IPO (Initial Public Offer

)

The first offering of shares to the public by a privately owned company. IPO’s are used by companies to raise new funds, or to achieve a listing on an exchange. The issuer normally offers the shares to the public through an underwriter who sets the price, promotes the offering and usually guarantees to take the shares at a certain price, to protect the issuer against adverse market movements. Also known as a flotation or going public. Advantages of Going Public The primary advantage a small business stands to gain through an initial public stock offering is access to capital. In addition, the capital does not have to be repaid and does not involve an interest charge. The only reward that IPO investors seek is an appreciation of their investment and possibly dividends. Besides the immediate infusion of capital provided by an IPO, a small business that goes public may also find it easier to obtain capital for future needs through new stock offerings or public debt offerings. A related advantage of an IPO is that it provides the small business's founders and venture capitalists with an opportunity to cash out on their early investment. Those shares of equity can be sold as part of the IPO, in a special offering, or on the open market some time after the IPO. However, it is important to avoid the perception that the owners are seeking to bail out of a sinking ship, or the IPO is unlikely to be a success. Another advantage IPO’s hold for small businesses is increased public awareness, which may lead to new opportunities and new customers. As part of the IPO process, information about the company is printed in newspapers across the country. The excitement surrounding an IPO may also generate increased attention in the business press. There are a number of laws covering the disclosure of information during the IPO process; however, so small business owners must be careful not to get carried away with the publicity. A related advantage is that the public company may have enhanced

credibility with its suppliers, customers, and lenders, which may lead to improved credit terms. Yet another advantage of going public involves the ability to use stock in creative incentive packages for management and employees. Offering shares of stock and stock options as part of compensation may enable a small business to attract better management talent, and to provide them with an incentive to perform well. Employees who become part-owners through a stock plan may be motivated by sharing in the company's success. Finally, an initial public offering provides a public valuation of a small business. This means that it will be easier for the company to enter into mergers and acquisitions, because it can offer stock rather than cash.

INDUSTRY PROFILE
Following diagram gives the structure of Indian Financial System:

They are:  Money markets (short-term)  Capital markets (long-term) According to institutional basis again classified in to two types. commercial papers. They are  Organized financial market  Non-organized financial market.  E. Again the money market is classified in to  Inter bank call money market  Bill market and  Bank loan market Etc.g. bank and government (SEBI) registered/controlled activities and intermediaries. The financial markets match the demands of investment with the supply of capital from various sources. MONEY MARKET: Money market is a place where we can raise short-term capital. individual professional and nonprofessionals. The unorganized market is composed of indigenous bankers. CD's etc. According to functional basis financial markets are classified into two types. These markets are the centers that provide facilities for buying and selling of financial claims and services. moneylenders. treasury bills.FINANCIAL MARKET Financial markets are helpful to provide liquidity in the system and for smooth functioning of the system. .. The organized market comprises of official market represented by recognized institutions.

etc. further and right issues to existing shareholders.Merchant banker/book building lead manager . and issue of debt instruments such as debentures. addition. The primary market is regulated by the Securities and Exchange Board of India (SEBI a government regulated authority). diversification and up gradation. Primary market operations include new issues of shares by new and existing companies. Debentures. Origination deals with the origin of the new issue. Primary market is also referred to as New Issue Market. underwriting. Again the capital market is classified in to two types and they are  Primary market and  Secondary market.: Shares.g. bonds. Distribution refers to the sale of securities to the investors. The following are the market intermediaries associated with the market: 1.CAPITAL MARKET: Capital market is a place where we can raise long-term capital. Function: The main services of the primary market are origination. and distribution. E. modernization. for new projects as also for expansion. PRIMARY MARKET: Primary market is generally referred to the market of new issues or market for mobilization of resources by the companies and government undertakings. public offers. Underwriting contract make the shares predictable and remove the element of uncertainty in the subscription. and Loans etc.

Investors’ protection in the primary market: To ensure healthy growth of primary market.2. Outstanding securities are traded in the secondary market. .Adviser to the issue 5. It is a market place which provides liquidity to the scrip’s issued in the primary market. which is commonly known as stock market or stock exchange.Banker to the issue 6. The term investor protection has a wider meaning in the primary market. The principal ingredients of investors’ protection are:  Provision of all the relevant information  Provision of accurate information and  Transparent allotment procedures without any bias. SECONDARY MARKET The primary market deals with the new issues of securities.Depository participant. Thus.Depository 7. the investing public should be protected. Trading activities in the secondary market are done through the recognized stock exchanges which are 23 in number including Over The Counter Exchange of India (OTCE). National Stock Exchange of India and Interconnected Stock Exchange of India. “The secondary market is a market where scrip’s are traded”.Registrar and transfer agent 3. More the number of companies entering the primary market. the growth of secondary market depends on the primary market. the greater are the volume of trade at the secondary market.Underwriter/broker to the issue 4.

Secondary market operations involve buying and selling of securities on the stock exchange through its members. The companies hitting the primary market are mandatory to list their shares on one or more stock exchanges in India. Listing of scrip’s provides liquidity and offers an opportunity to the investors to buy or sell the scrip’s. The following are the intermediaries in the secondary market: 1. Broker/member of stock exchange – buyers broker and sellers broker 2. Portfolio Manager 3. Investment advisor 4. Share transfer agent 5. Depository 6. Depository participants.

STOCK MARKETS IN INDIA:
Stock exchanges are the perfect type of market for securities whether of government and semi-govt bodies or other public bodies as also for shares and debentures issued by the joint-stock companies. In the stock market, purchases and sales of shares are affected in conditions of free competition. Government securities are traded outside the trading ring in the form of over the counter sales or purchase. The bargains that are struck in the trading ring by the members of the stock exchanges are at the fairest prices determined by the basic laws of supply and demand.

Definition of a stock exchange:
“Stock exchange means any body or individuals whether incorporated or not, constituted for the purpose of assisting, regulating or controlling the business of buying, selling or dealing in securities.” The securities include:  Shares of public company.  Government securities,Bonds

Functions of Stock Exchanges:
Stock exchanges provide liquidity to the listed companies. By giving quotations to the listed companies, they help trading and raise funds from the market. Over the hundred and twenty years during which the stock exchanges have existed in this country and through their medium, the central and state government have raised crores of rupees by floating public loans. Municipal corporations, trust and local bodies have obtained from the public their financial requirements, and industry, trade and commerce- the backbone of the country’s economy-have secured capital of crores or rupees through the issue of stocks, shares and debentures for financing their day-to-day activities, organizing new ventures and completing projects of expansion, diversification and modernization. By obtaining the listing and trading facilities, public investment is increased and companies were able to raise more funds. The quoted companies with wide public interest have enjoyed some benefits and assets valuation has become easier for tax and other purposes.

Regulatory Frame Work Of Stock Exchange
A comprehensive legal framework was provided by the “Securities Contract Regulation Act, 1956” and “Securities Exchange Board of India 1952”. Three tier regulatory structure comprising  Ministry of finance  The Securities And Exchange Board of India  Governing body

Members of the stock exchange:
The securities contract regulation act 1956 has provided uniform regulation for the admission of members in the stock exchanges. The qualifications for becoming a member of a recognized stock exchange are given below:
• • • • • • •

The minimum age prescribed for the members is 21 years. He should be an Indian citizen. He should be neither a bankrupt nor compound with the creditors. He should not be convicted for fraud or dishonesty. He should not be engaged in any other business connected with a company. He should not be a defaulter of any other stock exchange. The minimum required education is a pass in 12th standard examination.

