Initial Public Offerings in the Indian Stock Market: A Literature Review
Abstract
This literature review examines the dynamics, performance, and determinants of Initial Public Offerings (IPOs) in the Indian stock market. The Indian IPO market has experienced significant growth over the past two decades, emerging as one of the world's most active markets. This paper synthesizes existing empirical and theoretical research to analyze underpricing phenomena, long-term performance, pricing mechanisms, market efficiency, and investor behavior in Indian IPOs. The review identifies key factors influencing IPO success, including market conditions, firm characteristics, and regulatory frameworks. Findings suggest that Indian IPO underpricing is substantially higher than global averages, with implications for pricing strategies and market efficiency. The paper concludes by highlighting gaps in existing literature and recommending directions for future research in this dynamic market segment.