Title: Analysing critical indicators of initial performance of IPO: evidence from an emerging market

Authors: P. Sridevi; S. Nivetha

Addresses: Department of Management Studies, National Institute of Technology, Tiruchirappalli, India ' Department of Management Studies, National Institute of Technology, Tiruchirappalli, India

Abstract: This research aims to develop models for factors that influence the performance of initial public offerings (IPO), by considering opening price acts as a good indicator for estimating the first-day closing price and initial performance of the IPO emerging Indian market using machine learning technique. This study analysed mainline IPOs of 247 Indian companies, traded and issued on NSE in the years 2009-2020. The study reveals the presence of underpriced IPOs in India, with 67% of IPOs being underpriced at the opening price on the listing day, and 64% remaining underpriced by the time the market closed on the listing day during the research period. The findings of this study strongly suggest that the opening price performance of an Indian IPO is influenced by 21 Day's return on the Nifty 50 index prior to the first trading date (MS21), and the initial day performance of an Indian IPO is influenced by the offer price (OP).

Keywords: India; IPO performance; market sentiment; offer price; machine learning technique.

DOI: 10.1504/IJICBM.2025.147927

International Journal of Indian Culture and Business Management, 2025 Vol.35 No.4, pp.419 - 439

Received: 19 Jul 2023
Accepted: 22 Jul 2023
Published online: 11 Aug 2025 *

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