The IPO market is changing. The SEBI study shows it clearly.
In April 2022 two things happened: RBI capped NBFC funding for HNIs at ₹1 crore, and SEBI moved from pro-rata to lottery for HNI allocations. Big-ticket HNI applicants per IPO dropped from 626 to 20. Oversubscription in the HNI category fell from 38x to 17x. Exit rates within one week of allotment dropped from 70% to 25%.
HNIs are buying less but holding longer. The market seems to be working the way it’s supposed to.