When-issued trading in the Indian IPO market

Citeable URL: https://ir.library.oregonstate.edu/concern/articles/mc87ps214

Descriptions

Attribute Name	Values
Creator	Brooks, Raymond M. Mathew, Prem G. Yang, J. Jimmy
Abstract	We examine the contribution of when-issued trading to price discovery and underpricing in the Indian IPO market. Besides the when-issued trading, there exists IPO grading, analyst recommendation, group affiliation, and the subscription rates in the bookbuilding process. We examine the impact of these activities and find three sequential factors that explain the IPO underpricing. Higher grades for an IPO lead to higher when-issued premiums, which in turn leads to higher subscription rates. Then, higher subscription rates lead to higher IPO underpricing. Overall, we find that the when-issued trading plays an important role in price discovery in the Indian IPO market. Keywords: Initial public offering, When-issued trading, Information asymmetry, Indian equity markets, IPO underpricing
Resource Type	Article
DOI	https://doi.org/10.1016/j.finmar.2013.10.001
Date Available	2014-09-12T20:57:05+00:00
Date Issued	2014-06
Citation	Brooks, R. M., Mathew, P. G., & Yang, J. J. (2014). When-issued trading in the Indian IPO market. Journal of Financial Markets, 19, 170-196. doi:10.1016/j.finmar.2013.10.001
Journal Title	Journal of Financial Markets
Journal Volume	19
Rights Statement	Copyright Not Evaluated
Publisher	Elsevier
Peer Reviewed	Yes
Language	English [eng]
Replaces	http://hdl.handle.net/1957/52052