A Grand Project Report on “A study of Investor’s Perception on IPO And IPOs Performance in Stock Market”. This project is related is Stock Market in MBA 4th Semester and comparison between IPO and Share related how they react Before and After.

1. 0
Grand Project Report
On
“A study of Investor’s perception on IPO
And
IPOs Performance in Stock Market”
Prepared By:
Manoj k Muliya
Enrolment No: - 13SOMBA21025
Submitted to:-
School of Management
RK University
Guided By: -
Dr. Chetna Parmar
For
Academic year
2014-2015

2. 1
Declaration
I Manoj K Muliya, student of School of Management, R.K. University, Rajkot.
Here, by I declare that this project report is a result of culmination of my sincere
efforts.
I declare that is submitted works is done solely by me and the best of my knowledge
no such work has been submitted by any other person for the award of degree. I also
declare that all information collected from various primary & secondary sources has
been duly acknowledge in this report.
DATE: -
PLACE: -
SIGNATURE
Manoj k Muliya

3. 2
Preface
Today we are at the doorstep of 21st
century, competition at various levels is increase day
by day. New and new developments are taking place these days in all over India to make
the people more comfortable a luxurious.
Thus in order to survive in market on should have practical as well as theoretical knowledge
about all different fields existing I market. With this view point, we had decided to have a
project report on “A study of investor’s perception on IPO and IPO performance in
Stock market” and to see how things go there.
MBA education brings its student in direct contact with the real corporate world through
industrial training. The MBA program provide its students with an in depth study of various
managerial activities that are performed in any organization.
Indian stock market is considered to be the one of the fastest growing as well as most
volatile market in the world. Sensex and Nifty has touched all time high and created history.
There are many factor such a drastic change in the stock market. We can divided these
factors in mainly three categories like economic factor.

4. 3
Acknowledgement
It is our great pleasure that we had given an opportunity to convey thanks to all of them
who have helped us at any place directly or indirectly in the whole project. There are many
people who played very important role in our achievement so especially we would like
to thank those people who have helped us in our whole project.
We would like to express our sincere thanks to our project guide Dr. Chetna Parmar of
the School Of Management, R.K University Rajkot who has helped us to provide
information about Grand project.
Finally, thanks to our beloved families, whose devotion and candid dedicational ways
inspire and encourage us to achieve better off.

5. 4
Executive Summary
New ideas and innovations have always been the hallmark of progress made by mankind.
At every stage of development, three have been two core factor that drive man to ideas and
innovation. These are increasing returns and reducing risk, in all facets of life.
In Research methodology for IPO I have use to calculate Primary analysis, secondary
analysis in to ANOVA test and F test in it. From period of 2001 to 2015 I have taken the
data from NSE & BSE.
The financial markets are no different. The endeavor has always been to maximize returns
and minimize risk. A lot of innovation goes into developing financial products center on
these two factors.
IPO is among the forefront of the innovation in the financial market in aim to increase
return and reduce risk. These instruments have been very popular with investor all over the
world.
This market present a tremendous opportunity for investor. The time is ripe for investor to
make full use of the advantage offered by this market. We have tried to present in a lucid
and simple manner analysis on the IPO market.
This project is an integrated project which through light on the present market scenario of
IPO market, its history and future outlook in India. At present primary market as well as
secondary market is performing very well in India.

6. 5
Index
Sr. No Particular Page
No
Ch. 1
1. Over view of stock market 8
2. History of the Indian market 10
3. Post-independence scenario of stock market 13
4. Two major stock market 15
5. Literature Review 22
Ch. 2
1. Market Segment (Primary & Secondary) 25
2. IPO in Market 26
3. IPO trend 27
4. Book Building 29
Ch. 3
1. Research Methodology 32
2. Research objective 33
3. Research hypothesis 34
4. Sampling Design 35
Ch. 4
Data Analysis and Interpretation 36
1. Finding 58
2. Suggestion and Recommendation 59
Ch. 53. Conclusion 61
Ch. 6 Bibliography 62
Annexure 64

7. 6

8. 7

9. 8
Indian Stock Market
Introduction: -
Stock market refer to a market place where investor can buy and sell stock. The price at
which buying and selling transaction take is determined by the market.
Let us take an example for a better understanding for how market forced determine stock
price. ABC co. Ltd. Enjoy high investor confidence and there is an anticipation of an
upward movement in its stock price. More and more people would want to buy this stock
(i.e. high demand) and very few people will want to sell this stock at current market price
(i.e. less supply). Therefore, buyer will have to bid a higher price for this stock match the
ask price from the seller which will increase the stock price of ABC co. Ltd. On the
contrary, if there are more sellers than buyers (i.e. high supply and low demand), for the
stock of ABC Co Ltd in the market, its price will fall down.
In earlier times, buyers and seller used to assemble at stock exchanges to make a truncation
but now with the dawn of IT, most of the operation are done electronically and he stock
market have become almost paperless. Now investor I have to gather at the exchanges, and
can trade freely from their home or office over the phone or through internet.

10. 9
What is Stock?
An instrument: -
That signifies a stock market is a place where the stock and secutiries of various companies
are traded.
“Stock Exchanges”
It means anybody of individual, whether incorporated or not, constituted for the purpose
of assigning, regulating or controlling the business of buying selling or dealing in securities.
An ownership position in a corporation and represent a claim on its proportional share in
the corporation’s assets and profits.2
For Example: -
If a company has 1000 share of stock outstanding and a person owns 50 of them, than
he/she own 5%of the company.
Most stock also provides voting rights, which gives shareholder’s a proration vote in
certain corporate decisions.

