A PROJECT ON

“INDIRECT TAX(GST)” 
 
SUBMITTED TO 

                               
 
LAXMAN DEVRAM SONAWANE COLLEGE 
COMPLETION OF THE DEGREE OF MASTER IN COMMERCE 
 
(ADVANCED ACCOUNTANCY) 
SEMESTER 4 (2021‐22) 
UNDER THE FACULTY OF COMMERCE 
 
SUBMITTED BY: 

MS. PREETI BRIJRAJ SINGH TOMAR 

ROLL NO 43 

M.COM PART II 

UNDER THE GUIDANCE OF 
PRO MS. MANYA HARDWANI 
 
LAXMAN DEVRAM SONAWANE COLLEGE 
ARTS, SCIENCE AND COMMERCE 
OPPOSITE OF FIRE STATION, NEAR DURGADI KILLA 
KALYAN (W)‐ 421301 
SEM 4 (2021‐22) 
 
  
CERTIFICATE 

This is to certify that MS. PREETI BRIJRAJ SINGH TOMAR, ( Roll No. 43)  has worked 
and  duly  completed  her  Project  Work  for  the  degree  of Master  in  Commerce  under 
the  Faculty  of  Commerce  in  the  subject  of  (ADVANCED  ACCOUNTANCY)  and  his 
project is entitled , “INDIRECT TAX(GST)” under  my  supervision .    
It is his own work and facts reported by her personal  findings  and investigations. 

 
 
 
 
 
 
 
 
 
 
External Examiner                                           
                                                                                              Name And  Signature  Of 

                                                                                            

                                                                                             Guiding 

                                                                                             Teacher 

 
 
Date Of Submission:   
 
DECLARATION BY LEARNER 

I  the  undersigned  MS.  PREETI  BRIJRAJ  SINGH  TOMAR  (Roll  No.  43  )  here  by, 
declare  that  the  work  embodied      in      this      project      work      titled  “INDIRECT 
TAX(GST)”    forms  my  own  contribution  to  the  research  work  carried  out 
under   the  guidance of  Prof. MS. MANYA HARDWANI is a result of my own 
research  work and  has not been previously submitted to  any other  University 
for any other Degree/ Diploma  to  this  or  any  other  University. 

Wherever  reference  has  been  made  to  previous  works  of  others,  it  has  been 
clearly indicated as such  and  included in  the bibliography. 

I,  here  by  further  declare  that  all  information  of this  document  has  been 
obtained  and  presented  in  accordance  with  academic  rules  and  ethical 
conduct. 

                                                                               Name and 
                                                                            Signature of  
   
 the learner 

Certified by 
Name and signature of the Guiding Teacher 
  
ACKNOWLEDGEMENT

To list who all have helped  me  is  difficult because they are  so  numerous  and 

the  depth  is so  enormous. 

I  would  like  to  acknowledge  the  following  as  being  idealistic  channels  and 
fresh  dimensions in  the  completion  of this project. 

I  take  this  opportunity  to  thank  the  University  of  Mumbai  for  giving  me 
chance to do this project. 

I would like to thank my Principal , Ms. Annie Antony for providing the necessary 
facilities required  for  completion  of this  project. 

I  take  this  opportunity  to  thank  our  Coordinator Prof.  Dr.  Kesar  Lalchandani, 
for  her  moral support  and  guidance. 

I would also like to express my sincere gratitude towards  my  project  guide 

Prof.  MS.  Manya  Hardwani  whose  guidance  and  care  made  the    project 
successful. 

I  would  like  to  thank  my  College  Library  ,  for having  provided  various  reference 
books and magazines related  to my  project. 

Lastly  ,  I  would  like  to  thank  each  and  every  person  who  directly  or  indirectly 
helped  me  in  the  completion  of  the  project  especially  my Parents  and  Peers 
who  supported  me throughout my  project. 

 
 
 
 
  
 
TABLE OF CONTENT 
 
 
 
 

