IPO (Initial Public Offer)

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

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

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

FINANCIAL MARKET
Financial markets are helpful to provide liquidity in the system and for smooth functioning of the system. These markets are the centers that provide facilities for buying and selling of financial claims and services. The financial markets match the demands of investment with the supply of capital from various sources. According to functional basis financial markets are classified into two types. They are: Money markets (short-term) Capital markets (long-term) According to institutional basis again classified in to two types. They are Organized financial market Non-organized financial market. The organized market comprises of official market represented by recognized institutions, bank and government (SEBI) registered/controlled activities and intermediaries. The unorganized market is composed of indigenous bankers, moneylenders, individual professional and nonprofessionals.

MONEY MARKET:
Money market is a place where we can raise short-term capital. Again the money market is classified in to Inter bank call money market Bill market and Bank loan market Etc. E.g.; treasury bills, commercial papers, CD's etc.

CAPITAL MARKET:
Capital market is a place where we can raise long-term capital. Again the capital market is classified in to two types and they are Primary market and Secondary market. E.g.: Shares, Debentures, and Loans etc.

PRIMARY MARKET:
Primary market is generally referred to the market of new issues or market for mobilization of resources by the companies and government undertakings, for new projects as also for expansion, modernization, addition, diversification and up gradation. Primary market is also referred to as New Issue Market. Primary market operations include new issues of shares by new and existing companies, further and right issues to existing shareholders, public offers, and issue of debt instruments such as debentures, bonds, etc. The primary market is regulated by the Securities and Exchange Board of India (SEBI a government regulated authority).

Function:
The main services of the primary market are origination, underwriting, and distribution. Origination deals with the origin of the new issue. Underwriting contract make the shares predictable and remove the element of uncertainty in the subscription. Distribution refers to the sale of securities to the investors. The following are the market intermediaries associated with the market: 1.Merchant banker/book building lead manager

2.Registrar and transfer agent 3.Underwriter/broker to the issue 4.Adviser to the issue 5.Banker to the issue 6.Depository 7.Depository participant.

Investors protection in the primary market:

To ensure healthy growth of primary market, the investing public should be protected. The term investor protection has a wider meaning in the primary market. The principal ingredients of investors protection are: Provision of all the relevant information Provision of accurate information and Transparent allotment procedures without any bias.

SECONDARY MARKET
The primary market deals with the new issues of securities. Outstanding securities are traded in the secondary market, which is commonly known as stock market or stock exchange. The secondary market is a market where scrips are traded. It is a market place which provides liquidity to the scrips issued in the primary market. Thus, the growth of secondary market depends on the primary market. More the number of companies entering the primary market, the greater are the volume of trade at the secondary market. Trading activities in the secondary market are done through the recognized stock exchanges which are 23 in number including Over The Counter Exchange of India (OTCE), National Stock Exchange of India and Interconnected Stock Exchange of India.

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

STOCK MARKETS IN INDIA:

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

Definition of a stock exchange:

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

Functions of Stock Exchanges:

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

Regulatory Frame Work Of Stock Exchange

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

Members of the stock exchange:

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

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

STOCK EXCHANGE BOARD OF INDIA (SEBI)

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

OBJECTIVES AND FUNCTIONS OF SEBI

To protect the interest of investors in securities. Regulating the business in stock exchanges and any other securities market. Registering and regulating the working of intermediaries associated with securities market

as well as working of mutual funds.

Promoting and regulating self-regulatory organizations. Prohibiting insider trading in securities. Regulating substantial acquisition of shares and take over of companies. Performing such functions and exercising such powers under the provisions of capital

issues (control) act, 1947and the securities to it by the central government.

SEBI GUIDELINES TO SECONDARY MARKETS:

Board of Directors of Stock Exchange has to be reconstituted so as to include non-members,

public representatives and government representatives to the extent of 50% of total number of members.

Capital adequacy norms have been laid down for the members of various stock exchanges

depending upon their turnover of trade and other factors.

All recognized stock exchanges will have to inform about transactions within 24 hrs.

COMPANY PROFILE:

ABOUT THE ORGANISATION

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

Headquartered in Chennai, ITI FSL has a growing network of offices across several states to ensure easy accessibility to our clients wherever they are. ITIFSL has over 116 Branch Offices spread across the country to offer better reach and service to the investor. The company currently marks its presence in the following regions:
Andhra Pradesh Delhi Karnataka Maharashtra Madhya Pradesh Tamil Nadu West Bengal

Mission:
ITI FSL's mission is to deliver value with commitment. Emerging as one of the front-line Brokerage Houses and a dominant force in the Distribution arena, we are continuously engaged in the assessment of market conditions to balance risk and reward so as to optimize returns to our investors.

Vision:
"To be the most Preferred Financial Advisor, Creator, Wealth Manager and to deliver the Highest Standards of Service to customers and be Prominent in the horde of Finance Companies offering similar services".

