INDEX

CHAPTER NO. CONTENTS PAGE NO.

1 RESEARCH DESIGN

2 REVIEW OF
LITRETURE

3 COMPANY PROFILE

4 RSERCH
METHODOLOGY

5 DATA ANALYSIS AND

INTERPRITATION

6 FINDING AND
CONCULSION
 A

Project Report On

A STUDY ON ISSUE & MANAGEMENT OF IPO’s

SUBMITTED TO

SAVITRIBAI PHULE PUNE UNIVERSITY

IN PARTIAL FULLFILMENT OF

BACHELOR OF BUSINESS ADMINISTRATION (BBA-II)

SUBMITTED BY
ANKITA DHANWADE(BB232016)

UNDER THE GUIDANCE OF

Prof. BHAVNA SHRESHTA

THROUGH

SNBP COLLEGE OF ARTS , COMMERCE , SCIENCE & MANAGEMENT

STUDIES, MORWADI PUNE.
 ACKNOWLEDGEMENT

Firstly, I would Like to Praise and Thank the Almighty to Help Me Successfully Come till this
Point of My Life. May He Always Keep Showering His Blessings on All of Us.

I Wish to Express My Deep Sense of Gratitude to Prof. Bhavna Shreshta.Mam or Her

Valuable Advice and Guidance to Me Throughout My Project.

I Would Like to Express My Willingness and Gratitude to(Prof.Bhavna Shreshta Mam. for
Giving Me an Opportunity to do a Project on Memorandum.

Lastly, But Not the Least Express My Gratitude to My Beloved Parents. I Would Like to Thank
My Friends and All the Other People Who Directly and Indirectly Help Me During This
Project.

Ankita. A. Dhanwade
 DECLARATION

I hear by declared that the mini project initiatives “A STUDY ON ISSUE & MANAGEMENT OF
IPO’s Completed and submitted by me to Savitribai Phule Pune university for completion of
BBA - II. And under the guidance of Prof..Bhavna mam is my original work and that the
conclusion drwan there in our based on the data collected by myself .

To the best of my knowledge and believe the research work has not submitted earlier to this
for completion of BBA -II.
 CHAPTER NO.1
RESEARCH DESIGN
INTRODUCTION

Initial public offering (IPO)

IPO also referred to simply as a "public offering," is the first sale of stock by a private
company to the public. 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. In an IPO, the issuer may obtain the assistance of an underwriting firm,
which helps it determine what type of security to issue (common or preferred), best offering
price and time to bring it to market. IPOs can be a risky investment. For the individual
investor, it is tough to predict what the stock will do on its initial day of trading and in the
near future since there is often little historical data with which to analyse the company.

Also, most IPOs are of companies going through a transitory growth period, and they are
therefore subject to additional uncertainty regarding their future value. An IPO stands for
Initial Public Offering. Basically, an initial public offering occurs when a company that was
previously privately owned decides to sell shares of stock in order to raise money. The
company generally finds an investment bank to help them carry out the procedure.
Generally, the company seeking an IPO is smaller and younger and needs capital, but large
privately held firms have also been known to do this.

An IPO is an initial public offering, in which shares of a private company are made available
to the public for the first time. An IPO allows a company to raise equity 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 current private investors. Meanwhile, it also allows public investors to
participate in the offering.
OBJECTIVE

PRIMARY OBJECTIVE :

 To know perception of investor’s towards commodity market with specific focus on

pune city.

 Each company’s ipo has a unique purpose. Typically, companies conduct ipos to raise
capital from the public as investors. These additional funds may be applied to
operational endeavors, the investigation of new business opportunities, etc.

SECONDARY OBJECTIVE :

 To study the investor in commodity Motilal Oswal Financial Services (MOFSL) ltd.
 To understand the relationship between the demographic factors and the various
factor influencing the investor decision regarding the commodity market.
 To identify the mode of investement in which investor invest most.
 To know the preference of commodity exchange for investemnt.
 To know the proportion of the income invest in the stock market
 To know the investor invest like to the invest money.
SCOPE

 Companies must meet requirements by exchanges and the Securities and Exchange
Commission (SEC) to hold an IPO.

 IPOs provide companies with an opportunity to obtain capital by offering shares

through the primary market.

 Companies hire investment banks to market, gauge demand, set the IPO price and
date, and more.

 An IPO can be seen as an exit strategy for the company’s founders and early
investors, realizing the full profit from their private investment.
IMPORTANCE :

An Initial Public Offering (IPO) is a crucial event for a company as it marks the first time its
shares are offered to the public on a stock exchange. The importance of an IPO can be
understood through various perspectives:

Capital Generation: One of the primary reasons for going public is to raise capital. By issuing
shares to the public, a company can generate substantial funds, which can be used for
various purposes such as expansion, research and development, debt repayment, and other
strategic initiatives.

