"An Empirical Study on Trends, Growth, and Underpricing in SME Initial Public Offerings in India (2015–2024)"
DOI:
https://doi.org/10.48047/wh93g849Keywords:
IPO, listing day gains, pricing efficiency, regulatory challenges, SME, underpricing.Abstract
This paper analyses the patterns, growth, and underpricing of SME Initial Public Offerings (IPOs)
in India from 2015 to 2024. During this period, 990 SME IPOs generated ₹20,200 crore, with
underpricing noted in 79.79% of instances, resulting in an average first-day increase of 24.63%.
The research utilizes a mixed-methods approach, combining quantitative analysis of IPO price
trends with statistical hypothesis testing via the t-test to evaluate pricing efficiency. Research
indicates that underpricing has escalated over time, reaching its peak of 89% in 2024, while
average first-day gains have surged from 4% (2015–2019) to 56% in 2024, signifying enhanced
market speculation. Principal reasons affecting underpricing encompass information asymmetry,
market sentiment, and underwriter tactics.
Downloads
Downloads
Published
Issue
Section
License
This work is licensed under a Creative Commons Attribution 4.0 International License.
You are free to:
- Share — copy and redistribute the material in any medium or format for any purpose, even commercially.
- Adapt — remix, transform, and build upon the material for any purpose, even commercially.
- The licensor cannot revoke these freedoms as long as you follow the license terms.
Under the following terms:
- Attribution — You must give appropriate credit , provide a link to the license, and indicate if changes were made . You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
- No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.
Notices:
You do not have to comply with the license for elements of the material in the public domain or where your use is permitted by an applicable exception or limitation .
No warranties are given. The license may not give you all of the permissions necessary for your intended use. For example, other rights such as publicity, privacy, or moral rights may limit how you use the material.
