Abstract
Objectives: (a) To analyse the performance of Indian IPOs in the short term. (b) To determine the significance of abnormal return of the IPOs. (c) To study the impact of over-subscription, profit after tax, promoters’ holdings, issue price and market returns on IPO performance. Design/ Methodology/Approach: This research paper is based on empirical analysis. All the 52 IPO’s listed in the NSE (National Stock Exchange, India) during the year 2018 to 2020 were considered for the study.
Highlights
Initial Public Offering (IPO) refers to the issue of shares by the company directly to the public for the first time
This study found that Indian IPO market provides positive abnormal return to investors on short-run basis (1st and 7th day)
R. (2016) - “A Study on Factors Influencing the Initial Public Offerings (IPO) in the Bombay Stock Exchange (BSE), India: During 20072013” This study has examined the IPO performance in India from 2007 to 2013
Summary
Initial Public Offering (IPO) refers to the issue of shares by the company directly to the public for the first time. The subsequent issue of shares by the company directly to the public is referred to as Follow on Public Offer (FPO). It is really a tricky decision to put the money in a relatively new company. In IPO investing, there is a chance of getting a significant first day capital gains, or longterm capital gains. There is a chance of incurring a significant first day capital loss, or long-term capital loss. Theories (2) Institutional theories (3) Ownership and Control theories (4) Behavioral theories. The theories that support Information Asymmetry theories are: (a) Principal – Agent theory (b) Ex-ante Uncertainty theory (c) Book-Building theory (d) Signaling theory (e) Certification (f) Winner’s Curse theory (g) Entrepreneurial Wealth loss theory (h) Partial adjustment theory
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
