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CHAPTER- 1
INTRODUCTION
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1.1 IMPORTANCE
The prospectus includes very important information like the historical performance of
the company in the previous years, the current owners of the company, the amount of
shares that they are offering to the public, what they intend to do with the money after
the I.P.O amongst other things. Any prudent investor will take his/her time to go
through this information in order to make an informed decision on the amount of shares
to take up or even if to participate in the offer. As an investor this are the things to look
out for in the prospectus
The company performance in the pre-ceding years. This is important for you to develop
performance trends and therefore be able to predict its future performance- all factors
held constant. This is mainly done by looking at the statements of accounts. The balance
sheet is important so as to look at the net book value of the share to determine if the
company is overvalued or undervalued (offered at a discount) at the time of the offering.
The net book value is arrived at by taking the total assets divided by the total number of
shares. It will be interesting to see how safaricom arrived at its value for the share offer.
What did it include as part of its assets to reach that price? The cash flow statement
shows the company's ability to offset its debts in the short run thus avoid bankruptcy.
We have seen in the past stable companies with huge asset outlays being placed into
receivership because it did not have any liquid cash to pay off its debts. Its therefore to
observe the investment mix of the company especially the current investments against
the long term investments. The profit trading and loss statement shows how the
company is using its assets to generate a profit. This statement is important for an
investor to determine the rate of return on his investment and probable earnings against
his investment in the form of dividends and bonus shares. Safaricom in this respect is a
very strong company since a little investment is yielding massive gains
The current list of owners. This will help you determine the performance of the
company in the future since some directors have a reputation of turning around
companies or leading them to huge growth. Observe the ratio of the directors who have
the technical expertise in the company's area of operation against those who don't have.
Also look at the management team and their qualifications. Also establish which owners
are offloading their share ownership and why are they doing so, is it to expand the
business or to cash in? Normally investors who want to cash in on their ownership raise
a number of suspicions to investors because in most cases shares are offered to raise
capital for the company's expansion. A cash in means that the investor is bailing out
which is not a good sign. In respect to safaricom shares, it would be good to see what
the vendors intend to do with the cash they raise and if it shall be of benefit to the
company. Also important in the safaricom issue is to know who are the owners of the
mysterious 5% of the company and are they selling off their shares..The general industry
trends. This includes the company's perception of the market. Its market share, the
existing competition and the company's evaluation of the risks that arise from the
industry and other sources and how it intends to mitigate these risks. This is important
for you as the investor to firstly understand the business the company is involved in and
its general business environment. It is on this basis that you will be able to determine the
future the company will have in respect to its strengths like market share, its weaknesses
like internal wrangling or huge labor force, its opportunities in terms of unexploited
markets and its threats like competition, new government regulation and political
influences among
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others. As it stands out, this is safaricom's greatest strength and what investors are being
offered. It is not into its ownership but its future prospects. It is therefore necessary for
investors to find out the current worth of the future normally known as the Net Present
Value then evaluate the possibility of the company achieving that future value which is a
very complex process that involves the evaluation of the risks and the estimation of the
probability of the positive occurrence
The share allocation criteria and the time table of principle events. This is important
especially to observe the share allocation to institutional investors who create the bulk of
demand for the company's share. If they are likely to get full allocation then the prices
are not likely to rise after the offer but drop as speculators will offer their shares to no
buyer. It is good to get their opinion of the institutional investors and what closely their
purchase patterns if possible. The dates of the offer, period of the offer before the
closure date, the refund payment date and the listing date are also very important since
this dates will affect the amount of money to be raised and help you evaluate the
opportunity cost in investing in the companies I.P.O. the opportunity cost in this case
refers to the cost forgone if you invested your money in another venture against the
expected returns. In the case of the safaricom share, it might just be possible to discover
that it makes more prudent sense to purchase other shares whose value have greatly
reduced than to buy safaricom shares also the listing date may coincide with other major
announcements like other I.P.Os of company's results thus dampening the demand for
the companies shares.
The above items are the basic things that you look for in a prospectus of a company
intending to list. It is also very important to try and understand the business that the
company is involved in and get information about the company from other sources.
Despite the fact that companies go through very rigorous evaluations before listing, a
few gaps may exist that might require you to go through in detail of the companies
reports to identify any ghosts in the cabinets'. Remember the devil is in the details so if
you intend to commit huge sums of money in a companies I.P.O and your risk factor is
very high then it is worth the effort.
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1.2 OBJECTIVES
2. Find out the factors which influence the IPO Listing Process.
7. Analyse the benefits to go IPO rather than purchase the share through secondary
market.
1.3 HYPOTHESIS
2. The investors consider all services of broking firms going for IPO.
3. The investors are interested to know where the issuing company employ the fund.
1.4 SCOPE
4. Find out the factors which influence the IPO Listing Process.
5. What the companies are looking from Open New IPO’s in India?
1.5 METHODOLGY
The project includes both primary & secondary sources of data. The data collected through these
The secondary source of data includes different websites of banks which contains details
1.7 LIMITATION
1. The study was to be completed in a short time; the time factor put a considerable limit
requiring the qualitative information may have affected the final findings and
outcomes.
study on very small scale, the findings of the survey could not be generalized.
4. It was tried very harder to include the best of information from published and
unpublished sources available on internet, books and magazines but some of the data
1. Introduction
2. Review of literature
5. Bibliography
6. Annexure
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CHAPTER-2
REVIEW OF LITERATURE
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Market for new issues of securities, as distinguished from the Secondary Market, where
previously issued securities are bought and sold. A market is primary if the proceeds of sales
go to the issuer of the securities sold. In other words, it refers to the initial launch of a
company's shares when they first become available for a trading on the Stock Market
Closed End Funds are popularly known as investment trusts. They are companies whose
shares are traded like any other listed company. Because of this the number of units that the
Fund Portfolio is divided into is fixed, unless the fund has a new share issue. This means that
investors wishing to take part in the fund have to buy shares in it on the secondary market.
On the other hand, a unit trust continues to issue units to any new investors wishing to take
part.
Winner's Curse refers to the tendency for the winning bid to exceed the intrinsic value of the
item being auctioned. This is common in sealed bid auctions. This argument was highlighted
by Rock in 1986 when he explained the empirical evidence of under pricing in the IPOs as
compensation to uninformed investors for being allocated a disproportionately large fraction
of overpriced issues, relative to informed investors.
