SHORT RUN PERFORMANCE OF INITIAL PUBLIC OFFERINGS IN INDIA
|
|
- Geoffrey Jenkins
- 5 years ago
- Views:
Transcription
1 CHAPTER 5 SHORT RUN PERFORMANCE OF INITIAL PUBLIC OFFERINGS IN INDIA It is a pervasive feature of markets, the world over, those investors who subscribed to initial public offerings, on the offer day, experienced high initial returns on the first day of trading, the phenomenon is known as Underpricing. The scenario for Indian IPO market is no different as evidenced by findings in this chapter. This chapter studies the listing performance in Indian stock market on shares purchased in IPOs. 5.1 SAMPLE DESCRIPTION The sample consists of 251 companies, which came to the market during Nov.1994 to April 2006 and got enlisted on the National Stock Exchange. Table 5.1 reports the distribution of IPOs by year of issuance and by issue size. Table 5.1 Characteristics of the Year of Issuance Number of IPOs Percentage Out of Total Issue Percentage Out of Total Total Par Premium
2 The maximum number of IPOs is observed in year 1995 with 51 IPOs, followed by 47 in 2005, 34 in The worst year has been 2001, which reports only 3 firms, for the sample, that went public. Looking at the distribution based on issue size, the picture is somewhat different. Furthermore, the highest percentage (20.32) of total proceeds was seen in 1995 followed by per cent in 2005, per cent in 2006, and 9.96 per cent in 2000 and so on. Out of 251 IPOs, 47 firms issued shares at premium and raised per cent of total issue size. The figures for , indicate that Indian Capital market witnessed big IPOs during these years. These IPOs took minimum 15 days and maximum 742 days to list on the National Stock Exchange. The average listing time was 85 days, much higher than SEBI s requirement (30 days). Other characteristics of the sample have been given and discussed along with the analysis of performance of IPOs. 5.2 THE INITIAL LISTING PERFORMANCE OF INDIAN IPOS It is universally found that the purchase on the very first day of trading earns the investors a high return. Table 5.2 examines the significant underpricing for the IPOs listed on the National Stock Exchange during Nov.1994 April As summarised in the Table 5.2, the IPOs show the average raw return of per cent and the Mean Market Adjusted Excess Return (MAER) of per cent with Nifty. The maximum and minimum values of raw returns are 1400 per cent and per cent respectively. The underpricing is found to be present in per cent companies of the sample. While per cent of the companies show negative returns (overpriced), 1.20 per cent companies are fairly priced (zero returns). The after market trading lead-time i.e. the time taken for listing in Indian context varies from 15 days to 742 days, so after adjusting for this variation, the annualized average raw and Market Adjusted Excess Return are per cent and per cent respectively. This indicates the yearly returns that investor would have earned. 118
3 In the sample selected for the study, there are 46 par (Rs. 10) issues and 205 premium (>Rs. 10) issues. It clearly reveals the positive and statistically significant initial returns across all price groups. The returns given by par and premium issues are per cent and per cent respectively. When the offer price rises above Rs 10, the initial returns decline. The mean MAER is 111 per cent for par issues, while it is per cent for premium issues. So, on an average par issues are more underpriced as compared to premium issues. The scenario is same, even for annualized returns. Moreover, par issues coming from first generation entrepreneurs or from promoters, not having track record should give higher returns as there are more chances of these issues being underpriced. It would be desirable to find out whether the premium amount has any bearing on the underpricing of these IPOs. The above discussion corroborates the existence of significant underpricing in Indian stock market and confirms the findings of other Indian studies like Kumar (1995), Ramana(1995), Shah(1995), Madhusudan and Thiripalraju (1997), Krishnamurti and Kumar (2002), Singh and Mittal (2003), Shelly and Singh (2008)) etc. Table 5.2 Initial Listing of Par Issues Vs Premium Issues Offer Price Characteristics. Raw Annualised Annualised Raw (N) (Rs.) (%) (%) (%) (%) 251 All Mean 40.08* 39.36* * * Maximum Minimum Positive (%) Negative (%) Zero (%) Par Issues Mean ** 111** Maximum
4 Minimum Positive (%) Negative (%) Zero (%) Premium Issues Mean 23.69* 23.29* * * Maximum Minimum Positive (%) Negative (%) Zero (%) LISTING PERFORMANCE BY OFFER PRICE The effect of offer-price on the underpricing is numerically reflected in the Table 5.3. Offer price is a price at which one new share is offered to general public. According to Daily et al(2003), Shelly and Singh(2010) information contained in prospectus send signals, intentionally or otherwise, to potential investors. The investors use this information in determining price at which they will be willing to purchase IPO shares on listing day. One of the signals, included amongst others, is the offer price. They found that initial price of an IPO offering may carry value as an indicator of underpricing. It is the investment banker who is entrusted with responsibility for assessing the pre-market demand for prospective IPO in an effort to set the offer price. Presumably, a very low offer price may signal little demand, little value or both. Based on the above discussion, it is expected that higher offer prices are associated with offerings of firm having good track records, and thus a negative relationship is hypothesized between offer price and initial listing returns or underpricing. As displayed in Table 5.3, it clearly reveals, the positive and statistically significant initial returns across all offer price ranges, except price range of and above 100. The first day average 120
5 raw and with respect to offer price indicates that larger returns are associated with small offer price IPOs i.e per cent. As the offer price increases, the returns decline. The return slightly rise for the next quintile of offer price and then again decline. So, see-saw pattern emerges for raw and market-adjusted excess, annualised raw and annualised MAER returns across different segments of offer price. Offer Price (P) Table 5.3 Initial Listing of IPOs by Offer Price Raw Annualised Raw (N) (Rs.) (%) (%) (%) (%) Annualised 251 All 40.08* 39.36* * * 46 P= ** 111** <P=< *** 24.19** ** *** 53 50<P=< ** ** 82 P> * * ***Significantly different from zero at 10 percent level Thus, the findings of the above table substantially support the hypothesis of inverse relation between offer price and initial returns. 5.4 LISTING PERFORMANCE BY AGE OF THE FIRM The age of the IPO firm is one of the significant determinants of underpricing of IPOs. Ritter (1984) hypothesized that smaller firms, which have a little or no operating history, are associated with high ex ante uncertainty. The age of the firm, which is measured in years, in terms of difference between the year of incorporation of a firm and the year of going public, is expected to be related with the level of underpricing inversely. Table 5.4 classifies firms in term of ages. The analysis of table depicts that there is no linear relationship between age and underpricing of the IPOs. The highest returns of per cent are given by the firms falling in the age group of (5-9) years. The 121
