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Study on Public Perception towards Initial Public Offerings

Author: Zishan Alam

MBA 2023–2025, Galgotias University

Abstract: Initial Public Offerings (IPOs) play a significant role in financial markets as they permit firms to expand their business and obtain the capital needed to do so while simultaneously providing investment opportunities to investors and the public. The Indian IPO market has closely observed strong growth over the past few years in the general interest from retail investors but outside of the increasing interest, there has not been any credible insight into how the general public thinks about an IPO or their different perspectives when they make investment decisions.

The purpose of this piece of research to measure the public attitude toward IPOs and leverage that to help develop qualitative insights, by gathering and analysing primary data through appropriate questionnaires with a structured questionnaire via Google forms. It measures several dimensions such as investor awareness, perception of risk, types of information sources, prior investment experience, and determinants such as reputation, financial performance, and market trend when investing in IPOs.

Data was gathered from 55 respondents from a diverse population purposely selected to examine the importance of examining differences across a number of demographic categories to see the effects of other variables, such as age, education, income, and investment experience on perception and decision-making. More broadly, using some statistical means to observe trends and relationships between the responses, is a factor that we use to gain insights into investor behaviour and their mind-set.

The finding indicates that while IPOs are recognized by investors, they are at the mercy of the company's reputation, potential of the industry, peer recommendation and market sentiment by the ri54l investment community. It also indicates an immediate need for investor education and more disclosure for companies in order to instil confidence in public offers.

The results provide operational implications for companies, financial planners and policy-makers in facilitating good IPOs and encouraging informed investment decisions. The study also bridges the gap between theoretical models and actual investor behaviour in the Indian capital market in the literature.

Keywords: IPOs, public perception, retail investors, financial literacy, investor sentiment, investment behavior.