 Investigating the myths associated with IPOs of small and medium enterprises: the case of IndiaGeet Kalra and Nirali Kansara International Journal of Indian Culture and Business Management, 2017, vol. 14, issue 4, 393-405 Abstract: Small and medium sized enterprises play a major role in the sustainable development of a nation, creating employment opportunities and enhancing trade opportunities. India, being a developing nation has most of its enterprises operating at a small/medium scale. Raising capital through public offerings plays a crucial role in the beginning of the life cycle of small scale enterprises. However, due to lesser liquidity, critical size, informational asymmetry and lack of suitable markets, these SMEs suffer an acute disadvantage. There has been an increase in the number of SME-IPOs in the past five years. This paper aims at studying the effect of different IPO variables such as issue size, issue price, under-pricing/overpricing, percentage net, etc. on the short and long term after-returns of the SMEs. After critical analysis, it has been found that IPO variables do not contribute significantly to the short term returns for SME because of lesser liquidity in the stock markets. Keywords: development; long term after returns; small and medium sized enterprises; SMEs; under-pricing; short term returns; IPO; India. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ids:ijicbm:v:14:y:2017:i:4:p:393-405 Access Statistics for this article More articles in International Journal of Indian Culture and Business Management from Inderscience Enterprises Ltd |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.