Access to Capital Markets: Public companies have ongoing access to the capital markets,
making it easier to raise additional funds through secondary offerings if needed. This
flexibility can be crucial for responding to changing market conditions or funding new
projects.

Market Valuation: The IPO process involves a valuation of the company, establishing a
market price for its shares. This valuation can be used as a benchmark for the company's
worth and may influence future funding rounds, partnerships, and strategic decisions.

Increased Corporate Governance Standards: Going public often necessitates adherence to

higher corporate governance standards and transparency requirements. This can improve
the overall governance structure of a company and enhance investor confidence.
LIMITATION

The availability and quality of data on IPOs can be a limitation. Historical data might be
limited or might not cover a sufficiently long period to draw meaningful conclusions.
Additionally, the accuracy and reliability of the data sources should be carefully considered.

Sample Size and Generalizability: The number of IPOs within a specific time frame or
industry may be limited, affecting the generalizability of findings. Small sample sizes can
make it challenging to draw robust conclusions and generalize findings to broader market
trends.

Survivorship Bias: Studies on IPOs may be subject to survivorship bias, as unsuccessful or

withdrawn IPOs may not be adequately represented in the data. This bias can lead to an
overestimation of the success factors and performance of IPOs.

Market Conditions: IPO performance is strongly influenced by market conditions at the time
of the offering. Economic downturns or periods of market volatility can impact the
outcomes, and failing to account for these external factors may limit the validity of the
study.
 CHAPTER 2
REVIEW OF LITERATURE
A review of literature would make us believe that initial public offers (IPO) in India and most
other countries are usually under-priced. A stock issue is dimmed to be under-priced if the
closing price on the first day of listing is higher than the ipo price. A review of literature on
the subject confirms that even though the book building methodology is an improvement
over fixed price.

S.S.S. KUMAR (1999): Stated that the performance issued through the book building
process in India over the period 1999-2006. The simple comprise 156 firms that upon
listening the IPO’s on average offer positive returns up till twenty four months but
subsequently they underperform the market.

ARWAH ARJUN MADAN (2010): Stated that in the long run there is a drastic fall in the return
on IPO’s return is found to be negative from the second on the fifth year of listening.

ANAND ADTHIKARI (2011): Stated that companies with unique business models got listed in
the year 2009-2010 and made their inventor rich.
2.2 COMPANY PROFILE

Motilal Oswal Financial Services (MOFSL) ltd.

Motilal Oswal Financial Services (MOFSL) was founded in 1987 by - Mr. Motilal oswal and Mr.
Ramdeo Agrawal.

In just three years Motilal Oswal became members of on The Bombay Stock Exchange (BSE).

The company started offering derivatives products and advisory services on both BSE as well
as NSE in year 2001. In 2006 the company entered private equity and investment banking. In
the same year, Motilal Oswal group acquired South Indian brokerage firm – Peninsular
Capital Markets The company tied up with State Bank of India and Punjab National Bank in
2006 and 2007 to offer online trading to its customers.

2008 saw the company create One of India's largest Equity dealing and advisory rooms,
spread over 26,000 sq ft (2,400 m2) in Malad, Mumbai.

In January 2010, Motilal Oswal Financial Services (through its subsidiary Motilal Oswal
Securities Ltd.) received the final certificate of registration approval from Securities and
Exchange Board of India (SEBI) to set up a mutual fund business in the country.
MOAMC(motilal oswal assets management company) is a 100% subsidiary of Motilal Oswal
Securities Limited.

It provides investment management and advisory services to investors based within and
outside India and having portfolio management services business, ETFs andmutual funds.
Aspire Home Finance Corporation Limited (AHFCL) is a professionally managed housing
finance company. AHFCL is a subsidiary of Motilal Oswal Securities Limited (MOSL) which is
a part of Motilal Oswal Financial Services Limited (MOFSL).

Motilal oswal has been awarded 6-time winner of Best Performing Equity Broker It has 30
years of wealth creation expertise driven by the philosophy of Solid Research, Solid Advice.

The company has 10,00,000 customers with Rs. 69,561 Cr. plus depository assets with PAN
India coverage across 2,200+ locations in over 500+ cities also it provides its

Customers with :

➢15 min, 100% paperless trading and demat account

➢Instant day account activation on receipt of application

➢Dedicated customer service team with a 6-hour query resolution TAT

➢Customer centric Risk Management System and real-time payouts

Motilal oswal is involved in variety of businesses -

1. Private equity

2. Assets management

3. Wealth management

4. Investment banking

5. Settlement:

This means actual transfer of securities. This is the last stage in the trading of securities
done by the broker on behalf of their clients. There can be two types of settlement.

