Affiliated to

University of Mumbai

Revised Syllabus for

Programme:
B.Com
Financial Markets
Semester VI

Under Choice Based Credit System

Academic Year 2022-2023

PROJECT
ON
A STUDY ON IPO IN LAST TWO YEARS IN FINANCE INDUSTRY

1
 PROJECT REPORT
ON
A STUDY ON IPO IN LAST TWO YEARS IN FINANCE INDUSTRY

SUBMITTED BY
VIGNESH RAJKUMAR KHANDELWAL
TDFM036A
TYBCom (Financial Markets)

(SEMESTER VI)

UNDER THE GUIDANCE OF

ASST PROF YUVATI NANDU

ACADEMIC YEAR

2022 - 2023

2
 DECLARATION

I, Vignesh Rajkumar Khandelwal Roll no-36 the student of T.Y.BCom Financial

Markets Semester VI (2022 - 2023) hereby declare that I have completed the
Project on A Study on IPO In Last Two Years in Finance Industry.
I also declare that this report which is the partial fulfilment of the requirement for
the degree of T.Y.BCom Financial Markets of KES SHROFF COLLEGE OF
ARTS AND COMMERCE, is the result of my own efforts with the help of
experts.
 

3
 CERTIFICATE

This is to certify that Mr. Vignesh Rajkumar Khandelwal of Third

Year B.Com Financial Markets Semester VI (2022 - 2023) has
successfully completed the Project / Internship on A A Study On IPO In
Last Year Financial Year as per the guidelines of KES’ Shroff College of
Arts and Commerce, Kandivali(W), Mumbai-400067.

 
Head of Department Guide
Dr. Vaibhav R. Ashar Asst. Prof. Yuvati Nandu

Principal External Examiner

Dr L Bhushan

4
 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 internship.

I take this opportunity to thank the KES SHROFF COLLEGE OF ARTS AND
COMMERCE (AUTONOMOUS) for giving me chance to present this report.

I am thankful to KES SHROFF COLLEGE OF ARTS AND COMMERCE

(AUTONOMOUS) and Asst. Prof. Yuvati Nandu, for providing me
opportunity to work on the A Study On IPO In Last Year Financial Year with
their company and gaining work experience

I would like to thank my Principal, Dr. Lily Bhushan for providing the support
required for the internship.

I take this opportunity to thank our Guide Asst. Prof. Yuvati Nandu, for her
moral support and guidance.

Lastly, I would like to thank each and every person who directly or indirectly
helped me specially my parents and peers who supported me throughout my
project.

5
 LIBRARY ATTENDANCE CERTIFICATE

This is to certify that Mr.Vignesh Rajkumar Khandelwal of third year B.Com

Financial Markets having Roll No. 36 , division A has successfully
completed his /her minimum hours of attendance in the library to complete
the 100 marks project on topic titled A STUDY ON IPO IN LAST TWO YEARS IN
FINANCE INDUSTRY

Sign Sign Sign

Librarian Project Guide Head of Department

6
 INDEX
Contents
CHAPTER 1: INTRODUCTION................................................................................................9
1.1 EXECUTIVE SUMMUARY …………………………………………………………9
1.1.1 FINANCIAL MARKETS …………………………………………………………..9
1.1.2 CAPITAL MARKETS………………………………………………………………10
1.1.3 PRIMARY MARKETS …………………………………………………………….11
1.1.4. MEANING OF INITIAL PUBLIC OFFER(IPO).................................................12
1.1.5 IPO IN FINANCIAL INDUSTRY ………………………………………………...14
1.2: OBJECTIVE OF STUDY.........................................................................................16
1.3 METHDOLOGY OF THE STUDY …………………………………………………18
1.3.1: DATA COLLECTION..........................................................................................12
1.4 SCOPE OF THE STUDY …………………………………………………………...19
1.5 LIMITATION OF THE STUDY...............................................................................20
CHAPTER-2....................................................................................................................21
REVIEW OF LITERATURE..........................................................................................21
CHAPTER 3....................................................................................................................24
3.1 IPO IN LAST TWO YEARS OF DIFFERENT INDUSTRIES.................................24
3.2 HIGHEST PAYING IPO OF 2020............................................................................34
3.3 HIGHEST PAYING IPO OF 2021............................................................................37
CHAPTER 4 …………………………………………………………………………….39
RESEARCH METHODOLOGY.....................................................................................39
4.1- INTRODUCTION ………………………………………………………………….39
4.2- RESEARCH UNIT …………………………………………………………………39
4.3- RESEARCH TECHIQUE …………………………………………………………..39
4.4-STATISTICAL TOOLS AND TECHNIQUE...........................................................40
4.4.1- SECONDARY DATA ……………………………………………………………40
4.5- VISULASTION & DATA INTERPRETATION …………………………………..41
4.6- SWOT ANALYSIS..................................................................................................43
CHAPTER 5 …………………………………………………………………………….46
5.1 DATA INTERPRETATION......................................................................................46
5.1 FINANCIAL COMPANIES ISSUSED IPO IN LAST TWO YEARS …………46
5.1.1 ANGLE BROKING.................................................................................................
5.1.2 UTI ASSET MANAGEMENT...............................................................................52
5.1.3 ANAND RATHI.....................................................................................................58
5.1.4: ADITYA BIRLA SUN LIFE.................................................................................62
CHAPTER 6………………………………………………………………………………68

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FINDINGS AND RECOMMDECTION ………………………………………………...67
6.1 INTRODUCTION....................................................................................................67
6.2 MAJOR FINDINGS…………………………………………………………………67
6.3 SUGGESTION.........................................................................................................69
6.4 CONCLUSION………………………………………………………………………71
6.5 BILOGRAPHY ……………………………………………………………………...72

8
 CHAPTER 1

INTRODUCTION ABOUT THE TOPIC

1.1 EXECUTIVE SUMMARY

1.1.1 FINANCIAL MARKETS

A Financial market is a market in which individual people trade in financial securities and
derivatives at low transaction value of money. Financial markets play a significant role in
facilitating a sleek operation of capitalist economies by allocating resources and permit to
form liquidity for business organizations and entrepreneurs. In a financial market, the stock
market permit investors to buy and sell and trade publicly companies share. The issue of new
stocks is first offered in the primary stock market also called IPO, and stock securities trading
happens in
the secondary market.

FUNCTIONS OF FINANCIAL MARKETS

Listed below are the necessary functions of the financial market:

 It mobilises savings by commercialism them in the best ways.

9
  It assists to make a decision on the securities value by interaction with the investors and
looking on the demand and supply perceiving in the markets.
 It provides liquidity to bartered assets.
 Financial markets facilitate the transfer of real economic resources from lenders to final
borrowers.
 Financial markets permit lenders to earn interest or dividend on their surplus funds, therefore
contributing to the improvement of the individual and the value global income.

PARTICIPANTS OF FINANCIAL MARKETS

Following the Major Participants in Financial Markets:

 Insurance Firms
 Finance Firms
 Bankers
 Merchant Bankers
 Companies/Firms
 The Individual traders
 Government
 Regulators

1.1.2 CAPITAL MARKET

India contains an honest number share of the global economy and therefore the capital markets or the
share markets of India form a considerable portion of the global economy. The capital market is
significant to the monetary system.

10
 The capital Markets are of two main types. The first is Primary markets and the other is secondary
markets. In a primary market, organisational firms, governments or public sector institutions can raise
capital through bond issues. Company can sell new stock through an initial public offering (IPO) and
raise funds through that. Thus in the primary market, the party directly buys shares of a company and
thereby invest in the firm. The process of selling new shares to investors is called underwriting.

In the Secondary Markets, the shares, stocks and bonds etc. are bought and sold by the customers.
Examples of the secondary capital markets in India include the stock exchanges like NSE, BSE etc.

1.1.3 PRIMARY MARKET

Primary market is a new issues market the funds are raised through the sale of new securities flow
from the buyers of securities to the issuer of securities. The financial institutions play a key
important role in moving funds from saving sector to the investment sector, public issue is an
important part of primary market. Public issue can be diffident as "Sale of bonds of stocks for
general public. The securities are sold to the lakhs of investors under a formal contract over seen by
the government authorities. The required funds could be raised privately to a limited member of
investor this process is known private placements.

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 OBJECTIVES OF PRIMARY MARKET

 To Promotion of New project

 To Diversification

 To Capitalization of reserves

 To Regular working capital requirement

SORCES OF RAISING FUNDS IN PRIMARY MARKET

 Issue of equity at par or premium

 Issue of bones shares

 Issue of debentures

 Issue of bonds by public sector undertaking

 Issue of cumulative preference shares

1.1.4 INITIAL PUBLIC OFFER (IPO)

An initial public offering (IPO) refers to the method of offering shares of a private corporation to
the general public in a new stock issuance. An IPO allows a company to raise funds from public
investors. The transition from a private to a public company can be a crucial time for private
investors to fully realize gains from their investment because it usually includes a share premium
for current private investors. Meanwhile, it also allows general public investors to participate in the
offering.