STOCK EXCHANGE BOARD OF INDIA (SEBI)
The securities and exchange board of India was constituted in 1988 under a resolution of government of India. It was later made statutory body by the SEBI act 1992.according to this act, the SEBI shall constitute of a chairman and four other members appointed by the central government. With the coming into effect of the securities and exchange board of India act, 1992 some of the powers and functions exercised by the central government, in respect of the regulation of stock exchange were transferred to the SEBI.

public representatives and government representatives to the extent of 50% of total number of members. • All recognized stock exchanges will have to inform about transactions within 24 hrs. . SEBI GUIDELINES TO SECONDARY MARKETS: • Board of Directors of Stock Exchange has to be reconstituted so as to include non-members. Regulating the business in stock exchanges and any other securities market. Performing such functions and exercising such powers under the provisions of capital issues (control) act. Regulating substantial acquisition of shares and take over of companies. • Capital adequacy norms have been laid down for the members of various stock exchanges depending upon their turnover of trade and other factors. • • • • Promoting and regulating self-regulatory organizations.OBJECTIVES AND FUNCTIONS OF SEBI • • • To protect the interest of investors in securities. Registering and regulating the working of intermediaries associated with securities market as well as working of mutual funds. 1947and the securities to it by the central government. Prohibiting insider trading in securities.

and Collin Stewarts India Private Limited (Portfolio Management Services & Research along with institutional broking operations for Collin Stewarts which is the largest wealth management company in the UK). is now a part of the Sharyans and Inga Group. Intime Spectrum (India’s largest Registry & Transfer Agents). With an unblemished and reputed track record. ITIFSL will soon touch the pinnacles of success in the financial services industry by being a dominant force in the broking as well as the distribution arena. The Sharyans Group has an impressive portfolio of businesses under its fold which mainly fall under the real estate and financial services categories. ITIFSL. ITIFSL is all set become an imposing wealth management firm in the country by giving the best to its clients as well as stakeholders. Under the guidance of the Sharyans and Inga Group. originally promoted by the Investment Trust of India.COMPANY PROFILE: ABOUT THE ORGANISATION ITIFSL is emerging as one of the top most wealth management companies in India with a daily turnover of over 200 crores and 116 branches spread all over the country. ITI FSL has been set up to engage in • • • • • • • Stock Broking Institutional Broking Derivatives Depository Services Distribution of Investment Products Distribution of Insurance Commodities Broking . The prominent subsidiaries of this Group are Prebone Yamane (Country’s largest debt broking company).

. Emerging as one of the front-line Brokerage Houses and a dominant force in the Distribution arena. Wealth Manager and to deliver the Highest Standards of Service to customers and be Prominent in the horde of Finance Companies offering similar services". The company currently marks its presence in the following regions: • • • • • • • Andhra Pradesh Delhi Karnataka Maharashtra Madhya Pradesh Tamil Nadu West Bengal Mission: ITI FSL's mission is to deliver value with commitment. ITI FSL has a growing network of offices across several states to ensure easy accessibility to our clients wherever they are. we are continuously engaged in the assessment of market conditions to balance risk and reward so as to optimize returns to our investors. ITIFSL has over 116 Branch Offices spread across the country to offer better reach and service to the investor.Headquartered in Chennai. Vision: "To be the most Preferred Financial Advisor. Creator.

• • More than 100. (NSE). in semi urban. ITIFSL have heavily invested in technology (customized and ready to use software) involving front and back end operations offering seamless process and flawless execution and raising our service levels.Why ITIFSL? • ITIFSL’s services are offered under total confidentiality and integrity with the sole purpose of maximizing returns for their clients. • ITIFSL operate on an alert and well-defined system in risk management and settlement mechanism. Mumbai (BSE) and National Stock Exchange of India Ltd. • Equity Broking .380 terminals spread across 75 different locations. urban and metropolitan areas.000 retail clients serviced from the above locations.Corporate Member of The Stock Exchange. . • Pan India reach .

OFFERINGS ADVANTAGES TO INVESTERS .

Competence Gone are the days when financial planning simply required delivering application forms. he monitors your investments and ensures that you are on course to achieve your investment objectives. ITI FSL has Trading and Clearing Memberships with major Stock Exchanges in India to offer broking services across market segments at all of the National-level Exchanges. he suggests changes to your financial plan so that you are able to achieve your investment objectives as planned. The traditional "one-size fits all" approach is passé. If necessary. These value-add services form an integral part of our offering. Furthermore. it is important that you select the right financial planner. The financial planner should be capable enough to understand these needs and offer suitable products to fulfill them.Why you need a Financial Planner? The financial planner is someone who can help you invest across investment avenues based on your risk profile and investment objectives. For this purpose. Value-add services In addition to financial planning. you can be sure that you will get the best advice and service to achieve your financial goals. ITI FSL is a Depository Participant with CDSL. BSE. Post-investment. ITI provides related. To that end. value-add services that can assist you in the investment process. We have AMFI certified professionals to advice you on mutual funds. We also have memberships with commodity exchanges. With ITI fine staff of professionals. selecting the one that suits you the best is becoming a challenge. the recommendations offered by ITI are backed by solid research. Given the critical inputs provided by the financial planner in helping you achieve your financial goals. These tools can help you keep track of your investments. ITI provides you with the entire range of investment products from . AMFI etc. competence and skill set are the basic criteria that investors should look for in an investment planner. With the increasing list of investment avenues on offer. Your financial planner should be certified and registered as a broker or mutual fund agent with NSE. On-line tools and calculators are some of our more popular value-add services. this is a pre-requisite from the compliance point of view. Here are the reasons why ITI is the right planner for you… Certification/Membership More than anything else. One-stop shop Every individual has different needs and the same undergo a change over a period of time.

ITIFSL made it possible for clients to view transaction costs and ledger updates in real time. Equities ITIFSL provided the prospect of researched investing to its clients. which was hitherto restricted only to the institutions. In other words. we offer a "one-stop" solution for all your investment needs. mutual funds. ITI leveraged technology to bring the convenience of trading to the investor’s location of preference (residence or office) through computerized access. We are spread across the country so that you can have access to us always. PMS Our Portfolio Management Service is a product wherein an equity investment portfolio is created to suit the investment objectives of a client. depending on your risk-return profile. it leaves you in a soup because your financial plan is in limbo. We at ITI FSL invest your resources into stocks from different sectors. PRODUCTS AND SERVICES We are a one-stop financial services shop. with little or no backup. Research . Accessibility One of the common complaints from investors is that their financial planner is unavailable/inaccessible and therefore unable to provide adequate/prompt service. It is best to go with a financial planning initiative that is run by teams (as opposed to one-man setups) to ensure continuity of your financial plan.stocks. This is particularly common in a one-man setup where the financial planner's services begin and end with him. Research for the retail investor did not exist prior to ITIFSL. bonds to fixed deposits. This service is particularly advisable for investors who cannot afford to give time or don't have that expertise for day-to-day management of their equity portfolio. most respected for quality of its advice. If the financial planner is preoccupied with some important clients or if he re-locates. ITI has a team of professionals who are ever ready to serve you at any point of time. personalized service and cutting-edge technology.

