A

Project Report
On

A STUDY ON INVESTERS ATTIUTED TOWARDS

PRIMARY MARKET
Submitted in partial fulfillment for the
Award of degree of
Master of Business Administration

JIET SCHOOL OF MANAGEMENT

JODHPUR
(2013-2015)
Supervised By:

Submitted To:

Mr. Mehandra Daiya

Dr. Punita Soni

Dy. HOD

Head of Department

JIET-DMS

JIET-DMS
Submitted By:
URMILA CHOUDHARY
IV Semester
II Year

RAJASTHAN TECHNICAL UNIVERSITY-KOTA

JIET GROUP OF INSTITUTIONS

NH-65, Pali Road Mogra, Jodhpur

CERTIFICATE

This is to certify that URMILA CHOUDHARY bearing Roll No. 13MJIXX608 is a

bonafide student of Master of Business Administration course of the Institute (Batch 201315) affiliated to Rajasthan Technical University, Kota.

Project Work report on A STUDY ON INVESTERS ATTITUDE TOWARDS PRIMARY

MARKET is prepared by him under the guidance of Mr. Mehandra Daiya, (Dy. HOD,
JIET Department of Management STUDIES), in partial fulfillment of the requirements for
the award of the degree of Master of Business Administration of Rajasthan Technical
University, Kota, Rajasthan.

Signature of Internal Guide

Signature of HOD

DECLARATION

I, URMILA CHOUDHARY, hereby declare that the Project Work report entitled A
STUDY ON INVESTERS ATTITUDE TOWARDS PRIMARY MARKET With
reference to Stock Market prepared by me under the guidance of assistance by Mr.
Mahendra Daiya, (Dy. HOD), JIET-Department of Management Studies.
I also declare that this Project work is towards the partial fulfillment of the university
regulations for the award of degree of Master of Business Administration by Rajasthan
Technical University, Kota.
I further declare that this project is based on the original study undertaken by me and has not
been submitted for the award of any degree/diploma from any other university/Institution.

Signature of the Student

Place: Date:-

ACKNOWLEDGEMENT

This project comes out to be a great source of learning and experience. Lot of
efforts has been put by various people to make this project a success. This has
greatly enhanced my knowledge about the vast field of Primary Market.
I gratefully acknowledge my indebtedness to Mr. Mehandra Daiya, Dy. HOD
JIET-DMS for allowing me to undergo a project and also express my sincere
gratitude and thanks to sir for his inspiration and helpful attitude.

I am happy to achnowledge that I have completed the project work after the full
guidance, support and full encouragement of all those who have helped me.

URMILA CHOUDHARY

TABLE OF CONTENTS

S.NO.

PARTICULAR
INTRODUCTION

LITERATURE REVIEW

INTRODUCTION TO PRIMARY MARKET

MEANING OF PRIMARY MARKET

FEATURES OF PRIMARY MARKET

PARTIES INVOLVES IN PRIMARY MARKET

PROBLEMS OF PRIMARY MARKET

FUNCTIONARIES OF INITIAL PUBLIC OFFER

PROCESS OF BOOKBUILDING

SEBI GUIDELINES FOR IPO

SEBI ENCOURAGE RETAIL INVESTOR

IPO BOOM : AN ANALYTICAL REVIEW

RESEARCH MATHODOLOGY

OBJECTIVES OF STUDY

RESEARCH DESIGN

SAMPLE DESIGN

DATA COLLECTION SOURCES

PAGE NO.

DATA ANALYSIS AND INTERPRETATION

FINDING AND SUGGESTION

BIBLIOGRAPHY AND ANNEXURE

CHAPTER - I

INTRODUCTION

The economic development of a nation is reflected the progress of the various economic
units, broadly classified into corporate sector, government and household sector. While
performing their activities, these units are in a surplus /deficit/ balanced budgetary situations.
There are areas or people with surplus funds or with a deficit.
A financial system or financial sector functions as an intermediary and facilitates the flow of
funds from the areas of surplus to the areas of deficit The financial system or the financial
sector of any country consists of specialized and non-specialized financial institutions, of
organized and unorganized financial markets, of financial instruments and services which
facilitate transfer of funds. The word system, in the term financial system, implies a set of
complex and closely connected or interlinked institutions, agents, practices, markets,
transactions, claims, and liabilities in the economy.
The financial system is concerned about money, credit and finance. Money refers to the
current medium of exchange or means of payment. Credit or loan is a sum of money to be
returned, normally with interest. Finance is monetary resources comprising debt and
ownership funds of the state, company or person. Economic growth implies a long-term rise
in per capita national output. The basic conditions determining the rate of growth are threeEffort, Capital and Knowledge.
In the post Second World War there has been an upsurge in the desire for economic growth
following rapid political and other developments and increasing impatience in the countries
of Asia, Africa and South America with their existing economic conditions. The keen desire
for development has tended to minimize the significance of factors associated with Efforts.
As regards Knowledge it is suggested that there already exists a vast amount of knowledge
in developed countries. This reasoning has led to emphasis being placed on increasing capital
formation as the most crucial factor in economic growth of the underdeveloped countries.
The rate of capital formation in the underdeveloped countries has for a long time been hardly
adequate to provide even for a rate of growth of national output at par with the rate of
population growth. While the developed countries have, with an average rate of population
growth of 1.9 percent, been investing 15 % to 18% (gross/net) of their national income, the
net rate of investment in underdeveloped countries has been only 6% or 7% in the face of
population growth at the rate of 2.9 % per annum. Financial institutions, also called financial
intermediaries, provide means and mechanism of transferring command over resources from
those who have an excess of income over expenditure to those who can make use of the same
for adding to the volume of productive capital. They, on the one hand, create claims in the
form of their shares, debentures, deposits, etc., against themselves which they induce the