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

OFFERINGS

ADVANTAGES TO INVESTERS

Why you need a Financial Planner? The financial planner is someone who can help you invest across investment avenues based on your risk profile and investment objectives. Post-investment, he monitors your investments and ensures that you are on course to achieve your investment objectives. If necessary, he suggests changes to your financial plan so that you are able to achieve your investment objectives as planned. Given the critical inputs provided by the financial planner in helping you achieve your financial goals, it is important that you select the right financial planner. Here are the reasons why ITI is the right planner for you

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

stocks, mutual funds, bonds to fixed deposits. In other words, we offer a "one-stop" solution for all your investment needs. Accessibility One of the common complaints from investors is that their financial planner is unavailable/inaccessible and therefore unable to provide adequate/prompt service. This is particularly common in a one-man setup where the financial planner's services begin and end with him, with little or no backup. If the financial planner is preoccupied with some important clients or if he re-locates, it leaves you in a soup because your financial plan is in limbo. It is best to go with a financial planning initiative that is run by teams (as opposed to one-man setups) to ensure continuity of your financial plan. ITI has a team of professionals who are ever ready to serve you at any point of time. We are spread across the country so that you can have access to us always.

PRODUCTS AND SERVICES

We are a one-stop financial services shop, most respected for quality of its advice, personalized service and cutting-edge technology.

Equities
ITIFSL provided the prospect of researched investing to its clients, which was hitherto restricted only to the institutions. Research for the retail investor did not exist prior to ITIFSL. ITI leveraged technology to bring the convenience of trading to the investors location of preference (residence or office) through computerized access. ITIFSL made it possible for clients to view transaction costs and ledger updates in real time.

PMS
Our Portfolio Management Service is a product wherein an equity investment portfolio is created to suit the investment objectives of a client. We at ITI FSL invest your resources into stocks from different sectors, depending on your risk-return profile. This service is particularly advisable for investors who cannot afford to give time or don't have that expertise for day-to-day management of their equity portfolio.

Research

Sound investment decisions depend upon reliable fundamental data and stock selection techniques. ITIFSL Equity Research is proud of its reputation for, and we want you to find the facts that you need. Equity investment professionals routinely use our research and models as integral tools in their work. They choose Ford Equity Research when they can clear your doubts.

Commodities
ITIFSLs extension into commodities trading reconciles its strategic intent to emerge as a one-stop solutions financial intermediary. Its experience in securities broking has empowered it with requisite skills and technologies. The Companys commodities business provides a contracyclical alternative to equities broking. The company was among the first to offer the facility of commodities trading in Indias young commodities market (the MCX commenced operations only in 2003). Average monthly turnover on the commodity exchanges increased from Rs 0.34 bn to Rs 20.02 bn. The commodities market has several products with different and non-correlated cycles. On the whole, the business is fairly insulated against cyclical gyrations in the business.

Invest Online
ITIFSL has made investing in Mutual funds and primary market so effortless. All you have to do is register with us and thats all. No paperwork no queues and No registration charges.

INVEST IN Mutual Fund

ITIFSL offers you a host of mutual fund choices under one roof, backed by in-depth research and advice from research house and tools configured as investor friendly.

APPLY IN IPOs
You could also invest in Initial Public Offers (IPOs) online without going through the hassles of filling ANY application form/ paperwork

SMS

Stay connected to the market:

The trader of today, you are constantly on the move. But how do you stay connected to the market while on the move? Simple, subscribe to ITIFSL Stock Messaging Service and get Market on your Mobile!

Insurance
An entry into this segment helped complete the clients product basket; concurrently, it graduated the Company into a one-stop retail financial solutions provider. To ensure maximum reach to customers across India, we have employed a multi pronged approach and reach out to customers via our Network, Direct and Affiliate channels. Following the opening of the sector in 1999-2000, a number of private sector insurance service providers commenced operations aggressively and helped grow the market. The companys entry into the insurance sector derisked the company from a predominant dependence on broking and equity-linked revenues. The annuity based income generated from insurance intermediation result in solid core revenues across the tenure of the policy.

Wealth Management Service

Imagine a financial firm with the heart and soul of a two-person organization. A worldleading wealth management company that sits down with you to understand your needs and goals. We offer you a dedicated group for giving you the most personal attention at every level.

Roles and Responcibilities in Organisation:

We will give updates to customers in

 Economic Outlook and Updates Sector & Company Reports Technical Recommendations Daily Market Report Daily Technical Outlook Reports on New Fund Offerings Weekly analysis of mutual funds Fund Focus Weekly debt report: Debt Dose Offer daily technical calls through SMS to our clients

KEY LEARNINGS IN ORGANISATION:

EQUITY MUTUAL FUNDS TAX SAVENGS SCHEMES IN MUTUAL FUNDS ONLINE AND OFFLINE TRADING IPO (INITIAL PUBLIC OFFER) DERIVATIVES FOREX MARKET COMMODITIES RISK-RETURN PROFILE IN FUTURES AND OPTIONS-S&P CNX NIFTY

RESEARCH COMPETENCY

Market Outlooks and Strategy Analysis Market research at ITI financial services is structured to meet a wide variety of customer needs.

Services in this area range from the intra-day analysis of the most recent fundamental and technical developments affecting pricing to longer-term strategic research of supply, demand, and inventory trends.

Along with its price forecasting capability, the Team undertakes analytical research on hedging and trading strategies.

The Team also publishes monographs on topics of broad interest to its customers, such as the impact of changing accounting standards, developments in risk management, and current hedge activities and strategic thought in the various sectors of the market.

