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- Coronavirus Crisis As An Opportunity; Retail Investors Made Money From Stock Market
Mumbai5 hours ago
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- Retail investors’ applications used to range between 3 to 5 lakh in 2007-08
- Earlier the physical form had to be filled, now everything is done through the mobile app.
Opportunities in the disaster were also found by those investors of the country, who never knew anything about the stock market. Retail investors started investing in the stock market to sit at home, be unemployed and secure their future. The applications of these investors have doubled in two years.
Average applications were 6.13 lakh in 2018-19
According to the data, in 2018-19, the average application of a retail investor in each IPO was 6.13 lakh. In the next year i.e. 2019-20, it increased marginally to 6.88 lakh. But as soon as Corona came last year, there was a double jump in it. During 2020-21 i.e. from April last year to March this year, the applications of retail investors increased to an average of 12.73 lakh in every IPO. Whereas from 2021-22 i.e. April this year till now it has increased to 15.68 lakhs.
best listing of zomato shares
The stock of Zomato, which was listed on the stock exchange on Friday, has filled the lap of investors. A share of Rs 76 got listed at Rs 115. Later it went up to Rs 138. Talking about retail applications, Tatv Chintan has been at the top in recent times. Its IPO has closed this week and it will be listed next week. This IPO of Rs 500 crore received a total of 32.50 lakh retail applications.
Zomato has 32.14 lakh retail applications
Zomato brought an issue of Rs 9,375 crore. In this 32.14 lakh retail applications were received. Only 10% of it was kept for retail. Whereas in Tattva Chintan, 35% was earmarked for retail. In the issue of Indigo Paints that came in January this year, a total of 25.88 lakh applications came from retail investors. It was an IPO of Rs 1,169 crore.
25.87 lakh retail applications in MTAR’s IPO
In March this year, a total of 25.87 lakh retail applications were received in the IPO of MTAR. The issue was Rs 596 crore. State-owned Mazagon Post had floated an IPO worth Rs 444 crore in September last year and received 23.56 lakh retail applications. In July this year, Clean Science had raised Rs 1,547 crore from the market and received 23.50 lakh applications.
23.30 lakh applications in HDFC AMC
In 2018, HDFC Asset Management Company had raised Rs 2,800 crore from the market. It had received the highest number of 23.30 lakh applications at that time. After this, 22.02 lakh retail applications were received in the IPO of Mrs. Bectors in December last year. This company had raised Rs 541 crore from the market. In 2021 Lakshmi Organics IPO received 20.81 lakh retail applications, while Nazara Tech received 20.83 lakh retail applications.
GR 20.85 lakh applications in infra
GR listed this week 20.85 lakh retail applications were received in Infra. These three companies had raised between Rs 583 to 962 crore. The issue of Nazara Tech was filled 175 times. In 2007-08, when the IPO market was booming, the applications of retail investors used to be only between 3 to 5 lakhs. However, this figure was much higher in Reliance Power, which came in 2008. At that time the issue of Reliance Power was filled more than 80 times.
The effect of the market boom and the benefit of listing
According to analysts, the way the market is booming and every IPO listing is filling the bags of investors, in such a way everyone wants to earn profit by investing money. Out of the total 38 issues that came last year, 34 are trading at higher rates than their IPO price. Out of this, the shares of 10 companies are currently running at more than double the price.
Technology increased the number of retail investors
Technology is also one of the reasons for the increase in the number of retail investors. Earlier, for an IPO, investors had to fill up a physical form. Then had to wait for listing for 15 days. But now everything is happening through mobile applications. Also, listing is done within a week. There is a rule for retail investors to invest a maximum of Rs 2 lakh in IPO. But before that at least one lot has to be taken in IPO. The minimum cost of one lot is 15 thousand rupees.
plan to bring in small investors
Markets regulator SEBI is also planning to reduce this lot size to attract smaller investors into the market. In the coming time, the rule of 15 thousand rupees can be reduced to around 8 thousand rupees. Also, the listing time of IPO can also be reduced from 6 working days to 4 or 3 working days. In such a situation, more number of retail investors can increase in the market. More than 2 crore demat accounts have been opened since April 2020, which shows the participation of retail investors.