What drives the oversubscription of IPO’s: evidence from Indian Stock Market
The paper’s objective is to measure the drivers of oversubscription of Initial Public Offerings (IPOs) in India. Data from cross-sections are used in the investigation to analyse 179 IPOs issued from Jan 2009 to Dec 2020 and listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) to...
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| Format: | Article |
| Language: | English |
| Published: |
General Association of Economists from Romania
2023-12-01
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| Series: | Theoretical and Applied Economics |
| Subjects: | |
| Online Access: |
http://store.ectap.ro/articole/1699.pdf
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| _version_ | 1797383137313947648 |
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| author | Dr. Aniruddha DAS Dr. Amith Vikram MEGARAVALLI Dr. A. Sarath BABU |
| author_facet | Dr. Aniruddha DAS Dr. Amith Vikram MEGARAVALLI Dr. A. Sarath BABU |
| author_sort | Dr. Aniruddha DAS |
| collection | DOAJ |
| description | The paper’s objective is to measure the drivers of oversubscription of Initial Public
Offerings (IPOs) in India. Data from cross-sections are used in the investigation to analyse 179
IPOs issued from Jan 2009 to Dec 2020 and listed on Bombay Stock Exchange (BSE) and National
Stock Exchange (NSE) to examine the essential causes of IPO oversubscription. The study uses least
square regression, robust regression and quantile regression approach to study the imperative
factors of oversubscription of IPOs in India. The findings of the study suggest that issue price,
underwriter’s reputation showed positive and significant association with oversubscription and
listing delays and pricing mechanism showed negative and significant association with
oversubscription. For the purpose of understanding the causes of oversubscription, the current study
is restricted to a small number of variables. Future studies should include more variables like
macro-economic variables which effects the oversubscription of IPOs. The study’s conclusions have
repercussions for academics, financial advisors, and regulators. It provides useful insights to
researchers by listing the factors effecting the oversubscription of IPOs in emerging markets like
India. By investigating the connection, this study adds something new to the body of literature on
initial public offerings by examining the relationship between pre-IPO firm action like issue price,
issue size, price mechanism, listing delay, underwriter’s reputation, boom market, oversubscription
and undersubscription from the context of emerging markets like Indian and during post global
financial crisis. |
| first_indexed | 2024-03-08T21:15:27Z |
| format | Article |
| id | doaj.art-9dfb74839a0646dfa7bdea6fa9f60fc7 |
| institution | Directory Open Access Journal |
| issn | 1841-8678 1844-0029 |
| language | English |
| last_indexed | 2024-03-08T21:15:27Z |
| publishDate | 2023-12-01 |
| publisher | General Association of Economists from Romania |
| record_format | Article |
| series | Theoretical and Applied Economics |
| spelling | doaj.art-9dfb74839a0646dfa7bdea6fa9f60fc72023-12-21T18:54:52ZengGeneral Association of Economists from RomaniaTheoretical and Applied Economics1841-86781844-00292023-12-01XXX4476218418678What drives the oversubscription of IPO’s: evidence from Indian Stock MarketDr. Aniruddha DAS0Dr. Amith Vikram MEGARAVALLI1Dr. A. Sarath BABU2 Calcutta Institute of Engineering and Management, Kolkata Institute of Management Technology, Hyderabad Institute of Management Technology, Hyderabad The paper’s objective is to measure the drivers of oversubscription of Initial Public Offerings (IPOs) in India. Data from cross-sections are used in the investigation to analyse 179 IPOs issued from Jan 2009 to Dec 2020 and listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) to examine the essential causes of IPO oversubscription. The study uses least square regression, robust regression and quantile regression approach to study the imperative factors of oversubscription of IPOs in India. The findings of the study suggest that issue price, underwriter’s reputation showed positive and significant association with oversubscription and listing delays and pricing mechanism showed negative and significant association with oversubscription. For the purpose of understanding the causes of oversubscription, the current study is restricted to a small number of variables. Future studies should include more variables like macro-economic variables which effects the oversubscription of IPOs. The study’s conclusions have repercussions for academics, financial advisors, and regulators. It provides useful insights to researchers by listing the factors effecting the oversubscription of IPOs in emerging markets like India. By investigating the connection, this study adds something new to the body of literature on initial public offerings by examining the relationship between pre-IPO firm action like issue price, issue size, price mechanism, listing delay, underwriter’s reputation, boom market, oversubscription and undersubscription from the context of emerging markets like Indian and during post global financial crisis. http://store.ectap.ro/articole/1699.pdf oversubscriptionipo’s determinantsindian stock market |
| spellingShingle | Dr. Aniruddha DAS Dr. Amith Vikram MEGARAVALLI Dr. A. Sarath BABU What drives the oversubscription of IPO’s: evidence from Indian Stock Market Theoretical and Applied Economics oversubscription ipo’s determinants indian stock market |
| title | What drives the oversubscription of IPO’s: evidence from Indian Stock Market |
| title_full | What drives the oversubscription of IPO’s: evidence from Indian Stock Market |
| title_fullStr | What drives the oversubscription of IPO’s: evidence from Indian Stock Market |
| title_full_unstemmed | What drives the oversubscription of IPO’s: evidence from Indian Stock Market |
| title_short | What drives the oversubscription of IPO’s: evidence from Indian Stock Market |
| title_sort | what drives the oversubscription of ipo s evidence from indian stock market |
| topic | oversubscription ipo’s determinants indian stock market |
| url |
http://store.ectap.ro/articole/1699.pdf
|
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