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SRM B-SCHOOL FACULTY OF ENGINEERING AND TECHNOLOGY SRM UNIVERSITY (RAMAPURAM II) VADAPALANI, CHENNAI
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ABSTRACT This project titled ―A study on investor‘s opinion towards initial public offering‖ is analyzed by me at UNICON INVESTMENT SOLUTION Ltd, and it describes about how client‘s select this trading instrument. And what are the factors that determine that particular instrument with the things they (client) expect from the stock exchange. Ipo‘s are often issued smaller, younger companies seeking the capital to expand, but can also done by large privately owned companies looking to become publicily traded. I have conducted this project report to study the perception of Indian retail Investors about their investment in IPO, this is basically a primary research; for this I have made a questionnaire and with the help of which I have collected the primary data from the retail investors. The basic objective of this research is to find out the factors affecting the investment decisions of the investors, while investing in IPO‘s like return, risk etc. and to check the awareness level of the Indian Retail Investors.

These objectives were accomplished through a survey of respondents at UNICON INVESTMENT SOLUTION Ltd Data was collected with the help of questionnaires. Target respondent for this survey are the one who invest in equity market frequently UNICON INVESTMENT SOLUTION Ltd. For getting authenticated results diversified group of investors i.e. short term and long term investors belonging to different age groups were selected The results obtained from the analyses were used to develop conclusion which are incorporated at the end of this file.

TABLE OF CONTENTS

Page Number

CHAPTER 1

INTRODUCTION

1.1 1.2 1.3 1.4

COMPANY BACKGROUND OBJECTIVES NEED FOR THE STUDY SCOPE & SIGNIFICANCE

CHAPTER 2

PROBLEMS & ANALYSIS

2.1 2.2 2.3 2.4

PROBLEM IDENTIFIED IMPLICATIONS OF THE PROBLEM MAJOR OBSERVATIONS SOLUTIONS

CHAPTER 3

SUGGESTIONS & CONCLUSION

3.1 3.2

SUGGESTIONS FOR IMPROVEMENT CONCLUSION

an electronic book is opened for at least five days. The company that is issuing the Initial Public Offering (IPO) decides the number of shares that it will issue and also fixes the price band of the shares. but can also be done by large privatelyowned companies looking to become publicly traded. or a mixture of both. The method of book building has been introduced in the country in 1999 and it helps the company to find out the demand and price of its shares. Once the book building is closed then the issuer as well as the book runner of the Initial Public Offering (IPO) evaluate the offers and then determine a fixed price. which helps it determine what type of security to issue (common or preferred).CHAPTER 1 INTRODUCTION INITIAL PUBLIC OFFERING (IPO) Initial public offering (IPO). The offers for shares that fall below the fixed price are rejected. Initial Public Offering (IPO) in India means the selling of the shares of a company. IPO in India is done through various methods like book building method. for the first time. All these information are mentioned in the company‘s red herring prospectus. This is done by giving to the public. also referred to simply as a "public offering". . to the public in the country‘s capital markets. A merchant banker is nominated as a book runner by the Issuer of the IPO. the issuer may obtain the assistance of an underwriting firm. During this period of time. During the company's Initial Public Offering (IPO) in India. bidding takes place which means that people who are interested in buying the shares of the Company makes an offer within the fixed price band. During an Initial Public Offer (IPO) the shares are given to the public at a discount on the intrinsic value of the shares and this is the reason that the investors buy shares during the Initial Public Offering (IPO) in order to make profits for themselves. best offering price and time to bring it to market. is when a company issues common stock or shares to the public for the first time. shares that are either owned by the promoters of the company or by issuing new shares. fixed price method. In an IPO. younger companies seeking capital to expand. They are often issued by smaller.

Valuation: The public trading of the shares determines a value for the company and sets a standard. mergers. This is extremely helpful as the company provides the employees with stock incentive packages and the investors are provided with the option of trading their shares for a price. This works in favor of the company as it is helpful in case the company is looking for acquisition or merger.REASON FOR LISTING IPOs: Increase in the capital: An IPO allows a company to raise funds for utilizing in various corporate operational purposes like acquisitions. Liquidity: The shares once traded have an assigned market value and can be resold. It also provides the share holders of the company with the present value of the shares. working capital. expanding plant and equipment and marketing. . research and development.