On the whole.34 bn to Rs 20. Equity investment professionals routinely use our research and models as integral tools in their work. ITIFSL Equity Research is proud of its reputation for. The company was among the first to offer the facility of commodities trading in India’s young commodities market (the MCX commenced operations only in 2003). The commodities market has several products with different and non-correlated cycles. All you have to do is register with us and that’s all. and we want you to find the facts that you need. The Company’s commodities business provides a contracyclical alternative to equities broking. backed by in-depth research and advice from research house and tools configured as investor friendly. APPLY IN IPOs You could also invest in Initial Public Offers (IPO’s) online without going through the hassles of filling ANY application form/ paperwork SMS . No paperwork no queues and No registration charges. the business is fairly insulated against cyclical gyrations in the business. INVEST IN Mutual Fund ITIFSL offers you a host of mutual fund choices under one roof.02 bn. Average monthly turnover on the commodity exchanges increased from Rs 0. They choose Ford Equity Research when they can clear your doubts.Sound investment decisions depend upon reliable fundamental data and stock selection techniques. Commodities ITIFSL’s extension into commodities trading reconciles its strategic intent to emerge as a one-stop solutions financial intermediary. Its experience in securities broking has empowered it with requisite skills and technologies. Invest Online ITIFSL has made investing in Mutual funds and primary market so effortless.

Stay connected to the market: The trader of today. Following the opening of the sector in 1999-2000. The annuity based income generated from insurance intermediation result in solid core revenues across the tenure of the policy. The company’s entry into the insurance sector derisked the company from a predominant dependence on broking and equity-linked revenues. concurrently. subscribe to ITIFSL Stock Messaging Service and get Market on your Mobile! Insurance An entry into this segment helped complete the client’s product basket. a number of private sector insurance service providers commenced operations aggressively and helped grow the market. you are constantly on the move. We offer you a dedicated group for giving you the most personal attention at every level. it graduated the Company into a one-stop retail financial solutions provider. Roles and Responcibilities in Organisation: We will give updates to customers in . But how do you stay connected to the market while on the move? Simple. Direct and Affiliate channels. we have employed a multi pronged approach and reach out to customers via our Network. Wealth Management Service Imagine a financial firm with the heart and soul of a two-person organization. A worldleading wealth management company that sits down with you to understand your needs and goals. To ensure maximum reach to customers across India.

 Economic Outlook and Updates  Sector & Company Reports  Technical Recommendations  Daily Market Report  Daily Technical Outlook  Reports on New Fund Offerings  Weekly analysis of mutual funds – Fund Focus  Weekly debt report: Debt Dose  Offer daily technical calls through SMS to our clients KEY LEARNINGS IN ORGANISATION:  EQUITY  MUTUAL FUNDS  TAX SAVENGS SCHEMES IN MUTUAL FUNDS  ONLINE AND OFFLINE TRADING  IPO (INITIAL PUBLIC OFFER)  DERIVATIVES  FOREX MARKET  COMMODITIES  RISK-RETURN PROFILE IN FUTURES AND OPTIONS-S&P CNX NIFTY RESEARCH COMPETENCY .

• Services in this area range from the intra-day analysis of the most recent fundamental and technical developments affecting pricing to longer-term strategic research of supply. • The Team also publishes monographs on topics of broad interest to its customers. and current hedge activities and strategic thought in the various sectors of the market. developments in risk management. the Team undertakes analytical research on hedging and trading strategies. and inventory trends. . such as the impact of changing accounting standards. • Along with its price forecasting capability.• Market Outlooks and Strategy Analysis Market research at ITI financial services is structured to meet a wide variety of customer needs. demand.

REVIEW OF LITERATURE .

Over the last few years. Currently. There are six authorized primary dealers. In terms of the number of companies listed and total market capitalization. The number of listed companies increased from 5. the first being the Bombay Stock Exchange (BSE).000 by May 1998 and market capitalization has grown almost 11 times during the same period. Advanced technology and online-based transactions have modernized the stock exchanges. The portfolio restrictions on financial institutions’ statutory liquidity requirement are still in place. The debt market. there are 31 mutual funds. Banks and financial institutions have been holding a substantial part of these bonds as statutory liquidity requirement.OVERVIEW OF INDIAN FINANCIAL MARKETS Introduction There are 22 stock exchanges in India. out of which 21 . however. which began formal trading in 1875. is almost nonexistent in India even though there has been a large volume of Government bonds traded. making it one of the oldest in Asia. especially in the secondary market. A primary auction market for Government securities has been created and a primary dealer system was introduced in 1995. there has been a rapid change in the Indian securities market.968 in March 1990 to about 10. the Indian equity market is considered large relative to the country’s stage of economic development.

in 1987. Mutual funds were opened to the private sector in 1992. Trading practices were not transparent. The Securities and Exchange Board of India (SEBI) was established in 1988. and poor regulation of merchant bankers and underwriters. Among the processes that have already started and are soon to be fully implemented are electronic settlement trade and exchange-traded derivatives. and efficiency of market operations. Despite the rules it set. and there was a large amount of insider trading. the SEBI Act was enacted giving SEBI statutory status as an apex regulatory body. several measures were enacted to improve the fairness of the capital market. breaking the monopoly of the Unit Trust of India (UTI). and • No counterparty risk. lack of Brokers. Before 1992. including those relating to disclosure criteria. banks were allowed to enter this business. . The key ingredients that underlie market quality in India’s equity market are: • Exchanges based on open electronic limit order book • Nationwide integrated market with a large number of informed traders and fluency of short or long positions. And a series of reforms was introduced to improve investor protection.are in the private sector. In 1992. Its equity market will most likely be comparable with the world’s most advanced secondary markets within a year or two. problems continued to exist. Earlier. Recognizing the importance of increasing investor protection. integration of national markets. which maintains a dominant position. India has seen a tremendous change in the secondary market for equity. There have been significant reforms in the regulation of the securities market since 1992 in conjunction with overall economic and financial reforms. automation of stock trading. Fresh capital issues were controlled through the Capital Issues Control Act. many factors obstructed the expansion of equity trading. capital adequacy.

BSE shifted from open outcry to a limit order book market.Before 1995. This figure fell to Rs208 billion in 1995/96 and to Rs142 billion in 1996/97. The arbitrages are eliminating pricing discrepancies between markets. the prices in markets outside Mumbai were often different from prices in Mumbai. . In March 1995. The amount of capital issued has dropped from the level of its peak year. Explicit nationwide connectivity and implicit movement toward one national market has changed this situation. and so have equity prices. As a result. Similarly. Financial industry did not have equal access to markets and was unable to participate in forming prices. which started trading debt instruments in June 1994 and equity in November 1994. Currently. India’s stock markets were dominated by BSE in other parts of the country. The BSE-30 index or Sensex. markets in India used open outcry. compared with market participants in Mumbai (Bombay). These pricing errors limited order flow to these markets. a trading process in which traders shouted and hand signaled from within a pit. 17 of India’s stock exchanges have adopted open electronic limit order. NSE has established satellite communications which give all trading members of NSE equal access to the market. In 1994/95. The first exchange to be based on an open electronic limit order book was the National Stock Exchange (NSE). the Indian capital market has been in decline during the last three years. Before 1994. Rs276 billion was raised in the primary equity market. 1994/95. the sensitive index of equity prices. BSE and the Delhi Stock Exchange are both expanding the number of trading terminals located all over the country. RECENT DEVELOPMENTS AND POLICY ISSUES. motivated primarily by the need for greater transparency. Despite these big improvements in microstructure. One major policy initiated by SEBI from 1993 involved the shift of all exchanges to screen-based trading.

