Factors affecting IPO Performance in the Stock Market: An Analytical Perspective

Abstract

Initial Public Offerings (IPOs) have long been considered a crucial step in a company's
growth trajectory. IPOs offer an opportunity for companies to raise capital and expand their
business operations. However, the success of an IPO is not guaranteed, and several factors
can impact its performance in the stock market. This study seeks to explore the factors that
can affect IPO performance from an analytical perspective. The economic conditions
prevailing at the time of an IPO can have a significant impact on its performance. Factors
such as inflation, interest rates, and GDP growth can influence investor sentiment and, in
turn, impact IPO performance. Similarly, industry-specific factors such as competition,
technological changes, and regulatory changes can also impact IPO performance. Companyspecific factors such as financial performance, management quality, and growth potential can
also play a critical role in determining IPO success. Furthermore, the regulatory environment
surrounding IPOs, including legal and compliance requirements, can affect investor sentiment
and the success of an IPO. Through an analytical approach, this study aims to identify and
analyse the critical factors that can impact IPO performance in the stock market. The research
can provide valuable insights into the underlying mechanisms driving IPO performance and
can be useful for investors, issuers, and policymakers in making informed decisions regarding
IPO investments and regulations.