An Empirical Study on Post Listing performance of Initial Public Offering

Abstract

Initial public offering is a public issue of securities brought by a company for the first time in market. The objective of the study is to analyze the short term and long term performance of IPO post listing. The study attempts to analyze short term performance through Marketadjusted abnormal returns model and long term performance is analyzed by market adjusted long term returns model. The results of study show that the variables like issue price, listing day closing price of IPO and pricing affects the short term performance of an IPO, it is also found that issue size does not affect the short run performance, whereas the model of long termperformance is not found to be fit.