Bajaj Finance’s home-finance unit’s US$780 million ($1.02 billion) share sale got an enthusiastic response from investors.
Despite the large size, both small retail and wealthy individuals ensured the offering was sold out hours after opening on Monday.
Retail investors have been betting on Indian IPOs this year, chasing the first-day ‘pop’, which has averaged about 30%. However, a study by the market regulator showed that most of these investors end up selling their holdings within a week.
Market volatility revives demand for defensive plays
Defensive stocks are back in vogue as investors look for a haven amid rising global volatility.
The Nifty FMCG index hit a record high on Monday, while the index of state-run enterprises — previously driving the record rally — is nearing correction territory.
See also: A $1.87 bil IPO overbought 400 times shows India stock frenzy
ASK Wealth Advisors, part of the ASK Group, which oversees US$10 billion in managed assets, suggests investors switch toward sectors with favourable risk-reward profiles. Consumer staples and banks are among them.