REVIEW OF LITERATURE

OVERVIEW OF INDIAN FINANCIAL MARKETS

Introduction

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

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

Before 1995, markets in India used open outcry, a trading process in which traders shouted and hand signaled from within a pit. One major policy initiated by SEBI from 1993 involved the shift of all exchanges to screen-based trading, motivated primarily by the need for greater transparency. The first exchange to be based on an open electronic limit order book was the National Stock Exchange (NSE), which started trading debt instruments in June 1994 and equity in November 1994. In March 1995, BSE shifted from open outcry to a limit order book market. Currently, 17 of Indias stock exchanges have adopted open electronic limit order. Before 1994, Indias stock markets were dominated by BSE in other parts of the country.

RECENT DEVELOPMENTS AND POLICY ISSUES. Financial industry did not have equal access to markets and was unable to participate in forming prices, compared with market participants in Mumbai (Bombay). As a result, the prices in markets outside Mumbai were often different from prices in Mumbai. These pricing errors limited order flow to these markets. Explicit nationwide connectivity and implicit movement toward one national market has changed this situation. NSE has established satellite communications which give all trading members of NSE equal access to the market. Similarly, BSE and the Delhi Stock Exchange are both expanding the number of trading terminals located all over the country. The arbitrages are eliminating pricing discrepancies between markets. Despite these big improvements in microstructure, the Indian capital market has been in decline during the last three years. The amount of capital issued has dropped from the level of its peak year, 1994/95, and so have equity prices. In 1994/95, Rs276 billion was raised in the primary equity market. This figure fell to Rs208 billion in 1995/96 and to Rs142 billion in 1996/97. The BSE-30 index or Sensex, the sensitive index of equity prices,

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

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

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

PRIMARY MARKET

Since 1991/92, the primary market has grown fast as a result of the removal of investment restrictions in the overall economy and a repeal of the restrictions imposed by the Capital Issues Control Act. In 1991/92, Rs62.15 billion was raised in the primary market. This figure rose to Rs276.21 billion in 1994/95. Since 1995/1996, however, smaller amounts have been raised due to the overall downtrend in the market and tighter entry barriers introduced by SEBI for investor protection .SEBI has taken several measures to improve the integrity of the secondary market. Legislative and regulatory changes have facilitated the corporatization of stockbrokers. Capital adequacy norms have been prescribed and are being enforced. A mark-to-market margin and intraday trading limit have also been imposed. Further, the stock exchanges have put in place circuit breakers, which are applied in times of excessive volatility. The disclosure of short sales and long purchases is now required at the end of the day to reduce price volatility and further enhance the integrity of the secondary market.

MARK-TO-MARKET MARGIN AND INTRADAY LIMIT

Under the current clearing and settlement system, if an Indian investor buys and subsequently sells the same number of shares of stock during a settlement period, or sells and subsequently buys, it is not necessary to take or deliver the shares. The difference between the selling and buying prices can be paid or received. In other

words, the squaring-off of the trading position during the same settlement period results in non delivery of the shares that the investor traded. thus possible at a relatively low cost. FIIs and domestic institutional investors are, however, not permitted to trade without delivery, since nondelivery transactions are limited only to individual investors. One of SEBIs primary concerns is the risk of settlement chaos that may be caused by an increasing number of nondelivery transactions as the stock market becomes excessively speculative. Accordingly, SEBI has introduced a daily mark-to-market margin and intraday trading limit. The daily mark-to-market margin is a margin on a brokers daily position. The intraday trading limit is the limit to a brokers intraday trading volume. Every broker is subject to these requirements. Each stock exchange may take any other measures to ensure the safety of the market. BSE and NSE impose on members a more stringent daily margin, including one based on concentration of business. A daily mark-to-market margin is 100 percent of the notional loss of the stockbroker for every stock, calculated as the difference between buying or selling price and the closing price of that stock at the end of that day. However, there is a threshold limit of 25 percent of the base minimum capital plus additional capital kept with the stock exchange or Rs1 million, whichever is lower. Until the notional loss exceeds the threshold limit, the margin is not payable. This margin is payable by a stockbroker to the stock exchange in cash or as a bank guarantee from a scheduled commercial bank, on a net basis. It will be released on the pay-in day for the settlement period. The margin money is held by the exchange for 612 days. This cost the broker about 0.4-1.2 percent of the notional loss, assuming that the brokers funding cost is about 24-36 percent (Endo 1998).

Thus, speculative trading without the delivery of shares is no longer cost-free. Each brokers trading volume during a day is not allowed to exceed the intraday trading limit. This limit is 33.3 times the base minimum capital deposited with the exchange on a gross basis, i.e., purchase plus sale. In the event of brokers wishing to exceed this limit, they have to deposit additional capital with the exchange and this cannot be withdrawn for six months.

MUTUAL FUNDS Indian investors have been able to invest through mutual funds since 1964, when UTI was established. Indian mutual funds have been organized through the Indian Trust Acts, under which they have enjoyed certain tax benefits. Between 1987 and 1992, public sector banks and insurance companies set up mutual funds. Since 1993, private sector mutual funds have been allowed, which brought competition to the mutual fund industry. This has resulted in the introduction of new products and improvement of services. The notification of the SEBI (Mutual Fund) Regulations of 1993 brought about a restructuring of the mutual fund industry. An arms length relationship is required between the fund sponsor, trustees, custodian, and asset Management Company. This is in contrast to the previous practice where all three functions, namely trusteeship, custodianship, and asset management, were often performed by one body, usually the fund sponsor or its subsidiary. The regulations prescribed disclosure and advertisement norms for mutual funds, and, for the first time, permitted the entry of private sector mutual funds. FIIs registered with SEBI may invest in domestic mutual funds, whether listed or unlisted. The 1993 Regulations have been revised on the basis of the recommendations of the Mutual Funds 2000 Report prepared

by SEBI. The revised regulations strongly emphasize the governance of mutual funds and increase the responsibility of the trustees in overseeing the functions of the asset management company. Mutual funds are now required to obtain the consent of investors for any change in the fundamental attributes of a scheme, on the basis of which unit holders have invested. The revised regulations require disclosures in terms of portfolio composition, transactions by schemes of mutual funds with sponsors or affiliates of sponsors, with the asset Management company and trustees, and also with respect to personal transactions of key personnel of asset management companies and of trustees.

