Wednesday, October 19, 2011

First Day of IPO Listing: Wild & Spurious Volatility


IPO Listing day fluctuations are abnormal. As CNBC anchors term it there are lot of fun and games in these counters as there are no price bands on listing day.


  1. Financial Express on Listing Day Volatility
  2. Report on IPO listing day volatility in Business Standard
  3. Prithvi Haldea of Prime database on Listing Day price bands.
  4. SEBI's earlier proposal of 25% price band on first day of IPO Listing.
  5. DNA on the Violence of Volatility of New Listings. One has to participate to experience the abrupt price fluctuations.
  6. Will pre-opening trade help in case of IPOs Listing day fluctuations ?
  7. IPO manipulation behind these violent moves ? Sucheta Dalal here
  8. Research article on IPO pricing
  9. Scholarly article on IPO pricing. Infact the vast amount of availability of academic literature makes the study of financial markets endlessly fascinating and intellectually satisfying. A motivated student of financial markets can grasp all aspects of an issue from various sources and form an informed opinion.
  10. Another article by SSS Kumar who is an alumni of SVUSBM and a student of Dr M S REDDY who is my professor at Tirupati.
  11. Information assymetry in IPO pricing may necessitate not applying price bands on Day 1.
  12. Today( Oct 23,2011)'s new listing VASWANI has allegations of dummy IPO subscription.  
  13. Related Article on  Vaswani
  14. Always fascinating prose by Dr Ajay Shah on IPOs. He reminds me of Larry Harris of Trading & Exchanges. His articles on Indian Finance together with Dr Susan Thomas of IGIDR will be a GITA on Indian Finance & Markets. Infact Dr Susan Thomas web page contains lot of notes on Econometrics and Finance which is a feast for students of Finance and Financial econometrics.
  15. Another respected thinker on Indian Finance even quoted in India's Financial Markets Book.
  16. MoneyLife on IPO manipulation

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