Investors now wait till last minute to put in IPO bids

Between 65% and 80% of all applications pour in on the final day of the bidding window

- Mayur Bhalerao

India is witnessing its strongest primary market cycle, but beneath the fundraising euphoria lies a dramatic shift in investor behaviour: a growing tendency to wait until the very last hours of an initial public offering (IPO) to place bids.

A Mint analysis of subscription trends since 2022 reveals that between 65% and 80% of all applications now pour in on the final day of the bidding window. This pattern, visible across major IPOs from Tata Capital to Lenskart, signals a fundamental change in how India invests in new listings.

The first two days of an IPO, which were once periods of steady accumulation, now typically account for a mere 20-40% of total bids, according to Prime Database.

The skew is even more pronounced in large offerings such as Tenneco Clean Air, which received staggering 93% of its bids on the final day, followed by Orkla India (92%), LG Electronics India (91%), and Lenskart Solutions (86%). This marks a sharp departure from the pre-2020 era, when subscriptions built up more gradually and retail interest often peaked a day earlier.

The numbers underscore a sustained trend. In 2022, the median share of bids received on Day 3 was 65% of total bids. This surged to 81% in 2023 and has remained elevated at around 80%. This means that nearly four out of every five applications in recent IPOs were submitted on the last day.