FOREIGN INSTITUTIONAL INVESTORS FIIs have been allowed to invest in the Indian securities market since September 1992 when the Guidelines for Foreign Institutional Investment were issued by the Government. The SEBI (Foreign Institutional Investors) Regulations were enforced in November 1995, largely based on these Guidelines. The regulations require FIIs to register with SEBI and to obtain approval from the Reserve Bank of India (RBI) under the Foreign Exchange Regulation Act to buy and sell securities, open foreign currency and rupee bank accounts, and to remit and repatriate funds. Once SEBI registration has been obtained, an FII does not require any further permission to buy or sell securities or to transfer funds in and out of the country, subject to payment of applicable tax. Foreign investors, whether registered as FIIs or not, may also invest in Indian securities outside the country.

Objectives of the Study:

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

Methodology:
The data collected for IPOS issued in the years 2009 & 2010 taken as a Project Instrument. Data has been Collected for companies which opted for IPOS for public in the year 2009 & 10 along with Book Running Lead Managers, Opening and Closing dates of IPOS, No of Days Open for IPO.(Difference between opening and closing dates of IPOS issued), issue price, Listing Price etc. and eliminated the companies which are issued Further Public Offers (FPOs) and Public Offers (Pos). As Per the SEBI norms, Retail Individual investors can bid up to Rs. 1 Lakh. If the investment exceeds the specified limit then the bid application will be treated as Institutional bidder, where the probability of getting allotment will be lower when compare to retail individual investor.

So, in this project it is considered for Maximum bid that a retail investor can bid for i.e. Rs. One lakh or near the bid quantity.

Therefore the Investment amount applied for IPOS is considered as bidding amount. (No. of allowed lots* cut-off price)

Even though the retail investor applies for IPO at the maximum allowed cap, the investor may get or may not get the allotment for the applied amount.

The allotted shares will be credited in the respective investors Demat account and the remaining amount will be send back to the investor called Refund order.

So here it is considered that the investment is the number of shares allotted multiplied by issue price.

The Shares Allotment Data of Retail individual investors have been collected from the respective Registrars

According to SEBI, the company has to list its shares in the pre defined stock exchanges on or before 21 days from the issue closing day.

Here the Listing price is the closing price of the stock on the day of listing, where the probability of liquidity is possible.

The difference between the issue price and listing price is the absolute return in a particular public issue. For the comparative study of IPOs portfolio returns with the bench mark index of NIFTY the average rate of return is calculated.

S&P CNX Nifty as Project Instrument:

S&P CNX NIFTY AS RETURN COMPARATIVE INSTRUMENT

1.

Among all the available stocks S&P CNX NIFTY index highly liquid and represent the growth of Economy.

2. 3. 4.

One cannot manipulate the index value unlike the underlying stock price. It is the bench mark portfolio to compare with selective portfolio. It is a market capitalization index which represents the aggregation of 50 stock prices.

Data Collection:
The data collected related to IPO for the period Jan 2009 - June 2010 from the following websites, Magazines, and Newspapers etc.

Websites: 1. 2. 3. 4. 5. www.Nseindia.com. www.moneycontrol.com www.glossary.reuters.com. www.capitalmarkets.com www.investopedia.com

6. www. Chittorgarh.com

Assumptions:

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

Data Interpretation:

IPOS ISSUED 2009 & 2010(till June):

Public Offer (IPO), is the first sale of shares by the privately owned company to public. The companies going public raises funds through IPO's for working capital, debt repayment, acquisitions, and a host of other uses. Investor can apply for IPO Stocks by filling an IPO Application Form. These forms are usually available with stock brokers for free. Investor can also apply for IPO Stocks online through Online Stock Brokers like ICICI bank, Share Khan, and Reliance Money. Chittorgarh.com, India's No. 1 IPO investment portal provide recent IPO information from primary stock market. IPO Tools available on this website includes IPO Allotment Status, IPO Bidding Information, IPO Ratings, IPO Grading, IPO Reviews, Grey Market Premiums of IPO's, IPO News and IPO Performance Tracker. the

ISSUER COMPANY GEMINI ENGI-FAB LIMITED IPO EDSERV SOFTSYSTEMS LIMITED IPO RISHABHDEY TECHNOCABLE LIMITED IPO MAHINDRA HOLIDAYS& RESORTS INDIA LIMITED IPO EXCEL INFOWAYS LIMITED IPO RAJ OIL MILLS LIMITED IPO ADANI POWER LIMITED IPO NHPC LIMITED IPO JINDAL COTEX LIMITED IPO GLOBUS SPIRITS LIMITED IPO OIL INDIA LIMITED IPO PIPAVAV SHIPYARD LIMITED IPO EURO MULTIVISION LIMITED IPO