The argument assumes that investors are of two types- informed and uniformed- and accounts
for under pricing as compensation to uninformed investors for being allocated a
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The marginal investor will be the least-informed investor among the investors and this
investor (by virtue of being the marginal investor) makes a zero excess return. Other
investors in the IPO have more precise information than that of the marginal investor and
thus these investors make positive excess returns, which in turn are observed empirically as
under pricing.
The following constitute the basic steps for a company venturing an IPO in the Primary
Market:
• Approval of Board
• Appointment of Lead Managers
• Appointment of other Intermediaries
• Filing of Prospectus with SEBI
• Filing of Prospectus with registrar of companies
• Printing and Dispatch of Prospectus
• Filing of Initial listing Application
• Promotion of the Issue
• Statutory Announcement
• Processing of Applications
• Establishing the Liability of Underwriters
• Allotment of Shares
• Listing of the issue
A limited company must have the aggregate of issues, made in that financial year, and the
revenue accounted by the new name has to be at least 50% of its total revenue.
What are the issues to be kept in mind for the determination of the capital and the issue
structure?
• The details and findings with regards to the face value, premium, & final offer price
• Minimum and Maximum amount of subscription per applicant
• Promoter's contribution must be defined
• Firm Allotments
• Net Public Offer
What are the Qualitative and Quantitative Factors for the justification of the share premium?
Qualitative Factors:
• Company's past record, and achievements
• Experience of the promoters in the relevant fields and avenues
• Credit rating by a recognised Agency
• The company''s selling propositions and business basics
• The industry scenario, and the growth prospects
• Any International recognition or Awards received, if any
• An honest perusal of prospective business opportunities
Quantitative Factors:
• The current market price & high/low for last 3 years.
• Comparison of the P/E ratio of the company and the industry
• The Book Value of the share & the Book Value multiple in relation to offer price.
• The growth rate in PAT (Profit After Tax) & EPS (Earnings Per Share) for the past year.
• SENSEX volatility of the economy at that point
P/E ratio is the commonly used term for the ratio of the market price of a share to earnings
per share (EPS). It could be used as an indicator of how much an investor may be willing to
pay for a share for every rupee of its earnings
In the Indian context, book-building is widely used by good quality corporate issuers in order
to achieve optimal pricing by generating a high level of investor interest.
SEBI guidelines define Book Building as "a process, undertaken by which a demand for the
securities, proposed to be issued by a body corporate, is elicited and built-up and the price for
such securities is assessed for the determination of the quantum of such securities to be issued
by means of a notice, circular, advertisement, document or information memoranda or offer
document".
Institutional Buyers)
• Not less than 25% of NPO shall be allocated to non-institutional bidders
• Not less than 25% of NPO shall be available for allocation to retail investors
In case of a 75% book built issue:
As per Rule 19 (2) b of Securities Contracts (Regulation) Rules, 1957:
• The NPO shall consist of min of 20 Lakh shares
• Size of public offer is at least Rs.100cr
• Issue was offered to maximum extend permissible (50%) to QIBs
• The issue is marketed on a wholesale basis through a team, consisting of Book Running
Lead Manager (BRLM) and Co-BRLM.
• Company issues offer document known as ''Red Herring Prospectus''
• Bidding period can be anywhere from a minimum of 5 days to a maximum of 10 days
• Each bidder can furnish three options in his bid.
• Once the bidding period closes, BRLM's and the company decide the "Issue Price"
It is an option that allows the underwriting of an IPO to sell additional shares to the public if
the demand is high. It refers to the option of allocating shares in excess of the shares included
in the public issue and operating a post-listing price stabilising mechanism, which is granted
to a company
through a stabilising agent
• In case of a public issue, the draft prospectus has to be filed through a Lead Manager.
• SEBI assesses it and may suggest changes, if any, within 21 days.
• The draft prospectus can then be issued to the public any time within 365 days from the date
of the letter from SEBI or if no letter is received from SEBI, within 365 days from the date of
expiry of 21 days of submission of prospectus with SEBI.
• If the issue size is up to Rs. 20 crores, then the Lead Managers are required to file
prospectus with the regional office of SEBI; if the issue size is more than Rs. 20 crores, Lead
Managers are required to file prospectus at SEBI, Mumbai office.
• The Prospectus is also required to be filed with the concerned stock exchanges, along with
the application for listing its securities.
• After the filing of the draft offer document with SEBI and the stock exchanges and making
it public, the lead manager has to attend to the modifications or amendments, required at
short notice.
• There must be a smooth co-ordination with registrars, bankers, advertisement agencies,
brokers to the issue, underwriters to the issue, printers and couriers.
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• The main function during the issuance is to ascertain daily figures from the bankers or the
stock exchange and to take a decision on the closure of the issue, based on the procurement of
minimum subscription. The apex members of the company must shoulder this responsibility.
• Post issuance, the company has to actively associate with the allotment, refund & dispatch
and shall regularly monitor the grievances, arising therefrom
• Risk factors
• Issuers absolute responsibility
• Table of the contents
• Liability of Directors
• Company Hierarchy and allocations of responsibility
• General information
• Statutory information
• Financial information
• Financial statements prepared on basis of more than one system of accounting standards
• Tax Implications both for the company and the investors
• Declaration and verification by signatories to the prospectus together with signatures by
themselves or through their constituted attorney.
Selling Stock
IPO is an acronym for Initial Public Offering. This is the first sale of stock by a company to
the public. A company can raise money by issuing either debt (bonds) or equity. If the
company has never issued equity to the public, it's known as an IPO.
A privately held company has fewer shareholders, if any, and its owners don't have to
disclose much information about the company. Anybody can go out and incorporate a
company: just put in some money, file the right legal documents, and follow the reporting
rules of your jurisdiction. Most small businesses are privately held. But large companies can
be private too.
It usually isn't possible to buy shares in a private company. You can approach the owners
about investing, but they're not obligated to sell you anything. Public companies, on the other
hand, have sold at least a portion of themselves to the public and trade on a stock exchange.
This is why doing an IPO is also referred to as "going public."
Public companies have thousands of shareholders and are subject to strict rules and
regulations. They must have a board of directors and they must report financial information
every quarter. In the United States, public companies report to the SEC. In other countries,
public companies are overseen by governing bodies similar to the SEC. From an investor's
standpoint, the most exciting thing about a public company is that the stock is traded in the
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open market, like any other commodity. If you have the cash, you can invest. The CEO could
hate your guts, but there's nothing he or she could do to stop you from buying stock.
Why Go Public?
