Purpose The unique regulatory design of India provides us with the opportunity to disaggregate traditional initial public offering (IPO) underpricing into three categories: voluntary, pre-market and post-market. The presence of anchor investors in India makes it a compelling case to study. These individuals were introduced to bring transparency in the book building process, but their impact on pre-market and post-market underpricing was not foreseen. Therefore, the purpose of this paper is to evaluate the impact of anchor investors on the IPO underpricing after disaggregation and on the long-run performance of an IPO. Design/methodology/approach A sample covering 232 IPOs from a period of 2009–2018 is included. The empirical analysis explores the impact of various firm-specific as well as market-specific variables on IPO underpricing. The financial data for the empirical analysis are extracted from Prime database and websites of National Stock Exchange and Bombay Stock Exchange. To deal with the outliers effectively, this paper deploys “robust-regression.” Findings The study finds that investor’s subscription rate and voluntary underpricing impacts the pre-market but do not have any impact on the post-market while the age of the firm has a different impact on both the markets and the number of anchor investors have the same impact in both markets. Anchor investors’ participation increases the pre-market as well as post-market underpricing. Lastly, the long-term performance of IPOs backed by the anchor investors is high relative to the IPOs not subscribed to by the anchor investors. Originality/value This paper is believed to be the first attempt to study the impact of anchor investors on the disaggregated IPO underpricing. The findings of this study will have a great insight for the investors.

Purpose In initial public offerings (IPOs), the media plays a pivotal role by disseminating the information to the investors who generally lack the expertise to understand the information through the prospectus. Thus, media coverage can impact the investment decision of the investors and the IPO performance. Media typically covers the IPO before listing, suggesting that it may play an important role in explaining the opening price rather than the closing price on the day of listing. Therefore, this study aims to disaggregate the traditional IPO underpricing into three categories: voluntary, pre-market and post-market and provides a comparative analysis of the media sentiments impact on the traditional and disaggregated IPO underpricing. The authors’ disaggregated IPO underpricing analysis will facilitate the investors in making an effective investment strategy based on media sentiments. Design/methodology/approach The study deploys sentiment analysis using bags of n (2) grams approach to gauge the sentiments on 2,891 media articles and uses “robust-regression” technique to analyze them on a sample of 222 Indian IPOs during 2009–2018. Findings The study reports that the sentiment score is positively related to the traditional underpricing; the sentiment score is positively associated with the pre-market underpricing and does not have any significant relationship with the post-market underpricing; the number of media articles does not play a significant role in explaining the IPO underpricing. The findings highlight the presence of a semi-strong form of efficiency in the Indian IPO market. Originality/value Existing literature focuses that the role of media on IPO performance is based on the developed countries. IPO laws differ based on the countries. For instance, in India, investors can check the demand by the other categories of investors on a real-time basis. Thus, it is interesting to study whether, with such a high level of transparency, media can explain IPO performance in the Indian market. Media generally covers IPO before listing; therefore, the present study disaggregates the IPO underpricing to evaluate the role of media on the primary and secondary market separately. It will help the investors to decide when to enter and exit the market.

Compatibility between asset and liability structures of a bank is necessary to maintain adequate liquidity, enhance profitability, and control risk within acceptable limits. Coordinated management of the two has assumed special significance with growing competition, complexity and risk in the banking sector. The objective of this study is to examine and explore the nature and strength of relationship between various assets and liabilities of 68 commercial banks operating in India for eight consecutive years, 1992–2000. The special emphasis is on the performance of banks grouped by their ownership structure and size. The portfolio-matching behaviour has been examined using canonical correlation analysis – a multivariate statistical technique used for evaluating the relationship between two sets of variables. The study reveals that most of the banks, in general, show prudent matching of assets and liabilities. The most prominent relationship is between short term deposits and SLR securities. However, there are substantial inter-group and inter-period differences.

This case tries to analyse the impact of media sentiments on Initial Public Offering (IPO) underpricing. To delve deeper into the concept, two firms (Avenue Supermarts and Vaswani Industries Limited) are considered in this case, and the significance of media sentiments on IPO underpricing is highlighted. Through these two real-life examples, the case could show that the manner in which media reports an IPO can significantly impact their first-day returns. 1 This highlights the emerging role of qualitative data apart from quantitative data in explaining the dilemma of IPO underpricing. This case will try to encourage the discussion in the class regarding the role of media in explaining the reasons for high over/under priced IPOs. This facilitates discussion on the emerging role of behaviour finance in decision-making. This case also provides new learning to students regarding dealing with qualitative data in finance and basics of sentiment analysis. Dilemma: How to match the expectation of the market for pricing of an IPO. Theory: Information asymmetry Type of the case: Decisional and applied Protagonist: Not needed Options Underwriters can price the IPO below the price institutional investors are ready to pay or above it. Discussions and Case Questions What is the role of institutional investors? What will happen if the locking period is waived for the institutional investors? What are the sources of information for retail investors? Describe the role of media in influencing the sentiment of small investors.