54% of IPO shares allotted to investors were sold within a week: Sebi study

More than half of the investors in initial public offerings (IPOs) between April 2021 and December 2023 sold the shares within a week of listing, a study by the Securities and Exchange Board of India (SEBI) revealed on Monday.

In light of the increasing participation of retail investors and the heightened oversubscription in recent IPOs, the markets regulator conducted an in-depth study to analyse investor behaviour in Main Board IPOs.

It found "Flipping" behaviour among individual investors who sold 50 per cent of the shares allotted to them by value within a week of listing, and 70 per cent of shares by value within a year.