Performance of IPOs - A Detailed Analytical Study of IPOs During 2015-20

Abstract

Initial Public offering (IPOs) are generally a first time offering of a company’s stock to the public. IPOs have had a strong significance all over the world as they act as an essential source of capital for companies to speed up their growth trajectory, as these funds help in the implementing new measures and strategic initiatives necessary for an unperturbed growth. This study includes the analysis of the performance of IPOs for the year [ 2015-2021] in detail and compares it with the short-term performance of a few select IPOs for the same range so as to understand which IPOs returns were more and is there any common factor leading to the same. The sample for this study includes all the IPOs listed in the Indian market for the selected year range. The resulting parameters of this study help in deriving the factors that led to the success or failure of IPOs in the market and provide a better understanding about the important factors involved throughout, Thus the results showcase factors such as brand awareness, Product placement and business models along with Investor sentiments are interconnected and have an effect on the performance of the IPOs. On the contrary, these findings help assess the current aspects of opportunities that lie in the IPO market with respect to long-term investments.