Why do people start withdrawing money?

The reason for this is the greed for huge profits from IPO. You might be surprised to know that most investors do not stay in IPO for long after the allotment of shares. If the IPO gives good returns, they sell the shares within 7 days and withdraw their money. This information has been received from a survey conducted by SEBI. It has been said that investors have different attitudes towards IPO. Investors sell 54 percent of the allotted issue as per valuation within a week.

SEBI has also done a survey

According to a SEBI survey, investors exit IPOs with good listing gains quickly, while they hold on to shares listed in losses. When returns on IPOs were more than 20 percent within a week, individual investors sold 67.6 percent of shares by value. In contrast, when returns were negative, investors sold only 23.3 percent of shares by value.

Status of listed stocks in the past days

According to Samco Securities, as reported in the Economics Times, out of more than 100 mainboard IPOs listed on the exchanges since January 2023, shares of 22 companies closed in an upper circuit of between 5% and 20% on the day of listing. But more than half of these stocks have not been able to maintain the upward momentum in the next one month.

In the last one month, stocks of 18 companies have been listed in the market, out of which 11 stocks fell between 0.4% and 40% in the first month of listing, while eight have given returns between 7% and 90% during this period. According to analysts, investors with short term profits in IPOs should mostly sell on the day of listing.

These stocks started falling

Recently, stocks of many companies including Tolins Tyres, Sri Tirupati Balaji Agro Trading, Orient Technologies and Bajaj Housing Finance have been listed in the stock market. The stocks have also declined after a strong performance on the opening day. Shares of Bajaj Housing Finance have fallen by 15 percent in the second week of listing.