6 same pattern is displayed by market adjusted excess returns. The next highest returns are given by firms in the age group of 9-13 years with per cent followed by the firms in the age group >13 years with per cent at third spot. And, this again is true for all categories of returns. There emerges no apparent pattern in all categories of average returns across the age groups. But one thing, which is clear, is that middle aged firms are more underpriced than younger firms. The analysis of presents the same pattern as that of raw returns. Table 5.4 Initial Listing of IPOs by Age Age Raw Annualised Raw Annualised N (years) (%) (%) (%) (%) 251 All 40.08* 39.36* * * 13 <= >5 and <= *** 65.31*** ** ** 65 >9 and <= ** 52.61** > ** ** ***Significantly different from zero at 10 percent level 5.5 LISTING PERFORMANCE BY OFFER SIZE Table 5.5 correlates underpricing across different segments of offer size. Offer size is measured, in terms of gross proceeds, earned from the issue. It is expected that smaller offerings are more speculative, on average, than larger offerings (Beatty and Ritter (1986)). Normally, larger offerings are associated with established firms and the investors are likely to be more informed about prospects of such firms, therefore, less underpricing is expected for them. Table 5.5 reveals that the highest return is per cent which was obtained by the companies with the issue size of Rs. <1000 Lakhs, followed by per cent against the companies with 122
7 the offer size of Rs Lakhs while, the remaining issues show lower returns for investors. The hypothesis of ex-ante uncertainty with offer size proxying for information asymmetry, is evident for smaller offer size issues. As the issue size increases, the IPOs returns start declining and then rises, again declines till the end, thus shows an irregular pattern. For the issue size of above Rs lakhs, the returns continue showing declining trend. This may, again be attributed to more confidence shown by investors in smaller issues, which resulted in pushing up the market price. It is concluded that the issue size plays a conclusive role in deciding the listing performance of IPOs in Indian market. Table 5.5 Initial Listing of IPOs by Offer Offer (S) Raw Annualised Raw Annualised N (Rs. in Lakhs) (%) (%) (%) (%) 251 All 40.08* 39.36* * * 60 S<= *** 80.07** <S<= <S<= <S<= ** *** 52 S> * 19.36* * * 5.6 LISTING PERFORMANCE BY AFTER MARKET TRADING LEAD TIME Lead-time is the time lag between the closing date of the issue and the instant when it gets enlisted with the stock exchange. This lead time varies for different issues. Earlier, it used to take a long period for new issues to get listed, but this has been reduced in the recent past. Different issues take different time spans for listing. The SEBI acceptable listing delay is only 30 days at present, which has been reduced from, earlier level of 70 days and 45 days. The listing 123
8 delay in the sample used in the present study ranges between 15 days to as many as 742 days and this lead-time averages at 85 days. So, to scrutinise the effect of delay in IPO listing performance, a cross-sectional analysis was attempted dividing the lead-time into four categories. Table 5.6 presents the initial listing returns of Indian IPOs after market trading lead time. Table 5.6 Initial Listing of IPOs by After Market Trading Lead Time After Market Trading Lead Annualised Raw Time (T) Raw N (Days) (%) (%) (%) (%) Annualised 251 All 40.08* 39.36* * * 81 T<= * 22.73* * * 59 30<T<= *** 75.84*** ** *** 67 60<T<= T> As analysed from Table 5.6, the average raw returns are the highest for issues having listing delay in the second quintile of days, followed by the issues with lead time of more than 120 days. Both these ranges show average returns higher than average for overall sample. As far as market adjusted excess return is concerned, same pattern follows. For annualised raw returns and annualized market- adjusted returns no apparent pattern is evident across segments of listing delay. The only observable pattern, which emerges, is that raw returns,, annualised raw return and annualised market adjusted raw returns are significant, for first and second quintile. Thus, the above analyses do not support the hypothesis that lower listing delays imply efficiency and hence better performance. It is concluded that the evidence of affect of listing delay on initial returns is quite inconclusive. 124
9 5.7 LISTING PERFORMANCE ACROSS LEAD MANAGERS It is generally believed that there is a relationship between the underpricing of new issues and merchant banker s reputation. Table 5.7 throws light on this relationship. Top 6 merchant bankers were selected in terms of number of issues handled in the sample. The results indicate that average returns estimated for the issues handled by these 6 lead managers are significantly different from zero in some of the cases. SBI Capital Market handled maximum number of issues. But their returns, though positive, were lower than the overall returns. Even the DSP Merill Lynch, Enam Financial Consultant Private Limited, JM Morgan Stanley Private Limited, Kotak Mahindra earned lesser returns than the overall samples. Table: 5.7 Initial Listing of IPOs Across Lead Managers Lead Managers Raw Annualised Raw N (%) (%) (%) (%) Annualised 251 All 40.08* 39.36* * * 15 DSP Merrill lynch Ltd Enam Financial ICICI Securities Ltd JM Morgan Stanley Pvt Kotak Mahindra SBI Capital Markets Ltd ** ** 126 Others 52.85* 51.84* * ** ***Significantly different from zero at 10 percent level Another interesting observation is that issues (22) managed by ICICI seem to give abnormally high returns to the extent of per cent. Generally these are bigger issues and take lesser time to list. Further, it is found that merchant bankers like DSP, Enam, Kotak, JM Morgan underprice less as compared to others. 125