11. 10
History of the Indian Market the Origin
One of the oldest stock market in Asia, the Indian stock market have a 200 year old history.
Years Particular
18th
Centaury
East India Company was the dominate institution and by end of the century,
business in its loan securities gained full momentum.
1830’s
Business on corporate stock and share in Bank and cotton presses started
in Bombay. Trading list by the end of the 1839 got broader.
1840’s Recognition from bank and merchant to about half a dozen brokers.
1840’s
Repaid development of commercial enterprise saw brokerage business
attracting more people in to the business
1860’s The number of brokers increase to 60
1860-61
The American civil war broke out which caused a stoppage of cotton supply
from united states of America, marketing the beginning of the “share
mania” in India
1862-63 The number of broker increased to about 200-250
1865’s
A distributors slump began at the end of the America Civil war (e.g. As a
Bank of Bombay share which had touched Rs. 2850 could only be sold at
Rs. 87

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History of Stock Market
 11th century, courratiers DE change of France, managed and regulated the debt of
agricultural communicate on behalf the bank. As these men traded in debts, they were
known as “brokers”.
 13th Century Commodity traded in Bruges gathered inside the house of a man called van
der burse, and they institutionalized this until now informal meeting and become the
“Bruges Bourse” – Belgium.
 1602, Dutch east Indian company established Amsterdam stock exchange and they were
the first company to issue stock and bonds.
 The first share on the Amsterdam stock exchange. It was the first company to issue stock
and bonds.

13. 12
This is one of the oldest stock exchange in the world and was established in 1968. The
founder of London stock exchange was John Casting. Today, London stock exchange
lists 3500 companies, representing 84 country.
The New York exchange is the oldest and the most well- known of all American stock
market. This was established in 1792. NYSE has a total capitalization of nearly $30
trillion and list 2800 companies.
The American stock exchange is also known as Amex is established in 1849. The American
stock exchange was associated with the mining industry. In the 1921, American stock
exchange enlisted companies, which did not meet the standard of the New York stock
exchange.
One of the oldest stock exchange market in Asia is Bombay stock exchange and it was
established in 1875. Today around 2 lakh+ share traded in daily.
National association of securities dealers’ automated quotation or NASDAQ was
established in 1971. This was the first stock exchange to introduce the concept of
electronic in stock trading. (America)

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Post-Independence Scenario of Stock Market
The depression witnessed after the independence led to closure of a lot of exchange in the
country. Lahore stock exchange was closed done after the partition of India, and later on
merged with the Delhi stock exchange. Bangalore stock exchange limited was registered
in 1957 and got recognition only by 1963. Most of the exchange were in a miserable state
till 1957 when they applied for recognition under securities contract (regulation) act,
1956. The exchange that were recognized under the act were:
1. Bombay
2. Calcutta
3. Madras
4. Ahmedabad
5. Delhi
6. Hyderabad
7. Bangalore
8. Indoor
Many more stock exchange were established during 1980’s namely:
1. Cochin stock exchange
2. Uttar Pradesh stock exchange Association Limited (at Kanpur 1982)
3. Pune stock exchange limited (1982)
4. Ludhiana Stock exchange Association Limited (1983)
5. Gauhati stock exchange limited (1984)
6. Kanara stock exchange limited (at Mangalore 1985)
7. Magadh Stock exchange Association (at Patna 1986)

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8. Jaipur stock exchange limited (1989)
9. Bhubaneswar Stock exchange Association (1989)
10. Saurashtra Kutch stock exchange limited (at Rajkot 1989)
11. Vadodara stock exchange limited (at Baroda 1990)
12. Coimbatore stock exchange
13. Meerut stock exchange
At present, there are twenty one recognition stock exchange in India which does not
included the over the counter exchange of India limited (OTCEI) and the national stock
exchange of India Limited (NSEIL)

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Two Major Stock in the Market
1) BSE ( Bombay Stock Exchange)
2) NSE ( National Stock Exchange)

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1. Bombay Stock Exchange
 Bombay Stock Exchange (BSE) is an Indian stock exchange located at Dalal
Street, Kala Ghoda, Mumbai, Maharashtra, India.
 BSE was established in 1875
 Around 5000+ Companies listed with stock exchange
 As of 5005, it is among the five biggest stock exchange in the world in term of transition
volume.
 The BSE or Bombay Stock Exchange sensitivity Index (Sensex) is a value weighted
Index. Composed of 30 stock with the base April 1979=100.
 The abbreviated from Sensex was coined by Deepak mohoni around 1990 while writing
market analysis columns for some business newspaper.
 The index has increased by over 13 times form June 1990 to today. Using information
from April 1979 onward the long run rate of return on the BSE Sensex can be estimated
to be 0.52 % per week (continuously compounded) with a standard deviation of 3.67%
this translate to 27% per annum, which translate to roughly 18 % P.A after
compensating.

