EVALUATING THEFEATURES AND PERFORMANCE OF INDIAN IPO’S

Abstract

This paper aims to examine the outcomes and traits of initial public offerings (IPOs) made by Indian companies listed on the Bombay Stock Exchange during the course of the previous ten years, from 2012 to 2022. The study aims to assess IPO performance based on the type of return it generated on the first day of listing. Any company's listing is believed to be put to the test on the first day, and how well it does on that day foreshadows the adage that "the first impression is the best impression." In order to examine the performance of IPOs, the current work used the event study approach, in which an event window was formed with a base of 50 days. For these 50 days, average abnormal returns (ARR) and cumulative average abnormal returns (CAAR) were determined. The benchmark index used to determine the market adjusted return was the BSE SENSEX. On the basis of the type of return on the first trading day, the study made an effort to verify IPO performance in India. The data revealed that Indian initial public offerings (IPOs) underperformed regardless of the type of return on the first day of listing. The data also shows that the companies that had a negative return on the first day of trading performed significantly worse than the companies that had a positive return. The purpose of this study is to gather data to identify companies that have outperformed and underperformed from their initial trading day.