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Asian Journal of Research in Banking and Finance
Year : 2017, Volume : 7, Issue : 6
First page : ( 24) Last page : ( 31)
Online ISSN : 2249-7323.
Article DOI : 10.5958/2249-7323.2017.00046.3

An empirical study on evaluation of ipos performance on NSE

Dr. Singh Amit Kumar1, Shrivastav Rohit Kumar2

1Associate Professor, Department of Commerce, Delhi School of Economics, University of Delhi, India. e-mail: amitipo10@gmail.com

2Ph. D Research Scholar, Department of Commerce, Delhi School of Economics, University of Delhi, India. e-mail: rohitkshrivastav@gmail.com

Online published on 22 June, 2017.

Abstract

Initial Public Offers (IPO) option of investment has become most preferred tool for investments now-a-days for the investors especially those who do not know much about the market or we may say the passive investors who just put the money and forget about their investment. It is a well-known fact that the interests of IPO investors are generally influenced by the current market trend and this in turn influence the performance of the IPOs. This paper attempts to evaluates the performance of 152 IPOs introduced during 2010–2016 on NSE. The paper shows listing day gain and one-month returns evaluation. It was analyzed that on an average 11.998% of day listed gain earned by these IPOs whereas these IPOs posted a loss of 3.78% for one-monthreturn. Out of 152 IPOs introduced on NSE, 63.15% were underpriced and 36.84% overpriced.

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Keywords

Initial public offerings, Book-building, Underpricing and Overpricing, IPO Performance, Holding Period Return.

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