A Study on the Long-Run Performance of Initial Public Offerings in India

Bhatia, S. and Singh, B. (2010). A Study on the Long-Run Performance of Initial Public Offerings in India, Journal of Managerial Finance and Research, 6 (2)

23 Pages Posted: 3 Mar 2017

See all articles by Shikha Bhatia

Shikha Bhatia

Jaipuria Institute of Management

Balwinder Singh

Guru Nanak Dev University - Department of Commerce and Business Management

Date Written: December 3, 2010

Abstract

This paper examines the long run performance of 438 initial public offerings in India that got listed on the Bombay Stock Exchange from 1992 to 2001. It further attempts to identify the factors explaining the long-run performance of IPO firms. The cumulative abnormal return at the end of fifth year is 184.64% which is very high in contrast with the returns observed in the developed countries. Substantial variations have been observed across firms belonging to different age groups and industries. Variations in performance of IPO firms is also evident when firms are segmented according to their initial returns, issue price and issue size. Initial returns, issue size and market conditions primarily explain variations in long run performance of Indian IPOs.

Keywords: Initial Public Offerings, Underperformance, Long-Run Performance, Aftermarket Performance

Suggested Citation

Bhatia, Shikha and Singh, Balwinder, A Study on the Long-Run Performance of Initial Public Offerings in India (December 3, 2010). Bhatia, S. and Singh, B. (2010). A Study on the Long-Run Performance of Initial Public Offerings in India, Journal of Managerial Finance and Research, 6 (2). Available at SSRN: https://ssrn.com/abstract=2926872 or http://dx.doi.org/10.2139/ssrn.2926872

Shikha Bhatia (Contact Author)

Jaipuria Institute of Management ( email )

A-32A ,Sctor 62
Noida
Gautam Budh Nagar, UP 201309
India

Balwinder Singh

Guru Nanak Dev University - Department of Commerce and Business Management ( email )

Department of Commerce and Business Management
Guru Nanak Dev University
Amritsar, Punjab 143005
India
09417272232 (Phone)
0183-2255564 (Fax)

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