1.

INTRODUCTION
IPO is the issues of shares by the companies when they want to go sfor public for the huge amount of investment into the purpose of the company for achieving the desired objective. The word IPO stands for Initial Public Offer and this is unique in more ways than one since it permanently changes the profile of a company and the way the promoters and the management need to think thereafter. The study on Assessment of Investor risk in in IPO is concerned with to find investor risk prevailing in public offerings.

MEANING:
Initial public offering (IPO), also referred to simply as a "public offering" or "flotation," is when a company issues common stock or shares to the public for the first time. They are often issued by smaller, younger companies seeking capital to expand, but can also be done by large privately-owned companies looking to become publicly traded. In an IPO the issuer may obtain the assistance of an underwriting firm, which helps it determine what type of security to issue (common or preferred), best offering price and time to bring it to market. 1.1

NEED FOR THE STUDY

This study is useful to the investors in taking decisions relating to investments in IPO. Study about the IPO process which involves various procedures, Requirements and need for the company for making an IPO. The process made through the analysis of success and failure of various IPOs makes clear about the investment decisions for the investor. This study facilitates to know the growth of economy through IPOs for last two decades.

1.1

OBJECTIVES OF THE STUDY

To know the number of IPO s in India and the funds generated by them since 2001. To know the types of investors for selected IPOs. To analyze the risk & return involved in each selected IPOs by using variance and standard deviation. To analyze the pre issue and post issue financial performance of each company. To study the stock performance of selected 6 companies .

1.1

LIMITATIONS OF THE STUDY

Although initial public offers are issued by many companies, this study is confined to a few companies only. The project duration is not enough to get the thorough knowledge of IPO. Because of time limitation the study consists of last three years data to compare the IPO performance. Due to confidentiality it is difficult to get in-depth data. The project is prepared in limitation to the availability of data. The study is restricted only to find out and compare risk and return of selected companies.

INITIAL PUBLIC OFFERING

An initial public offering is the point at which a company ceases to be privately held and becomes publicly held and IPO requires that a company become listed on a stock exchange, and that its shares become publicity traded.

DEFINITION:
Abbreviation for Initial Public Offering. An IPO is a companys first sale of stock to the public; also refer to as going to the public.

The flotation of private company on the stock exchange. Companies fall into two broad categories: private company public company A privately held company has fewer shareholders and its owners don't have to disclose much information about the company. Anybody can go out and incorporate a company. It usually isn't possible to buy shares in a private company. We can approach the owners about investing but they are not obligated to sell us anything.

PRIVATE COMPANY:

PUBLIC COMPANY:
Public companies, on the other hand, have sold at least a portion of themselves to the public and trade on a stock exchange. This is why doing an IPO is also referred to as "going public." Public companies have thousands of shareholders and are subject to strict rules and regulations. They must have a board of directors and they must report financial information every quarter. In the United States, public companies report to the Securities and Exchange Commission (SEC). In other countries, public companies are overseen by governing bodies similar to the SEC. From an investor's standpoint, the most exciting thing about a public company is that the stock is traded in the open market, like any other commodity.

REASONS FOR GOING TO THE PUBLIC:

Raising funds to finance capital expenditure programs like expansion, diversification, modernization, etc. Financing of increased working capital requirements. Financing acquisitions like a manufacturing unit, brand acquisitions, tender offers for shares of another firm etc. Debit financing.

SIGNIFICANCE OF IPO:
SIGNIFICANCE TO THE COMPANY: The costs of an initial public offering are small as compared to the costs of borrowing large sums of money for ten years or more. The capital raised never has to be repaid. When a company sells its stock publicly, there is also the possibility for appreciation of the share price due to market factors not directly related to the company. It allows a company to tap a wide pool of investors to provide it with large volumes of capital for future growth.

SIGNIFICANCE TO THE SHAREHOLDERS:

The investors often see IPO as an easy way to make money. One of the most attractive features of an IPO is that the shares offered are usually priced very low and the companys stock prices can increase significantly during the day the shares are offered. The speculative investors are interested only in the short-term potential rather than long-term gains.

BENEFITS THROUGH IPO:

Money non-refundable except in the case of winding up or buy back of shares. No financial burden i.e. no fixed rate of interest payable. However, in order to service the equity, dividend may be paid. Enhances shareholders value of the company performs well. Greater transferability. Training and listing of securities at stock exchanges. Better liquidity of shares. Enables valuation of the company. 1

Helps building reputation of promoters, company data products/services, provided the company performs well.

LIMITATIONS OF IPO: Dilution of ownership stake makes the company potential vulnerable for future takeovers. Involves substantial expenses ranging between 4% and 15% of the size of the issue. Several legal formalities. Transparency requirements and public disclosure of information may lead to lack of the privacy. Continuous compliance of provisions of listing agreement and other legal requirements. Constant scrutiny of performance by investors. May lead to takeover of company. Securities of the company may be made subjective to speculative attacks. There is no mandatory requirement of minimum promoters contribution and lock in period in case of issues of securities by a company, which has been listed for last three year track record of dividend payment, out of preceding five years. However, promoters have disclosed the extent of their participation in the public/right issue. Similarly in case of companies issues, that is, right-cum-public issues, differential pricing is permissible, a justification for which must be given in the offer document. All companies are required to convert their partly paid up shares into fully paid-up or forfeit the same before making a public / rights issues.

FUNCTIONARIES OF IPO:

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 number agencies. 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:

PROMOTER:
The promoter is defined as a person (or persons, as the case may be) who is in over-all control of the company, is instrumental in the formulation of a plan or programme pursuant to which the securities are offered to the public and who is named in the prospectus as promoter. 2

Promoter group includes the promoter, an immediate relative of the promoter (i.e. spouse of that person, or any parent, brother, sister or child of the person or of the spouse).

MANAGERS TO THE ISSUE:

Lead managers are independent financial institutions appointed by the company going public. Companies appoint more than one lead manager to manage big IPOs.They are known as book running lead manager and co book running lead managers. Their main responsibilities are to initiate the IPO processing, help company in road shows, creating Draft offer document and get it approved by SEBI and stock exchanges and helps the companies to list shares at stock market.

REGISTRAR:
Registrar of a public issue is a prime body in processing IPOs. They are independent financial institutions registered with SEBI and stock exchanges.

GOVERNMENT STATUTORY /AGENCIES:

The various regulatory bodies related with the public issue are: Securities Exchange Board of India Registrar of companies Reserve Bank of India (if the project involves foreign investment) Stock Exchange where the issue is going to be listed Industrial licensing authorities Bankers to the issue have the responsibility of collecting the application money along with the application form. The bankers to the issue generally charge commission besides the brokerage, if any. Depending upon the size of the public issue more than one banker to the issue is appointed. 3

BANKERS:

ADVERTISING AGENCY:
Advertising plays a key role in promoting the public issue. Hence, the past track record of the advertising agency is studied carefully the issue. The advertising agencies take the responsibility of giving publicity to the issue on the suitable media. The media may be newspapers/ magazines/ hoardings/press release or a combination of all.

BROKER:
Any member of any recognized stock exchange can be appointed as broker to the issue. Appointment of broker to the issue is not mandatory as per SEBI guidelines.

FINANCIAL INSTITUTIONS:
Financial institutions generally underwrite the issue and lend term loans to the companies. Hence, normally they go through the draft of prospectus, study the proposed program for public issue and approve them. IDBI, IFCI & ICICI, LIC, GIC and UTI are the some of the financial institutions.

ISSUES IN PRIMARY MARKET

FINANCIALS OF IPOs
Primarily, issues can be classified as a Public, Rights or preferential issues (also known as private placements). While public and rights issues involve a detailed procedure, private placements or preferential issues are relatively simpler. The classification of issues is illustrated below. Public issues can be further classified into Initial Public offerings and further public offerings. In a public offering, the issuer makes an offer for new investors to enter its shareholding family. The issuer company makes detailed disclosures as per the DIP guidelines in its offer document and offers it for subscription. The significant features and figure are showed below.

Issues

Private Placement

Private Placement

Preferential Issue

Qualified Institutions Placement

Initial Public Offerings

Follow on Public Offerings

PUBLIC ISSUES:

INITIAL PUBLIC OFFERING (IPO):

An Initial Public Offering(IPO) is when an unlisted company makes

either a fresh issue of securities or an offer for sale of its existing securities or both for the first time to the public. This paves way for listing and trading of the issuers securities.

FOLLOW ON PUBLIC OFFERING (FPO):

A Follow on Public Offering (FPO) is when an already listed company makes either a fresh issue of securities to the public or an offer for sale to the public, through an offer document. An offer for sale in such scenario is allowed only if it is made to satisfy listing or continuous listing obligations.

RIGHT ISSUES:
Rights Issue (RI) is when a listed company which proposes to issue fresh securities to its existing shareholders as on a record date. The rights are normally offered in a particular ratio to the number of securities held prior to the issue. This route is best suited for companies who would like to raise capital without diluting stake of its existing shareholders unless they do not intend to subscribe to their entitlements.

PRIVATE PLACEMENT:
Private placement is an issue of shares or of convertible securities by a company to a selected group of persons under Section 81 of the Companies Act, 1956 that is neither a rights issue nor a public issue. This is a faster way for a company to raise equity capital.

PREFERENTIAL ISSUES:
A preferential issue is an issue of shares or of convertible securities by listed companies to a select group of persons under Section 81 of the Companies Act, 1956 which is neither a rights issue nor a public issue. This is a faster way for a company to raise equity capital. The issuer company has to comply with the Companies Act and the requirements contained in Chapter pertaining to preferential allotment in SEBI (DIP) guidelines which inter-alias include pricing, disclosures in notice etc.

