Investors’ Goldmine or Gamble? A Year in the Indian IPO Market
Author : Fadeen Ali PT, Shivam Shukla D, Sumanth Reddy and Dr. Thirupathi Manickam
Abstract :
In the year 2024, the IPO market of India was impressively active, and this meant that the year was a time of great metamorphosis for money sourcing. This research studies the operation of the IPOs that got introduced during the said year, highlighting their gains on the listing day, the post-listing trends, and overall market implications. The market, which experienced rapid economic growth, a high inflow of investment fund into the stock market, and supportive market regulations, was the main component of the IPO combine that managed to raise the necessary cash through the successful listing of technology, health, and the sector of energy and power in the stock exchange. While a number of IPOs gave an incredible return, a few of others also did not perform well which in turn raised the issue of whether IPOs are wealth-enhancing or speculation.
The main purpose of this study was to analyze whether the listing-day performance of an IPO provides an actual short-term financial power to the investors through descriptive and observational research. The research findings indicate that there are good as well as bad events: this is, while many new and internationally leading businesses managed to achieve a successful first-day trade, companies from other sectors were left behind because of overvaluation and the difficult situation of the macroeconomics. Factors such as the pre-IPO valuation, subscription levels, industry sector, and the sentiment of the investor are the determining issues for these listings. This has been in addition to the regulatory presence of SEBI which has been encouraging the pricing transparency and post-listing governance.
This study gives a new insight into the retail and institutional investors, policy maker’s roles, and market analysis, and it is aimed at finding a way to invest in IPOs that will offer good returns to one’s investment. This work, which is based on real market data, adds to informed decision-making for issues concerning the stock market such as whether the investment is safe and the market’s confidence in investors. In this way, the paper serves the purpose of understanding that at one moment IPO investments can turn to be very successful, whereas at another moment the evaluations and compliance with the requirements become needed before a public offer.
Keywords :
IPO, Indian capital markets, listing-day performance, investor sentiment, regulatory reforms, market volatility.