12
13
IPOs are often issued by smaller, younger companies seeking capital to expand, but can also be
done by large privately owned companies looking to become publicly traded. When a company
lists its securities on a public exchange, the money paid by investors for the newly- issued shares
goes directly to the company (in contrast to a later trade of shares on the exchange, where the
money passes between investors). An IPO, therefore, allows a company to tap a wide pool of
investors to provide it with capital for future growth, repayment of debt or working capital. IPO can
be used as both a financing strategy and an exit strategy. In a financing strategy the main purpose
of the IPO is to raise funds for the company. In an exit strategy for existing investors, IPOs may be
used to offload equity holdings to the public through a public issue.

A company selling common shares is never required to repay the capital to investors. Once a
company is listed, it is able to issue additional common shares via a secondary offering, thereby
again providing itself with capital for expansion without incurring any debt. This ability to quickly
raise large amounts of capital from the market is a key reason many companies seek to go public

THE PROCESS OF IPO

An Initial Offer comprehensively consists of two parts. The primary i.e. The pre-marketing part of
the offering, while the second is the initial public offering itself. When a company wants to invest
in an IPO, it will advertise to underwriter by private bids or it can also make a public statement to
generate interest and capital.

The underwriters lead the IPO process and are chosen by an organisation. A company may select
one or several underwriters to manage different components of the IPO process collaboratively.

14
 The underwriters are involved in every aspect of the IPO due diligence, document preparation,
filing, marketing, and issuance

THE ADVANTAGES AND DISADVANTAGES OF IPO

Advantages
One of the main advantages is that the company gets access to investment from the entire investing
public to raise capital. This leads easier acquisition deals (share conversions) and increases the
company’s exposure, prestige, and public reputation, which can help the company’s sales and
profits. Increased transparency that comes with required quarterly reporting can help a company
receive more favourable credit borrowing and raise capital terms than a private company.

Disadvantages
Companies may face several disadvantages to going public and may potentially choose alternative
strategies. Some of the major key disadvantages include the fact that IPOs are expensive, and the
costs of maintaining a public company are ongoing and usually unrelated to the other costs of
doing business.

Rigid rules and regulations and governance by the board of directors can make it more complicated
to retain good managers willing to take risks. Fluctuations in a company's share price can be a
distraction for management which may be compensated and evaluated based on stock performance
rather than real financial results. Also, the company becomes required to disclose financial,
accounting, tax, and other business information. During these disclosures, it may have to publicly
reveal vital information and business methods that could be helpful to competitors.

THE PURPOSE OF IPO

An IPO is essentially a fundraising method used by large organisations, in which the company
sells its shares to the public for the first time.Byan IPO, the company’s shares are traded on a stock
exchange.

Some of the main reasons for undertaking an IPO include:

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 Raising capital from the sale of the shares, providing liquidity to company founders and its
shareholders and early investors, and taking advantage of a higher valuation.After the issue,
company’s shares should be listed on a stock exchange for secondary trading. The process
of the first issue to the public by an unlisted company is called an Initial Public Offering
(IPO).
 The issue to the public is done in primary market and listing is done in secondary market.
The primary market is a market of new securities being issued by the issuer to the
investors, while secondary market is a market of existing securities where two these are
transacted among the investors.

A new issue to the public has no history of trading on a stock exchange. Investments in the
primary market therefore involve higher risk than those in the secondary market. The regulator of
primary market works with taking continuous steps to safeguard the interest of the investors in the
primary market. The Fundamental reason behind IPO for a company is to raise substantial amount
of funds by spreading the risk of investment among large number of investors. By going public,
entrepreneurs thus help facilitate the acquisition of their company for a higher valuation than what
they would get from an outright sale. Thus they get enough incentive to venture into other avenues
with substantial funds. Once the firm becomes public it attracts increased scrutiny which indirectly
allows company to issue debt at lower rates. Despite sublime sense of ownership of the company,
the main impetus for the investors to put their hard earned money for buying shares in time of IPO
is to get better return. Return is either in the form of capital gain or dividend yield. Investors buy
shares in time of IPO in anticipation that after the IPO, when company will be listed, the prices of
the shares will go up.

We have seen the companies which have been funded by Venture Funds are in the later stage bound
to go for IPO so that Venture Funds can sell their shares and move out. Selling shares to a large
number of investors in the primary market has the advantage that each investor is fully diversified
and has almost no bargaining power with the entrepreneur. Through public offerings the company’s
shares become more marketable simply because of entry of increasing number of buyers and
sellers, interested to trade the company’s shares in the secondary market. This places the firm in a
better position to raise relatively additional capital and on favourable terms.

The increased liquidity also makes it possible for the companies to offer stock-based incentive and
compensation to attract best employees and improve employee productivity. It is also evident that
16
 the company is said to benefit significantly from the prestige associated with being a listed
company as well as from the publicity associated during IPO, which can improve their credibility
with suppliers and customers, resulting in better credit terms and more pricing leverage. Trading
on stock exchange also makes mergers and acquisitions easier because stock can be part of the
deal.

They also expect that the financial performance of the company after the public offerings will also
improve to safeguard their investment. Investing in IPOs is a way to invest in the future. Going
public may also involve some hidden risks mostly in the form of share price volatility and decline 4
in share value. More often than not, it is difficult for individual investors to have in depth
knowledge of these companies. Ideally, stock prices should match the present value per share of the
company. However, for IPOs to attract sufficient interest, the issuer must leave enough “money on
the table” to compensate investors for the uncertainty about the security’s value. That is why apart
from direct costs (e.g. underwriting fees, information disclosure fees, etc.), indirect costs to
compensate for this unknown risks adhering to the offering play a particularly important role in
IPO pricing.

1.1.5 IPO IN FINANCIAL INDUSTRY

A large portion of this sector generates revenue from mortgages and loans, which gain value as
interest rates drop. The health of the economy depends, in large part, on the strength of its financial
sector. The stronger it is, the healthier the economy. A weak financial sector typically means the
economy is weakening.

Many people equate the financial sector with Wall Street and the exchanges that operate on it. But
there's much more to it than that. The financial sector is one of the most important parts of many
developed economies. It is made up of brokers, financial institutions, and money markets—all of
which provide the services needed to help keep Main Street functioning every day.

In order for an economy to remain stable, it needs to have a healthy financial sector. This sector
advances loans for businesses so they can expand, grants mortgages to homeowners, and issues
insurance policies to protect people, companies, and their assets. It also helps build up savings for
retirement and employs millions of people.
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 1.2 OBJECTIVES OF THE STUDY

The objectives of my work is:

1. To Study the price behavior of the IPOs on the date of listing and on a subsequent date.

2. To understand the nature of pricing of the IPOs in Indian Primary Market immediately after listing

3. To study whether prior movements of general stock markets predict the first day returns of
IPOs in India or not

4. To understand the nature of pricing of the IPOs in Indian Primary Market immediately after
listing

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1.3 METHODOLOGY USED TO COLLECT DATA

For the purpose of our study, secondary data was utilized. Annual Reports, Prospectus, etc. of the
sample companies were verified. Also, numerous articles available in journals, websites,
newspapers and e-papers were considered. Some of the books, which are available in the market,
were also consulted while carrying out the research work. The websites of the companies and the
regulatory authorities were very good source of relevant information. In addition to this,
information from available research work was taken. A sincere effort was made by me in order to
get hold of as much data as possible so that the quality of the research work is good and is of
relevance to researchers, investors, regulatory bodies and management.

Regarding selection of the companies, we concentrated on the IPOs offered during two financial
years starting from April, 2020 in Indian primary market. The IPO issuing companies issue equity
shares in three different ways, namely., collection of fund by ‘fresh capital’ or ‘offer for sale’ or
‘fresh capital cum offer for sale’.

Prime Data base reports 100 companies got listed during the study period, 2020-22 in the Indian
Stock Exchanges. Since the number is very high, it will be difficult to analyse all of those IPOs. So
in this study, a sample of 4 IPOs have been selected on Financial basis out of total number of IPOs
listed in the National Stock Exchange (NSE) of India during the financial year April 2020 to March
2022. All these IPOs followed book building method. During this period total 102 IPOs were listed
in NSE and BSE. But out of those, 2 IPOs were not selected because either they were withdrawn or
their shares were not listed or traded on NSE. So the total effective number of IPOs remained 100
or we can say that the population size is 100.

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1.4 SCOPE OF THE STUDY

Our study analysis the short-run performance of Indian IPO and we still consider that there are
much scope for future study. Thus, to study the scope further upon the present topic, the suggested
research avenues can explore the following:

(i) The future studies can analyse both the short-run performance and the long-run performance of
the IPOs over a period of years to give best results.