SR NO  CONTENT  PAGE NO

1.  CHAPTER I – INTRODUCTION 8
 
1.1 INTRODUCTION 
 
1.2 SHARE ALLSCATED IN IPO 
 
1.3 REASON WHY A COMPANY DECIDED TO GO 
PUBLIC 

1.4 VARIOUS STEPS IN ORDER TO GO PUBLIC 
 
1.5 OBJECTIVE OF STUDY 
 
1.6 BENEFITS OF IPO FOR COMPANY 
 
1.7 ADVANTAGES 
 
1.8 DISADVANTAGES 
 CHAPTER 2 – RESEARCH METHODLOGY 21
 
2.1 NEED OF THE STUDY 
 
2.2 STATEMENT OF THE PROBLEM 
 
2.3 OBJECTIVES OF THE STUDY 
 
2.4 TYPES OF RESEARCH 
 
2.5 RESEARCH DESIGN 
 
2.6 SAMPLING 
 
2.7 PERIOD OF STUDY 
 
2.8 SAMPLING SIZE 
 
2.9 DATA COLLETION 

   
25 
CHAPTER 3 – REVIEW OF LITERATURE 
 
3.1 REVIEW OF LITERATURE 

   
CHAPTER 4 – DATA ANALYSIS & INTERPREATION  29 
 
4.1 DESCRIPTIVE & STATIC 
 4.2 PIE CHARTS 

  44
CHAPTER 5 – CONCLUSION & SUGGESTION 
 
5.1CONCLUSION & SUGGESTION 

48
 
CHAPTER 6 – BIBLOGRAPHY 
 
APPENDIX 

QUESTIONNARIE 
 CHAPTER 1 
INTRODUCTION: 
 
In recent years, there has been a tremendous increase in the
number of Indian firms which went public. These firms aim to
obtain funds for various purposes such as expansion,
diversification, financing their working capital needs, purchasing
an asset, debt reconstruction, etc. One of the major sources of
raising required funds for these firms is by opting for an Initial
Public Offer (IPO). Chauhan defined an IPO as a process of
selling of securities to thepublic in the primary market.

Since opening up of the economy in 1991, the Indian IPO has

witnessed various reforms, policy changes, technological
advancements and restructuring. As a result, the Indian IPO
market has been booming tremendously as the number of
companies going public and issuing equity shares in the capital
market have increased rapidly

The Capital market represents the “Primary Market” and the

“Secondary Market. The capital market has two interdependent and
inseparable segments, the new issuers (the primary market) and stock
(secondary) market. The primary market is used by issuers for raising
fresh capital from the investors by making initial public offers or rights
issues or offers for sale of equity or debt. An active secondary market
promotes the growth of the primary market and capital formation.

since the investors in the primary market are assured of a continuous

market where they have an option to liquidate their investments.

A corporate may raise capital in the primary market by way of an

initial public offer, rights issue or private placement. An Initial Public
Offer (IPO) is the selling of securities to the public in the primary
market. It is
the largest source of funds with long or indefinite maturity for the
company.

An IPO is an important step in the growth of a business. It provides a

company access to funds through the public capital market.

Book Building:
SEBI guidelines defines 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".

Book Building is basically a process used in Initial Public Offer (IPO)

for efficient price discovery. It is a mechanism where, during the
period for which the IPO is open, bids are collected from investors at
various prices, which are above or equal to the floor price. The offer
price is determinedafter the bid closing date.

As per SEBI guidelines, an issuer company can issue securities to the

public though prospectus in the following manner:

1. 100% of the net offer to the public through book building process.
2. 75% of the net offer to the public through book building process
and 25% at the price determined through book building. The
Fixed Price portion is conducted like a normal public issue after
the Book Built portion, during which the issue price is
determined.
The concept of Book Building is relatively new in India. however it is
a common practice in most developed countries.

SHARES ALLOCATED IN IPO:

There are different investor categories when it comes to IPOs.
This includes:

1. Qualified Institutional Buyers (QIBs)

2. Non-Institutional Investors (NIIs)

3. Retail Individual Investors (RIIs)

The allocation of shares differs for all the above groups in an

IPO. As an individual investor, you come under the last
category.

As an individual investor, you are allowed to invest in small lots

worth Rs 10,000-15,000. You can apply for a maximum of Rs 2
lakh in an IPO. The total demand for shares in the retail
category is judged by the number of applications received. If
the demand is less than or equal to the number of shares in the
retail category,you are offered a full allotment of shares.

When the demand is greater than the allocation, it is known as

oversubscription. Many Time an IPO can be over-subscribed five
times over. This means that the demand for shares exceeds
the supply by five times!

In such cases, the shares in retail category are offered to

investors on the basis of a lottery. This is a computerised
processthat ensures impartial allocation of shares to investors.

In Book Building securities are offered at prices above or equal to the

floor prices, whereas securities are offered at a fixed price in case of a
public issue. In case of Book Building, the demand can be known
everyday as the book is built. But in case of the public issue the
demand is known at the close of the issue.

Reason why a company decide to go

public:
1. To raise capital for growth and expansion
Every company needs money to increase its operations, create
new products or pay off existing debts. Going public is a great
wayto gain this much-needed capital for a company.

2. Allowing owners and early investors to sell

their stake to make money
It is also seen as an exit strategy for initial investors and
venture capitalists. A company becomes liquid through the sale
of stocks in an IPO. Venture capitalists sell their stock in the
company at this time to reap returns and exit from the
company.
  Greater public awareness
IPOs are ‘star-marked’ in the stock market calendar. There is
a lot of buzz and publicity around these events. This is a great
way for a company to publicise its products and services to a
new set of customers in the market.

How is an IPO issued?