18. 17
2. National Stock Exchange:
 In the year 1991 Pherwani Committee recommended to established national stock
exchange in India.
 In NSE there is trading of equity shares, bonds and government securities.
 The NSE India ranked is 3rd
position since last 4 year in the term of total number of
trading per calendar year.
 Presently there are 24 stock exchange in India, out of which 20 have exchanges.
 In order to lift the Indian stock market trading system on par with the international
standard, on the basis of the recommendation of high powered Pherwani committee,
the NSE was incorporated in 1992 by Industrial development bank of Indian Industrial
credit and Investment corporation of India, Industrial Finance corporation of India all
Insurance corporation selected commercial bank and other.
 NSE Operates in:
o Wholesales debt Market.
o Capital Market.

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 Objectives: -
o To establish nationwide trading facility for all type of securities.
o Ensuring equal access to investor all over the country through an appropriate
telecommunication network.
o Providing fair, efficient & transparent securities market using electronic trading
system
o Enabling shorter settlement cycle and stock book entry settlement
o Meeting international benchmark and standard.
 Trading at NSE:-
o Fully auto anted screen based trading mechanism
o Strictly follows the principle of an order driven market
o Trading members are linked through a communication network
o This network allows them to execute trade from their offices
o The prices at which the buyer and seller are willing to transact will appear on the
screen
o When the prices match the transaction will be completed
o A confirmation slip will be printed at the office of the trading member.
 Advantage of Trading NSE: -
o Integrated network for trading in stock market in India
o Fully automated screen based system that provides higher degree of transparency
o Investor can transact from any part of the country at uniform prices.

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 Securities and Exchange Board of India.
o The SEBI was constituted in 1998 by a resolution of GOI and it was made a
statutory body by the securities and exchange board of India Act, 1992.
o The act empower the central government to supersede SEBI if on account of
emergency, SEBI is unable to perform the function and duties under any provision
of the act.
 Objective
o The Protect the interest of investor in securities and to promote the development of
and to regulate the securities market for matter connected therewith.
 Power and Function
o Regulate the business in stock exchange and any other securities market.
o Registering and regulating the networking of stock broker, sub broker etc.
o Registering and regulating the working of collective investment schemes.
o Promoting and regulating self-regulatory organizations.
o Prohibiting fraudulent and training of intermediaries in securities market.
o Prohibiting insider trading in securities.
o Regulating substantial acquisition of share and take over by companies
o Conducting inspection and inquiries
o Levying fees or other chargers.
o Conducting research.
 Sensex: -
o It consist of the largest and most actively traded stock, representative of various
sector, on the Bombay stock exchange.
o These companies account for around one fifth of the market capitalization of the
BSE.
o The base value of the Sensex is 100 on April 1, 1979 and the base year of BSE-
SENSEX is 1978-79.
o Launched on full market capitalization method and from September 01, 2003,
calculated method shifted to free-float market capitalization

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o The free-float method, therefore, does not included restricted stock such as those
held by promoters, government and institutional investors.
 Trading Required: -
Step: - 1 : PAN Card
Step: - 2 : (DE mat a/c) Subscribe to trading account with one of the major online
Broking houses.
Step: - 3 : Now major challenges starts is to learn trading. You can read books, join
Online charting Communicating, blogs membership site or get into a
Mentorship program.
Step: - 4 : Apply your knowledge and star trading.
 Offline Trading: -
o In offline the investor place order with the stockbroker either verbally (Personally and
telephonic) or in a written from (fax). This may be because he is not comfortable in
accessing the Internet.
 Highlights:
o Trading over the phone
o No access to live market watch
o Absence of online fund transfer.
 Online Trading’s
o Online trading means treading/investing in equities, depravities commodities etc.
through the internet. It enable the investor to electronically connect to buy or sell stock
derivatives etc. with the other investor. In online trading one can access a stockbroker’s
website through an internet enable PC and can place orders.
o Online trading started in February 2000 when a couple brokers started offering an
online trading platform for their customer.

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 Highlights:
o Streaming quotes
o Self-execution and instant conformation
o Complete control over their trading decision
o Can access account online
o Convenience of trade
o Wide access to historical charts and past data.
 Why Stock Prices Rises?
o News About Company
o News About the Country
o Exchange rate regime
o Demand & Supply High
o Decrease the tax Rate and Bank rate
 Benefits of Investing in Share: -
o Possibility of high returns
o Easy liquidity
o Unbeatable tax benefits
o Income from dividend

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Review of Literature
The underpricing of initial public offerings (IPOs) is referred to in the literature as one of
the Anomalies observed in primary markets all over the world. The extent of it, however,
varies From country to country. Underpricing refers to the positive initial returns over the
offer to listing dates of the new issues. It is defined as the percentage difference between
the closing price on the listing date from the offer price of the issue it is a cost to the issuers
and has drawn considerable attention in the academic literature over the last three decades.
Gade Surendar and Dr. S. KamaleshwarRao (2011) Companies raise capital in the
primary market by way of an initial public offer, rights issue or private placement. An
Initial Public Offering (IPO) is one through which 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 issuer’s securities. IPOs deepen
the market, diversify investor’s portfolios, reduce volatility in stock prices, bring domestic
investors money into the market and attract Foreign Institutional Investor funds.
Qiming Wang (2010) the price clustering of Initial Public Offerings (IPOs) in the
secondary market trading during the first 240 trading days after their IPO dates. The results
indicate the huge difference between the integer price frequency of IPOs in the primary
market and that of matched stocks in the secondary market almost disappears on the first
trading day after IPO.
S S Kumar (2010) this study examines the performance of IPOs issued through the book
building process in India over the period 1999 2006. The sample comprises 156 firms that
offered their shares through the book building route on the NSE. Upon listing the IPOs on
an average offered positive returns (after adjusting for market movements)to investors and
a large part of the closing day returns on the listing day were accounted for by the opening
returns. In the long run the IPOs offered positive returns up till twenty four months but
subsequently they underperform the market.

