A Research Paper On The Impact Of Regulatory Framework On IPO Under Pricing

Preeti Thakur

Abstract


As we all know initial public offering (IPO) underpricing and regulatory framework is the hottest topic in the current industry, mainly because of India being a developing country and lot of growth in various sectors which leads a country to ultimate success. The purpose of this study is to study whether Underpricing exists in Indian IPOs or not and to study the impact of regulatory framework on IPO Underpricing. In this research project the data is analyzed by descriptive and comparative method. The findings came out and it was found that Indian market have more underpricing than over pricing which can observed by descriptive method. On the based on the descriptive method, the average underpricing value is achieved 101% by fixed price and 27% by book building method. On the basis of comparative method, the value of underprice is less in case of book building method compare to fixed price method. On the basis of both the method, the book building method is the best method for getting of IPO pricing

Keywords


IPO Under pricing, Regulatory Framework, current industry status

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References


Websites:-

www.sebi.govt.in/faq/ipograding/html [viewed on 10/12/2011]

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