Another IPO frenzy begins

So far, during November 2023, IPO investors in India have committed Rs 5.41 lakh crore to the 10 IPOs launched during the month. Given that the bank locates the IPO application amount in ASBA, this is actual money that was put up, not just a paper number. Of course, most of it came back, but it was real money. You could say that money committed to IPOs early in the month, like Cello and Honasa, would have become available again for Tata Tech and others later. This is likely, but even if you count only the IPOs that came simultaneously on November 23 and 24 (IREDA, Tata Tech, Gandhar Oil, Fedbank Financial and Flair), the application amount adds up to Rs 3.6 lakh crore. In contrast, the average monthly SIP inflow for the six months to October 2023 has been Rs 15,585 crore. So, the amount committed for these last five IPOs alone was worth almost two years (23 months and a bit) of SIP inflows. That's truly impressive but in a negative way. SIP culture has indeed come a