Business India International kerala News

IPO Retail investors sell 50 per cent of their shares in seven days

By our Commercial  Correspondent

Mumbai, Sept 05 (IVC) :  Individual investors sell almost  50 per  cent  of  their shares they acquired in Initial Public Offers (IPO)  within a  week of listing,  according to  a research paper  published  here  recently  by  the  Securities  and  Exchange  Board of India (SEBI).

The ‘Analysis  of Investor Behaviour in Initial  Public Offerings’ looks at investor decisions during  an IPO.
 SEBI  also  found that individual investors excited the IPO shares when they  found a  gain on listing  and  held their  investments when returns were negative, calling  this  the ‘disposition offer’.

 The term is  used to refer  to behavior where an investor prematurely  sells assets that  have made financial gains, even while holding  on  assets that  are  losing money, according to SEBI’s researchers.
Mutual Funds tended to stay invested longer in  IPO  shares and  sold just  three per  cent  within a  week  of listing

Leave a Reply

Your email address will not be published. Required fields are marked *