24. 23
Satyendra K. Singh (2008) The Underpricing phenomenon for the common stock for
initial public offerings (IPOs). Book-building company was made compulsory for the
companies during the year 2000-2001. In this case 60% of the offer should be allotted to
Qualified Institutional Buyers. The main study is to understand the relationship between
performance of index and the average returns on the IPO.

25. 24

26. 25
Market Segment
There are mainly two types of market segment which are as below
1. Primary
2. Secondary
 Primary market: -
o The primary market is a mechanism through which the resources of the community are
mobilized and invested in the various types of industrial securities. New IPO are made
in the primary market. The secondary market, that is the stock exchange taken together
is a mechanism which provide easy liquidity, transferability and continuous price
formation of securities to enable of investor to buy sell them with ease. The primary
market is reflection of the secondary market, two major factor investor earning rate for
an individual and corporate expansion govern the latter. Equity investor are made for
yield but for capital gains the latter is directly dependent on corporate retained earnings
and critically their direction into funding expansion.
 Secondary Market: -
o The secondary market, is also called aftermarket, is the financial market in which
previously issued financial instruments such as stock, bonds, options, and futures are
bought and sold. Another frequent usage of "secondary market" is to refer to loans
which are sold by a mortgage bank to investors such as Fannie Mae and Freddie Mac.
o The term "secondary market" is also used to refer to the market for any used goods or
assets, or an alternative use for an existing product or asset where the customer base is
the second market (for example, corn has been traditionally used primarily for food
production and feedstock, but a "second" or "third" market has developed for use in
ethanol production).

27. 26
IPO Market in India- Glimpses
 The IPO market in India experienced a boom in its activities in the year 1994
 In the year 1995 the growth of the Indian IPO Market was 40%
 The growth was halted with the south East Asian Crises.
 The market picked up speed again with the introduction of the software stock.
During an IPO the share are given to the public at a discount on the intrinsic value of the
share and this is the reason that the investor buy share during the IPO in order to make
profit for themselves.
IPO in India is done through various method like book building method, fixed price
method, or a mixture of both. The methods of book building has been introduce in the
country in 1999 and it help the company to find out the demand and prices of its share.
A merchant banker is nominated as book runner by the issuer of the IPO. The company
that is issuing the IPO decided the number of share that it will issue and also fix the price
band of the share. All these information are mentioned in the company’s red herring
prospectus.
During the company IPO in India, an electronic book opened for at least 5 days. During
this period of time binding take place which means that people who are interested in buying
the share of the company make an offer within the fixed price band.
Once the book building is closed then the issuer as well as the book runner of the IPO
evaluate the offers and then determine a fixed price. The offers for share that fall below the
fixed price are rejected. The successful bidders are than allocated the share.

28. 27
IPO Trend: -
IPO’s have the potential to deepen the market, diversify investor’s portfolio reduce the volatility in
stock prices, bring back domestic investor’s money back into the market and attract foreign
institutional investors (FII) funds.
The below table represents the number of IPOs made during the year from 2001 up to min of 2014.
The primary market received a boost from the introduction of free pricing during the early 1990s
which paved the way for market determined allocation of resources. Companies complied with the
guideline and accessed the market. Every company would like to offer its investor adequate returns.
Year 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
IPO 15 20 30 21 50 73 108 39 22 66 40
2012 2013 2014 2015
27 39 47 15
http://www.chittorgarh.com/ipo/ipo_calendar.asp
-

29. 28
 Circuit Breakers
An index based market-wide circuit breakers system applies at three stage of the index
movement either way at 10% 15% & 20%
The breakers are triggered by movement of either S&P CNX Nifty or Sensex, whichever
is breached earlier.
 Clearing and Settlement
o Stock market follows a system of setting trades on T+2 basis which means transaction
done on Monday, are to be settled by Wednesday by way of giving securities of funds.
o Providing of securities of funds to exchange clearing corporation is called ‘pay-In’
o Receiving securities or funds from exchange clearing corporation is called pay out
o Sometimes trade does not get settled because of short or bad delivery o5r company
objection.
o In such case trade is settled through auction of securities.
 Function of stock market
o Promotion the savings
o Provide liquidity to investor
o Profitable activities for companies
o Permits for the investor to have a political power in the companies
o Possibility of diversifying your portfolio

30. 29
Book Building
Book building is a process of generating, capturing, and recording investor demand for
shares during an initial public offering (IPO), or other securities during their issuance
process, in order to support efficient price discovery. Usually, the issuer appoints a major
investment bank to act as a major securities underwriter or book runner. The "book" is the
off-market collation of investor demand by the book runner and is confidential to the book
runner, issuer, and underwriter.
Process of Book Building: -
1. The issuer who sets up an IPO will elect a lead merchant banker as a “Book Runner”.
2. The issuer spells out the no. of securities that are to be issued and also the price band
for orders.
3. The issuer also nominates associate members with whom investors can place orders.
4. Investors make their order with an associate member who keys in the orders in the
“Electronic book”. The process is called “Bidding” and is akin to an open auction.
5. A book must stay open for at least 5 days.
6. One can’t submit bids that are lower than the floor price.
7. Bids can be altered by the bidder prior to the closure of the issue.
8. On the completion of the book building phase, the book runner assesses the bids on the
basis of the following criteria:
 Price Aggression,
 Investor Quality,
 Earliness
9. The book runner as well as the firm determines the final price at which it is keen to
Issue the stock and allocate securities.
10. Normally, the number of shares is fixed; the issue size gets frozen depending on the
Price per share discovered via the book building process.
11. Allocation of securities shall be made to the successful bidders. Allotment, in simple
Words, is the mechanism wherein those who apply are given shares.

