A STUDY ON IPO DURING THE PANDEMIC ERA
Abstract
The objective of this study is to analyse the performance of IPO during the pandemic era. The current study covers 10 IPO’s issued during the period from 1st March2020 to 31st March 2021. The following are the IPO’s studied, SBI Cards and Payment Ltd., Rossari Biotech, Yes Bank Ltd, Mindspace Business Parks, Happiest Minds Technology Ltd., Route Mobile Ltd, Computer Age Management Services Ltd, Chemcon Specialty Chemicals Ltd, Angel Broking and UTI Asset Management Company. For the study of IPO’s, the following parameters were considered, Offer Price, listing day Close Price, Age of the Firm, Time Subscribed and Nifty 50 Index- Closing Price. The following were the observations made that the short-term performance of IPO is positive as the average MAER is 38 % and there is a high chance for Indian investor to earn high profits. IPO provide positive abnormal returns by the end of first trading day. The medium-term performance of the IPO sample is positive as the average MAER is 33% which is less when compared with the short term. The long-term performance of IPO sample is positive as the average MAER IS 59%, as the two IPO Happiest Mind Technologies Ltd. and Route Mobile Ltd. received good returns. This study, shows that investment in IPO gives good returns to an Indian investor.
Keyword : IPO, Listing gains, MAER
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