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Abstract
IPO performance of 339 firms listed from 2006 to 2016 is documented. IPO returns are analyzed three years after listing date using style stock selection method. IPO returns are found to vary according to market capitalization of IPO firms. IPOs of large sized firms tend to perform better than small and medium size firms. The results imply that investors should prefer large sized IPO firms for better returns. Findings suggest that Indian IPOs are underpriced 14 percent on average. The determinants of underpricing are issue price, initial returns, money left on the table and exante uncertainty.