Individuals from Mumbai and Ahmedabad account for more than half of the funds garnered from retail investors in Initial Public Offerings (IPOs) so far in 2015, while the national capital has contributed less than 6%.
Individuals from Mumbai and Ahmedabad account for more than half of the funds garnered from retail investors in Initial Public Offerings (IPOs) so far in 2015, while the national capital has contributed less than 6%.
Together, Mumbai and Ahmedabad contributed over 54% or about Rs 2,200 crore in terms of funds garnered by the IPOs from retail investors, according to an analysis of 18 IPOs that hit the capital markets in 2015.
These 18 public issues together mobilised funds totaling Rs 13,000 crore -- making it the best period in past few years in terms of fundraising through such plans.
While there have been 20 IPOs so far this year, the city-wise retail investor data was not available for IPOs of two companies -- Dr Lal PathLabs and Alkem Labs -- that hit the market last week.
For the 18 IPOs under consideration, about Rs 1,225 crore, or 30% of the funds, have been raised from retail investors from Mumbai -- the city that houses most of the large companies. Mumbai is followed by Ahmedabad, which contributed 24%, or Rs 967 crore of the money collected through retail participation in IPOs.
In terms of retail investor applications, about 33% came from Ahmedabad as against 23% from Mumbai. In terms of retail funds mop-up, Ahmedabad is followed by Rajkot (5.86%), Delhi (5.6%) and Jaipur (5.13%).
Others in the top-10 include Bengaluru (2.68%), Kolkata (2.52%), Hyderabad/Secunderabad (1.78%), Vadodara (1.76%) and Surat (1.74%). Interestingly, four of top-ten cities are from Gujarat.
"The successful IPOs and robust return given to investors on the recent public offers drew many investors from small towns," UTI Mutual Fund EVP and Fund Manager V Srivatsa said. People from Gujarat have a strong interest in equities, he added.
In addition, merchant bankers are increasingly targeting emerging towns or tier-II, tier-III cities in the country, Quantum AMC Managing Director and Chief Information Officer I V Subramaniam said.
The IPO market has seen a strong rebound this year. In 2014, only six IPOs had hit the market and garnered just Rs 1,261 crore, while only three firms had launched their public issues in 2013 to mobilise Rs 1,284 crore.
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