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Institutional Investors Drive Strong Demand for Large IPOs in Domestic Market
IPO: Large issues in the domestic IPO market are receiving a strong response, primarily due to strong participation from institutional investors. Qualified institutional buyers and large anchor investors are investing heavily in each major IPO, driving the successful issue and boosting retail investor confidence.
Institutional investors are the major reason for the robust reaction to large IPOs in domestic IPOs. These institutional investors are major players who are heavily investing in each of the major issues that are taking place. This is clear since most of the company issues that are taking place are succeeding owing to their contribution.
Qualified institutional buyers (QIBs) subscribed 1.97 times more shares on the first day of the issue, which is worth ₹10,600 crores, and closed on December 16. Non-Institutional Investors (NIIs) subscribed 0.37 times more shares. It got bids of ₹5,490 crores on the first day of the issue. Anchor investors or Large Investors invested ₹3,021 crores in this issue. Additionally, ₹4,815 crores were invested two days before the issue opened.
Investors like SBI, Birla, BlackRock, and JP Morgan made this investment, indicating that large investors are investing heavily in promising companies. Among the large IPOs, QIBs invested 123 times their share in Meesho, worth ₹5,421 crore. Non-institutional investors, or NIIs, invested 39 times. QIBs invested 174 times and NIIs 42 times in Tenneco, worth ₹3,600 crore. Groww, which raised over ₹6,000 crore, saw QIBs investing 22 times and NIIs 14 times. QIBs invested 40 times and NIIs 18 times in Lenskart, worth ₹7,278 crore, which faced questions about its high valuation.
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ICICI Prudential will be the country's fifth fund house to be listed on the stock exchange. Upon listing, it will be valued at ₹1.07 lakh crore (approximately $1.07 trillion). It is the second-largest company in terms of assets under management, with ₹10 lakh crore (approximately $1.07 trillion). Its stock is also cheaper than its already listed rival, HDFC Mutual Fund. HDFC is trading at 45.5 times its earnings, while ICICI Prudential is valued at 40.4 times. This means investors are getting 10% cheaper shares.