Entire money received in one stroke without linking to any milestones. For new promoters and new company it is difficult to market their IPO. No issues with returning of finance DEMERITS     Success of IPO has an element of risk. No restrictions attached to financing. . hypothecation etc. IPO can only finance part of the project IPO performance post listing has also bearing. No issues such as mortgaging.OBJECTS OF THE OFFERING NEW IPO  Funds Requirement  Funding Plan (Means of Finance)  Schedule of Implementation  Funds Deployed  Sources of Financing of Funds already deployed  Interim Use of Funds  Basic Terms of Issue  Basis for issue price  Tax Benefits r1.3 MERITS OF IPO: • • • • • • Low cost financing No commitment of fixed returns.

With our sophisticated technology you can trade through your computer and if you want human touch you can also deal through our Relationship Managers out of our more than 100 branches spread across the nation. Chennai.000 the Unicon Group has an eye for the intricate financial needs of its clients and caters to both their short – term and long – term financial needs of investment services. and has its Corporate office in Mumbai with regional offices in Kolkata. The company is headquartered in New Delhi. It was founded in 2004 by two visionary and hardworking entrepreneurs. Hyderabad and Noida Now about unicon and its services provided. who possess expertise in the field of Finance.1 COMPANY BACKGROUND UNICON has been founded with the aim of providing world class investing experience to hitherto underserved investor community. With a customer base of over 200. We give personalized premium service with reasonable commissions on the NSE. ABOUT UNICON: UNICON is a financial services company which has emerged as a one-stop investment solutions provider. BSE & Derivative market through our Equity broking arm UNICON Securities Pvt. The technology today has made it possible to reach out to the last person in the financial market and give him the same level of service which was available to only the selected few. Ltd. Gupta.1. UNICON is a professionally managed company led by a team with outstanding managerial acumen and cumulative experience of more than 400 man years in the financial markets The Company is supported by more than 4500 Uniconians and has a team of over 900 business offices in 235 cities across India. Mr Gajendra Nagpal and Mr Ram M. .

Ltd offers personalized premium services on the NSE. MISSION: To create long term value by empowering individual investors through superior financial services supported by culture based on highest level of team work.The Equity broking arm – UNICON Securities Pvt. The Corporate Advisory Services arm – Unicon Capital Services (P) Ltd offers entire gamut of Investment Banking services to corporate. client service and development GROUP OF COMPANIES UNICON financial intermediaries‘ Pvt Ltd consists of the following group of companies: fixed income&in vestment banking trading in equity&de rivatives UNICON securities pvt ltd distributio n UNICON insurance advisors pvt ltd real estates UNICON real estates pvt ltd commodit ies trading UNICON commodit ies pvt ltd . The UNICON group also has a PCG division providing investments solutions for High Net Worth Individuals. Ltd offers services in Commodity trading on NCDEX and MCX. BSE & Derivatives market. efficiency and integrity VISION: To provide the most useful and ethical investment solutions guided by values driven approach to growth. The Commodity broking arm Unicon Commodities Pvt.

 To analyze the investors preference in deciding the company.  To study the preference of different investment categories of IPO.2 OBJECTIVES OBJECTIVES OF THE STUDY PRIMARY OBJECTIVE  To analyze the investors perception towards Initial Public Offering (IPO) SECONDARY OBJECTIVES  To study on the fundamental analysis of the company to invest in IPO issued by the Company. .  To get the feedback of investors on their preferences towards IPO investment.1.  To analyze the benefits of the investors while investing in IPO  To find out which source is more effective in creating the IPO awareness.

It also involves in analyzing the risk in investing the particular firm. The need of this study is to analyze what investors are expecting from IPO. It will capture the systematic investing pattern based on the investor‘s mode. the demand for it and any offer being planned by a competitor. how they make decision according to the situation. how they react for the changes that takes place in the Market. This study will helps to understand what the investor should watch out for investing in primary market. It would be beneficial to gather as much knowledge as possible about the IPO market. the company offering it. This is a crucial step as the broker would be the one who would majorly handle your money. .3 NEED FOR THE STUDY The main purpose of the study is to analyze the IPO market. It gives out the objectives and principles of the management and will also cover the risks. IPO allocations are controlled by underwriters.1. This needs to understand the perception of the investors and the due course of market and its prominent conditions. This study will help to understand the market and its behavioral approach towards the needs of the investors. The prospectus of the company can serve as a good option for finding all the details of the company. The first step to getting IPO allocations is getting a broker who underwrites a lot of deals.