Going public raises cash, and usually a lot of it. Being publicly traded also opens many
financial doors:
Because of the increased scrutiny, public companies can usually get better rates when
they issue debt.
As long as there is market demand, a public company can always issue more stock.
Thus, mergers and acquisitions are easier to do because stock can be issued as part of
the deal.
Trading in the open markets means liquidity. This makes it possible to implement
things like employee stock ownership plans, which help to attract top talent.
Being on a major stock exchange carries a considerable amount of prestige. In the past, only
private companies with strong fundamentals could qualify for an IPO and it wasn't easy to get
listed.
The Internet boom changed all this. Firms no longer needed strong financials and a solid
history to go public. Instead, IPOs were done by smaller startups seeking to expand their
business. There's nothing wrong with wanting to expand, but most of these firms had never
made a profit and didn't plan on being profitable any time soon. Founded on venture capital
funding, they spent like Texans trying to generate enough excitement to make it to the market
before burning through all their cash. In cases like this, companies might be suspected of
doing an IPO just to make the founders rich. In VC talk, this is known as an exit strategy,
implying that there's no desire to stick around and create value for shareholders. The IPO
then becomes the end of the road rather than the beginning.
How can this happen? Remember: an IPO is just selling stock. It's all about the sales job. If
you can convince people to buy stock in your company, you can raise a lot of money. In our
opinion, IPOs like this are extremely risky and should be avoided.
Getting a piece of a hot IPO is very difficult, if not impossible. To understand why, we need
to know how an IPO is done, a process known as underwriting.
When a company wants to go public, the first thing it does is hire an investment bank. A
company could theoretically sell its shares on its own, but realistically, an investment bank is
required - it's just the way Wall Street works. Underwriting is the process of raising money
by either debt or equity (in this case we are referring to equity). You can think of
underwriters as middlemen between companies and the investing public. The biggest
underwriters are Goldman Sachs, Merrill Lynch, Credit Suisse First Boston, Lehman
Brothers and Morgan Stanley.
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The company and the investment bank will first meet to negotiate the deal. Items usually
discussed include the amount of money a company will raise, the type of securities to be
issued, and all the details in the underwriting agreement. The deal can be structured in a
variety of ways. For example, in a "firm commitment," the underwriter guarantees that a
certain amount will be raised by buying the entire offer and then reselling to the public. In a
"best efforts" agreement, however, the underwriter sells securities for the company but
doesn't guarantee the amount raised. Also, investment banks are hesitant to shoulder all the
risk of an offering. Instead, they form a syndicate of underwriters. One underwriter leads the
syndicate and the others sell a part of the issue.
Once all sides agree to a deal, the investment bank puts together a registration statement to be
filed with the SEC. This document contains information about the offering as well as
company info such as financial statements, management background, any legal problems,
where the money is to be used, and insider holdings. The SEC then requires a "cooling off
period," in which they investigate and make sure all material information has been disclosed.
Once the SEC approves the offering, a date (the effective date) is set when the stock will be
offered to the public.
During the cooling off period the underwriter puts together what is known as the red herring.
This is an initial prospectus containing all the information about the company except for the
offer price and the effective date, which aren't known at that time. With the red herring in
hand, the underwriter and company attempt to hype and build up interest for the issue. They
go on a road show - also known as the "dog and pony show" - where the big institutional
investors are courted.
As the effective date approaches, the underwriter and company sit down and decide on the
price. This isn't an easy decision: it depends on the company, the success of the road show,
and most importantly, current market conditions. Of course, it's in both parties' interest to get
as much as possible.
Finally, the securities are sold on the stock market and the money is collected from investors.
As you can see, the road to an IPO is a long and complicated one. You may have noticed that
individual investors aren't involved until the very end. This is because small investors aren't
the target market. They don't have the cash and therefore hold little interest for the
underwriters.
If underwriters think an IPO will be successful, they'll usually pad the pockets of their
favorite institutional client with shares at the IPO price. The only way for you to get shares
(known as an IPO allocation) is to have an account with one of the investment banks that is
part of the underwriting syndicate. But don't expect to open an account with $1000 and be
showered with an allocation. You need to be a frequently trading client with a large account
to get in on a hot IPO.
Bottom line, your chances of getting early shares in an IPO are slim to none unless you're on
the inside. If you do get shares, it's probably because nobody else wants them. Granted, there
are exceptions to every rule and it would be incorrect for us to say that it's impossible. Just
keep in mind that the probability isn't high if you are a small investor.
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Let's say you do get in on an IPO. Here are a few things to look out for.
No History
It's hard enough to analyze the stock of an established company. An IPO company is even
trickier to analyze since there won't be a lot of historical information. Your main source of
data is the red herring, so make sure you examine this document carefully. Look for the usual
information, but also pay special attention to the management team and how they plan to use
the funds generated from the IPO.
And what about the underwriters? Successful IPOs are typically supported by bigger
brokerages that have the ability to promote a new issue well. Be more wary of smaller
investment banks because they may be willing to underwrite any company.
If you look at the charts following many IPOs, you'll notice that after a few months the stock
takes a steep downturn. This is often because of the lockup period.
When a company goes public, the underwriters make company officials and employees sign a
lockup agreement. Lockup agreements are legally binding contracts between the underwriters
and insiders of the company, prohibiting them from selling any shares of stock for a specified
period of time. The period can be anything from 3 to 24 months. 90 days is the minimum
period stated under Rule 144 (SEC law) but the lockup specified by the underwriters can last
much longer. The problem is, when lockups expire all the insiders are permitted to sell their
stock. The result is a rush of people trying to sell their stock to realize their profit. This excess
supply can put severe downward pressure on the stock price.
Flipping
Flipping is reselling a hot IPO stock in the first few days to earn a quick profit. This isn't easy
to do, and you'll be strongly discouraged by your brokerage. The reason behind this is that
companies want long-term investors who hold their stock, not traders. There are no laws that
prevent flipping, but your broker may blacklist you from future offerings or just smile less
when you shake hands.
Of course, institutional investors flip stocks all the time and make big money. The double
standard exists and there is nothing we can do about it because they have the buying power.
Because of flipping, it's a good rule not to buy shares of an IPO if you don't get in on the
initial offering. Many IPOs that have big gains on the first day will come back to earth as the
institutions take their profits.
It's important to understand that underwriters are salesmen. The whole underwriting process
is intentionally hyped up to get as much attention as possible. Since IPOs only happen once
for each company, they are often presented as "once in a lifetime" opportunities. Of course,
some IPOs soar high and keep soaring. But many end up selling below their offering prices
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within the year. Don't buy a stock only because it's an IPO - do it because it's a good
investment.
