The fear of missing out has hit Dalal Street as investors demanding shares of new companies are showing no signs of waning as the markets are scaling fresh highs every session. Eight mainboard initial public offerings have seen subscriptions of over 100 times so far as compared to four issues last year.
This year’s demand was led by Vibhor Steel Tubes Ltd., which saw a subscription of almost 300 times, while the IPO of Plaza Wires Ltd. was the most bid last year with 160.98 times. During the month, four public issues saw their demand exceed 90 times.
The excess demand for these issues comes at a time when the world’s fifth-largest stock market is touching a new high consecutively. The NSE Nifty 50 hit a fresh record for the 35th time this year on Wednesday, while the 1,000-point journey of the S&P BSE Sensex to cross the milestone of 78,000 was done in 11 sessions.
Historically, when the secondary market is doing well, there is a lot of activity in the primary market, both in terms of the number and volume of the IPOs. Most issues that get listed during such times do provide listing gains, which improve participation in future IPOs, according to Pranav Haldea, managing director of Prime Database Group.
