A Study on Selected IPO Performance for Long-Term Returns

Aman Zaveri

Abstract: This research paper investigates the long-term performance of selected Initial Public Offerings (IPOs) listed on Indian stock exchanges from 2020 to 2024. The study aims to determine whether IPOs generate sustainable long-term returns or primarily cater to short-term gains. By employing financial performance metrics such as Market Adjusted Abnormal Returns (MAAR), Buy-and-Hold Abnormal Returns (BHAR), and standard deviation, the analysis compares IPOs to benchmark indices such as NIFTY. Results reveal that while IPOs are often underpriced and offer substantial initial gains, their long-term performance is inconsistent. Case studies of Happiest Minds Technologies, Tata Technologies, and Bajaj Housing Finance further illustrate these dynamics. The research concludes with practical recommendations for investors, policymakers, issuing companies, and financial analysts.

Keywords: IPO, Underpricing, Market Efficiency, Long-Term Investment, MAAR, BHAR, IPO Volatility