Sustainability of IPO Returns in the Indian Equity Market

Abstract

Sustainability of has attracted attention of researchers, policy makers, organisations and stakeholders. In the current era of geo-political uncertainty, sustainability of returns on investment has been a cause of concern for investors and portfolio managers. This study aims to conduct a holistic assessment to thoroughly analyse the Indian Initial Public Offering (IPO) industry over the years 2022–2023. The study will first assess the accuracy of IPO valuation by comparing initial returns with predicted values to ascertain if offers were overpriced or underpriced. A comparison of IPO returns at listing and 90 days after listing has been made with NIFTY 50 returns to measure market reaction and performance by using Wealth Relative Index. Statistical techniques have been employed to gather and evaluate data in order to extract valuable information that investors, financial analysts, and policymakers may use. Both companies and investors must engage in thorough research, maintain transparency, and monitor market trends to navigate the IPO landscape effectively.