(ii) Another area of study can be to identify that the total returns and abnormal returns of the
IPOs are affected by the pattern between the institutional organisations and individual investors.

(iii) The future studies can also examine that the IPO performance in short run and in long run is
associated with the fixed price offerings or book building methods of allocation in India and
which helps in giving better returns on investments to the various investors.

(iv)The study also tries to identify that there exists any relationship between the various factors
affecting the IPO under-pricing and Future Public Offers in India.

(v)Also, the future studies can identify that the factors such as necessary disclosure at the time
of IPOs, process followed for IPO allotment, SEBI guidelines, etc. affect the pricing, valuation
and performance of the IPOs in India.

(vi)Another area of study for future is be the performance of the IPOs in both the stock
exchanges, i.e., Bombay Stock Exchange and National Stock Exchange to give a broader
perspective on the IPOs performance in India.

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1.5 LIMITATIONS OF THE STUDY

This study has many important contributions to the existing literatures and add value to various
participants of the IPO market. Despite having wide scope and exhaustive study, our research
regarding the performance of Indian IPOs in short run has the following limitations:

 The research uses event study mechanism to analyse the total returns and abnormal returns
on 1st day, 5th day, 9th day, 15th day and 30th day of the investment. The period of study
considered is rather too short and perhaps a longer study period could give much
comprehensive results and better understanding to the various participants in the IPO
market.
 The study only considered the companies which went public during the period between April
2020 and March 2022. However, if the study would have considered more IPOs over a longer
period of time so that the study could have produced much better results and contributed more
to the existing literatures.
 The study tried to look into the total returns and abnormal returns of the IPOs are affected by
the four factors namely the promoter’s holdings post-issue, the age of the organisational firm,
the ownership factor of the company and issue size of the IPO. However, the study could
have used many more factors such as type of industry to which these companies belonged to,
the allocation pattern between the various investors, the market conditions like bullish and
bearish trends, etc. to give much more enhanced and satisfactory results.

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 CHAPTER TWO

LITRATURE OVERVIEW

1. Krishna Chandra Pandey, September 15, 2019, Initial public offerings (ipos) and the

price behaviour.

In this research the behaviour of market i.e. the supply and demand affecting the price is explained.

When a company’s ipo is launched the price at its launch and the price when it enters into

secondary market differs due to market, government policies, banks, traders, etc.

There are year wise growth in the investment in primary markets.

The research explains about the security buyers and sellers in the market, type of shares, debentures,

role of primary and secondary markets in India

2. ManeNagnnathAdinath, April 3,2019, Trend Analysis of Indian Stock Market with

Reference to Initial Public Offer

This research explains about the Initial public offer, primary markets, and different type of issues in

primary market in India. There are different kind of investors i.e.Retail Individual Investor (RIIs),

Non-Institutional Investors (NIIs), Qualified Institutional Buyers (QIBs) and different type of

issues and the role of SEBI in the market. The researcher has studied the research with both

primary and secondary data on the trend analysis

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 14 Dr.Radhe S. Pradhan, 2016, Examination of stock market from 2005-2011 examined 61

IPOs from Nepalese stock market for the period 2005 to 2011. They analyse the IPOs for 36 months

after listing day the maximum initial return documented 1250 whereas average initial return were

213.13% they noted that there is positive impact of determinants of IPOs over the initial return firm,

size, reputation of issue manager, subscription rate, have positive impact on initial return, where as

there is negative relationship between issue size and first day return which consistent with the

international evidences of under-pricing

15. Sikha Bhatia, 2012, Evaluation on the performance of 648 IPOs issued on the BSE

from June 1992 to March 2002 Evaluation the performance of 648 IPOs issued on the BSE

from June 1992 to March 2002 over a 60 months subsequent to listing for the purpose of

analysis they used CAR (cumulative abnormal return) and BHAR (Buy and hold abnormal

return) the result indicated CAR of 116.87 Percent and BHAR 109.83 Percent they also state

that Indian IPO proves very high abnormal raw return in long run. They also examined after

market performance of IPOs on the basis of initial return, size, issue price, age, year of issue,

industry and subscription. They used multiple regression analysis for various factors that can

affect the performance of IPO and find out that initial return, market return and issue price

affect the IPO Performance.

23
16. B. Ramesh and PournimaDhume, 2015, Evaluation of 150 IPOs listed in NSE

evaluated the sample of 150 IPOs, which are listed in National Stock Exchange and floated

their IPOs in Indian capital market during May 2007 to December 2011. In this study they try to

measure performance in short and long run of floatation of IPOs. They have taken the time

period of listing day, 1 month, 3 month and 6 months after listing as short run performance

measured. Whereas for long run performance analysis 1, 2 and 3 year after listing day are

considered. They found 240.96% raw return on listing day and -36.81% negative returns over a

period of 3 year after listing. At last they concluded that the overpricing existed in Indian

primary market. And the extent of overpricing in long run is more prevent in India.

24
 CHAPTER 3

3.1IPO IN PAST TWO YEARS OF DIFFERENT INDUSTRIES

In 2020 there were total 16IPOs launched, and I have studied on 5 IPOs.

The IPOs launched were:

1) Antony waste handling cell limited

It was incorporated in 2001, Antony Waste Handling Cell Limited is engaged in offering Municipal
Solid Waste (MSW) Management services. The service range of the company includes solid waste
collection, transportation, processing and disposal services to Indian municipalities. It has in-house
expertise in landfill construction and management sector. This IPO was launched on BSE and NSE
both. The opening date was Dec 21, 2020 and closing date was Dec 23, 2020.The lot size was 47.
The issue price was 315. The issue size was 300.

25
2) Mrs. Bectors Food Specialities Limited

Incorporated in 1995, Mrs. Bectors Food Specialities Ltd is one of the leading companies in the
premium bakery segment and premium and mid-premium biscuit segment in North India. The
company's product portfolio mainly consists of two categories of products; Biscuits (cookies,
creams, crackers, digestive, etc.) and Bakery products (bread, buns, pizza bases, cakes, etc.).This
IPO was launched on BSE and NSE both. The opening date was Dec 15, 2020 and closing date was
Dec 17, 2020.The lot size was 50. The issue price was 288. The issue size was 540.

26
3) Burger King India Limited

Burger King is the India's fastest growing quick service restaurant chains. It is the second largest
fast food burger brand with having 216 Burger-King restaurants and 8 Sub-Franchised Burger King
restaurants. It has an exclusive right to establish, develop, and operate Burger King branded
restaurants in India. It aims to cater to the Indian tastes and preferences through adding new food
offerings to its product portfolio. Company establishes its branches in high traffic areas in key
metropolitan areas and cities across the country.This IPO was launched on BSE and NSE both. The
opening date was Dec 02, 2020 and closing date was Dec 04, 2020.The lot size was 250. The issue
price was 60. The issue size was 810.

27
4) Gland Pharma Limited

Gland Pharma Ltd, the Hyderabad-based company is one of the fastest-growing generic injectable
companies. It manufactures a diversified range of high-quality complex injectable. The company
offers products like sterile injectable, oncology, and ophthalmic, complex injectable (peptides,
suspensions, hormonal products, long-acting injectable), NCE-1s, First-to-File products, etc. The
company follows a B2B model to sell its products in more than 60 countries including the US,
Canada, Australia, India, Europe, etc. Leading pharma companies i.e. Sagent Pharmaceuticals,
ApotexInc.This IPO was launched on BSE and NSE both. The opening date was Nov09, 2020 and
closing date was Nov11, 2020.The lot size was 10. The issue price was 1500. The issue size was
6479.55.

28
5) Equitas Small Finance Bank Ltd

Incorporated in 1993, Chennai based Equitas Small Finance Bank Ltd (ESFBL) was the largest
small finance bank in India in Fiscal 2019 considering banking outlets and the 2nd largest small
finance bank considering assets under management and total deposits. Unlike other microfinance
companies, it has a diversified loan portfolio and less dependence on microfinance business. With
the main focus on financially unserved and underserved customers, the bank offers a wide range of
banking products and services.This IPO was launched on BSE and NSE both. The opening date
was Oct20, 2020 and closing date was Oct22, 2020.The lot size was 450. The issue price was 33.
The issue size was 517.60.

29
In 2020 there were total 63 IPOs launched, and I have studied on 5 IPOs.

The IPOs launched were:

1) CMS Info Systems Limited

CMS Info Systems Limited is India's largest cash management company in terms of the number of
ATM points and retail pick-up points as of March 31, 2021. The company is engaged in installing,
maintaining, and managing assets and technology solutions on an end-to-end outsourced basis for
banks, financial institutions, organized retail and e-commerce companies in India. .This IPO was
launched on BSE and NSE both. The opening date was Dec 21, 2021 and closing date was Dec 23,
2021.The lot size was 69. The issue price was 216. The issue size was 1100.

