Pricing and performance of IPOs: Evidence from Indian stock market

Artikel

This study examines listing day performance of IPOs, book-built and fixed-price IPOs, post-listing aftermarket performance of IPOs, book-built and fixed-price IPOs in the Indian stock market. We examine pricing as well as long run performance of 464 (365 book-built IPOs and 99 fixed-price IPOs) Indian IPOs that went public between 2001 and 2011. The study covers 15 years from the financial year 2001 to 2015. Analysis of the results reveals that compared to fixed-price IPOs, book-built IPOs are underpriced by lesser magnitude. Moreover, book-built IPOs are associated with negative cumulative average abnormal returns (CAARs) up to five years and beyond, the negative CAARs associated with fixed-price IPOs turn positive after one and one-half year and continue to be positive thereafter.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Journal: Cogent Economics & Finance ; ISSN: 2332-2039 ; Volume: 6 ; Year: 2018 ; Issue: 1 ; Pages: 1-20 ; Abingdon: Taylor & Francis

Classification and Topics

• Classification: Wirtschaft ; General Financial Markets: General (includes Measurement and Data) ; Asset Pricing; Trading Volume; Bond Interest Rates ; Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
• Subject: IPOs ; underpricing ; underperformance ; book-building ; fixed-price IPO

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Hawaldar, Iqbal Thonse ; Kumar, K.R. Naveen ; Mallikarjunappa, T.
• Event: Veröffentlichung
• (who): Taylor & Francis
• (where): Abingdon
• (when): 2018

Further information

• DOI: doi:10.1080/23322039.2017.1420350
• Handle: http://hdl.handle.net/10419/194749
• Last update: 10.03.2025, 11:43 AM CET