A Study on Performance of Initial Public Offering (IPO) in Indian capital market during the pandemic.

Abstract

The study focuses on the Performance of Initial Public Offering in Indian capital market during the pandemic, by considering the retail subscription, total subscription and listing day return as the measures and Initial Public Offerings which debuted and listed during the financial year 20-21 were considered. The average(mean) listing day returns for the year stood at 37.08%, which was higher when compared to past yearly Initial Public Offering returns. Moreover, retail subscribers were more active during this year’s Initial Public Offering, as retailers showed good interest in bidding to Initial Public Offering s and have shown strong level of subscription in the year and which has directly impacted in high level of over subscription. Further research also contributes in finding the relationship between retail subscription to listing day return, total subscription to listing day return. From findings, listing day returns had a significant correlation with retail subscription and total subscription but retail subscription had a strong and total(overall) subscription had a perfect relationship. Additionally, study found that there exists a significance in retail investors considering institutional investor subscription level while subscribing their bids and investing to Initial Public Offerings.