31. 30
 Guideline for Book Building
o Rules governing book building is covered in chapter XI of the securities and
exchange board of India
o Book building is a process by which demand of securities which are being offered,
is elicited and prices determined.
 Book’s Book Building System
o BSE offer the book building services through the book building software that run
on the BSE Private network
o This system is one of the largest electronic book building networks anywhere
spanning over 350 Indian cities through over 70 trades work station via leased line
VASTs and Campus LANS
o The software is operated through book runner of the issues and bye the syndicate
member broker. Through this book, syndicate member brokers on behalf of
themselves or their clients place order.
o Bids are placed electronically through syndicate member and the information is
collected on line real time until bid date ends.
o In order maintain transparency, the software gives visual graph displaying price/s
quantity on the terminal.
 Initial Public Offering
o Corporate may raise capital in the primary market by way of an IPO, rights issues
or private placement. An initial public offering is the selling of securities to the
public in the primary market. This IPO can be made through the fixed price method,
book building methods or a combination of both.
o In case the issuer choose to issue securities through the book building routs then as
per SEBI guideline an issuer company can issue securities in the following manner;
 100% of the net offer to the public through the book building route.
 75% of the offer to public through the book building process and 25% through
the fixed price portion.

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33. 32
Research Methodology
As there is problem of investor perception is defined with the help of descriptive research.
Where, the performance evaluation defined by the quantitative research.
 Research Design
o Descriptive and exploratory research come quantities research
 Data collection design
 Primary data:
 Questionnaire
 Secondary data
 Last one year IPO trends and returns
 Industry wise IPO
 How Much Issue Success & Failure

34. 33
Research Objective
Primary Objective:
 To study the opinion of retail investor on IPO and it Impact on them
 To study the performance evaluation of IPOs in reference to last one year in India.
Secondary Objective:
 To ascertain the attribute which influenced the investor in selecting a particular
IPO of the company or Industry
 To assess the return and risk of different IPOs
 To study and identify how the investors are benefited
 To assess the performance of the stock market due to listed IPOs
 To offer valuable suggestion to investors.
Research Statement:
“To know the investors perception towards the IPOs and IPOs performance which
includes two following problem”
 What is IPO performance in stock market over the last year 2014?
 What is Investor’s perception on the IPO performance and Investment
in IPOs?

35. 34
Research Hypothesis
 Hypothesis 1:
o Null Hypothesis 1 (H0) : There is no significant difference of return from
“Nifty S&P CNX 50” and from IPO subscribed”
o Alternative Hypothesis (H1) : There is significant difference of return from
“Nifty S&P CNX 50” and from IPO subscribed”
 Hypothesis 2:
o Null Hypothesis 2 (H0) : There is no significant difference of return from
“Nifty S&P CNX 50” and Return from Open Market”
o Alternative Hypothesis 2 (H1) : There is significant difference of return from
“Nifty S&P CNX 50” and Return from Open Market”

36. 35
Sampling Design
Here we are study of two problem
Sr. No Particulate Investor Perception IPOs Performance
1 Population Rajkot City 01-02-2013 to 29-03-2014
2 Sampling Frame Convenience Sampling Convenience Sampling
3 Sample Size 100 No. of IPO in last one year
Data analysis design:
 Analysis of Primary Data:
 Comparative study and quantities analysis
 Analysis of secondary data
 Last IPO in 12 month
 Mean, variance& returns
 IPO Success & Failure
 ANOVA
 F-TEST

37. 36

38. 37
 Primary Data Analysis: -
Interpretation: -
The above chart shown that 85% respondent are investing and 15% are not
investing their money stock market through primary or secondary market.
0
10
20
30
40
50
60
70
80
90
85
15
Are you investing in stock market?
Yes
No
Are you investing in stock market?
Yes No
85 15

39. 38
Interpretation: -
The above chart shown that respondent are investing in different sector like, 10% in Oil &
Gas 26% Auto, 15% FMCG, 15% IT, 14% Reality, and 20% in banking.
Auto, 26
FMCG, 15
IT, 15
Reality, 14
banking, 20
Oil & Gas, 10
In which sector are you invest?
Auto FMCG IT Reality banking Oil & Gas
In which sector are you invest?
Auto 26
FMCG 15
IT 15
Reality 14
banking 20
Oil & Gas 10

40. 39
What is your investment Horizon?
Short Time 27
Long time 28
Medium Time 45
Interpretation: -
The above chart shown that 27% are investment for short time, 45% are Medium time and
28% are people invest in a long time. Majority people are prefed in medium time of
investing their money.
27%
28%
45%
what is your investment Horizone?
Short Time Long tiem Medium Time

41. 40
Which market through are you enter in
stock market?
Primary Market 40
Secondary Market 60
Interpretation:
The above chart indicate that 40% respondent are entered in stock market through primary
market or 60% are secondary market.
0
10
20
30
40
50
60
Primary Secondary
40
60
Which market through are you enter in
stock market?

