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run. IPOs performance was significantaly different for different graded IPOs in long run.
Determinants of issue price using multiple regression analysis showed that various
independent variables such as age of firm, post issue promoter holding, sales growth,
return on net worth, earning per share and and offer size positively associated with issue
price. Results also demonstrated that leverage and public sector companies were
negatively related to issue price. Profit and total asset did not show significant
association with issue price.
202 firms and 176 firms of the sample offered IPOs during 2002-07 and 2008-15
respectively. Analysis also showed that IPOs listing during 2002-07 provided significant
higher return than IPOs issued during 2008-15 throughout the study period.
Key Words: IPO, Underpricing, Market Adjusted Excess Return (MAER), Credit Rating and
IPO Offer Price
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