The next questions that come to mind are: “How is an During

an initial public offering (IPO), a company issues its shares to
public shareholders for the first time. In the previous article, we
understood why a private company decides to launch an IPO
and how investors can benefit by investing in them.

various steps in order to go public

1. Selecting an investment bank

The first step is to select an investment bank as an underwriter.

Here, the role of an investment bank is to help the company
establish various details such as

 How much money the company hopes to raise

  The type of securities that will be offered

 The initial price per share

For a large IPO, there can be multiple investment banks

involved. In short, investment banks act as facilitators in the
IPOProcess.

2. Creating the Red Herring prospectus:

The next step of the IPO process is to create the ‘Red Herring
Prospectus’. This is done with the help of underwriters. The
prospectus includes various segments such as financial
records, future plans for the company, potential risks in the
market and expected share price range. Many times,
underwriters go on road shows in order to attract potential
institutional investors after they create the red herring
prospectus.

 SEBI approval:
The prospectus is presented to the Securities and Exchange
Board of India (SEBI). If SEBI is satisfied, it green-lights the
initial public offering (IPO) process. In addition, it also gives a
date and time for the IPO. But in case SEBI is not satisfied, it
asks for changes to be made before the prospectus can be
shared with public investors.
  Stock exchange approval:

Listing is the process where securities are allowed to deal on a recognised

stock exchange. But for that to happen, the company needs to be
approved by the exchange. For instance, the Bombay Stock Exchange
(BSE) has a listing department whose purpose is to grant approval for
securities of companies. The BSE has a list of criteria which needs to be
followed for the company to be listed on its exchange.

For example:

 The minimum issue size should be Rs 10 crore.

 The minimum market capitalization of the company

shouldbe Rs 25 crore.

 The minimum post issue paid-up capital of the

companyshould be Rs 10 crore.

Only if the company follows these criteria, it gets an approval

from the BSE.
  Subscription of shares:
Once all the formalities are done, the company makes the
shares available to investors. This is done on the dates
specified in the prospectus. Investors who wish to apply for
shares have to fill out and submit the IPO application form.

 Listing:
The shares are allotted to different investors based on the
demand and price quoted in their IPO application forms. Once
this is done, investors get the shares credited to their demat
account. In case of oversubscription (if the demand for shares
is higher than the number of shares floated by the company),
investors may not get the number of shares they originally
wanted. They may get fewer shares after a lottery is done.
Some investors may not even get any shares. In such cases,
these investors get a refund of their money.

Objectives of the study 
This study analyses both initial pricing and long run performance of 
IPOs. Therefore, the objectives of the study are: 
 
 
(1) To analyze the investors perception on Initial Public Offering (IPO) 

(2) To study the investors exposure to “fundamental analysis” and 
its impact to invest in IPO issued by Company. 

(3) To analyze the investors preference in deciding the company 
 (4) To study the preference of different investment categories of IPO. 

(5) To analyze the benefits of the investors while investing in IPO 
(6) To analyse post-IPO performance of selected companies.

(7). To  find  out  which  source  is  more  effective  in  creating  the  IPO 
awareness 

(8) To get the feedback of investors  on their preferences towards IPO 

investment. 
 
 
BENEFITS OF IPO FOR A COMPANY:

The following are the main benefits entrepreneurs seek when

theydecide to list their ventures.

Access to Risk Capital:

Most companies will find it difficult to raise equity from venture

capitalists and other big investors. It is not just about lack of
availability of potential investors.

There may be investors available but they may not be willing to

givea fair valuation to the entrepreneurial venture.

In such cases, it will be prudent to seek equity investment from

the public who might be willing to value the company more
generously.
Increased Public Image:

The public image of an enterprise also goes up once it has been

publicly listed. It gets more recognition from suppliers and
customers. Also, it becomes easier to attract companies. Moreover,
banks will also be more willing to lend to listed companies than to
closely held firms.

Stock Options:

Labour laws in India permit issuing stock to employees even in

thecase of private limited companies. But, the laws make it very
cumbersome and procedures are not very well designed to
facilitateliquidity.

In the case of public limited firms, it is very easy to set up

employeestock option plans and motivate your employees.

Facilitates Mergers and Acquisitions:

As a publicly listed company, it is much easier to carry out mergers

and acquisitions. The processes get simpler and valuations are
largely market driven. As such valuation does not remain an area of
much concern.

Liquidation:
Listing gives an opportunity to entrepreneurs to liquidate a part
of their holdings. Also, if the venture has accessed venture
capital in the past, listing gives an opportunity to venture
capitalists to liquidate all or part of their holdings.

Responsibilities:

A lot of responsibilities go hand in hand with getting listed.

Some of the major responsibilities that entrepreneurs face
when their companies get listed are discussed here.

Sharing Corporate Control:

The company can no longer be operated by the whims and fancies of

the entrepreneur. Now, there will be a board of directors, which will
be responsible to the general shareholders.