QUALIFIED INSTITUTIONAL BUYERS(QIB):

A qualified institutions placement is a private placement of equity shares or securities convertible into equity shares by a listed company to Qualified Institutions Buyers

RISK ASSESSMENT
The possibility of buying stock in a promising start-up company and finding the next success story has intrigued many investors. But before taking the big step, it is essential to understand some of the challenges, basic risks and potential rewards associated with investing in an IPO. This has made Risk Assessment an important part of Investment Analysis. Higher the desired returns, higher would be the risk involved. Therefore, a thorough analysis of risk associated with the investment should be done before any consideration. For investing in an IPO, it is essential not only to know about the working of an IPO, but we also need to know about the company in which we are planning to invest. Hence, it is imperative to know: The fundamentals of the business The policies and the objectives of the business Their products and services Their competitors Their share in the current market The scope of their issue being successful It would be highly risky to invest without having this basic knowledge about the company. Here are 3 kinds of risks involved in investing in IPO: 2

 BUSINESS RISK : It is important to note whether the company has sound business and management policies, which are consistent with the standard norms. Researching business risk involves examining the business model of the company.

FINANCIAL RISK :
Is this company solvent with sufficient capital to suffer short-term business setbacks? The liquidity position of the company also needs to be considered. Researching financial risk involves examining the corporation's financial statements, capital structure, and other financial data.

MARKET RISK :
It would beneficial to check out the demand for the IPO in the market, i.e., the appeal of the IPO to other investors in the market. Hence, researching market risk involves examining the appeal of the corporation to current and future market conditions.

ELIGIBILITY NORMS, PRICING & STRUCTURING OF AN IPO

ELIGIBILITY NORMS FOR MAKING THESE ISSUES

SEBI has laid down eligibility norms for entities accessing the primary market through public issues. There is no eligibility norm for a listed company making a rights issue, as it is an offer made to the existing shareholders who are expected to know their company. The main entry norms for companies making a public issue (IPO or FPO) are summarized as under:

ENTRY NORM I (EN I): The Company shall meet the following requirements: (a) Net Tangible Assets of at least Rs. 3 crores for 3 full years. (b) Distributable profits in at least three years (c) Net worth of at least Rs. 1 crore in three years (d) If change in name, at least 50% revenue for preceding 1 year should be from the new activity. (e) The issue size does not exceed 5 times the pre- issue net worth To provide sufficient flexibility and also to ensure that genuine companies do not suffer on account of rigidity of the parameters, SEBI has provided two other alternative routes to company not satisfying any of the above conditions, for accessing the primary Market, as under: ENTRY NORM II (EN II): (a) Issue shall be through book building route, with at least 50% to be mandatory allotted to the Qualified Institutional Buyers (QIBs). (b) The minimum post-issue face value capital shall be Rs. 10 crore or there shall be a compulsory market-making for at least 2 years OR ENTRY NORM III (EN III): (a) The project is appraised and participated to the extent of 15% by FIs/Scheduled Commercial Banks of which at least 10% comes from the appraiser(s). (b) The minimum post-issue face value capital shall be Rs. 10 crore or there shall be a compulsory market-making for at least 2 years.

In addition to satisfying the aforesaid eligibility norms, the company shall also satisfy the criteria of having at least 1000 prospective allotters in its issue

CATEGORY OF ENTITIES WHICH ARE EXEMPTED FROM THE AFORESAID ELIGIBILITY NORMS:
SEBI (DIP) guidelines have provided certain exemptions from the eligibility norms. The following are eligible for exemption from entry norms. (a) Private Sector Banks (b) Public Sector Banks (c) An infrastructure company whose project has been appraised by a PFI or IDFC or IL&FS or a bank which was earlier a PFI and not less than 5% of the project cost is financed by any of these institutions. (d) Rights issue by a listed company.

OTHER IMPORTANT ISSUE REQUIREMENTS:

All new issues shall be in dematerialized form can also be made through online interface following the necessary guide lines. The minimum application size shall be worth Rs. 2000. The maximum size of an application can be equal to the net public offer. In an offer for sale, the entire subscription amount shall be brought in at the time of application. If there are calls on shares, they should be completed within 12 months of the issue. Over-subscription of a maximum of 10% of the net offer to public can be retained. Buy back arrangements can be made with a minimum period of 6 months and for a maximum of 1000 shares per allot tee.

Issues should be opened within 365 days from the date of SEBI approval or after 21 days of filing with SEBI.

IPO shall be kept open for a min of 3 days and max of 10 working days.

THE STOCK EXCHANGE LISTING AGREEMENT:

Compliance with the stock exchanges listing guide lines under its listing agreement is also important in order to be able to seek listing of shares pursuant to an IPO. The conditions for listing shares by an unlisted company pursuant to an IPO on the BSE are listed below: 1. New companies can be listed on the exchange, if their issued and subscribed equity capital after the public issue is equal to or more than Rs. 10 crore. In addition to this, the company should have a post-issue net worth of Rs.20 crore. 2. For new companies in high technology sectors, the following criteria will be applicable. a. The total income/sales from the main activity should not be less than 75% of the total income during the two preceding years. b. The minimum post-issue paid-up capital should be Rs.5 crore. c. The minimum market capitalization should be Rs.50 cores. d. Post-issue net worth of Rs.20 crore.

THE CONDITIONS FOR LISTING ON THE NSE ARE GIVEN BELOW:

1. New companies can be listed on the exchange, if issued and subscribed capital after the issue is equal to or more than Rs. 10 crores and post-issue net worth of Rs. 20 crores. 2. For new companies in knowledge based industries, the applicable capital criterion is Rs. 5 crore with a minimum market capitalization of Rs. 50 crore. The total income/sales 1

should not be less than 75% of the total income during the immediately two preceding years. 3. The applicant company should have a track record of three years of existence. If the applicant is promoted by another company, that company should have the minimum stipulated existence. 4. The application for listing in the case of an IPO shall be made within 6 months of the closure of the issue.

5. The project should have been appraised by specified agencies such as the all India financial institutions.

ISSUE PRICING
The Securities and Exchange Board of India (SEBI) introduced free pricing of shares for public offerings in 1992. As per the current guide lines (Disclosure and Investor Protection guide lines 2000), every company either unlisted or listed, which is eligible to make a public issue can freely price its shares. There is no price formula stipulated by SEBI. SEBI does not play any role in price fixation. The company and merchant banker are however required to give full disclosures of the parameters which they had considered while deciding the issue price. There are two types of issues one where company and LM fix a price (called fixed price) and other, where the company and LM stipulate a floor price or a price band and leave it to market forces to determine the final price (price discovery through book building process). Pricing issue is done keeping in mind the qualitative features, and by using selective multiples as benchmarks than through the conventional approach of the discounted cash flow method. The usual parameters used are the Price to Earnings Ratio and Price to Book value Ratio. In addition to the above, the following points have to be kept in mind: Projected earnings of the company cannot be used as a justification for the issue price in the offer document. 2

The accounting ratios should be calculated after giving effect to the consequent increase in capital on account of compulsory conversions outstanding, as well to subscribe for additional capital shall be exercised.

Comparison of all the accounting ratios of the issuer company as mentioned above has to be made with the industry average and with the other companies.

FIXED PRICE OFFERS:

An issuer company is allowed to freely price the issue. The basis of issue price is disclosed in the offer document where the issuer discloses in detail about the qualitative and quantitative factors justifying the issue price. The Issuer company can mention a price band of 20% (cap in the price band should not be more than 20% of the floor price) in the Draft offer documents filed with SEBI and actual price can be determined at a later date before filing of the final offer document with SEBI/Rocs.

BOOK BUILDING METHOD OF IPO:

Book Building is basically a capital issuance process used in Initial Public Offer (IPO) which aids price and demand discovery. It is a process used for marketing a public offer of equity shares of a company. It is a mechanism where, during the period for which the book for the IPO is open, bids are collected from investors at various prices, which are above or equal to the floor price. The process aims at tapping both wholesale and retail investors. The offer/issue price is then determined after the bid closing date based on certain evaluation criteria.

APPLICABLE PROVISIONS FOR A BOOK BUILDING ISSUE:

In a book-built issue, reservation and firm allotment may be made only in respect of permanent employees of the issuer company/promoting company and shareholders of the promoting companies to the extent they permitted in the DIP guide lines. The other allocation norms for a 100% and 75% book-built issue are as listed below: Not more than 50% of the net public offer shall be allocated to QIBs. Not less than 25% of the net public offer shall be allocated to non-institutional bidders.

THE PROCESS:

The Issuer who is planning an IPO nominates a lead merchant banker as a 'book runner'. The Issuer specifies the number of securities to be issued and the price band for orders. The Issuer also appoints syndicate members with whom orders can be placed by the investors. Investors place their order with a syndicate member who inputs the orders into the 'electronic book'. This process is called 'bidding' and is similar to open auction. A Book should remain open for a minimum of 5 days. Bids cannot be entered less than the floor price. Bids can be revised by the bidder before the issue closes. On the close of the book building period the 'book runner evaluates the bids on the basis of the evaluation criteria which may include Price Aggression Investor quality Earliness of bids, etc.

The book runner and the company conclude the final price at which it is willing to issue the stock and allocation of securities. Generally, the number of shares is fixed; the issue size gets frozen based on the price per share discovered through the book building process. Allocation of securities is made to the successful bidders. Book Building is a good concept and represents a capital market which is in the process of maturing.

