Grading and Risk-Adjusted Performance of Indian IPOs

Authors

  •   Harendra Singh Assistant Professor, School of Business, Lovely Professional University, Phagwara - 144 411, Punjab
  •   C. G. Sastry Campus Director, Roots : An International School of Business & Management, Hyderabad - 500 082

DOI:

https://doi.org/10.17010/ijf/2014/v8i8/71856

Keywords:

Grading

, Certification, IPOs, Underpricing

G11

, G15, G18

Paper Submission Date

, September 23, 2013, Paper sent back for Revision, February 4, 2014, Paper Acceptance Date, April 17, 2014.

Abstract

Most studies on price performance of Indian IPOs have strengthened international evidence that there would be a strong underpricing in the short run, but negative returns in the long-run. To solve the problem of mispricing and include more transparency, SEBI mandated the grading of IPOs by recognized credit rating agencies from May 1, 2007. The mandatory grading process is expected to give an independent assessment of the fundamentals of the issue. In this research paper, we tried to ascertain the impact of grading on the performance of IPO firms. We attempted to understand the efficacy of the grading mechanism in place to address the problems associated with adverse selection and improve pricing efficiency.

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Published

2014-08-01

How to Cite

Singh, H., & Sastry, C. G. (2014). Grading and Risk-Adjusted Performance of Indian IPOs. Indian Journal of Finance, 8(8), 57–65. https://doi.org/10.17010/ijf/2014/v8i8/71856

Issue

Volume 8, Issue 8, August 2014

Section

Articles
Crossref
Scopus
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Europe PMC

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