Management of the company has to be carried out transparently and

inthe best interests of the shareholders.

Sharing Financial Gain:

In a proprietorship, all profits go to the entrepreneur but in a

publicly listed firm, the entrepreneur cannot take all the profits
home. Profits have to be shared with all other shareholders through
issue of dividendsand bonus shares.
Managing Shareholder Value:

Earlier there was no way for the entrepreneur to keep track of

the daily changes in the value of his/her company. In a publicly
listed firm, there is a stock price, which indicates the value of
the firm, and this keeps changing throughout the trading day.

The entrepreneur will have to ensure that business decisions

and company performance continually serve to enhance
shareholder value.

Sharing Strategic Information through

PeriodicReporting:

Listing and reporting norms in India are amongst the strictest

in the world. The publicly listed firm has to periodically share
information relating to past performance and future plans. In
such a scenario, competitors can track the company’s strategic
intent.

GOALS OF IPO:
The primary objective of an IPO is to raise capital for a
business. Can raise additional funds in the future through
secondary round.

FUNCTION OF IPO:
An IPO allows a company to raise capital from public
investors. The transition from a private to a public company
can be an important time for private investors to fully realize
gains from their investment as it typically includes a share
premium for currentprivate investors.

ADVANTAGES OF IPO:
 Low cost financing
 No commitment of fixed returns

 No restrictions attached to financing.

 No issues such as mortgaging, hypothecation etc.
 Entire money received in one stroke without linking to
anymilestones.

 No issues with returning of finance

DISADVANTAGES OF IPO:
 Low cost financing
 No commitment of fixed returns
 No restriction attached to financing
 No issue such as mortgaging , Hypothecation etc.
 Entire money received in one stroke without linking to 
any milestones.
 CHAPTER 2 
 
RESEARCH METHODOLOGY: 
 
 
 
 

NEED OF STUDY: 
The main purpose of the study is to analyse the IPO market. It
also involves in analysing the risk in
investing in the particular f i rm. 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

behavioural approach towards the needs of the investors. It
will capture the systematic investing pattern based on the
investors mode.

The need of this study is to analyse what investors are

expecting from IPO, how they make decision according to
thesituation, 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.
 RESEARCH METHODOLOGY: 
 
This  Chapter  concentrates  on  the  research  methodology.  The 
research  design,  sampling  design,  data  collection  method,  tools 
applied for the study geographical coverage and Research Ethics are 
detailed Research id defined as human activity based on intellectual 
application  in  the  investigation  of  matter.  The  primary  purpose  for 
applied research is discovering, interpreting and he development of 
methods and systems for the advancement of human knowledge on 
a  wide variety of scientific matters  of  our  world  and  the  universe  it 
includes  not  only  method  the  research  methods  but  also  considers 
the  logic  behind  the  methods  used in  the  context  of  the  study  and 
explains why only particular method or technique has been used. 
 
 

SAMPLING DESIGN: 
 
Target population Total target population is 108 Respondents. The 
area at Kalyan. 
 
 
SAMPLING: 
 
Quota sampling was adopted by researcher Quota sampling is where 
the  researcher  ensures  that  certain  groups  of  people,  who  are 
knowledgeable  about  the  research  problems.  Are  adequately 
represented in the research through the assignment of a fixed quota 
for each sub group. 
 PERIOD OF THE STUDY: 
 
The  Period  of  study  was  from  November  2020  to  March2021  The 
study is  mainly  based  on  primary  data  collected  by  Questionnaire 
made on the findings of various researcher. The secondary data were 
collected from various sources throughout the period of this study. 
 
 
SAMPLE SIZE: 
 
108 sample were collected from the area of Thane District. 
 
 
DATA COLLECTION: 
 
This  section  discusses  the  techniques  of  collecting  primary  data  for 
the testing of the research propositions that were crafted in Chapter 
introduction  and  literature.  The  choice  of  the  data  instruments 
depends on the availability, and other resources associated with the 
gathering of the data. The questionnaire was given to the respondent 
directly  by  the students  and  was  collected  later  as  per  respondent 
preference as to giving filling the pre‐Printed form. 
 
 
STRUCTURE OF QUESTIONNAIRE 
 
The  structure  questionnaire  was  divided  into  different  sections  as 
felt  suitable  the  first  section  covers  personal  variables,  which  are 
independent based on the assumption that  there were measurable 
 differences  amount  the  levels  with  regard  to  the  perception  of 
dependent  variables  The  second  to  study  factors  section  of 
questionnaire  covers  the  factors  of  study  with  dependent  variables 
viz: 
 
 
 Trading account 
 RATE OF RETURN ON INVESTMENT IN IPO 
 DMAT account 
 Investment in IPO allotment 
 Overpriced and underpriced IPO 
 WILLINGNESS TO TAKE RISK 
 Financial market 
 High returns in limited span of time 
 Selecting IPO based on brand value 
 Market capital 
 CHAPTER 3 
REVIEW OF LITERATURE: 
 
 
 
 
The  literature  sets  out  four  key  stages  during  which  private  equity 
firm  involvement  could  add  value  to  an  investee  company  excited 
through  an IPO.  These  are:  (1)  screening  and  evaluation  processes 
which  identify  better  prospects,  (2)  governance  and  mentoring 
activities which nature investee companies and prepare them for life 
as  a  public  company,  (3)  private  equity  firms’  knowledge  and 
networks which add value around the IPO event, and (4) continued 
involvement which contributes to superior post IPO performance. 
 
