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Price Performance of IPOS in Indian Stock Market

Author

Listed:
  • Ravi Kiran

    (School of Management and Social Sciences, India)

Abstract

The present study has been undertaken to gauge the underpricing in NSE in the short run periods, i.e., from the listing day to the six months after the listing and for the long period. The results depict that the presence of underpricing. The study also tries to analyze the influence of factors on IPOs pricing performance. The results show that these factors viz. Subscription level, Issue size, Listing lead time and Age influence the initial returns, i.e., R_Ret. of the listing day of the company.

Suggested Citation

  • Ravi Kiran, 2011. "Price Performance of IPOS in Indian Stock Market," EuroEconomica, Danubius University of Galati, issue 30, pages 73-97, November.
    • Handle: RePEc:dug:journl:y:2011:i:30:p:73-97
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    File URL: http://journals.univ-danubius.ro/index.php/euroeconomica/article/view/918/895
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    References listed on IDEAS

    as
    1. Veronesi, Pietro & Pástor, Luboš, 2003. "Stock Prices and IPO Waves," CEPR Discussion Papers 4002, C.E.P.R. Discussion Papers.
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    4. Jay R. Ritter & Ivo Welch, 2002. "A Review of IPO Activity, Pricing, and Allocations," Journal of Finance, American Finance Association, vol. 57(4), pages 1795-1828, August.
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    6. Jegadeesh, Narasimhan & Weinstein, Mark & Welch, Ivo, 1993. "An empirical investigation of IPO returns and subsequent equity offerings," Journal of Financial Economics, Elsevier, vol. 34(2), pages 153-175, October.
    7. Ritter, Jay R, 1984. "The "Hot Issue" Market of 1980," The Journal of Business, University of Chicago Press, vol. 57(2), pages 215-240, April.
    8. Mauer, David C. & Senbet, Lemma W., 1992. "The Effect of the Secondary Market on the Pricing of Initial Public Offerings: Theory and Evidence," Journal of Financial and Quantitative Analysis, Cambridge University Press, vol. 27(1), pages 55-79, March.
    9. Daying Yan & Jun Cai, 2003. "Long-Run Operating Performance of Initial Public Offerings in Japanese Over-the-Counter Market (1991–2001): Evidence and Implications," Asia-Pacific Financial Markets, Springer;Japanese Association of Financial Economics and Engineering, vol. 10(2), pages 239-274, September.
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