42. 41
Interpretation:
The above chart shown that 20% respondent are getting information from News
Paper, 5% are getting through Magazine, 15% are from internet, 20% getting from
Friends 35% are getting the information from Brokerage house and 5% are other.
So, it major people are getting Information from Broker house
20
5
15
20
35
5
0
5
10
15
20
25
30
35
40
For Where you get information abour
upcoming IPO?
New Paper Magazine Internet Friends Broker Others
New Paper 20
Magazine 5
Internet 15
Friend 20
Broker 35
Other 5
For where you get information about upcoming
IPO?

43. 42
Interpretation:
From the above chart we concluded that 15% respondent are investing in IPO from
fundamental analysis, 50% are from technical analysis, 25% from advice and 10%
are from other.
15
50
25
10
0
10
20
30
40
50
60
On Which basis are you investing in IPO?
Fundamenetal analysis
Technical
Advise
Other
On Which basis are you investing in IPO?
Fundamental analysis 15
Technical Analysis 50
Advise 25
Other 10

44. 43
Do you aware about the book building
process?
Yes 40
No 60
Interpretation:
The above chart represented that the 40% are people aware about the book building
process where 40% are not aware about the book building process in IPO to
deciding the price of share.
40%
60%
Do you aware about the book building
process?
yes
no

45. 44
How many percentage you keep for margin funding for
IPO?
10 to 20 10
20 to 30 20
30 to 40 45
More than 40 25
Interpretation:
From the above the chart indicate the 10% respondent are keeping 10 to 20 margin
funding for IPO , 20% are indicate to 20 to 30 margin, 45% respondent in 30-40
margin and 25% are invest in more than 40.
10%
20%
45%
25%
Howmany percentage you keep for margin
funding for IPO?
10 to 20
20 to 30
30 to 40
more than 40

46. 45
Your preference towards IPO is Difference in All market
condition.
Strongly Agree 10
Agree 25
Neutral 35
Strongly disagree 15
Disagree 15
Interpretation:
From the above chart we can know that 10% are strongly agree that IPO preference is
difference in all market condition and 25% are agree where 35% are neutrals and 15% are
strongly disagree and 15% are disagree.
10%
25%
35%
15%
15%
Your preference towards IPO is
Difference in All market condition.
Srongly Agree
Agree
Netural
Srongly disAgree
Disagree

47. 46
Interpretation:
From the above chart we shows that 10% are strongly agree that IPO preference is
difference in all market condition and 30% are agree where 35% are neutrals and 15% are
strongly disagree and 10% are disagree.
10%
30%
35%
15%
10%
IPOs performacne is dependence on
Market Condition?
Srongly Agree
Agree
Neutral
Srongly disAgree
Disagree
IPOs performance is dependence on Market Condition?
Strongly Agree 10
Agree 30
Neutral 35
Strongly disagree 15
Disagree 10

48. 47
Do you feel, are there any problem with IPOs
Subscription?
YES 58
No 42
Interpretation:
The above chart shows that 58% are feel they have problem with IPO Subscription and
remaining 42% are not problem with IPO subscription.
YES
No
0
20
40
60
58
42
Do you feel, are there any problem with IPOs
Subscription?

49. 48
Interpretation:
The above chart shows that 35% respondent are investing in IPO from Capita;
Appreciation, 30%for Voting 20% for Dividend and 15% are for other reason.
0
20
40
60
80
100
Capital Appreciation,
35
Voting, 30
Dividend, 20
Others, 15
Why you are investing in IPO?
Why you are investing in IPO?
Capital Appreciation 35
Voting 30
Dividend 20
Others 15

50. 49
Particular Strongly
Agree
Agree Neutral Strongly
disagree
Disagree
Refund on IPO application is received without delay 20 25 15 22 18
IPO allotment are credited to your D-mat A/c before
listing of the allotted share. 30 22 26 17 5
Reservation of 35% of IPO for retail investors is
adequate 25 21 26 20 8
Payment of 100% of the bid amount at the time of
applying for IPO’s is a Problem 20 25 15 25 15
20
25
15
22
18
30
22
26
17
5
25
21
26
20
8
20
25
15
25
15
0
5
10
15
20
25
30
35
Srongly Agree Agree Neutral Srongly
disAgree
Disagree
If your answer ‘YES’ kindly opinion about the following statement regarding IPO,
please indicate your opinion in respect of the following statement by ticking.
Refund on IPO application is received
without delay
IPO allotment are credited to your D-
mat A/c before listing of the allotted
share.
Reservation of 35% of IPO for retail
investors is adequate
Payment of 100% of the bid amount at
the time of applying for IPO’s is a
Problem
If your answer ‘YES’ kindly opinion about the following statement regarding IPO, please
indicate your opinion in respect of the following statement by ticking.

51. 50
5
22
10
14
14
13
12
10
0 5 10 15 20 25
Non availability of prescribed application from
Misleading advertisement
Misleading market rumors and gossip
Lack of reliable investment counseling facilities
Delayed/non-receipt of refund order
Delayed/non-receipt of refund certificates
Delayed listing of the securities with stock exchange
Offering securities under promoters quota or as firm allotment
on payment of unofficial premium
If you have purchase security from the primary market, kindly indicate
the problem you have faced.
Particular Remark
Non availability of prescribed application from 5
Misleading advertisement 22
Misleading market rumors and gossip 10
Lack of reliable investment counseling facilities 14
Delayed/non-receipt of refund order 14
Delayed/non-receipt of refund certificates 13
Delayed listing of the securities with stock exchange 12
Offering securities under promoters quota or as firm allotment on payment of
unofficial premium 10
If you have purchase security from the primary market, kindly indicate the problem
you have faced.