their ideas and interest level of IPO investment. which can favor in fulfilling people‘s requirements. It is useful to analyze the thinking of people. . It is useful to both the investors and others to reduce risk.1. This may lead us to find out the most reputed investment organization and its position in investors mind. the reason that why they prefer IPO investment than others and what purpose they have invested in IPO. The company can suggest the preference of the investors in IPO.4 SCOPE & SIGNIFICANCE The study was conducted on UNICON INDIA PVT LTD Chennai. Based on this study a survey is conducted from various equity investors to analyze the IPO listing pattern. It also helps to understand the benefits of investing in IPO. It also creates awareness among people from different classes. It gives a chance to buy the shares of the company directly. Interaction with investor will be useful in finding out the company that has goodwill among public. This study gives a vivid picture about the investor‘s perception level towards IPO. The study helps the company to understand the effective ways of distribution channel for IPO.

unlike debt rating. Given that the decision to invest or avoid investments in any IPO is most often a function of the pricing. at times. Further. is more dynamic and cannot be standardized. which could become a `missed opportunity' in the future. might get defeated if it leads to a false sense of buoyancy or alarm among investors. rating agencies (experienced in debt rating) could face trouble with rating the equities. which. investors may get deluded by a low-graded IPO. Markets. Also.1 PROBLEM IDENTIFIED More often than not. That is to say that. in this case.CHAPTER 2 PROBLEM & ANALYSIS 2. The purpose of introducing grading. Similarly. thus. in the short term. the pricing of any IPO is what influences the decision of any investor. Despite having disclaimers. even good companies at higher price could be a bad investment choice. it could increase the cost of raising capital in India and urge companies to seek capital overseas. the lack of this aspect in the present IPO grading system could make the whole process an unfinished task. can be price-driven and not purely motivated by company fundamentals. IPO grading mechanism is a globally-unique initiative. while the not-as-good ones could be a steal at lower prices. . The rating agencies. will not talk about ‗what price'' and ``what time'' aspects of the offer. a higher graded IPO may well tempt small investors into falsely believing that a high premium would come about on listing.

EMPLOYEE 15. and remaining 15.8 PROFESSIONAL PVT.1 19 120 15. and 15. it is evident that out of 120 respondents 15.0 15.IMPLICATIONS OF THE PROBLEM TABLE.8 64 53. .8 100.1 GOVT.3 18 15.8% of the respondents are professionals.8% of them are self employed peoples.1 OCCUPATION RESPONDENT SL.1% of them are govt. employees.EMPLO YEE 3 GOVT.EMPLOYEE SELF EMPLOYED 53. 53.3 INFERENCE: From the above table.3% of them are private employees.8 15.NO FACTORS 1 PROFESSIO NAL 2 PVT.EMPL OYEE 4 SELF EMPLOYED TOTAL S 19 PERCENTAGE 15.

2 5.3 INFERENCE From the above table . .0 2 3 4 5 2-5 LAC 5-8 LAC 8-10 LAC ABOVE 10 LAC TOTAL 10 5 37.5% of the investors are having below 2 lack annual income. it is inferred that out of 120 respondents 37.2% of them are 5-8 lack income earned.3% of them are 2-5 lack income. and balance 10% of them are only earned above 10 lacks.0 100.2 BELOW 2 LAC 2-5 LAC 5-8 LAC 8-10 LAC ABOVE 10 LAC 38.TABLE -2 ANNUAL INCOME SL.9.0 10.NO 1 FACTORS BELOW 2 LAC RESPONDENTS 45 46 11 6 12 120 PERCENTAGE 37.3 9.5 38. 5% of them are 8-10 lack income earned.38.5 9.

