Pricing and Performance of IPOs: Empirical Evidence from Indian Stock Market

Abstract

The Pricing affairs of Initial Public Offerings (IPOs) and their performance in stock market are among the most widely discussed phenomena in economics literature. These two conceptions are critical to an IPO's success or failure. This research paper explores the actual relationship lies between the Pricing of IPOs and their subsequent performance. The study is based on the data of 123 mainstream Indian IPOs which got listed in NSE during 2015 to 2020. The methodical results explain that price adjustment value, percent change in price band value, and offered price value has a significant impact on underpricing/overpricing for selected IPOs. The findings show that, in India, underpricing/overpricing accounts for a higher percentage of IPOs subscription but do not have any impact on the average mean stock.