Executive Summary

The proposal is presented for a study would try to analyze the main factors related to IPO
(Price of stock, marketing, underwriting, rate of return, allotment model and subscription
pattern) and demographic factors (age, gender and income) determining decision
regarding investment in IPO and by what extent.

The objectives of this research are to identify the main factors determining decision
regarding investment decision of public towards IPO in Nepal, to analyze the pattern of
public response towards IPO and to access the current situation of primary market. The
research mainly focuses on the responses of individual investors towards IPO and also
focuses on what they actually want in IPO and their knowledge level towards IPO.

120 samples would be selected and administered with questionnaire, various statistical
tools such as correlation test, regression and ANOVA for data analysis.

The study will try to picturize the public preference to invest in financial sector rather
than non-financial sector an what affects their investment behavior.

The study tries to analyze the relationship between demographic variables and public
response. Three constraints age, gender and income are taken as demographic variables
which might bear capacity to affect public response. It would try to analyze if income of
the respondents has significant relationship with marketing and underwriting, price of
stock, rate of return and allotment model.

The study would be useful for the Securities board of Nepal and other concerned
authorities to conduct public awareness and investors education programs to increase the
level of public awareness.