30
2) SupriyaLifescience Limited

SupriyaLifescience is engaged in the manufacturing of Active pharmaceutical ingredients (APIs).

As of March 31, 2021, the company produces 38 APIs focused on diverse therapeutic segments
such as antihistamine, analgesic, anaesthetic, vitamin, anti-asthmatic and anti-allergic. The
company has been the largest exporter of Chlorpheniramine Maleate and Ketamine Hydrochloride
from India between Fiscal 2017 and 2021. The company is also one of the largest exporters of
Salbutamol Sulphate from India in FY 2021 in terms of volume. This IPO was launched on BSE
and NSE both. The opening date was Dec 16, 2021 and closing date was Dec 20, 2021.The lot size
was 54. The issue price was 274. The issue size was 700.

31
3) Medplus Health Services Limited

Incorporated in 2006, Medplus Health Services is India's second-largest pharmacy retailer in

terms of the number of stores and revenue. The company offers pharmaceutical and wellness
products i.e. medicines, vitamins, medical devices, test kits, and fast-moving consumer goods i.e.
home and personal care products, baby care products, sanitizers, soaps, and detergents, etc. It is
also the first pharmacy retailer in India to offer an omnichannel platform wherein customers can
purchase products through stores, place orders over the telephone, online orders, and a Click and
Pick facility. This IPO was launched on BSE and NSE both. The opening date was Dec 13, 2021
and closing date was Dec 15, 2021.The lot size was 18. The issue price was 796. The issue size was
139.80.

32
4) Paras Defence And Space Technologies Limited

Paras Defence and Space Technologies are primarily engaged in the designing, developing,
manufacturing, and testing of a variety of defence and space engineering products and solutions.
The company has five major product category offerings - Defence & Space Optics, Defence
Electronics, Heavy Engineering, Electromagnetic Pulse Protection Solutions, and Niche
Technologies. Paras Defence and Space Technologies is the only Indian company with the design
capability for space-optics and opto-mechanical assemblies and is one of the leading providers of
optics for various Indian defence and space programs This IPO was launched on BSE and NSE
both. The opening date was Sep 21, 2021 and closing date was Sep 23, 2021.The lot size was 85.
The issue price was 175. The issue size was 170.78

33
5) Kalyan Jewellers India Limited

Kalyan Jewellers is one of India's largest Jewellery companies. The key business activities of the
company is to design, manufacture, and sell a variety of gold, studded and other jewellery products
for various occasions i.e. wedding, festivals, etc.Initially, the company was started with a single
showroom in Kerala, and over the years, it has expanded its presence with 107 showrooms located
across 21 states and union territories in India.. This IPO was launched on BSE and NSE both. The
opening date was Mar 16, 2021 and closing date was Mar 18, 2021.The lot size was 172. The issue
price was 87. The issue size was 1175.

34
3.2 HIGHEST MONEY RAISED IN IPO IN 2020

New-age technology brands like Paytm, Zomato, Nykaa and Policybazaar, led a record ₹1.2 lakh
crore mop-up through initial public offerings (IPOs) in India during 2021 even as the stock market
key indices leaped to new highs shrugging off COVID concerns.

The Indian primary market was buzzing throughout the year. 63 companies collectively
raised ₹1,18,704 crore (USD 15.4 billion) through IPOs during 2021. This is the highest amount
of money raised through IPOs in a calendar year.

The previous best year for IPO was 2017 when ₹68,827 crore was raised. In fact, the money raised
in the primary market in 2021 is 62 per cent more than the total amount of ₹73,003 crore raised in
the preceding three years (2018 to 2020). During 2020, the total money raised through IPOs in India
stood at ₹26,613 crore, which was nearly one-fifth of the mop-up during 2021. The average issue
size during the year 2021 stood at ₹1,884 crore.

The bullish trend at the stock markets buoyed the investors' interests in the IPOs. The benchmark
indices of the Indian stock markets hit new highs during the year. Sensex of the Bombay Stock
Exchange (BSE) hit a record high of 62245.43 points while Nifty 50 of the National Stock
Exchange (NSE) touched its all-time high of 18,604.45 points on October 19, 2021.

The record fundraising from the Indian primary market was led by the new-age technology
businesses.

"IPOs from new-age loss-making technology start-ups, strong retail participation and huge listing
gains were the key highlights," said Pranav Haldea, Managing Director of Prime Database Group.

One 97 Communications, the parent company of digital payments platform Paytm, raised a
whopping ₹18,300 crore (USD 2.5 billion) through IPO. This is, so far, the largest ever IPO in
India. Paytm's IPO surpassed the long-standing IPO record of ₹15,200 crore set by the state-
run Coal India Limited in 2010.

Though Paytm's IPO got subscribed 1.89 times, it made a disastrous debut at the stock market
crashing 27 per cent from its issue price ( ₹2,150 per share) on the first day due to lofty
valuation and skepticism about its business model.

35
The second-largest IPO during the year was of online food delivery platform Zomato. The company
raised ₹9,375 crore through the IPO. It was a huge success with the IPO getting subscribed 38.25
times. Zomato also made a stellar debut at the stock markets making a debut at 53 per cent premium
over its issue price.

PB Fintech, the parent company of online insurance aggregator Policybazaar and credit comparison
platform Paisabazaar, raised ₹5,710 crore from the primary market. It included a fresh issue of
equity shares worth ₹3,750 crore and an offer of sale of ₹1,960 crore by existing shareholders. The
parent firm of Policybazaar and Paisabazaar was earlier named Etechaces Marketing and Consulting
Pvt. Ltd. The company name was changed to PB Fintech Pvt. Ltd. in September 2020 to emphasize
the nature of fintech businesses.

PB Fintech IPO got subscribed 16.59 times. The company made its market debut at 17 per cent
premium over its issue price.

FSN E-Commerce Ventures, which operates online beauty e-commerce platform Nykaa,
raised ₹5,352 crore through IPO. Falguni Nayar-led company's IPO was a huge success. The
IPO got subscribed 81.78 times. It also made a strong debut at the stock market getting listed at
79 per cent premium over its issue price.

The first IPO of the 2021 calendar year was of Indian Railway Finance Corporation Ltd's (IRFC), a
subsidiary of the Indian Railways. The IPO of IRFC was the first public issue by a railway non-
banking financial company. IRFC is the dedicated market borrowing arm of the Indian Railways.
IRFC's IPO was subscribed 3.5 times. The state-run company raised ₹4,633 crore from the
primary markets. IRFC made a tepid market debut with its share getting listed at the stock
exchange at 4.23 per cent discount over its issue price of ₹26.

Another public sector firm RailTel Corporation of India (RailTel) raised ₹819 crore from the
primary market. RailTel's IPO was subscribed 42 times. The company made a strong market debut
getting listed at 16 per cent premium over its issue price of ₹94.

PowerGrid Infrastructure Investment Trust, which is sponsored by the state-owned Power Grid
Corporation of India, raised ₹7735 crore through IPO. This was the third-largest IPO of the
year. The IPO was subscribed 4.83 times and the share got listed at 4 per cent premium.

36
Rakesh Jhunjhunwala-led Star Health and Allied Insurance Company raised ₹7249 crore through
IPO. The company got a tepid response at the stock market. Its share got listed at 6 per cent
discount over the issue price of Rs.900 per share.

Painting solution firm Indigo Paints was also among the first to come up with IPO during the
year. The company raised ₹1,176 crore from the primary market. The IPO of the fifth largest firm
in the Indian decorative paint industry was subscribed 117 times. The company made a bumper
market debut getting listed at 75 per cent premium over its issue price of ₹1,490.

Other prominent IPOs of 2021 include MedPlus Health Services, Data Patterns (India), Home First
Finance, Laxmi Organic, Barbeque Nation, Anupam Rasayan, Kalyan Jewellers, Brookfield India
REIT, Stove Kraft, Nureca, and Heranba Industries.

India's second-largest pharmacy retailer MedPlus Health Services had an impressive IPO with the
issue getting subscribed 52.59 times. The company made its stock market debut at 30 per cent
premium.

The simplification of rules by the Securities and Exchange Board of India (SEBI) has led to the
record fundraising by the new-age technologies firms, which are mostly loss-making. Earlier
regulation required a firm to have profit-making records in order to get listed at the stock
exchanges. However, SEBI has changed the regulation. Now the loss-making companies can also
get listed with some conditions. SEBI's new regulation paved the way for the listing of the new-age
technology firms like Paytm and Zomato that have a history of loss-making.

37
3.3 HIGHEST MONEY RAISED IN IPO IN 2021

The Indian stock market witnessed a record bull run this year with the benchmark indices hitting
fresh all-time highs throughout the year till October when it peaked. Thereafter, it witnessed some
pullback from the higher levels more so after the discovery of the new Omicron Covid-19 variant in
November.