DIFFERENCE BETWEEN SHARES OFFERED THROUGH BOOK BUILDING AND OFFER OF SHARESTHROUGH NORMAL PUBLIC ISSUE:
Features Fixed Price process Pricing Price at which the securities are offered/allotted is known in advance to the investor. Book Building process Price at which securities will be offered/allotted is not known in advance to the investor. Only an indicative price range is

known. Demand Demand for the securities offered Demand for the securities offered can be is known only after the closure of known everyday as the book is built. the issue Payment Payment if made at the time of subscription wherein refund is given after allocation. Payment only after allocation.

ISSUE STRUCTURING
The issue structure refers to the following points The face value of the share, the premium thereon and the final price. In book built issues, the final price is not done until after the bidding is over, but a floor price is determined. The minimum amount of subscription per applicant and the maximum. The terms of the issue with regard to payment of the offer price and eligibility criteria for applicants. Firm allotments if any and any other details thereof, as per applicable DIP guide lines. Net public offer. Underwriting, either mandatory or discretionary. 1

Cost parameters for the issue and an acceptable issue budget.

THE ISSUE SIZE & STRUCTURE IS DETERMINED AS FOLLOWS: The issue size = promoters quota+ firm allotments + net public offer. Public offer = firm allotments + net public offer. Net public offer = issue size promoters quota firm allotment.

ANANLYSING AN IPO INVESTMENT:

POTENTIAL INVESTORS AND THEIR OBJECTIVES: The potential investors and their objectives could be categorized as:

INCOME INVESTOR:
An income investor is the one who is looking for steadily rising profits that will be distributed to shareholders regularly. For this, he needs to examine the company's potential for profits and its dividend policy.

GROWTH INVESTOR:
A growth investor is the one who is looking for potential steady increase in profits that are reinvested for further expansion. For this he needs to evaluate the company's growth plan, earnings and potential for retained earnings.

SPECULATOR:

A speculator looks for short-term capital gains. For this he needs to look for potential of an early market breakthrough or discovery that will send the price up quickly with little care about a rapid decline.

DIMENSIONS IN DECISIONS INVOLVED IN MAKING AN IPO

STRATEGIC DIMENSION:
Strategically speaking a company should go for an IPO only when it is mature enough for it. This depends on the following points: Does the company need the IPO as a liquidity event for its existing investors? Has the company matured enough to unlock the value? Is the companys business model retail-oriented with a strong brand presence so as to identify with the retail investor? Is the companys visibility in the market is sufficient enough for investors to perceive its business model to the full extent and unlock value for its shareholders through the IPO?

FINANCIAL DIMENSION:
The next dimension of the IPO decision is a financial one. In capital intensive industries and large industries such as heavy engineering, automobiles, infrastructure and some other industries the business model is so large that going public could become inevitable in order to maintain balance in the capital structure. They would require IPO and some multiple rounds of offers after IPO to keep financing their growth and consolidation. Therefore, in such cases, IPO and public offers are more of financing decisions than strategic. The same is true of certain start-up businesses that need to look at an IPO more as a source of finance than as a strategic move.

MERCHANT BANKING DIMENSION:

Merchant bankers take a call on the IPO proposal based on the business plan and financial position of the company, expected future performance, prevailing conditions in the primary market, expected issue pricing, size of the offer and post issue capital structure. The key drivers for the merchant banker are the market conditions, own placement strength and the main selling points in the issue. On the other hand, if the promoters are bringing in additional contribution in the issue at the same issue price, it adds to the marketability of the issue. Timing is an important criterion in the IPO decision. The IPO decision should be taken considering the strategic, financial and merchant banking considerations. For certain projects and business, going public is an imperative. In such cases, the IPO should be structured to deliver the best results.

ROLE OF SEBI REGULATORY BODY

Up to 1992, the capital market was controlled by the controller of the capital issue (CCI) formed under the capital issue controlled act. During that period, the pricing of the capital issued was controlled by the CCI. The premium on issue of the equity shares issued through the primary markets was done in accordance with the capital issued act. The CCI guidelines were abolished with the introduction of securities &exchange board of India (SEBI) formed under the SEBI act, 1992 with the prime objective of protecting the interest of investors in securities, promoting the development and regulating, the securities market and matters connected there with or incidental there to. The SEBI act came into force on 30th January, 1992 and with its establishment, all public issues are governed by the rules regulations issued by SEBI. SEBI was formed to promote far dealing in issues of securities and to ensure that the capital market functions efficiently, transparently economically in the interest of both the issuer and the investors. 1

 The promoters and investor must be protected from unethical practices and their rights must be safeguarded so that there is a steadily flow of saving into the market. There must be proper regulation and code of conduct and fair practice by intermediaries to make them competitive and professional. Since its formation, SEBI has been instrumental in brining grater transparency in capital issues. Under the umbrella of SEBI, companies issuing shares are free to fix the premium provided adequate disclosure is made in the offer document. Focus being the greater investor protection, SEBI has become a vigilant watchdog.

APPONTMENT

OF

MERCHANT

BANKERS

&

OTHER

INTERMEDIARIES:
Along with the Merchant Banker, other intermediaries are appoint who are duly registered with the Board. The company first selects the Merchant Banker(s) for handling the issue. The merchant Banker should have a valid SEBI registration to be eligible for appointment. The criteria normally used in selection of the Merchant Banker are: Past track record in successfully handling similar issues. Distribution network with institution and individual investors. Trained manpower and skills for instrument designing and pricing. General reputation the market. Good rapport with other market intermediaries. A Merchant Banker can associate with the issue in any of the following capacities: Lead manager to the issue Co-manager to the issue Underwriter to issue Advisor/consultant to the issue SEBI has set certain limits on the maximum number of intermediaries associated with the issue.

Size of the issue manager Less than Rs 50 cr Rs 50 cr to Rs 100 cr Rs 100 cr to Rs 200 cr Rs 200 cr to Rs 400 cr Above Rs 400 cr

No of lead 2 3 4 5 No limit but subject to SEBI approval

The number of Co-Managers cannot exceed the number of Lead Mangers appointed for that issue. There can be only one Advisor/Consultant to the issue. There is no limit on the number of underwriters to the issue. There is no limit on the number of underwriters to the issue. An associate company of the issuer company cannot be appointed either as lead manager or CO-Manager to the issue. However they can be appointed as underwriter or Advisor/ consultant to the issue. The other intermediaries appointed are: A. Registrar to the Issue B. Bankers to the Issue C. Debenture Trustees(if applicable) D. Advertising Agencies E. Printers of stationary F. Underwriters to the Issue G. Brokers to the Issue

A.REGISTRAR TO THE ISSUE:

Registration with SEBI is mandatory for as Register and share Transfer Agent. A category I Registrar can act as both Registrar to the issue and as a share Transfer Agent. The minimum net worth requirement is Rs.6 lakhs for a category I Registrar and Rs.3 lakh category II Registrar. In addition to net worth requirement, SEBI also look at the infrastructure facilities before giving registration. The promoter or director of the issuer company cannot act as a registrar to the issue. If the number of applicants is more than the issuer company can appoint more 2

than one registrar registered with the board, in consultation with the Lead Merchant Banker. The registrar is solely is responsible for the management of the issue The Registrar provides administrative support to the issue process. The company enters into an MOU with the Registrar to the Issue, which lays down the terms and conditions of appointment. The main functions of the Registrar include. Assist the Lead Manager in selection of the Bankers to the Issue and the Collection Centers. A. BANKERS TO THE ISSUE: This was one capital market activity which lacked regulatory clarity for a long time. The ambiguity arose, because it was unclear as to whether it was RBI or SEBI which regulated public issue banking. An anomalous situation prevailed as SEBI issued guidelines to the banks, while it had no means to ensure compliance of the same. Though RBI had regulatory jurisdiction over the banks, compliance with the provisions of the banking law and its own directives took precedence over enforcement of SEBI guidelines. As a consequence, investors suffered from a spate of irregularities involving refund orders, acceptance of late applications after the closure of issue,etc. The banker to the issue also performs the fallowing functions: Open the shares Application Money Account of the company. All the issue proceeds are transferred only to this account. The company cannot withdraw the money from this account till the entire process of allotment and is completed. Refund of application money to unsuccessful applicants. Acceptance of money payable on allotment and on calls.

A. DEBENTURE TRUSTEES: The Debenture Trustees are required to obtain a Certificate of Registration from SEBI. The SEBI (Debenture Trustee) Regulations,1993 provides for the following responsibilities for the debenture trustees. Call for periodical repots the company.

A. UNDERWRITERS TO THE ISSUE: The SEBI (Underwriters) Rules, 1993 define underwriting as an agreement, with or without conditions to subscribe to the securities of a body 2

corporate, when the existing shareholders of such body corporate or the, when the existing shareholders of such body corporate or the public do not subscribe to the securities offered to them. SEBI registered Merchant Banker: Members of any Stock Exchange and holding SEBI registration. Registration as underwriter under SEBI (Underwriters) Rules, 1993.

E.BROKER TO THE ISSUE:

Any member of any recognized stock exchange can be appointed as Broker to the Issue. Appointment of is not Broker to the Issue mandatory as per SEBI guidelines. The information regarding the brokers to the issue and the rate of brokerage payable is to be mentioned in the prospectus. The brokers often appoint sub-brokers to assign them in their work. They share the Brokerage earned with their sub-brokers. The main functions of the the issue are: Offer marketing support for the issue. Providing for distribution of issue stationery at the retail investor level. Disseminate information to the investors about the issue. Extend underwriting support to the issue. Provide advance market intelligence on the expected response to the issue. brokers to

F.ADVERTISING AGENCIES:
The success of many a public issue can be attributed to savvy advertising campaign. The role of advertising agency is of crucial importance in determining the fate of the issue. Based on their presentations and further consultations with the lead manager, the advertising agency is selected. The main functions of the advertising agency are as follows: Devising of advertising and publicity strategy. Designing and running the advertising campaign. Designing the corporate brochure and publicity material. Drafting and distribution of press releases. 2

Arranging press conference and road shows. Maintaining media relations to ensure adequate press coverage for the issue.