savers to accept in exchange for their savings (claims on society for goods and services in the
future). On the other hand, they acquire claims against the investors by investing in their
shares and debentures and by granting direct loans to them. It is here that role of financial
institutions can be traced. They provide a convenient and effective link between savings and
investment.
Financial institutions channel the funds mobilized by them to those who require more funds
than they have, such as business firms. Major problem facing a business firm is to approach
thousands of small savers for raising desired amount of funds which means diversion from
main business activity. On the other hand, those willing to save, say Rs. 25 a month, need a
convenient outlet for their savings. Financial institutions provide just such an outlet. These
institutions, while themselves raising resources from large number of small savers, make
funds available to industrial concerns in relatively bigger lots and thus reduce their burden
and botheration involved in raising resources directly from individual savers. This is why
financial institutions are regarded as gap fillers.
The economy of a country functions on the fundamental mechanism of savings and
investment of financial capital into economic activities that help in the creation of economic
wealth. Economic wealth in turn creates a conductive atmosphere for consumption that
creates economic demand for goods and services thereby stimulating production and further
investment. Therefore, this continuous economic cycle leads to growth in the economy which
is usually measured by the gross domestic product or GDP. The movement of capital in the
economy from the savings pool to the investment pool is performed by two main platforms of
institutional intervention- the financial institution and banking framework and the financial
market framework. Banks and financial institutions on the one hand and the capital market on
the other continue to co-exist and perform their respective functions as it is not possible for
each of them to completely substitute the other in taking care of the needs of the economy.
However, considering the fact that the capital market has a wider role to play beyond merely
being a catalyst for capital creation, a developed and vibrant capital market is the backbone of
a healthy economy. As we know that capital markets play a vital role in Indian economy, the
growth of capital markets will be helpful in raising the per-capita income of the individuals,
decrease the levels of un-employment, and thus reducing the number of people who lie below
the poverty line. With the increasing awareness in the people they start investing in capital
market with long-term orientations, which would provide capital inflows to the sectors

requiring financial assistance. India has the third largest investor base in the world. India has
one of the world's lowest transaction costs based on screen based transactions, paperless
trading and a T+2 settlement cycle.
The past twenty five years have witnessed a process of accelerating change in the world's
financial markets. Driven by an interacting process of liberalization and innovation,
regulations have been removed, new product have emerged and old boundaries between
financial intermediaries have been blurred. At the same time, growth of capital markets has
posed new challenges to economic and financial stability.
The role of Indian capital market which is to provide long term resources required by
industries for investment has observed buoyancy in share market with the liberalization of
industries and fiscal policies of the government. Finance, the life blood of industry is
mobilized especially through New Issue Market or Primary Market.
The primary market, also called the new issue market, is the market for issuing new
securities. Many companies, especially small and medium scale, enter the primary market to
raise money from the public to expand their businesses. They sell their securities to the public
through an initial public offering. The securities can be directly bought from the shareholders,
which is not the case for the secondary market. The primary market is a market for new
capitals that will be traded over a longer period.
Investors can obtain news of upcoming shares only on the primary market. The issuing firm
collects money, which is then used to finance its operations or expand business, by selling its
shares before selling a security on the primary market, the firm must fulfill all the
requirements regarding the exchange.
After trading in the primary market the security will then enter the secondary market, where
numerous trades happen every day. The primary market accelerates the process of capital
formation in a country's economy.

The primary market categorically excludes several other new long-term finance sources, such
as loans from financial institutions Many companies have entered the primary market to earn
profit by converting its capital, which is basically a private capital, into a public one,
releasing securities to the public. This phenomena is known as "public issue" or "going
public."
There are three methods though which securities can be issued on the primary market: rights
issue, Initial Public Offer (IPO), and preferential issue. A company's new offering is placed
on the primary market through an initial public offer.

LITERATURE REVIEW
Many Organizations and individuals conducted several studies on the various aspects of the
capital markets in the past. These studies were mainly related to various instruments of
capital market, shareholding pattern, new issue market and scope, market efficiency, risk and
return, performance and regulation of mutual funds. However, not much of research was done
on investment patterns and investors perceptions.
Hence an attempt is made to review some of the studies relevant to the topic in order to get
into in depth details of the chosen study. Jaakko (2011) study revealed that most investors had
affected based extra motivation to invest in stock, over and beyond financial return
expectations. Zaghlami (2009) study revealed that some psychological particularities that are
not expected by the financial behavioral literature, the study were conducted on Tunisian
investors. Mahendra (2008) study stated that irrational investment decision making is a
widespread phenomenon.
They study the perils of irrational decision-making in investments choice which finally can
lead to great risk. Verma, (2008) identified the demographic profile and investor personality
can be the two determinants for making perception about the investor psychology, which if
scientifically studied could help the Wealth Management professionals to advice their clients
better. Commins (2009) in their article discussed the hedonistic psychology of investors.
It cites that the pursuit of happiness becomes hedonistic when people want to get the most of
their investment and gaining wealth is no longer confining that one becomes overly
materialistic. The study conducted by SCMRD for Ministry of Company affairs (2004) found
that majority of the retail investors do not regard mutual fund equity schemes as a superior
investment compared to direct equity.
Kent (19998) developed a theory of securities market under- and overreactions based on two
well-known psychological biases: investor overconfidence about the precision of private
information; and biased self-attribution, which causes asymmetric shifts in investors'
confidence as a function of their investment outcomes. SEBI (1998) survey revealed that Risk
appetite, investment objective of the investor, income of the investor, funds available for
investment, greatly influences the behavior of the investor in corporate securities at various
levels.

CHAPTER - II

INTRODUCTION TO
PRIMARY MARKET

PRIMARY MARKET

New Issues Market is that part of capital market where dealing exchanges takes the
boundaries de-marketing the financial services are fast eroding. Thanks to the innovations in
the financial services, the movement towards made by existing companies are known as
further issues.
The primary market is that part of the capital markets that deals with the issuance of new
securities. Companies, governments or public sector institutions can obtain funding through
the sale of a new stock or bond issue. This is typically done through a syndicate of securities
dealers. The process of selling new issues to investors is called underwriting. In the case of a
new stock issue, this sale is an initial public offering (IPO) Dealers earn commission that is
built into the price of the security offering. though it can be found in the prospectus.
Mutual funds are seemingly the easiest and the least stressful way to invest in the stock
market. Quiet a large amount of money has been invested in mutual funds during the past few
years Any investor would like to invest in a reputed Mutual Fund organization. UTI is one
such organization that provides a better overview of the Mutual Fund industry. Understanding
the attitude of investors on their investment would help the company to increase their profits.
In UTI they believe that the investors attitude would result in profits.
The primary market, also called the new issue market, is the market for issuing new
securities. Many companies, especially small and medium scale, enter the primary market to
raise money from the public to expand their businesses. They sell their securities to the public
through an initial public offering. The securities can be directly bought from the shareholders,
which is not the case for the secondary market. The primary market is a market for new
capitals that will be traded over a longer period.
In the primary market, securities are issued on an exchange basis. The underwriters, that is,
the investment banks, play an important role in this market: they set the initial price range for
a particular share and then supervise the selling of that share.

