Paper Title :Factors Influencing Investors Investment in Initial Public Offering

Author :Namrata N. Khatri

Article Citation :Namrata N. Khatri , (2017 ) " Factors Influencing Investors Investment in Initial Public Offering " , International Journal of Management and Applied Science (IJMAS) , pp. 41-49, Volume-3,Issue-7

Abstract : Introduction – An initial public offering is the sales of company’s stock to the public for the first time. The primary impetus for an IPO is generally either to rise capital or to offer an exit strategy. In fact the firm in most incipient stage of development generally relies entirely on personal loans, saving, family and friends for their initial financing. The reason for IPO issues are following Research Methodology – The present study follows a descriptive research design, with structured questionnaire as information collection tool. The respondents for the study were the investors of Surat City who are investing in IPOs. The respondents were selected using a non-probability convenient sampling technique. The analysis of the data is done by using descriptive as well as inferential statistics. Major Findings – The analysis of the data reveals that majority of the investor’s takes broker’s advice while investing in IPO and the major problem faced by the investors is delay in refund and lack of clarity in allotment. The factor analysis states that there are three major factors that influence investors while investing in IPO are Company Philosophy, Future Prediction and Projection, News relating to company IPO and Financial Performance. Managerial Implications – The outcome of study could be considered by brokering firms, issuing companies and investors as inputs for more focused services. Keywords - Initial Public Offerings, Investors, Problems, Factors

Type : Research paper

Published : Volume-3,Issue-7

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