The Relationship between IPO Underpricing Phenomenon & the Underwriter’s Reputation

Satyendra Kumar Sharma () and Ankit Seraphim ()
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Satyendra Kumar Sharma: Faculty BITS Pilani, India
Ankit Seraphim: Faculty BITS Pilani, India

Romanian Economic Journal, 2010, vol. 13, issue 38, 181-209

Abstract: The primary focus is on studying the under pricing phenomenon in Indian IPO markets. The paper examines the link between the reputation of underwriters to an IPO issue & the level of under pricing of that issue. The underwriters of high reputation have a pricing behavior which is distinct from underwriters in other markets. The investment banks are compared on the basis of the number of issues managed; deal value, syndicate size etc & the top banks were found to under price less as compared to their lower ranked counterparts. The post listing returns are directly related to the number of times the IPO issue is oversubscribed. The study is based on Indian IPO offerings.

Keywords: IPO; Post Issue Promoter Holding(PIPH); Offer size; Syndicate size; Underpricing; Underwriters; List price; Issue price; Lead managers; Price band; Age of firm; Investment Bank Prestige; Oversubscription (search for similar items in EconPapers)
JEL-codes: C30 G24 N25 (search for similar items in EconPapers)
Date: 2010
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:rej:journl:v:13:y:2010:i:38:p:181-209

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