2 8-10 YRS ABOVE 10 YRS INFERENCE: From the above table.0 4.5 BELOW 2 YRS 2-5 YRS 5-8 YRS 54.2 24.0 4.2 24. it is inferred that out of 120 respondents 54. .5 5.2 100.2 12. 24. 12. 5% of them having 8-10 years experience and balance 4.2% of them having only above 10 years experience about IPO.2 5 12.5% of them having 5-8 years experience.2% of the investors having below 2 years experience about investment in IPO.NO 1 2 3 4 5 FACTORS BELOW 2 YRS 2-5 YRS 5-8 YRS 8-10 YRS ABOVE 10 YRS TOTAL RESPONDENTS 65 29 15 6 5 120 PERCENTAGE 54.2% of them have 2-5 years experience.TABLE-3 TOTAL EXPERIENCE ABOUT INVESTMENT IN IPO SL.

0 2 3 4 SATISFIED AVERAGE NOT SATISFIED 8 TOTAL 120 6. 40.3 40.3 INFERENCE From the above table.8% of them are giving average and balance 6. 43.2 43.2% of the investors highly satisfied with IPO investment. it is evident that 9.2 HIGHLY SATISFIED SATISFIED AVERAGE NOT SATISFIED 40.3% of them are satisfied.8 43.7 100.8 6.7 9.7% of them are not satisfied with the IPO investment. .TABLE-4 SATISFACTION LEVEL OF IPO SL.NO 1 FACTORS HIGHLY SATISFIED RESPONDENTS 11 52 49 PERCENTAGE 9.

8 INFERENCE From the above table. and remaining 5% of them are stated that it is poor.0 5 19.8% are stated that it is good.2 30 EXCELLENT GOOD AVERAGE POOR 45.8 30. 45.0 5. .2% of the investors say that their rate of return in IPO is excellent. 30% of the respondents stated that it is average.2 45.0 100. it is inferred that out of 120 respondents 19.NO 1 2 3 4 FACTORS EXCELLENT GOOD AVERAGE POOR TOTAL RESPONDENTS 23 55 36 6 120 PERCENTAGE 19.TABLE-5 RATE OF RETURN IN INVESTING IN IPO SL.

2% of the investors have 0 to 20% knowledge about IPOs. . 21.7 10.2 45.8 7.2 0-20% 20-40% 40-60% 60-80% 21.8% of them have 80% knowledge. it is evident that 14.8 21.5 10.8 INFERENCE From the above table.8 14. 45. 10.8% of them have 40% knowledge.0 7.7% of them have 60% knowledge.5 100.TABLE-6 LEVEL OF KNOWLEDGE ABOUT IPOS SL NO 1 2 3 4 5 FACTORS 0-20% 20-40% 40-60% 60-80% 80-100% TOTAL RESPONDENTS 17 55 26 13 9 120 PERCENTAGE 14.5% of them having only 100% Knowledge.7 80-100% 45. and remaining 7.

3% of them are stated that it is aggressive.3 100. it is evident that out of 120 respondents 18. and the remaining 18.3 18. 63.3 63.0 YOURSELF AS A RISK TAKER 18% 18% CONSERVATIVE MODERATE AGGRESSIVE 64% INFERENCE: From the above table.3% of them are giving moderate. .TABLE-7 HOW DO YOU DESCRIBE YOURSELF AS A RISK TAKER SL NO 1 2 3 FACTORS CONSERVATIVE MODERATE AGGRESSIVE TOTAL RESPONDENTS 22 76 22 120 PERCENTAGE 18.3% of the investors stated that their risk taking level is conservative.

0 9.3 AGREE STRONGLY AGREE 26.7% of them have undecided (neither agree or disagree). .2% of them disagree and 2.7 NEITHER AGREE OR DISAGREE DISAGREE STRONGLY DISAGREE 33.3 33.3% of the investors agree that IPO is a risky investment.3% of them are strongly agree.7 9. 26.2 2.3 26.TABLE-8 IPO IS A RISKY INVESTMENT SL.NO FACTORS 1 2 3 AGREE STRONGLY AGREE NEITHER AGREE OR DISAGREE 4 5 DISAGREE STRONGLY DISAGREE TOTAL RESPONDENTS 34 40 32 11 3 120 PERCENTAGE 28.9.5 100.5 28. 33.3 INFERENCE: From the above details we can concluded that 28.5% of them have strongly disagree with this statement.2 2.

.2 100.8 39.NO 1 2 FACTORS ONLINE OFFLINE TOTAL RESPONDENTS 73 47 120 PERCENTAGE 60.8% of them are stated that the mode of investment is through online.2% of them only comes through offline. remaining 39.2 ONLINE OFFLINE 60.0 39.TABLE-9 MODE OF INVESTMENT IN IPO SL.8 INFERENCE: From the above table it is inferred that out of 120 respondents 60.