PRE-ISSUE OBLIGATIONS: The company selects the investment Banker(s) for handling the issue. The lead merchant banker should maintain a standard of due diligence that he would satisfy himself about all the aspects of offering, Veracity and adequacy of disclosure in the offer documents. The merchant banker is also liable even after the completion of issue process. The following documents should be submitted along with the offer document by the lead Manager: Memorandum of understanding (MOU) Inter-Allocation of Responsibilities Due Diligence Certificate Undertaking List of promoters Group

PROCEDURAL ASPECTS OF AN ISSUE:

1. The first task is to hold a Board Meeting to consider the proposal for a public issue, authorize the managing director to do all tasks relating to this issue and including expenses for the issue. 2. On the appointed day, the EGM is held and the shareholders pass a special resolution under section 81(1A) of the companies Act authorizing the company to make public issue. 3. Before embarking on an IPO, the first task is to identify the good merchant banker who can be appointed as lead manager for the issue. The details of the companys 1

project or fund raising plan are discussed with the merchant banker. After the discussion the company finalizes the appointment and enters into a memorandum of understanding with the lead manager. 4. The LM immediately on being appointed starts a due diligence on the company. Usually they go through the all documents and certificates and every relevant information for the issue. 5. In parallel, the LM starts preparation of the draft prospectus or offer document. All disclosure requirements and DIP guide lines have to be filled in. 6. The LM advises the company in the appointments of other intermediaries for the issue. These are the registrar to the issue, bankers to the issue, the printer and advertising agency. The registrar and bankers have to be registered with SEBI. 7. The LM also draws up the issue budget estimated to be spent on the issue. The main components of these are fees for LM, underwriters, registrar and banker, brokerage, postage, stationery, issue marketing expenses and statutory costs. 8. The draft prospectus is finalized by the LM in all respects in consultation with the management and placed before the board of directors for the approval so that it can be issued for filing. The draft prospectus has to be accompanied by the memorandum of understanding signed by the LM with the company. 9. Simultaneously, the company has to make listing applications to all stock exchanges where the shares are proposed to be listed accompanied by at least 10 copies of the draft prospectus. And that prospectus has to be made available to the public by the LM. The LM should also obtain and furnish to SEBI, an in-principle listing approval of the SE within 15 days of filing the draft offer documents with them.

10. The company has to enter into a tripartite agreement with the registrar and all depositories-(presently NSDL or CDSL) for offering the facility of offering the shares on dematerialized mode. Investors have to be given the facility to receive allotments through any one of the depositories or in physical mode according to option. 11. Within 21 days, SEBI would come out with their observations on the prospectus. The SE would also vet any changes to be made to the prospectus. The LM has to file a certificate with SEBI that all amendments and suggestions made by the SEBI have been incorporated in the offer document. 12. Once the draft prospectus is ready in its final form, a board meet has to be held to approve the filing of the same with ROC after being signed by all the directors. 13. This filing should be accompanied by all the material contracts pertaining to the issue and the company and all other documents listed in the prospectus. 14. The marketing of the issue is usually co-coordinated by the LM with the advertising agency. 15. Advertisements are regulated by DIP guidelines and the rules of the stock exchange. 16. The mandatory collection centers are finalized as per the SEBI guidelines in consultation with the bankers and the LM. 17. The LM and the printer finalize the dispatch schedule to all SE, SEBI, collection centers, investor associations, brokers and underwriters. 18. The marketing should be completed one week before the opening of the issue.

POST ISSUE OBLIGATIONS:

1. In issues wherein there is more than one LM, it is usual to entrust the entire postissue responsibility to one LM in inter-se allocation. 2. There are two reports that are required to be furnished to SEBI by the post-issue LM in the case of an IPO in the retail route in the prescribed form 3. The main task of the post-issue LM is to coordinate the process of collection of subscription figures from the bankers to the issue, processing of applications by the registrar, dispatch of allotment letters and refund orders to all applicants with in time. 4. The issue is to be closed on the earliest closing date; the LM should ensure that issue is fully subscribed before announcing closure. 5. In the case of devolved issues, the LM shall ensure that the underwriters honor their commitments within 60 days from the date of closure of issue. 6. The LM has to ensure that all issue proceeds are kept in separate bank accounts as provided in the companies Act and the funds are released to the company only after obtaining listing approvals from the respective stock exchanges. 7. The LM has to release an advertisement announcing the closure of the issue on the last day. 8. The responsibility of finalizing the basis of allotment in a fair and proper manner lies with the executive director of the designated stock exchange along with the post-issue LM and the registrar. 9. The post issue LM shall ensure that the demat credit and refund orders to the allot tees is completed within two working days after the basis of allotment is done. 10. The LM is responsible for following duties. a. Refund of subscription money to all non-allot tees. b. Refund of excess application money to all. 1

c. Attending to all investors grievances. d. Sanction of listing and trading permission by the stock exchanges. e. Filing of return of allotment with ROC.

3.1 INDUSTRY PROFILE ABOUT INDIAN BROKERAGE INDUSTRY:

Indian brokerage industry dates back to 1850s, but started growing strongly in the 1990s. After the creation of the regulatory body, the Securities Exchange Board of India (SEBI) and incorporation of NSE. But competition is intense as there are far too many brokers almost double the number of brokers in the US - competing for a much smaller market. The market is extremely fragmented with the top 5 firms accounting for only 14.6% of the turnover share during FY08. The brokerage market is largely retail and the retail investors are spread across the country (with majority from Mumbai). Online trading channels can play an important part in catering to the regional spread and has indeed shown good growth (30.6% CAGR in number of internet enabled brokerage firms, 71.1% CAGR in number of customers and 49.7%CAGR in share of total traded value since 2003). However, retail investors have shown an over whelming preference for non-delivery based trading (70.8% of the total cash market turnover during FY08). Intra-day trading makes physical distribution channel necessary .Because it offers high market data latency and proximity to trading advice of the brokers/Other investors. Growth in the number of sub-broker 1

network reflects this (CAGR of 46.1%from 150 in 1993 to 44,074 in 2008) as expansion of sub-brokerage network means less capital outgo for the brokers. High competition has resulted in a steady compression of brokerage commissions over the years and intensely since 2008 when Reliance Money, one of the new entrants with a massive physical distribution network, dropped it to extremely low levels. For a relatively young market, commissions are lower than even in the advanced markets. In order to improve profitability, top firms have been consciously trying to broaden their portfolio of services. But this is likely not to pay high dividends over the short to medium term due to the economic, competitive and regulatory headwinds against these service lines. Likely recovery of trading turnover in FY10. Further consolidation of the market share of the top 100 brokers. Possible decline in the number of brokers but increase in the number of sub-brokers. Rise in market share of Reliance Money but muted industry profitability in the short and medium term. Gain in FII market share by few of the top domestic brokerages. Their success is likely to draw in other players into this segment. Technology is a key success enabler for this client category and the overall electrification of the industry will progress rapidly over the next few years.

INDIAN FINANCIAL SYSTEM:

INDIAN FINANCIAL SYSTEM

Money Market

Capital Market

Organized Unorganized sector sector

Sub market

Gilt edged securities market

Industrial securities market

Development banks

Financial services

Call money market Treasury bill market

Primary/new issue market

IDBI

Merchant banking leasing

IFCI Secondary market ICICI Venture capital UTI Mutual funds factoring

Commercial bill market Certificates of depostit Government securities market

FINANCIAL MARKET:
Financial Markets are place where financial instruments are made to purchase or sell indirectly through intermediaries. This may be a physical location (like the NYSE) or an electronic system (like NASDAQ). Much trading of stocks takes place on an exchange still, corporate actions are outside an exchange, while any two companies or people, for whatever reason, may agree to sell stock from the one to the other without using an exchange. Trading of currencies and bonds is largely on a bilateral basis, although some bonds trade on a stock exchange, and people are building electronic systems for these as well, similar to stock exchanges. Financial markets can be domestic or they can be international.

TYPES OF FINANCIAL SYSTEM:

The financial markets can be divided into different subtypes: A] Capital markets which consist of: 1] Stock markets, which provide financing through the issuance of shares or common stock, and enable the subsequent trading thereof. 2] Bond markets, which provide financing through the issuance of bonds, and enable the subsequent trading thereof. B] Commodity markets, which facilitate the trading of commodities. C] Money markets, which provide short term debt financing and investment.

INTRODUCTION OF IPO IN THE CONTEXT OF INDIAN MARKET:

The Indian primary market has come a long way particularly in the last decade after deregulation of the Indian economy in 1991-92. Both the primary and secondary markets have had their fair share of reforms, structural cum policy changes time to time. The most commendable being the dismantling of the Controller of Capital Issues (CCI) and introduction of the free pricing mechanism. This changed the whole facet of Initial Public. Around 80 IPOs made its entry into stock market in this year, which was never in the history of Indian capital market. Maximum number of issues received enormous response from the investors. Coal India IPO which is raising around 15,000 crores is making its entry into stock market in this October, it is considered to be the largest IPO ever made in the Indian history. Many experts are viewing that its going to change the Indian economic scenario.
Industries raises finance from capital markets through various instruments like 1] Equity finance 2] Debt finance

IPOS comes under equity finance and debt finance. During the last decade, more than a third of the increase in net assets of large firms in Chile, South Korea, Malaysia, Mexico, Taiwan and Thailand has been secured through equity issuance. This pattern contrasts sharply with that of the industrial countries, in which equity financing during the same period has accounted for less than 5 percent of the growth in net assets.