10 The above discussion indicates that in general, no lead manager has shown any significant capability in pricing the IPOs. Further, the present analysis is based on the assumption that the lead manager plays an active role in deciding the price of issue. But the market practices in some cases do not seem to confirm it. 5.8 LISTING PERFORMANCE BY YEAR OF LISTING Results of year-wise analysis given in Table 5.8 indicate that the returns are significantly different from zero in the period of The period from , is a boom period and is depression period and according to that analysis has been made. Table 5.8 Initial Listing of IPOs by Year of Listing Year of Listing Raw Annualised Raw Annualised N Years (%) (%) (%) (%) 251 All 40.08* 39.36* * * * 38.87* * * ***Significantly different from zero at 10 percent level The raw and market adjusted excess returns from issues listed during show lesser returns. For the issues, which opened in the performance is better than the overall. The issues that opened in the year , earned lesser than the year The above analysis shows that IPOs have given excellent returns during the boom period. This table further reveals that the issues that opened in were of smaller size and took maximum time to be listed on the stock exchange. 126
11 5.9 LISTING PERFORMANCE BY INDUSTRY Table 5.9(a) classifies the firms into four industry groups based on the nature of industry to which they belong. Table 5.9(a) Initial Listing of IPOs by Broad Industry Groups Industry Groups Raw Annualised Raw Annualised (N) (%) (%) (%) (%) 251 All 40.08* 39.36* * * 170 Manufacturing 44.69* 44.36* * * 60 Services 28.81*** 28.17*** * * 2 Mining and Drilling Miscellaneous ***Significantly different from zero at 10 percent level The industry classification used here has been obtained from the website of Capital Market Journal ( Needless to say, there is some arbitrariness in allocating firms into these categories. An inspection of Table 5.9(a) demonstrates that companies going public during are not evenly distributed over all industry groups. Manufacturing firms are heavily represented in the sample followed by service, miscellaneous groups and mining and drilling firms. As can be seen from the Table 5.9(a), the raw as well as market-adjusted returns are significantly different from zero in all industry groups except miscellaneous, mining and drilling. When the performance of these industry groups is compared vis-à-vis overall performance, it is clear that manufacturing firms performed better than the overall. The firms in the service, mining and drilling and miscellaneous categories earned lesser returns than the overall. Another observable trend from this table is that the manufacturing firms are of larger size as compared to the service 127
12 firms. That is why the manufacturing firms are more underpriced than the service firms. Table 5.9 (b) classifies the firms in fifteen industry groups based on the activities in which they are engaged. A perusal of the Table 5.9(b) reveals that the companies going public during are not evenly distributed among all industry classifications. Firms in the industry groups such as Textile, Non Metallic, and Software dominate other industry groups in the sample. The raw and market adjusted returns were significantly different from zero in software and engineering industry group. Textile industry got the highest returns followed by Non metallic and Software. Communication, transport and diversified industries earned the lowest returns. Maximum number of companies in the sample belongs to the software industry, which earned better rate of return than the overall sample. For Annualised Raw Return and Annualised MAER, the highest returns are again given by industry belonging to textile, software, engineering etc. Another sustainable observation is that the issues offered to the Indian public in the chemical, financial services etc are of bigger size as compared to all other industries. Table 5.9(b) Initial Listing of IPOs by Industries Industry Raw Annualised Raw N (%) (%) (%) (%) Annualised 251 All 40.08* 39.36* * * 39 Chemicals Food Processing Machinery Metals and Metal Products Non Metallic Mineral
13 51 Software 82.82* 80.94* * ** 18 Textiles Transport Equipment Diversified Mining and Drilling Construction Engineering *** *** 38 Financial Services Communication Miscellaneous ***Significantly different from zero at 10 percent level 5.10 LISTING PERFORMANCE BY SUBSCRIPTION RATIO The significance of oversubscription, which reveals investors demand for an issue, was found by Rock (1986). He contented positive relation between oversubscription and underpricing, that is, oversubscription is a result of large orders placed by informed investors, when they have favourable information about prospects of issue. Indian Capital market, which has high degree of retail participation and the procedure of proportionate allotment within specified categories, is expected to make way for Rock (1986) phenomenon. Table 5.10 classifies firms in terms of their subscription Ratio. Table 5.10 Initial Listing of IPOs by Subscription Ratio Subscription Ratio Raw Annualised Raw (SR) N (Times) (%) (%) (%) (%) Annualised 225 All 40.08* 39.36* * * 129
14 9 <= >1 and <= >10 and <= *** * * 40 >20 and <= * 64.02* * * 26 > * * * * ***Significantly different from zero at 10 percent level From Table 5.10, the significant positive average returns are evident for two categories of returns. In fact, a monotonic relation is being observed between average returns and the level of subscription. As the level of subscription ratio goes up, the average returns move in the same direction. It implies that the higher the informed demand about a particular issue, the higher the returns on listing day. The same pattern is displayed by MAER, Annualised raw returns and Annualised market adjusted excess returns. Thus it is concluded that significant cross sectional differences are exhibited in listing performance when IPOs are analyzed, in terms of segmentation (par vs premium), on basis of their issue size, offer price and firm specific factors. It is found that par issues are more underpriced than the premium issues. Offer price is inversely related with the initial returns. Analysis in terms of age reveals that middle aged firms are more underpriced than the younger firms. It is found that small size issues are more underpriced because of information asymmetry. However, no concrete relationship is found between listing delays and underpricing. Analysis in terms of lead managers shows that no lead manager has any significant capability to price the IPOs. Year- wise analysis shows that IPOs have given better results during boom period. Industry-wise analysis show that IPOs of manufacturing firms performed better than other categories. It is found that oversubscribed issues performed better on listing day which implies that oversubscription is the result of order placed by informed investors. 130
CHAPTER-VII MARKETING OF PUBLIC ISSUES
CHAPTER-VII MARKETING OF PUBLIC ISSUES Issue management by merchant bankers mainly focuses on three basic functions viz, origination, underwriting and distribution of securities. Distribution services
More informationCHAPTER -VIII FINDINGS AND SUGGESTIONS
CHAPTER -VIII FINDINGS AND SUGGESTIONS Introduction Primary capital market provides opportunity to corporate entities to raise the required funds from different categories of investors through issue of
