PERCEPTION OF INVESTORS TOWARDS INITIAL PUBLIC OFFERING (IPO) IN NEPAL (WITH REFERENCE TO KAILALI DISTRICT)

Abstract

Initial Public Offering (IPO) is the most phenomenal event for an organization. Basically it is related to raise the funds. IPOs are normally issued by small and new companies who are in need of capital to expand their business, but sometimes large companies also issue them for public trading. Whenever a firm needs money, the first thing it does is to go to the bank. However, sometimes banks may not be in a position to provide huge sum of money for a long time. In such a scenario, the best way to raise money is through offer of shares. The main aim of this study is to examine the perception of investors towards Initial Public Offering (IPO), to analyze the relationship among different factors (quality management, company goodwill, company performance, company sector and market information) and investment decision to examine the factors that influence investment decision in IPO. This research used primary data. The data was collected from 350 respondents of Kailali district belonging to Dipshikha Dhitopatra Karobar Company Pvt. Ltd. The both descriptive and inferential analysis have been conducted by using statistical tools such as percentage, correlation & regression analysis to analyze the relationship between variables and the impact of different factors on investment decision. The study revealed that quality management, company goodwill, company performance, company sector and market information are the highly considerable factors before making investment decision in IPO.