ISSUE OPEN Feb 03, 2009 Feb 05,2009 Jun 04, 2009 Jun 23, 2009 Jul 14, 2009 Jul 20, 2009 Jul 28, 2009 Aug 07, 2009 Aug 27, 2009 Aug 31, 2009 Sep 07, 2009 Sep 16,2009 Sep 22, 2009

ISSUE CLOSE Feb 06, 2009 Feb 09, 2009 Jun 09, 2009 Jun 26, 2009 Jul 17, 2009 Jul 23, 2009 Jul 31, 2009 Aug 12, 2009 Sep 01, 2009 Sep 02, 2009 Sep 10, 2009 Sep 18,2009 Sep 24,2009

OFFER PRICE 75/- to 80/55/- to 60/29/- to 33/275/- to 325/80/- to 85/100/- to 120/90/- to 100/30/- to 36/70/- to 75/90/- to 100/950/- to 1050/55/- to 60/70/- to 75/-

THINKSOFT GLOBAL SERVICES LIMITED IPO INDIABULLS POWER LIMITED IPO DEN NETWORKS LIMITED IPO ASTEC LIFE SCIENCES LIMITED IPO COX & KINGS(INDIA) LIMITED IPO MBL INFRASTRUCTURES LIMITED IPO JSW ENERGY LIMITED IPO GODREJ PROPERTIES LIMITED IPO D B CORP LIMITED IPO INFINITE COMPUTER SOLUTIONS INDIA LIMITED IPO JUBILANT FOODWORKS LIMITED IPO AQUA LOGISTICS LIMITED IPO THANGAMAYIL JEWELER LIMITED IPO SYNCOM HEALTHCARE LIMITED IPO VASCON ENGINEERS LIMITED IPO D B REALTY LIMITED IPO EMMBI POLYARNS LIMITED IPO ARSS INFRASTRUCTURE PROJECTS LIMITED IPO HATCHWAY CABLE & DATACOM LIMITED IPO TEXMO PIPES & PRODUCTS LIMITED IPO MAN INFRACONSTRUCTIONS LIMITED IPO UNITED BANK OF INDIA IPO DQ ENTERTAINMENT LIMITED IPO PRADIP OVERSEAS LIMITED IPO IL&FS TRANSPORTATION NETWORKS LIMITED IPO PERSIST SYSTEMS LIMITED IPO SHREE GANESH

Sep 22, 2009 Oct 12, 2009 Oct 28, 2009 Oct 29, 2009 Nov 18, 2009 Nov 27, 2009 Dec 07, 2009 Dec 09,2009 Dec 11, 2009 Jan 11, 2010 Jan 18, 2010 Jan 25,2010 Jan 27, 2010 Jan 27, 2010 Jan 27, 2010 Jan 29, 2010 Feb 01,2010 Feb 08,2010 Feb 09,2010 Feb 16, 2010 Feb 18,2101 Feb 23,2010 Mar 09, 2010 Mar 11, 2010 Mar 11, 2010 Mar 17, 2010 Mar 19, 2010

Oct 01, 2009 Oct 15, 2009 Oct 30, 2009 Nov 04, 2009 Nov 20, 2009 Dec 01, 2009 Dec 09, 2009 Dec 11, 2009 Dec 15, 2009 Jan 13, 2010 Jan 20,2010 Feb 02,2010 Jan 29,2010 Jan 29,2010 Jan 29, 2010 Feb 02,2010 Feb 03,2010 Feb 11,2010 Feb 11, 2010 Feb 19, 2010 Feb 22, 2010 Feb 25, 2010 Mar 10, 2010 Mar 15, 2010 Mar 15, 2010 Mar 19, 2010 Mae 23, 2010

115/- to 125/40/- to 45/195/- to 205/77/- to 82/316/- to 330/165/- to 180/100/- to 115/490/- to 530/185/- to 212/155/- to 165/135/- to 145/200/- to 225/70/- to 75/65/- to 75/165/- to 185/468/- to 486/40/- to 45/410/- to 450/210/- to 265/85/- to 90/243/- to 252/60/- to 66/75/- to 80/100/- to 110/242/- to 258/290/- to 310/260/- to 270/-

JEWELRYHOUSE LIMITED IPO INTRASOFT TECHNOLOGIES LIMITED IPO GOENKA DIAMOND & JEWELS LIMITED IPO TALWALKERS BETTER VALUE FITNESS LIMITED IPO NITESH ESTATES LIMITED IPO TARAPUR TRANSFORMERS LIMITED IPO MANNDHANA INDUSTRIES LIMITED IPO TARA HEALTH FOODS LIMITED IPO JAYPEE INFRATECH LIMITED(JIL)IPO SATLUJ JAL VIDYUT NIGAM LIMITED (SJVNL) IPO FATPIPE NETWORKS INDIA LIMITED IPO PARABOLIC DRUGS LIMITED IPO TECHNOFAB ENGINEERING LIMITED IPO ASTER SILICATES LIMITED IPO

Mar 23, 2010 Mar 23, 2010 Apr 21, 2010 Apr 23, 2010 Apr 26, 2010 Apr 27, 2010 Apr 28, 2010 Apr 29, 2010 Apr 29, 2010 Jun 07, 2010 Jun 14, 2010 Jun 29, 2010 Jun 24, 2010

