INTERNATIONAL JOURNAL OF ADVANCE RESEARCH
IN MULTIDISCIPLINARY

The choice of pricing mechanisms holds significant importance when it comes to launch of IPOs. It plays a pivotal role in determining the success or failure in IPOs life. The selection of pricing mechanism should be based on individual preferences and market conditions. A diversified approach, thorough research, and risk management, can help investors to optimize their IPO investments in the Indian capital market. The study concludes that under book building mechanism, pricing accuracy of IPOs during periods of remarkable returns in 2020 though it is Covid19 as well as phases of underperformance in 2016, displayed a mixed track record, characterized by instances of both underpricing and overpricing. Market activity for Book Building IPOs shows significant fluctuations, reflecting shifts in market dynamics and investor sentiment. Henceforth, this mechanism offers the potential for higher returns; it also comes up with greater volatility and associated risks. Conversely, the Fixed Pricing Mechanism of IPOs demonstrates relatively stable performance, with returns closely aligning with the issue price and instances of notable underpricing or overpricing. Market activity in Fixed Price IPOs remains relatively steady, experiencing fewer fluctuations compared to the Book Building approach. Thus, the mechanism provides for investors with albeit moderate returns while carrying lower associated risks.