52. 51
Interpretation:
From the above chart indicate that the 58% are respondent are viewing that the IPO gives
the good earning where 42% are not agree for this statement.
58%
42%
From your point of view IPO gives a
good earning or Not?
Yes
No
From your point of view IPO gives a good earning or Not?
Yes 58
No 42

53. 52
 Secondary Analysis
o Industry wise a IPO comes in Last one Year
Basis Material
4%
Unit Offerings
6%
Consumer Goods
8%
Consumer Services
8%
Financial
15%
Health Care
36%
Oil & Gas
7%
Other
1%
Technology
13%
Telecommunication
1%
Utilities
1%
Industry wise No of IPO Comes in
last 1 Year
IPOs By Industry No Of IPO
Basis Material 11
Unit Offerings 14
Consumer Goods 20
Consumer Services 20
Financial 36
Health Care 88
Oil & Gas 16
Other 3
Technology 33
Telecommunication 3
Utilities 2
Total 246

54. 53
Year
No. of
IPOs
Amount Raised
Issue Succeeded Issue Failed
(In Rs Crore)
2001 15 1,290.50 15 0
2002 20 18,654.50 17 3
2003 30 6,765.98 30 0
2004 21 15,760.50 20 1
2005 50 30,851.36 48 2
2006 73 40,535.78 70 3
2007 108 33,946.22 104 4
2008 39 18,339.92 36 3
2009 22 19,306.58 21 1
2010 66 36,362.18 64 2
2011 40 6,043.57 37 3
2012 27 6,865.94 25 2
2013 39 1,645.87 37 2
2014 47 1,479.68 45 2
2015 15 1,297.44 15 0
Total 612 239146.02 584 28
http://www.chittorgarh.com/ipo/ipo_calendar.asp
1,290.50
18,654.50
6,765.98
15,760.50
30,851.36
40,535.78
33,946.22
18,339.9219,306.58
36,362.18
6,043.576,865.94
1,645.871,479.681,297.44
0.00
5,000.00
10,000.00
15,000.00
20,000.00
25,000.00
30,000.00
35,000.00
40,000.00
45,000.00
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Amount Raised (In Rs Crore)

55. 54
15 17
30
20
48
70
104
36
21
64
37
25
37
45
15
0
3
0
1
2
3
4
3
1
2
3
2 2 2
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
0
20
40
60
80
100
120
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Comaparison between Sucess & Failer IPO
Issue Succeeded Issue Failed

56. 55

57. 56
Since the calculated value of F is 19.70 which is greater than the table value of 2.77 at 5%
significance level, the null hypothesis is rejected and the alternative hypothesis is accepted.
Hence, it is concluded that the EPS position of selected banks differ significantly.
ANOVA: SINGLE FACTOR
SUMMARY
Groups Count Sum Average Variance
Column 1 15 612 40.8 652.4571429
Column 2 15 239146.02 15943.068 192854319.1
Column 3 15 584 38.93333333 610.2095238
Column 4 15 28 1.866666667 1.552380952
ANOVA
Source of
Variation
SS df MS F P-value F crit
Between
Groups
2849806576 3 949935525.3 19.70252578
7.62673E-
09
2.769430932
Within
Groups
2699978166 56 48213895.82
Total 5549784742 59
F-Test Two-Sample for Variances
15 1290.5
Mean 42.64286 16989.68
Variance 647.7857 189994397.3
Observations 14 14
df 13 13
F 3.4195E-06
P(F<=f) one-tail 0
F Critical one-tail 0.388059

58. 57
Since the calculated value of F is 1.0068 which is greater than the table value of
1.93 at 5% significance level, the null hypothesis is rejected and the alternative
hypothesis is accepted. Hence, it is concluded that the EPS position of selected
banks differ significantly.
ANOVA: TWO-FACTOR WITHOUT REPLICATION
SUMMARY Count Sum Average Variance
Row 1 4 1321 330 409970
Row 2 4 18695 4674 86873329
Row 3 4 6826 1706 11377262
Row 4 4 15803 3951 61988150
Row 5 4 30951 7738 237438183
Row 6 4 40682 10170 409802631
Row 7 4 34162 8541 286868010
Row 8 4 18418 4604 83850182
Row 9 4 19351 4838 93044574
Row 10 4 36494 9124 329753432
Row 11 4 6124 1531 9051063
Row 12 4 6920 1730 11723699
Row 13 4 1724 431 656283
Row 14 4 1574 393 524858
Row 15 4 1327 332 414425
Column 1 15 612.0000 40.8000 652.4571
Column 2 15 239146.0200 15943.0680 192854319.0617
Column 3 15 584.0000 38.9333 610.2095
Column 4 15 28.0000 1.8667 1.5524
ANOVA
Source of
Variation
SS df MS F P-value F crit
Rows 678456586.8 14 48461184.77 1.006850375 0.464671 1.935009
Columns 2849806576 3 949935525.3 19.7362682 3.89E-08 2.827049
Error 2021521579 42 48131466.17
Total 5549784742 59

