Evaluating Effectiveness of IPO Pricing in the Indian Markets
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Date
2025
Journal Title
Journal ISSN
Volume Title
Publisher
Accountancy Business and the Public Interest
Abstract
The Indian IPO market has also been growing at a rapid rate in the recent past with companies from various sectors of business listing on the market to mobilize funds. Indian IPO valuations are influenced by various factors such as economic environments, regulatory announcements, sentiment of investors, and firm-specific events. This study aims to analyze the trend in IPO pricing in India from 2016 to 2025 in terms of average IPO prices, IPO issuance, most active IPO sectors, and performance of IPOs post-listing. The study uses data from various sources such as company prospectuses, stock exchange websites, and financial newspapers. The findings show that the average IPO valuations have increased significantly over the years, with the highest valuation achieved by the technology, financial service, and consumer goods sectors. The study further picks on the impact of retail participation on IPO valuations, and investor sentiment as determinants for the success of IPOs. Overall, the study illuminates the dynamics of the IPO market in India and provides valuable information to investors, policymakers, and market participants.
Description
ISME
Keywords
PAT, Retail Subscription, Valuation, IPO Efficiency, P/E Ratio, T Test, Man Whitney U Test, Levene’s Test, One Sample T Test, Crowding Out