The initial listing performance of Indian IPOs

Abstract

Describes the environment for making initial public offerings (IPOs) in India and the process itself; and discusses the applicability of various research explanations for underpricing to the Indian Market. Suggests that it will be greater for new firms and issues managed by reputable merchant bankers; and analyses 1992‐1994 data on 386 IPOs to assess their performance. Shows that issues with high risk and/or smaller offer prices are more underpriced; and that returns are strongly correlated with subscription levels. Discusses the underlying reasons for this and the implications for public policy.

Citation

Krishnamurti, C. and Kumar, P. (2002), "The initial listing performance of Indian IPOs", Managerial Finance, Vol. 28 No. 2, pp. 39-51. https://doi.org/10.1108/03074350210767681