Certification role of transparency and anchor investors in Indian IPOs
by Sweta Agarwal
Afro-Asian J. of Finance and Accounting (AAJFA), Vol. 11, No. 1, 2021

Abstract: The study examines the effect of bidding information of anchor and other institutional investors, on retail investors' subscription and short-term IPO performance in the Indian market. The study also tries to find out specific anchor investors' characteristics which influence investor decisions. The results show that anchor investors play a certification role for institutional investors only. Both institutional and retail investors follow bids of each other during the book-building period. High institutional and retail subscriptions have a positive effect on initial returns. In anchor-backed IPOs, unique business group participation and anchor over-subscription have a high positive impact on both subscription and IPO initial returns.

Online publication date: Tue, 15-Dec-2020

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