Investors can obtain news of upcoming shares only on the primary market. The issuing firm
collects money, which is then used to finance its operations or expand business, by selling its
shares. Before selling a security on the primary market, the firm must fulfill all the
requirements regarding the exchange.
After trading in the primary market the security will then enter the secondary market, where
numerous trades happen every day. The primary market accelerates the process of capital
formation in a country's economy.
The primary market categorically excludes several other new long-term finance sources, such
as loans from financial institutions. Many companies have entered the primary market to earn
profit by converting its capital, which is basically a private capital, into a public one,
releasing securities to the public. This phenomena is known as "public issue" or "going
public."
There are three methods thought which securities can be issued on the primary market; rights
issue, Initial Public Offer (IPO).and preferential issue. A companys new offering is placed on
the primary market through an initial public offer.
1. Market in which buyers and sellers negotiate and transact business directly, without
any intermediary such as resellers.
2. Financial market in which newly issuers securities are offered to the public.

Features of primary markets are:

This is the market for new long term equity capital. The primary market is the market
where the securities are sold for the first time. Therefore it is also called the new issue

market (NIM).
In a primary issue, the securities are issued by the company directly to investors.
The company receives the money and issues new security certificates to the investors.
Primary issues are used by companies for the purpose of setting up new business or

for expanding or modernizing the existing business.

The primary market performs the crucial function of facilitating capital formation in
the economy.

PARTIES INVOLVES IN PRIMARY MARKET

Market: - Actual or conceptual place in commercial world where forces of demand
and supply operate, and where buyers and sellers interact (directly or through
intermediaries) to trade goods, services, or contracts or instruments for money or
barter. Markets include mechanisms or means for
(1) Determining price of the traded item,
(2) Communicating the price information
(3) Facilitating deals and transactions, and
(4) Effecting distribution Market
For a particular item is made up of existing and potential customers who need it and
have the ability and willingness to pay for it. All markets. ultimately, consist of people
also called marketplace.

Buyer: 1. Party which acquires, or agrees to acquire, ownership (in case of goods), or
benefit or usage (in case of services), in exchange for money or other
consideration under a contract of sale also called purchaser.
2.

Professional purchaser specializing in a specific group of materials, goods, or

services, and experienced in market analysis, purchase negotiations, bulk buying,
and delivery coordination.

Seller: - Entity that makes, or offers or contracts to make, a sale to an actual or

potential buyer. Also called vendor particularly the one selling a real property.

 Negotiation: 1. General: Bargaining (give and take) process between two or more parties (each with
its own aims, needs, and viewpoints) seeking to discover a common ground and reach
an agreement to settle a matter of mutual concern or resolve a conflict.
2.

Banking: Accepting or trading a negotiable instrument.

3.

Contracting: Use of any method to award a contract other than sealed bidding.

4. Trading: Process by which a negotiable instrument is transferred from one party

(transferor) to another (transferee) by endorsement or delivery. The transferee takes
the instrument in good faith, for value, and without notice of any defect in the title of
the transferor, and obtains an indefeasible title.

Business: - Economic system in which goods and services are exchanged for one
another or money, on the basis of their perceived worth. Every business requires some
form of investment and a sufficient number of customers to whom its output can be
sold at profit on a consistent basis.

Intermediary: - Firm or person (such as a broker or consultant) who acts as a

mediator on a link between parties to a business deal, investment decision,
negotiation, etc. In money markets, for example, banks act as intermediaries between
depositors seeking interest income and borrowers seeking debt capital. Intermediaries
usually specialize in specific areas, and serve as a conduit for market and other types
of information. Also called a middleman. See also intermediation.

Reseller: - One who buys good, from a manufacturer and resells them customers
unchanged.

PROBLEMS OF PRIMARY MARKET

There are several problems of the Indian primary market. But these problems can be
overcome too by mere application of simple rules (end of the article). These remedies have
been suggested by experts. Economists attribute these problems to various factors some of
which are highlighted below.
The function of the primary market with respect to the market for IPO or initial public
offering is to see that various companies are provided with opportunities for the acquisition of
growth capital. The primary market has withstood the tests of time. Inappropriate allotment
of shares:
There are many existing problems of the Indian primary market. Some of the instances
include the inappropriate assignment of shares to the public.
Withdrawal of IPOs: - Another problem lies in the fact that these days, IPOs are
increasingly being withdrawn. An expert has rightly said that there is no point
expressing disappointment in the withdrawal of the IPOs because it may be taken not
as an indication of failure of the company and hence the primary market but it may be
considered as a disagreement of price between the seller and the buyer. The primary
markets are undulating the world over. The incidents occurring in the primary markets
are reflections of what is actually happening in the secondary markets. It was
fathomed that the IPOs, which were lately taken back had very "aggressive" price
bands. The price bands could have been aligned as per existing conditions of the
market. The lead managers responsible for the IPOs may also be blamed for the
catastrophe. Few are of the opinion that lack of judgment may have led to the
withdrawal. "Investors fatigue" is being accounted for in the withdrawals.
"Cornering" of shares:
Recently, there was an instance when investors "cornered" shares, which were to be
alloted to the public. The investor was actually a big investor who camouflaged as a
small investor cornered many shares.

The most important factor shaping in today's global economy is the process of
globalization. Indian companies are moving in search of low-cast markets, technology
is driving growth in production and competition is becoming more intense. A second
factor is the fastest growth in private capital flows, mainly short-term flows by banks
and financial institutions, portfolio flows by mutual funds and pension funds and
foreign direct investment into India. A third factor is the increasing share of India and
other emerging market economies in world trade.
The outburst in communication technology has led to greater integration of Indian
financial markets across the world. The impact of these changes could be felt from the
extremely buoyant activity in Indian Stock markets. A number of foreign financial
service providers have entered into the Indian financial market like Morgan Stanley.
Templeton and Goldman Sachs Currently FII investment is at $ 6.5 Billion compared
to $ 2 Billion in 2001. The Stock market is booming with Sensex hovering around
16000-17000. SEBI has put in place appropriate guidelines and controls to regulate
the markets in tone with the changing environment and attendant risks. All this is
happening because of large amounts of investment in the country People often invest
in various asset classes to;
To beat Inflation
To fund future needs
To meet contingencies
To maintain same standard of living after retirement
All these factors matters a lot to the investors and the mutual fund route is one way through
which people can meet these needs.
Free economies are generally characterized to have financial markets to serve as channels
through which the savings of the society are made available to business enterprises. Such
financial markets may be classified as

