What Determines the IPO Performance—A Short Run Analysis of Indian Market

In the recent years the number of retail investors have increased and the expectations on the returns from the market through shares have also increased. The number of companies which has turned into IPO as a source of fund has also increased. Because of the volatility of the market, investment in an IPO has turned risky too. The demand and supply forms one factor which determines the price movement of the share. Media play a major role in influencing the investors to a greater extent to take decisions even before analyzing the past performance of the company. There is a need to conduct series of studies to analyze and understand the performance of IPO after listing and give information to the investors to suggest whether to hold the IPO’s for a shorter period or for a longer period. The present study aims to understand the influencing factors of IPO performance after listing and the period to hold the IPO for profit gaining in the short run.