Long Run Performance of IPO-Empirical Evidence from Indian Capital Market

摘要

IPO is the buzz word in the capital market across the world. Though the offer price is calculated using historical financial information, offer price do not sustain for long period after IPO. In most of the countries including India, it is observed majority of IPO are trading at a price lower than the offer price. Using the CAAR, BHAR and Wealth Relative Index, this paper analysed the long run performance (up to 18 months post listing period) of the IPOs offered in the Indian capital market during January 2007- December 2015. Findings of the paper are in consistent with the international evidence. This study can be useful to the-corporations who are planning IPOs in the near future to understand dynamics of Indian capital market.