Transparency in IPO mechanism : Retail investors ’ participation , IPO pricing and returns

  title={Transparency in IPO mechanism : Retail investors ’ participation , IPO pricing and returns},
  author={Suman Neupanea and Sunil S. Poshakwaleb},
  • Suman Neupanea, Sunil S. Poshakwaleb
  • Published 2012
Using data from the transparent Indian IPOsetting, the paper examines retail investors’ participation, their influence on IPO pricing and the returns they make on IPO investment. The transparency in the mechanism, which allows investors to observe prior investors’ participation,leads to demand which is concentrated at either one or two points of the offer price range. Analysis of investors’ demand duringthe offer period shows that the participation of retail investors is significantly… CONTINUE READING

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