CHANGES IN THE CAPITAL MARKET:

Four sets of changes in the Indian capital market can be identified which set the market of the twenty-first century different from what obtained earlier. These can be categorized as follows: 1

1] Introduction of new institutions 2] Introduction of new instruments 3] Changes in administrative control and regulatory framework 4] Some recent initiatives

INTRODUCTION OF NEW INSTITUTIONS:

The composition of the Indian capital market has undergone a total change. Till very recent times, Bombay Stock Exchange dominated the capital market in India. The daily turnover on the Bombay Stock Exchange (BSE) alone exceeded the total turnover of all other exchanges put together. The BSE with the monopolistic claw like control over the market was posing a severe constraint on the spread and diversification of the capital market culture. It was content with practicing non-transparent time and resource consuming trading practices that failed to evoke confidence among new investors, both in primary and secondary market. Its trading practices were becoming somewhat totally out of tune with the ongoing communication revolution in India and worldwide. In response to this, the most important are the OTCEI and NSE. What is more important is that the NSE has worked as a catalyst of change for other exchanges, which are introducing on-line trading systems. Along with NSE, mutual funds have also emerged in the country. Different types of mutual funds catering to the needs of different types of investors have been set up in the country. The increasing growth of the capital market has witnessed the mergence of foreign institutional investors (FIIs) as significant players. Their sale and purchase decisions are already having a significant impact on the market conditions. Along with these new players, a set of new supporting institutions have also emerged on the horizon such as the Discount and Finance House of India, Securities Trading Corporation of India, Stock Holding Corporation of India, settlement and depository systems, etc.

INTRODUCTION OF NEW INSTRUMENTS:

Along with new institutions, new instruments have emerged on the capital market. These encompass both the domestic instruments and foreign instruments. Many new instruments of finance have already been introduced in recent years. Still, the 2

current intensity of the Indian financial market reveals that there is a tremendous scope to deploy new financing instruments connected to equity, debentures, bonds, add-on products and derivatives. This may require appropriate changes in certain economic legislations and the will on the part of the Indian corporate enterprises to take risks and tune their decision-making to the investor psychology and market preferences.

CHANGES IN RULES & REGULATIONS:

Responding to the changes in the environment, the administrative framework has also undergone a total overhaul. The earlier chains have been totally removed. The Controller of Capital Issues has been done away with. The Indian capital market has been left free to find its own depth and strength. However, it is a paradox of a free market economy that whenever chains are removed effective watchdogs have to be employed. This latter function has now been entrusted to the Securities and Exchange Board of India.

3.2 ORGANIZATION PROFILE

Angel Broking's tryst with excellence in customer relations began in 1987. Today, Angel has emerged as one of the most respected Stock-Broking and Wealth Management Companies in India. With its unique retail-focused stock trading business model, Angel is committed to providing Real Value for Money to all its clients. The Angel Group is a member of the Bombay Stock Exchange (BSE), National Stock Exchange (NSE) and the two leading Commodity Exchanges in the country: NCDEX & MCX. Angel is also registered as a with CDSL.

MILE STONES OF ANGEL BROKING LTD:

December - 1997 Angel Broking Ltd incorporated as a wealth management, retail and corporate broking firm.

November - 1998 Angel Capital and Debt Market Ltd. incorporated as a member of NSE. March - 2002 Angel Broking develops web-enabled back office software to maximize its operational efficiency. November - 2002 Angel Broking successfully conducts its first Investor Seminar to increase investor awareness. April - 2003 Angel Broking publishes its first research report. April- 2004 Angel Broking expands its basket of services by establishing the Commodity Broking division. September - 2004 Angel Broking launches Online Trading Platform facilitating easy and hassle-free trading for its customers. October- 2005 Angel Broking wins the prestigious Major Volume Driver Award by BSE for 2004-2005. March-2006 Angel Broking on expansion drive crosses 1,00,000 mark in unique trading accounts. July- 2006 Angel Broking launches Portfolio Management Services (PMS). Septembe-2006 Angel Broking commences distribution of Mutual Funds and IPOs. October- 2006 Angel Broking bags the coveted Major Volume Driver Award by BSE for 2005-2006. December -2006 Angel Broking expands its network by creating 2500 business associates .

ANGEL PRESENCE:
Nation wide network of 21 regional hubs Haspresence in 124 cities Has morethan 6800 sub brokers & business associates Has more than 5.9 lakh clients

VISION:
1

To provide best value for money to investors through innovative products, trading/investments strategies, state of the art technology and personalized service.

MOTTO:
To have complete harmony between quality-in-process and continuous improvement to deliver exceptional service that will delight our Customers and Clients.

BUSINESS PHILOSOPHY:
Ethical practices & transparency in all our dealings Customers interest above our own Always deliver what we promise Effective cost management

VALUES:
Integrity Team Work Quality Mindset Entrepreneurship Service Orientation Passion & commitment

ANGEL GROUP COMPANIES:

COMPANY NAME Angel Broking Ltd Angel Capital &Debt Market Ltd Angel Commodities Broking Ltd Angel Securities Ltd MEMBERSHIP Member on the BSE &depository participant with CDSL Member on the NSE Cash and Future& option Member on the NCDEX & MCX Member on the BSE

ACHIEVEMENT:
2

Angel was awarded the coveted the Major Volume Driver trophy from BSE for the Year 2004-2005, 2005 -2006 & 2006 -2007.

ORGANIZATIONAL STRUCTURE:

KEY PERSONNEL:
NAME Dinesh Thakkar Sachinn R. Joshi DESIGNATION Chairman and Managing Director Chief Financial Officer and Executive 1

Director Pramathu Chowksey Hitungshu Debnath Santanu Syam Dinesh Thakkar Sachinn R. Joshi Regional Head of Indore Head of Distribution & Wealth Management Services Head of Retail Operations Board of director Board of director

PRODUCTS OF ANGEL BROKING LTD:

On line trading IPO advisory Commodities DP services Portfolio Management services Mutual funds Quality assurance

BENIFITS AT ANGEL:
Investment in companies that have a strong competitive advantage over their peers Well laid-out investment philosophy Pro-active management of funds Dedicated Relationship Manager Quarterly newsletter from fund management team

Committed parentage Minimum Investment:Rs.5Lacs and Multiples of Rs 1 thereof Mode- Either Cheque payment or Stock Transfer or combination thereof.

3.3 STUDY ORGANIZATION

Data collected by financial manager. In this organization to studied the organization structure and also how the company staff members are dealing with their customers. In this organization members had given data as per my requirements to complete the project. At the time of project duration know the trading of shares and learn the maintained by the customers for trading of time.

3.4 METHODS ADOPTED WITH DETAILS PROCEDURE

The study covers the calculation of variance and standard deviation in order to find out at what percentage of risk is involved in a particular company and how much does the company generates returns. These analysis facilitates the investor to take investment decision before investing in a particular company.

SOURCES OF DATA
The data needed for the project was collected from the following. Primary data Secondary data 1

PRIMARY DATA:
Primary data will be collected by interviewing the officials of ANGEL BROKING LIMITED in IPO and due diligence process of client companies. The daily experience, observation and knowledge gained out of full work time at ANGEL BROKING LIMITED was recorded separately. The theoretical knowledge gained out of the primary and secondary sources of data, and the practical knowledge gained out of working at ANGEL BROKING LIMITED was then be integrated to prepare an in-depth and comprehensive report , which would address the topic from both theoretical and practical point of view.

SECONDARY DATA:
Review of literature Information secured from web sites Magazines and journals

4.1 NUMBER OF IPOs AND FUNDS GENETARED

S.NO 1 2 3 4 5 6 7 8 9 10 YEAR 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011may No.of IPOs 7 6 21 23 79 77 85 49 56 72 FUNDS GENERATED Rs(crores) 1202 1039 3434 13,749 10,936 28,504 42,595 34,306 71,000 67,608.6

THROUGH IPOs IN INDIA SINCE 2001

Table: 4.1.1 Number of IPOs & Funds Generated through IPOs in India

Fig: 4.1.1 Number of IPOs in India

INTERPRETATION:
The above bar diagram reveals the number of IPOs in India since 2001.The X-axis represents the year and the data on Y-axis represents number of IPOs .The number of IPOs steadily increasing upto 2005-2006. But in 2006 there was a fall in IPOs and from 2007 there was a drastic increase in Indian IPOs.

GRAPHICAL REPRENSENTATION OF FUNDS GENERATED THROUGH IPOs IN INDIA

Fig: 4.1.2 Funds generated through IPOs in India

INTERPRETATION:
The above bar diagram shows the funds generated through public offerings in India since 2001.Funds generated from IPOs are steadily increasing from 2001 to 2007 ,during the period the share market operations was fine.During 2008-2009 there was a sudden fall in IPOs due to the economic crisis and international market trend has been forcing thread both primary and secondary market.But now there is a considerable increase in IPOs investment in India in 2010.

4. 2. TYPES OF INVESTORS & THEIR SUBSCRIPTION FOR EACH SELECTED IPO EXCEL INFOWAYS LIMITED
Incorporated in 2003, Excel Infoways Ltd is an ISO 27001:2005 certified Company. Excel Infoways Limited is a leading customer contact centre providing Voice 3

Based Services in the areas of Collections, Telemarketing and Customer Care. Excel Infoways offer a range of customer care services including outbound sales and Marketing, voice, email response, real-time chat, knowledge management, and eCRM architecture.

