Initial Public Offering (IPO’s) Under-pricing or Overpricing: An Empirical study of Selected IPO’s in NSE and BSE
Keywords:
Initial Public Offering, Securities and Exchange Board of India, Stock Exchange, Book BuildingAbstract
Study has made an attempt to analyse the Indian IPO's in order to observe the phenomenon of underpricing as well as overpricing in the Indian context between the duration 2012 to 2015of which 85 IPO’s are been considered. Of which it includes companies listed in NSE as well as in the BSE. An observation is been made in the study that is underpricing exists in the years 2014 and 2015; the phenomenon of overpricing has been existed in the year 2012 and 2013 in the context of India. But for the year 2014 and 2015 we can observe the phenomenon of underpricing, as it is also been suggested by the Ritter for the risk which is undertaken by the uninformed investors for making a venture in the IPO. So finally it can be said that underpricing as well as overpricing exists in the Indian IPO market for the period which is been mentioned in the study.
References
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