Asian Journal of Management

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Growth Performance of Indian IPO Market Since Liberalisation


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1 Department of Commerce, University of Delhi, India
     

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The present study analyses the growth patterns of Indian IPO market since liberalization. It studies the general and specific trends in IPO Market from 1992-2015. The general trends in the IPO market are given in the form of six phases starting from the pre-liberalization era to the post-liberalization era. The specific trends are studied in three variables- Number of IPOs, Market Capitalisation and average size of the issue. With the help of regression analysis, the growth rates per annum are calculated for number of IPOs, the amount of IPOs and the average size of IPOs. The calculated growth rates are tested for significance by observing the p-values. The results are highly significant and show that the amount raised through IPOs have grown at a rate of 11.5% p. a compounded annually and average size of IPOs has grown at a rate of 23% p. a compounded annually whereas the number of IPOs have declined justifying the fact that with liberalization, markets have assumed maturity and become more efficient in discriminating between the ‘good’ and the ‘bad’ issues.

Keywords

Indian IPO Market, Liberalisation.
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  • Growth Performance of Indian IPO Market Since Liberalisation

Abstract Views: 246  |  PDF Views: 0

Authors

Amit Kumar Singh
Department of Commerce, University of Delhi, India

Abstract


The present study analyses the growth patterns of Indian IPO market since liberalization. It studies the general and specific trends in IPO Market from 1992-2015. The general trends in the IPO market are given in the form of six phases starting from the pre-liberalization era to the post-liberalization era. The specific trends are studied in three variables- Number of IPOs, Market Capitalisation and average size of the issue. With the help of regression analysis, the growth rates per annum are calculated for number of IPOs, the amount of IPOs and the average size of IPOs. The calculated growth rates are tested for significance by observing the p-values. The results are highly significant and show that the amount raised through IPOs have grown at a rate of 11.5% p. a compounded annually and average size of IPOs has grown at a rate of 23% p. a compounded annually whereas the number of IPOs have declined justifying the fact that with liberalization, markets have assumed maturity and become more efficient in discriminating between the ‘good’ and the ‘bad’ issues.

Keywords


Indian IPO Market, Liberalisation.

References