Determinants of Volume of IPOs in India: A Case of Count Model with Overdispersion.

This study sets out to identify the factors determining Initial Public Offerings (IPO) in India. The sample for our study covers on a monthly frequency from April 2001 through December 2017. Where, volume of IPO, i.e., number of companies that have gone public is taken as the dependent variable and it is regressed on variables that capture the macroeconomic scenario as well as investor's confidence. Having a count dependent variable, we have employed Poisson regression and negative binomial regression techniques to estimate the parameters. The results from our study confirms the significance of the chosen variables in determining IPOs in India. However, it is the role secondary market variables like stock returns, liquidity and volatility that stands out prominent among other factors like economic growth, interest rate, inflation, credit and FII's. Apart from these conventional variables, we also find investor's perception about businesses measured by business confidence index (BCI), to be an influential factor in determining the volume of IPOs. [ABSTRACT FROM AUTHOR]