Investment strategy for initial public offers: An empirical evidence
Dr. Vinod Kumar, Sahil Narang
This paper is an endeavor to frame the strategy regarding investment in Initial Public Offers. On the grounds of the price behaviour of Initial Public Offers of fifteen years, study suggests the exit timing from Indian IPO market. Study covers IPOs offered through BSE during years from 1993 to 2007. The price behaviour of IPOs has been examined by using price performance indicator i.e. wealth relative (WR). The study examines the price behaviour of selected IPOs in India up to three years from the listing day. A sample of 488 IPOs offered during the year 1993 to 2007 has been considered to study the price behaviour of IPOs.