Wealthy Investors: The IPO of NTPC Green Energy Limited, a subsidiary of NTPC's renewable energy sector, closed on 22 November 2024 after being subscribed only 2.55 times. But in this IPO, the 15 percent shares reserved for high-networth individuals i.e. rich investors could not be fully subscribed. The number of shares reserved for rich investors could be filled only 0.85 times. It is clear from this that the rich investors, on whose strength the IPO market was abuzz, seem to be disappearing. 

IPO is not getting HNI investors! 

NTPC Green Energy's IPO is not the first IPO from which rich investors have kept a distance. In fact, in the last one and a half months, the response of high-net-worth individual investors to invest in all the IPOs of companies that have come to the capital market to raise money through IPOs has been very weak. 

Swiggy-Hyundai Motor kept distance from IPO!

In the IPO of NTPC Green Energy, 122,222,222 shares were offered for non-institutional investors and applications were received for only 10,44,99,2598 shares which is 0.85 times the total shares. Earlier, online food delivery and quick commerce company Swiggy had raised Rs 11,327 crore through IPO. In that, the number of shares reserved for non-institutional investors i.e. rich investors could be filled only 0.41 times. Hyundai Motor India, which brought the biggest IPO in the history of Indian stock market, raised Rs 27870 crore. And high-net-worth individual investors kept away from this IPO too and the number of shares reserved for these investors in this IPO was filled only 0.60 times. 

Heavily invested in Wari Energies IPO

Niva Bupa Health's IPO of Rs 2200 crores was launched. And in this IPO too, the quota reserved for rich investors could not be filled. Only 0.71 times the number of shares reserved for these investors were filled. In Acme Solar Holdings' IPO, the number of shares reserved for non-institutional investors was somehow filled. Whereas in Wari Energies' Rs 4321 crores IPO, rich investors had invested heavily and the number of shares reserved for them was subscribed 65 times.

Why are wealthy investors keeping their distance? 

According to market experts, the ongoing decline in the stock market since the last week of September, the fall in the grey market price (GMP) of IPOs, the expensive price-band of big IPOs have driven high-net-worth individual investors away from the IPO market.