So far, the market has corrected over 8 per cent from its all-time highs hit on October 19, with the
Sensex falling 8.54 per cent from its record highs to 56,930.56 as of Wednesday’s close and the
Nifty crashing 8.86 per cent to 16,955.45.

However, when it comes to initial public offerings (IPOs), the market sentiment has been positive
throughout. The primary market has been buzzing with a record number of IPOs this year with as
many as 62 companies getting listed so far in the calendar year 2021. These companies have
cumulatively raised over Rs 1.18 lakh crore. It has also been a clinical year as we have witnessed
some of the key new-age businesses which have raised capital through the IPO route.

Even though the secondary market has come under correction during the past couple of months
following the concerns over the Omicron variant, the string of IPOs continues to flow in.

Speaking about the progress in the market, Ravi Singh, vice president and head of research at Share
India Securities, told indianexpress.com that the equity markets had a historical move with
benchmark indices touching new lifetime highs of 18,000 and 60,000 mark for the first time ever
owing to improved macro parameters, higher liquidity and strong recovery in corporate earnings.
He added that due to this positive sentiment seen on the benchmark indices, a majority of IPOs
performed very well and turned to multi-baggers.

Heading into 2022, however, Singh remains cautious about the concerns surrounding the
development of Omicron and rising inflation in the global market.

“Given the prospect of further rise in inflation, there are chances that most of the central banks may
raise interest rates to curb the liquidity. The growing uncertainty and fear over Omicron would
drive the market momentum next year. Global economies are already facing high inflation and
economic bottlenecks and still in revival mode post Covid outbreak,” he said adding that in this
scenario if new lockdowns and restrictions are imposed then it would be very difficult to maintain
the pace of recovery.

38
“The year 2021 has been great in terms of generating returns from investments in stock market but
year 2022 seems to be more challenging,” Singh opined.

Speaking on IPOs, Narendra Solanki, Head-Equity Research (Fundamental) at Anand Rathi Shares
& Stock Brokers told that the IPO market in 2021 was very robust and vibrant and on an average,
we have seen more than five new issues hitting every month.

“For the next year 2022, the primary market should continue to remain active and vibrant with a
lot of new issues lined up especially from new-age tech and fintech spaces. Few of the probable
are LIC, More Retail, Mobikwik, Ola, Delhivery, Byjus etc.” he said.

39
 CHAPTER 4

RESEARCH AND METHOLOGY

4.1 INTRODUCTION

Methodology is the systematic, theoretical analysis of the techniques applied to an area of study.
Research simply implies the search for knowledge, and methodology is the systematic, theoretical
examination of the methods employed to a field of study. It entails a theoretical examination of a
corpus of techniques and concepts related with a field of study Research methodology is a set of
models, methods, and approaches for determining the outcome of a research topic

Initially, a literature review in the domain of investing in an IPO planning was undertaken to
acquire a thorough picture of previous research in the subject, as well as to determine essential
characteristics associated to it. Furthermore, it aids in the development of the theoretical framework.
The primary secondary sources of data were published reports, books, papers, and full text from
national and international publications. We also used bibliographical databases, abstracts, and
documents from other sources. As a result, the literature review aids in the development of a
framework for research questions created for the study.

4.2 RESEARCH UNIT

The study's main goal is to determine the degree of knowledge in India about investing in an IPO.
The research's sampling unit consists of different IPO in financial industry. The sample size is a
term used in market research for defining the number of subjects included in a sample size. By
sample size, we understand a group of subjects that are selected from the general population and is
considered a representative of the real population for that specific study.

Total sample size of study is –5 IPOs from last 2 years in Finance industry.

4.3 RESEARCH TECHNIQUE

The sampling approach is a method of picking 5IPO in order to make statistical inferences and
estimate price characteristics in past 2 years. In secondary research, several sampling strategies are
frequently employed.

40
 4.4 STATISTICAL TOOL AND TECHNIQUES

4.4.1 SECONDARY DATA:

Secondary research, often known as desk research, is a type of research that makes use of
previously collected data. To improve the overall efficacy of research, existing data is summarized
and compiled. Research information released in research reports and other comparable materials is
considered secondary research. Public libraries, websites, and data from previously completed
surveys, among other sources, can make these materials available. Some government and non-
government organizations also retain data that may be retrieved and utilized for research reasons.
Secondary research is far more cost-effective than primary research because it uses data that
already exists, as opposed to primary research, which requires organisations or enterprises to collect
data themselves or hire a third party to do it on their behalf.

For this study various secondary sources were used. Sources that were used are:

1. Using internet:- the most frequent techniques of gathering secondary data is through the internet,
which was employed in this study. Data is easily accessible over the internet and may be
downloaded with a single click.
a) Research papers: various research paper related to topic were easily accessible with the help of
internet. For this study, research papers of various authors were used to collect information.
b) Websites: number of educational websites were used such as wikipedia etc.
c) Blogs: various blogs available on internet related to topic were used to collect information.
d) Books: books are the finest offline source of knowledge that is required. To extract information, a
book such as basics of personal financial planning was utilized.:

4.5 VISUALIZATION TECHNIQUES IN DATA INTERPRETATION

Data interpretation is the process of reviewing data and drawing meaningful conclusions using a
variety of analytical approaches. Data interpretation aids researchers in categorizing, manipulating,
and summarizing data in order to answer important questions.

The significance of data interpretation is obvious, which is why it must be done correctly. Data is
likely to come from a variety of sources, and it has a propensity to arrive in the analysis process in a
random sequence. Data analysis is notoriously subjective. That is to say, the nature and objective of

41
interpretation will differ from one company to the next, and will most likely be related to the data
being studied.

The visualization of the dataset is one of the greatest data interpretation strategies. Visualization
makes data easier to interpret for a layperson, and it also motivates individuals to look at the data
since it presents a visually appealing summary.

1. Bars graphs
Bar graphs are graphs that use rectangular bars to represent the relationship between two or more
variables. These rectangular bars can be drawn horizontally or vertically, however they are most
commonly painted vertically. The horizontal axis (x) and the vertical axis (y) are represented in the
graph, with the former representing the independent variable and the latter representing the
dependent variable. Depending on how the rectangular bars are positioned on the graph, bar graphs
may be classified into several forms.

The following are some examples of bar graphs:

a) Graph with grouped bars: the grouped bar graph is used to provide additional information on
variables that are subgroups of the same group, with each subgroup bar presented side by side,
similar to a histogram.
b) Graph with stacked bars: a stacked bar graph is a grouped bar graph with rectangular bars
stacked on top of one another instead of side by side.
c) Bar graph with segments: stacking bar graphs with each rectangular bar representing 100% of
the dependent variable are known as segmented bar graphs. It's most commonly utilized when
two or more variable categories meet.

2. Pie chart

A pie chart is a circular graph with sectors that depicts the percentage of occurrence of a variable.
The frequency or percentage of the associated variables determines the size of each sector.

There are many different types of pie charts, but for the sake of this post, we will just look at three.

A. Pie chart (simple): the most basic sort of pie chart is the simple pie chart, which is used to
represent a bar chart in general.

42
B. Pie chart of doughnuts: doughnut pie is a type of pie chart with a blank middle that allows you
to incorporate more information about the data as a whole.
C. 3d pie chart: the 3d pie chart is used to give the chart a three-dimensional appearance and is
frequently utilized for aesthetic purposes. Because of the third-dimensional perspective
distortion, it is frequently difficult to approach.
3. Tables

Tables are used to display statistical data by arranging it in rows and columns. They are one of the
most often used statistical visualization approaches, and there are two types: simple tables and
complicated tables.

Simple tables:- simple tables, often known as univariate tables, summaries data on a single feature.
A basic table displaying the amount of employed persons in a neighborhood based on their age
group.

a) Complex tables: - it synthesise complex information and show it in two or more intersecting
categories, as their name indicates. A complicated table example is a table like the one below,
which shows the number of employed persons in a population by age group and sex.
b) Line graph: - a line graph, sometimes known as a chart, is a type of graph that shows data as a
succession of dots connected by a straight line. The following are some examples of line
graphs.
c) Simple line graphs: - simple line graphs may be used to compare categories and display the
trend of data over time. Let's say we have sales data for a company for each quarter and want
to use a line graph to forecast revenues for the following year.
d) Markers on line graphs: - these are similar to line graphs, except the data points are
represented by visual markers.
e) Graphs with stacked lines:- line graphs that are stacked are those in which the points do not
overlap and the graphs are stacked on top of each other

 Horizontal bar graph: - horizontal bar graph was used as it aids in the summarization of
enormous amounts of data. At a glance, essential value estimates may be determined and it is
simple to comprehend

 Simple pie chart: - simple pie charts were used as it has a pleasing appearance and when
comparing tiny data samples, this method works well
43
4.6 SWOT ANALYSIS OF INVESTING IN AN IPO

SWOT Analysis focuses on four important factors while evaluating the quality of a
company. Here’s what SWOT Analysis for stocks looks at:
 S—> Strength
 W—> Weakness
 O—> Opportunity
 T—> Threat
 Of the four factors of SWOT analysis, ‘strength’ and ‘weaknesses are the internal factors
of a company and hence are controllable.
 On the other hand, ‘opportunities’ and ‘threats’ are external factors and it’s a little difficult
for a company to control these factors. However, using the SWOT analysis of stocks, the
management can identify the threat and opportunities and hence can take proper actions
within time.