Capital market, and

Money market

where the former refers to the market mechanism which envisages institutional arrangements
for marketing of long term and equity claims such as equity shares, preference shares,
debentures, bonds, etc., while the latter refers to the market mechanism which concerns with
floating of liquid funds and their short term uses in trade and industry through the banking
system.
The capital market which concerns with demand and supply of long term funds is again
dichotomized as primary or new issue market and secondary or stock market where the
former deals with new securities offered to the investing public, while the latter deals with the
existing securities. The joint stock companies raise funds from new issue markets but such
new issue are also listed with stock markets which provide them a regular market, ensure
regular valuation of and stability in prices of such securities, assure safety in dealings of the
securities, channelise funds in the desired direction and ensure wider ownership of the
securities.
The stock exchanges are, thus, primarily concerned with providing marketability to the
existing securities but these also activate the new issue markets which serve as primary
source of funds to the industrial enterprises for their new projects or for expansion,
diversification or modernization of existing ones. Both the primary and the secondary
markets are integral parts of the capital market and are susceptible to common influences.
Public responses are generally encouraging in the new issue market when there is boom in
the stock market and vice versa. Similarly, the secondary market is very sensitive to the
impact of development in the country and the same is transmitted to the new issue market.
New issues include 'initial issues' as well as 'further issue' where the former refers to the
securities issued by the companies for the first time either on incorporation or on conversion
from private to public company while the latter refers to the new issues floated by existing
companies which needed funds for expansion/ diversification/ modernization. The initial and
further issues may be combined under new money issue which refer to the issues for
mobilization of new money for the corporate enterprises and there can be no new money
issue which include bonus/capitalization issues and exchange issues where the former results
from the capitalization to retained earnings enabling existing shareholders get new shares
without paying and the latter results from conversion of private company into public,
amalgamation, merger and equity dilution by FERA companies.

CHAPTER III

FUNCTIONARIES OF
INITIAL PUBLIC OFFER

The functionaries in IPO are those concerned with the formation of joint stock companies and
the issue of their securities to the public. Public issue is essentially an exercise involving
active participation of a number of agencies. At earlier stages it was sole effort on the part of
the company and its personnel.
However with the growth of the number of public issues and the complexities in the efforts
involved, it has now become necessary to enlist active participation and support of a number
of agencies in making any public issue a success. The promoter, as a principal representative
of the company which is making the public issue, should be clear in his mind about the
number of agencies involved and their respective roles in the entire exercise so as to be able
to coordinate effectively the efforts of these agencies. These functionaries are:

Promoters: - Modern industrial enterprises require large amounts of capital which

can only be raised by resorting to the joint stock company is done by company
promoters and syndicates. It is the promoter who is responsible for conception or
discovery of the idea to exploit the possibility of some industrial proposition. He has
to work up details, formulate the financial plan, which he usually does with the help
of an issue house and finally he has to put his proposition into active operation. The
work of the promoter entails difficulties and risks and sometimes he has to stake his
whole fortune and reputation in order to make the venture a success. Prior to founding
the company a lot of expenditure has to be incurred by the promoter on employment
of engineers, technical and other experts. In case the company is successfully
established and investors come forth to take up its shares, the promoter is duly
rewarded, otherwise he stands to lose not only his money he had sunk in the venture
but his reputation as well.
The promoter, if he is well endowed financially, will work alone, but in the case of
projects of large dimensions he usually form a syndicate. All members of the
syndicate work up the possibilities of the proposition and undertake the investigation
and examination of the scheme. It may be turned over to the technical staff employed
and on its favorable report the formulation of the financial plan will be taken up by he
financial experts who are supposed to be well conversant with the conditions in the
capital market. After completing the financial plan, the work of drawing up the
prospectus, the memorandum of association and articles of association for the formal
incorporation as a company is proceeded with. After all the formalities are completed,

the new company is ready to be launched and its issue is to be placed before the
public
Managers to the issue: - These persons are actively associated in the selection of
various agencies involved with new issue planning the timing of the issue, strategies
to be adopted by way of publicity and marketing of the issue, etc. they advise the
company on selection of the registrars to the issue, underwriters, brokers and bankers
to the issue, advertising agents, printer etc. and also give a sense of direction to the
various agencies involved in the entire issue. Besides, the other activities mainly
performed buy them are drafting of prospectus, preparing project profiles for
underwriters, preparing budget of expenses, suggesting the appropriate timings for the
public issue, assisting in marketing the public issue successfully, etc. there are a
number of agencies specializing in the role of managers to the issue. These merchant
banking divisions of some all India financial institutions, subsidiaries of commercial
banks and also some private agencies where traditional stock brokers have graduated
into providing specialized merchant banking services.
SEBI has made the registration of merchant bankers compulsory to ensure that only
professionals with requisite qualification and financial background enter into the job.
These MBs are classified into four categories where the first category MBs must have
a minimum net worth of Rs. 100 lacs and can undertake all activities of issue
management (preparation of prospectus, determining financial structure, final
allotment and refund of subscription) portfolio management, underwriting, consultant
or advisers in the issue. The second categories of MBs must have a minimum net
worth of Rs. 50 lacs and can undertake all activities except issue management. The
third categories of MBs must have a minimum net worth of Rs.20 lacs and can
undertake works of underwriter, adviser and consultant while there is no minimum net
worth requirement for fourth category of MBs but they can function as adviser or
consultant only.
Registrars: -

The registrars sometimes, also called the issue house are

responsible normally for receiving the share applications from the various collection
centers through controlling branches of bankers to the issue, analyzing them,
recommending the basis of allotment in consultation with the managers to the regional
stock exchange for approval arranging for dispatch of allotment letters and preparing

the register of members, etc. their job normally starts with the opening of the
subscription list, and continues till the share certificates are dispatched, and register of
members along with other related registers/details are handed over to the company.
Sometimes, the registrars to issue continue their association with the company in the
role of share transfer agents, even after the issue is completed.
Underwriters: - The underwriters are the people who actually ensure that the
company is able to raise the capital issued by it for a commission charged by them.
They make a commitment to get the issue subscribed either by others or themselves.
Usually the underwriters can be divided into two categories, namely, financial
institutions and banks on the one hand, and broker underwriters and approved
investment companies/trust, on the other.
Brokers: - These are the people who actually bring the prospective investors and
the company together. It may not be an exaggeration to state that the success or failure
of a public issue depends to large extent on the reaction of the brokers. Generally, they
are the members of recognized stock exchanges, with a view to providing better and
professional services to investing public and to promote development of capital
market on healthy lines, the government has since allowed multiple membership to
members of stock exchanges and accorded recognition to corporate entities and the
financial institutions including subsidiaries of the banks.
Bankers: - These are the commercial banks, which will receive the application
money along with the share application forms from the prospective investors.
Depending upon the size of the issue, at least 4 or 5 banks are designated as bankers
to the issue. Different branches of these banks are named at various locations where
such application money is accepted. These collecting branches send the application
forms and the money received by them to specified branch, where the details of the
application are consolidated. Such specified branch of the banker to the issue is called
controlling branch/ the controlling branch is usually selected in the city where the
managers to the issue/registrars to the issue/registered office of the company is
situated. However, it is not necessary that controlling branch should be at a place
where the managers to the issue/ registrars to the issue/registered office of the
company is situated.

