ANALYSIS ON INITIAL PUBLIC OFFER

BY ANURADHA TIWARKAR ROLL NO 37/B

WHAT IS AN IPO? An Initial Public Offering (IPO) is the first sale of a shares By the company to the public for raise money . Why Go Public? .

Promoter Contribution: 20-25% Collection centers for receiving applications: Bombay. • • • • • • Size of the public Issue: not less than 25% of total issue. Time frames for the Issue and post. The minimum period for rights issue is 15 working days and the maximum is 60 working days.SEBI GUIDELINES FOR IPO’S • IPOs of small companies: less than 5 cores. madras. Calcutta.Issue formalities: The minimum period for public issue is 3 working days and the maximum 10 working days. Delhi. Dispatch of refund orders: 30 days .

OBJECTIVES To understand the procedure to be followed in issue of share for public subscription. To know the key terms and various stages in an IPO process. To know the factors which can lead to success or failure of an IPO? . To provide the guidelines which are to be followed by companies in an IPO.

572 empanelled advisors. an experience of over 12 years. 600 branches and 133.COMPANY PROFILE      Established in 2000. BSLI has contributed significantly to the growth and development of the life insurance industry in India. a joint venture between the Aditya Birla Group. . currently ranks amongst the top 6 private life insurance companies in the country.

IMPORTANT ASPECTS OF AN IPO Key Concept: 1) IPO 2) Public Issue 3) Lock-inTypical expenses Related to the IPO  Legal fees:  Accounting fees:  Printing expenses:  Registrar and transfer agent fees: Role of Merchant banker .

200 MW 4) largest portfolios. ABN AMRO. Enam Securities.500 crore 6) The issue was managed by UBS. Deutsche Bank.STUDY ON RELIANCE POWER IPO Company overview: 1) part of the reliance ADA group. 2) currently developing 13 medium and large sized power projects. Reliance power Ipo oversubscribed 73 times . ICICI Securities.and Kotak Mahindra Capital. 5) on 15th January to raise Rs 11. JPMorgan. 3) capacity of 24. Macquarie and SBI Capital Markets are co-managers.This was the largest IPO ever. JM Financial.

2012 Mar 29. 2012 Feb 24.00 Tribhovandas Bhimji Zaveri Ltd IPO Apr 24.85 25.00 . 2012 Feb 27.) 663. 2012 Mar 09.) 1. 2012 25. 2012 BB Feb 23.SUMMARY OF IPO MARKET ACTIVITIES.00 Mar 27.00 BB 35.00 FP BB BB 8. 2012 Mar 27.00 BB 200. 2012 Mar 13. 2012 80.00 0. 2012 Apr 26.31 Multi Commodity Exchange of India Ltd IPO BCB Finance Ltd IPO Olympic Cards Ltd IPO National Buildings Construction Corporation Ltd IPO MT Educare Limited IPO Feb 22.2012 Issuer Company Issue Open Issue Close Issue Price (Rs. 2012 120.00 106.032.00 Issue Type Issue Size (Crore Rs.00 30. 2012 Mar 22.

00 Jun 29.00 . 2012 May 12.00 BB FP 176.) Samvardhana Motherson Finance Ltd IPO Plastene India Limited IPO Monarch Health Services Ltd IPO Speciality Restaurants Ltd IPO Max Alert Systems Ltd IPO VKS Projects Ltd IPO BB FP 12. 2012 BB 55. 2012 40. 2012 Issue Close Issue Price (Rs. 2012 May 16.09 0. 2012 May 18. 2012 May 15. 2012 May 09. 2012 Jul 02.00 Issue Type BB Issue Size (Crore Rs.00 20. 2012 Jun 28. 2012 Jul 04.SUMMARY OF IPO MARKET ACTIVITIES Issuer Company Issue Open May 02.) May 04.00 150. 2012 May 16.

45 % No .Questionnaire Question 1 : Have you included IPOs in yours or your clients portfolio? Yes .55 % .

Various reasons were given and most of them conclude on one thing that Investor don‘t have trust on IPO .Other reason told by them was of account decoration done by IPO issuing company which results in over pricing of IPO . .Question 2 : Does 2012 IPOs gave returns according to your expectations ? Yes .65 % No . . What was the reason ? .35 % Question 3 : If not invested in IPO.

Question 5 : What risks you associate with IPOs? Aggressive pricing – 25% IPO grading system – 10% Accounting Practise – 40 % Other – 25% .Question 4 : Generally what are your clients response towards investment in IPO ? Investor responded strongly on this question. Responses were in favour as clients wants to buy IPO at lower price and want to yield profit long run .

CONCLUSION OF IPO The conclusion regarding this INITIAL PUBLIC OFFER & ANALYSIS A study on RELIANCE POWER is getting to know how the companies come for an IPO with certain procedure and make them aware about the issues in an IPO. . Recommendation Every company whichever wants to go public for the first time has to know what procedure has to be implemented and the success factors for winning in an IPO.