An Analysis of Investors’ Perception towards Investment in Equity IPOs of the Indian Stock Exchange

This study analyzes how the investors perceive investment in equity initial public offering (IPOs) in the Indian Stock Exchange with emphasis on the influence of the behavioral and analytical problems of investment decisions. The analysis and descriptive design was adhered to on the basis of primary data gathered in the form of 230 investors through the structured questionnaires. The data analysis was performed in SPSS 27.0, the descriptive statistics, correlation, regression, Chi-square, ANOVA tests were applied. The findings show that the reputation of the firm (mean score 4.26) and consideration of risk (mean score 4.21) are the most solid factors of perception that can be used to make investment decision. The findings of the correlation revealed that the income and the size of investment were moderate and positively correlated (correlation value 0.48). The regression equation indicated the reputation of the company (coefficient 0.31, significant value 0.001) and expected returns (coefficient 0.25, significant value 0.004) are the significant variables determining the preference of the investment. The outcome of ANOVA showed that the difference between the categories of investors was significant (F value 4.37, significance 0.005). The study concludes that investor support to IPO is extremely dependent on the perceived credibility and financial capability. Such are good observations which provide knowledge to regulators of the markets, financial analysts or investment advisors who may wish to understand the behavior of investors.