Determinants of Long-Term IPOs Performance in India, The Role of Sentiment and Market Timing

Abstract

This study investigates the determinants of short-term and long-term IPO performance in India, with particular emphasis on investor sentiment and market timing. The sentiment of the investors is taken in terms of the Grey Market Premium (GMP) and timing in the market taken in the terms of the changes in the NIFTY index and variations in the India VIX during the period of IPO listing. The analysis in the study is based on secondary data of the recent IPOs in India where statistical analysis is done to analyze the correlation, regression and ANOVA analysis using SPSS to determine the relationship between the listing-day performance and post listing returns.