In this paper, underpricing of Initial Public Offerings across thirteen different sectors in the Indian stock market have been analyzed, during the period 2010–2020 (Data available till 31st October 2020). A sample of 129 companies, having an issue size greater than INR 100 crores, was examined and analyzed through IPO listing gains, weighted mean, standard deviation and coefficient of variation. The study shows that Retail, FMCG and Consumer Durables industry was underpriced the most while Engineering, Construction and Infrastructure industry issues were underpriced the least or overpriced. It was also found that Initial Public Offerings (IPOs) could be a window to make immediate gains in a very short period of time if thorough analysis of the issues and the market conditions is performed. Furthermore, it was observed that the first day return of the companies varies highly and cannot be fairly predicted by the weighted average first day return of the respective sector.
Cite this article:
Lakshay Khandelwal, Aditi Agarwal. IPO Underpricing across Different Sectors in India from 2010-2020. Asian Journal of Management. 2021; 12(3):337-5. doi: 10.52711/2321-5763.2021.00051
Lakshay Khandelwal, Aditi Agarwal. IPO Underpricing across Different Sectors in India from 2010-2020. Asian Journal of Management. 2021; 12(3):337-5. doi: 10.52711/2321-5763.2021.00051 Available on: https://ajmjournal.com/AbstractView.aspx?PID=2021-12-3-16
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