Retail investors in top gear at IPOs, drive oversubscriptions Mayur Bhalerao mayur.bhalerao@livemint.com MUMBAI C ompanies listing their shares on the stock markets are basking in the frenzied attention of individual investors, a trend expected to continue into next year and make up for the tepid enthusiasm of institutional investors. The initial public offerings of Happy Forgings, RBZ Jewellers, and Credo Brands Marketing were oversubscribed on Daylon Tuesday, while those of Muthoot Microfin, Suraj Estate Developers and Motis ons Jewellers continued to attract strong retail interest on their second day. The retail portion of RBZ Jewellers' IPO was oversubscribed by 4.5 times, followed by Mufti Jeans owner Credo Brands (3.2 times) and Happy Forgings (three times). Motisons Jewellers' IPO was oversubscribed by a staggering 64.3 times by retail investors on the second day, followed by Muthoot Microfin (four times) and Suraj Estate (3.8 times). Institutional investors such asqualified institutional buyers remained largely on the sidelines for Happy Forgings, RBZ Jewellers and Credo Brands Good Show The IPOs that were oversubscribed on Day 1 No. of times subscribed on Day 1 IM Retail Individual Investors (RIls) Non Institutional Investors (Nlls Total 2.31 2 2.27 4.53 8 3.28 LZ.OB RBZ Jewellers Credo Brands Happy Forgings Marketing, with less than 10% participation. Motisons Jewellers, Muthoot Microfin and Suraj Estate Developers, however, attracted Q1 B interest Source: NSE with participation of 66%, 46% and 12%, respectively. Kranthi Bathini, director of equity strategy at WealthMills Securities Pvt Ltd, attributed the overwhelming retail interesttoa "strong retail presence inthe primary market, fuelled by ample liquidity and hasslefree digital access". "Recent IPOs like Tata Technologies and IREDA's oversubscription and stellar post-listing gains have ignited a retail mania for quick profits," he said. "While this enthusiasm might persist in 2024 if marketsremain positive, caution is crucial. Investors should prioritise understanding the business fundamentals ofcompanies before applying for IPOs, especially those seeking long-term value." Overall, Happy Forgings, RBZ Jewellers and Credo Brands Marketing registered oversubscription by 2.3 times, 2.2times, and 2 times, respectively. Motisons Jewellers raked in an overall oversubscription rate of 51.3 times on Day 2, followed by Muthoot Microfin and Suraj Estate at 2.8and 2.4 times, respectively. Non-institutional participants played asignificant role, with RBZ, Happy Forgings and Credo Brands seeing ratios of 71% times, 3.6 times and two times, respectively. Motisons, Muthoot Microfin and Suraj IPO were oversubscribed by 69.59 times, three times, and two times, respectively.