 
Kakati (1999): 
examined  the  performance  of  a  sample  of  500  IPOs  that 
tapped the  market  during  January  1993  to  March  1996  and 
documents that the short run under pricing is to the tune of 
36.6% and in the long‐run the overpricing is 40.8%. 
 
 
Madhusoodanan and Thiripalraju (1997): 
In this paper, studied both short run and long run performance of 
Indian IPOs taking a sample of 1922 IPOs that went public between 
1992 and 1995. This study reported underpricing of Indian IPOs 
 consistent with international findings. In the long run, Indian IPOs 
offered positive returns which contradicted most of the 
international findings. 
 
 
Krishnamurti and Kumar (2002): 
working  on  the  IPOs  that  listed  between  July  1992  to  December 
1994 conclude a mean excess return of 72.34% and indicate that the 
time  delay  between  offer  approval  and  the  issue  opening  as  an 
important factor behind the under pricing. 
 
 
Majumdar (2003): 
he  documents  short  run  under  pricing  in  India  and  observes  after 
market total  returns  of  22.6%  six  months  after  listing.  All  the  above 
mentioned studies examined IPO performance during the fixed price 
regime as book building was not in vogue at those times. 
 
 
Ranjan and Madhusoodanan (2004): 
in  this  study  of  92  IPOs  offered  during  1999‐2003  document  that 
fixed price offers were underpriced to a larger extent than the book 
built issues though the book built issues were only figuring 24 in the 
sample  this  was  the  first  study  comparing  the  fixed  price  issues 
performance vis‐ à‐vis book built issues. 
 Fried & Hirsch, 1994: Hall & Hofer, 1993; Hisrich 
& Jankowicz, 1990; MacMillian, Siegel, & 
Subbanarasimha, 1985; Tybee & Bruno, 1984 : 
it  has  been  argued  that  private  equity  firms  begin  to  add  value  to 
their  investee  companies  even  before  the  initial  investment  takes 
place  through  considered  evaluation  and  selection  procedures. 
These procedures identify only the best prospects for investment and 
together with the imposition of governance and monitoring controls 
in  investment  contracts  (Gompers,  1945;  Sahlman,  1990)  lead  to 
enhanced prospects of survival and prosperity. 
 
 
Ritter (1998) 
investigates IPO mechanisms in several countries and finds that the 
Magnitude  of  under  pricing  is  greater  for  countries  with  fixed‐price 
offering  than  those  using  book  building  procedures.  However, 
Ljungqvist  and  Wilhelm  (2002)  use  worldwide  IPO  markets  and 
document that initial returns are positively related with information 
production. Controlling for the country factor, Derrien and Womack 
(2003) use IPO data in French stock market, which have experienced 
these  three  IPO  methods,  and  find  that  book  building  had  greater 
under  pricing  and  pricing  variance  than  other  two  methods.  These 
findings  of  a  direct  correlation  between  initial  returns  and 
information  compensation  are  consistent  with  the  theoretical 
models  of  Benveniste  and  Spindt  (1989), Benveniste  and  Wilhelm 
(1990). 
 Shah (1995) 
He documents an under pricing of 3.8% weekly excess returns from a 
study of 2056 IPOs that commenced trading between January 1991 
and April 1995 and finds that past Sensed returns have an impact on 
the under pricing. 
 
 
Daniel, Hirshleifer and Subrahmanyam (1998) 
study  the  effect  of  biased  self‐attribution  on  news  announcements 
and  find  that  short‐term  momentum  and  long‐term  reversal  are 
apparent  in  equity  markets.  Moreover,  the  trading  activities  of 
institutional  investors play  important  roles  in  IPO  markets,  and  the 
risk  preference  and  investment  sentiment  toward  an  initial  great 
allocation of shares would dominate the post‐IPO performance. 
 
