The Security Exchange Board of India (SEBI) is considering decreasing the minimum application size for IPOs to help provide higher subscriptions for retail investors. They are planning to decrease the size from Rs.15,000 to Rs.7,500.
Last year a high number of retail investor applications was noted and there were also many successful IPOs. Some IPOs witnessing retail investors’ subscriptions were Mrs. Bectors Food Specialities (68 times), Happiest Minds Technologies and Co. (70.94 times) and Mazgaon Dock (36 times). Retailers, however, were given fewer shares than stated in their applications.
Amit Tandon, managing director of IAS proxy service, said that SEBI wouldn’t have to worry about participation of retail investors in IPOs if they propel the investors towards mutual funds.
