International Journal of Research in Finance and Marketing
  • Year: 2017
  • Volume: 7
  • Issue: 4

Underpricing of Initial Public Offerings: An Indian Evidence

  • Author:
  • Sahil Narang1, Vinod Kumar2
  • Total Page Count: 6
  • Page Number: 44 to 49

1Assistant Professor, Dept. of Commerce, M.M. P.G. College, Fatehabad

2HES-II, DSE, Government of Haryana

Abstract

The paper is an endeavor to assess the level of underpricing or overpricing of Initial Public offers during a period of past three years (2014–16). The price behavior of Initial Public Offers has been checked up with the aid of average market adjusted abnormal return (avg. MAAR). The study examines the price behavior of selected Initial Public Offers during past three years and a sample of total 49 companies has been taken for this purpose, consisting 5 IPOs from 2014, 18 IPOs from 2015 and 26 IPOs from 2016. The return on IPO has been computed by taking closing price of IPO on listing date and issue price of the IPO.

Keywords

Market Adjusted Abnormal Return, Annualized Market Adjusted Abnormal Return, Initial Public Offers, Raw Return on IPO, Return on Market Index, Price behavior, Price Performance, Underpricing, Overpricing