A STUDY ON IPO RETURNS IN THE INDIAN EQUITY MARKET WITH SPECIAL REFERENCE TO THE POST-COVID ERA

Abstract

This paper assesses the recent trends in Initial Public Offerings (IPOs) in the Indian stock exchange and the changes brought about in the market after the COVID-19 pandemic. The COVID-19 pandemic was one of the most severe global crises in recent history which had an immense impact on financial markets all around the world. The crisis was characterized by extreme price fluctuations, decreasing asset prices, and great uncertainty. 

In India, the COVID-19 pandemic initially caused a sharp decline in the stock market and a decrease in new issues, however it also triggered a new wave of interest in investing in stocks and other securities, especially among individual investors. During the post-pandemic period, the Indian IPO market witnessed an increase in the number of companies coming to the market to raise capital, and numerous IPOs experienced high levels of subscription and significant listing gains. These developments attracted much attention from retail investors, some of whom participated for the first time in the IPO market. Thus, it became very important to examine whether these listings were efficiently priced and what would be the long-term performance of these IPOs.