SECTOR-WISE EXPLORATION ON INDIAN IPOS DURING PRE AND POST COVID-19
This paper examines the listing Day performance of IPOs in India before and during the pandemic by segmenting the IPOs into three sectors: industrial, financial, and service. The t-test was used on Market Adjusted Abnormal Return, which was calculated sector-by-sector, and it was discovered that IPOs in the Industrial sector were significantly underpriced when compared to the other two sectors. The Ordinary Least Squares Regression (OLS) model was used to examine the effect of market index return, listing gain, oversubscription, issue price, and issue size on IPO underpricing. The OLS results show that, with the exception of market index return, all of the above factors had a significant effect on underpricing. The study indicates that the short-term returns of the IPOs are considered vital by the investors because of the underlying belief of buy low and sell high. Investors believe that the stock prices would in most cases increase after an IPO and participate more in the primary market. The findings of the study will provide insights to the investors on the IPOs and its initial returns.
Initial Public Offerings, Under-pricing, Listing Gain, Pre- Covid, Post Covid.