8% of the respondents stated that the source of collecting information regarding IPO is by the brokers.5% of them are from word of mouth and the remaining 12.0 12.8 49.8 BY BROKER BY MEDIA 17.10 SOURCE OF COLLECTING INFORMATION REGARDING IPO SL.5 12.NO 1 2 3 4 FACTORS BY BROKER BY MEDIA WORD OF MOUTH OTHERS TOTAL RESPONDENTS 25 59 21 15 120 PERCENTAGE 20. 17.5 20.2 17.5 WORD OF MOUTH OTHERS 49.2% of them are collected by the brokers. 49. it is inferred that out of 120 respondents 20.5% of them are collected through others.5 100.2 INFERENCE: From the above table. .TABLE .

NO 1 2 3 4 FACTORS SELF ANALYSIS WORD OF MOUTH ANALYSTS OTHERS TOTAL RESPONDENTS 48 50 15 7 120 PERCENTAGE 40. 12. .0 5.TABLE-11 MODE OF CHOSING PARTICULAR IPO SL.5 5.5 40 SELF ANALYSIS WORD OF MOUTH ANALYSTS OTHERS 41.5% of them are from analysts and the remaining 5.8% of them are choosing through others.8 100.7% of them are choosing by word of mouth.8 12.7 INFERENCE: From the above table. 41.0 41. it is evident that out of 120 respondents 40% of the respondents stated that the mode of choosing particular IPO is by self analysis.7 12.

11.5 100.7 37.NO 1 2 3 4 FACTORS 100% 75% 50% 25% TOTAL 25% RESPONDENTS 11 14 50 45 120 PERCENTAGE 9. it is evident that out of 120 respondents 9.7 41. and the remaining 37.TABLE-12 WHAT PERCENTAGE OF INCOME DO YOU INVEST IN IPO SL. .2 11. 41.0 100% 50% 1 2 3 4 75% INFERENCE: From the above table.5% of them are stated that it is 25%.7% of them are stated that 50%.2% of them are stated that the percentage of income invest in IPO is 100%.7% of them are giving 75%.

it is evident that out of 120 respondents 35% of the investors stated that profitability of IPO comparing with others is only average return.0 PROFITABILITY OF IPO 4% 20% 35% AVG. RETURN HIGH RETURN LESS RETURN NO RETURN 41% INFERENCE: From the above table.8 20.NO 1 2 3 4 FACTORS AVG.TABLE -13 PROFITABILITY OF IPO COMPARING WITH OTHERS SL.0 40.2% of them are stated that it is no return. 40.8% of them are stated that high return.0 4.2 100. . and the remaining 4. RETURN HIGH RETURN LESS RETURN NO RETURN TOTAL RESPONDENTS 42 49 24 5 120 PERCENTAGE 35. 20% of them are stated that it is less return.

RISK 58.2% of them are stated that it is average risk. 58.2% of them are stated that it is less risk. 14.3 INFERENCE: From the above table.2 9.0 9.3% of the investors are stated that the risk factor prevailing in IPO comparing with others is high risk.3 14.2 100.2 18.TABLE-14 RISK FACTOR PREVAILING IN IPOS COMPARING WITH OTHERS SL.RISK TOTAL RESPONDENTS 22 70 17 11 120 PERCENTAGE 18.2 HIGH RISK MEDIUM RISK LESS RISK AVG. it is evident that. out of 120 respondents 18. and the remaining 9.3 14.3 58.NO 1 2 3 4 FACTORS HIGH RISK MEDIUM RISK LESS RISK AVG.3% of them are stated that it is medium risk. .

