Since July, the exchanges have introduced a series of stringent norms to increase stability and transparency in the market, which has resulted in lower subscriptions and increased listings.
According to data analyzed by ETMarkets over the past three months, the average listing day profit fell to 30% in September from 56% in August and 71% in July. For comparative purposes, the IPO data for July is taken from July 5, when the NSE introduced a 90% opening price cap on SME IPO listings.
Further, only 5 IPOs were listed at a maximum price of 90% in September against 9 in August and 10 in July. About half of the 35 IPOs listed in September are trading below the issue price.
Investor response also seems to be on a downtrend in the last two-three months. In September, only 14 SME IPOs received 100x subscription, down from a high of 20 IPOs in July.