Financial Performance or Market Sentiment: What Really Drives Investors’ Interest towards Indian IPOs?

Investors usually perform both qualitative and quantitative analysis before investing in IPOs, but the question is to identify which analysis has got considerable weightage during IPO investment decision. The present study is an effort to analyze the factors driving the subscription to and performance of Indian IPOs during the financial year 2023-24. Grey Market Premium was considered as a proxy for market sentiment and the firm’s financial performance was gauged by Return on Capital Employed (ROCE). The study is limited to mainline Indian IPOs during the financial year 2023-24. The present research helps in bringing out the information preferences of different category of participants in Indian IPO market.