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Waves of Indian IPOs: Evolution and Trend

Waves of Indian IPOs: Evolution and Trend Recent trend shows that Initial Public Offerings (IPOs) has become one of the popular and dependable methods of raising cash. This paper aims at understanding the waves and pattern of Indian IPOs. It was found that most of the IPOs were from private sector companies. The industry-wise trend in IPOs showed that most of the IPOs were launched by IT sector companies. It was observed that year 1999–2000 and year 2005–06 was best in terms of investors' response whereas the period from 2001 to 2003 was worst in terms of investors' optimism. Current waves of Indian IPOs are divided into hot market IPOs and cold market IPOs. A multivariate regression model is applied to empirically analyze issuers' approach to time their issue with hot market condition. The result suggests that Market timers, identified as firms that go public when the market is hot, tried to maximize the total proceeds at the time of IPO. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Asia Pacific Business Review SAGE

Waves of Indian IPOs: Evolution and Trend

Mayur, Manas; Mittal, Sanjiv
Asia Pacific Business Review , Volume 7 (3): 10 – Jul 1, 2011
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Publisher
SAGE
Copyright
© 2011 Asia-Pacific Institute of Management
ISSN
0973-2470
DOI
10.1177/097324701100700303
Publisher site
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Abstract

Recent trend shows that Initial Public Offerings (IPOs) has become one of the popular and dependable methods of raising cash. This paper aims at understanding the waves and pattern of Indian IPOs. It was found that most of the IPOs were from private sector companies. The industry-wise trend in IPOs showed that most of the IPOs were launched by IT sector companies. It was observed that year 1999–2000 and year 2005–06 was best in terms of investors' response whereas the period from 2001 to 2003 was worst in terms of investors' optimism. Current waves of Indian IPOs are divided into hot market IPOs and cold market IPOs. A multivariate regression model is applied to empirically analyze issuers' approach to time their issue with hot market condition. The result suggests that Market timers, identified as firms that go public when the market is hot, tried to maximize the total proceeds at the time of IPO.

Journal

Asia Pacific Business Review – SAGE

Published: Jul 1, 2011

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