1. Strength
The strength of a company varies industry-to-industry. For example, a low non-performing asset
(NPA) can be the strength of a banking sector company. On the other hand, cheap suppliers or cost
advantages can be a big strength for an automobile company.
Here are a few other strengths of a company that you should take notice of while performing a
SWOT analysis of stocks:
44
  Strong financials
 Efficient Management (People, employees etc)
 Big Brand recognition
 Skilled workforce
 Repeat clients
 Cost advantages
 Scalable business model
 Customer loyalty

2. Weakness
The ‘reverse’ of everything discussed in the ‘Strengths’ can be the weakness of a company. For
example- Weak financials, inefficient management, poor brand recognition, unskilled workforce,
non-repetitive clients, un-scalable business and disloyal customers.
Besides, there are a few other weaknesses that may affect the company:
 Outdated technology.
 Lack of capital
 High Debt
For example- many companies in the telecommunication industry ran out of business as they were
using outdated 2G/3G technology. Similarly, in the energy sector, renewable power generation is
the future technology and those companies who are not working on the new technology might get
outdated soon. In short, outdated technology adversely affects most of the industry.

3. Opportunity
A company with a lot of opportunities has a lot of scopes to succeed and make profits in future.
Here are a few points that you need to consider while evaluating opportunities for a company:
 Internal growth opportunity- (New product, new market etc.)
 External growth opportunity (Mergers & Acquisitions)
 Expansion (Vertical or horizontal)
 Relaxing government regulations
 New technology (Research & Development)


45
4. Threats
In order to survive (and moreover to remain profitable), it’s really important for a company to
analyse its threats. Here are a few of the biggest threats to a company:
 Competition
 Changing consumer preferences/ new trends
 Unfavourable Government regulations
The changing consumer preferences are one of the repetitive threats that many industries face. Here,
if no proper action is taken to retain the customer, then it might unfavourably affect the profitability
of the company.
For example- The new trend of ‘health awareness among the people may result in a decline in the
sales of beverages/Soft drink companies. (These companies are fighting back this threat by
introducing ‘DIET-COKE’).

46
 CHAPTER 5

DATA INTERPRETATION

5.1 FINANCIAL COMPANIES THAT HAD ISSUED THEIR IPO IN LAST 2 YEARS

5.1.1 ANGLE BROKING

Incorporated in 1996, Angel Broking Ltd is one of India's oldest stockbroking houses providing
broking, marging funding, advisory, and financial services through brands "Angel Broking" and
"Angel Bee" powered by "ARQ". They have a strong market presence with active clientele on the
National Stock Exchange (NSE) with a market share of around 6.3% and 2.15 million operational
broking accounts as of June 2020.

It's digital transformation helped it being the 4th Largest company in terms of active NSE clients
and 2nd largest in terms of incremental NSE clients in Q1 - FY21. Angel Broking being a pioneer
in new client activation has access to approximately 79.55 million persons as of June 30, 2020.
From Q1 FY20 to Q1 FY21, its average daily turnover has been increased from Rs. 253,176 million
to Rs. 618,945 million.

Angel Broking Ltd key products and financial services to the clients:

1. Broking and Advisory

2. Margin Trading Facility

3. Investor Education

4. Loans against shares

5. Research Services

Competitive Strengths

47
1. Strong brand name

2. Advanced technology and digitalization

3. Strong client base

4. Pan-India presence

5. Strong financial performance

Company Promoters:

Dinesh D. Thakkar, Ashok D. Thakkar and Sunita A. Magnani are the promoters of the company.

Company Financials:

Summary of financial Information

Particulars For the year/period ended (Rs in Million)

30 June 31 31 31
2020 March March March
2020 2019 2018
Total 29,731.02 21,592.05 21,690.56 22,828.67
Assets
Total 2,440.86 7,427.79 7,626.47 7,536.55
Revenue
Profit 381.83 866.24 766.94 1,010.52
After Tax
Objects of the Issue:

The Net Proceeds from the fresh Issue will be utilised towards the following objects:

1. To meet working capital requirements; and

2. General corporate purposes

Angel Broking IPO Details

48
 IPO Opening Sep 22, 2020
Date
IPO Closing Sep 24, 2020
Date
Issue Type Book Built Issue
IPO
Face Value 10 per equity share
IPO Price 305 to 306 per equity
share
Market Lot 49 Shares
Min Order 49 Shares
Quantity
Listing At BSE, NSE
Issue Size [.] Eq Shares of
₹10 (aggregating
up to
₹600.00 Cr)
Fresh Issue [.] Eq Shares of
₹10 (aggregating
up to
₹300.00 Cr)
Offer for Sale [.] Eq Shares of
₹10 (aggregating
up to
₹300.00 Cr)

Angel Broking IPO Timetable

The Angel Broking IPO open date is Sep 22, 2020, and the close date is Sep 24, 2020. The issue
was listed on Oct 5, 2020.

49
 IPO Open Date Sep 22,
2020
IPO Close Date Sep 24,
2020
Basis of Allotment Date Sep 29,
2020
Initiation of Refunds Sep 30,
2020
Credit of Shares to Demat Oct 1,
Account 2020
IPO Listing Date Oct 5,
2020
Angel Broking IPO Lot Size

The Angel Broking IPO market lot size is 49 shares. A retail-individual investor can apply for up to
13 lots (637 shares or ₹194,922).

Application Lots Shares Amount

(Cut-
off)
Minimum 1 49 ₹14,994
Maximum 13 637 ₹194,922
Angel Broking IPO Promoter Holding

Pre Issue Share 65.42%

Holding

50
Angel Broking IPO Offer Size by Investor Category

The Percentage of Offer Size available for Allotment/allocation:

Category No. of %
shares
Anchor 58,82,353 30%
QIB 39,34,425 20%
NII 29,50,820 15%
Retail 68,85,246 35%
Total 1,96,52,844
Angel Broking IPO Review

ABL has geared itself for pure digital play in the securities market and become the largest
retail broking firm in India. Considering rising trends for stock market investments and an
increasing number of investors, this company is poised for bright prospects ahead. Investors
may consider investment for the long term.

Angel Broking IPO Subscription Status

The Angel Broking IPO is subscribed 3.94 times The public issue subscribed 4.31 times in the retail
category, 5.74 times in the QIB category, and 0.69 times in the NII category.

Category Subscription
(times)
QIB 5.74
NII 0.69
Retail 4.31
Total 3.94

51
Angel Broking IPO Listing Date

Listing Date Monday, October 5, 2020

BSE Script Code 543235
NSE Symbol ANGELBRKG
Listing In B Group of Securities
ISIN INE732I01013
IPO Price ₹306 per equity share
Face Value ₹10 per equity share
Listing Day Trading Information

. BSE NSE
IPO Price ₹306.00 ₹306.00
Open ₹275.00 ₹275.00
Low ₹256.60 ₹257.00
High ₹296.45 ₹296.70
Last Trade ₹275.85 ₹275.80

52
 5.1.2 UTI Asset Management Company Ltd IPO

Incorporated in 2002, UTI AMC is in the business of managing the domestic mutual funds of UTI
Mutual Fund, provides portfolio management services to institutional clients and high net worth
individuals like Employee Provident Fund Organisation, National Skill Development Fund, Postal
Life Insurance, and manages retirement funds viz. NPS, offshore funds like Shinsei UTI India
Fund, and alternative investment funds catering to a diverse group of individuals, institutional
investors, banks, trusts, and NRIs.

Company Promoters:

UTI AMC is a professionally managed company and does not have an identifiable promoter in
terms of SEBI.

Company Financials:

Particulars For the year/period ended (Rs in Million)

30-June- 31-Mar- 31-Mar- 31-Mar-

20 20 19 18

Total
32,634.28 31,549.18 30,132.63 29,192.52
Assets

Total
2,710.68 8,909.61 10,808.94 11,627.47
Revenue

Profit
1,010.75 2,764.85 3,479.27 4,050.91
After Tax

53
Objects of the Issue:

The objects of the Offer are:

1. To achieve the benefits of listing the Equity Shares on the Stock Exchanges and
2. The sale of up to 38,987,081 Equity Shares by the Selling Shareholders

UTI AMC IPO Details

IPO Opening Date Sep 29, 2020

IPO Closing Date Oct 1, 2020

Issue Type Book Built Issue IPO

Face Value ₹10 per equity share

IPO Price ₹552 to ₹554 per equity share

Market Lot 27 Shares

Min Order Quantity 27 Shares

Listing At BSE, NSE

38,987,081 Eq Shares of
Issue Size ₹10 (aggregating up to
₹2,159.88 Cr)

UTI AMC IPO Timetable

The UTI AMC IPO open date is Sep 29, 2020, and the close date is Oct 1, 2020. The issue may list
on Oct 12, 2020.

