This document provides an overview of initial public offerings (IPOs) in the Indian capital market. It discusses key aspects of IPOs like the book building pricing mechanism, price bands, types of investors, and the role of merchant bankers. Data on the number and issue price of IPOs from 2010-2015 is presented, showing a decline after 2010-2011 followed by an increase in 2015. Recent IPOs in the Indian market are also listed.

1. METAS ADVENTIST COLLEGE
• NAME : Dhruv .M. Dobariya
• CLASS :TY-BBA (B)
• ID no. : D-171
• University no. : B1400091(FINANCE)
• Topic : A Study of recent IPO’s in
Indian Capital Market

2. INDUSTRY PROFILE

3. INTRODUCTION
• Market exists to facilitate the purchase and sale of goods and services.
• The financial markets exists to facilitate sale and purchase of financial instruments
and comprises of two major market, capital market and money market
1. Capital market : Capital market mainly deals in medium and long-term
instruments (maturity more than a year)
2. Money market : Money market deals in short-term instruments
(maturity up to a year).

4. Segments of Capital Market
• Capital market consists of
1. Primary Market : It is one where issuer contacts directly to the public at large in
search of capital.
2. Secondary Market : In this the investors buy/sell securities through stock
exchanges.
• Stock exchange
They are the physical locations where stocks are bought and sold.
Mainly in India there are two main stock exchange :-
1. Bombay Stock Exchange (BSE)
2. National Stock Exchange (NSE)

5. COMPANY PROFILE

6. Motilal Oswal Financial Services ltd.
• NAME :MOTILAL OSWAL FINANCIAL SERVICES LTD.
• REGISTERED OFFICE :Palm Spring Centre, 2nd
Floor, New Link Road, Palm
Court Complex, Malad (W), Mumbai -400064
• NUMBER OF BUSINESS LOCATION :1,727
• NUMBER OF CUSTOMERS :829,974 (As On 31st
December 2014)
• SURAT BRANCH OFFICE :2006 B, Mezzanine Floor, 21st
Century Business
Center, Ring Road, Surat- 395002
• NUMBER OF EMPLOYEES :(Surat Branch)27

7. • HISTORY
Motilal Oswal Securities Ltd. (MOSL) was founded in 1987 as a small sub broking unit,
with just two people running the show.
Mr. Motilal Oswal and Mr. Raamdev Agrawal laid the foundation for Motilal Oswal
Financial Services Ltd. (MOFSL) and initially conducted business as a sub broking
firm.
• CURRENT SCENARIO
Today Motilal Oswal is well diversified financial services firm offering a range of
financial products and services such as Private Wealth Management, Retail Broking
and Distribution, Institutional Broking, Asset Management, Investment Banking,
Private Equity, Commodity Broking, Currency Broking and Principal Strategies.

8. THEORITICAL ASPECTS

9. Initial Public Offerings
• An initial public offering is a specific case of public issue; it
is the first equity offering by a company to the public at
large. The shares are then listed on the stock exchange to
facilitate trading in them. Thus IPO is basically company’s
first sale of stock to the public. Typically an IPO involves
stocks from young and often times, little known companies.
But occasionally well established and well known firms do
go public.

10. IPO Pricing Mechanism
• Fixed Pricing Method - where the company fixes a price at which
the shares will be offered to the public.
• Book Building method - where the company stipulates a floor
price or a price band and leaves it to market forces to determine the
final price.
Majorly used method today is book building method

11. BOOK BUILDING
• “Book building” is a method of marketing the shares of a
company whereby the quantum and the price of the
securities to be issued will be decided on the basis of the
‘bids’ received from the prospective shareholders by the
lead merchant bankers. According to this method, share
prices are determined on the basis of real demand for the
shares at various price levels in the market.

12. PRICE BAND OF IPO
• A value-setting method in which a seller indicates an upper
and lower cost range, between which buyers are able to
place bids. The price band's floor and cap provides guidance
to the buyers. This type of auction pricing technique is
often used with initial public offerings (IPOs).

13. Types Of Investors
There are mainly four type of investors:
1. The retail individual Investor (RII).
2. The non-institutional Investor (NII).
3. The Qualified Institutional Buyers (QIBs).
4. High Network Investors(HNIs).

14. MERCHANT BANKERS(key role)
• The primary role of a merchant banker is to act as a bridge
between the organization and the investors. Firstly, the
merchant banker should have a brand image in the market.
They should have the capability and the experiences to
handle a large-scale IPO.They are hired by promoters to get
them money from the markets the most amount of money
for the least dilution of equity possible. Simultaneously,
they also find out the risk management strategies for the
company since risks and ventures are two sides of the same
coin.

15. DATA ANALYSIS

16. Year v/s Issue Price Chart as on
20/05/2015

17. Year v/s no. Of issues as on
20/05/2015

18. CONCLUSION
• Fund raising through the initial public offering saw tremendous
changes in recent few years.
• The basic trend noticed was a steep decline in fund raising after 2010
to 2011 and it carried on the same flow next 3 years .
• Considering the bad figures till 2014 again 2015 is with a change in
trend with a good public raising seen in first quarter of financial
year ,well the predictions say that 2015 may script a good amount
of initial public offerings.

19. List of current IPO’s
• Adlabs Entertainment Ltd IPO
• Ortel Communication Ltd IPO
• Inox wind ltd IPO
• VRL Logistic IPO
• Manpasand beverages IPO

20. THANK YOU