Pricing and Performance of IPOs in India- A Critical Review

Initial public Offers (IPOs) become the most popular way of raising finance in India. A Lot of studies has been conducted on various aspects of IPOs, i.e., Valuation and pricing of securities and performance of these securities after listing. Literatures are also available regarding the factors affecting the pricing and performance of securities. Various theories/hypothesis explains the reasons of under pricing of IPOs such as Winners curse hypothesis, Signaling theory, Information gathering theory etc. In this paper an attempt is made to critically review the studies done on the subject of IPOs in India as well as abroad.