A Comparative Study on Stock Market Performance of Sme Ipos and Mainboard Ipos Issued During Covid 19 Pandemic in India
Abstract
Initial Public Offer (IPO) is when a company issue shares to the public for the first time. The IPOs are considered as the launchpad for the growth of any company. A healthy and vibrant IPO market is very important for the growth of the economy since it can stimulate the flow of money to new ventures. The primary objective of IPO market is to facilitate access to capital at a fair price for the company. The outbreak of COVID19 pandemic has affected the social and economic life of people around the world. It has affected almost all the sectors and capital market was no exception. During COVID 19 pandemic, economy was brought to a standstill and Small and Medium Enterprises (SME) segment was the worst affected during this period. Though Government came out with stimulus packages to help the companies, still many companies suffered huge losses. The present paper discusses the Initial Public Offerings which were issued during the last two financial years i.e., from April 1st 2020 to March 31st 2022. The paper covers both SME IPOs and Mainboard IPOs during the study period. The paper aims to study the listing day performance of these IPOs and how they have been accepted by the public during the period of uncertainty.
