Upto 50% fall: Listing Euphoria’s over for Many New Stocks on D-street:

Most of the Retail investor invest in IPOs based on grey market premium and easy financing leads to oversubscription and no proper price discovery. Retail investor invest in IPOs just for listing gains.
Most of the IPOs in 2020-2021 have oversubscribed and are trading below their listing price. Because oversubscription led by QIB and HNIs sometimes mislead the retail investor. Most retail investor think that if a HNI are investing than there might be a scope of income and they invest likewise.
Lets take a look at some recent IPOs:
Easy trip planner , this issue was subscribed 159.33 times with QIB(78) , HNI(384.26), Retail(70.78) times was listed at ₹212.25 and was issued at ₹186-₹187. Similarly, Nazara technology was subscribed 175.46 was listed at ₹1,971 and currently trading 15.8% below at 1660. Mr Bector foods specialities was subscribed 621 times currently trades at 366.4 which is 26.9% below listing price of 501.