After Market Pricing Performance of Initial Public Offerings (IPOs)

Abstract

Detailed review of literature in Indian and foreign context have empirically documented IPOs anomaly. This paper attempts to study immediate and short- to long-run performance of IPOs in India for the period January 2004 to December 2013. The present paper evaluates IPOs’ performance from initial day to long-term period based on average abnormal return, cumulative abnormal return, buy and hold abnormal return, wealth relative, and market adjusted abnormal return. The paper concludes that IPOs are a good bet to rely upon from immediate to short run and at most till medium term.