54
IPO Open Date Sep 29, 2020

IPO Close Date Oct 1, 2020

Basis of Allotment Date Oct 7, 2020

Initiation of Refunds Oct 8, 2020

Credit of Shares to Demat Account Oct 9, 2020

IPO Listing Date Oct 12, 2020

UTI AMC IPO LOT SIZE

The UTI AMC IPO market lot size is 27 shares. A retail-individual investor can apply for up to 13
lots (351 shares or ₹194,454).

Amount
Application Lots Shares
(Cut-off)

Minimum 1 27 ₹14,958

Maximum 13 351 ₹194,454

UTI AMC IPO Promoter Holding

Pre Issue
98.96%
Share Holding

55
UTI IPO Shares Offered by Investor Category

Category % No. of shares

QIB 50% 19,493,540

NII 15% 5,848,062

Retail 35% 13,645,480

Total 38,987,081

UTI AMC IPO Review

UTI AMC has emerged as the second-largest AMC post revamp. According to management, they
are back on track with its improved performance for FY21 The company is gearing to give the best
services to its clients and investors with modern technology and research-based investments.
Considering its financial performance so far, the issue appears fully priced. Investors may park their
funds with a long term perspective.

UTI AMC IPO Subscription Status

The UTI AMC IPO is subscribed 2.31 times on Oct 1, 2020 6:00:07 PM. The public issue
subscribed 2.32 times in the retail category, 3.34 times in the QIB category, and 0.93 times in the
NII category.

56
 Category Subscription (times)

QIB 3.34

NII 0.93

Retail 2.32

Employee 1.34

Total 2.31

UTI AMC IPO Listing Date

Listing Date Monday, October 12, 2020

BSE Script Code 543238

NSE Symbol UTIAMC

Listing In B Group of Securities

ISIN INE094J01016

IPO Price ₹554 per equity share

Face Value ₹10 per equity share

Listing Day Trading Information

BSE NSE

IPO Price ₹554.00 ₹554.00

Open ₹490.25 ₹500.00

Low ₹471.10 ₹471.10

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High ₹530.00 ₹529.95

Last Trade ₹476.60 ₹476.20

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5.1.2 ANAND RATHI WEALTH LIMITED

AnandRathi Wealth is one of the leading non-bank wealth solutions firms in India and has been
ranked amongst the top three non-bank mutual fund distributors in the country. The company offers
a wide product portfolio of wealth solutions, financial product distribution, and technology
solutions to its clients. The company provides services primarily through its flagship Private
Wealth (PW) vertical where it manages ₹ 294.72Bn in AuM as of August 31, 2021.

Competitive Strengths:

 Focus on the underserved HNI segment of great market potential

 Standardized solutions offered to clients based on an objective-driven approach
 One of the top 3 leading mutual fund distributors in India

Company Promoters:

Mr. AnandRathi, Mr. Pradeep Gupta and AnandRathi Financial Services Limited are the company
promoters.

Company Financials:

Summary of financial Information (Restated Consolidated)

Particulars For the year/period ended (₹ in Millions)
31-Aug-21 31-Mar-21 31-Mar-20 31-Mar-19
Total Assets 4,023.24 3,394.42 4,090.64 2,308.27
Total Revenue 1,689.03 2,792.48 3,364.14 2,841.87
Profit After Tax 510.88 450.95 616.14 584.33

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Objects of the Issue:

The objects of the offer are to achieve the benefits of listing the equity shares on the stock
exchanges.

AnandRathi IPO Details

IPO Opening Date Dec 2, 2021

IPO Closing Date Dec 6, 2021
Issue Type Book Built Issue IPO
Face Value ₹5 per equity share
IPO Price ₹530 to ₹550 per equity share
Market Lot 27 Shares
Min Order Quantity 27 Shares
Listing At BSE, NSE
Issue Size [.] Eq Shares of ₹5
(aggregating up to ₹660.00 Cr)
Offer for Sale 12,000,000 Eq Shares of ₹5
(aggregating up to ₹660.00 Cr)
Employee Discount 25

AnandRathi IPO Timetable

The AnandRathi IPO open date is Dec 2, 2021, and the close date is Dec 6, 2021. The issue may list
on Dec 14, 2021.

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 IPO Open Date Dec 2, 2021
IPO Close Date Dec 6, 2021
Basis of Allotment Date Dec 9, 2021
Initiation of Refunds Dec 10, 2021
Credit of Shares to Demat Account Dec 13, 2021
IPO Listing Date Dec 14, 2021
AnandRathi IPO Lot Size

The AnandRathi IPO market lot size is 27 shares. A retail-individual investor can apply for up to 13
lots (351 shares or ₹193,050).

Application Lots Shares Amount (Cut-off)

Minimum 1 27 ₹14,850
Maximum 13 351 ₹193,050
AnandRathi IPO Promoter Holding

Pre Issue Share Holding 74.73%

Post Issue Share Holding 48.82%
AnandRathi IPO Subscription Status

The AnandRathi IPO is subscribed 9.78 times on Dec 6, 2021 5:00:00 PM. The public issue
subscribed 7.76 times in the retail category, 2.50 times in the QIB category, and 25.42 times in the
NII category.

Application Wise IPO Subscription

Category Subscription (times)

QIB 2.50
NII 25.42
Retail 7.76
Employee 1.32
Total 9.78
AnandRathi IPO Listing Date

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 Listing Date Tuesday, December 14, 2021
BSE Script Code 543415
NSE Symbol ANANDRATHI
Listing In B Group of Securities
ISIN INE463V01026
IPO Price ₹550 per equity share
Face Value ₹5 per equity share
Listing Day Trading Information

. BSE NSE
IPO Price ₹550.00 ₹550.00
Open ₹602.05 ₹600.00
Low ₹566.10 ₹565.55
High ₹614.95 ₹615.00
Last Trade ₹583.50 ₹583.55

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 5.1.4 Aditya Birla Sun Life AMC Ltd

Incorporated in 1994, Aditya Birla Sun Life AMC is set up as a joint venture between ABCL and
Sun Life AMC. The company managed a total AUM of ₹2,736.43 Bn under mutual fund
(excluding domestic FoFs), portfolio management services, offshore and real estate offerings, as of
December 31, 2020. The company managed 135 schemes comprising 35 equity, 93 debt, 2 liquid
schemes, 5 ETFs, and 6 domestics FoFs as of December 31,

Competitive strengths

 Largest Non-bank Affiliated Asset management company of India.

 Well recognized and trusted brand with experienced promoters.
 Rapidly growing customer base.
 Well-Diversified product portfolio and innovative schemes

Company Promoters:

Aditya Birla Capital Limited (ABCL) and Sun Life (India) AMC Investments Inc. are the company
promoters.

Company Financials:

Summary of financial Information (Restated Consolidated)

Particulars For the year/period ended (₹ in millions)
31-Mar-21 31-Mar-20 31-Mar-19

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 Total Assets 19,845.51 15,719.59 14,984.60
Total Revenue 12,058.41 12,347.68 14,072.50
Profit After Tax 5,262.80 4,944.02 4,467.99

Objects of the Issue:

The net proceed from the IPO will be utilized towards the following purposes;

 Achieve the benefits of listing the Equity Shares on the Stock Exchanges; and
 Carry out the Offer for Sale of up to 38,880,000 Equity Shares by the Selling Shareholders.

Aditya Birla Sun Life AMC IPO Details

IPO Opening Date Sep 29, 2021

IPO Closing Date Oct 1, 2021
Issue Type Book Built Issue IPO
Face Value ₹5 per equity share
IPO Price ₹695 to ₹712 per equity share
Market Lot 20 Shares
Min Order Quantity 20 Shares
Listing At BSE, NSE
Issue Size 38,880,000 Eq Shares of ₹5
(aggregating up to ₹2,768.26 Cr)
Offer for Sale 38,880,000 Eq Shares of ₹5
(aggregating up to ₹2,768.26 Cr)
Aditya Birla Sun Life AMC IPO Timetable

The Aditya Birla Sun Life AMC IPO open date is Sep 29, 2021, and the close date is Oct 1, 2021.
The issue may list on Oct 11, 2021.

