Business, Management and Accounting
3 years ago

VC/PE Involvement Quality Key to Success in Indian IPOs

The Journal of Alternative Investments
Impact of Quality of Involvement of VC/PE in IPO Firms: Evidence from India
Soumya Guha Deb, Pradip Banerjee

Paper Summary

The article examines how the quality of involvement of venture capital/private equity (VC/PE) funds affects the performance of Indian firms after their initial public offerings (IPOs). They found that VC/PE-backed IPOs in India from 2000 to 2016 did not perform well in the long term. However, the duration and size of the stake held by VC/PE firms before the IPO positively influenced post-IPO performance. This suggests that the level of involvement by VC/PE firms can impact how well a company does after going public.

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