 Publicity and advertising agents: - Public issue is an effort to motivate and

persuade members of the public to invest in the shares of the company. It is, therefore,
essential that the general public is made aware of the company, its activities, its plans
for future, etc. it is of vital importance that publicity is given before the public issue
by giving newspaper and TV advertisements. Press releases, press conference, leaflets
and brochures, hoardings and posters and even audio visual shows are the usual media
of publicity used for public issue. There are some advertising agencies, which
specialize in financial advertising and publicity campaign for public issues.
Financial institutions: - Term lending financial institutions at the time of
sanctioning underwriting support loans to the company, usually stipulate that the draft
of the prospectus and also the proposed program for public issue is approved by them.
The three principal all India financial institutions are the IDBI, IFCI and ICICI. Even
when all the three institutions jointly finance a project under their participating
finance scheme, one of them is generally chosen as the lead financials institution
which acts on behalf of the other two. Hence, it is generally adequate if the company
obtains the necessary approval from the regional office of the lead institution only. In
some cases where other institutions like the LIC, GIC, UTI, etc. have also given
financial assistance, it might be necessary to seek separate approvals from them, if
insisted for. But generally an advance copy of the draft prospectus is sent to them with
a request forward their comments, if any, direct to lead institution.

Other Agencies: -In addition, the company will also have a interaction with other
agencies like auditors, legal advisors, taxation or technical experts whose names or
statements are mentioned or quoted in the prospectus.

 Government/Statutory Agencies: -Besides the various agencies which are

directly connected with a public issue whose efforts will have to be coordinated by the
company, there are some statutory/government agencies that are connected with
public issue.

These are SEBI which provides guidelines for public issue,

Registrar of the companies with whom the prospectus has to the field and registered
before the public issue under section 60 of the companies act, 2013, reserve bank of
India from whom necessary permission has to be obtained for nonresident investment,
of any in the company, the stock exchanges where the companys share are to be
listed industrial licensing authorities for necessary industrial license to be obtained for
the project or other statutory bodies like DGTD etc. with whom the capacity of the
project has to be registered, and pollution control authorities and other local
authorities from whom the clearance may have to be obtained and such clearance is
referred to in the prospectus.

A NEW CONCEPT OF IPO MARKETBOOK BUILDING

SEBI guidelines defines Book Building as "a process undertaken by which a demand for the
securities proposed to be issued by a body corporate is elicited and built-up and the price for
such securities is assessed for the determination of the quantum of such securities to be issued
by means of a notice, circular, advertisement, document or information memoranda or offer
document".
Book Building is basically a process used in Initial Public Offer (IPO) for efficient price
discovery. It is a mechanism where, during the period for which the IPO is open, bids are
collected from investors at various prices, which are above or equal to the floor price. The
offer price is determined after the bid closing date.
As per SEBI guidelines, an issuer company can issue securities to the public though
prospectus in the following manner:
1. 100% of the net offer to the public through book building process
2. 75% of the net offer to the public through book building process and 25% at the price
determined through book building. The Fixed Price portion is conducted like a normal public
issue after the Book Built portion, during which the issue price is determined.
The concept of Book Building is relatively new in India. However it is a common practice in
most developed countries.
Difference between Book Building and Public Issue
In Book Building securities are offered at prices above or equal to the floor prices, whereas
securities are offered at a fixed price in case of a public issue. In case of Book Building, the
demand can be known everyday as the book is built. But in case of the public issue the
demand is known at the close of the issue.
The book building process: The company approaches lead manager for IPO

THE BOOK BUILDING PROCESS

The company approaches lead manager for IPO

The company and lead manager suggest a price band at which shares are to be
offered

Application are invited

Based on demand for the shares a certain price is established by promoters

and the lead manger

The allotment is made on the basis of the market clearance price

Post issue the price stabilization is undertaken by the lead manager

SEBI ENCOURAGE RETAIL INVESTOR

SEBI has announced a series of measures to encourage retail participation in the primary
market. This is perhaps the first instance where the market regulator has got the timing of
reform measures spot on.
Coming close on the heels of the hugely successful Maruti IPO, these measures should arouse
retail interest in some of the big public offers expected in the near future BPCL, Idea
Cellular, TCS and Nalco. The principle of these changes seems to be that greater participation
of retail investors in the primary market is possible only when they have a reasonable chance
of making gains, certainly not the case earlier. To enable such participation, Sebi has adopted
a two-fold approach. First, the market watchdog has made sure that retail investors actually
get an allotment in book-built IPOs. Hence, the 10% increase in the allocation for retail
investors. But more significant is the change in the definition of what constitutes retail
from those applying for up to 1,000 shares to applications for shares worth Rs 50,000 or less.
This would ensure that retail is truly retail. Take the i-flex IPO, priced at Rs 530 a share. An
application for 1,000 shares entailing investment of Rs 5.3 lakh would have qualified for the
retail category. Second, to ensure some quality, the regulator has introduced the concept of
net tangible asset, making certain that issuing company has some pre-IPO history.
Additionally, to discourage fancy ideas being sold to public and subsequently abandoned
(plantation schemes), issuers have been asked to tie-up funds for a project before the issue.
Of course, willful defaulters have been barred. Lastly, to fix accountability, the CEOs or the
CFOs of the issuing company would have to certify disclosures in the offer document.
These measures should translate into higher allotment for retail investors and keep a check on
the quality of issuers as well. The decision to disallow withdrawal of bids by institutional
investors and the shift to price band instead of a floor price will prevent manipulation in
pricing and subscription, both inimical to retail interest while the availability of a green
shoe option should deliver price stability post listing in the case of over subscription.
Beyond this, there is precious little a regulator can do. The rest is upto the market and
investors.

