Underpricing of Ipos: The Indian Experience Over the Last Decade

32 Pages Posted: 20 Nov 2002

Date Written: October 3, 2002

Abstract

Several papers have identified the uncertainty of the investors and signaling intentions of the issuers behind IPO underpricing. This paper tests the implications of these models for the Indian IPOs over the last decade. The empirical findings show that there exists positive relationship between IPO underpricing and ex-ante measures of risk proxies. It also shows that a subset of companies' decision to raise funds subsequently depended on the initial returns and/or on the aftermarket returns.

Keywords: IPO underpricing, uncertainty, market feedback hypothesis, secondary offerings, signaling hypothesis

Suggested Citation

Ghosh, Saurabh, Underpricing of Ipos: The Indian Experience Over the Last Decade (October 3, 2002). Available at SSRN: https://ssrn.com/abstract=336041 or http://dx.doi.org/10.2139/ssrn.336041

Saurabh Ghosh (Contact Author)

Reserve Bank of India ( email )

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HOME PAGE: http://https://www.linkedin.com/in/saurabh-ghosh-ab7226154/

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