Comparative profit performance analysis of IPOs among top five issuing sectors in India

Abstract

Initial Public offer (IPO) is a process through which an unlisted company can be listed to a Stock exchange by offering its securities to the public. IPO may be for expansion of existing activities of the company or setting up of new projects or just to get its existing equity shares listed by diluting the stake of existing equity shareholders through offer for sale or any other object as may be specified by the Company in its offer document. In this paper, an attempt has been made to analyze the comparative profit performance analysis of IPOs among top five sectors in Indian stock markets. It examines listing day performance of IPOs, post-listing aftermarket performance of IPOs, current-price of IPOs in the Indian stock market. This study is based on secondary data collected from stock reports of Indian Stock Markets for the study period i.e., 2012-13 to 2020-21. Profit Ratios, t-test, correlation analysis has been used to analyze the present data. The study suggested that once the stock goes public, there's a good chance you won't initially make money. IPOs generates higher returns on investments of companies and investors.