Initial Public Offerings and Performance Evaluation: Evidence from the Indian Capital Market
<p>This paper attempts to prove the existence of under-pricing of Indian Initial Public Offerings (IPOs). We examine the aftermarket performance for up to 12 months using a sample size of 25 IPOs issued in 2015. The sample reveals a 3% Raw Initial Returns on the first trading day close. Afterm...
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| Format: | Article |
| Language: | English |
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EconJournals
2018-09-01
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| Series: | International Journal of Economics and Financial Issues |
| Online Access: | https://www.econjournals.com/index.php/ijefi/article/view/6715 |
| _version_ | 1797923812856037376 |
|---|---|
| author | Appala Raju Middi |
| author_facet | Appala Raju Middi |
| author_sort | Appala Raju Middi |
| collection | DOAJ |
| description | <p>This paper attempts to prove the existence of under-pricing of Indian Initial Public Offerings (IPOs). We examine the aftermarket performance for up to 12 months using a sample size of 25 IPOs issued in 2015. The sample reveals a 3% Raw Initial Returns on the first trading day close. Aftermarket performance is measured in terms of Market Adjusted Initial Returns for 30 days, 3 months and 12 months show an average of 6%, 17% and 26% respectively suggesting an over-performance of IPOs. Finally, using parameters employed in previous literature: firm age, market, proceeds, risk, and size, we conduct a regression analysis showing no factor affecting the under-pricing level.</p><p><strong>Keywords:</strong> Initial Public Offerings; Raw Initial Returns; Market Adjusted Initial Returns; Aftermarket</p><p align="left"><strong>JEL Classifications: </strong>F3, G2</p> |
| first_indexed | 2024-04-10T14:52:00Z |
| format | Article |
| id | doaj.art-39eac3e3cad748a2831879d420b8ec21 |
| institution | Directory Open Access Journal |
| issn | 2146-4138 |
| language | English |
| last_indexed | 2024-04-10T14:52:00Z |
| publishDate | 2018-09-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Economics and Financial Issues |
| spelling | doaj.art-39eac3e3cad748a2831879d420b8ec212023-02-15T16:07:34ZengEconJournalsInternational Journal of Economics and Financial Issues2146-41382018-09-018559633432Initial Public Offerings and Performance Evaluation: Evidence from the Indian Capital MarketAppala Raju Middi0CHRIST UNIVERSITY<p>This paper attempts to prove the existence of under-pricing of Indian Initial Public Offerings (IPOs). We examine the aftermarket performance for up to 12 months using a sample size of 25 IPOs issued in 2015. The sample reveals a 3% Raw Initial Returns on the first trading day close. Aftermarket performance is measured in terms of Market Adjusted Initial Returns for 30 days, 3 months and 12 months show an average of 6%, 17% and 26% respectively suggesting an over-performance of IPOs. Finally, using parameters employed in previous literature: firm age, market, proceeds, risk, and size, we conduct a regression analysis showing no factor affecting the under-pricing level.</p><p><strong>Keywords:</strong> Initial Public Offerings; Raw Initial Returns; Market Adjusted Initial Returns; Aftermarket</p><p align="left"><strong>JEL Classifications: </strong>F3, G2</p>https://www.econjournals.com/index.php/ijefi/article/view/6715 |
| spellingShingle | Appala Raju Middi Initial Public Offerings and Performance Evaluation: Evidence from the Indian Capital Market International Journal of Economics and Financial Issues |
| title | Initial Public Offerings and Performance Evaluation: Evidence from the Indian Capital Market |
| title_full | Initial Public Offerings and Performance Evaluation: Evidence from the Indian Capital Market |
| title_fullStr | Initial Public Offerings and Performance Evaluation: Evidence from the Indian Capital Market |
| title_full_unstemmed | Initial Public Offerings and Performance Evaluation: Evidence from the Indian Capital Market |
| title_short | Initial Public Offerings and Performance Evaluation: Evidence from the Indian Capital Market |
| title_sort | initial public offerings and performance evaluation evidence from the indian capital market |
| url | https://www.econjournals.com/index.php/ijefi/article/view/6715 |
| work_keys_str_mv | AT appalarajumiddi initialpublicofferingsandperformanceevaluationevidencefromtheindiancapitalmarket |