Why Retail Investors Rush to Apply for IPOs?
In recent years, there’s been a noticeable trend in India’s financial landscape—an overwhelming rush of retail investors applying for IPOs. Whether it’s a tech unicorn debut or a legacy brand going public, each new IPO seems to attract thousands, sometimes millions, of eager applications from individuals across the country.
So, what’s behind this enthusiasm? Why are retail investors—many of them first-timers—so quick to invest in IPOs? Let’s explore the key reasons for this rising craze, especially in a dynamic and ever-evolving stock market like India’s.
1. The Allure of Listing Gains
One of the biggest reasons retail investors rush to apply is the potential for listing gains—the profit made between the IPO issue price and the price at which it gets listed on the stock market. These ...