8 3.0 5 3.2% of them are strongly agree.3. it is inferred that 31.8 24. . 24.0 100.NO FACTORS 1 2 3 AGREE STRONGLY AGREE NEITHER AGREE OR DISAGREE 4 5 DISAGREE STRONGLY DISAGREE TOTAL RESPONDENTS 38 29 43 4 6 120 PERCENTAGE 31.3 31.8% of them have undecided (neither agree or disagree).3 5.7 AGREE STRONGLY AGREE NEITHER AGREE OR DISAGREE DISAGREE STRONGLY DISAGREE 35.TABLE-15 INVESTING IN IPO IS SAFE FOR SMALL INVESTORS SL. 35.2 35.2 INFERENCE From the above table.3% of them disagree and 5% of them have strongly disagree with this statement.7% of the investors agree that investing in IPO is safe for small investors.7 24.

it is inferred that out of 120 respondents 55% of them are giving YES for the awareness of the procedures before applying the IPO. .0 100. and the remaining 45% of them stated that it is NO.TABLE-16 AWARENESS OF THE PROCEDURES BEFORE APPLYING FOR THE IPO SL.NO 1 2 FACTORS YES NO TOTAL RESPONDENTS 66 54 120 PERCENTAGE 55.0 45.0 45 YES NO 55 INFERENCE: From the above table.

5% of the investors are expecting some more companies coming out with their IPOs in FY2011.5 22. and the remaining 45% of them says can‘t say. .TABLE-17 DO YOU EXPECT SOME MORE COMPANIES COMING OUT WITH THEIR IPO’S IN FY2011? SL.5 45. 22. it is inferred that out of 120 respondents 32.NO 1 2 3 FACTORS YES NO CAN‘T SAY TOTAL RESPONDENTS 39 27 54 120 PERCENTAGE 32.0 32% 45% YES NO CAN’T SAY 23% INFERENCE: From the above table.5% of them are says that NO.0 100.

3 30. and the remaining 30.3 38.3% of them are says that the sectors performance. .TABLE-18 ADVICE FOR NEW INVESTORS IN IPOS SL.3 13.6% of the investors are stated that their advice for new investors in IPOs is go by only promoters.6 38.3% of them stated that only premium.NO 1 FACTORS GO BY ONLY PROMOTERS RESPONDENTS PERCENTAGE 21 46 16 37 120 17.3 INFERENCE: From the above table.8 100.6 17. 38. it is inferred that out of 120 respondents 17. 13.8% of them are stated that all the above.0 2 3 ONLY PREMIUM SECTORS PERFORMANCE 4 ALL THE ABOVE TOTAL 30.8 GO BY ONLY PROMOTERS ONLY PREMIUM SECTORS PERFORMANCE ALL THE ABOVE 13.

For the individual investor. it is tough to predict what the stock or shares will do on its initial day of trading and in the near future since there is often little historical data with which to analyze the company. .2.3 MAJOR OBSERVATIONS  An IPO can be a risky investment.   Share market doesn‘t responded as the applicants Due to which thousands of retail investor who are not investing jumped into the market in recent years moreover they are eager not to be left out of the profit from Sensex's rapid growth  Petro China‘s share fall by 50 % following the same trend the Indian companies slated 15 IPO for 2008 will now be postponed.

1 SOLUTIONS .2.

Also the DIP guideline is framed in such a manner. But I think such kind of grading is not enough because it doesn‘t give enough information about the company. are doing very important task.1 SUGGESTIONS FOR IMPROVEMENT After making the project. which can be understood by any individual. which are involved in IPOs or initial public offering.  I would suggest shortening the time between application and allocation or listing. This would help investor in investing the same money in other IPOs if he is not allotted shares in that particular company.  IPOs should be graded which is already started.CHAPTER 3 SUGGESTIONS & CONCLUSION 3. it only says what the level of grade that a company deserves is. I would like to say SEBI is playing very important role in regulating the risk and financial aspects of the investors. We know SEBI and other intermediaries has done great job in doing so in the past. Overall the process and the various intermediaries. . I found the following points very important from the investor point of view while doing this project:  The IPOs should be consumer friendly: Any investor should be able to analyze the IPO in its simplest form and should be able to understand of whether to apply for it or not. but looking at the current scenario we think it‘s very important to do so.

