Kiran Srinivas
Introduction about Upcoming IPOs
Initial Public Offerings (IPOs) represent an important investment opportunity in capital markets, allowing companies to raise funds while offering investors a chance to participate in future growth. In recent years, several high-profile Indian companies such as Haldiram, Zepto, Reliance Jio, and PhonePe have generated strong interest among investors due to their brand recognition, market reach, and growth potential.
Investor perception plays a crucial role in determining the success of an IPO. Factors such as company reputation, expected returns, risk perception, and industry outlook significantly influence investment decisions. Understanding whether investors perceive these upcoming IPOs differently can provide valuable insights into market sentiment and behavioural trends among potential investors.
Objective
- To study investor perception towards selected upcoming IPOs
- To compare investor sentiment across Haldiram, Zepto, Reliance Jio, and PhonePe
- To examine whether there is a statistically significant difference in investor perception using ANOVA
Literature Review
Article 1:
According to Ritter (1991), investor sentiment plays a major role in IPO pricing and post-listing performance. His study suggests that optimistic investor perception often leads to oversubscription, while weak sentiment can negatively impact listing gains. This highlights the importance of understanding pre-IPO investor behaviour.
Article 2:
Ljungqvist et al. (2006) emphasize that brand value, industry positioning, and perceived growth prospects significantly influence investor confidence during IPOs. Well-known companies tend to attract similar levels of investor interest, which may reduce observable differences in investor perception across such firms.
Data Collection
- Primary data was collected through a structured questionnaire
- Respondents consisted of 40 finance students studying at ITM
- Each respondent rated their willingness and confidence to invest in selected upcoming IPOs
- Ratings were given on a 0–10 scale
- The IPOs considered were:
- Haldiram
- Zepto
- Reliance Jio
- PhonePe
Total number of observations: 160 (40 respondents × 4 IPOs)
Data Analysis
A Single Factor ANOVA was applied to test whether investor perception differs significantly among the selected IPOs.
Summary Statistics
- Haldiram
- Mean = 5.31
- Zepto
- Mean = 5.05
- Reliance Jio
- Mean = 4.64
- PhonePe
- Mean = 5.15
Although there are slight differences in mean values, statistical testing is required to determine whether these differences are significant.
ANOVA Results
- F-value = 0.3243
- P-value = 0.8078
- F-critical value = 2.6641
- Level of significance (α) = 0.05
Interpretation
Since the p-value (0.8078) is greater than 0.05 and the F-value is less than the F-critical value, the null hypothesis cannot be rejected.
Conclusion
The Single Factor ANOVA results indicate that there is no statistically significant difference in investor perception towards the selected upcoming IPOs—Haldiram, Zepto, Reliance Jio, and PhonePe.
This suggests that finance students perceive these IPOs in a broadly similar manner, with no single IPO standing out significantly in terms of investor confidence. The similarity in perception may be attributed to strong brand recognition, positive market expectations, and comparable growth prospects across all four companies.
Therefore, the study concludes that investor sentiment towards these upcoming IPOs is relatively uniform rather than differentiated.