To Study Factors Affecting Investor Preference, Performance And Returns Regarding IPOs

Abstract

The economy worldwide is growing more and more complex at a rapid pace. The companies are trying various methods and ways to attract investors. The investors have various ways of investment. In current scenario because of the growth of Indian stock market and higher returns in investments in stocks, investors like to invest their money in stocks. IPO one of ways to invest in stock market found to be very lucrative to the investors over the last few decades. In many cases, IPOs has offered maximum return that might transcend their expectation. However it is not a case for all IPOs at all time. This is because number of qualitative and quantitative factors that affects the IPOs. The present study was undertaken to analyze factors affecting investor preference and returns regarding IPOs. This main objective achieved by splitting it into two parts, the first dealing with the preference of investor about the IPOs and other part with the factors various quantitative factors affect return regarding IPOs. For the first objective, a questionnaire was administered to investors who invested in IPOs. After that, researcher is found out the returns of the IPOs in the respective one day, one week, one month and three month.