IPO Flipping, Risky Trades, Debt: A Dangerous Game Young Indians Are Playing

Data shows retail traders under 30 are losing big, often with borrowed resources

- Abhishek Dadhwal, Rasmeet Kohli & Pradiptarathi Panda

to exit quickly with listing gains. Sebi data shows that 50% of IPO shares allotted to individuals were sold within a week of listing. Of the 80 IPOs listed between December 2024 and March 2025, 57 posted average listing gains of 40%, while only 14 listed at a loss—yet these bets often backfire for the uninformed.

This behaviour also reflects the disposition effect—where investors rush to sell IPOs with early gains while continuing to hold those that list at a loss, hoping to recover eventually.

Notably, almost half the demat accounts active in IPOs during 2021-23 were opened after the Covid-19 pandemic, reflecting the new wave of first-time, digitally savvy investors—many of whom may lack adequate financial education.

Interestingly, the subscription levels in the non-institutional investor (NII) category halved from 38 times to just 17 times during this period, signalling waning interest from seasoned investors even as retail participation soared.

Where is the money coming from?