Tracking stocks appear when a large company spins off one of its divisions into a separate
entity. The rationale behind the creation of tracking stocks is that individual divisions of a
company will be worth more separately than as part of the company as a whole.
From the company's perspective, there are many advantages to issuing a tracking stock. The
company gets to retain control over the subsidiary but all revenues and expenses of the
division are separated from the parent company's financial statements and attributed to the
tracking stock. This is often done to separate a high growth division with large losses from
the financial statements of the parent company. Most importantly, if the tracking stock
rockets up, the parent company can make acquisitions with stock of the subsidiary instead of
cash.
While a tracking stock may be spun off in an IPO, it's not the same as the IPO of a private
company going public. This is because tracking stock usually has no voting rights, and often
there is no separate board of directors looking after the rights of the tracking stock. It's like
you're a second class shareholder! This doesn't mean that a tracking stock can't be a good
investment. Just keep in mind that a tracking stock isn't a normal IPO.
Don't consider tracking stocks to be the same as a normal IPO, as you are essentially a
second-class shareholder
Efficiency of the The managing director’s background and experience in the field.
Management The composition of the Board of Directors is to be studied to find
out whether it is broad based and professionals are included.
Risk Factors A careful study of the general and specific risk factors should be
carried out.
Auditor’s Report A through reading of the auditor’s report is needed especially with
reference to significant notes to accounts, qualifying remarks and
changes in the accounting policy. In the case of letter of offer the
investors have to look for the recently audited working result at
the end of letter of offer.
Statutory Investor should find out whether all the required statutory
Clearance clearance has been obtained, if not, what is the current status. The
clearances used to have a bearing on the completion of the
project.
The first offering of a company’s shares to the public. The shares offered may be existing
ones held privately, or the company may issue new shares to the public.
The promoters also should have a clear idea about the agencies to coordinate their activities
Underwriters,
Bankers,
Advertising agencies,
Lead managers are appointed by the company to manage the initial public offering
Drafting of prospectus
banks, foreign banks, private sector banks and private agencies are available to act as lead
mangers. Such as SBI Capital Markets Ltd., Bank of Baroda, Canara Bank, DSP Financial
After the appointment of the lead managers to the issue, in consultation with them, the
Registrar to the issue is appointed. Quotations containing the details of the various
functions they would be performing and charges for them are called for selection. Among
them the most suitable one is selected. It is always ensured that the registrar to the issue has
The Registrars normally receive the share application from various collection centers. They
recommend the basis of allotment in consultation with the Regional Stock Exchange for
approval. Usually registrars to the issue retain the issuer records at least for a period of six
months from the last date of dispatch of letters of allotment to enable the investors to
The Underwriters
the effect that the former would subscribe to the securities offered in the event of non-
subscription by the person to whom they were offered. The person who assures is called an
underwriter. The underwriters do not buy and sell securities. They stand as back-up
against the possibility of inadequate subscription. Underwriters are divided into two
categories:
The company after the closure of subscription list communicates in writing to the
up the agreed portion. If the underwriter fails to pay, the company is free to allot the shares
to others or take up proceeding against the underwriter to claim damages for any loss
Bankers to the issue have the responsibility of collecting the application money along with
the application form. The bankers to the issue generally charge commission besides the
brokerage, if any. Depending upon the size of the public issue more than one banker to the
issue is appointed. When the size of the issue is large, 3 to 4 banks are appointed as bankers
to the issue. The number of collection centers is specified by the central government. The
bankers to the issue should have branches in the specified collection centers.
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Advertising Agents:
Advertising plays a key role in promoting the public issue. Hence, the past track record of
the advertising agency is studied carefully. Tentative program of each advertising agency
along with the estimated cost are called for. After comparing the effectiveness and cost of
each program with the other, a suitable advertising agency if selected in consultation with
the lead managers to the issue. The advertising agencies take the responsibility of giving
publicity to the issue on the suitable media. The media may be newspapers/ magazines/
Financial institutions generally underwrite the issue and lend term loans to the companies.
Hence, normally they go through the draft of prospectus, study the proposed program for
public issue and approve them. IDBI, IFCI & ICICI, LIC, GIC and UTI are the some of the
financial institutions that underwrite and give financial assistance. The lead manager sends
copy of the draft prospectus to the financial institutions and includes their comments, if any
The various regulatory bodies related with the public issue are:
Registrar of companies
Pollution control authorities (clearance for the project has to be stated in the prospectus)
Generally there should be at least 30 mandatory collection centers inclusive of the places
where stock exchanges are located. If the issue is not exceeding Rs.10 Cr (excluding
premium if any) the mandatory collection centers are the four metropolitan centers viz.
Mumbai, Delhi, Kolkatta and Chennai and at all such centers where stock exchanges are
located in the region in which the registered office of the company is situated. The regional
divisions of the various stock exchanges and the places of their locations are given in the
following table:
Collection centers
Coimbatore Stock
Exchange
Cochin Stock Exchange
In addition to the collection branch, authorized collection agents may also be appointed.
The names and addresses of such agent should be given in the offer documents. The
collection agents are permitted to collect such application money in the form of cheques,
draft, and stock-invests and not in the form of cash. The application money so collected
should be deposited in the special share application account with the designated scheduled
bank either on the same day or latest by the next working day.
The application collected by the bankers to the issue at different centers are forwarded to
the Registrar after realization of the cheques, within a period of 2 weeks from the date of
closure of the public issue. The applications accompanied by stock-invests are sent directly
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to the Registrars to the issue along with the schedules within one week from the date of
closure of the issue. The investors, who reside in places other than mandatory and
authorized centers, can send their application with stock-invests to the Registrar to the issue
Initial public offers are floated through Prospectus; Bought out deals/offer for sale; Private
a prospectus document gives details regarding the company and invites offers for
subscription or purchase of any shares or debentures from the public. The draft prospectus
has to be sent to the Regional Stock Exchange where the shares of the company are to be
listed and also to all other stock exchanges where the shares are proposed to be listed. The
stock exchange scrutinizes the draft prospectus. After scrutiny if there is any clarification
needed, the stock exchange writes to the company and also suggests modification if any.