IPO Open Date Sep 29, 2021

IPO Close Date Oct 1, 2021

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 Basis of Allotment Date Oct 6, 2021
Initiation of Refunds Oct 7, 2021
Credit of Shares to Demat Account Oct 8, 2021
IPO Listing Date Oct 11, 2021

Aditya Birla Sun Life AMC IPO Lot Size

The Aditya Birla Sun Life AMC IPO market lot size is 20 shares. A retail-individual investor can
apply for up to 14 lots (280 shares or ₹199,360).

Application Lots Shares Amount (Cut-off)

Minimum 1 20 ₹14,240
Maximum 14 280 ₹199,360
Aditya Birla Sun Life AMC IPO Promoter Holding

Pre Issue Share Holding 100%

Post Issue Share Holding 86.50%

.Shareholders Category

Eligibility Individuals and HUFs

Company Shares Aditya Birla Capital (ABCL)
Date of holding September 22, 2021

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 Basis of Allotment Proportionate (Simillar to NII)

Aditya Birla Sun Life AMC IPO Review

This offer was eagerly awaited by investors across the board. Though it has been posting the growth
for bottom lines, based on financial parameters, the issue is fully priced. With the rising investments
in stock markets and increasing numbers of Demat accounts, this company is poised for bright
prospects ahead. Investors may park fund in this issue with a long term perspective.

Aditya Birla Sun Life AMC IPO Subscription.

The Aditya Birla Sun Life AMC IPO is subscribed 5.25 times on Oct 1, 2021 6:52:00 PM. The
public issue subscribed 3.24 times in the retail category, 10.36 times in the QIB category, and 4.39
times in the NII category.

Category Subscription (times)

QIB 10.36
NII 4.39
Retail 3.24
Others 1.68
Total 5.25

Aditya Birla Sun Life AMC IPO Listing Date

Listing Date Monday, October 11, 2021

BSE Script Code 543374
NSE Symbol ABSLAMC
Listing In B Group of Securities
ISIN INE404A01024
IPO Price ₹712 per equity share
Face Value ₹5 per equity share

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Listing Day Trading Information

. BSE NSE
IPO Price ₹712.00 ₹712.00
Open ₹712.00 ₹715.00
Low ₹696.00 ₹695.35
High ₹721.00 ₹722.90
Last Trade ₹699.65 ₹699.45

67
 CHAPTER 6

FINDINGS AND RECOMMENDATIONS

6.1 INTRODUCTIONS

The study focused on IPO of financial industry in last two years in India. The objective of the study
was: Toassess the financial performances of the sample companies on the basis of study of the
prospectus. To Study the price behaviour of the IPOs on the date of listing and on a subsequent date.
To assess relationship between the quality of disclosure of the financial performance and the price
behaviour. To understand the nature of pricing of the IPOs in Indian Primary Market immediately
after listing to study whether prior movements of general stock markets predict the first day returns
of IPOs in India or not.The study we took up is one of the unique studies made on the initial price
behaviour of IPOs in India. It is unique in a sense we tried to relate these two aspects namely price
behaviour and quality of disclosure in relation to IPO

Based on the objectives the study was undertaken by using secondary data. Data was collected from
5 IPOs of Financial industry in last two years. Data collected from the IPOs were analysed with the
help of statistical tools like percentages and for visualization technique used for data interpretation
were simple pie chart and horizontal bar graphs. The findings drawn from the analysis are discussed
in this chapter. This chapter also includes suggestion and conclusion of the study.

6.2 MAJOR FINDINGS

1. Some IPOs of Financial Companies have shown positive IRR while some IPOs shown
negative IRR.
2. The large issue size has shown over returns on listing and negative returns after one month
of listing. On the other hand, small size IPOs have shown higher returns on listing and also
negative returns after one month of their listing.
3. Most of the Financial Companies IPOs which have oversubscribed have generated higher
returns on their listing.

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4. There is no clear cut relationship between the number of oversubscription and return on listing
and one month of listing.
5. There is no relationship between the amount of premium charged by the Financial Companies
and the returns on listing and one month after listing
6. The IPO issuer has to consider the various factors affecting on the price determination
process before raising the capital from the market
7. As the researcher has found that the issue size and issue price is playing an important role in
the pricing of the IPOs, the issuer and merchant banker should determine the optimum issue
size and offer price which provides better performance of the IPOs
8. The issuer has to consider the sectoral market efficiency before making any new issue of the IPO.
9. As a regulatory body SEBI has to frame the policy with regard to the highly under-priced
and underperformed company for the performance improvement
10. As an important factor the Age of the company, the company having long period history
should make market survey before going public. And those companies have lower age are
suggested to make more informative advertisement.
11. Companies’ in their Prospectus mention how they are going to utilise the funds which they
will receive in time of IPO. But after IPO in reality how they used that funds is a big question
mark. SEBI should come out with the stringent rule in case of any deviation in using the IPO
proceeds in actual, compared to what was proposed in the Prospectus, leading to prosecution
of the firm.
12. Our legal system should be conducive enough to encourage investors to drag the
companies to Court, who overpriced their IPO. SEBI should create a fund to compensate
the legal expenses which the investors so incur.
13. Indian investors are greatly influenced by market rumour. Firms which are taping the IPO
market to raise funds deliberately create the market rumour by using publicity. Investors need
to be careful about the publicity of IPO. SEBI should impose a restriction of any kind of
publicity by the firms before going IPO

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6.3 SUGGESTIONS

The aim of the research was to discover the rates of return on sample IPOs listed on India's Premier
Stock Exchanges i.e. BSE and NSE. The performance of the IPOs is measured with reference to the
rates of return on listing one month after listing and average returns in the long run after listing of
the IPOs. The major conclusions are given above. However, the following suggestions are made in
order to improve the performance of IPOs in the future.

(1) As there is free pricing of IPOs, the companies have charged higher amount of premium on
their IPOs. Therefore, there is a need to reduce the offer price by charging reasonable
premium.

(2) Many IPOs have been oversubscribed. However, certain IPOs have oversubscribed less
number of times. The over subscription may depend upon the offer price. Thus, there is also need
to charge reasonable offer price on the IPOs.

(3) Many IPOs have provided good returns in the short run. However, the return on IPOs is low
or negative in the long run in some cases. Therefore, there is need to provide reasonable return on
IPOs in the long run also. The companies should follow this aspect in future.

(4) The IPOs of certain sectors have been performing better than other sectors. Therefore, there is
a need to provide reasonable returns on the IPOs of all the sectors.

(5) The investors in IPOs want quick returns on listing. Many IPOs have generated negative
returns on listing. The trend should be followed by all the companies accordingly; they should
adjust their offer prices.

(6) The companies should follow the guidelines issued by the SEBI in order to achieve the
investor's confidence in the primary market. Most of the IPOs in recent years have been
following Book Building Process in which the price band is provided by the companies to the
investors.

(7) Though there is no under subscription the IPOs are oversubscribed less number of times.
This indicates less confidence of the investors in these IPOs.

(8) As the return on listing is very high in some IPOs, the SEBI should look into this matter
and provide protection to the investors.

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(9) There is a need to issue strict guidelines in respect of pricing of IPOs in the primary market.

71
(10) The companies have been changing their names and making stock splits after the IPO which
creates confusion in the minds of the investor. This should be stopped by the SEBI through
proper guidelines.

(11) Investors in time of investing into Indian IPOs need to focus more on the prospectus of
issue. They should not be satisfied only by seeing the growing trend of sales and profit as shown
in the prospectus. Other qualitative information (like future projects in hand, reputation of the
directors, reputation of Parent Company, etc.) and quantitative information (like cash flow,
amount of receivables, etc.) also requires to be considered.

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6.4 CONCLUSIONS

From the foregoing analysis, it can be concluded that the under-pricing and underperformance of
the IPOs is observed in BSE. The Indian IPOs are under-priced on the first trading day as an
average return of the international evidences of IPO under-pricing. The Indian IPOs which are
under-priced on the listing days are declining in subsequent short term and long term period after
listing day and underperformed. The underperformance found in both the long term and short term
but an extent and a trend is differing. At general it can be concluded that there are various factors
affected to the performance of the IPOs in the short and long term. They include the offer size,
offer price, age of the company, sectors, and groups of the Market are impacted to the performance
of the IPOs in different time intervals.

Wealth maximization for promoters and private equity players can be attained with an increase in
the rate of economic development. In the case of infrastructure stocks, asset utilization also plays
an important role. The researcher believes that if the promoter and the private equity players take
into consideration the IPO drivers while fixing the price, the under-pricing would reduce, and the
stock price would move towards the intrinsic value thus reducing the anomaly in pricing. This
would move the stock price towards the one price that has been conceived by the proponents of
traditional corporate finance as the true price.

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6.5 BIBLIOGRAPHY

Website:
 Https://en.wikipedia.org/
 Https://www.investopedia.com
 Https://shodhganga.inflibnet.ac.in/
 https://www.moneycontrol.com/
 https://www.chittorgarh.com/
 https://economictimes.indiatimes.com/
 https://in.investing.com/

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