Research Scholar, University School of Management, Kurukshetra University, Kurukshetra - 136 119 (Haryana)
Online published on 25 March, 2015.
From last decades, an initial public offering market had faced very ups and downs while investing in the IPOs. The initial public offering is the first sale of the offerings to the public through stock exchanges. This research paper seeks to analyze the IPO pricing performance from the day of listing to different time frames conducted during 2009 to 2013. The sample of 108 IPOs are considered for analyses whether it is overpriced and underpriced. To achieve the objective of this study, CAPM evaluation techniques are used to find out the return and risk simultaneously. These performance measures are Sharpe's, Treynor's and Jensen's measures and the return calculation resulted that the IPOs are overpriced.
Initial public offering, stock markets, underpricing, overpricing, fixed price offer, book building, capital asset pricing model