 
Chemmanur and Liu (2003) 
analyze  information  acquisition  in  uniform  price  auctions  and  fixed 
price public offers. Public offers allow issuers to control price but not 
allocations,  book  building  allows  issuers  to  control  both,  and 
standard auctions do not allow issuers to control either.Chemmanur 
and Liu demonstrate how fixed price offers allow the issuer to induce 
a higher level of information acquisition but do not allow the offering 
price to reflect the information acquired 
 CHAPTER NO 4 
 
 
DATA ANALYSIS, INTERPRETATION AND PRESENTATION: 
Data analysis is a process of inspecting, cleansing, transforming, and 
modelling  data  with  the  goal  of  discovering  useful  information, 
informing conclusion  and  supporting  decision  making.  Data  analysis 
has multiple facets and approaches, encompassing diverse techniques 
under  a  variety of  names,  while  being  used  in  different  business, 
science, and social science domains In today’s business, data analysis 
is playing a role in making decision making more scientific and helping 
the business achieve effective operations. Researcher done their data 
analysis  with  the  help  of  Microsoft  Excel,  and  Microsoft  word  It 
includes the following methods of data analysis.i.e 

1) Descriptive statistics 
 
 
2) Pie chart analysis 
Gender
108 responses

Response 
 
 
 
 
50 
 
58 
 
 
 
 
 
 
Male  Female 

Particular Male Female

Response 50 58
% Of Responses 43.53% 54.29%

INFERENCE:

As per this survey 43.53% people response male and the 54.29%
people response female. It is seen that most of the people 
response female 
AGE
108 Responses

Responses 
 
5 
19 
21 
 
 
 
 
 
 
 
63 
 
 
 
Below 20Years  20‐ 40 Years  40‐60 Years  60 & Above 

Below 20- 40 40-60 60 &

Particular 20Year Years Years Above

Responses 19 63 21 5
% Of
Response 17.59% 58.33% 19.44% 4.62%

INFERENCE:

As per this survey people age response below 20 and 20‐40 age people 
are17.59% & 58.33% respectively. people age in 40‐60 are 4.62% 
respectively. 
QUALIFICATION
!08 Responses

Responses 
 
 
14 
 
 
43 
 
26 
 
 
 
 
25 
 
 

Graduate  undergraduate  Post graduate  Professional 

Post 
Particular  Graduate  undergraduate graduate Professional

Responses  43  25  26  14 

% Of 
Responses  39.81%  23.14%  24.07%  12.96% 

INFERENCE:

As per this survey 23.14%people response undergraduate, and the 
39.81% people response graduate 24.07% people response post 
graduate, and also 12.96% People response professional. It is seen 
that Most of the people response graduate range with the 39.81%. 
INCOME
108 Responses

Responses 
 
 
 
 
 
 
 
 
 
 
Below 1lakh  1Lakh‐3Lakh  3lakh‐5lakh  5 lakh & Above 

5 lakh & 
Particular  Below 1lakh 1Lakh‐3Lakh 3lakh‐5lakh  Above 
Responses  45  27  22  14 
% Of 
Responses  41.66%  25.00%  20.37%  12.96% 

INFERENCE:
As per this survey 41.66% people response below‐1 Lakh and 25.00% 
people response 1 Lakh ‐ 3 Lakh and 20.37% people response 3 Lakh ‐5 Lakh. 
5 Lakh ‐ above people response 12.96%. it is seen that most of the response 
below‐1 Lakh 
TRADING ACCOUNT
108 Responses

TRADING ACCOUNT 
 
 
 
 
40 
 
 
 
 
 
68 
 
 
 
 
 
 
 
Male  Female 

Particular  Male  Female 

Responses  68  40 
% Of Responses  62.96%  37.03% 

INFERENCE:
As per this survey 43.53% people response male and the 54.29%
people response female. It is seen that most of the people response 
are males 
DMAT ACCOUNT PREFERNCE

Response 
 
 
 
 
 
 
 
 
 
 
Zerodha  Upstox  Groww  Other 

Particular  Zerodha  Upstox  Groww  Other 

Response  38  32  27  11 

% of Responses  37.03%  46.29%  25%  10.18% 

INFERENCE:
As per this survey 37.03 % responses for zerodha. 46.29% and 25
% responses for upstox and zerodha respectively. 10.18%
responses forothers.
APPLICANT ON IPO LISTING

Response 
 
 
 
 
50 
 
58 
 
 
 
 
 
 
Men  Women 

Particular  Men  Women 

Response  58 50

% of Responses  53.70% 46.30%

INFERENCE:
As per this survey 53.70 % men and 46.30 % women responses this
survey. . It is seen that most of the people response are males 
 LEVEL OF KNOWLEDGE ABOUT IPO 
 

图表标题
35  35.00% 

30  30.00% 

25  25.00% 

20  20.00% 

15  15.00% 

10  10.00% 

5  5.00% 

0  0.00% 
0‐20%  20‐40%  40‐60% 60‐80% 80‐100%
1  2  3 4 5

RESPODANT PERCENTAGE

 
 
 
 
 
 
 
 
Sr no  FACTORS  RESPODANT PERCENTAGE 
1  0‐20%  32 29.62% 
2  20‐40%  22 20.37% 
3  40‐60%  15 13.88% 
4  60‐80%  20 18.51% 
5  80‐100%  19 17.59% 
 
