The Role of Investment Banks in Facilitating Initial Public Offerings (IPOs) in Emerging Markets: Challenges, Strategies, and Performance Analysis

The Role of Investment Banks in Facilitating Initial Public Offerings (IPOs) in Emerging Markets: Challenges, Strategies, and Performance Analysis

Mayank Kumar
MBA Candidate, Galgotias University

Mentor: Dr. Jaideep Sharma
Professor, Galgotias University

SCHOOL OF BUSINESS

Program: MBA Dual Specialization

Galgotias University, Greater Noida (Uttar Pradesh)

Abstract

This research paper explores the indispensable role played by investment banks in facilitating Initial Public Offerings (IPOs) in emerging markets, with a focus on India as a representative case. Utilizing a mixed-methods approach that integrates both quantitative survey data and qualitative thematic analysis, the paper examines the complex interplay between institutional frameworks, investment bank functions, and IPO outcomes. The findings underscore that investment banks play a central role in underwriting, pricing, regulatory compliance, marketing, investor engagement, and post-listing stabilization. Despite this significance, key challenges such as transparency deficits, regulatory delays, valuation disputes, and lack of investor education continue to persist. By evaluating empirical evidence and theoretical constructs, this paper contributes a holistic understanding of how investment banks shape IPO performance and proposes a set of actionable recommendations for stakeholders.