Over 94% IPO applications come from just 15 cities

Rajkot, is one of the five cities that on an average account for nearly 75% of the total application money deposited for each public issue entering the Indian equities market. Mumbai (accounts for nearly 30% of the total application money received), Ahmedabad (roughly 25%), New Delhi (about 9%) and Jaipur (roughly 5%) are the other cities.“If you add 10 more cities — Kolkata (4%), Baroda (3%).

Chennai, Bangalore and Bhavnagar (2% each), Surat and Jamnagar (1.5% each), Indore, Hyderabad and Chandigarh (1 % each) — to the top-five list, you would be able to say that about 94% of the total IPO application money (among retail investors and HNIs) comes from 15 IPO crazy cities in India,” said Haresh Hinduja, vice-president - IPO, Intime Spectrum Registry. “Investors from these cities are very particular about their investments. Some of them even call up share registries to gauge the response of institutional buyers to the issue,” Mr Hinduja added.

Though there has been a gradual decline in interest for IPOs, investors from Mumbai still drive the ‘IPO bandwagon’ in the country. The decline in liking for public issues is attributed to the growing influence of wealth management service providers who offer a wide array for products with healthy returns for a reasonable risk.

Read more in The Economic Times article.