The prospectus should contain details regarding the statutory provisions for the issue,
program of public issue – opening, closing and earliest closing date of the issue, issue to be
listed at, highlights and risk factors, capital structure, board of directions, registered office
of the company, brokers to the issue, brief description of the issue, cost of the project,
projected earnings and other such details. The board, lending financial institutions and the
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stock exchanges in which they are to be listed should approve the prospectus. Prospectus is
distributed among the stock exchanges, brokers and underwriters, collecting branches of the
Terms of the Authority for the issue, terms of payment, procedure and time
Present Issue schedule for allotment, issue of certificate and rights of the
instrument holders.
How to apply – availability of forms, prospectus and mode of
payment.
Special tax benefits to the company and share holders under the
Income Tax Act, if any.
Justification of The justification for price is given, taking into account the
the issue following parameters:
premium Performance of the company – reflected by earnings per share and
book value of shares for the past five years.
Future projections in terms of EPS and book value of shares in the
next three years.
Stock market data.
Net asset value as per the latest audited balance sheet.
If the projections are not based on the past data, appraisal made by
a banker or financial institution should be specifically stated.
Financial Financial performance of the company for last five years should
Information be given from the audited annual accounts in tabular form.
Balance sheet date – equity capital, reserves (revaluation reserve,
the year of revaluation and its monetary effect on assets) and
borrowings.
Profit and loss data – sales, gross profit, net profit, and dividend
paid, if any.
27
Any change in the accounting policy during the last three years
and its effect on the profit and reserves of the company.
Here, the promoter places his shares with an investment banker (bought out dealer or
sponsor) who offers it to the public at a later date. In other works in a bought out deal, an
making a public issue. The wholesaler is invariably a merchant banker or some times just a
company with surplus cash. In addition to the main sponsor, there could be individuals and
other smaller companies participating in the syndicate. The sponsors hold on to these shares
for a period and at an appropriate date they offer the same to the public. The hold on period
In a bought out deal, proving is the essential element to be decided. The bought out dealer
decides the price after analyzing the viability, the gestation period, promoters’ background
and future projections. A bough out dealer sheds the shares at a premium to the public.
PRIVATE PLACEMENT
28
In this method the issue is placed with a small number of financial institutions, corporate
bodies and high net worth individuals. The financial intermediaries purchase the shares and
sell them to investors at a later date at a suitable price. The stock is placed with issue house
client with the medium of placing letter and other documents which taken together
contribute a prospectus, giving the information regarding the issue. The special feature of
the private placement is that the issues are negotiated between the issuing company and the
purchasing intermediaries. Listed public limited company as well as closely held private
limited company can access the public through the private placement method. Mostly in the
private placement securities are sold to financial institutions like Unit Trust of India, mutual
funds, insurance companies, and merchant banking subsidiaries of commercial banks and
so on. Through private placement equity shares, preference shares, cumulative convertible
BOOK BUILDING
Book building is a mechanism through which the initial public offerings (IPOS) take place
in the U.S. and in India it is gaining importance with every issue. Most of the recent new
issue offered in the market has been through Book Building process. Similar mechanisms
are used in the primary market offerings of GDRs also. In this process the price
determination is based on orders placed and investors have an opportunity to place orders at
The recommendations given by Malegam Committee paved way for the introduction of the
book building process in the capital market in Oct 1995. Book building involves firm
allotment of the instrument to a syndicate created by the lead managers who sell the issue at
an acceptable price to the public. Originally the potion of book building process was
available to companies issuing more than Rs.100 cr. The restriction on the minimum size
was removed and SEBI gave impression to adopt the book building method to issue of any
size. In the prospectus, the company has to specify the placement portion under book
building process. The securities available to the public are separately known as net offer to
the public. Nirma by offering a maximum of 100 lakh equity shares through this process
Among the lead managers or the syndicate members of the issue or the merchant bankers as
member. The issuer company as a book runner nominates this member and his name is
mentioned in the draft prospectus. The book runner has to circulate the copy of the draft
prospectus to be filed with SEBI among the institutional buyers who are eligible for firm
allotment. The draft prospectus should indicate the price band within which the securities
The offers are sent to the book runners. He maintains a record of names and number of
securities offered and the price offered by the institutional buyer within the placement
portion and the price for which the order is received to the book runners. The book runner
and the issuer company finalize the price. The issue price for the placement portion and
offer to the public should be the same. Underwriting agreement is entered into after the
One day earlier to the opening of the issue to the public, the book runner collects the
application forms along with the application money from the institutional buyers and the
underwriters. The book runner and other intermediaries involved in the book building
process should maintain records of the book building process. The SEBI has the right to
Book building as discussed is a process of offering securities in which bids at various prices
from investors through syndicate members are collected. Based on bids, demand for the
security is assessed and its price discovered. In case of normal public issue, investor knows
the price in advance and the demand is known at the close of the issue. In case of public
issue through book building, demand can be known at the end of everyday but price is
An issuer company proposing to issue capital through book building has two options viz.,
75% book building route and 100% book building route. In case of 100% book building
route is adopted, not more than 60% of net offer to public can be allocated to QIBs
(Qualified Institutional Buyers), not less than 15% of the net offer to the public can be
allocated to non-institutional investors applying for more than 1000 shares and not less than
25% of the net offer to public can be allocated to retail investors applying for up to 1000
shares. In case 75% of net public offer is made through book building, not more than 60%
of the net offer can be allocated to QIBs and not less than 15% of the net offer can be
allocated to non-institutional investors. The balance 25% of the net offer to public, offered
at a price determined through book building, are available to retail individual investors who
31
have either not participated in book building or have not received any allocation in the book
basis of proportional allotment system. In case of under subscription in any category, the
un-subscribed portions are allocated to the bidder in other categories. The book built
portion, 100% or 75%, as the case may be, of the net offer to public, are compulsorily
Allotments are made not later than 15 days from the closure of the issue etc.
The 100% book building has made the primary issuance process comparatively faster and
The SEBI guidelines for book building provides that the company should be allowed to
disclose the floor price, just prior to the opening date, instead of in the Red herring
prospectus, which may be done by any means like a public advertisement in newspaper etc.
Flexibility should be provided to the issuer company by permitting them to indicate a 20%
price band. Issuer may be given the flexibility to revise the price band during the bidding
32
period and the issuers should be allowed to have a closed book building i.e. the book will
not be made public. The mandatory requirement of 90% subscription should not be
considered with strictness, but the prospectus should disclose the amount of minimum
subscription required and sources for meeting the shortfall. The Primary Market Advisory
which is an ‘over allotment’ option granted by the issuer to the underwriter in a public
offering. This helps the syndicate member to over allocate the shares to the extent of option
available and to consequently purchase additional shares from the issuer at the original
The main difference between offer of shares through book building and offer of shares
Price at which securities will be allotted is not known in case of offer of shares
through Book Building while in case of offer of shares through normal public issue, price is
known in advance to investor. Under Book Building, investors bid for shares at the floor
price or above and after the closure of the book building process the price is determined for
allotment of shares.