59. 58
Finding
 If they have entered into a stock market through primary market they have a higher risk
compare to secondary market.
 Brand name is most important factor for investment in IPO
 In current situation People are more aware because of effectively advertisement about
new issue IPO.
 IPOs are oversubscribed as per the company’s objective of the issue their future plan,
market share & financial performance etc.
 The investor mainly investing in Auto, Banking as well as IT sectors.
 Investor are mainly investing in IPO for long time as well as long time.
 The major part of investor are entered in stock market through secondary market.
 The people information regarding upcoming IPOs investor know from their Broking
House.
 Many people invest their money in IPO from fundamental analysis.
 There are 60 people aware about the book building process.
 Most of the people invest their money from 30 to 40% in IPO
 There is 58 respondent believes that they feel problem with IPOs subscription
 The major parts of investor are investing in IPOs for the capital appreciation.
 There are almost the half of the respondent are giving their favorable views regarding
the IPOs gives the goods earning.

60. 59
SUGGESTION

61. 60
Suggestion
An investor must need to know the followings things before investing in the
IPOs.
About the company
Brand name
Past financial performance (at least the current year)
Market sharer
Objective of the issue
Know about future prospects & current trends of industry in which company
belongs to all companies like FMCG, Auto Mobile, Oil & Gas, etc.
Find out whether the company has a substantial business model
What are its business prospectus for the next two to three years?
Are market condition favorable for the company?
Investor should take advice from broker or from any adviser before investing
in the IPOs.

62. 61
Conclusion
 IPO is the best investment option at initial base risk is low at initial level.
 Maximum number of people are investing in the secondary market as compare to
mutual funds, insurance and Primary market.
 IPO is short terms gains purpose as well as for long term gain investment option.
 IPO’s are oversubscribing so many times, it shows that the large number of people are
interested in IPO.
 If anyone can entered in securities market he/she should invest in the IPOs, because it
is a safest investment Option as compare to secondary market.
 Secondary market is growing in rapidly because large number of the companies list at
the stock exchange every month.
 Most of the IPO’s have given very good returns at the time of listing at stock exchange.
 Share price are depending upon the market condition the market and various
government factors, government policies, and economics factors.

63. 62

64. 63
Bibliography
BOOKS:
Chandra Prasanna, “Financial Management Theory & Practice” – Indian Publishing Co.
Ltd., New Delhi – (1997)
C. R. Kothri, “Research Methodology” – WishwaPrakashan – (1998)
Ravi Kishor, “Financial Management”, Taxmann Publications, New Delhi – (2002)
I. M. Pandey, “Financial Management”, Vikash Publishing House, New Delhi.
Indian Journal of Finance – (2009)
Ambrish Gupta, “Financial Accounting for Management, Pearson Education, 3rd
Edition –
(2009)
NEWS PAPERS: Business Standards
JOURNAL: Indian Journal of Finance
WEB SITES:
 www.indianjournaloffinance.co.in
 www.eurojournal.com
 www.rbi.org.in
 www.nseindia.com
 www.bseindia.com
 www.moneycontrol.com
 www.sharekhan.com
 www.wekipedia.com
 http://www.chittorgarh.com/ipo/ipo_calendar.asp
 www.sebi.gov.in
 http://www.eurojournals.com/finance.htm

65. 64
Annexure
1) Are you Invest in Stock Market?
Yes No
2) In which sector are you Invest?
FMCG Reality
I.T Banking
Oil & Gas Auto
Other
3) What is your investment Horizon?
Short Time Medium Time Long Time
4) Which Market through are you invest in Stock Market?
Primary Market Secondary Market
5) From where you get information about upcoming IPO?
News Paper Friends
Magazine Broker House
Internet B’ness News Channel
Other
6) On which basis are you investing in IPO?
Fundamental Analysis Technical analysis
Broker Advice Other
7) Do you aware about the book building process?
Yes No

66. 65
8) How many percentage you keep for margin funding for IPO?
10-20 30-40
20-30 More than 40
9) Your Preference towards IPO is difference in all market condition?
Strongly Agree Strongly dis-Agree
Agree Dis-Agree
Natural
10) IPOs performance is dependent on Market condition?
Strongly Agree Strongly dis-Agree
Agree Dis-Agree
Natural
11) Do you feel, are there any problem with IPOs Subscription?
Yes No
12) Why you are investing in IPO?
Capital Appreciation Dividend
Voting Other

67. 66
13) If your answer ‘YES’ kindly opinion about the following statement regarding IPO,
please indicate your opinion in respect of the following statement by ticking.
Particular
Strongly
Agree Agree Neutrals Disagree
Strongly
Dis-
agree
Refund on IPO application is received
without delay
IPO allotment are credited to your D-mat
A/c before listing of the allotted share.
Reservation of 35% of IPO for retail
investors is adequate
Payment of 100% of the bid amount at the
time of applying for IPO’s is a Problem
14) If you have purchase security from the primary market, kindly indicate the problem
you have faced.
15) From your point of view IPO gives a good earning or Not?
Yes No
Thank You
Sr. No Problem Remark
1 Non availability of prescribed application from
2 Misleading advertisement
3 Misleading market rumors and gossip
4 Lack of reliable investment counseling facilities
5 Delayed/non-receipt of refund order
6 Delayed/non-receipt of refund certificates
7 Delayed listing of the securities with stock exchange
8 Offering securities under promoters quota or as firm
allotment on payment of unofficial premium