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Ph.D.
(Management)
ANALYSIS OF PERFORMANCE OF THE INITIAL PUBLIC OFFERINGS
(IPOs) IN INDIAN CAPITAL MARKET: EVIDENCE FROM NATIONAL
STOCK EXCHANGES, INDIA
Ph.D. Scholar : Disha Harshadbhai Mehta
Research Supervisor : Dr. Akash B. Patel

Regi. No.: 13146031003
Abstract :
Rationale: An Initial Public Offering (IPO) is the first sale of corporation’s common shares
to investors on a public stock exchange for raising capital. IPO market in India has had its
share of ups and downs over a period, for more than a decade, post liberalization. The
available IPO literature from developed countries specifies that there is a significant
underpricing of IPOs on listing day and long run underperformance over long period of
time. Nevertheless, it will be provoking to examine the presence of IPOs underpricing and
long run underperformance in developing markets like India. The research also aims to
throw light on the various determinants to explain performance of IPOs in short and long
run that would be helpful to investors, financial advisors, stock exchanges and
researchers to take rational decisions. IPO is an important avenue for investment for
retail investors, so it is important that the pricing of IPOs truly shows the fair value of the
firm. The relationship between the IPO grading and the IPO performance is a concern, the
findings from available literature conveys conflicting results. Also the research related to
impact of global economic crisis of 2008 on IPOs performance might provide interesting
insights regarding the timing of IPOs.

Purpose: The objectives of this thesis were to check the presence of undepricing in Indian
IPOs market, to evaluate performance in long run and to compare IPOs performance with
market return. The study even tried to identify and analyze the various factors affecting
IPOs performance over short and long run. The study focused on the performance
difference by different graded IPOs. The study explained various factors affecting offer
price of IPOs. The Study especially attempted to check performance difference between
the IPOs issued before and after the global economic crisis of 2008.
Design/Methodology/Approach: Performance of 378 IPOs listed on NSE during 2002 to
2015 was evaluated using secondary data. For measuring the performance of various
companies, the time period is divided into short term and long term. Returns on listing
day assumed under short term. Returns up to one week, one month, three months, six
months, one year, two years and three years were considered for measuring performance
in long run. Short run and long run performance of IPOs evaluated in terms of raw return
(RR), market adjusted excess return (MAER) and wealth relatives (WR). One sample t- test

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