33
In case of Book Building, the demand can be known everyday as the book is being
built. But in case of the public issue the demand is known at the close of the issue.
A company proposing to issue capital to public through on-line system of the stock
exchange has to comply with Section 55 to 68A of the Companies Act, 1956 and SEBI
Guideline, 2000. The company is required to enter into an agreement with the stock
exchange(s), which have the requisite system for on-line offer of securities. The agreement
should cover rights, duties, responsibilities and obligations of the company and the stock
exchanges inter-se, with provision for a dispute resolution mechanism between the
company and the stock exchange. The issuer company appoints a Registrar to the Issue
having electronic connectivity with the stock exchanges. The issuer company can apply for
listing of its securities at any exchange through which it offers its securities to public
through on-line system, apart from the requirement of listing on the regional stock
exchange. The stock exchange appoints brokers for the purpose of accepting applications
and placing orders with the company. The lead manager would co-ordinate all the activities
In addition to the above, the SEBI guidelines also provide details of the contents of the
offer document and advertisement, other requirements for issues of securities, like those
under Rule 19(2)(b) of SC(R) Rules, 1957. The guidelines also lay down detailed norms for
preferential/bonus issues.
34
The issues of capital to public by Indian companies are governed by the Disclosure and
Investor Protection (DIP) Guidelines of SEBI, which were issued in June 1992. SEBI has
been issuing clarifications to these guidelines from time to time aiming at streamlining the
public issue process. In order to provide a comprehensive coverage of all DIP guidelines,
SEBI issued a compendium series in January 2000, known as SEBI (DIP) Guidelines, 2000.
The guidelines provide norms relating to eligibility for companies issuing securities, pricing
of issues, listing requirements, disclosure norms, lock-in period for promoter’s contribution,
contents of offer documents, pre-and post-issue obligations, etc. The guideline applies to all
Eligibility Norms: Any company issuing securities through the offer document has to
A company making a public issue of securities has to file a draft prospectus with SEBI,
through an eligible merchant banker, at least 21 days prior to the filing of prospectus with
the Registrar of Companies (RoCs). The filing of offer document is mandatory for a listed
company issuing security through a rights issue where the aggregate value of securities,
including premium, if any, exceeds Rs.50 lakh. A company cannot make a public issue
unless it has made an application for listing of those securities with stock exchanges(s). The
company must also have entered into an agreement with the depository for
35
dematerialization of its securities and also the company should have given an option to
dematerialized form with the depository. A company cannot make an issue if the company
has been prohibited from accessing the capital market under any order or discretion passed
by SEBI.
An unlisted company can make public issue of equity shares or any other security
convertible into equity shares, on fixed price basis or on book building basis, provided:
(i) It has a pre-issue net worth of not less than Rs.1 crore in 3 out of the preceding 5
years and has minimum net worth in immediately preceding two years,
(ii) It has a track record of distributable profits in terms of section 205 of the Companies
(iii) The issue size (offer through offer document + firm allotment + promoters
contribution through the offer document) does not exceed five times its pre-issue net worth.
(iv) A listed company is eligible to make a public issue, on fixed price basis or on book
building basis, if the issue size does not exceed five times its pre-issue net worth.
If the company, listed or unlisted, does not meet the above criteria, then the issue will have
to be compulsorily made through book building route. In such a case, 60% of the issue size
will have to be allotted to the ‘Qualified Institutional Buyers’ (QIBs) failing which the full
Infrastructure companies are exempt from the requirement of eligibility norms if their
finance corporation or infrastructure leasing and financing services and not less than 5% of
36
the project cost is financed by any of the institutions, jointly or severally, by way of loan
and/or subscription to equity or a combination of both. Banks and rights issues of listed
PRICING OF ISSUES
The Controller of Capital Issues Act governed issue of capital prior to May 27, 1992 1947.
Under the Act, the premium was fixed as per the valuation guidelines issued. The
guidelines provided for fixation of a fair price on the basis of the net asset value per share
on the expanded equity base taking into account, the fresh capital and the profit earning
capacity.
The repealing of the Capital Issue Control Act resulted in an era of free pricing of
securities. Issuers and merchant bankers fixed the offer prices. Pricing of the public issue
At Premium: Companies are permitted to price their issues at premium in the case of the
following:
37
First issue of new companies set up by existing companies with the track record.
First issue of existing private/closely held or other existing unlisted companies with
First public issue by exiting private/closely held or other existing unlisted companies
without three-year track record but promoted by existing companies with a five-year track
Existing private/closely held or other existing unlisted company with three-year track
Public issue by existing listed companies with the last three years of dividend paying
track record.
At Par Value: In certain cases companies are not permitted to fix their issue prices at
premium. The prices of the share should be at par. They are for:
First public issue by existing private, closely held or other existing unlisted companies
Existing private/closely held and other unlisted companies without three-year track
Whether you are buying stock from the secondary market or subscribing to an initial public
offering (IPO), make sure you have all the facts. That means going through the small print
in the IPO document with a fine-toothed comb. Don't let market hype, investment trends or
Promoters. Who runs the company? Professionals or a family? If the directors are
well known, it gives a company credibility. Check the credentials of the promoters,
directors and key managerial persons. See if they have at least five years' experience in the
Industry outlook. There should be demand for the company's product or service,
Business plans. Check the progress made, and the money invested in aspects such as
financing, projects in hand, sales and marketing, technical and marketing tie-ups. High
investments from promoters lend credibility to the IPO plan, as do project appraisals by
merchant bankers.
Financials. Check if the company is over-leveraged in terms of the equity and debt on
Check for consistency in revenue, profit growth and margins for at least three years before
More important, scale the historic trend into future projections: A company with a PAT
(profit after tax) of Rs 10 lakh will find it difficult to reach a projected PAT of Rs 15 crore.
Projections are based on assumptions, which give promoters leeway to manipulate figures.
A good way to check if projections are true is to see whether the assumptions are realistic,
39
given the company's scope of operations, and check how it compares with competitors'
figures.
Risk factors. This is the most relevant part of the offer document. General risk factors
are not as damaging as specific ones. Check for contingent liabilities, disputed tax claims,
litigation against promoters and directors, and delay in government clearances. Assume a
worst-case scenario, and see how such factors could impact the company's operations.
