Performance of IPO's: Evidence from Indian stock market

Initial public offer refers to the first sale of a company's common shares to general investors through a stock exchange with an intention to raise new and additional capital. The most important objective for companies going into IPOs issue is to raise capital for enlarging the current and potential business ventures. IPO in the present era proves to be most favorable source of finance for successful business which has a potential to grow. The company going for public issue can expect a huge fund flows and it is not mandatory to repay the capital until the company's life time and the new shareholders get a right to future profits distributed by the company. Even though IPO is a low cost source of finance for company yet it is a riskier and costliest form of investment to the investors. This study aims to find out which are the best sectors in 2011 IPOs issues and also analyzing from investor point of view that would have provided maximum return for the invested capital.