After Market Pricing Performance of Initial Public Offerings (IPOs)

Abstract

Detailed review of literature in Indian and foreign context have empirically documented IPOs anomaly. This paper attempts to study immediate and short- to long-run performance of IPOs in India for the period January 2004 to December 2013. The present paper evaluates IPOs’ performance from initial day to long-term period based on average abnormal return, cumulative abnormal return, buy and hold abnormal return, wealth relative, and market adjusted abnormal return. The paper concludes that IPOs are a good bet to rely upon from immediate to short run and at most till medium term.

IPOs in Indian Stock Market: Analyzing Pricing and Performance of IPO Listed in 2021

“…The relative performance of an IPOs sample depends on the method of examining performance, as one method suggests that this sample underperformed. In contrast, the other suggests superior performance (Pandya, 2016).…”

A Review of IPO Under-pricing Phenomenon in Asia

“…Moreover, covering a sample of 948 Chinese IPOs, Song et al (2014) reported an average initial return of 66%. Komenkul and Siriwattanakul (2016) documented an average initial return of 25.36% for 245 IPOs that were issued in Thailand between . Pandya (2016 reported a cumulated average abnormal return of 15.73% for the study period between 2003 and 2013, using a sample of 183 firms listed on the Indian stock exchange.…”