Also. the trading system has to be made more transparent. there was a reduced inflow of foreign investment after the Mexican and Asian financial crises. market infrastructure has to be improved as it hinders the efficient flow of information and effective corporate governance. it is time for regulatory authorities to make greater efforts to recover investors’ confidence and to further improve the efficiency and transparency of market operations.361 in September 1994 and fell during the following years. Market information is a crucial public good that should be disclosed or made available to all participants to achieve market efficiency. SEBI should also monitor more closely cases of insider trading. Not all of India’s 22 stock exchanges may be able to justify their existence. Accounting standards will have to adapt to internationally accept accounting practices.peaked at 4. A leading cause was that financial irregularities and overvaluations of equity prices in the earlier years had eroded public confidence in corporate shares. Secondly. The court system and legal mechanism should be enhanced to better protect small shareholders’ rights and their capacity to monitor corporate activities. In a sense. Thus. The trend all over the world is to consolidate and merge existing stock exchanges. . The Indian capital market still faces many challenges if it is to promote more efficient allocation and mobilization of capital in the economy. Firstly. India may need further integration of the national capital market through consolidation of stock exchanges. the market is now undergoing a period of adjustment. There is a pressing need to develop a uniform settlement cycle and common clearing system that will bring an end to unnecessary speculation based on arbitrage opportunities. Thirdly.

SEBI has announced several far-reaching reforms to promote the capital market and protect investor interests. while smaller regional exchanges are planning to consolidate by using centralized trading under a federated structure. EFT is important for problems such as direct payments of dividends through bank accounts. and the introduction of surveillance and monitoring systems. Further liberalization of interest rates. and setting up of clearing houses or settlement guarantee funds were made compulsory for stock exchanges. major stock exchanges in India have started locating computer terminals in far-flung areas. fully market-based issuance of Government securities and a more competitive banking sector will help in the development of a sounder and a more efficient capital market in India. Online trading systems have been introduced in almost all stock exchanges.Fourthly. The global trend is for the elimination of the traditional wall between banks and the securities market. and facilitating foreign institutional investment. Capital Market Reforms and Developments Reforms in the Capital Market Over the last few years. automation of trading and post trade systems. Thus. India’s banking system has yet to come up with good electronic funds transfer (EFT) solutions. Until the early 1990s. the trading . Stock exchanges were permitted to expand their trading to locations outside their jurisdiction through computer terminals. Trading is much more transparent and quicker than in the past. The capital market cannot thrive alone. Reforms in the secondary market have focused on three main areas: structure and functioning of stock exchanges. eliminating counterparty risk. Computerized online trading of securities. Securities market development has to be supported by overall macroeconomic and financial sector environments. reduced fiscal deficits. it has to be integrated with the other segments of the financial system. the payment system has to be improved to better link the banking and securities industries.

The Indian capital market has experienced a process of structural transformation with operations conducted to standards equivalent to those in the developed markets. Trading on all stock exchanges was through open outcry. The regulatory structure was fragmented and there was neither comprehensive registration nor an apex body of regulation of the securities market. Most stock exchanges have introduced online trading and set up clearing houses/corporations. Since 1992. and market intermediaries were largely unregulated. remain as obstacles to the improvement of Indian capital market efficiency. especially in the secondary market for equity. there has been intensified market reform. . However.and settlement infrastructure of the Indian capital market was poor. including lack of confidence in stock investments. There was no prohibition on insider trading. A depository has become operational for scrip less trading and the regulatory structure has been overhauled with most of the powers for regulating the capital market vested with SEBI. settlement systems were paper-based. It was opened up for investment by foreign institutional investors (FII’s) in 1992 and Indian companies were allowed to raise resources abroad through Global Depository Receipts (GDRs) and Foreign Currency Convertible Bonds (FCCBs). resulting in a big improvement in securities trading. The primary and secondary segments of the capital market expanded rapidly. many problems. or fraudulent and unfair trade practices. institutional overlaps. Stock exchanges were run as “brokers clubs” as their management was largely composed of brokers. and other governance issues. with greater institutionalization and wider participation of individual investors accompanying this growth.

The disclosure of short sales and long purchases is now required at the end of the day to reduce price volatility and further enhance the integrity of the secondary market. In 1991/92. it is not necessary to take or deliver the shares. Since 1995/1996. In other .15 billion was raised in the primary market. A mark-to-market margin and intraday trading limit have also been imposed. smaller amounts have been raised due to the overall downtrend in the market and tighter entry barriers introduced by SEBI for investor protection . Rs62. or sells and subsequently buys. Legislative and regulatory changes have facilitated the corporatization of stockbrokers.SEBI has taken several measures to improve the integrity of the secondary market.21 billion in 1994/95.PRIMARY MARKET Since 1991/92. The difference between the selling and buying prices can be paid or received. Capital adequacy norms have been prescribed and are being enforced. if an Indian investor buys and subsequently sells the same number of shares of stock during a settlement period. the primary market has grown fast as a result of the removal of investment restrictions in the overall economy and a repeal of the restrictions imposed by the Capital Issues Control Act. MARK-TO-MARKET MARGIN AND INTRADAY LIMIT Under the current clearing and settlement system. however. This figure rose to Rs276. Further. which are applied in times of excessive volatility. the stock exchanges have put in place circuit breakers.

. however. calculated as the difference between buying or selling price and the closing price of that stock at the end of that day. Every broker is subject to these requirements. the margin is not payable. BSE and NSE impose on members a more stringent daily margin. The daily mark-to-market margin is a margin on a broker’s daily position. thus possible at a relatively low cost. This cost the broker about 0. The intraday trading limit is the limit to a broker’s intraday trading volume. It will be released on the pay-in day for the settlement period. assuming that the broker’s funding cost is about 24-36 percent (Endo 1998). Until the notional loss exceeds the threshold limit.2 percent of the notional loss. FIIs and domestic institutional investors are. This margin is payable by a stockbroker to the stock exchange in cash or as a bank guarantee from a scheduled commercial bank. Accordingly. the squaring-off of the trading position during the same settlement period results in non delivery of the shares that the investor traded. SEBI has introduced a daily mark-to-market margin and intraday trading limit. Each stock exchange may take any other measures to ensure the safety of the market. However. A daily mark-to-market margin is 100 percent of the notional loss of the stockbroker for every stock.words. since nondelivery transactions are limited only to individual investors. on a net basis. there is a threshold limit of 25 percent of the base minimum capital plus additional capital kept with the stock exchange or Rs1 million.4-1. whichever is lower. not permitted to trade without delivery. One of SEBI’s primary concerns is the risk of settlement chaos that may be caused by an increasing number of nondelivery transactions as the stock market becomes excessively speculative. including one based on concentration of business. The margin money is held by the exchange for 612 days.

public sector banks and insurance companies set up mutual funds. MUTUAL FUNDS Indian investors have been able to invest through mutual funds since 1964. trustees. permitted the entry of private sector mutual funds. and. whether listed or unlisted.e. under which they have enjoyed certain tax benefits. purchase plus sale. i. which brought competition to the mutual fund industry.Thus. and asset Management Company. Since 1993. when UTI was established. they have to deposit additional capital with the exchange and this cannot be withdrawn for six months. speculative trading without the delivery of shares is no longer cost-free. The 1993 Regulations have been revised on the basis of the recommendations of the Mutual Funds 2000 Report prepared . FIIs registered with SEBI may invest in domestic mutual funds. and asset management. custodianship.3 times the base minimum capital deposited with the exchange on a gross basis. custodian.. usually the fund sponsor or its subsidiary. This limit is 33. were often performed by one body. Indian mutual funds have been organized through the Indian Trust Acts. The notification of the SEBI (Mutual Fund) Regulations of 1993 brought about a restructuring of the mutual fund industry. This is in contrast to the previous practice where all three functions. namely trusteeship. An arm’s length relationship is required between the fund sponsor. This has resulted in the introduction of new products and improvement of services. Between 1987 and 1992. The regulations prescribed disclosure and advertisement norms for mutual funds. Each broker’s trading volume during a day is not allowed to exceed the intraday trading limit. In the event of brokers wishing to exceed this limit. private sector mutual funds have been allowed. for the first time.

