The study focuses on the listing day secondary data collected from BSE, using a purposive sampling method, 29 IPOs were selected for the study. The results indicate that there is significant underpricing during the listing day, where 26 of 29 IPOs are underpriced on the listing day, and returns vary between -1.91 percent to 99.5 percent. The performance after one, three, and six months indicates significant instability in the short-term performance of SME IPOs. MAAR analysis indicates that there is a strong positive abnormal performance in most IPOs in the listing and short-term though the gains decrease with time. Findings indicate the existence of underpricing in SME IPOs and the instability of short-term post-listing returns.
H et al. (Mon,) studied this question.