More informationUNDERPRICING OF INITIAL PUBLIC OFFERINGS: AN INDIAN EVIDENCE
Available online at : http://euroasiapub.org/current.php?title=ijrfm, pp. 44~49 Thomson Reuters Researcher ID: L-5236-2015 UNDERPRICING OF INITIAL PUBLIC OFFERINGS: AN INDIAN EVIDENCE Sahil Narang 1, Assistant
More informationAn Empirical Investigation of Short-Run Performance of Ipos in India
An Empirical Investigation of Short-Run Performance of Ipos in India Himanshu Puri Abstract Initial Public Offering (IPO), is a way for companies to go public and meet its financing needs. IPOs are known
More informationChapter 5: Research Findings, Analysis and Discussions, Conclusion and Recommendations
Chapter 5: Research Findings, Analysis and Discussions, Conclusion and Recommendations 5.1. Research Findings 5.2. Discussion of Research Findings 5.2.1. Hypotheses 1: Firm related IPO characteristics
More informationSHORT RUN & LONG RUN PERFORMANCE OF IPO & FPO INDIAN STOCK MARKET
Abstract SHORT RUN & LONG RUN PERFORMANCE OF IPO & FPO INDIAN STOCK MARKET By Bhakti Mulchandani (Chandni Gerelani) Now-a-days, Initial Public Offer (IPO) has become one of the preferred investments for
More informationCHAPTER 5 ANALYSIS OF RESULTS: PORTFOLIO PERFORMANCE
CHAPTER 5 ANALYSIS OF RESULTS: PORTFOLIO PERFORMANCE 5.1 INTRODUCTION The preceding chapter has discussed the empirical results pertaining to portfolio strategies of fund managers in terms of stock selection
More informationMr. Kedar Mukund Phadke 1, Dr. Manoj S. Kamat 2 ABSTRACT
IMPACT OF IPO GRADING ON LISTING RETURNS AT THE NATIONAL STOCK EXCHANGE (NSE) IN INDIA Mr. Kedar Mukund Phadke 1, Research Scholar Assistant Professor National Institute of Construction Management and
More informationAn Analysis on the Performance of IPO A Study on the Karachi Stock Exchange of Pakistan
An Analysis on the Performance of IPO A Study on the Karachi Stock Exchange of Pakistan Miss Shama Sadaqat* Muhammad Farhan Akhtar** Khizer Ali*** Hailey College of Commerce University of The Punjab, Lahore,
More informationDOES IPO GRADING POSITIVELY INFLUENCE RETAIL INVESTORS? A QUANTITATIVE STUDY IN INDIAN CAPITAL MARKET
DOES IPO GRADING POSITIVELY INFLUENCE RETAIL INVESTORS? A QUANTITATIVE STUDY IN INDIAN CAPITAL MARKET Abstract S.Saravanan, Research Scholar, Sathyabama University, Chennai Dr.R.Satish, Associate Professor,
More informationChapter- VI. Findings, Conclusion and Suggestions
Chapter- VI Findings, Conclusion and Suggestions This study analyzed the IPO price performance short as well as long run during study period of 2009 to 2014, observed effects on the investors reaction
More informationA STUDY ON INITIAL PERFORMANCE OF IPO S IN SINDIA DURING COMPARISON OF BOOK BUILDING AND FIXED PRICE MECHANISM
A STUDY ON INITIAL PERFORMANCE OF IPO S IN SINDIA DURING 2015-16 - COMPARISON OF BOOK BUILDING AND FIXED PRICE MECHANISM Dr. P. Roopa Assistant Professor, Sree Vidyanikethan Institute of Management, Tirupati
More informationPerformance Analysis of Initial Public Offering in Indian Context
Performance Analysis of Initial Public Offering in Indian Context ABSTRACT Initial Public Offering (IPOs) is a company's first offering of equity to public. Initial Public Offer is a major source of capital
More informationThe Role of Industry Affiliation in the Underpricing of U.S. IPOs
The Role of Industry Affiliation in the Underpricing of U.S. IPOs Bryan Henrick ABSTRACT: Haverford College Department of Economics Spring 2012 This paper examines the significance of a firm s industry
More informationStatus of Primary Market Response in Nepal
The Journal of Nepalese Bussiness Studies Vol. X No. 1 December 2017 ISSN:2350-8795 56 Status of Primary Market Response in Nepal Jas Bahadur Gurung ABSTRACT This paper attempts to analyze the status of
More informationPROSIDING PERKEM IV, JILID 1 (2009) ISSN: X
PROSIDING PERKEM IV, JILID 1 (2009) 395-412 ISSN: 2231-962X SIGNIFICANCE OF INVESTOR DEMAND, FIRM SIZE, OFFER TYPE AND OFFER SIZE ON THE INITIAL PREMIUM, FIRST-DAY PRICE SPREAD AND FLIPPING ACTIVITY OF
More informationMarket Timing Ability and Stock Selection Skills of the Fund Manager
CHAPTER 6 Market Timing Ability and Stock Selection Skills of the Fund Manager Chapter 6 Market Timing Ability of the Fund Manager Page 148 MARKET TIMING ABILITY AND STOCK SELECTION SKILLS 6.1 Introduction
More informationInitial and after market performance of initial public offerings (IPOS): New evidence from Colombo Stock Exchange (CSE)
Initial and after market performance of initial public offerings (IPOS): New evidence from Colombo Stock Exchange (CSE) 1 2 Wijethunga A.W.G.C.N and Dayaratne D.A.I 1&2 Department of Accountancy & Finance,
More informationImpact of FDI on Industrial Development of India
Impact of FDI on Industrial Development of India Foreign capital and technology have been playing a vital role in India s industrial development. At the time of Independence, India inherited an industrial
More informationMyopic investment view of the Indian mutual fund industry
MPRA Munich Personal RePEc Archive Myopic investment view of the Indian mutual fund industry Rajesh Manjrekar and Pankaj Sinha Faculty of Management Studies, University of Delhi 2. May 2010 Online at http://mpra.ub.uni-muenchen.de/22458/
More informationSEBI (ISSUE OF CAPITAL AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2009 [Previously SEBI (Disclosure and Investors Protection) Guidelines 2000]
SEBI (ISSUE OF CAPITAL AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2009 [Previously SEBI (Disclosure and Investors Protection) Guidelines 2000] Payel Jain Academy of Financial Services Pvt. Ltd PUBLIC OFFER-
More informationFund Characteristics and its Impact on the Performance of Mutual Funds
CHAPTER 5 Fund Characteristics and its Impact on the Performance of Mutual Funds Chapter 5 Fund Characteristics & its Impact on the Performance Page 100 FUND CHARACTERISTICS AND ITS IMPACT ON THE PERFORMANCE
More informationGOLD PRICE MOVEMENTS IN INDIA AND GLOBAL MARKET
53 GOLD PRICE MOVEMENTS IN INDIA AND GLOBAL MARKET Shaik Saleem, Research Scholar, Department of Management Studies, Sri Venkateswara University, Tirupati, Andhra Pradesh, India. Dr. M. Srinivasa Reddy,
More informationMutual Fund Screener For the quarter ended Sep-17
Mutual Fund Screener For the quarter ended Sep-17 Mutual Fund Screener What s Inside 01 Industry Size 02 Investor Trends 03 Inflow Outflow Analysis 04 Sector Update 05 Category Performance 06 Industry
More informationCHAPTER - IV INVESTMENT PREFERENCE AND DECISION INTRODUCTION
CHAPTER - IV INVESTMENT PREFERENCE AND DECISION INTRODUCTION This Chapter examines the investment pattern of the retail equity investors in general and investment preferences, risk-return perceptions and
More informationDo economies of scale exist in the costs of raising capital?
