Cities that Make IPOs Successful in India

Economic Times 11 May 2007, Page 18

Over 94% of the money in IPOs comes from 15 cities.

Mumbai (30%)
Ahmedabad (25%)
New Delhi (9%)
Jaipur (5%)
Rajkot (6%)
Kolkata (4%)
Baroda (3%)
Chennai(2%)
bangalore (2%)
Bhavnagar (2%)
Surat (1.5%)
Jamnagar (1.5%)
Indore (1%)
Hyderabad (1%)
Chandigarh (1%)
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Total 94%
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top 5 account for 75%

Merchant bankers make it a point to aggressively promote the offering in Mumbai, Delhi, Ahemdabad, Rajkot, Bhavanagar, Delhi, and Jaipur. vigrous effort is also taken to pass IPOs through local broker of these places to their retail clients.

Brokers in turn lend money to investors and cajole them to subscribe for IPOs. Broekrs are paid commission by lead managers for ensuring good retail participation.