A Study on Short Term Performance of Initial Public Offerings (IPOS) Issued During 2021-22 And 2022-23

Abstract

This study delves into the growth and success of Initial Public Offerings (IPOs) launched by companies between  2021-22 and 2022-23. The analysis primarily focuses on assessing the performance of IPOs through basic returns and market-adjusted returns over three distinct time frames: the listing day, 30 days post-listing, and 90 days post-listing. Statistical techniques such as paired t-tests and ANOVA were employed to scrutinize the obtained results.

The findings of the study indicate a significant level of under pricing observed on the listing day, followed by a subsequent reversal of this trend. As time progressed, gains diminished, ultimately leading to a situation where shares were overpriced. This progression highlights the dynamic nature of IPO pricing and underscores the complexities inherent in equity financing.