on the basis of which unit holders have invested. an FII does not require any further permission to buy or sell securities or to transfer funds in and out of the country. . FOREIGN INSTITUTIONAL INVESTORS FIIs have been allowed to invest in the Indian securities market since September 1992 when the Guidelines for Foreign Institutional Investment were issued by the Government. The revised regulations require disclosures in terms of portfolio composition. Foreign investors. with the asset Management company and trustees. and to remit and repatriate funds. transactions by schemes of mutual funds with sponsors or affiliates of sponsors. The revised regulations strongly emphasize the governance of mutual funds and increase the responsibility of the trustees in overseeing the functions of the asset management company. whether registered as FIIs or not. open foreign currency and rupee bank accounts. and also with respect to personal transactions of key personnel of asset management companies and of trustees. The SEBI (Foreign Institutional Investors) Regulations were enforced in November 1995. largely based on these Guidelines. The regulations require FIIs to register with SEBI and to obtain approval from the Reserve Bank of India (RBI) under the Foreign Exchange Regulation Act to buy and sell securities.by SEBI. Mutual funds are now required to obtain the consent of investors for any change in the “fundamental attributes” of a scheme. Once SEBI registration has been obtained. subject to payment of applicable tax. may also invest in Indian securities outside the country.

Objectives of the Study: 1. To the Selection of portfolio 2. To study the IPO returns in the year 2009 & 2010 3. To comparative analysis of IPO portfolio with Bench mark index portfolio .

Data has been Collected for companies which opted for IPO’S for public in the year 2009 & 10 along with Book Running Lead Managers. (No.e. Therefore the Investment amount applied for IPO’S is considered as bidding amount. in this project it is considered for Maximum bid that a retail investor can bid for i. issue price. 1 Lakh. Opening and Closing dates of IPO’S. where the probability of getting allotment will be lower when compare to retail individual investor. Rs. Listing Price etc. . The allotted shares will be credited in the respective investor’s Demat account and the remaining amount will be send back to the investor called Refund order. As Per the SEBI norms. the investor may get or may not get the allotment for the applied amount. and eliminated the companies which are issued Further Public Offers (FPOs) and Public Offers (Pos). No of Days Open for IPO.Methodology: The data collected for IPO’S issued in the years 2009 & 2010 taken as a Project Instrument. If the investment exceeds the specified limit then the bid application will be treated as Institutional bidder. of allowed lots* cut-off price) Even though the retail investor applies for IPO at the maximum allowed cap. So. One lakh or near the bid quantity. Retail Individual investors can bid up to Rs.(Difference between opening and closing dates of IPO’S issued).

Here the Listing price is the closing price of the stock on the day of listing.So here it is considered that the investment is the number of shares allotted multiplied by issue price. For the comparative study of IPO’s portfolio returns with the bench mark index of NIFTY the average rate of return is calculated. The Shares Allotment Data of Retail individual investors have been collected from the respective Registrars According to SEBI. The difference between the issue price and listing price is the absolute return in a particular public issue. where the probability of liquidity is possible. the company has to list its shares in the pre defined stock exchanges on or before 21 days from the issue closing day. .

S&P CNX Nifty as Project Instrument: S&P CNX NIFTY AS RETURN COMPARATIVE INSTRUMENT 1. 3. It is a market capitalization index which represents the aggregation of 50 stock prices. One cannot manipulate the index value unlike the underlying stock price. Among all the available stocks S&P CNX NIFTY index highly liquid and represent the growth of Economy. 2. . 4. It is the bench mark portfolio to compare with selective portfolio.

4.com 6.com. Chittorgarh.capitalmarkets. Magazines. www.com www.Data Collection: The data collected related to IPO for the period Jan 2009 . Websites: 1. 3.com www.glossary. and Newspapers etc.investopedia. www. www.reuters. 5.moneycontrol.com .June 2010 from the following websites. 2.com. www.Nseindia.

Even incase of allotment ratio it is assumed that the investor will get the allotment. Data Interpretation: . It is assumed that the Risk and Return is calculated for the investment of one lakh.Assumptions: • • • • • In case of firm allotment the investors get the shares. It is assumed that the investor can sell his portfolio considering the last half an hour average price. It is assumed that the refund will take three weeks from the closing of issue.

to 36/70/. 2009 Sep 16. 1 IPO investment portal provide recent IPO information from primary stock market.to 75/- . IPO Ratings.to 85/100/. debt repayment. 2009 Feb 05.2009 Sep 22.to 60/29/. 2009 Jul 20.to 120/90/. 2009 Jun 23.to 325/80/. 2009 Jun 26. 2009 Aug 27. 2009 Jul 14. These forms are usually available with stock brokers for free. 2009 Sep 01. IPO News and IPO Performance Tracker. 2009 Jun 09.2009 OFFER PRICE 75/.2009 Sep 24.com. and a host of other uses. 2009 Feb 09. 2009 Jul 23. the ISSUER COMPANY GEMINI ENGI-FAB LIMITED IPO EDSERV SOFTSYSTEMS LIMITED IPO RISHABHDEY TECHNOCABLE LIMITED IPO MAHINDRA HOLIDAYS& RESORTS INDIA LIMITED IPO EXCEL INFOWAYS LIMITED IPO RAJ OIL MILLS LIMITED IPO ADANI POWER LIMITED IPO NHPC LIMITED IPO JINDAL COTEX LIMITED IPO GLOBUS SPIRITS LIMITED IPO OIL INDIA LIMITED IPO PIPAVAV SHIPYARD LIMITED IPO EURO MULTIVISION LIMITED IPO ISSUE OPEN Feb 03. 2009 Jul 17.to 75/90/. 2009 Aug 31. The companies going public raises funds through IPO's for working capital. 2009 Aug 12. 2009 Aug 07. and Reliance Money. acquisitions.to 33/275/. IPO Grading.to 1050/55/. Chittorgarh. Investor can also apply for IPO Stocks online through Online Stock Brokers like ICICI bank. IPO Bidding Information.IPO’S ISSUED 2009 & 2010(till June): Public Offer (IPO). Grey Market Premiums of IPO's.to 100/30/. Investor can apply for IPO Stocks by filling an IPO Application Form. is the first sale of shares by the privately owned company to public. IPO Reviews. India's No.to 100/950/. 2009 Sep 10. IPO Tools available on this website includes IPO Allotment Status. 2009 Sep 02.2009 Jun 04. 2009 ISSUE CLOSE Feb 06. 2009 Sep 07. 2009 Jul 31.to 80/55/. 2009 Sep 18.to 60/70/. 2009 Jul 28. Share Khan.