IPO BOOM: An Analytical Review

The Indian capital market is on the verge of an unprecedented IPO boom. Reports emanating
from the office of the Securities and Exchange board of India clearly indicate that the year
2004 is all set to emerge as a record breaking year for initial public offer as over 600
companies big, medium as well as small are planning to raise a whopping sum of Rs. 60,000
crore! Interestingly, it had taken 15 years for over 5,600 companies to raise this amount! The
2004 performance will, thus, be a historical feat in the realm of the Indian capital market.
Of course, the IPO market was literally comatose for the last six years after the previous fiveyear (1992-96) boom period when about 5,000 companies had raise around Rs 45,000 crore!
At least one third of this amount has vanished into thin air as several cheaters, unscrupulous
businessmen belonging to select industrial groups and fly by night operators had palmed off
worthless scrap papers in the name of share certificates to millions of hapless investors. The
watchdog could not see in which direction the promoters fled after downing the shutters of
their companies and stock exchange authorities took easiest route to forget about the fraud by
de-listing the shares of these companies. And the poor investors are still burdened with these
worthless papers, originally valued at millions of rupees.
This body blow was enough to disenchant the investing public from the new issue market
which wore a deserted look for the last six years. But now that business activity has picked
up, economy is on the path of rapid growth and wheels of industries have started running at a
fast pace, the new issue market is showing some activity once again. On the one side, the
government is in dire need of funds to meet its budgetary plans and, for this, disinvestments
of PSU offers the easiest route. And on the other hand, with business activity picking up,
there is need for larger production of industrial and consumer goods, which, in turn, needs
funds for expansion and setting up new plants. At he same time, as interest rates on various
instruments of saving have come down drastically and equities have emerged as more
remunerative avenue for investment, the public is willing to go for equities. The buoyancy in
the stock market has further aided this trend.

Taking advantage of this favorable climate, over 600 companies have planned to come out
with issues to rise over Rs 60,000 core. It is almost certain that cheaters and looters among
businessmen will once again be at their game mopping up funds through bad or bogus issues.
Lured by hefty fees and heftier out of pocket expanses, merchant bankers will also try to hard
sell these shares. The capital market watchdog, SEBI has already washed its hands of any say
in it by declaring that SEBI does not take any responsibility either for the financial
soundness of any scheme or the project for which the issues are proposed to be made or for
the correctness of the statements made or opinion expressed in the offer document.
The SEBI clarification raises a pertinent question: have we moved forward or backward
from the controller of capital issues days in investor protection? By and large, merchant
bankers are more interested in their fees rather than in the quality of the issues. Can you rely
on analysts? Just recall the paeans they had sung on issues which shook the very foundation
of a giant institution like UTI.

CHAPTER IV

RESEARCH MATHODOLOGY

DEFINITION OF RESEARCH
It is the process which is being undertaken within a framework of a set of philosophies
(approaches); uses procedures, methods and techniques that have been tested for their validity
and reliability; is designed to be unbiased and objective.
Research in common parlance refers to the search for knowledge. It can also be defined as
scientific and systematic search for pertinent information on a specific topic. In fact, research
is an art of scientific investigation. Research is a voyage of discovery. It is also said to be the
pursuit of truth with the help of study, observation, comparison and experiment.
The role of research in several fields of applied economics whether related to business or to
economy as a whole, has greatly influenced in modern times. The increasing complex nature
of business and government has focused on the use of research in solving problems.
According to Kerlinger, Research is a systematic, controlled, empirical and critical
investigation of hypothetical propositions about the presumed relation among natural
phenomenon.
1. Validity: - means that correct procedures have been applied to find answers to a
question.
2. Reliability: - refers to the quality of a measurement procedure that provides
repeatability and accuracy.
3. Unbiased and objective: - means that you have taken each step in an unbiased
manner and drawn each conclusion to the best of your ability and without introducing
your own vested interest. (Bias is a deliberate attempt to either conceal or highlight
something).
Adherence to the three criteria mentioned above enables the process to be called
research. However, the degree to which these criteria are expected to be fulfilled
varies from discipline to discipline and so the meaning of research differs from one
academic discipline to another. The difference between research and non-research
activity is, in the way we find answer: the process must meet certain requirements to
be called research.

TYPES OF RESEARCH
1. Pure research: - It involves developing and testing theories and hypotheses that
are intellectually challenging to the researcher but may or may not have practical
application at the present time or in the future. The knowledge produced through
pure research is sought in order to add to the existing body of research methods.
2. Applied research: - It is done to solve specific, practical question; for policy
formulation, administration and understanding of a phenomenon. It can be
exploratory, but is usually descriptive. It is almost always done on the basis of
basic research. Applied research can be carried out by academic or industrial
institutions. Often, an academic institution such as a university will have a specific
applied research program funded by an industrial partner interested in that
program.
3. Descriptive research: - It attempts to describe systematically a situation,
problem, phenomenon, service or programme, or provides information about ,
say, living condition of a community , or describe attitudes towards an issue.
4. Correlation research: - It attempts to discover or establish the existence of a
relationship / interdependence between two or more aspects of a situation.
5. Explanatory research:- It attempts to clarify why and how there is a relationship
between two or more aspects of a situation or phenomenon.
6. Exploratory research: - It is undertaken to explore an area where little is known
or to investigate the possibilities of undertaking a particular a particular research
study.

OBJECTIVE OF THE STUDY

To know about the perception of Primary market.

To know about the risk of Primary market.
To study about the regular return.
To study how to earn more liquidity.
To study the safety of investment.
To find out the important factor which do mostly affect to the customer.
To develop a good strategy and process that improves the business of the

organization.
To be able to compare and analyze the various Financial Products.
Business development and revenue generation.

RESEARCH DESIGN
Non Probability
The non probability respondents have been researched by selecting by the person who do
the stock trading. Those people who do not trade in stocks have not been interviewed.

Exploratory and Descriptive Research

The research is paramilitary both exploratory and descriptive in nature. The sources of
information are both primary and secondary. The secondary data has been taken by referring
to various magazines, news papers, internal sources and internet to get the figure required for
research purposes. The object of the exploratory research is to gain insights and ideas. The
objective of the descriptive research study is typically concern with determining the
frequency with which something occurs. A well structured questionnaire was prepared for the
primary research and personal interviews were conducted to collect the responses of target
population.

Methods of Primary Data Collection

SURVEY METHOD
Approach most suited for gathering descriptive information:

Structured Surveys: In this research formal list of questions asked of all respondents
in the same way.

Direct Approach: - In this research direct questions were asked about their investing
behaviors and thoughts.

SAMPLE DESIGN

Sampling Unit: -The researcher must determine what type of information is

needed and who is likely to have it.