ABSTRACT Do economies of scale exist in the costs of raising capital? TeWhan Hahn* Auburn University at Montgomery Fred Jacobs Georgia State University This study, using 1980-2011 U.S. data, investigates
More informationEMERGE symbolises the aspirations of a large number of entrepreneurs participating in the India gro th Story and ha ing potential to unlock value and
EMERGE symbolises the aspirations of a large number of entrepreneurs participating in the India gro th Story and ha ing potential to unlock value and emerge on a bigger stage. 1 What is NSE EMERGE? Platform
More informationAnalysis of the Holiday Effect
Chapter VI Analysis of the Holiday Effect An attempt has been made in this Chapter to investigate the Holiday Effect in the Indian Stock Market. According to the Holiday Effect, the stock shows abnormally
More informationUnder Pricing Anomaly Empirical Evidence from Indian Capital Market
ISSN 2278 0211 (Online) Under Pricing Anomaly Empirical Evidence from Indian Capital Market Amit Hedau Research Associate, Institute of Management Technology, Nagpur, India Dr. Vikram K. Joshi Assistant
More informationWinner s Curse in Initial Public Offering Subscriptions with Investors Withdrawal Options
Asia-Pacific Journal of Financial Studies (2010) 39, 3 27 doi:10.1111/j.2041-6156.2009.00001.x Winner s Curse in Initial Public Offering Subscriptions with Investors Withdrawal Options Dennis K. J. Lin
More informationPredicting First Day Returns for Japanese IPOs
Predicting First Day Returns for Japanese IPOs Executive Summary Goal: To predict the First Day returns on Japanese IPOs (based on first day closing price), using public information available prior to
More informationINVESTOR EXPECTATIONS ON RETURN AND TRUST ON IPO GRADING: AN EMPIRICAL ANALYSIS
International Journal of Management (IJM) Volume 7, Issue 3, March-April 2016, pp. 172 184, Article ID: IJM_07_03_016 Available online at http://www.iaeme.com/ijm/issues.asp?jtype=ijm&vtype=7&itype=3 Journal
More informationThe Determinants of Capital Structure: Analysis of Non Financial Firms Listed in Karachi Stock Exchange in Pakistan
Analysis of Non Financial Firms Listed in Karachi Stock Exchange in Pakistan Introduction The capital structure of a company is a particular combination of debt, equity and other sources of finance that
More informationBANK REPUTATION AND IPO UNDERPRICING: EVIDENCE FROM THE ISTANBUL STOCK EXCHANGE
BANK REPUTATION AND IPO UNDERPRICING: EVIDENCE FROM THE ISTANBUL STOCK EXCHANGE Abstract This study examines the effect of underwriter reputation on the initial-day and long-term IPO returns in an emerging
More informationFirm Performance Determinants of FII in Indian Financial Service Sector
DOI : 10.18843/ijms/v5i2(7)/14 DOI URL :http://dx.doi.org/10.18843/ijms/v5i2(7)/14 Firm Performance Determinants of FII in Indian Financial Service Sector Ms. Monika Khanna, Research Scholar, Prof. Meena
More informationA COMPARATIVE ANALYSIS OF EQUITY STOCKS AT SBI AND ICICI BANK Renuka N* 1, Prabhakar 2. Hyderabad, India.
ISSN: 2249-7196 IJMRR/August 2016/ Volume 6/Issue 8/Article No-6/1040-1050 Renuka N et. al., / International Journal of Management Research & Review A COMPARATIVE ANALYSIS OF EQUITY STOCKS AT SBI AND ICICI
More informationHedging Effectiveness of Currency Futures
Hedging Effectiveness of Currency Futures Tulsi Lingareddy, India ABSTRACT India s foreign exchange market has been witnessing extreme volatility trends for the past three years. In this context, foreign
More informationIPO Performance and IPO Grading in Indian Markets: An Empirical Study ( )
IPO Performance and IPO Grading in Indian Markets: An Empirical Study (2008-2012) Dr. H. N. Shivaprasad* Mr. Kallanagouda** 1. IPO Grading -Meaning and Importance SEBI is the first market regulator to
More informationMandatory IPO Grading: Does It Help Pricing Efficiency?
RESEARCH includes research articles that focus on the analysis and resolution of managerial and academic issues based on analytical and empirical or case research Mandatory IPO Grading: Does It Help Pricing
More informationEmployment in the Corporate Sector: FY17
Employment in the Corporate Sector: FY17 Contact: Madan Sabnavis Chief Economist madan.sabnavis@careratings.com 91-22-6754489 Dr. Rucha Ranadive Associate Economist rucha.ranadive@careratings.com 91-22-67543531
More informationShort-Run Performance of IPO Market in India
Article can be accessed online at http://www.publishingindia.com Short-Run Performance of IPO Market in India K. V. Bhanu Murthy*, Amit Kumar Singh** Abstract The main objective of this research paper
More informationHow do business groups evolve? Evidence from new project announcements.
How do business groups evolve? Evidence from new project announcements. Meghana Ayyagari, Radhakrishnan Gopalan, and Vijay Yerramilli June, 2009 Abstract Using a unique data set of investment projects
More informationMMS MBA Semester IV Examination, M (Printed Pages 3) Entrepreneurship & Project Management. Note : Answer all the questions.
