This paper studies the pricing of IPOs in the Indian context. The paper also examines whether the introduction of Bookbuilding has an impact on IPO pricing. The results suggest that IPO are underpriced. The results also suggest that bookbuilt IPOs show lower amount of underpricing than fixed price issues,. A more detailed study suggests that it has to do more with the size of the issue than the issue process. The paper also suggests a model, which demonstrates that IPO underpricing is unavoidable in a market with information asymmetry. The model predicts that the underpricing is more severe in case of smaller size issues. This is consistent with the empirical findings.

There are many factors that affect SMEs’ ability to borrow from bank. Based on facts and data about SMEs’ financing in Chengdu city, capital of Southwestern China’s Sichuan province, this paper is intended to investigate the factors affecting SMEs to borrow from bank by methods of empirical study. We find that whether SMEs can provide collateral or guarantee is a decisive factor, factors such as firm size, willingness to accept bank’s clauses, close relationship with bank play an important role. But in contrast to intuition, correlation analysis and regression result shows that SMEs’ financial variables such as income, net profit, asset-debt ratio and credit score is not obvious to affect their ability to get bank loan. Consistent with theory prediction and qualitative analysis, firm size is the most important factor to affect SMEs’ ability to borrow from bank. The regression results reflect information asymmetry between SMEs and banks, and that banks had taken a simple way to protect themselves.