Mar 26, 2010 Mar 26, 2010 Apr 23, 2010 Apr 27,2010 Apr 28, 2010 Apr 29, 2010 Apr 30. 2010 May 04, 2010 May 03, 2010 Jun 09, 2010 Jun 17, 2010 Jul 02, 2010 Jun 28, 2010

137/- to 145/135/- to 145/123/- to 128/54/- to 56/65/- to 75/120/- to 130/175/- to 185/102/- to 117/23/- to 26/82/- to 85/75/- to 85/230/- to 240/112/- to 118/-

RATE OF RETURNS FOR THE IPOS LISTED IN 2009 & till June 2010 As on Closing on Aug 11, 2010

ISSUER COMPANY
GEMINI ENGI-FAB LIMITED IPO EDSERV SOFTSYSTEMS LIMITED IPO RISHABHDEY TECHNOCABLE LIMITED IPO MAHINDRA HOLIDAYS& RESORTS INDIA LIMITED IPO EXCEL INFOWAYS LIMITED IPO RAJ OIL MILLS LIMITED IPO ADANI POWER LIMITED IPO NHPC LIMITED IPO JINDAL COTEX LIMITED IPO GLOBUS SPIRITS LIMITED IPO OIL INDIA LIMITED IPO PIPAVAV SHIPYARD LIMITED IPO EURO MULTIVISION LIMITED IPO THINKSOFT GLOBAL SERVICES LIMITED IPO INDIABULLS POWER LIMITED IPO DEN NETWORKS LIMITED IPO ASTEC LIFE SCIENCES LIMITED IPO COX & KINGS(INDIA) LIMITED IPO MBL INFRASTRUCTURES LIMITED IPO JSW ENERGY LIMITED IPO GODREJ PROPERTIES LIMITED IPO D B CORP LIMITED IPO INFINITE COMPUTER SOLUTIONS INDIA LIMITED IPO JUBILANT FOODWORKS

OFFER PRICE 75/55/29/275/80/100/90/30/70/90/950/55/70/115/40/195/77/316/165/100/490/185/155/135/-

CLOSING PRICE 26.80 212.55 40 477.40 49.55 51.55 141.10 30.80 119.50 177.55 1373.17 110.45 32.45 138.55 27.80 227.40 75.15 588.45 256.95 127.40 743.65 254.00 174.15 441.25

Rate of Return -64.27 286.45 37.93 73.60 -38.06 -48.05 56.78 2.67 70.71 97.28 44.54 100.45 -53.64 20.48 -30.5 16.62 -2.40 86.22 55.73 27.40 51.77 37.30 12.35 226.85

LIMITED IPO AQUA LOGISTICS LIMITED IPO THANGAMAYIL JEWELER LIMITED IPO SYNCOM HEALTHCARE LIMITED IPO VASCON ENGINEERS LIMITED IPO D B REALTY LIMITED IPO EMMBI POLYARNS LIMITED IPO ARSS INFRASTRUCTURE PROJECTS LIMITED IPO HATCHWAY CABLE & DATACOM LIMITED IPO TEXMO PIPES & PRODUCTS LIMITED IPO MAN INFRACONSTRUCTIONS LIMITED IPO UNITED BANK OF INDIA IPO DQ ENTERTAINMENT LIMITED IPO PRADIP OVERSEAS LIMITED IPO IL&FS TRANSPORTATION NETWORKS LIMITED IPO PERSIST SYSTEMS LIMITED IPO SHREE GANESH JEWELRYHOUSE LIMITED IPO INTRASOFT TECHNOLOGIES LIMITED IPO GOENKA DIAMOND & JEWELS LIMITED IPO TALWALKERS BETTER VALUE FITNESS LIMITED IPO NITESH ESTATES LIMITED IPO TARAPUR TRANSFORMERS LIMITED IPO MANNDHANA INDUSTRIES LIMITED IPO TARA HEALTH FOODS LIMITED IPO JAYPEE INFRATECH

200/70/65/165/468/40/410/210/85/243/60/75/100/242/290/260/137/135/123/-

494.80 143.50 43.50 174.00 408.00 17.20 1297.00 202.40 49.45 336.90 89.70 109.70 87.60 298.00 466.40 165.20 89.00 88.00 208.10

147.40 105.00 -33.08 5.45 -12.82 -57.00 216.34 -3.62 -41.82 38.64 49.50 46.27 -12.40 23.14 60.83 -36.46 -35.04 -34.81 69.19

54/65/120/175/102/-

38.95 37.20 163.90 150.15 84.50

-27.87 -42.77 36.58 -14.2 -17.16

LIMITED(JIL)IPO SATLUJ JAL VIDYUT NIGAM LIMITED (SJVNL) IPO FATPIPE NETWORKS INDIA LIMITED IPO PARABOLIC DRUGS LIMITED IPO TECHNOFAB ENGINEERING LIMITED IPO ASTER SILICATES LIMITED IPO

23/82/75/230/112/-

23.80 95.56 58.25 276.25 89

3.48 16.54 -22.33 20.11 -20.54

DATA INTERPRETATION:

Comparison Of IPOs & Nifty Returns Quarterly For Year 2009

Month & Year Jan - Mar 2009 Apr - Jun 2009 Jul - Sep 2009 Oct - Dec 2009

Percentage of IPO'S Return 111.09 55.76 25.32 30.28

Comparison Of IPOs & Nifty Returns Quarterly For Year 2010

Month & Year Jan-mar 2010 Apr-Jun 2010

Percentage of IPO'S Return 33.24 1.2

Positive and Negative for year 2009 & 2010

Year 2009

Month Jan - Mar Apr - Jun Jul - Sep 0ct - Dec Total

Positive Returns 1 2 8 6 17

Negative Returns 1 0 2 2 5 22

Year 2010

Month Jan - Mar Apr - Jun Total

Positive Returns 11 5 16

Negative Returns 9 6 15 31

Total no of companies

Trading Tex tiles Computers - Educ ation Cons truction

8% 3% 3% 3% 3% 3% 3% 3% 8% 5%

3%3% 21%

Telec ommunic ations - Serv ice Prov ider Entertainment Printing & Stationery Pac kaging Sugar Misc ellaneous A uto A nc illaries Pers onal Care - Indian Steel - Sponge Iron

18%

Pharmac eutic als - Indian - Bulk Drugs Banks - Priv ate Sector Transport - A irlines Pow er Generation A nd Supply Finance & Inv es tments Elec tric Equipment

3% 3% 8%

3% 3%

The above graph shows the different industries that are opt for the IPOs in the year 2009

Hotels

Total no of companies

Textiles - Processing Entertainment / Electronic Media Softw are Miscellaneous

2% 2% 2% 2% 2% 2% 4% 2% 9%

2% 4%

Construction Pow er Generation And Supply

16%

Diamond Cutting / Jew ellery Chemicals Steel - Medium / Small Ceramics - Tiles / Sanitaryw are Cement Finance & Investments Sugar

9% 7% 2% 4% 2% 4% 2% 2% 7% 4% 4% 2% 9%

Refineries Pharmaceuticals - Indian Formulations Engineering Transport - A irlines Printing & Stationery Personal Care - Indian Auto Ancillaries Banks - Private Sector Aluminium and Aluminium Products Telecommunications Equipment Food - Processing - Indian Computers - Softw are Medium / Small

The above pie chart shows the different industries that are opt for the IPOs in the year 2010

ISSUER COMPANY
GEMINI ENGI-FAB LIMITED IPO EDSERV SOFTSYSTEMS LIMITED IPO RISHABHDEY TECHNOCABLE LIMITED IPO MAHINDRA HOLIDAYS& RESORTS INDIA LIMITED IPO EXCEL INFOWAYS LIMITED IPO RAJ OIL MILLS LIMITED IPO ADANI POWER LIMITED IPO

OFFER PRICE 75/55/29/275/80/100/90/-

CLOSING PRICE 26.80 212.55 40 477.40 49.55 51.55 141.10

Rate of Return -64.27 286.45 37.93 73.60 -38.06 -48.05 56.78

ISSUER COMPANY
NHPC LIMITED IPO JINDAL COTEX LIMITED IPO GLOBUS SPIRITS LIMITED IPO OIL INDIA LIMITED IPO PIPAVAV SHIPYARD LIMITED IPO EURO MULTIVISION LIMITED IPO THINKSOFT GLOBAL SERVICES LIMITED IPO

OFFER PRICE 30/70/90/950/55/70/115/-

CLOSING PRICE 30.80 119.50 177.55 1373.17 110.45 32.45 138.55

Rate of Return 2.67 70.71 97.28 44.54 100.45 -53.64 20.48

ISSUER COMPANY
INDIABULLS POWER LIMITED IPO DEN NETWORKS LIMITED IPO ASTEC LIFE SCIENCES LIMITED IPO COX & KINGS(INDIA) LIMITED IPO MBL INFRASTRUCTURES LIMITED IPO JSW ENERGY LIMITED IPO GODREJ PROPERTIES LIMITED IPO D B CORP LIMITED IPO

OFFER PRICE 40/195/77/316/165/100/490/185/-

CLOSING PRICE 27.80 227.40 75.15 588.45 256.95 127.40 743.65 254.00

Rate of Return -30.5 16.62 -2.40 86.22 55.73 27.40 51.77 37.30

ISSUER COMPANY
INFINITE COMPUTER SOLUTIONS INDIA LIMITED IPO JUBILANT FOODWORKS LIMITED IPO AQUA LOGISTICS LIMITED IPO THANGAMAYIL JEWELER LIMITED IPO SYNCOM HEALTHCARE LIMITED IPO VASCON ENGINEERS LIMITED IPO

OFFER PRICE 155/135/200/70/65/165/-

CLOSING PRICE 174.15 441.25 494.80 143.50 43.50 174.00

Rate of Return 12.35 226.85 147.40 105.00 -33.08 5.45

ISSUER COMPANY
D B REALTY LIMITED IPO EMMBI POLYARNS LIMITED IPO ARSS INFRASTRUCTURE PROJECTS LIMITED IPO HATCHWAY CABLE & DATACOM LIMITED IPO TEXMO PIPES & PRODUCTS LIMITED IPO MAN INFRACONSTRUCTIONS LIMITED IPO

