A Study on Performance of IPOs in Indian Stock Market

Abstract

One of the biggest investment opportunity which is considered by investors is Initial Public Offer (IPO) for which many investors wait to invest in. This paper attempts  to study the performance of IPO over short and long term (one year) that how IPOs generate return over a period of time. And whether investors should invest in IPOs just for speculation that is to take listing gains or they should hold the shares over a period of time to earn fair enough amount of return. Raw Returns, Market Adjusted Excess Returns(MAER) are calculated and Result revealed that nine IPOs studied performed well not only at the time of listing but also investment in the IPOs for long term generated around double digit profits for the investors.

Keyword: -IPO, investors, Raw Returns, MAER.