 
INFERENCE:
As per above survey, It is seen that most of the people response 
between 0‐20% and least between 80‐100% respectively. It shows 
that people less aware about IPO. 
 WILLINGNESS TO TAKE RISK 
 

70  70.00%
62
60  60.00%
57.40%
50  50.00%

40  40.00%

30  24 30.00%
22 
20  20.37%  22.22%    20.00%

10  10.00%

0  0.00% 
CONSERVATIVE  MODERATE AGGRESSIVE 
1  2 3

RESPODANT PERCENTAGE

 
 
 
 
Sr no  FACTORS  RESPODANT PERCENTAGE 
1  CONSERVATIVE 22 20.37% 
2  MODERATE 62 57.40% 
       
3  AGGRESSIVE  24  22.22% 
 
 
 

INFERENCE:
As per this survey 20% people respondents are
CONSERVATIVE. 57.40% are MODERATE and 22.22% are
AGGRESSIVE. It is seen that most of the people response are 
MODERATE. 
 SOURCES OF INFORMATION REGARDING IPO 
 

 
60 
 
50 
 
40 
 
30 
 
20 
 
10 
 
0 
BY BROKERS  BY MEDIA WORD OF MOUTH OTHER 
1  2 3 4 

RESPODANT PERCENTAGE

 
 
 
 
 
 
 
 
Sr no  FACTORS  RESPODANT PERCENTAGE 
1  BY BROKERS 24 22.22% 
2  BY MEDIA  52 48.14% 
3  WORD OF MOUTH 14 12.96% 
4  OTHER  18 16.66% 
 
 
 

INFERENCE:
As per this survey, By broker responses 22.22%, By media responses
48.14%, Word of mouth responses 12.96% and others responses 16.66%
respectively. It is seen that most of the people response are by media. 
 TOTAL EXPERIENCE ABOUT INVESTMENT IN 
IPO 
 

 
50 
45 
40 
35 
30 
25 
20 
15 
10 
5 
0 
below 1 yr  below 2 years 2‐5 years more than 5 years

Response % of Responses

 
 
 
 
Particular  below 1 yr  below 2 years 2‐5 years more than 5 years
Response  47 30 23 8 
 
% of Responses  43.51% 27.77% 21.29% 7.40%
 
 
 

INFERENCE:

As per this survey, below 1 year responses 43.51%, below 2 years

responses 27.77%, between 2-5 years responses 21.29% and more
than 5years responses 7.40% respectively. It seen that below 1 year is
more respondents.
 DO YOU CHECK BRAND OR REPUTATION 
OF COMPANY BEFORE INVESTING IN IPO 
 

Response 
 
 
 
 
 
 
 
 
 
 
YES  No  Maybe 

 
       
Particular  YES  No  Maybe 
 
Response  46 20 42
 
% of Responses  42.59% 18.51% 38.88%
 
 
INFERENCE:
As per this survey 42.59% people response are yes and the 18.51% 
people response are no, 38.88% people response are maybe. As 
compare highest responses to yes with the statement. It shows that 
people check brand value and reputation before investing in IPO 
 
 

DO YOU INVEST IN OVERPRICED IPO

Responses 
 
 
 
40 
50 
 
 
 
 
 
18 
 
 
 
YES  No  Maybe 

Particular  YES  No  Maybe 

Responses  50  18  40 

% of Responses  46.29%  16.66%  37.03% 

INFERENCE:
As per this survey 46.29% people response are yes and the 16.66% 
people response are no, 37.03% people response are maybe. As 
compare highest responses to yes with the statement. It shows that 
people invest in overpriced IPO . 
 
 
 

INVESTING IN IPO IS SAFE

Response 
 
 
19 
37 
 
 
20 
 
 
 
32 
 
 
Strongly agree  agree  Neutral  Disagree 

Particular  Strongly agree  Agree  Neutral  Disagree 

Response  37 32 20 19

% of Responses  34.25% 29.62% 18.51% 17.59%

INFERENCE:
As per this survey , 37% strongly agree ,29.62% agree ,
18.51%neutraland 17.59% disagree . it shows that people feels that
investing IPO is safe.
ARE YOU SATISFIED WITH
IPORETURNS

Response 
 
 
13 
 
43 
20 
 
 
 
 
32 
 
 
 
Strongly agree  agree  neutral  Disagree 

Particular  Strongly agree agree Neutral Disagree

Response  43 32 20 13
% of 
Responses  39.81% 29.62% 18.51% 12.03%

INFERENCE:
as per survey ,38.81% strongly agree and 29.62% ,18.51% says neutral
.while 12.03% disagree . it shows that people more likely agree and
satisfied with IPO returns .
 CHAPTER NO 5

Conclusion:
“Tomorrow is another day “, this applies to the corporate as well as 
the individual almost equally. As the need of the people is changing 
so  is  changing  the  investment  habits  of  the  people  and  this  has 
brought in a spate of new products and schemes where people can 
invest. IPO is a first sale of shares to the public by any company. The 
objective of IPO is to ensure that raising the capital of the company 
and create awareness of the company. 

