1Assistant Professor, Department of Business Management, Sri Padmavati Mahila Visvavidyalayam, Tirupati, roopauday.p@gmail.com
2Assistant Professor, Department of Business Management, Sri Padmavati Mahila Visvavidyalayam, Tirupati, nishithareddy511@gmail.com
Online published on 9 August, 2023.
Equity financing is considered a good source of financing since it places no additional financial burden on the company. This study focuses on the growth and achievement of Initial Public Offerings, made by the companies, from April 1st 2020 to March 31st 2022. For this purpose, basic returns and market adjusted returns were calculated for three periods, namely, on the day of listing, 30 days after listing and 90 days after listing. These results were further analysed, using statistical tools like paired t test and ANOVA. It was concluded from the study that under-pricing was very high on the listing day but this trend was reversed later and the gain started declining as the time passed and it subsequently led to the over pricing of the shares.
Equity Financing, Initial Public Offerings, Market Adjusted Returns, Raw Returns