# SEBI summary on investor behaviour in IPOs
**URL:** https://tradingqna.com/t/sebi-summary-on-investor-behaviour-in-ipos/172665
**Category:** IPOs
**Created:** [September 3, 2024, 6:06am UTC](https://tradingqna.com/t/sebi-summary-on-investor-behaviour-in-ipos/172665 "2024-09-03T06:06:13Z")
**Posts on this page:** 5
**Page:** 1
### Author:  [@ShubhS9](https://tradingqna.com/u/ShubhS9)
#### Post date: [September 3, 2024, 6:06am UTC](https://tradingqna.com/t/sebi-summary-on-investor-behaviour-in-ipos/172665/1 "2024-09-03T06:06:13Z")
SEBI yesterday released a study yesterday that highlights the flipping behaviour of investors in the IPO market. Here are some highlights:
Approximately 54% of IPO shares, by value, allotted to investors (excluding anchor investors) were sold within a week of listing.
1. Individual investors sold 50.2% of the shares allotted to them, by value, within a week of listing.
- Non-institutional investors (NIIs) (also known as High Networth Investors (HNIs)) sold 63.3% of their shares by value.
- Retail investors sold 42.7% of their shares by value.
1. Mutual Funds tend to hold onto IPO shares for a longer period, whereas banks typically sell their shares more quickly. Mutual Funds sold only about 3.3% of their allotted shares by value within a week, compared to banks, which sold 79.8%.
2. Investors generally exhibit the “disposition effect,” showing a greater propensity to exit IPOs that exhibit positive listing gains rather than those that incur a loss on listing.
3. Individual investors were more likely to sell shares when they made a profit: they sold 67.6% of their shares by value within a week when returns exceeded 20%, but only 23.3% of shares when returns were negative.
1. Geographically, 39.3% of retail investors were from Gujarat, followed by Maharashtra (13.5%), and Rajasthan (10.5%).
1. Nearly half of all Demat accounts that applied for IPOs between April 2021 and December 2023 were opened post-COVID (i.e., during CY2021-CY2023).
2. In April 2022, SEBI and RBI introduced key policy measures, particularly affecting the NII category. SEBI changed the share allotment methodology for NIIs from a pro-rata basis to a lottery system and further divided the NII category (15% quota) into small-NII (5% quota) and big-NII (10% quota) categories. Concurrently, the RBI imposed restrictions on IPO funding by NBFCs, limiting it to ₹1 crore per borrower. These policy changes led to the following outcomes:
- A reduction in over-subscription under the NII category, from 38 times to 17 times.
- A decline in the number of IPO applications by “Big Ticket NII Investors” (those applying for more than ₹1 crore in IPOs), from around 626 applications per IPO in the pre-policy period (April 2021-March 2022) to 20 applications per IPO in the post-policy period (April 2022-December 2023).
- A reduction in the exit, in terms of the value of shares sold, by “Big Ticket NII Investors,” from about 70% within a week during April 2021-March 2022 to about 25% within a week during April 2022-December 2023.
You can read the full report here: [SEBI | Study - Analysis of Investor Behavior in Initial Public Offerings (IPOs)](https://www.sebi.gov.in/reports-and-statistics/research/sep-2024/study-analysis-of-investor-behavior-in-initial-public-offerings-ipos-_86385.html)
---
### Author:  [@TradeB2B](https://tradingqna.com/u/TradeB2B)
#### Post date: [September 3, 2024, 7:57am UTC](https://tradingqna.com/t/sebi-summary-on-investor-behaviour-in-ipos/172665/2 "2024-09-03T07:57:44Z")
i think new Tax is coming
IPO STE tax - 50%
STE means - IPO short term exit tax
---
### Author:  [@Emily\_Johnson](https://tradingqna.com/u/Emily_Johnson)
#### Post date: [September 3, 2024, 9:25am UTC](https://tradingqna.com/t/sebi-summary-on-investor-behaviour-in-ipos/172665/4 "2024-09-03T09:25:04Z")
nice summary
---
### Author:  [@Joe\_Maxpayne](https://tradingqna.com/u/Joe_Maxpayne)
#### Post date: [September 3, 2024, 10:03am UTC](https://tradingqna.com/t/sebi-summary-on-investor-behaviour-in-ipos/172665/5 "2024-09-03T10:03:49Z")
well… investors did what inverstors do. booked some profit. i bet sebi will now try to prevent retail investors from participation in ipo calling it speculation happening 😀
---
### Author:  [@Vijay\_Sharma1](https://tradingqna.com/u/Vijay_Sharma1)
#### Post date: [September 3, 2024, 3:17pm UTC](https://tradingqna.com/t/sebi-summary-on-investor-behaviour-in-ipos/172665/6 "2024-09-03T15:17:30Z")
Stock market run by Gujrati and Marwari