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Amidst the economic crisis in the country, people have invested Rs 5 lakh crore in IPOs amid an epidemic.

 

In Surat, there was a long line outside the bank to fill up the IPO form and deposit money in one's own account.
In Surat, there was a long line outside the bank to fill up the IPO form and deposit money in one's own account.

Amidst the economic crisis in the country due to Corona, people's confidence in IPOs of various companies has increased. According to brokerage house and IPO merchant banker, Rs 5 lakh crore has been invested in IPOs after lockdown across the country. Most investors expect more than 80 percent of companies to deliver good returns amid a global epidemic.

Experts say that small investors prefer IPOs to secure investments for less money. This is why the trend towards IPOs has increased. Haren Seth of Ahmedabad-based Kalyan Mayabhai Stock Broker firm says that 60 to 70 per cent of investors in IPOs are middle class. The main reason is the convenience of a small investment. In most IPOs the investor who invests a small amount earns.


This is why IPOs have become the choice of investor:

  • The risk of entering the equity market remains high. Instead the risk in an IPO is low.
  • The IPO company offers the benefit of offering shares at a lower premium to boost credit.
  • The investor is free to book a profit and get a return after the shares are traded.
  • The investor also has the option of withholding profits elsewhere.
  • More than 75 per cent of the companies have been positively listed, making them more profitable.


So much was invested in these five companies:

So much was invested in these five companies


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