Final project on ipo

PROJECT GUIDE:- PROJECT GUIDE:-

N.HARIHARAN SUBMITTED BY:-N.HARIHARAN SUBMITTED BY:-

PROFESSOR & H.O.D OF IIBM PROFESSOR & H.O.D OF IIBM

AMPLIFY- BVU DEEPAK AMBULKARAMPLIFY- BVU DEEPAK AMBULKAR

PGDIIBM/09/043PGDIIBM/09/043

(FINANCE)(FINANCE)

DEEPAK AMBULKAR PRN NO. 0900004088 1

Chapter SchemeChapter Scheme

• Importance

• Objective

• Data Collection & Scope

• Review of Literature

• Analysis and Interpretations

• Findings

• Suggestions


ImportanceImportance

• An initial public offering is the sale of a company’s stock to the public for the first time. The primary impetus for an IPO is generally either to raise capital or to offer an exit strategy to some of the firms existing owners, but a number of other motivations and considerations also influence a firm’s decision to go public. This decision process illuminates a firm’s goals in issuing an IPO, which are important to evaluate the potential reasons for the under pricing we

• Start-up companies rarely have the resources, history, or credibility to conduct an IPO. In fact, firms in the most incipient stage of development generally rely entirely on personal loans, savings, family, and friends for their initial financing


ObjectivesObjectives

• To get the knowledge of IPO.

• Find out the factors which influence the IPO Listing Process.

• Analysis between Share Holder and IPO Companies.

• Analysis of Auction, Pricing, Issued Price and Reverse IPO’s.

• Find out the companies which like to adopt this technique.

• Analyse why company go to issue IPO.

• Find out the risk involve in purchasing IPO.

• To what extent SEBI can protect the interest of investors


ScopeScope

• Spread awareness about this process.

• What the companies are looking from Open New IPO’s in India.

• Analysis between Share Holder and IPO Companies

• Analysis of IPO’s past/present/future Prospects


Data Collection Data Collection

The project includes both primary & secondary sources of data. The data collected through these sources has been organized properly.

•Primary source of data includes personal interviews from various respondents.

•questionnaire.docx

•The secondary source of data includes different websites of banks which contains details which is helpful for making my project report.


Review of Literature Review of Literature

IPO Concept •An Initial Public Offer is the selling of securities to the public in the primary market. It is the first time a company offers shares of stock to the public. Smaller, younger companies seeking capital to expand their business often consider venturing in IPOs. It is also referred to as a "Public Offering.“

Why go Public?Access to CapitalLiquidityCompensationPrestigeImagePublicityMergers & AcquisitionsFuture Capital


The Process of Going PublicThe Process of Going Public

The SEBI then requires a cooling off period, in which they

investigate and make sure all material information has been

disclosed.

During the cooling off period the underwriter puts together what is known as the Red Herring prospectus.

Once the SEBI approves the offering, a date (the effective date) is set when the stock will be offered to the public.

As the effective date approaches, the underwriter and

company sit down and decide on the price.

Finally, the securities are sold on the stock market and the

money is collected from investors


Analysis and Interpretations Analysis and Interpretations

Interpretation:-

•45% investors annual income more than 3,00,000. And 24% investors income

•Between 2,00,001 to 3,00,000

analysis & int..docx


Interpretation:-

• 40% investors are businessman. And 25% builder , 18% engineer,

17% engineers.


• How much do you invest in IPO’s?

Interpretation:-

44% of the investors, invest around 10,000 to 50,000 and 38% of investors, invest around

50,001 to 5, 00,000


• What do you see before investing in IPO?

Interpretation:-

• 36% of the investors say they go by sector performance and 32% of them say they go by the performance of the existing companies.


• What is the source of information you use?

Interpretation:-

• 30% of investor say the source of information is print media, 16% say electronic media, 28% go with expert opinion and 26% agree to their friends advice.


• What is your advice to new investors in IPO?

Interpretation:-

• 42% investors advice the new investors to go by only sector performance. 30% investors advice go by only premium.


• What difficulties did you face after applying IPOs?

Interpretation:-

• 30% of the investors say the delay in crediting allotted shares to the DEMAT account. 28% say no clarity in allotment and 26% say they never faced difficulties. And 16% say refund problem.


Findings and SuggestionsFindings and Suggestions

Findings•90% investors are well aware of IPOs•44% of the investors, invest around 10,000 to 50,000 and 38% of investors, invest around 50,000 to 5, 00,000.•32% of the investors feel that its better to pick the same stock on the listing. 28% investors feel they would partly invest in IPO and pick the stock on listing.•36% of the investors say they go by sector performance and 32% of them say they go by the performance of the existing companies.

Suggestions

•The investment in IPO can prove too risky because the investor does not know anything about the company because it is listed first time in the market so its performance cannot be measure •Investors of the secondary market must take part in the primary markets as it has been seen that IPO activity in Indian Stock Market has been tremendously growing. And IPO is the safest stock market investment.


Final project on ipo

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