A Comparative Study on the Performance of select Initial Public Offerings (IPOs) in Indian Capital Market in the Pre-Covid and Covid Period

Abstract

Covid-19 pandemic has affected all the parts of the society across the globe in different ways and magnitude. During the lock down period, the trading, investing, and stock market participation among the investors have been increased among the people across the globe. To take the benefit of liquidity of the market, listing of the shares of companies in the recognized stock exchanges in India have increased during this pandemic. To assess the impact of Covid on the performance of IPOs, five listing of IPOs of the pre Covid period and five listing of IPOs of during the covid period of construction and engineering sector have been considered. The average listing gain of the prices of the IPOs of Covid period accounted higher as compared to the average listing gains of the prices of the IPOs listed in the market in pre-Covid period. The average listing day gain of the prices of the IPOs of Covid period accounted also higher as compared to the average listing day gains of the prices of the IPOs listed in the market in pre- Covid period. Average 30 days’ return of the prices of IPOs listed in pre Covid period recorded higher as compared to the average 30 days’ return of the prices the IPOs listed in Covid period. The result of pair t test indicates that there is no significant difference of the listing gain of the prices of the IPOs listed before covid and the covid period.