Domestic mutual funds, insurance companies and foreign institutional investors continue showing strong interest in fundamentally sound IPOs. Market participants note that institutional investors are increasingly focusing on companies with sustainable earnings, experienced management teams and strong corporate governance rather than chasing short-term listing gains.
This trend is expected to create a healthier primary market where quality companies receive better valuations and long-term investor support. Investment bankers believe the growing participation of domestic institutions has also reduced the market’s dependence on foreign capital during periods of global volatility.
