold 54% of shares within a week of listing.
Between April 2021 and December 2023, investors showed a greater propensity to exit from the initial public offers that exhibited positive listing gains than those that listed at a loss, the study by the Securities and Exchange Board of India (SEBI) showed.
Shares of 144 companies were listed during the period to raise 2.13 trillion rupees ($25.39 billion), with three-fourths of these IPOs delivering positive returns, SEBI said.
Mutual funds tended to hold shares allotted in IPOs longer, while banks sold them swiftly, the study showed.
Banks sold 79.8% of shares within a week of listing, the SEBI said.
Retail investors sold 42.7% shares within a week, it added.
($1 = 83.8850 Indian rupees)
(This story has been corrected to say ‘listing’ instead of ‘allotment’ in paragraphs 1 and 5)
(Reporting by Jayshree P Upadhyay; Editing by Mrigank Dhaniwala)
