Published Paper Details:

This paper tries to explore the performance and characteristics of Initial Public Offerings (IPOs) of Indian companies listed in Bombay Stock Exchange during the past ten years period from 2010 to 2020. The study undertakes to evaluate the performance of IPOs on the basis of its nature of return on the first day of its listing. The first day of listing is considered to be the Acid-Test day for any company's listing and its performance on the first day envisages the fact that "First impression is the Best Impression. The current work has used the event study methodology, where in, an event window is created with 70 days as the base, for these 70 days Average Abnormal Returns (ARR) and Cumulative Average Abnormal Returns (CAAR) were calculated to analyse the performance of IPOs. To calculate the market adjusted return BSE SENSEX was considered as the benchmark index. The study has attempted to verify IPO performance in India on the basis of nature of return on the first day of trading. It was found in the analysis that Indian IPOs underperformed irrespective of its nature of return on the first day of listing. From the analysis it is also evidenced that the companies which had negative return on the first day of trade have severely underperformed than the companies having positive return on the first day of trading. The goal of this paper is to establish evidence to identify those companies which have performed better as well as underperformed after its first day of trading.