M (Printed Pages 3) Roll No. MMS-0401 MBA Semester IV Examination, 2017 Entrepreneurship & Project Management Time Allowed : Three Hours ] [ Maximum Marks : 70 Note : Answer all the questions. 1. Attempt
More informationSubscription patterns, offer prices and the underpricing of IPOs
Subscription patterns, offer prices and the underpricing of IPOs Arif Khurshed Manchester Business School University of Manchester (Email: Arif.khurshed@mbs.ac.uk) Alok Pande Indian Institute of Management
More informationPerformance Evaluation of Banking Sector Fund in India
DOI : 10.18843/ijms/v5i3(2)/17 DOIURL :http://dx.doi.org/10.18843/ijms/v5i3(2)/17 Performance Evaluation of Banking Sector Fund in India Dr. Ashok Kumar, Assistant Professor, IMSAR, MDU Rohtak, India.
More informationInternational Journal of Computing and Business Research (IJCBR) ISSN (Online) : INVESTORS PERCEPTION ON INITIAL PUBLIC OFFER (IPO)
INVESTORS PERCEPTION ON INITIAL PUBLIC OFFER (IPO) MAHAVIR SINGH 1 ABSTRACT The present study attempts to examine the Investors Perception on Initial Public Offer (IPO). The study explains that investing
More informationFACTORS INFLUENCING THE UNDERPRICING OF INITIAL PUBLIC OFFERINGS IN AN EMERGING MARKET: MALAYSIAN EVIDENCE
IIUM Journal of Economics and Management 12, no.2 (2004): 2004 by The International Islamic University Malaysia FACTORS INFLUENCING THE UNDERPRICING OF INITIAL PUBLIC OFFERINGS IN AN EMERGING MARKET: MALAYSIAN
More informationIndian Economy. Fig1: Industrial Output Growth from May 2014
Indian Economy Industrial Production Industrial production surged to 13-month high in Nov 2016 After several months of subdued or negative growth, industrial production in India jumped to 5.7% year-on-year
More informationPrivate Equity and IPO Performance. A Case Study of the US Energy & Consumer Sectors
Private Equity and IPO Performance A Case Study of the US Energy & Consumer Sectors Jamie Kerester and Josh Kim Economics 190 Professor Smith April 30, 2017 2 1 Introduction An initial public offering
More informationDividend Policy Of Indian Corporate Firms Y Subba Reddy
Introduction Dividend Policy Of Indian Corporate Firms Y Subba Reddy Starting with the seminal work of Lintner (1956), several studies have proposed various theories in explaining the issue of why companies
More informationSectoral Lending by Ethiopian Commercial Banks: a Performance Analysis
Sectoral Lending by Ethiopian Commercial Banks: a Performance Analysis A.S.Kannan, Ph.d Scholar, School of Management, Pondicherry University, Puducherry Email: professorkannan@gmail.com Dr. S. Sudalaimuthu,
More informationFinancing Pattern of Companies in India Amita Research scholar, School of Applied Management, Punjabi University Patiala
Financing Pattern of Companies in India Amita Research scholar, School of Applied Management, Punjabi University Patiala amita.bodla@gmail.com Abstract: The objective of this paper is to present Financing
More informationJournal of Insurance and Financial Management, Vol. 1, Issue 4 (2016)
Journal of Insurance and Financial Management, Vol. 1, Issue 4 (2016) 68-131 An Investigation of the Structural Characteristics of the Indian IT Sector and the Capital Goods Sector An Application of the
More informationCHAPTER-8 SUMMARY, FINDINGS & SUGGESTIONS
CHAPTER-8 SUMMARY, FINDINGS & SUGGESTIONS SR. NO. PARTICULAR P. NO 8.1 INTRODUCTION 166 8.2 METHODOLOGY 166 8.3 ANALYSIS OF LIQUIDITY 167 8.4 ANALYSIS OF PROFITABILITY 168 8.5 ANALYSIS OF FINANCIAL STRUCTURE
More informationUnderwriter s Discretion and Pricing of Initial Public Offerings
International Journal of Business Management and Economics Research. ISSN 2349-2333 Volume 2, Number 2 (2015), pp. 107-122 International Research Publication House http://www.irphouse.com Underwriter s
More informationTrends and Structure of Employment and Productivity in Unorganized Manufacturing Sector of India in Post-reform Period
Trends and Structure of Employment and Productivity in Unorganized Manufacturing Secr of India in Post-reform Period Anupama Uppal (Punjabi University, India) Paper prepared for the 34 th IARIW General
More informationEVALUATION OF FINANCIAL PERFORMANCE OF INSURANCE COMPANIES VIS-A-VIS DISTRIBUTION CHANNELS
CHAPTER VI EVALUATION OF FINANCIAL PERFORMANCE OF INSURANCE COMPANIES VIS-A-VIS DISTRIBUTION CHANNELS EVALUATION OF FINANCIAL PERFORMANCE OF INSURANCE COMPANIES VIS-A-VIS DISTRIBUTION CHANNELS Insurance
More informationKeywords: Performance Measures, Equity Linked Savings Scheme, Risk Adjusted Returns.
Vol-3 Issue-5 2017 IJARIIE-ISSN(O)-2395-4396 An Empirical Study on Long Term Performance of Equity Linked Savings Schemes in Mutual Funds K.Alamelu, Ph.D Research Scholar, Dr.G.Indhumathi, Assistant Professor,
More informationGROUP AFFILIATION AND THE PERFORMANCE OF INITIAL PUBLIC OFFERINGS IN THE INDIAN STOCK MARKET 1. Vijaya B Marisetty 2. and. Marti G Subrahmanyam 3
GROUP AFFILIATION AND THE PERFORMANCE OF INITIAL PUBLIC OFFERINGS IN THE INDIAN STOCK MARKET 1 Vijaya B Marisetty 2 and Marti G Subrahmanyam 3 1 We thank Heitor Almeida, Bhagwan Chowdhary, Alexander Ljungqvist
More informationThe Secondary Market. The secondary market for equity 4.5 The trading intensity of Indian stock exchanges is impressive by world standards.
