Valuation Analysis of IPO’s- Evidences from the Chartbuster Year of the Decade

Finance

With today's market so fast-paced and dynamic, short-term investors find it difficult to choose which investment path to choose. Investing in securities is an extremely dangerous endeavor for investors due to the volatility, uncertainty, complexity, and ambiguity (VUCA) associated with the future movement of share prices. The study has been carried out to evaluate the post-initial Public Officer (IPO) performance of many companies who went public in 2021 using the event study technique. Additionally, the study looks into whether these initial public offerings (IPOs) were short-term undervalued. The analysis shows that more than 60% of the selected initial public offerings (IPOs) had short-term undervaluation. Consequently, investing in initial public offerings (IPOs) for a short period of time can be highly beneficial and allow investors to realize large gains quickly.

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