I think it is a good move to increase the retail limit to 2 lakhs. Butit would be wise to put a limit based on the issue size also. Let us say until issue size of 250 crores, retail limit should be 1 lakh and above that it should be 2 lakhs. This would ensure higher participation for bigger issues and decent allotement in case of smaller issue sizes.
Also, they need to consider to increase the current 30-35% allocation to retail category to 50-60%
if retail limit increase upto 2 lakh rupees than all hni invest enter into retail portion and no allotment chances for retail invester in good ipo. My clear advices to sebi is NO.
opening date: October 11 closing date: October 14 issue size: 1250 crore running lead managers: Enam Securities Pvt Ltd, Axis Bank Ltd, Citigroup Global Markets India Pvt Ltd and Kotak Mahindra Capital Company Ltd.
Promoter group holds 99.69% stake in the company, including 31.61% stake of Crompton Greaves, 27.88% of SFSL, 19.92% of SICL and 11.37% of BPHL.
sebi is proposing to increase the retailer limit for ipo form one lac to 2 lac. This is not a good proposal. Instead this, sebi shoud increse retailer share from 30 % to 50 % or more. In case retailer portion does not subscribe fully then unsubscrbed portion might be transfered to institution quota. Increase in limit will increase competetion and retailer will get less shares and invest more money.
It is a good move by SEBI , definitely. 1 lakh limit was set in 2005. Now it is difficult to get good alottment , even if one applies for full amount. in bajaj corp alottment was only 23 shares. SEBI will change to 2 lakhs, because of the upcoming Coal india IPO , where the retail investor portion will be worth around 4500 crores. Now retailers who are having less demat a/c can not employ the amount, even if they have it. The retailers now have only about 3500 crores with existing de-mat a/c. it will be interesting to see how the new increased limit affects the retail subscription.