![Open Access](https://i-scholar.in/lib/pkp/templates/images/icons/fulltextgreen.png)
![Restricted Access](https://i-scholar.in/lib/pkp/templates/images/icons/fulltextred.png)
![Open Access](https://i-scholar.in/lib/pkp/templates/images/icons/fulltextgreen.png)
![Open Access](https://i-scholar.in/lib/pkp/templates/images/icons/fulltext_open_medium.gif)
![Restricted Access](https://i-scholar.in/lib/pkp/templates/images/icons/fulltextred.png)
![Restricted Access](https://i-scholar.in/lib/pkp/templates/images/icons/fulltext_restricted_medium.gif)
Short-Run Performance of IPO Market in India
Subscribe/Renew Journal
The main objective of this research paper is to examine the short run performance of IPOs by taking one-month performance. There exists a notion that the performance of IPO stocks has improved in the short run after going public. In this study, the data for short run analysis are taken for 30 days. We try to test the empirically the short run performance for a sample of 89 IPO firms that approached the market during the period 2006-09. We have calculated listing gain, short run gain, short run excess gain and Index growth.
We have used a logistic regression model to test the basic hypothesis, with the help of data on 89 IPOs, from the Indian stock market. The study uses prelisting information on which IPO pricing is based.
In this paper we have seen that many of the IPOs have significant returns on the day of listing but thereafter they do not give much return in the short-run, it shows that market overreacts to the initial public offers.
Keywords
- Aktas, R., Karan, M. B., & Aydogan, K. (2003). Forecasting short run performance of initial public offerings in the Istanbul Stock Exchange.
- Chen, G., Firth, M., & Kim, J. (2004). IPO underpricing in China’s new stock markets. Journal of Multinational Financial Management, 14, 283-302
- Gunther, S., & Rummer, M. (2006). Hot-Issue Period in Germany: What factors drove IPO underpricing? In: Initial public offerings: An international perspective (1st. ed.), Edited by Greg N. Gregoriou. Burlington: Elsevier,
- Jaitly, S., & Sharma, R. (2004). Pricing of IPOs and their after issue performance in the Indian equity market. Managerial Finance, 30, 29-45.
- Kumar, S. S. S. (2007). Short and Long Run Performance of IPOs in Indian Capital Market. Indian Institute of Management, Kolkata, Working Paper Series/27/ FIN/2007/15
- Kumar, K. C. J. S., & Vikkraman, P. (2008). Investor's preference on IPOs in India. Academic journal article from Global Business and Management Research: An International Journal.
- Ljungqvist, A., & Wilhelm, W. J. (2003). IPO pricing in the dot-com bubble. Journal of Finance, 58, 723-752.
- Ranjan, N., & Madhusoodanan, T. P. (2004). IPO Underpricing, Issue Mechanisms and Size. Institute for Financial Management and Research, Chennai.
- Singh, S., & Singh, B. (2008). Oversubscription and IPO Underpricing: Evidence from India, ICFAI. Journal of Applied Finance, 14, 65-73
- Sinha, N. R., & N. R., Madhusoodanan, T. P. (2004). IPO Underpricing, Issue Mechanisms, and Size. Retrieved from http://ssrn.com/abstract=520744 or http://dx.doi.org/10.2139/ssrn.520744
![](https://i-scholar.in/public/site/images/abstractview.png)
Abstract Views: 239
![](https://i-scholar.in/public/site/images/pdfview.png)
PDF Views: 2