📄 Abstract
Initial Public Offerings (IPOs) play an important role in capital formation and financial market development. They often exhibit a phenomenon known as underpricing, where the listing price exceeds the offer price, generating abnormal first-day returns for investors. This study examines IPO underpricing in the Indian capital market during the period 2020–2024. The research specifically investigates whether IPO waves exist in India and how factors such as subscription ratio, issue size, and sectoral classification influence listing-day performance. Using secondary data collected from the National Stock Exchange (NSE), Bombay Stock Exchange (BSE), and company prospectuses, the study analyzes selected mainboard IPOs across three distinct phases: the boom phase (2020–2021), the slowdown phase (2022), and the revival phase (2023–2024). The findings indicate substantial variation in IPO underpricing across these phases, with average underpricing levels of 76.58%, 10.22%, and 70.44% respectively. The results confirm that investor demand, measured through subscription ratios, significantly influences listing returns. Issue size demonstrates a negative but phase-dependent relationship with underpricing, while sectoral trends show stronger performance in technology and financial firms during expansionary periods. Overall, the study provides strong evidence of cyclical IPO waves in the Indian market and highlights the role of market sentiment in shaping IPO pricing outcomes.
📚 How to Cite:
Nandini Mukherjee, Dr. Sabeeha Fatima , IPO UNDERPRICING IN INDIA: EVIDENCE FROM IPO WAVES (2020-2024) , Volume 12 , Issue 3, March 2026, EPRA International Journal of Multidisciplinary Research (IJMR) ,