000			01851pab a2200205 454500
008			140923b0 xxu||||| |||| 00| 0 eng d
040			_cWelingkar Institute of Management Development & Research, Mumbai _aWelingkar Institute of Management Development & Research, Mumbai
041			_aENG
082			_a _bSeh
100			_aSehgal Shikha
245			_aInitial and Aftermarket Performace of Indian IPOs
250			_a11
260			_a _bNov 2007 _c0
300			_a16-36 Pp.
490			_v13
520			_aThis paper investigates the initial and long-run performance of 438 IPOs listed on the BSE between June 1992 and March 2006. Underpricing of an IPO is measured as the return on the first day of trading (relative to the offering price). To examine the long-run performance of Indian IPOs, Buy-and-Hold Abnormal Returns (BHAR) and Cumulative Abnormal Returns (CARs) for 120 months of secondary market returns have been calculated. Benchmark-adjusted initial returns are found to be around 100%, which is in line with the previous researches in India. The underpricing also conforms to international evidence though the magnitude of initial return is higher than that of other countries. Buy-and-hold returns have been found to be negative between 18 and 40 months of holding; however, such underperformance disappears after 40 months, i.e., in India, underperformance persists for about one-and-a-half years subsequent to IPO to a little more than three years. To check the robustness of this result, CARs also exhibit the existence of underperformance in the second and third years. Thus, long-run underperformance in India appears in the second year and subsists till the third year, though it dies out in the fourth and fifth years.
650			_aIPO,
856			_uhttp://192.168.6.13/libsuite/mm_files/Articles/AR9528.pdf
906			_a28278
999			_c29413 _d29413