Authors: Dr. P. Lokesh Muni Kumar, J Priya Chandana
Abstract: This study focuses on the pricing and performance analysis of Initial Public Offerings (IPOs) listed on the National Stock Exchange (NSE) of India, aiming to understand the behavior of newly listed equities in the primary market and their performance in the secondary market post-listing. IPOs play a vital role in corporate financing and capital market development, making it crucial to assess their underpricing, listing gains, and long-term returns. The research investigates the issue price, listing price, closing price, and after-market performance of selected IPOs over a defined period to determine the efficiency of IPO pricing mechanisms and the investor sentiment at the time of listing.The study uses quantitative analysis based on secondary data collected from NSE official records, annual reports, and stock market databases. Statistical tools such as average market-adjusted returns, volatility analysis, and cumulative abnormal returns (CAR) are used to evaluate both short-term listing performance and medium to long-term returns. The study also compares the performance across sectors and examines whether underpricing is prevalent in the Indian IPO market.Findings suggest that a majority of IPOs are underpriced, offering significant listing day gains, but do not always sustain positive performance in the long run. The results provide insights for retail and institutional investors, underwriters, and regulatory bodies to improve IPO pricing strategies, manage market expectations, and assess the efficiency of the capital market. The research contributes to a better understanding of IPO market dynamics in India and offers recommendations to enhance transparency, investor confidence, and market efficiency.
