A SEMINAR PRESENTATION

ON
“IPO”
SUBMITTED TO:-
MR. V. UTTATWAR

SUBMITTED BY:-
SANJAY HINGANKAR(ROLL NO. 21)
ISHAN KODMALWAR(ROLL NO. 29)
 INTRODUCTION:-
• IPO issues when company want to expand their
business.
• IPO are issued by corporation through stock
exchange.
• These are known to Primary market.
• It is one of the mode of converting the nature of
capital from private to a public one. 
 About IPO:-
 
• An Initial Public Offering (IPO) simply as an
"offering" or "flotation”.
 PROCESS FOR ISSUING IPO:-
• Issuer Company - IPO Process Initialization
– Appoint lead manager as book runner.
– Appoint registrar of the issue.
– Appoint syndicate members.
• Lead Manager's - Pre Issue Role - Part 1
– Prepare draft offer prospectus document for IPO.
– File draft offer prospectus with SEBI.
– Road shows for the IPO.
• SEBI – Prospectus Review
– SEBI review draft offer prospectus.
– Revert it back to Lead Manager if need clarification or changes (Step
2).
– SEBI approve the draft offer prospectus, the draft offer prospectus is
now become Offer Prospectus.
 PROCESS FOR ISSUING IPO:-:-
• Lead Manager - Pre Issue Role - Part 2
– Submit the Offer Prospectus to Stock Exchanges, registrar of the issue and get it approved.
– Decide the issue date & issue price band with the help of Issuer Company.
– Modify Offer Prospectus with date and price band. Document is now called Red Herring
Prospectus.
– Red Herring Prospectus & IPO Application Forms are printed and posted to syndicate
members; through which they are distributed to investors.
• Investor – Bidding for the public issue
– Public Issue Open for investors bidding.
– Investors fill the application forms and place orders to the syndicate members (syndicate
member list is published on the application form).
– Syndicate members provide the bidding information to BSE/NSE electronically and bidding
status gets updated on BSE/NSE websites.
– Syndicate members send all the physically filled forms and cheques to the registrar of the
issue.
– Investor can revise the bidding by filling a form and submitting it to Syndicate member.
– Syndicate members keep updating stock exchange with the latest data.
– Public Issue Closes for investors bidding.
 PROCESS FOR ISSUING IPO:-
 
• Lead Manager – Price Fixing
– Based on the bids received, lead managers evaluate the final issue price.
– Lead managers update the 'Red Herring Prospectus' with the final issue price and send it to
SEBI and Stock Exchanges.
• Registrar - Processing IPO Applications
– Registrar receives all application forms & cheques from Syndicate members.
– They feed applicant data & additional bidding information on computer systems.
– Send the cheques for clearance.
– Find all bogus application.
– Finalize the pattern for share allotment based on all valid bid received.
– Prepare 'Basis of Allotment'.
– Transfer shares in the demat account of investors.
– Refund the remaining money though ECS or Cheques.
• Lead manager – Stock Listing
– Once all allocated shares are transferred in investors dp accounts, Lead Manager with the help
of Stock Exchange decides Issue Listing Date.
 ABOUT BAJAJ CORPORATION:-
• Bajaj Corp Ltd is one of India’s leading FMCG
company.
• operates businesses in the consumer goods,
sugar, power generation and infrastructure
development industries throughout India.
• Bajaj Corp sells the Bajaj Almond Drops, Amla
Shikakai, Brahmi Amla and Jasmine Hair Oil
brands. Bajaj Almond Drops is the key product
of the company with tooth brand ‘bajaj Black
tooth power.
 Company Promoters:

• Company's Corporate Promoter

Bajaj Consumer Care Limited
• Company's Individual Promoters:
1. Mr. Shishir Bajaj;
2. Mrs. Minakshi Bajaj;
3. Mr. Kushagra Bajaj; and
4. Mr. Apoorv Bajaj.
 WHY BAJAJ NEED FOR ISSUING IPO?

• All ready, Bajaj having its two plants at

Parwanoo and at Dehradun.
• Bajaj want to expand their business as the
third company-operated facility at Paonta
Sahib.
• They want to expand production capacity from
39million to 74 million litre.
 Company Financials:
particular For the year/period ended (Rs. In million)

31-dec-09 31-Mar-09 31-Mar-08

Total Income 2,391.97 2,520.26 0.01

Profit After-Tax(PAT) 564.97 469.92 (0.63)

 ISSUE DETAIL:-

•   »»  Issue Open: Aug 02, 2010 - Aug 05, 2010 

  »»  Issue Type: 100% Book Built Issue IPO 
  »»  Issue Size: 4,500,000 Equity Shares of Rs. 5 
  »»  Issue Size: Rs. 283.50 - 297.00 Crore 
  »»  Face Value: Rs. 5 Per Equity Share 
  »»  Issue Price: Rs. 630 - Rs. 660 Per Equity Share 
  »»  Market Lot: 10 Shares 
  »»  Minimum Order Quantity: 10 Shares 
  »»  Listing At: BSE, NSE
Bidding Status (IPO Subscription details):-

Number of Times is subscribed(NSC&BSC)

As on Date & Qualified Non Institutional Retail Individual Total

Time Institutional Buyers Investors(RII)
Buyers(QIB)

Shares  1,890,000  450,000  1,350,000 3,690,000

offered/Reserved

 Day 1 - Aug 02,  0.7500  0.0100   0.0300   0.4000 

2010 17:00 IST

 Day 2 - Aug 03,  1.3200  0.0200  0.1400  0.7300

2010 17:00 IST

Day 3 - Aug 04,  20.1900  0.3900   0.4000  10.5300 

2010 17:00 IST

Day 4 - Aug 05, 20.1900  53.4900  6.6200  19.2900

2010 17:00 IST
• Book Running Lead Manager(s):-

Kotak Mahindra Capital Company Limited