This paper examines the pricing of IPOs in India in the secondary market on the first day of aftermarket trading. The focus of this study is to highlight the underpricing of IPOs in India. This study is based on the sample of 27 IPOs issued from January 1, 2007 to December 31, 2009. In this study underpricing is measured through Average Market Adjusted Abnormal Return (MAAR) of IPOs. MAAR of 27 IPOs has been reported 17.72 per cent. The study found existence of underpricing in Indian IPO market. The activity of Indian IPO Market has been observed very sluggish during year 2012-13. To perk up the state of IPO market, SEBI has abolished the mandatory grading of IPOs (Economic Times, Dec. 25, 2013).