2025, Vol. 6, Issue 2, Part F
Funding and opportunity for the Initial Public Offerings (IPOs) in India: An outline
Author(s): Jyotirmoy Koley
Abstract: Since the economic reforms of 1991, the Indian Initial Public Offering (IPO) market has experienced substantial evolution, adopting market-oriented practices that align with global standards. The regulatory framework overseen by the Securities and Exchange Board of India (SEBI) plays a crucial role in enhancing transparency, fairness, and investor protection in the IPO process. Recent trends indicate an increase in IPO activity in India, driven by factors such as increased retail investor participation, favourable economic indicators, and robust pipelines in sectors such as technology and financial services. While IPOs serve as a significant mechanism for corporate financing, they face challenges, such as underpricing, regulatory compliance, and competition from alternative funding sources. Successful IPOs are typically associated with several key factors, including strong financial fundamentals, involvement of reputable intermediaries, possession of innovative assets such as patents, and presence of stable corporate governance structures. Market volatility and investor sentiment significantly influence IPO performance, with variables such as industry trends and market timing playing critical roles in determining outcomes. The performance of firms following an IPO is influenced by factors such as overvaluation, management of earnings during the IPO process, and the stability of the board of directors. Sector-specific opportunities exist in domains such as technology, fintech, healthcare, and sustainable energy, while government initiatives such as Make in India and Startup India provide support to companies seeking to go public. The Indian IPO market presents substantial growth opportunities, particularly for startups and SMEs, but also entails the risks associated with market volatility, regulatory compliance, and post-listing performance challenges.
DOI: 10.22271/27084515.2025.v6.i2f.685
Pages: 539-547 | Views: 387 | Downloads: 74
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How to cite this article:
Jyotirmoy Koley. Funding and opportunity for the Initial Public Offerings (IPOs) in India: An outline. Asian J Manage Commerce 2025;6(2):539-547. DOI: 10.22271/27084515.2025.v6.i2f.685
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