Individual
Investors

Serviceme
n

Businessm
en

College
Students

Sample Size: - In order to conduct the study, sample of 120 investors will be
selected from Jodhpur.

Sampling Area: -Sample members may be chosen at random from the entire
population.

Probability sample: - The researcher might select people who are easier to obtain
information from (No probability sample)

Data collection sources: - Research work is descriptive in nature. Information

has been collected from Primary sources, which includes Questionnaire, Interviews
and Interaction with investors.

CHAPTER V

DATA ANALYSIS AND INTERPRETATION

Q.1 Education Qualification

Education Qualification
10th Std.
12th Std.
Graduation
Post Graduate
Others

No. of Respondents
12
38
30
25
15

Interpretation
The above diagram shows that 12 respondents are Metric pass, 38 are Senior Secondary pass,
30 are Graduate, 25 respondents are Post graduate and 15 are from professional course.

Q.2 Occupation
Occupation
House maker
Employed
Business
Student
Others

No. of Respondents
7
41
52
7
14

Interpretation
The above diagram shows that 7 respondents are House maker, 41 are employed, 52
respondents are businessman , 7 respondents are student and 14 are from different category.

Q.3 Family Income per Month

Family Income per Month
Below Rs. 10000
Rs.10000-20000
Rs.20000-35000
35000-50000
50000 above

No. of Respondents
0
4
15
43
58

Interpretation
The above diagram shows that maximum respondents family income is more than 50000 ,
43 respondents family income is 35000-50000, 15 respondents family income is between
20000-35000, 4 respondents family income is between 10000-20000.

Q.4 Have you ever invested in stock market?

Invested in Stock Market

No. of Respondents

Yes

100

No

20

Interpretation
The above diagram shows that 83% i.e. 100 respondents said that they are invested in the
stock market and 17% i.e. 20 respondents said that they did not invest in the stock market.

Q.5 If yes, in which type of market?

Type of market

No. of respondents

Primary Market

75

Secondary Market

20

Both

Interpretation
The above diagram depicts that 75 respondents said that they invest in primary market, 20
respondents said that they invest in secondary market and 5 respondents said that they invest
in both markets i.e. primary as well as secondary.

Q.6 What is your source of information regarding primary market?

Source of Information
News
Broker
TV
Internet
Multiple

No. of Respondents
12
45
10
3
10

Interpretation
The above diagram shows that respondents i.e. maximum from total 80 respondents said that
they got the knowledge from their brokers, 12respondents said that they got knowledge about
primary market from News/newspaper, 10 respondents got information through TV, 3 from
Internet and 10 respondents said sources for information.

Q.7 In which of the following you would like to invest your money?
Like to Invest

No. of Respondents

Private Company
Government Company
Semi Government Co.
Multiple

30
22
10
18

Interpretation
The above diagram depicts that 30 respondents said that they like to invest in Private
companies, 22 respondents said Govt. companies, 10 respondents said they like to invest in
Semi-Govt. companies and 18 respondents said they like to invest in multiple companies.

Q.8 How much % of your income you invest yearly ?

%age of Income Invest

No.of Respondents

0-20%
20-35%
35-50%
Above 50%

35
24
15
6

Interpretation
The above diagram shows that 35 respondents said that they invest upto 20% of their income
in primary market, 24 respondents said that they invest upto 20% to 35% of their income, 15
respondents said they like to invest in 35% to 50% of their income, and 6 respondents said
that they invest above 50% of their income in primary market.

Q.9 In which sector you like to invest your money?

Investment Sector

No. of Respondents

Insurance
Infrastructure
Telecom
IT Sector
Multiple

10
34
21
12
3

Interpretation
The above diagram shows that 10 respondents said that they invest in insurance sector, 34
respondents said they invest in Infrastructure sector, 21 respondents said that they invest in
Telecom sector, 12 respondents said that they invest in IT sector and 3 respondents said that
they invest in multiple sectors.

Q.10 In an estimate, how much is your total portfolio of investment?

Total Portfolio

No.of Respondents

Rs.10000 to 50000

40

Rs.50000 to 1 Lac

30

Above Rs.1 Lac

10

Interpretation
The above diagram shows that 40 respondents said that their yearly portfolio has been
between Rs.10000 to 50000, 30 respondents said that their yearly portfolio has been between
Rs.50000 to 1 Lac and 10 respondents said that their yearly portfolio has been above Rs. 1
Lac.

Q.11 For how much period you would prefer to invest?

Investment Time
Short term
Long term (5 year & more)

No. of Respondents
35
45

Interpretation
The above diagram shows that 35 respondents said that they invest for short time and 45
respondents said that they invest for long term.

Q.12 Do you think investing in primary market is risky?

Risky Investment
Yes
No

No. of Respondents
22
58

Interpretation
The above diagram shows that 27.50% respondents i.e. 22 said that primary market
investment is risky and 72.50% respondents i.e. 58 said that primary market investment is not
risky.

Q.13 If yes, then how much of risk you consider in it?

Risk
High
Moderately
Low

No. of Respondents
3
6
13

Interpretation
The above diagram shows that 3 respondents said that primary market is highly risky, 6
respondents said moderately risky and 13 respondents said primary market is risky but not
high.

Q.14 How much return has been earned by you from primary market?

%age of Return
10-50%
50-100%
100-150%
150-200%

No. of Respondents
45
10
12
5

Interpretation
The above diagram shows that 45 respondents said that they earn 10-50% return from their
primary market investments, 10 respondents earn 50-100% return, 12 respondents earn 100 to
150% return and 5 respondents said that they earn between 150 to 200% return from primary
market.

Q.15 What criteria you use to invest in an IPO?

Criteria for Invest

No. of Respondents

Past Experience
Company Result
Multiple

7
55
18

Interpretation
The above diagram shows that 7 respondents said that they use their past experience for new
investment into primary market, 55 respondents said they watch current results of companies
in which they want to invest and 18 respondents said they watch other things whenever they
go for investment in primary market.

Q.16 From where you get to know about these criteria?

Knowledge about Criteria
Share Broker
News Paper
Magazine

No. of Respondents
58
19
3

Interpretation
The above diagram shows that 58 respondents said that know about their criteria from their
Share brokers, 19 respondents said they got knowledge from Newspapers and 3 respondents
said they got knowledge from Magazine.

CHAPTER VI

FINDING AND SUGGESTION

FINDINGS

Most of respondents said that they are invested in the stock market and few of them
said that they did not invest in the stock market.

Maximum respondents said that they got the knowledge from their brokers, & some
of them said that they got knowledge about primary market from News/newspaper &
very few respondents got information through TV from Internet and any other sources
for information.