2010 Jan 20.to 225/70/. 2010 Feb 18. 2010 Jan 18. 2010 Mar 15. 2009 Nov 27.to 66/75/.2010 Feb 02. 2010 Jan 29.to 486/40/.2010 Feb 03.to 212/155/. 2009 Dec 11. 2009 Jan 13. 2010 Feb 02. 2010 Feb 22.to 90/243/. 2009 Nov 04. 2010 Jan 27.to 45/195/.THINKSOFT GLOBAL SERVICES LIMITED IPO INDIABULLS POWER LIMITED IPO DEN NETWORKS LIMITED IPO ASTEC LIFE SCIENCES LIMITED IPO COX & KINGS(INDIA) LIMITED IPO MBL INFRASTRUCTURES LIMITED IPO JSW ENERGY LIMITED IPO GODREJ PROPERTIES LIMITED IPO D B CORP LIMITED IPO INFINITE COMPUTER SOLUTIONS INDIA LIMITED IPO JUBILANT FOODWORKS LIMITED IPO AQUA LOGISTICS LIMITED IPO THANGAMAYIL JEWELER LIMITED IPO SYNCOM HEALTHCARE LIMITED IPO VASCON ENGINEERS LIMITED IPO D B REALTY LIMITED IPO EMMBI POLYARNS LIMITED IPO ARSS INFRASTRUCTURE PROJECTS LIMITED IPO HATCHWAY CABLE & DATACOM LIMITED IPO TEXMO PIPES & PRODUCTS LIMITED IPO MAN INFRACONSTRUCTIONS LIMITED IPO UNITED BANK OF INDIA IPO DQ ENTERTAINMENT LIMITED IPO PRADIP OVERSEAS LIMITED IPO IL&FS TRANSPORTATION NETWORKS LIMITED IPO PERSIST SYSTEMS LIMITED IPO SHREE GANESH Sep 22.to 165/135/.to 110/242/. 2009 Dec 01. 2009 Dec 09. 2010 Mar 15. 2010 115/.to 265/85/.to 82/316/. 2009 Oct 30.to 270/- . 2009 Oct 15.2010 Jan 29.2010 Feb 11. 2010 Oct 01.2009 Dec 11. 2009 Nov 20. 2010 Mae 23. 2009 Oct 28.to 80/100/.to 252/60/.2010 Feb 08.to 310/260/. 2010 Feb 25.to 125/40/.2010 Feb 16.2010 Mar 09. 2009 Dec 09. 2009 Dec 15.to 450/210/.2010 Jan 29. 2009 Jan 11.2010 Feb 11.2010 Jan 27. 2009 Oct 29.to 258/290/.to 530/185/.to 75/65/. 2009 Oct 12.2010 Feb 09.to 75/165/.to 45/410/. 2010 Mar 11. 2010 Mar 19. 2010 Jan 27. 2010 Mar 19. 2010 Mar 10.2010 Jan 29. 2010 Jan 25.2101 Feb 23. 2009 Nov 18.to 115/490/.to 205/77/. 2010 Feb 01. 2010 Mar 11.to 185/468/.to 180/100/. 2010 Feb 19.to 145/200/. 2010 Mar 17.to 330/165/. 2009 Dec 07.

2010 Jun 29. 2010 Apr 21. 2010 Jun 14.JEWELRYHOUSE LIMITED IPO INTRASOFT TECHNOLOGIES LIMITED IPO GOENKA DIAMOND & JEWELS LIMITED IPO TALWALKERS BETTER VALUE FITNESS LIMITED IPO NITESH ESTATES LIMITED IPO TARAPUR TRANSFORMERS LIMITED IPO MANNDHANA INDUSTRIES LIMITED IPO TARA HEALTH FOODS LIMITED IPO JAYPEE INFRATECH LIMITED(JIL)IPO SATLUJ JAL VIDYUT NIGAM LIMITED (SJVNL) IPO FATPIPE NETWORKS INDIA LIMITED IPO PARABOLIC DRUGS LIMITED IPO TECHNOFAB ENGINEERING LIMITED IPO ASTER SILICATES LIMITED IPO Mar 23. 2010 Jul 02. 2010 Jun 28.to 56/65/. 2010 Apr 29. 2010 Mar 26. 2010 Apr 23. 2010 Apr 27.2010 Apr 28.to 145/135/.to 85/75/.to 85/230/.to 185/102/. 2010 May 04.to 240/112/.to 128/54/. 2010 Jun 17. 2010 May 03. 2010 Apr 26. 2010 Apr 29.to 118/- . 2010 Apr 23. 2010 Apr 27. 2010 Apr 30.to 75/120/.to 145/123/.to 130/175/.to 26/82/. 2010 Mar 23. 2010 Jun 07. 2010 Apr 28. 2010 Mar 26. 2010 Jun 24. 2010 Jun 09.to 117/23/. 2010 Apr 29. 2010 137/.

45 37.64 20.28 44.65 254.40 75.40 49.77 37.45 32.55 27.93 73.00 174.80 119.95 127.5 16.17 110.67 70.45 -53.73 27.45 138.05 56.35 226.10 30.45 256.22 55.60 -38.27 286.55 51.85 .55 1373.78 2.15 441.80 212.48 -30.55 40 477.15 588.54 100.RATE OF RETURNS FOR THE IPO’S LISTED IN 2009 & till June 2010 As on Closing on Aug 11.55 141.25 Rate of Return -64. 2010 ISSUER COMPANY GEMINI ENGI-FAB LIMITED IPO EDSERV SOFTSYSTEMS LIMITED IPO RISHABHDEY TECHNOCABLE LIMITED IPO MAHINDRA HOLIDAYS& RESORTS INDIA LIMITED IPO EXCEL INFOWAYS LIMITED IPO RAJ OIL MILLS LIMITED IPO ADANI POWER LIMITED IPO NHPC LIMITED IPO JINDAL COTEX LIMITED IPO GLOBUS SPIRITS LIMITED IPO OIL INDIA LIMITED IPO PIPAVAV SHIPYARD LIMITED IPO EURO MULTIVISION LIMITED IPO THINKSOFT GLOBAL SERVICES LIMITED IPO INDIABULLS POWER LIMITED IPO DEN NETWORKS LIMITED IPO ASTEC LIFE SCIENCES LIMITED IPO COX & KINGS(INDIA) LIMITED IPO MBL INFRASTRUCTURES LIMITED IPO JSW ENERGY LIMITED IPO GODREJ PROPERTIES LIMITED IPO D B CORP LIMITED IPO INFINITE COMPUTER SOLUTIONS INDIA LIMITED IPO JUBILANT FOODWORKS OFFER PRICE 75/55/29/275/80/100/90/30/70/90/950/55/70/115/40/195/77/316/165/100/490/185/155/135/- CLOSING PRICE 26.40 51.40 743.06 -48.30 12.62 -2.80 227.40 86.71 97.50 177.

