Volume : V, Issue : V, May - 2015

UNDERPRICING OF IPO WITH SPECIAL REFERENCE TO IPOs WITH GREEN SHOE OPTION IN INDIA

Agnya Patel

Abstract :

 It is observed that IPO through Book Building method in India turns out to be overpriced or underpriced  after their on the stock exchange. This puts investors to loose their earnings in the IPO. Market stabilization or Green Shoe Option is a mechanism by which stabilizing agent acts on behalf of the issuer company, buys a  newly issued security for the purpose of preventing a decline in the new security’s market price in order to facilitate  its distribution to the public. This can save investors from potential loss. This paper is an attempt to determine the effectiveness of Over Allotment Option in the IPOs and its effect on the performance in short run and long run. The purpose is to evaluate the post–issue share price performance of IPOs with Green Shoe Option issued and listed on NSE,  Mumbai, during the period 2004 to 2014.

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Article: Download PDF   DOI : 10.36106/ijar  

Cite This Article:

Agnya Patel UNDERPRICING OF IPO WITH SPECIAL REFERENCE TO IPOs WITH GREEN SHOE OPTION IN INDIA Indian Journal of Applied Research, Vol.5, Issue : 5 May 2015

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