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A Study on Performance Evaluation of Initial Public Offerings (IPOs) in India during 2007-13

Author

Listed:
  • Srinivasa Rao Dokku

    (Department of Business Administration, P.V.P. Siddhartha Institute of Technology, Vijayawada, India)

  • Rajesh Choudary Jampala

    (Department of Commerce and Business Administration, P.B. Siddhartha College of Arts and Science, Vijayawada, India)

  • P. Adi Lakshmi

    (Department of Business Administration, P.V.P. Siddhartha Institute of Technology, Vijayawada, India)

Abstract

The authors analyze 146 Indian Initial Public Offerings (IPOs) that were listed in Bombay Stock Exchange (BSE) between January 2007 and December 2009. The units of the sample are selected on the basis of companies available in the Indian stock market for three years for calculating short-term and long-term returns. The evidence suggests that the IPOs are initial day underpriced by 4.25 per cent and underperformed by 29.06 per cent after 36 months of listing. The study also finds that issue variables are highly influencing the IPOs performance in short run and long run but age of the company doesn't have any influence on its performance during the study period. The JEL classifications are G12, G14, G24, and G32.

Suggested Citation

  • Srinivasa Rao Dokku & Rajesh Choudary Jampala & P. Adi Lakshmi, 2015. "A Study on Performance Evaluation of Initial Public Offerings (IPOs) in India during 2007-13," International Journal of Asian Business and Information Management (IJABIM), IGI Global, vol. 6(1), pages 18-37, January.
    • Handle: RePEc:igg:jabim0:v:6:y:2015:i:1:p:18-37
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    More about this item

    JEL classification:

    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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