*Research Scholar, Dept of Management, Rayalaseema University, Kurnool. A.P., Hyderabad, India. Email Id: cvkumar@ibsIndia.org
**Dean and Professor Institute of Public Enterprise Hyderabad, India. Email id: ssmurthy@ipeindia.org
Online published on 9 February, 2018.
Understanding the pricing of IPOs has been an interesting area of research both in India and abroad. In the existing literature many factors such as ownership retention, size of the issue, age of the firm, debt equity ratio, earnings per share, net asset value per share, venture capital backing, underwriters reputation etc have been studied to understand their influence in the pricing of IPOs. It has been observed that many IPOs are underpriced as on the first-day of listing and these factors contribute to such phenomenon. An attempt is made to find out if Net-worth to Total Assets, Return on Net-worth, also would influence the degree of underpricing of IPOs in the Indian context. This paper studies the data of IPOs during 2003–2017 to find out the influence of various factors using Independent Sample “t” test.
IPO, underpricing, return on net worth, Net-worth to total assets
