Abstract: This study examines the impact of dividend policy on the performance of initial public offering in India. The period of study is from the year 2011-2014. Monthly returns of the IPOs issued in the considered period and Indian Stock Market Index (Nifty 50) was considered for the long-run performance study. The methodological tools used are long-run performance statistics and garch model. ‘Dummy’ variable was used to measure the effect of dividends on the IPOs. The study reveals that the dividend policy has no significant effect on the stock prices of IPO.