Price eficiency of initial public offerings in India

The new issue market deals with the new securities for the first time. The success of new issue market also depends on pricing of IPOs. There can be either underpricing or overpricing. Now a days the after market performance of IPOs has received increased attention. The present paper is carried out to evaluate price efficiency of IPOs in India and to study factors which play important role in IPOs. This study found that among new issues of all sectors taken for this study, the issues of pharmaceutical industry have generally realized positive returns expect one or two months.