OBJECTS OF THE ISSUE:

1. To achieve the benefits of listing on the Stock Exchanges 2 .To raise capital to: setting up New Facilities Strategic Investments / Joint Ventures General Corporate Purpose Issue Related Expenses.

ISSUE DETAILS:
Issue Open: Jul 14, 2009 - Jul 17, 2009 Issue Type: 100% Book Built Issue IPO Issue Size: 5,667,000 Equity Shares of Rs. 10 Issue Size: Rs. 48.17 Crore Face Value: Rs. 10 Per Equity Share Issue Price: Rs. 80 - Rs. 85 Per Equity Share Market Lot: 80 Shares Minimum Order Quantity: 80 Shares Listing At: BSE, NSE

ISSUE SUBSCRIPTION DETAILS:

Table:4.2.1 issue subscription details of Excel Infoways

As on Date & Time Shares Offered / Reserved Day 1 - Jul 14, 2009 17:00 IST Day 2 - Jul 15, 2009 17:00 IST Day 3 - Jul 16, 2009 17:00 IST Day 4 - Jul 17, 2009 17:00 IST

Number of Times Issue is Subscribed (BSE + NSE) Non Retail Qualified Institution Individua Institution al l Total al Buyers Investors Investors (QIBs) (NIIs) (RIIs) 1,983,45 2,833,500 850,050 5,667,000 0 0.0000 0.0000 0.1729 0.4896 0.1098 0.3875 1.0512 5.3072 0.1208 0.1263 0.2121 2.6438 0.0600 0.1000 0.3200 1.9700

Fig:4.2.1 Investors subscription for Excel Infoways

INTERPRETATION:
Excel Infoways Ltd IPO closed for subscription and got a decent response from investors especially NII investors. Excel Infoways Ltd IPO subscribed 1.97 times on its closing day. Excel Infoways has received bids for 1, 11,42,480 shares as against issue size of 56,67,000 shares. Retail quota of the issue subscribed 2.6438 times and QIB's subscribed 0.4896 times.

RAJ OIL MILLS LIMITED

Incorporated in 2001, Raj Oil Mills Ltd is in the business of manufacturing and processing of coconut, groundnut, mustard, and soya bean oil. Raj Oil Mills is the oldest (founded in 1943) and the most successful oil production company in India. Company's products are sold fewer than three brands i.e. Cocoraj, Guinea and Raj. These brands are in existence for more than 5 decades.

OBJECTS OF THE ISSUE:

The objects of the Issue are to achieve the benefits of listing on the Stock Exchanges & to raise capital 1. For setting up of facilities at Manor, district Thane. 2

2. For setting up of Crushing unit of 200 TPD for Sesame and Mustard at Bagru, district Jaipur. 3. To meet margin money for Working Capital Requirements. 4. For Brand Promotion and Expansion of Marketing & Distribution Network. 5. For setting up of Research and Development facilities.

ISSUE DETAILS:
Issue Open: Jul 20, 2009 - Jul 23, 2009 Issue Type: 100% Book Built Issue IPO Issue Size: 9,500,000 Equity Shares of Rs. 10 Issue Size: Rs. 114.00 Crore Face Value: Rs. 10 Per Equity Share Issue Price: Rs. 100 - Rs. 120 Per Equity Share Market Lot: 50 Shares Minimum Order Quantity: 50 Shares Listing At: BSE, NSE

ISSUE SUBSCRIPTION DETAILS:

Table: 4.2.2 issue subscription details of Raj Oil Mills Number of Times Issue is Subscribed (BSE + NSE) Qualified Non Retail Institutiona Institutiona Individual As on Date & Time Total l Buyers l Investors Investors (QIBs) (NIIs) (RIIs) Shares Offered / Reserved 4,750,000 1,425,000 3,325,000 9,500,000 Day 1 - Jul 20, 2009 0.0000 0.0000 0.0080 0.0000 17:00 IST Day 2 - Jul 21, 2009 0.0000 0.0000 0.0245 0.0100 17:00 IST Day 3 - Jul 22, 2009 0.0000 1.4808 0.0606 0.2400 17:00 IST Day 4 - Jul 23, 2009 0.7543 3.9764 0.7668 1.2400 17:00 IST Fig:4.2.2 Investors subscription for Raj Oil Mills 1

INTERPRETATION:
Raj Oil Mills Ltd had opened for subscription with an initial public offering of 95,00,000 equity shares. It received bids for 1,17,99,000 shares as against its issue size of 95,00,000 shares and was subscribed 1.24 times . Retail quota of the issue subscribed 0.7668 times and QIB's subscribed 0.7543 times. Non Institutional supported the issue on the last day to get subscribed fully; their portion subscribed nearly 4 times.

NHPC LIMITED
Incorporated in 1975, NHPC Limited (Formerly known as National Hydroelectric Power Corporation Ltd.) is a Govt. of India's Enterprise. NHPC is a hydroelectric power generating company dedicated to the planning, development and implementation of an integrated and efficient network of hydroelectric projects in India. They execute all aspects of the development of hydroelectric projects, from concept to commissioning.

ISSUE DETAILS:
Issue Open: Aug 07, 2009 - Aug 12, 2009 Issue Type: 100% Book Built Issue IPO Issue Size: 1,677,374,015 Equity Shares of Rs. 10 Issue Size: Rs. 6,038.55 Crore Face Value: Rs. 10 Per Equity Share Issue Price: Rs. 30 - Rs. 36 Per Equity Share Market Lot: 175 Shares Minimum Order Quantity: 175 Shares Listing At: BSE, NSE

ISSUE SUBSCRIPTION DETAILS: Table:4.2.3 issue subscription details of NHPC Number of Times Issue is Subscribed (BSE + NSE) Non Qualified Retail Institution Employee Institution Individual al Reservatio Total al Buyers Investors Investors ns (QIBs) (RIIs) (NIIs) 981,263,7 163,543,9 490,631,9 41,934,35 1,677,374,0 99 6.0057 6.1474 9.4851 29.1608 66 0.0062 0.1521 2.4331 56.7 074 00 0.0952 0.4929 1.2507 3.8730 0 0.0002 0.0689 0.2229 0.5697 15 3.5400 3.7600 6.1600 23.7400

As on Date & Time

Shares Offered / Reserved Day 1 - Aug 07, 2009 17:00 IST Day 2 - Aug 10, 2009 19:00 IST Day 3 - Aug 11, 2009 17:00 IST Day 4 - Aug 12, 2009 17:00 IST

Fig:4.2.3 Investors subscription for NHPC INTERPRETATION: NHPC Ltd received an overwhelming response from investors, getting subscriptions of over 23.62 times the shares on offer. The issue received bids for a total of 3,961.68 crore shares against an issue size of 167.73 crore shares with the total number of bids received at the cut-off price standing at 160.74 crore shares .NII supported the issue on the last day to get subscribed fully; their portion subscribed 56.7074 times.

DEN NETWORKS LIMITED

Incorporated in 2007, Den Networks Limited is one of the largest national cable television companies in India engaged in the distribution of analog and digital cable television services. They launched their digital cable television services in February 2008 1

under the brand Digitally. Den Networks currently provide cable television services in the National Capital Region of Delhi and the states of Uttar Pradesh, Rajasthan, Maharashtra, Gujarat, Karnataka, Haryana, Madhya Pradesh and Kerala.

OBJECTS OF THE ISSUE:

1. To invest in the development of cable television infrastructure and services; 2. To invest in the development of cable broadband infrastructure and services; 3. To invest in acquisition of content and broadcasting rights; 4. To repay certain loans availed by the Company; 5. Fund expenditure for general corporate purposes. ISSUE DETAILS: Issue Open: Oct 28, 2009 - Oct 30, 2009 Issue Type: 100% Book Built Issue IPO Issue Size: 18,567,240 Equity Shares of Rs. 10 Issue Size: Rs. 364.46 Crore Face Value: Rs. 10 Per Equity Share Issue Price: Rs. 195 - Rs. 205 Per Equity Share Market Lot: 30 Shares Minimum Order Quantity: 30 Shares Listing At: BSE, NSE

ISSUE SUBSCRIPTION DETAILS: Table: 4.2.6 issue subscription details of Den Networks Number of Times Issue is Subscribed (BSE + NSE) Non Retail Qualified Institution Individu Employee Institution al al Reservatio Total al Buyers Investors Investors ns (QIBs) (NIIs) (RIIs) 5,925,00 17,604,98 9,454,980 1,975,000 250,000 0 0 1

As on Date & Time

Shares Offered / Reserved

Day 1 - Oct 28, 2009 17:00 IST Day 2 - Oct 29, 2009 17:00 IST Day 3 - Oct 30, 2009 17:00 IST

0.2484 0.3387 1.0004

0.0003 0.1558 4.1244

0.0345 0.0494 0.0963

0.0000 0.0126 0.6809

0.1500 0.2200 1.0400

Fig:4.2.6 Investors subscription for Den Networks INTERPRETATION: Den Networks L td had opened for subscription with an initial public offering of 17,604,980 equity shares. QIB's subscribed 1.0004 times Non Institutional supported the issue on the last day to get subscribed fully their portion subscribed 4 .1244 times and Retail quota of the issue subscribed 0.0963 times.

4. 3. CALCULATION OF RETURN
Table: 4.3.1 CALCULATION OF RETURN FOR EXCEL INFOWAYS LTD: P1 PO opening share price (p0) 77.35 47.15 38.35 Closing Share price(p1) 72.13 45.59 34.83 Return = ------------ * 100 PO -6.7485 -3.3086 -9.1786 -19.2358 -6.41193

Year 2009 2010 2011 may

P1-Po -5.22 -1.56 -3.52

Total Return Average Return

Fig:4.3.1Excel Infoways Ltd returns

INTERPRETATION:

In all the years it has negative returns and there was no purchases made by the investors because of negative returns.There is a fall down in the stock price from 2009 to 2010 and there by 2011.