OFFER PRICE 468/40/410/210/85/243/-

CLOSING PRICE 408.00 17.20 1297.00 202.40 49.45 336.90

Rate of Return -12.82 -57.00 216.34 -3.62 -41.82 38.64

ISSUER COMPANY
UNITED BANK OF INDIA IPO DQ ENTERTAINMENT LIMITED IPO PRADIP OVERSEAS LIMITED IPO IL&FS TRANSPORTATION NETWORKS LIMITED IPO PERSIST SYSTEMS LIMITED IPO SHREE GANESH JEWELRYHOUSE LIMITED IPO

OFFER PRICE 60/75/100/242/290/260/-

CLOSING PRICE 89.70 109.70 87.60 298.00 466.40 165.20

Rate of Return 49.50 46.27 -12.40 23.14 60.83 -36.46

ISSUER COMPANY
INTRASOFT TECHNOLOGIES LIMITED IPO GOENKA DIAMOND & JEWELS LIMITED IPO TALWALKERS BETTER VALUE FITNESS LIMITED IPO NITESH ESTATES LIMITED IPO TARAPUR TRANSFORMERS LIMITED IPO MANNDHANA INDUSTRIES

OFFER PRICE 137/135/123/-

CLOSING PRICE 89.00 88.00 208.10

Rate of Return -35.04 -34.81 69.19

54/65/120/-

38.95 37.20 163.90

-27.87 -42.77 36.58

LIMITED IPO

ISSUER COMPANY
TARA HEALTH FOODS LIMITED IPO JAYPEE INFRATECH LIMITED(JIL)IPO SATLUJ JAL VIDYUT NIGAM LIMITED (SJVNL) IPO FATPIPE NETWORKS INDIA LIMITED IPO PARABOLIC DRUGS LIMITED IPO TECHNOFAB ENGINEERING LIMITED IPO ASTER SILICATES LIMITED IPO

OFFER PRICE 175/102/23/82/75/230/112/-

CLOSING PRICE 150.15 84.50 23.80 95.56 58.25 276.25 89

Rate of Return -14.2 -17.16 3.48 16.54 -22.33 20.11 -20.54

Findings

1. 2.

The IPOS returns for the year 2009 and 2010 IPOS Return : 137.6 & 35.6 Edserv Soft systems Ltd has given highest return (286.45%) in the year 2009.and the lowest return (-64.27%) which has given by Gemini Engi-Fab ltd..

3.

The highest return (226.85%) has given by Jubilant Food works Limited IPO in the year 2010 and the lowest return has given by Emmbi Polyarns Limited IPO (-57)

4. 5. 6. 7.

The average quarterly positive returns are more comparing with the negative returns. The average listing period for year 2009(17days) and 2010(6days). The average listing price for year 2009(263.37) and 2010 (265.28) The average days open for IPO for year 2009(12 days) and 2010(4 days).

suggestions
1. The returns of IPOs are higher when compare to benchmark portfolio of Nifty. So an investor can invest in IPOS for better returns. 2. There is a probability of listing a stock in positive is 63%and negative is 37% 3. An investor can expect average return is 28% with the 63% probability of getting positive returns.

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

Bibliography 1.www.nseindia.com 2.www.capitalmarket.com 3.www.moneypore.com 4.www.glossary.reuters.com 5 www.chittorgarh.com/ipo/ipo_list.asp? FormIPO_Page=1,2,3.

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

Issue Price: The price at which securities are sold on issue. This can be at par or face value, or at a discount or premium

Portfolio: An investor's collection, or holding, of financial instruments. Benchmark: A standard used for comparison. A benchmark security is usually the most recent security of its type issued in a large quantity. It sets the standard for the rest of the market. A benchmark issue is highly liquid. Index A composite of values designed to measure change in a market or an economy. Indices are usually created by measuring the value of a number of securities, or an economic indicator, at a certain date and letting that value be represented by 100. Subsequent changes in the index can be easily perceived in comparison with that 100 base number

Book Building: An exercise by an investment bank, which is lead-managing a new issue to ascertain the likely levels of demand for a security at different prices. It is designed to prevent an issue being undersubscribed because of a large discrepancy between the issue price and the price at which the security starts trading on the secondary market.

Underwriter:

A company or other entity that administers the public issuance and distribution of securities from a corporation or other issuing body. An underwriter works closely with the issuing body to determine the offering price of the securities, buys them from the issuer and sells them to investors via the underwriter's distribution network.

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

Trading Account:

1. An account similar to a traditional bank account, holding cash and securities, and is administered by an investment dealer 2. An account held at a financial institution and administered by an investment dealer that the account holder uses to employ a trading strategy rather than a buy-and-hold investment strategy. Though trading accounts are traditionally thought to hold only stocks, a trading account can hold cash, foreign cash, securities and a number of other types of investments Investors who use a number of trading strategies or have a number of brokerage accounts may separate their accounts in order to avoid confusion. One account may be a registered account for their retirement savings; another account may be a buy-and-hold account for their long-term stocks; another may be a margin account; and another may be a trading account used for conducting day-trading activities.

Stock Exchanges in India Stock Exchanges are an organized marketplace, either corporation or mutual organization, where members of the organization gather to trade company stocks or other securities. The members may act either as agents for their customers, or as principals for their own accounts.

Stock exchanges also facilitates for the issue and redemption of securities and other financial instruments including the payment of income and dividends. The record keeping is central but trade is linked to such physical place because modern markets are computerized. The trade on an exchange is only by members and stock broker do have a seat on the exchange.

List of Stock Exchanges in India

o o o o o o o o o o o o o o o o o o o o o

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