Scholarlink

<p>This study examines the impact of the COVID-19 outbreak on the Initial Public Offerings (IPOs) in the Indian emerging market, using a sample of 104 IPOs listed on the Bombay Stock Exchange (BSE) between January 2018 and September 2022. Grounded in information asymmetry and crisis-induced volatility frameworks, the study investigates how pandemic-driven uncertainty influenced IPO underpricing, aftermarket volatility, and post-listing performance. The comparative analysis shows an additional underpricing of 30.7% for COVID-19 IPOs compared to the pre-COVID IPOs. Our findings attribute higher underpricing to IPOs characterized by weaker certification, poor pre-IPO information environments, and greater financial constraints. We also observe increased aftermarket volatility and return reversals over 12 months. Further, using the GARCH-X specification, we demonstrate that market volatility, conditional on COVID-19 intensity and policy stringency, increased risk premiums and contributed to elevated initial returns. The results are consistent with various robustness checks. The study offers valuable insights for investors, issuers, and policymakers navigating IPO markets amid heightened uncertainty.</p>

错误：搜索内容不能为空，请输入英文关键词
错误：关键词超出字数限制，请精简
高级检索

COVID-19 and IPO Outcomes: Evidence from Emerging Market

  • 期刊论文

  • 发表日期：

    2026年1月16日

查看全文
  • Sahil Narang,
  • Rudra P. Pradhan

摘要

This study examines the impact of the COVID-19 outbreak on the Initial Public Offerings (IPOs) in the Indian emerging market, using a sample of 104 IPOs listed on the Bombay Stock Exchange (BSE) between January 2018 and September 2022. Grounded in information asymmetry and crisis-induced volatility frameworks, the study investigates how pandemic-driven uncertainty influenced IPO underpricing, aftermarket volatility, and post-listing performance. The comparative analysis shows an additional underpricing of 30.7% for COVID-19 IPOs compared to the pre-COVID IPOs. Our findings attribute higher underpricing to IPOs characterized by weaker certification, poor pre-IPO information environments, and greater financial constraints. We also observe increased aftermarket volatility and return reversals over 12 months. Further, using the GARCH-X specification, we demonstrate that market volatility, conditional on COVID-19 intensity and policy stringency, increased risk premiums and contributed to elevated initial returns. The results are consistent with various robustness checks. The study offers valuable insights for investors, issuers, and policymakers navigating IPO markets amid heightened uncertainty.