Product & Advisory

PRODUCTS -

1. DERIVATIVES

2. COMMODITY

3. CURRENCY

4. MUTUAL FUND

5. FIXED DEPOSITS AND BONDS

6. IPO’S
 CHAPTER 3
RESEARCH METHODOLOGY
Research methodology It's logical, a systematic plan to resolve a research problem. A
methodology details a researcher's approach to the research to ensure reliable, valid results
that address their aims and objectives. It encompasses what data they're going to collect
and where from, as well as how it's being collected and analysed.

DATA COLLECTION

The main source of data collection used in the study is the secondary sources.

SECONDARY SOURCES

Secondary sources of data collection are information’s that were obtained from published
material such text books, journals, magazines,newspaper, articles.

SAMPLE SIZE

There are 100 respondents that I have survey.

 CHAPTER 4
DATA ANALAYSIS AND INTERPRITATION
1. GENDER

PARTICULAR FREQUENCY PERCENTAGE%

MALE 88 88.0
FEMALE 12 12.0
TOTAL 100 100.0

female
12%

Male
88%

INTERPRITATION:

From the above table only 88 respondents are males and 12 peoples are females who are
investing in IPO. it means 88 per male and 12 per female those who are investing in IPO.

2. OCCUPATION

PARTICULAR FREQUENCY %
Business 64 64.0
Service 22 22.0
Profession 9 9.0
Self –employed 5 5.0
TOTAL 100 100.0

self-
employed profession
5% 9%

service
22% business
64%
INTERPRITATION:

From the survey we got that result that 64% business people are move investing in the IPO.
And the 22% are the service people investing in IPO.

Q 1. Do you invest in IPO(Initial public offering)?

A. YES
B. NO

FREQUENCY PERCENTAGE
45 45.0
55 55.0
TOTAL 100.0

INTERPRITATION:

From the above table 55% peoples are not investing in IPO. And 45% peoples are investing
in IPO. It means 45% peoples know about IPO and they are investing in IPO.

Q 2. How long are you trading in IPO’s ?

Particular Frequency Percentage%

0-2 20 20.0
2-5 70 70.0
5-10 10 10.0
TOTAL 100 100

INTERPRITATION:

According to the survey and from the above table peoples are investing in the IPO from the
last 2-5 years only.
Q 3. What difficulties did you face after applying IPO’s ?

Particular Frequency Percentage%

Refund problem 31 31.0
Delay in crediting 10 10.0
allotted
Shares to your 50 50.0
DEMAT account
No clarity in 5 5.0
allotment
None of the above 4 4.0

TOTAL 100 100

INTERPRITATION:

From the above table no clarity in allotment they face after they applying IPO , with the
problem of refund is also there in IPO at 31%.

Q 4. How do you feel about the procedure for IPO’s ?

Particular Frequency Percentage%

Easy 10 15.0
Difficult 15 25.0
lengthily 25 46.0
Complicated 50 14.0

TOTAL 100 100

INTERPRITATION:

From the above table 50% complicated they feel about the procedure for the IPO. 15% for
difficulty and very less percent like 10% to understood IPO.
Q 5. Your specific knowledge on IPO issue and investment ?

Particular high Medium Low Very low

Easily comprehend specific 39 6 10 45
information IPO like
offer,price,subscription, etc
I try to know the purpose of any 20 30 10 40
IPO issue before investing that IPO
My knowledge on investing IPO 5 25 20 50
approved process is fair enough
I do understand more about 14 15 30 41
industrial performance before
investing in IPO

INTERPRITATION:

From the above table is shown that the knowledge on IPO issue and investment. Easily
comprehend specific information IPOs like offer,price ,subscription etc. very low score is
45% it means low knowledge about the IPO and high score is 39%.
 CHAPTER 4

FINDING AND CONCLUSION

FINDINGS

Issue and management of ipo

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.

An initial public offering (IPO) refers to the process of offering shares of a private
corporation to the public in a new stock issuance. Companies must meet requirements by
exchanges and the Securities and Exchange Commission (SEC) to hold an IPO.
CONCLUSION

Initial Public Offerings are generally considered beneficial as it lets the issuer company
enlarge their equity base and increases the exposure and prestige.

At the same time, it provides investors with an opportunity to gain handsome returns.
However, one must be watchful of the latest IPOs and have a clear understanding of
analysing financial metrics in order to identify the opportunities.
REFERENCES

www.chittorgarh.com

IPO- Planning and Process- Sanjay Khare

https://www.motilaloswal.com/

https://en.wikipedia.org/wiki/Wikipedia

https://www.investopedia.com/terms/d/derivative.a