Hot Issue Markets: A Conceptual Framework and Research Developments

Abstract

The study aimed to analyse the studies pertaining to market conditions around public issues with a deep concentration on the hot and cold issue market. It provides an insight into the Indian IPO market in the last two decades from 2001 to 2020. The review of literature consists of four major sections concentrating on contemporary market conditions, hot and cold issue markets, and postissue performance. It attempts to synchronize the literature over the hot and cold market with reference to post-issue performance and group affiliation of the issuers. The study revealed the strong influence of market conditions (hot and cold markets) in various parts of the world. It was also observed that along with other factors, hot and cold market issues also lead to the variation in their post-issue performance. Group affiliation as an essential company characteristic was also found to influence post-issue performance substantially.