Key names. An issue's lead managers and merchant bankers are the people who
manage the issue, from vetting the company's prospectus to seeing the issue through. Check
their track record. You could look up the Sebi website (www.sebi.com) for the issues the
merchant banker has managed in the recent past to see how they fared.
multiple with that of similar players. Check if the earning projections are achievable. If so,
discount the issue price for the next two years to arrive at the growth-adjusted P/E multiple.
You invest in a company purely for returns. In the case of primary equity issues, this can be
a tricky proposition because there are no benchmarks in the form of secondary market
prices to go by.
When a stock is listed, market sentiment, technical factors and investor interest influence
share prices. But in the medium- to long-term, fundamentals take over, which is what
Listing. Ensure you have access to brokers of stock exchanges where the company
proposes to list. If you reside in, say, Delhi, and subscribe to an IPO that is likely to be
listed on the Hyderabad Stock Exchange, the time lag in selling can eat into your returns.
40
IPO grading is the grade assigned by a Credit Rating Agency registered with SEBI, to
the initial public offering (IPO) of equity shares or any other security which may be
converted into or exchanged with equity shares at a later date. The grade represents a
relative assessment of the fundamentals of that issue in relation to the other listed
equity securities in India. Such grading is generally assigned on a five-point point
scale with a higher score indicating stronger fundamentals and vice versa as below.
2. I am an issuer. By when am I required to obtain the grade for the IPO?
IPO grading can be done either before filing the draft offer documents with SEBI or
thereafter. However, the Prospectus/Red Herring Prospectus, as the case may be, must
contain the grade/s given to the IPO by all CRAs approached by the company for
grading such IPO.
Further information regarding the grading process may be obtained from the Credit
Rating Agencies.
41
The company desirous of making the IPO is required to bear the expenses incurred for
grading such IPO.
No, IPO grading is not optional. A company which has filed the draft offer document
for its IPO with SEBI, on or after 1st May, 2007, is required to obtain a grade for the
IPO from at least one CRA.
IPO grade/s cannot be rejected. Irrespective of whether the issuer finds the grade
given by the rating agency acceptable or not, the grade has to be disclosed as required
under the DIP Guidelines. However the issuer has the option of opting for another
grading by a different agency. In such an event all grades obtained for the IPO will
have to be disclosed in the offer documents, advertisements etc.
IPO grading is intended to run parallel to the filing of offer document with SEBI and
the consequent issuance of observations. Since issuance of observation by SEBI and
the grading process, function independently, IPO grading is not expected to delay the
issue process.
7. What are the factors that are evaluated to assess the fundamentals of the issue
while arriving at the IPO grade?
42
The IPO grading process is expected to take into account the prospects of the industry
in which the company operates, the competitive strengths of the company that would
allow it to address the risks inherent in the business(es) and capitalise on the
opportunities available, as well as the company’s financial position.
While the actual factors considered for grading may not be identical or limited to the
following, the areas listed below are generally looked into by the rating agencies,
It may be noted that the above is only indicative of some of the factors considered in
the IPO grading process and may vary on a case to case basis.
8. Does IPO grading consider the price at which the shares are offered in the
issue?
43
No. IPO grading is done without taking into account the price at which the security is
offered in the IPO. Since IPO grading does not consider the issue price, the investor
needs to make an independent judgment regarding the price at which to bid
for/subscribe to the shares offered through the IPO.
9. Where can I find the grades obtained for the IPO and details of the grading
process?
All grades obtained for the IPO along with a description of the grades can be found in
the Prospectus. Abridged Prospectus, issue advertisement or any other place where
the issuer company is making advertisement for its issue. Further the Grading letter of
the Credit Rating Agency which contains the detailed rationale for assigning the
particular grade will be included among the Material Documents available for
Inspection.
10. Does an IPO grade, which indicates ‘above average or strong fundamentals’
mean I could subscribe safely to the issue?
The grades are allocated on a 5-point scale, the lowest being Grade 1 and highest
Grade 5.The meaning of these grades have been explained under Question 1 in this
FAQ.
12. How does IPO Grading help in deciding about investing in an IPO?
44
IPO Grading is intended to provide the investor with an informed and objective
opinion expressed by a professional rating agency after analyzing factors like business
and financial prospects, management quality and corporate governance practices etc.
However, irrespective of the grade obtained by the issuer, the investor needs to make
his/her own independent decision regarding investing in any issue after studying the
contents of the prospectus including risk factors carefully.
SEBI does not play any role in the assessment made by the grading agency. The
grading is intended to be an independent and unbiased opinion of that agency.
14. Will IPO Grading given by CRAs be a parameter for SEBI to issue its
observations?
45
CHAPTER – 3
ANALYSIS AND
INTERPRETATIONS
46
Male 92
Female 08
Total 100
Graph no.1
Gender
8%
Male
Female
92%
(a) 15 to 35 35
(b) 35 to 50 42
(c) 50 to 60 18
(d) Above 60 05
Total 100
Graph No.2
Age group
45%
40%
35%
30%
20% 42%
35%
15%
10% 18%
5%
5%
0%
15 to 35 35 to 50 50 to 60 Above 60
(a) >1,00,000 10
Total 100
Graph No.3
Annual Income
50%
45%
40%
35%
30%
25%
45%
20%
15% Annual Income
10% 21% 24%
5% 10%
0%
0 0 0 e
00 00 00 ov
0 0, 0 0, 0 0, Ab
, 2, 3, d
>1 to to An
0 0 0 1 00
,0 ,0 0 ,0
,00 ,00 ,0
1 2 <3
Interpretation:- 45% investors annual income more than 3,00,000. And 24% investors income
(a) Rural 05
(b) Urban 95
Total 100
Graph No.4
Area
5%
Rural
Urban
95%
3.5 Occupation
Table No.5
Consultant 17
Engineer 18
Builder 25
Businessman 40
Total 100
Source: Primary Data
Graph No.5
Occupation
45%
40%
35%
30%
25% Occupation
20% 40%
15%
25%
10% 18%
17%
5%
0%
Consultant Engineer Builder Business man
Interpretation:- 40% investors are businessman. And 25% builder , 18% engineer,
17% engineers.