Table: 4.3.2 CALCULATION OF RETURN FOR RAJ OIL MILLS LTD: P1 PO opening share price Year 2009 2010 2011 may Total Return Average Return -26.4368 -8.8123 (p0) 85.24 56.775 35.99 Closing Share price(p1) 73.90 53.925 33.07 P1-Po -11.34 -2.85 -2.92 Return = ------------ * 100 PO -13.3036 -5.0198 -8.1134

Fig:4.3.2 Raj Oil Mills ltd returns INTERPRETATION: In all the years it has negative returns and there was no purchases made by the investors because of negative returns.There is a fall down in the stock price from 2009 to 2010 and there by 2011.

Table: 4.3.3CALCULATION OF RETURN FOR NHPC LTD : P1 PO opening share price Year (p0) Closing Share price(p1) P1-Po 1 Return = ------------ * 100 PO

2009 2010 2011 may

34.83 31.225 25.54

33.39 30.61 24.78

-1.44 -0.6150 -0.7600 Total Return Average Return

-4.13444 -1.9696 -2.9757 -9.0797 -3.0266

Fig:4.3.3.NHPC Ltd returns

INTERPRETATION: In all the years it has negative returns and there was no purchases made by the investors because of negative returns.There is a fall down in the stock price from 2009 to 2010 and there by 2011. 4.3.6(a) COMPARISON OF AVERAGE RETURNS FOR 6 SELECTED COMPANIES: Company Name Excel Infoways Ltd Raj Oil Mills Ltd NHPC Ltd Average Returns -6.41193 -8.8123 -3.0266

Fig: 4.3.6(a) avg return of 6 companies

INTERPRETATION:

From the above graph the Globus Spirits Ltd got positive returns of 10.63 as compared with the other companies. Rest of the companies has negative returns due market price fluctuations 3

4.4 CALCULATION OF VARIANCE& STANDARD DEVIATION FORMULAS:1. Variance = (R- ) 2/N Where, R= Return, = Average Return. 2. Standard Deviation = variance Table: 4.4.1CALCULATION OF RISK FOR EXCEL INFOWAYS LTD :AVG Return Year 2009 2010 2011 may Return(R) -6.7485 -3.3086 -9.1786 ( ) -6.41193 -6.41193 -6.41193 Variance R- -0.3366 3.1033 -2.7667 5.7995 (R- ) 0.1133 9.6305 7.6546 2.4082 RISK 0.03366 3.1033 2.7667

Standard Deviation

Fig: 4.4.1 risk of Excel Info ways Ltd INTERPRETATION: In the year 2009 the company has low risk 7.65 than the following 2 years. It is increased to 9.63 in the year 2010 but now it is reduced to 7.65 as compared to previous year. Table: 4.4.2. CALCULATION OF RISK FOR RAJ OIL MILLS LTD :-

AVG Return Year Return(R) ( ) R- (R- ) RISK 1

2009 2010 2011 may

-13.3036 -5.0198 -8.1134

-8.8123 -8.8123 -8.8123 Variance

-4.4913 3.7925 0.6989

20.1718 14.3831 0.4885 11.6811 3.4178

4.4913 3.7925 0.6989

Standard Deviation

Fig:4.4.2 risk of Raj Oil Mills Ltd

INTERPRETATION: In the year 2009 the company has highest risk 20.17 as compared to the next 2 years. But the amount of risk is reduced to 0.4885 in the year 2011 due high market performance.

Table: 4.4.3 CALCULATION OF RISK FOR NHPC LTD:-

AVG Return Year 2009 2010 2011 may Return(R) -4.1344 -1.9696 -2.9757 ( ) -3.0266 -3.0266 -3.0266 Variance R- -1.1078 1.0570 0.0509 (R- ) 1.2272 1.1172 0.0026 0.7823 0.8845 RISK 1.1078 1.0570 0.0509

Standard Deviation

Fig: 4.4.3 risk of NHPC Ltd INTERPRETATION:

In the year 2009 the company has highest risk 1.22 as compared to the next 2 years. But the amount of risk is reduced to 1.11 in the year 2010 and in the year 2011 in has negligible risk due higher market performance.

Table: 4.4.4. CALCULATION OF RISK FOR GLOBUS SPIRITS LTD :-

AVG Return Year 2009 2010 2011 may Return(R) 32.8550 3.5669 -4.5214 ( ) 10.6335 10.6335 10.6335 Variance R- 22.2215 -7.0666 -15.1549 (R- ) 493.7951 49.9368 229.6710 257.8010 RISK 22.2215 7.0666 15.1549

Standard Deviation

16.0562

Fig:4.4.4 risk of Globus Spirits Ltd INTERPRETATION: In the year 2009 the company has high risk 493.79 than the following 2 years. It is decreased to 49.93 in the year 2010 but now it is increased to 229.67 as compared to previous year.

Table: 4.4.5. CALCULATION OF RISK FOR EURO MULTIVISON LTD :1

AVG Return Year 2009 2010 2011 may Return(R) -27.1217 -3.2632 -12.5724 ( ) -14.3191 -14.3191 -14.3191 Variance R- -12.8026 11.0559 1.7467 (R- ) 163.9066 122.2329 3.0510 96.3968 9.8182 RISK 12.8026 11.0559 1.7467

Standard Deviation Fig :4.4.5 risk of Euro Multivision Ltd

INTERPRETATION: In the year 2009 the company has highest risk 163.90 as compared to the next 2 years. But the amount of risk is reduced to 3.0510 in the year 2011 due high market performance.

Table: 4.4.6. CALCULATION OF RISK FOR DEN NETWORKS LTD:-

AVG Return Year 2009 2010 2011 may Return(R) -0.5033 -8.9365 -13.8309 ( ) -7.7569 -7.7569 -7.7569 Variance R- 7.2536 -1.1796 -6.0740 (R- ) 52.6147 1.3915 36.8935 30.2999

RISK 7.2536 1.1796 6.0740

Standard Deviation

5.5045

Fig:4.4.6 risk of Den Networks Ltd

INTERPRETATION: In the year 2009 the company has high risk 52.61 than the following 2 years. It is decreased to 1.3915 in the year 2010 but now it is raised to 36.89 as compared to previous year.

Table 4.4.6(a) COMPARISON OF AVERAGE RISKS FOR 5 SELECTED COMPANIES: Company Name Excel Infoways Ltd Raj Oil Mills Ltd NHPC Ltd Globus Spirits Ltd Euro Multivision Ltd Den Networks Average Risk 2.4082 3.4178 0.8845 16.0562 9.8182 5.5045

Fig:4.4.6(a) Avg Risk of 6 companies INTERPRETATION:

From the above graph Globus Spirits Ltd faced high risk than the other companies it has the risk about 16.0562, the second higher riskier company is Euro Multivision Ltd and in has the risk of 9.81.

4.4.6(b) COMPARISON OF RISK & RETURN FOR 6 SELECTED COMPANIES: COMPANY Excel Infoways Ltd Raj Oil Mills Ltd NHPC Ltd Globus Spirits Ltd Euro Multivision Ltd Den Networks AVERAGE RISKS 2.4082 3.4178 0.8845 16.0562 9.8182 5.5045 AVERAGE RETURNS -6.41193 -8.8123 -3.0266 10.6335 -14.3191 -7.7569

Fig:4.4.6(b) Avg risk& return of 6 companies INTERPRETATION: From the above graph the inference drawn is that Globus spirits has high risk and high return as compared to other companies. but the remaining companies have negative returns and higher amount of risk .Thus Globus Spirits company Proved the investment philosophy low risk low return & high risk high return.

4.5. PRE ISSUE & POST ISSUE FINANCIAL PERFORMANCE

Tale: 4.5.1 .PRE ISSUE & POST ISSUE FINANCIAL PERFORMANCE OF EXCEL INFOWAYS LTD :

Particulars

Pre issue

Post issue

2007
EPS ROE NPM P/E 30.04 102.19 77.71 0.00

2008
9.26 47.65 61.88 0.00

2009
9.51 32.78 79.02 0.00

2010
6.53 16.75 66.79 6.1

2011
6.72 12.66 69.74 -8.5

Fig :4.5.1 Excel infoways Ltd financial performance

INTERPRETATION:
Excel infoways, a bpo company follows less volume and high margin business model.in 2009, due to slow down in world economy there is fall in sales of the company.later,the companys sales are revived.but,there is no considerable sales and profit growth.it may be difficult for the company to sustain high-margins in a increasingly competitive market. Tale: 4.5.2. PRE ISSUE & POST ISSUE FINANCIAL PERFORMANCE OF RAJ OIL MILLS LTD : Particulars EPS ROE GPM P/E Pre issue 2007 2008 9.82 11.17 41.83 29.52 12.21 14.88 0.00 0.00 Post issue 2009 2010 8.66 9.97 17.92 14.99 13.40 13.75 0.00 7.5 2011 5.64 14.99 7.58 -5.54

Fig :4.5.2 Raj Oil Mills Ltd financial performance INTERPRETATION:

Raj oil mills, offers an eclectic mix of branded oils, ranging from pure coconut oil to a variety of cooking oils ensuring the satisfaction of its ever-expanding customer base. The companys revenue is expanding over the years. But due to hike in input costs and competition, its margins are shrinking. Pricing power of the company plays important role in pricing the stock.

