The IPO allotment process, now in vogue, features a quota or category for various investors, with those bidding for shares worth up to Rs 1 lakh being classified as retail investors.
In IPOs, which are through the book building process, 50% of the offering is reserved for qualified institutional investors, 35% for retail investors and 15% for high net worth individual investors.
In order to give greater leeway for retail participation in initial public offerings (IPOs), the Confederation of Indian Industry has suggested increasing the share application amount limit for retail investors from Rs 1,00,000 to Rs 10,00,000.
On the recent over-subscription of the retail portion leading to multiple applications from investors, the chamber said a feasible solution to alleviate the practice of multiple applications under the retail quota would be to increase the value limits for retail investors.
In IPOs, which are through the book building process, 50% of the offering is reserved for qualified institutional investors, 35% for retail investors and 15% for high net worth individual investors.
In order to give greater leeway for retail participation in initial public offerings (IPOs), the Confederation of Indian Industry has suggested increasing the share application amount limit for retail investors from Rs 1,00,000 to Rs 10,00,000.
On the recent over-subscription of the retail portion leading to multiple applications from investors, the chamber said a feasible solution to alleviate the practice of multiple applications under the retail quota would be to increase the value limits for retail investors.
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