51
(a) 1000-10,000 04
(b) 10,001-50,000 44
(c) 50,001-5,00,000 38
(d) 5,00,001 and Above 14
Total 100
Source: Primary Data
Graph No. 6
50%
45%
40%
35%
30%
25%
44%
20% 38%
15%
10%
14%
5%
4%
0%
1,000-10,000 10.001-50,000 50,001-5,00,000 5,00,001 and above
Interpretation:- 44% of the investors, invest around 10,000 to 50,000 and 38% of investors,
invest around 50,001 to 5, 00,000.
52
Graph No.7
40%
35%
30%
25%
20%
36%
15% 32%
10% 18%
14%
5%
0%
d ce es nt
oun an ani ou
gr rm m
p Am
ack r fo co m
B e iu
er r P ng m
ot cto ix sti P r e
o m Se fe
pr o
nce
a
rm
fr o
pe
Interpretation:- 36% of the investors say they go by sector performance and 32% of them say
they go by the performance of the existing companies.
53
Graph No.8
Source of Information
35%
30%
25%
0%
Print Media Electronic Media Expert Opinion Friend Advice
Interpretation:- 30% of investor say the source of information is print media, 16% say
electronic media, 28% go with expert opinion and 26% agree to their friends advice.
54
Table No.9
Factors VHC HC LC NC
1. Company Goodwill 50 35 08 07
2. Market Share 48 29 14 09
3. Corporate Profile 35 43 16 06
4. Historical background 28 33 20 19
5. Board member 17 44 27 12
6. Legal matter 42 31 20 07
8. Percentage subscription 18 25 38 19
16. Legitimacy 27 38 19 16
Graph No.9
55
Note:- VHC- Very high consider, HC- High consider, LC- Low consider, NC- Not Consider
Interpretation:-50% investors very high consider for company goodwill , 48% Very high
consider for market share, 43% high consider for corporate profile, 33% high consider for
historical background, 44% high consider for board member, 31% high consider for legal
matter, 47% very high consider for current financial position, 38% low consider for
percentages subscription, 35% not consider for future prediction and forecast, 41% high
consider for management quality, 42% high consider for market response to the IPO, 35%
high consider for size of the IPO issued,
56
(a) 1yr.-2yr 12
(b) 3yr-5yr 48
(c) 6yr-10yr 28
Total 100
Graph No.10
60%
50%
40%
30%
48%
20%
28%
10%
12% 12%
0%
1 yr.- 2yr 3yr-5yr 6yr- 10yr 11yr and above
Interpretation:- 48% investors are trading for 3 years to 5 years. And 28% for 6 to 10 yr.
Table No.11
Graph No.11
45%
40%
35%
30%
25%
20% 42%
15% 30%
10%
14% 14%
5%
0%
s ce e
er iu
m
an ov
ot em ab
om r rm he
P r yp r fo l t
ly l Pe l
o n On rs o fa
by by cto by
Go Go Se
Go
nly
o
by
Go
Interpretation:- 42% investors advice the new investors to go by only sector performance.
30% investors advice go by only premium.
Table No.12
(a) Yes 48
(b) No 52
Total 100
Source: Primary Data
Graph No. 12
48% Yes
52% No
Interpretation:- 52% investors does not go by the grading before investing. And
48% investors go by grading before investing.
Table No.13
Graph No.13
40%
35%
30%
25%
20%
34%
15% 30%
10% 20%
16%
5%
0%
Below 10% UP TO 10% 10%-15% 15% and Above
Interpretation:- 34% of investors say they have gained upto 10% and 30% say for
10% to 15%.
Table No.14
Total 100
Graph No.14
35%
30%
25%
20%
15% 32%
28%
10% 20%
16%
5%
0%
s g g ng
IP
O tin tin isti
In lis lis r l
st n n
v e ck
o
cko afte
In sto sto m
e
e
th
e eti
sam k m
e ic so
th d
P ia t
ick an W
P O
IP
in
est
v
y in
artl
p
Interpretation:- 32% of the investors feel that its better to pick the same stock on the listing.
28% investors feel they would partly invest in IPO and pick the stock on listing.
3.15 How do you come to know about the new IPO listing?
61
Table No.15
Graph No.15
40%
35%
30%
25%
20% 38%
15%
5%
0%
Through broker Through Telivision Through Friend through newspapers
Interpretation:- 38% of the investors come to know about the new IPO listings through their
friends. And investors say 22% for newspaper and 20% for television and broker.
Table No.16
Graph No.16
47%
53% Listing gain
Long term gain
Interpretation:- 53% investors say long term gain their purpose of IPO investment and
Table No.17
(a) Easy 32
(b) Difficult 08
(c) Complicated 16
(d) Lengthy 44
Total 100
Source: Primary Data
Graph No.17
50%
45%
40%
35%
30%
25%
44%
20%
15% 32%
10%
16%
5% 8%
0%
Easy Difficulty Complicated Lenghthy
Interpretation:- 44% of the investors feel the procedure for applying for an IPO is lengthy,
32% feel easy and simple.
Table No.18
Total 100
Graph No.18
35%
30%
25%
20%
15% 30% 28% 26%
10% 16%
5%
0%
Interpretation:- 30% of the investors say the delay in crediting allotted shares to the demat
account. 28% say no clarity in allotment and 26% say they never faced difficulties. And 16%
say refund problem.
65
CHAPTER- 4
4.1 FINDINGS
66
4.2 SUGGESTIONS
1. The investment in IPO can prove too risky because the investor does not know
anything about the company because it is listed first time in the market so its
performance cannot be measure
2. Investors of the secondary market must take part in the primary markets as
it has been seen that IPO activity in Indian Stock Market has been
tremendously growing. And IPO is the safest stock market investment.
67
BIBLIOGRAPHY
Websites:-
www.scribd.com
www.nscindia.com
www.bscindia.com
www.moneycontrol.com
www.ipohome.com/hie-gerieooie/htm
www.essortment.com/gteorerui-100%dkfjdkei.pdf
www.investopedia.com/reserchpaper.froee-heofdvl%fkldks/
www.ipoavenue.com/ariownnipo-progress&arojsrei/5%akd2e32/
www.bullishindian.com
www.rupya.com
www.investorguide.com
www.hdil.in/
68
Annexure
Questionnaire
Address ______________________________________________________
City, State_____________________________
Contact No.____________________________
1. Gender of Investors
(a) 15 to 35 (b)35 to 50
(c)50 to 60 (d)Above 60
5. Occupation
(d) consultant
(a)1000-10000 (b)10001-50000
15. How do you come to know about the new IPO listing?
(a)Easy (b)Difficult
(c)Complicated (d)Lengthy
(a)Refund Problem (b) Delay in crediting allotted shares to your DEMAT Account