An Empirical Study on the Influence of FII on Indian IPO’s

Abstract

The Indian stock market sees huge volatility and enormous growth since liberalization. In the year 2017 from January to December, the Indian capital market has witnessed a massive 171 IPOs[1]. Out of 171 IPOs, 38 are in mainstream IPO, 133 in NSE SME. Foreign Institutional investors have an upper hand over Domestic Institutional Investors in Indian IPOs. Here the researcher tries to understand the influence of FII on Indian IPO.  The inflows of FII into total subscription and total shares offered have been collected and found FII inflows over total subscription and total shares offered. The data about IPOs from January 2014 to December 2019 has been analyzed. The regression model is used to find the relationship between listing gains FII inflows over total subscription, FII inflows over total shares offered, nifty return and nifty volatility. The study finds that listing gains has a significant relationship with FII inflows over total shares offered.