Table: 4.5.3. PRE ISSUE & POST ISSUE FINANCIAL PERFORMANCE OF NHPC LTD : Particulars EPS ROE NPM P/E Pre issue 2007 2008 13.57 0.90 7.52 6.57 52.00 33.75 0.00 0.00 Post issue 2009 2010 0.96 1.70 6.40 9.50 33.35 42.73 0.00 18.9 2011 1.76 8.98 43.93 14.16

Fig :4.5.3 NHPC Ltdfinancial performance

INTERPRETATION: NHPC,a PSU gaint from the govts table is growing its sales, but failed to deliver to meet the guidance.executional delays,land acquisiton hurdles,local oppositions are impediments to the companys growth.it is enjoying healthy margin and ambitious plans. having

Table: 4.5.4. PRE ISSUE & POST ISSUE FINANCIAL PERFORMANCE OF GLOBUS SPIRITS LTD : Particulars 2007 Pre issue 2008 Post issue 2009 2010 2011 2

EPS ROE NPM P/E

13.57 40.90 52.00 0.00

0.90 34.95 33.75 0.00

0.96 24.26 33.35 0.00

1.70 26.15 42.73 9.4

1.76 17.95 43.93 10.46

Fig:4.5.4 Globus spirits Ltd financial performance INTERPRETATION:

In the above chart x- axis represents the percentages of ratios and the data on y- axis represents the years. There is a decrease in all ratios as compared to 2007. Thus the financial performance of the company is not well after public issue .with the increasing consumption of alcohol, its sales are raising. Its margins also stable. It is having strong portfolio with sales and marketing of Indian Made Foreign Liquor (IMFL) and Industrial Alcohol And Country Liquor.

Table: 4.5.5. PRE ISSUE & POST ISSUE FINANCIAL PERFORMANCE OF EURO MULTIVISION LTD: Particulars EPS ROE NPM P/E 2007 6.41 59.06 11.31 0.00 Pre issue 2008 6.50 43.48 10.72 0.00 2009 1.22 6.12 2.50 0.00 Post issue 2010 0.34 1.26 1.44 71.0 2011 -12.40 0.83 -32.13 -0.85

Fig :4.5.5 Euro Multivison Ltd financial performance INTERPRETATION:

In the above chart x- axis represents the percentages of ratios and the data on y- axis represents the years. Due to shrinking sales of its core business and challenges involved in diversifying, the balance sheet got a beating .execution of the proposed plans, govt policies and subsidies plays an important role in determining the future of the company.

Table: 4.5.6. PRE ISSUE & POST ISSUE FINANCIAL PERFORMANCE OF DEN NETWORKS LTD : Particulars EPS ROE NPM P/E 2007 Pre issue 2008 -12.17 0.00 -73.99 0.00 Post issue 2009 2010 -7.59 1.60 0.00 6.75 -5.07 6.22 0.00 122.8 2011 0.50 2.86 1.84 162.41

Fig :4.5.6 Den networks Ltd financial performance INTERPRETATION: In the above chart x- axis represents the percentages of ratios and the data on y- axis represents the years. In the year 2008 the company incurred losses. Their sales are growing, But is having very less profit ratio,which seriously affect the prospects of the company. Margins should be carefully watched to take a call on this company.

4. 6.
S.No

POST IPO PERFORMANCE COMPARISON

Table: 4.6.1 post IPO performance of companies Company Name Closing price Issue Price Percentages 2

1 2 3 4 5 6

Excel Infoways Ltd Raj Oil Mills Ltd NHPC Ltd Globus Spirits Ltd Euro Multivision Ltd Den Networks Ltd

23.20 31.35 24.95 141.85 10.56 81.4

85 120 36 100 75 195

Of Returns -72.71 -73.88 -30.69 41.85 -85.92 -58.26

Fig :4.6.1 percentages of returns INTERPRETATION: From the above graph the inference drawn is Globus Spirits has positive returns , and the rest of the companies has negative returns. Thus Globus Spirits company generates more returns to the risk takers because it has increasing revenue and better financial position as compared to other companies.

5. FINDINGS
The number of IPOs in India has been gradually increasing since 2001 and the funds generated by IPOs have also been increasing since 2001. Non Institutional Investors (NII) subscription is more for all companies. Globus spirits has more risk & more returns than other companies. The financial performance of Excel Info ways is stable, and it has higher market margin which may not be sustainable in the future. The revenue of the Raj Oil Mills is growing, the market is considering its low margin & falling profitability. So that the stock performance is low even though it is from promising sector. A executional delay debt burden playing damper for the NHPC Ltd so the stock has fallen a lot.

Increasing revenue, expanding reach and unique positioning against competition making the stock to rally. Competition & core business diversification which may take many years of gestation are making the life difficult for the stock. Only Globus Spirits ltd has positive stock performance about 41.85 % after public issue. Rest of the companies Excel Info ways Ltd, Raj Oil Mills ltd, NHPC ltd, Euro Multivision Ltd and Den Net works Ltd is exhibiting negative stock performance.

CONCLUSION

As per the study made on the topic, ASSESSMENT OF INVESTOR RISK IN IPO, it is concluded stating that a company that is need of capital can come to IPO prior to which they have to make clear analysis about the past records, future growth aspects, proper price structure, proper issue structure and several other aspects etc. They must be capable of handling all the information provided in the prospectus. The following points should be kept in mind by a company coming to IPO. Every company planning to come for IPO has to comply with all the above mentioned procedure. As the investor protection is important, the company has to ensure investors by offering good prospects in the prospectus. Before coming to an IPO every company has to have a good track record of financial performance. 1

SEBI is the regulator for all IPOs it has to ensure its due diligence in issue of shares. The utilization of the funds from IPO is significant and as per the objective mentioned in prospectus. Listing is important for the company on the stock exchange, so it has to be done with proper pricing.

6. SUGGESTIONS

Company should take into account the world market scenario before making any IPO. Trust among the investors is essential for any company to survive. The company should plan its offer to fulfill all the interests of the major investors. An effective comparison of operations and pricing should be made with its competitors in all aspects before going for an IPO. Every company offering stocks through IPO must be aware of its future growth constraints and then decide upon coming to public to raise capital through IPO. Management of the company coming to IPO should have the ability to tackle the negative aspects towards their issue. After the stock is listed, management should be able to perform well from the day of listing in its operations to attract long-term and medium term customers. The investor must select the right advisory body that has sound knowledge regarding companies stock performance.

Investor should consider the fundamentals of the company before investing in a particular company.

.7. RECOMMENDATIONS FOR FURTHER STUDIES The following are recommended for further studies. They are It is better to take 5 years monthly historical previous prices in order to calculate accurate risk and return. It is recommended to take at least 6 years financial results of the companies to compare pre issue and post issue financial performance. It is recommended to compare each company performance with similar industry performance to take better investment decision based on industry performance. To give better idea about investment decision to the investor it is recommended to calculate price volatility of the stock for future returns.

APPENDIX 1. EXCEL INFOWAYS LTD HISTORICAL PRICES Date 31/08/09 30/09/09 30/10/09 30/11/09 31/12/09 29/01/10 26/02/10 31/03/10 30/04/10 31/05/10 30/06/10 30/07/10 31/08/10 30/09/10 29/10/10 30/11/10 31/12/10 31/01/11 28/02/11 31/03/11 29/04/11 31/05/11 Open price 93.05 92.95 79.10 62.60 59.05 59.90 50.00 43.95 40.30 58.90 41.10 44.20 46.55 44.50 45.05 49.50 41.80 46.00 39.85 30.60 40.30 35.00 Close price 90.75 79.70 70.95 59.85 59.40 49.95 42.80 39.10 58.75 41.60 43.65 46.50 44.45 44.65 48.65 41.55 45.45 40.30 30.80 40.25 35.30 27.50

2 RAJ OIL MILLS LTD HISTORICAL PRICES Date 31/08/09 30/09/09 30/10/09 30/11/09 31/12/09 29/01/10 26/02/10 31/03/10 30/04/10 31/05/10 30/06/10 30/07/10 31/08/10 30/09/10 29/10/10 30/11/10 Date 31/12/10 31/01/11 28/02/11 31/03/11 29/04/11 Open price 125.05 91.40 81.50 63.70 64.55 73.00 68.50 64.90 60.20 62.60 52.00 48.60 47.20 47.10 50.50 58.90 Open price 47.80 44.95 38.45 31.10 31.65 Close price 88.80 80.70 62.35 64.90 72.75 66.90 62.45 59.70 62.95 51.55 49.00 47.15 47.10 49.75 58.45 47.35 Close price 44.75 37.10 31.05 31.30 33.65

3. NHPC LTD HISTORICAL PRICES Date 01/09/09 30/09/09 30/10/09 30/11/09 31/12/09 Open price 39.00 39.00 34.50 30.20 31.45 Close price 36.70 34.55 30.50 31.15 34.05 3

29/01/10 26/02/10 31/03/10 30/04/10 31/05/10 30/06/10 30/07/10 31/08/10 30/09/10 29/10/10 30/11/10 31/12/10 31/01/11 28/02/11 31/03/11 29/04/11 31/05/11

34.30 33.50 32.20 30.65 30.15 29.10 31.20 32.00 30.50 32.00 31.35 27.75 28.25 24.70 23.40 25.40 25.95

33.15 31.95 30.50 30.35 29.00 31.40 31.80 30.40 31.75 31.20 27.65 28.15 24.60 23.20 25.35 25.85 24.90

BOOKS:
Security Analysis Financial Management Financial Management

REFERENCES
: : : : Francis. Graham and Dodd. I.M. Pandey Khan & Jain

Investment, Analysis and management

WEBSITES:
www.bseindia.in www.moneycontrol.com 2

www.investopedia.com www.angelbrokinglimited.com www.economicstimes.com

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