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Year : 2017, Volume : 17, Issue : 2
First page : ( 157) Last page : ( 166)
Print ISSN : 2231-0649. Online ISSN : 2231-0657.
Article DOI : 10.5958/2231-0657.2017.00019.2

Pricing strategy of initial public offerings (IPOS): An analysis of indian companies

Rath Ashok Kumar1Professor in Finance (MBA)

1Trident Academy of Technology, Bhubaneswar, Odisha, India Email id: ashok.rath@yahoo.co.in

Abstract

In the last 3 years, about 137 initial public offerings (IPOs) have been issued. It has been observed that mostly all of them were overvalued at the time of the issue. In addition, it has also been observed that currently about 64% of them are being traded at a price higher than their market price and about 25% are being traded at a price below the market price of the IPO and about 11% are being traded at a price close to the market price. Thus, to study about the performance of the IPOs, a sample of 15 IPOs has been selected comprising mostly those that have a large difference between their issue price and the book value.

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Keywords

Pricing, Strategy, Performance, Sample, Market, Issue.

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