Retail investor divert their fund from the banking system to the primary market. As
the interest rate of saving account deposit decreased very much.

Most of respondents said that they invest less portion of their income in primary
market. Very few investors like to invest major portion of their income in primary
market.

Respondents view is that primary market investment is risky. So there is a fear in the
mind of respondents about to invest in primary market.

The study shows that maximum respondents among the sample respondents are
getting information related to the different services from the agents. It implies that
most powerful source of information about services is an agent.

There is a need to bring awareness among the general public about primary market.

SUGGESTIONS
On the basis of the Market survey conducted has put very interesting findings in the Market.
The very first suggestion to the investor is that the best thing for the investors to do to ensure
that they are not cheated in this IPO boom, is to study the prospectus themselves, read various
comments and take their own decision. Investors have to beware as all those who are keen to
grab a piece of the cake of the impending IPO boom, are doing so at their cost. Keep in mind
three Ps before investing in any IPO & Three Ps are

Promoter

Performance

Price

The next best suggestion to the investor is that they should be steer clear of IPOs
from lesser known industry and focus on offerings by well known industry leader
with quality management and strong financials.
The investor should not follow the IPO boom blindly as they can get cheated as they
during nineties IPO fiasco.
The companies should make regular contact with his customer through his marketing
executives. This would not only help in strengthening the business relation but would
also help in taking proper feedback of their products.
The majority of customers are price conscious so they should improve or decrease
their price/commission rate.
The companies should concentrate more on the sale promotion activities through
different media.
The market is not well aware of the product line of the companies, so companies
should give full information of there product line to the investors.
In corporate and institutions, people are looking for better service. So by providing
this it can gain the big reach its break even as soon as possible and can earn profit
from there.

 Customers get dissatisfied very soon. So they must be supported by a good customer
care unit. They need care and by providing that a long customer-organization
relationship can be built.

CONCLUSION
This project is based on the study of Investors attitude towards primary market. In the
today scenario its very important to study the customers psychological behaviour regarding
the various services provided by them.
In the end, I conclude that investor should not invest their hard earned money blindly in the
IPOs but they should invest their money by taking different safeguards like understand the
company business, who its promoter are, how is its management, its risk factor and pricing of
the issue etc.
Although there is SEBI to protect the investor but he company which follow the legal binding
of the SEBI is not fool proof that the company is a good one.
It has been concluded that on the one hand the customers are somewhat satisfied but on the
other hand, still some improvements are required. So, the broking companies segment is
flooded with the new schemes from new & existing players and moreover, lot many schemes
are waiting to hit the ramp in the coming years.
The main reason behind people not wanting to have investing of a particular company
is the lack of proper information. Moreover, people dont want to come out of cocoon
of their seemingly uncomplicated life. They seem satisfied with their old ways and
are wary of modern, new age products.
The most important factor that attracts the people towards investment in primary
market is the communication factor. This is the most important reason and for this,
people feel persuaded to buy it.

CHAPTER VII

BIBLIOGRAPHY AND ANNEXURE

BIBLIOGRAPHY
1. M.Y Khan., Financial Services, Himalaya publishing house Pvt. Ltd. New Delhi,
2001, p-10-20.
2. Kothari, C.R, Research methodology methods & techniques, 2nd edition, New age
international ltd. Publishers, 2005, P. No. 27-42.
3. Wilkinson & Bhandarkar, Business Research Methodology, 6th edition, Tata
McGraw Hill Publications, Delhi, 2005, PP 237-243.
4. Dr. Bansal K Lalit, Merchant Banking & Financial Services Vikas Publications,
2002, (Page 152- 155) (Page 175-185)

JOURNALS and MAGAZINES:1. Applied Finance, page no 261-268, volume 5 / Dec.2007.

2. Financial review, edition January 2007, pages no 34-40.
3. Management Accountant, May 2006 P. No.- 359-412.
Websites
1. www.thehindubusinessline.com
2. www.anandrathi.com
3. www.prowessdatabase.com
4. www.indiatimes.com

QUESTIONNAIRE
1. Name of the respondent
2. Gender
Male

______________________________

[ ]

Female

[ ]

18-30 years

[ ]

30-40 years

[ ]

40- 50 years

[ ]

above 50 years

[ ]

[ ]

Married

[ ]

3. Age groups

4. Marital Status
Single

5. Education Qualification
10th Std.

[ ]

12th Std.

[ ]

Graduation

[ ]

Post Graduate

[ ]

House wife

[ ]

Employed

[ ]

Business

[ ]

Student

[ ]

Others [

Others [

6. Occupation

7. Family Income per Month

Below Rs.10000

[ ]

Rs. 10000- 20000

[ ]

Rs. 20000- 35000

[ ]

Rs. 35000- 50000

[ ]

50000 Above

8. Have you ever invested in stock market? (If no then return the questionnaires)
Yes

[ ]

No

[ ]

Secondary Market

[ ]

9. If yes, in which type of market?

Primary Market

[ ]

10. What is your source of information regarding primary market?

News

[ ]

Broker

[ ]

Internet

[ ]

Any other

[ ]

11. In which of the following you would like to invest your money?
Private Company

[ ]

Govt. Company

[ ]

Semi Government

[ ]

Any other

[ ]

12. How much % of your income you invest yearly?

TV

[ ]

0-20%

[ ]

20-35%

[ ]

35-50%

[ ]

50% & above

[ ]

13. In which sector you like the most to invest your money?
Insurance

[ ]

Infrastructure

[ ]

Telecom

[ ]

IT Sector

[ ]

Any Other

[ ]

above 1 Lac

[ ]

14. In an estimate, how much is your total portfolio of investment?

Rs.10000 50000

[ ]

Rs.50000 1 Lac

[ ]

15. For how much period you would prefer to invest?

Short term

[ ]

Long term (5 & above)

[ ]

16. Do you think investing in primary market is risky?

Yes

[ ]

No

[ ]

17. If yes, then how much of risk you consider in it?

Highly

[ ]

Moderately

[ ]

Lower

[ ]

18. How much return has been earned by you from primary market?
10% 50%

[ ]

150% - 200%

[ ]

50%-100%

[ ]

100%-150%

[ ]

[ ]

Any Other

[ ]

[ ]

Magazine

[ ]

19. What criteria you use to invest in an IPO?

Past Experience

[ ]

Company Result

20. From where you get to know about these criteria?

Share Broker

[ ]

Newspaper

Thank you for support. It really helps me to reach at result.