An Analytical Study on the Impact of IPO on Indian Economy

The present study is to analyze the impact of IPO on Indian economy and to evaluate the contributions of Indian IPO market to the economic growth of the country. The study considered 10 years data from 2010-11 to 2020-21. The study identifies a weak correlation between the amount mobilized through IPOs and the GDP values of India. The results of t-test concludes that amount raised through IPOs is not contributing to the GDP growth of India. The study recommends the small investors to take their IPO related investment decisions based on the fundamentals and business prospects of the issuer company and exercise caution while investing in IPOs. The Government may offer some concessions or exemptions for the companies approaching IPO market from Central India and Eastern India regions. The study recommends SEBI to review, monitor and revise the regulations of new issue/IPO market very frequently which in turn may help in bringing more transparency and efficiency in the IPO market.