2 -17.00 202.19 54/65/120/175/102/- 38.00 208.64 49.LIMITED IPO AQUA LOGISTICS LIMITED IPO THANGAMAYIL JEWELER LIMITED IPO SYNCOM HEALTHCARE LIMITED IPO VASCON ENGINEERS LIMITED IPO D B REALTY LIMITED IPO EMMBI POLYARNS LIMITED IPO ARSS INFRASTRUCTURE PROJECTS LIMITED IPO HATCHWAY CABLE & DATACOM LIMITED IPO TEXMO PIPES & PRODUCTS LIMITED IPO MAN INFRACONSTRUCTIONS LIMITED IPO UNITED BANK OF INDIA IPO DQ ENTERTAINMENT LIMITED IPO PRADIP OVERSEAS LIMITED IPO IL&FS TRANSPORTATION NETWORKS LIMITED IPO PERSIST SYSTEMS LIMITED IPO SHREE GANESH JEWELRYHOUSE LIMITED IPO INTRASOFT TECHNOLOGIES LIMITED IPO GOENKA DIAMOND & JEWELS LIMITED IPO TALWALKERS BETTER VALUE FITNESS LIMITED IPO NITESH ESTATES LIMITED IPO TARAPUR TRANSFORMERS LIMITED IPO MANNDHANA INDUSTRIES LIMITED IPO TARA HEALTH FOODS LIMITED IPO JAYPEE INFRATECH 200/70/65/165/468/40/410/210/85/243/60/75/100/242/290/260/137/135/123/- 494.70 109.27 -12.58 -14.14 60.45 336.46 -35.04 -34.20 89.60 298.95 37.70 87.90 89.82 -57.00 88.77 36.40 105.20 163.50 46.82 38.16 .08 5.40 23.90 150.00 216.62 -41.45 -12.50 174.80 143.40 49.87 -42.00 17.50 43.00 -33.81 69.10 147.34 -3.15 84.50 -27.83 -36.20 1297.00 408.00 466.40 165.

33 20.48 16.80 95.11 -20.54 DATA INTERPRETATION: .54 -22.25 89 3.56 58.LIMITED(JIL)IPO SATLUJ JAL VIDYUT NIGAM LIMITED (SJVNL) IPO FATPIPE NETWORKS INDIA LIMITED IPO PARABOLIC DRUGS LIMITED IPO TECHNOFAB ENGINEERING LIMITED IPO ASTER SILICATES LIMITED IPO 23/82/75/230/112/- 23.25 276.

32 30.09 55.Comparison Of IPO’s & Nifty Returns Quarterly For Year 2009 Month & Year Jan .76 25.2 .Dec 2009 Percentage of IPO'S Return 111.Mar 2009 Apr .24 1.Sep 2009 Oct .Jun 2009 Jul .28 Comparison Of IPO’s & Nifty Returns Quarterly For Year 2010 Month & Year Jan-mar 2010 Apr-Jun 2010 Percentage of IPO'S Return 33.

Sep 0ct .Jun Total Positive Returns 11 5 16 Negative Returns 9 6 15 31 .Dec Total Positive Returns 1 2 8 6 17 Negative Returns 1 0 2 2 5 22 Year 2010 Month Jan .Jun Jul .Positive and Negative for year 2009 & 2010 Year 2009 Month Jan .Mar Apr .Mar Apr .

Sponge Iron 18% Pharmac eutic als .Total no of companies Trading Tex tiles Computers .Educ ation Cons truction 8% 3% 3% 3% 3% 3% 3% 3% 8% 5% 3%3% 21% Telec ommunic ations .Serv ice Prov ider Entertainment Printing & Stationery Pac kaging Sugar Misc ellaneous A uto A nc illaries Pers onal Care .Priv ate Sector Transport .Bulk Drugs Banks .Indian Steel .A irlines Pow er Generation A nd Supply Finance & Inv es tments Elec tric Equipment 3% 3% 8% 3% 3% The above graph shows the different industries that are opt for the IPO’s in the year 2009 .Indian .

Processing Entertainment / Electronic Media Softw are Miscellaneous 2% 2% 2% 2% 2% 2% 4% 2% 9% 2% 4% Construction Pow er Generation And Supply 16% Diamond Cutting / Jew ellery Chemicals Steel .Private Sector Aluminium and Aluminium Products Telecommunications Equipment Food .Indian Auto Ancillaries Banks .Softw are Medium / Small The above pie chart shows the different industries that are opt for the IPO’s in the year 2010 .Indian Computers .Tiles / Sanitaryw are Cement Finance & Investments Sugar 9% 7% 2% 4% 2% 4% 2% 2% 7% 4% 4% 2% 9% Refineries Pharmaceuticals .Medium / Small Ceramics .A irlines Printing & Stationery Personal Care .Hotels Total no of companies Textiles .Indian Formulations Engineering Transport .Processing .

ISSUER COMPANY GEMINI ENGI-FAB LIMITED IPO EDSERV SOFTSYSTEMS LIMITED IPO RISHABHDEY TECHNOCABLE LIMITED IPO MAHINDRA HOLIDAYS& RESORTS INDIA LIMITED IPO EXCEL INFOWAYS LIMITED IPO RAJ OIL MILLS LIMITED IPO ADANI POWER LIMITED IPO OFFER PRICE 75/55/29/275/80/100/90/- CLOSING PRICE 26.27 286.80 212.06 -48.45 37.93 73.40 49.60 -38.55 40 477.78 .05 56.55 51.10 Rate of Return -64.55 141.

.45 -53.71 97.48 .67 70.64 20.28 44.55 1373.50 177.45 138.54 100.45 32. ISSUER COMPANY NHPC LIMITED IPO JINDAL COTEX LIMITED IPO GLOBUS SPIRITS LIMITED IPO OIL INDIA LIMITED IPO PIPAVAV SHIPYARD LIMITED IPO EURO MULTIVISION LIMITED IPO THINKSOFT GLOBAL SERVICES LIMITED IPO OFFER PRICE 30/70/90/950/55/70/115/- CLOSING PRICE 30.55 Rate of Return 2.17 110.80 119.

65 254.40 743.80 227.5 16.40 51.77 37.73 27.30 .40 75.45 256.ISSUER COMPANY INDIABULLS POWER LIMITED IPO DEN NETWORKS LIMITED IPO ASTEC LIFE SCIENCES LIMITED IPO COX & KINGS(INDIA) LIMITED IPO MBL INFRASTRUCTURES LIMITED IPO JSW ENERGY LIMITED IPO GODREJ PROPERTIES LIMITED IPO D B CORP LIMITED IPO OFFER PRICE 40/195/77/316/165/100/490/185/- CLOSING PRICE 27.95 127.40 86.62 -2.22 55.00 Rate of Return -30.15 588.

00 -33.15 441.35 226.00 Rate of Return 12.50 174.40 105.ISSUER COMPANY INFINITE COMPUTER SOLUTIONS INDIA LIMITED IPO JUBILANT FOODWORKS LIMITED IPO AQUA LOGISTICS LIMITED IPO THANGAMAYIL JEWELER LIMITED IPO SYNCOM HEALTHCARE LIMITED IPO VASCON ENGINEERS LIMITED IPO OFFER PRICE 155/135/200/70/65/165/- CLOSING PRICE 174.85 147.45 .80 143.50 43.08 5.25 494.

40 49.62 -41.ISSUER COMPANY D B REALTY LIMITED IPO EMMBI POLYARNS LIMITED IPO ARSS INFRASTRUCTURE PROJECTS LIMITED IPO HATCHWAY CABLE & DATACOM LIMITED IPO TEXMO PIPES & PRODUCTS LIMITED IPO MAN INFRACONSTRUCTIONS LIMITED IPO OFFER PRICE 468/40/410/210/85/243/- CLOSING PRICE 408.34 -3.45 336.00 202.00 17.64 .90 Rate of Return -12.20 1297.00 216.82 -57.82 38.

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50 46.14 60.ISSUER COMPANY UNITED BANK OF INDIA IPO DQ ENTERTAINMENT LIMITED IPO PRADIP OVERSEAS LIMITED IPO IL&FS TRANSPORTATION NETWORKS LIMITED IPO PERSIST SYSTEMS LIMITED IPO SHREE GANESH JEWELRYHOUSE LIMITED IPO OFFER PRICE 60/75/100/242/290/260/- CLOSING PRICE 89.00 466.27 -12.70 109.70 87.60 298.46 .20 Rate of Return 49.40 23.40 165.83 -36.

