Effect of Market Crisis of an VAR

This paper attempts to design for and tests empirical models, which integrate theoretical and firm’s economic capabilities. Which are interacting to level of underpricing after the Indian stock market crunch? The study is founded on IPO that listed at Bombay stock exchange given that April-2008 to Dec the relationship between all independent variables with the dependent variable, i.e. level of underpricing. The results of VAR display that variable of DEBTQ, APATM, ROCE and RONW have a consequential association the level of Market adjusted return ratio (MARRO), AND VAR indicates 46 % R theless, ROCE and RONW have a significant difference in the level of traditional underpricing, and VAR ind cates 49 % R 2 and 32 % adjusted R2. However, fied the assumptions of Akaike information criterion and Schwarz's criterion. We executed unit root testing to verify stationary of time series and autocorrelation function. Durbin Watson’s value subsi cate, there is no heteroskedasticity problem exist for the model