If investor invests only in IPO then his purpose is to cut the profits on 
the listing of the shares. Investors not interested in company should 
sell  their shares  on  the  day  of  the  listing.  So  Brand  image  of  the 
company  specially the  image  of  the  company  wants  to  increases, 
Indian investors have faith in the name of the company because the 
situation of world market were hostile and due. 

IPO  is  basically  would  be  made  by  a  company  primarily  in  case  it 
requires funds.  So  for  companies  in  growth  stage  it  is  looking  at 
expansion  and  diversification.  In  my  study  I  verified  that  IPO  is  suit 
for  institutional  investors  and  business  peoples  to  begin  making 
contact with investment 
banks, attorneys, and accountants in advance of planning an IPO. He 
or  she  must  be  well  informed  on  the  risk  and  return  attributes  of 
these  options.  Initially  to  make  IPOs  more  attractive,  companies 
must  offer  their  IPOs  at  low  rate;  this  will  helps  to  encourage  the 
investors. 

To be a successful investor they need two main things the knowledge 
and right trading platform, however in view of the fact that the risks 
are the  part  of  any  investment,  this  project  also  gave  me  a  good 
Exposure  on IPO  market  and  clear  details  about  the  recently  listed 
IPOs and how they attract their customers in the market 
 
 
 
 
 
 

SUGGESTIONS

1. Identify the company to in which the IPO investment has to be made. 

2. Investors  should  have  the  awareness  of  the  procedures  before 

applying for IPO. 

3. Identify the risk factor prevailing in IPO before investment. 

4. Identify the source for collecting information regarding IPO.   

5. The policies of the company should be clear such that even 
ordinary people should be able to know about IPO’s. 

6. Organize program for investors and educate them the 
opportunities and new option available in the IPO market. 

7. Investors  must  understand  clearly  the  objectives,  schemes  and 

services by the IPO. 

8. Read the section about underwriters, and note which brokerage 
firms are participating in the IPO. 

9. Be prepared for rejection. Most brokers let only their top clients 
buy into an IPO. 
10. Find  out  whether  online  discount  brokers  are  playing  a 
distributor  role  in  the  IPO.  If  so,  they  may  be  willing  to  let  you  buy 
shares if you will establish an account 

11. Tell the broker how much you plan to invest in the IPO.   

12. Keep  an  eye  on  Web  sites  as  the  expected  offering  date  nears. 
You  will  learn  the  price  range  in  which  the  company  plans  to  sell 
shares and the date the offering is expected to take place.   

13. Company  should  take  in  account  the  world  market  scenario 
before  making  any  offering  to  public.  The  customer  should  also  be 
rational while investing in IPOs. 

14. Proper  allocation  of  fund  should  be  done  by  the  investor  to 
ascertain what quantum of fund is sufficient for investment 
 
 

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APPENDIX:

QUESTIONNARIE

TITLE: A STUDY ON INITIAL PUBLIC OFFERING

PERSONAL DETAILS:
 Name of respondent
   Gen
der
1.Mal
e

2. Female

 AGE:
1.below
202. 20-
40 3.40-
60

4. above 60
  QUALIFICATION:
1. Below graduate
2. . Graduate
3. Post graduate
4. Professional
5. Others

 INCOME:
1.Below-100000

2.100000-300000

3.300000-500000

4.500000 and above

How Often do you use online trading account?

a. Weekly

b. Daily

c. Monthly

d. Yearly

2) Are you aware of initial public offering (IPO)?

a. Yes

b. No
3) Are you analyse company before applying for IPO?

a. Yes

b. No

c. Maybe

4) Do you think investing in IPO is safe and secured?

a. Yes

b. No

c. Maybe

5)Which of the following trading account you use for applying IPO?

a. zerodha

b. upstox

c. Groww

d. others

6) applying for IPO is better option than long term investment?

a. Highly agrees

b. Agree

c. Neutral
 d. Highly disagrees

e. Disagree

7) Do you think investing in IPO is profitable?

a. Yes

b. No

c. Maybe

8) What is your overall opinion about applying for IPO?

a. Excellent

b. Good

c. Average

d. Poor

9) Based on your satisfaction level will you recommend this service

toyour friends/relatives?

a. Yes

b. No

10)For what purpose you will apply for IPO?

 a. long term investment

b. high returns in short period of time

11. from where did you hear about recent IPO news

a. by broker

b. by media

c. word of mouth

d. other

12) what factors do you choose before investing in IPO?

a. self-

analysis b

word of

mouth

c. analysts

d. other