Retail investors have given a cold-shoulder to recent initial public offerings largely due to lack of bumper listing gains amid bearish market sentiments and high minimum investment threshold.
In this backdrop, the retail portion, in 10 out of the 18 IPOs that have hit the market so far this year, have remained under subscribed. The unsubscribed portion is usually reallocated to the Qualified Institutional Buyers or Non-Institutional Investors.
Interestingly, the retail decision to stay away from some of these IPOs have come as a blessings in disguise with many of these stocks now trading below the issue price.
In this month alone, two IPOs of Powerica Ltd and Sai Parenterals, which cumulatively raised ₹834 crore, have managed to get only 10 per cent of the retail portion subscribed while another IPO Amir Chand Jagdish Kumar Exports had received 1.4 times (140 per cent) retail subscription but it is now available at 41 per cent discount to the issue price of ₹212 per share. It closed at ₹125 a piece on Friday.
Similarly, Innovision Ltd, which raised ₹311 crore last month by issuing shares at ₹519 a piece, traded at 40 per cent discount to close at ₹312 on Friday. Its retail portion was subscribed only 60 per cent.
Gaurav Bhandari, CEO, Monarch Networth Capital said the waning retail interest in IPOs is not a sign of weakness, it is a sign of maturity as they have evolved significantly over the past five years and do not eye listing-day gains alone.
The problem also lies with valuation of companies which treat IPOs as an exit option for promoters and private equity rather than an opportunity to create long-term wealth for public shareholders, he said.
The demand to reduce the minimum investment level also deserves consideration as the current ₹2 lakh cap for retail investors limits participation, especially in large IPOs where the lot size itself becomes a barrier, said Bhadari.
Narinder Wadhwa, MD and CEO, Ski Capital Services said retail participation has become more selective, with applications per IPO declining and listing gains cooling from 30 per cent to near 10 per cent, prompting investors to look at better opportunities in the battered secondary market.
“We expect the IPO pipeline to slow in the near term, with companies likely to defer listings until conditions improve. A revival in IPO momentum will depend on overall market stability—particularly supported by stable crude oil prices, a steady rupee, and a meaningful return of FII inflows,” he added.
Published on April 12, 2026
