Published Paper Details:

The Bombay Stock Exchange (BSE) is actually first stock exchange of India. It is also the first stock exchange of Asia as well as the it is the Fastest Stock Exchange on the planet. Earlier researches on Initial Public Offerings (IPOs) in Indian context happen to give major importance to the Bombay Stock Exchange (BSE) only rather than National Stock Exchange (NSE) or any other local exchange. The study seeks to find if Indian IPOs tend to be underpriced in short run. The study also tries to describe underpricing on day one with regard to the demand created throughout the book building process of IPO, the delay in listing which is the time period around the closing of the book building process and day the shares get listed on the exchange, the price at which the shares were issued and the size of the issue. Additionally, it tries to comprehend any kind of growing pattern in issue market of India with regards to the prior studies. Initial public offerings getting underpriced can prove to be a severe concern for virtually every economy. On one side, excessive underpricing trend within the IPO market makes companies, that are not in a position to or simply do not desire underpricing to lose confidence in IPOs. Alternatively, it generates arbitrage opportunities in the exchanges as well as within the grey market of IPO. Issues getting underpriced, as a result hinders the expansion prospects as well as generates lack of stability within the secondary markets. The current research on 107 IPOs which used book building mechanism, for the period of January 2012 to December 2017, discovered that the typical underpricing in those times was 9.44 % whilst the utmost underpricing had been close to 139.40%. Hence IPO underpricing continues to be a problem. The outcomes of the study claim that the demand produced for an IPO in the course of book building as well as the Issue Size had a positive influence on the underpricing on day one, whilst the Issue Price and Listing delay of the IPO had an insignificant impact.