ISSUER COMPANY INTRASOFT TECHNOLOGIES LIMITED IPO GOENKA DIAMOND & JEWELS LIMITED IPO TALWALKERS BETTER VALUE FITNESS LIMITED IPO NITESH ESTATES LIMITED IPO TARAPUR TRANSFORMERS LIMITED IPO MANNDHANA INDUSTRIES OFFER PRICE 137/135/123/- CLOSING PRICE 89.00 88.58 .87 -42.20 163.81 69.77 36.90 -27.19 54/65/120/- 38.00 208.10 Rate of Return -35.04 -34.95 37.

LIMITED IPO .

50 23.2 -17.25 89 Rate of Return -14.11 -20.80 95.54 .16 3.54 -22.33 20.15 84.ISSUER COMPANY TARA HEALTH FOODS LIMITED IPO JAYPEE INFRATECH LIMITED(JIL)IPO SATLUJ JAL VIDYUT NIGAM LIMITED (SJVNL) IPO FATPIPE NETWORKS INDIA LIMITED IPO PARABOLIC DRUGS LIMITED IPO TECHNOFAB ENGINEERING LIMITED IPO ASTER SILICATES LIMITED IPO OFFER PRICE 175/102/23/82/75/230/112/- CLOSING PRICE 150.48 16.56 58.25 276.

3.6 Edserv Soft systems Ltd has given highest return (286.6 & 35.Findings 1. The highest return (226.. 2.85%) has given by Jubilant Food works Limited IPO in the year 2010 and the lowest return has given by Emmbi Polyarns Limited IPO (-57) . The IPO’S returns for the year 2009 and 2010 IPO’S Return : 137.27%) which has given by Gemini Engi-Fab ltd.and the lowest return (-64.45%) in the year 2009.

4. 2.37) and 2010 (265.28) The average days open for IPO for year 2009(12 days) and 2010(4 days). The returns of IPO’s are higher when compare to benchmark portfolio of Nifty. The average listing price for year 2009(263. The average quarterly positive returns are more comparing with the negative returns. An investor can expect average return is 28% with the 63% probability of getting positive returns. 6. The average listing period for year 2009(17days) and 2010(6days). There is a probability of listing a stock in positive is 63%and negative is 37% 3. 7. suggestions 1. . So an investor can invest in IPO’S for better returns. 5.

. The categories which are FIIS. This analysis is considered only for Retail individual investors. Public offers and further public offers are eliminated in the analysis 5. taxes and opportunity cost are not considered. 2. 4.Limitations 1. Brokerage. 3. IPO’s of 2010 are considered till june only. In this Project the listing price is the last half an hour average price. 6. Non institutional investors and qualified institutional buyers are not considered for this analysis.

reuters.com 4.3.chittorgarh.com 5 www.asp? FormIPO_Page=1.moneypore.com 3.Bibliography 1.www.com/ipo/ipo_list.com 2.www.www.2.glossary.nseindia.www. .capitalmarket.

. promotes the offering and usually guarantees to take the shares at a certain price. to protect the issuer against adverse market movements. IPO’s are used by companies to raise new funds. or to achieve a listing on an exchange. The issuer normally offers the shares to the public through an underwriter who sets the price. Also known as a flotation or going public.Glossary: Initial Public Offering The first offering of shares to the public by a privately owned company.

A benchmark security is usually the most recent security of its type issued in a large quantity. which is lead-managing a new issue to ascertain the likely levels of demand for a security at different prices. of financial instruments. Indices are usually created by measuring the value of a number of securities. . Benchmark: A standard used for comparison. This can be at par or face value. at a certain date and letting that value be represented by 100. It is designed to prevent an issue being undersubscribed because of a large discrepancy between the issue price and the price at which the security starts trading on the secondary market. A benchmark issue is highly liquid. Underwriter: A company or other entity that administers the public issuance and distribution of securities from a corporation or other issuing body. It sets the standard for the rest of the market. or holding. or at a discount or premium Portfolio: An investor's collection. Subsequent changes in the index can be easily perceived in comparison with that 100 base number Book Building: An exercise by an investment bank.Issue Price: The price at which securities are sold on issue. Index A composite of values designed to measure change in a market or an economy. An underwriter works closely with the issuing body to determine the offering price of the securities. buys them from the issuer and sells them to investors via the underwriter's distribution network. or an economic indicator.

So you don't have to possess any physical certificates showing that you own these shares. or retain the securities themselves. Demat account : Demat refers to a dematerialised account.Underwriters generally receive underwriting fees from their issuing clients. 25 of Wipro. the DP will provide you with periodic statements of holdings and transactions. So it is just like a bank account where actual money is replaced by shares. All these will show in your demat account. they are adjusted in your account. However. If they can't sell all of the securities at the specified offering price. Just as you have to open an account with a bank if you want to save your money. 45 of HLL and 100 of ACC. They are all held electronically in your account. As you buy and sell the shares. to open your demat account. You have to approach the DPs (remember. Trading Account: . Let's say your portfolio of shares looks like this: 40 of Infosys. Just like a bank passbook or statement. they are like bank branches). they may be forced to sell the securities for less than they paid for them. you need to open a demat account if you want to buy or sell stocks. underwriters assume the responsibility of distributing a securities issue to the public. make cheque payments etc. but they also usually earn profits when selling the underwritten shares to investors.

or as principals for their own accounts. An account held at a financial institution and administered by an investment dealer that the account holder uses to employ a trading strategy rather than a buy-and-hold investment strategy. One account may be a registered account for their retirement savings. . another may be a margin account. An account similar to a traditional bank account. foreign cash. Though trading accounts are traditionally thought to hold only stocks.1. a trading account can hold cash. Stock Exchanges in India Stock Exchanges are an organized marketplace. and is administered by an investment dealer 2. The members may act either as agents for their customers. either corporation or mutual organization. and another may be a trading account used for conducting day-trading activities. Stock exchanges also facilitates for the issue and redemption of securities and other financial instruments including the payment of income and dividends. holding cash and securities. where members of the organization gather to trade company stocks or other securities. another account may be a buy-and-hold account for their long-term stocks. securities and a number of other types of investments Investors who use a number of trading strategies or have a number of brokerage accounts may separate their accounts in order to avoid confusion. The trade on an exchange is only by members and stock broker do have a seat on the exchange. The record keeping is central but trade is linked to such physical place because modern markets are computerized.

List of Stock Exchanges in India • • • o o o o o o o o o o o o o o o o o o o o o Bombay Stock Exchange National Stock Exchange Regional Stock Exchanges Ahmedabad Stock Exchange Bangalore Stock Exchange Bhubaneshwar Stock Exchange Calcutta Stock Exchange Cochin Stock Exchange Coimbatore Stock Exchange Delhi Stock Exchange Guwahati Stock Exchange Hyderabad Stock Exchange Jaipur Stock Exchange Ludhiana Stock Exchange Madhya Pradesh Stock Exchange Madras Stock Exchange Magadh Stock Exchange Mangalore Stock Exchange Meerut Stock Exchange OTC Exchange Of India Pune Stock Exchange Saurashtra Kutch Stock Exchange Uttar Pradesh Stock Exchange Vadodara Stock Exchange .

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