1Head & Associate Professor, Department of Business Administration, PSGR Krishnammal College for Women, Coimbatore, India
2Research Scholar, University of Bahrain, Bahrain
3Research Scholar-PhD, Department of Business Administration, PSGR Krishnammal College for Women, Coimbatore, India
Online published on 3 April, 2017.
Initial public offerings are gaining importance worldwide as an important source of funds for the companies to accelerate their growth by using the mobilised funds to implement innovative strategies as well as considered as an important tool for investment since it offers huge profits on the listing day. In this study the short run performance of the companies is analysed to understand the anomaly of abnormal returns as well long term performance to analyse the performance of the IPO's in the long run. The period of study is from Jan 2013-Dec 2014. The sample for the study includes 9 companies listed in National Stock Exchange of India pertaining to the study period. The results of this study will throw light on the performance of the IPO's which are majorly considered as a speculative tool and hence aid in better decision making for the investors. The findings will also help conclude if IPO can be a long term investment tool or a speculative opportunity to earn booming profits.
Initial Public offering, Short term returns, long term returns, abnormal returns
