A Presentation On Research Paper On IPO volatility In style Indian Market Click to edit Master subtitle

Presented By : Jignesh Prajapati Bhavin Patel

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Objectives :
v To identify the Volatility of IPO in Indian market on

listing day & subsequent day.

v To identify the Day's Volatility v Identify the volume relative to the listing day

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Section I Introduction :
v
Definition : IPO (Initial public offer) is a tool for raise capital through equity.

Method :

Book building Method :

Reservation in IPO : Retail 35% QIB (Qualified institutional buyers)- 50% NIIs like mutual fund companies - Remains

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Section 2 :

Data Collection &

Methodology

Research Period (Jan 2011 Mar 2012) Days volatility =

Low

Days high Days Days Low

Days Relative Volume to listing day Volume

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= Days Volume

Section 3 : Key Results

v

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Volatility & Volume Comparison

Cont

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Recommendati ons
v

Anchor Investor : Company should go for anchor

investor subscription, and there may be a lock in period like 1 month from listing day.

Price band on listing day : Need to upper & lower

circuit as per normal day.

An alternative method to book building, known as the auction method, can also help in control Volatility. Auction Method includes the information of all market participants to setting of offer price. This method 4/5/12 runs the risk of further alienating retail investors, whose

Section 4 : Conclusion
v
q

Highest volatility is found on listing day .

q observed 15% average listing gains for January 2011 to March

2012 Period.
q Book

Building

Method

of

IPO

price

fixing

and under pricing

issues have made it difficult to accurately determine the fair value of the stock.
q Oversubscription of IPO positive related and Size of IPO Negative

related to

IPO listing.

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Appendi x:
INDO THAI SECURITIES LIMITED FLEXITUFF INTERNATIONAL LIMITED

FINEOTEX CHEMICAL LIMITED

BHARATIYA GLOBAL NFOMEDIA LIMITED READYMADE STEEL INDIA LTD BIRLA PACIFIC MEDSPA LIMITED

ACROPETAL TECHNOLOGIES LIMITED SUDAR GARMENTS LIMITED OMKAR SPECIALITY CHEMICALS LIMITED TATA STEEL LIMITED MIDVALLEY ENTERTAINMENT LIMITED C. MAHENDRA EXPORTS LIMITED PUNJAB & SIND BANK RAVI KUMAR DISTILLERIES LIMITED A2Z MAINTENANCE & ENGINEERING SERVICES LTD CLARIS LIFESCIENCES LIMITED MOIL LIMITED R.P.P. INFRA PROJECTS LIMITED MCX

RUSHIL DECOR LIMITED TIMBOR HOME LIMITED VMS INDUSTRIES LIMITED ENGINEERING LTD SERVALAKSHMI PAPER LIMITED INNOVENTIVE INDUSTRIES LIMITED

TAKSHEEL SOLUTIONS LIMITED

M AND B SWITCHGEARS LIMITED

FUTURE VENTURES INDIA LIMITED PARAMOUNT PRINTPACKAGING LIMITED

RDB Rasayans Limited

MUTHOOT FINANCE LIMITED SHILPI CABLE TECHNOLOGIES LIMITED

Prakash Constrowell Ltd

PTC INDIA FINANCIAL SERVICES LIMITED LOVABLE LINGERIE LIMITED

PG ELECTROPLAST LIMITED

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