According to an analysis by Motilal Oswal Financial Services (MOFSL)., it reads almost 52 percent of IPO investors sold shares on the listing day in the first four months of the ongoing fiscal year while another 20 percent sold the allotted shares within the first week of listing on stock exchanges.

Around 64 percent of the initial public offering (IPO) clients applied for at-least two such public issues, according to the broking and distribution business of MOFSL.

The data showed that around 5.7 lakh of Motilal investor clients subscribed to initial share sales in just 4 months of 2021-22 compared to 5.1 lakh in the entire preceding fiscal year. Around two-thirds of overall IPO clients have been onboarded from three states -- Gujarat, Rajasthan and Maharashtra.

MOFSL cited this exponential surge in numbers from 17 IPOs in comparison to 36 IPOs in the last fiscal year. It, further, said 61 percent of its clients made an online subscription for IPO shares. Glenmark Life sciences received the highest online penetration with 68 percent of clients and 71 percent of the overall investment value coming through online channels.

"Many companies are planning to raise money through primary markets in the remainder of the financial year. With economic turnaround taking shape and favorable general market conditions, IPO is expected to remain a preferable investment avenue for FY22," Ajay Menon, Whole Time Director & CEO, Broking & Distribution, MOFSL said.

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