Even mutual funds have got into the act. either due to general concerns about a volatile market. this is the time to make a dash for it . making it obvious that the Indian investor has far more appetite for equities than most people realize. Most of the money has been raised by big companies with a long-term track record. If investors are gung-ho about IPO‘s. This interest has been sustained despite the lack of bounce in the secondary market and is not confined to the big issues. DQ Entertainment (International) Ltd and NMDC Limited are lining up issues. to the ONGC and TCS issues. this one is being driven by a much better quality of offering. The data show that as much as Rs. 2033. and are tailoring their offerings to match current market fancies— mid-cap funds. perhaps even more so than in the secondary one. If the government wants to get some money into its kitty through disinvestment programmers. or because of a deliberate effort to leave something on the table for all investors. the opinions of the ―experts‖ have proved to be wide off the mark. where the huge sizes of the offerings drew predictions of calamitous effects on the secondary markets. there is no denying the enormous interest retail and other investors have shown in the primary market. Next. before the markets got the shivers. A substantial number of issues—barring that of TCS—also happened during the early part of the year. dividend yield funds. Unlike earlier IPO booms. there are several reasons for it. The listing gains have probably initiated a kind of virtuous cycle. and whathave you. tempting investors who have already made money to return to the primary market.99 Crores has been raised from the primary market in the current calendar year. even smaller issues have sailed through with large oversubscriptions. The heavy oversubscriptions in many cases can also be traced to the availability of bank finance for IPO investment.3. but the secondary markets proved to be far more resilient than anybody had anticipated. There is also reason to believe that companies are pricing their issues less aggressively this time. which pundits decried as being overpriced. Not only did the mega issues sail through. Missing in action so far are the fly-by-night operators of the 1990s who made public offers only to collect the money and vanish.2 CONCLUSION The Indian initial public offer (IPO) market has always had more than its fair share of doomsayers Right from the Maruti issue. Nevertheless. most recent IPO‘s have resulted in gains on listing for the investor.

APPENDICES QUESTIONNAIRE BIBLIOGRAPHY .

. (1)Agree (2) strongly agree (3) Neither agree or Disagree (4) Disagree (5) Strongly Disagree 12) Mode of investment in IPO? (1) Online (2) Offline 13) Which source do you prefer to collect information regarding particular IPO? (1)By the broker (2) by media (3) Word of mouth (4) others 14) What mode you to chose particular IPO? (1)By self analysis (2) word of mouth (3) analysts (4) others 15) What percentage of income do you invest in IPO? (1)100 % (2)75% (3)50% (4) 25% 16) How you find the profitability of IPO comparing with other investment? . Employee (3) Govt. employee (4) Self employed 5) Annual income per annum (1)Below 2 Lac (2) 2-5 Lac (3)5-8 Lac (4)8-10 Lac (5) above 10 Lac 6) Total experience about investment in IPO? (1) Below 2 yrs (2) 2-5 yrs (3) 5-8 yrs (4) 8-10 yrs (5) above 10 yrs 7) What is your satisfaction level in IPOS? (1) Highly satisfied (2) Satisfied (3) Average (4) Not Satisfied 8) To what extent rate of return in investing in IPO is viewed from your point of view? (1) Excellent (2) good (3) average (4) poor 9) To what level do you have knowledge about IPOS? (1) 0-20% (2) 20-40% (3) 40-60% (4) 60-80% (5) 80-100% 10) How do you describe yourself as a risk taker? (1) Conservative (2) Moderate (3) Aggressive 11) ―IPO is a risky investment‖………………………….QUESTIONNAIRE 1) Name: 2) Age: (1) Below 25 (2) 25-35 (3) 36-45 (4) 46-55 (5) above 55 3) Gender (1) Male (2) Female 4) Occupation: (1) Professional (2) Pvt.

and colleagues to invest in IPO? (1) If yes mention the reason (2) If no mention the reason . relatives. 20) Do you know the importance of fundamental analysis of an IPO? (1) Yes (2) No 21) Are you aware of the procedures before applying for the IPOs? (1) Yes (2) No 22) Do you expect some more companies coming out with their IPOs‘ in FY 2011? (1) Yes (2) No (3) Can‘t say 23) What is your advice for new investors in IPOs? (1) Go by only promoters (2) Go by only premium (3) Go by only sectors performance (4) All the above 24) Have you suggested your friends.(1)Average Return (2) High return (3) Less return (4) No return 17) How you analyze the risk factor prevailing in IPOs comparing with other investment? (1) High risk (2) Medium risk (3) Less risk (4) Average risk 18) Investing in IPO of companies is safe for small investors (1)Agree (2) strongly agree (3) Neither agree or Disagree (4) Disagree (5) Strongly Disagree 19) List your preference of investing in a company (1) Brand/image of the company (2) Profitability of the company (3) Dividend policy (4) Company performance (5) others….

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