The Secondary Market The secondary market for equity 4.5 The trading intensity of Indian stock exchanges is impressive by world standards. Table 4.2 : Biggest exchanges by number of transactions in 2005
More informationPerformance of Initial Public Offerings in Public and Private Owned Firms of Pakistan. Henna and Attiya Yasmin Javid
Performance of Initial Public Offerings in Public and Private Owned Firms of Pakistan Henna and Attiya Yasmin Javid Introduction When any private company first time sells his stock to general public is
More informationSummary o. f findings, Conclusion and suggestions
Summary o. f findings, Conclusion and suggestions CHAPTER-IX SUMMARY OF FINDINGS, CONCLUSION AND SUGGESTIONS In this chapter, an attempt is made to highlight the major inferences with a view of provide
More informationMutual Fund Screener For the quarter ended Dec-17
Mutual Fund Screener For the quarter ended Dec-17 Mutual Fund Screener What s Inside 01 Industry Size 02 Investor Trends 03 Inflow Outflow Analysis 04 Sector Update 05 Category Performance 06 Industry
More informationNATIONAL PENSION SYSTEM TRUST NPS TRUST - A/C KOTAK PENSION FUND SCHEME E - TIER I. BALANCE SHEET AS AT March 31, 2018 (UNAUDITED) Total.
NPS TRUST - A/C KOTAK PENSION FUND SCHEME E - TIER I BALANCE SHEET AS AT March 31, 2018 (UNAUDITED) Schedules Liabilities Unit Capital 1 705,304,381 417,541,928 Reserves and Surplus 2 1,047,252,707 515,503,272
More informationVenture Backed IPO's in India: Issues of Certification and Underpricing
The Journal of Entrepreneurial Finance Volume 9 Issue 2 Summer 2004 Article 5 December 2004 Venture Backed IPO's in India: Issues of Certification and Underpricing A. Vinay Kumar Indian Institute of Management
More informationThe Economic Growth of Gujarat
The Economic Growth of Gujarat Deccleration in the Third Plan: Some Reasons Mahesh Bhatt V K Chawds In the Second Plan the rate of growth achieved by Gujarat was appreciably higher than that of the national
More informationVolume Title: Diversification and Integration in American Industry. Volume URL:
This PDF is a selection from an out-of-print volume from the National Bureau of Economic Research Volume Title: Diversification and Integration in American Industry Volume Author/Editor: Michael Gort Volume
More informationSection A (Short Answer Type Questions)
B.Com. (Hons.) V Semester Paper Title: Paper Code: AS-2640 *(Prepared by Mr. Amit Manglani, Assistant Professor, Department of Commerce, GGV) Note: These model answers are a depiction of important points
More informationThe subprime mortgage crisis and its blow on the financial performance: A case of Indian banking industry
The subprime mortgage crisis and its blow on the financial performance: A case of Indian banking industry Neha Aggarwal Research Scholar, University of Jammu, Jammu. Abstract Globalization has brightened
More informationPerformance Evaluation of Gilt Mutual Fund Schemes in India
DOI : 10.18843/ijms/v5i2(6)/04 DOI URL :http://dx.doi.org/10.18843/ijms/v5i2(6)/04 Performance Evaluation of Gilt Mutual Fund Schemes in India Kamalpreet Kaur, Research Scholar, Department of Commerce,
More informationPublic Issue of India Infoline Finance Ltd. NCD
P a g e 1 Q1. What is the nature and size of issue? Issue Related FAQs Ans: Public Issue of Non-convertible Debentures (NCDs) in the nature of Sub-ordinated debt of face value of Rs. 1,000/- per bond with
More informationAn Empirical Examination of Firm Characteristics and Its Impact on Listing Day Return
International Journal of Finance and Accounting 2014, 3(5): 277-285 DOI: 10.5923/j.ijfa.20140305.01 An Empirical Examination of Firm Characteristics and Its Impact on Listing Day Return Poonam Rani National
More informationPERSPECTIVA. A Case Research Journal Volume 1I (2016) Kotak Mahindra Bank and ING Vysya Bank Merger. Dr. Asha Nadig
PERSPECTIVA A Case Research Journal Volume 1I (2016) Kotak Mahindra Bank and ING Vysya Bank Merger Dr. Asha Nadig Symbiosis Institute of Business Management (Constituent of Symbiosis International University
More informationAnalysis of Economic Value Added (EVA) and Market Value Added (MVA)
CHAPTER VI Analysis of Economic Value Added (EVA) and Market Value Added (MVA) Maximizing shareholders value is becoming the new corporate standard in India. The corporates, which give the lowest preference
More informationSconsider factors of production, SME sector requires
44 SME IPOs in Indian Capital Market A. R. Tripathi, Gautam Pratap Pradhan and Shri Narayan Pandey A b s t r a c t The present study attempts to examine the performance of IPOs which were issued though
More informationA Study on Performance of Mutual Funds
Volume-6, Issue-1, January-February-2016 International Journal of Engineering and Management Research Page Number: 512-517 A Study on Performance of Mutual Funds Pritam Naik Post Graduation Department,
More informationThe Analysis of the Initial and Post Issue Performance of Initial Public Offerings (IPOs) in Indian Stock Market
The Analysis of the Initial and Post Issue Performance of Initial Public Offerings (IPOs) in Indian Stock Market ar nh,ukfyfll vkwiq nh bfuf'k;y,.m ikslv b';q ijiqksjesal vkwiq bfuf'k;y ifcyd vkwiqfjaxl
More informationIMPACT OF FOREIGN CAPITAL INFLOWS ON INDIAN STOCK MARKET
A Publication of IMPACT OF FOREIGN CAPITAL INFLOWS ON INDIAN STOCK MARKET ABSTRACT Santosh Chauhan* *Geeta Institute of Management and Technology, Kanipla, kurukshetra, India. India has emerged as one
More informationCHAPTER: 6 FINDINGS, SUGGESTIONS AND CONCLUSION
CHAPTER: 6 FINDINGS, SUGGESTIONS AND CONCLUSION 6.1 Introduction This chapter is the heart of the whole It provides its emerging conclusion based on the analysis carried out during the contemplative The
More informationPublic Issue of Tax Free Secured Redeemable Non-Convertible Bonds issued by
