Valuation of IPO Performance: A Study of Pre and Post Scenario

In: Journal of global economy, Band 5, Heft 2, S. 135-155

Abstract

India is a growing economy. It grows by leaps and bounds day by day. With the introduction of Liberalisation, Privatization and Globalization, the economy has become an open financial system. There is vast number of opportunities available in the economy for the companies to grow, succeed and diversify their business. Availing of growth opportunities by the company depends on the availability of finance. Starting a new venture, expanding the existing venture or diversifying the existing venture would require the funds. For raising funds, the company has to move in the Capital Market. In Capital Market, Initial Public Offer (IPO) is one of the major methods to raise finance from the public. IPO occurs when the company issues its shares in the Primary Market. IPO help the company in extending liquidity from the market.