Economics at your fingertips  

Initial Public Offerings and Performance Evaluation: Evidence from the Indian Capital Market

Appala Raju Middi
Additional contact information
Appala Raju Middi: Department of Management, Christ University, India

International Journal of Economics and Financial Issues, 2018, vol. 8, issue 5, 59-63

Abstract: This paper attempts to prove the existence of under-pricing of Indian Initial Public Offerings (IPOs). We examine the aftermarket performance for up to 12 months using a sample size of 25 IPOs issued in 2015. The sample reveals a 3% Raw Initial Returns on the first trading day close. Aftermarket performance is measured in terms of Market Adjusted Initial Returns for 30 days, 3 months and 12 months show an average of 6%, 17% and 26% respectively suggesting an over-performance of IPOs. Finally, using parameters employed in previous literature: firm age, market, proceeds, risk, and size, we conduct a regression analysis showing no factor affecting the under-pricing level.

Keywords: Initial Public Offerings; Raw Initial Returns; Market Adjusted Initial Returns; Aftermarket (search for similar items in EconPapers)
JEL-codes: F3 G2 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link) (application/pdf) (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

International Journal of Economics and Financial Issues is currently edited by Ilhan Ozturk

More articles in International Journal of Economics and Financial Issues from Econjournals
Bibliographic data for series maintained by Ilhan Ozturk ().

Page updated 2018-09-29
Handle: RePEc:eco:journ1:2018-05-9