Public Issue of Tax Free Secured Redeemable Non-Convertible Bonds issued by HIGHLIGHTS OF TAX BENEFITS In exercise of the powers conferred by item (h) of sub-clause (iv) of clause (15) of Section 10 of
More informationCHAPTER - V INFORMATION TECHNOLOGY IN BANKING: NATURE AND TRENDS
84 CHAPTER - V INFORMATION TECHNOLOGY IN BANKING: NATURE AND TRENDS In the recent years, the utilization of information technology has magnificently increased in service industry, particularly in the banking
More informationMutual Fund Screener For the quarter ended Mar-18
Mutual Fund Screener For the quarter ended Mar-18 Mutual Fund Screener What s Inside 01 Industry 02 Investor 03 Inflow Outflow 04 Sector Size Trends Analysis Update 05 Category Performance 06 Industry
More informationIPO certification: The role of grading and transparent books. University of Manchester. University of Bergamo
IPO certification: The role of grading and transparent books Arif Khurshed a,, Stefano Paleari b, Alok Pande c, Silvio Vismara b a Manchester Business School University of Manchester b Department of Economics
More informationAnalysis of Risk & Return of Indian Industrial Sectors
Airo International Research Journal September, 2016 Volume VII, ISSN: 2320-3714 Dr. Seema Shokeen Assistant Professor Department of Business Administration Maharaja Surajmal Institute, New Delhi Email
More informationCHAPTER IV BID ASK SPREAD FOR FUTURES MARKETS
CHAPTER IV BID ASK SPREAD FOR FUTURES MARKETS 4.1 INTRODUCTION Futures and Options (commonly denoted as F&O) was introduced in the National Stock Exchange during 2000s. Since its introduction, there has
More information1 An Analysis of Factors Affecting Investor Demand for Initial Public Offerings in Singapore*
1 An Analysis of Factors Affecting Investor Demand for Initial Public Offerings in Singapore* Li Li Eng The National University of Singapore, Singapore Hwee Shan Aw The National University of Singapore,
More informationShabd Braham E ISSN
A Comparative Study on the Financial Performance of Selected Mutual Fund Schemes Shiji Shukla (Asst. Professor) Prof. (Dr.) Babita Kadakia, Principal Idyllic Institute of Managements Indore, Madhya Pradesh,
More informationChapter - VI COMPARATIVE STUDY OF SELECTED MUTUAL FUNDS
Chapter - VI COMPARATIVE STUDY OF SELECTED MUTUAL FUNDS CHAPTER - VI COMPARATIVE STUDY OF SELECTED MUTUAL FUNDS After evaluating the performance of selected mutual fund schemes in last chapter, a comparative
More informationThe use of business services by UK industries and the impact on economic performance
The use of business services by UK industries and the impact on economic performance Report prepared by Oxford Economics for the Business Services Association Final report - September 2015 Contents Executive
More informationMUTUAL FUNDS AN AVENUE TO INVESTORS
MUTUAL FUNDS AN AVENUE TO INVESTORS. M.Sudha Madhavi I/C Principal & Associate Professor Saanvi P.G. College for Women Hyderabad-500058 Email : smakella@gmail.com ABSTRACT Mutual funds have become one
More informationResearch Article Stock Prices Variability around Earnings Announcement Dates at Karachi Stock Exchange
Economics Research International Volume 2012, Article ID 463627, 6 pages doi:10.1155/2012/463627 Research Article Stock Prices Variability around Earnings Announcement Dates at Karachi Stock Exchange Muhammad
More informationAn Analysis of Earnings Quality among Nationalised Commercial Banks
An Analysis of Earnings Quality among Nationalised Commercial Banks Dr. Surinder Singh Kundu 1 and Mr. Deepak Kumar Sharma 2 Abstract Performance of the economy of any country is largely depends on the
More informationIndian IPO Performance
International Journal of Humanities and Social Science Invention (IJHSSI) ISSN (Online): 2319 7722, ISSN (Print): 2319 7714 Volume 6 Issue 12 December. 2017 PP.12-17 Indian IPO Performance 1 Dr. Nalina
More informationA Wholly Owned Government Company
PUBLIC ISSUE OF TAX FREE SECURED REDEEMABLE NON CONVERTIBLE DEBENTURES of face value of ` 1,000 each having tax benefits under section 10(15) (iv) (h) Income Tax Act, 1961, as amended for an amount aggregating
More informationInternational Journal of Enterprise Computing and Business Systems HOUSING FINANCE: STUDY WITH REFERENCE TO KADAPA CORPORATION
HOUSING FINANCE: STUDY WITH REFERENCE TO KADAPA CORPORATION Dr. Rajani Levaku Facutly Consultant Department of Commerce Yogi Vemana University, Kadapa ABSTRACT Housing is one of the basic needs of society.
More informationAnnual Business Survey of Economic Impact 2004
Annual Business Survey of Economic Impact 2004 Table of Contents Executive Summary... 3 Introduction... 3 Irish-Owned Manufacturing and Internationally Traded Services... 3 Foreign-owned Manufacturing
More informationInitial Public Offering. Corporate Equity Financing Decisions. Venture Capital. Topics Venture Capital IPO
Initial Public Offering Topics Venture Capital IPO Corporate Equity Financing Decisions Venture Capital Initial Public Offering Seasoned Offering Venture Capital Venture capital is money provided by professionals
More informationSTUDY THE UNDERPRICING AND PRICING MECHANISMS USED IN IPOS IN BSE
STUDY THE UNDERPRICING AND PRICING MECHANISMS USED IN IPOS IN BSE Prashant Kumar 1, Mukesh Kumar 2 1,2 Research Scholar Department of Business Administration, University of Lucknow, (India) ABSTRACT Initial
More informationCommon mistakes made when investing in the Primary Market
Common mistakes made when investing in the Primary Market The Primary Market, also called the New Issue Market, is the market for issuing new securities. The Colombo Stock Market witnessed 18 new share
More informationDo Indian Mutual funds with high risk adjusted returns show more stability during an Economic downturn?
Do Indian Mutual funds with high risk adjusted returns show more stability during an Economic downturn? Kalpakam. G, Faculty Finance, KJ Somaiya Institute of management Studies & Research, Mumbai. India.
More information