Initial Public Offer (IPO) And Stock Market Performance

Abstract

The success of initial public offers (IPOs) in India is the subject of this master's thesis. It centres on the performance of companies following an IPO, with an emphasis on listing gains and long-term performance (in relation to the market average). With a thorough examination of one of the largest initial public offerings (LICs), the thesis makes use of data from 40 IPOs that were listed on the National Stock Exchange (NSE) between January 2022 and December 2023. In order to determine whether the initial price fluctuations are substantial and long-lasting, it computes anomalous returns.By offering insights into the variables influencing IPO performance, the study hopes to assist investors, businesses, and policymakers. This can assist investors in making well-informed investment decisions, companies in making better decisions about going public, and legislators in developing efficient laws for the Indian IPO market.Because it explicitly targets the Indian market and takes into account a number of variables influencing IPO performance, the research is novel. Both domestic and foreign participants in the Indian financial system can benefit from knowing this information. KEY WORDS: INDIAN IPO, LISTING GAINS, POST-LISTING PERFORMANCE, STOCK MARKET.