Financial Performance or Market Sentiment: What Really Drives Investors’ Interest towards Indian IPOs?

Authors

DOI:

https://doi.org/10.31305/rrijm.2024.v09.n11.027

Keywords:

Grey Market Premium (GMP), IPO Subscription, IPO Performance, Financial Performance, Investor Sentiment

Abstract

Investors usually perform both qualitative and quantitative analysis before investing in IPOs, but the question is to identify which analysis has got considerable weightage during IPO investment decision. The present study is an effort to analyze the factors driving the subscription to and performance of Indian IPOs during the financial year 2023-24.  Grey Market Premium was considered as a proxy for market sentiment and the firm’s financial performance was gauged by Return on Capital Employed (ROCE). The study is limited to mainline Indian IPOs during the financial year 2023-24. The present research helps in bringing out the information preferences of different category of participants in Indian IPO market.

Author Biographies

Dr C V Purushotham, Assistant Professor, ABBS School of Management, Bengaluru

Dr C V Purushotham received Masters in Business Administration from Sri Venkateswara University, Tirupati and also obtained PhD from the same University in Management domain. He is currently working as an Assistant Professor at ABBS School of Management, Bangalore. He has 7 years of teaching experience and 4 years of corporate experience in the fields of Financial Reporting & Mutual Fund Accounting. His areas of interest include Financial Management, Investment Appraisal and Management, Securities Trading Strategies & Behavioural Finance. He has done certifications from National Stock Exchange (NISM). His work also covers Financial Modelling and Risk Analytics.

Gaurav Sethia, Student, PGDM, ABBS School of Management, Bengaluru

Mr Gaurav Sethia is a student of ABBS School of Management pursuing PGDM – BIFAS program. He has completed his BBA graduation from Maulana Adbul Kalam Azad University of Technology. His areas of interest include Financial Modelling, Investment Banking & Risk Management.

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https://www.angelone.in/knowledge-center/ipo/ipo-new-norms-sebi-guidelines

https://www.sebi.gov.in/

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Published

20-11-2024

How to Cite

Purushotham, C. V., & Sethia, G. (2024). Financial Performance or Market Sentiment: What Really Drives Investors’ Interest towards Indian IPOs?. RESEARCH REVIEW International Journal of Multidisciplinary, 9(11), 192–203. https://doi.org/10.31305/rrijm.2024.v09.n11.027

Issue

Vol. 9 No. 11 (2024): RESEARCH REVIEW International Journal of Multidisciplinary

Section

Articles

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This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

This is an open access article under the CC BY-NC-ND license Creative Commons Attribution-Noncommercial 4.0 International (CC BY-NC 4.0).