Project Report Orignal

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Department of management studies

Summer Internship Project Report

ON

Invester perception about primary

market and its return

Submitted in the partial fulfilment of the requirements for the degree of

Master in Business Administration (integrated)

Under the Guidance of

Mr. Neera misra

Submitted To:

D!"A#$M!N$ %& MANA'!M!N$ $DI!* B+IM$A,

Submitted By:

Name - +IMAN+

%+I


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!nro//ment no-

A01N%2,!D'!M!N$

Acknoledgement is not only a ritual! but also an e"pression of indebtedness to all those ho ha#e

helped in the completion process of the pro$ect% One of the most pleasant aspects in collecting the

necessary and #ital information and compiling it is the opportunity to thank all those ho ha#e

acti#ely contributed to it% & e"press my deepest and sincerest gratitude and heart'felt thanks to my

mentor (r Neera$ misra for the in#aluable guidance and constant encouragement hich he e"tended

to me throughout my research pro$ect%

& ould also like to e"press my sincere thanks to the authors hose orks & ha#e had the pri#ilege to

consult and quote in my research pro$ect and to the faculty and staff of department of management

studies for their constant support%

& e"tend my gratitude to my respected parents! and my brothers ho ha#e been a constant source ofencouragement% & must not forget the generosity accorded by them%

)ast! but by no means the least! e ould like to pay obeisance to the Almighty God for bestoing

on us his blessings * also for being on our side hen the challenge seemed insurmountable * the

going as tough% Our unshakeable faith in +im alloed us to take this research to its logical

conclusion%


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TO WHOMSOEVER IT MAY CONCERN

This is to certify that (r% +imanshu ,oshi of -(S' -epartment of management studies! kumaun

uni#ersity Bhimtal (BA .integrated/ Batch 0122'23 has successfully completed his4 her summer

internship under the guidance of (r% Neera$ misra 5luster for duration of 6th eeks! from 0341340127

to 2841940127%

-uring his tenure ith us! e found him %%

;e ish him all the #ery best for future


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CERTI#ICATE

This is to certify that Mr$ Himanshu joshi(BA.integrated/ .0122'0123 Batch/ a student of has

-(S' -epartment of management studies ! kumaun uni#ersity bhimtal undertaken the pro$ect on

>in#esters perception about primary market and its return?% The questionnaire! data collection for

preparing the pro$ect has been carried out by the student in partial fulfillment of the requirements for

the aard of (BA.integrated/ under my guidance and super#ision%

& am satisfied ith the ork of Mr$ Himanshu %oshi

ate&

Mr$ Neeraj Mishra


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!3!0$I4! MMA#5


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$AB,! %& 0%N$!N$

Introduction 67897

#esearc: Design 9;8 ;876

Eindings 3F

(anagerial Decommendations 61

Bib/iograp:y 7?

Anne'ures ()*(+

Appen,i'*I uestionnaire 68


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IN$#%D0$I%N


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#INANCIA- MAR.ET

A financial market is a market in hich people and entities

can trade financial securities! commodities! and other fungible items of #alue at lo transaction

costs and at prices that reflect supply and demand% Securities include stocks and bonds! and

commodities include precious metals or agricultural goods%

Einancial markets facilitate:

The raising of capital

The transfer of risk

Crice disco#ery

Global transactions ith integration of financial markets

The transfer of liquidity

Types of financial market

Mone/ mar0et

As money became a commodity! the money market became a component of the financial markets for

assets in#ol#ed in short'term borroing! lending! buying and selling ith original maturities of one

year or less% Trading in the money markets is done o#er the counter and is holesale% Harious

instruments e"ist! such as Treasury bills! commercial paper! bankersI

acceptances! deposits! certificates of deposit! bills of e"change! repurchase agreements! federal funds!

and short'li#ed mortgage'! and asset'backed securities% &t pro#ides liquidity funding for the global

financial system% (oney markets and capital markets are parts of financial markets% The instruments

bear differing maturities! currencies! credit risks! and structure% Therefore they may be used to

distribute the e"posure%

#unctions o1 the mone/ mar0et

The money market functions are:

Transfer of large sums of money

Transfer from parties ith surplus funds to parties ith a deficit

Allo go#ernments to raise funds


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+elp to implement monetary policy

Capita" mar0et

5apital markets are financial markets for the buying and selling of long'term debt' or equity'

backed securities% These markets channel the ealth of sa#ers to those ho can put it to long'term

producti#e use! such as companies or go#ernments making long'term in#estments%

The &ndian capital market is an >emerging stock market% This implies that market is in the process of

transformation! groing in sie and sophistication% Se#eral liberaliation measures announced by the

&ndian go#ernment and securities market atchdog! S


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Crimary issues are used by companies for the purpose of setting up ne business or for

e"panding or moderniing the e"isting business%

The primary market performs the crucial function of facilitating capital formation in the

economy%

.B/ S


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transactions handled through its electronic trading system% &t is also one of the orld=s leading

e"changes .7rd largest in -ecember 0120/ for &nde" options trading%

243Nationa" stoc0 e'change

The National Stock


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&nterest Date Eutures

e5t

Detail -ebt (arket

;holesale -ebt (arket

5orporate Bonds

INI$IA, "B,I0 %&&!#IN'

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 e"change to facilitate trading in them%

Thus &CO is basically company=s first sale of stock to the public% Typically an &CO in#ol#es stocks

from young and often times! little knon companies% But occasionally ell established and ell

knon firms do go public% The #arious reasons for a firm to go public are:

&ncreasing company=s financial base


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-ist PriceQ it is the market price on the first day of trading after listing on stock e"change%

#air 7a"ueQ it is the price hich reflects the intrinsic #alue or true orth of a share%

I"% "#I0IN' M!0+ANIM

There are to methods for making initial public issue:'

#i'e, Pricing Metho,' here the company fi"es a price at hich the shares ill be offered

to the public%

4oo0 4ui",ing metho,' here the company stipulates a floor price or a price band and

lea#es it to market forces to determine the final price%

TA4-E 8$8

#eatures #i'e, Price process 4oo0 4ui",ing process

Pricing Crice at hich the securities are

offered4 allotted is knon in ad#ance

to the in#estor%

Crice at hich securities ill be offered4

allotted is not knon in ad#ance to the

in#estor% Only an indicati#e price range is

knon%

eman, -emand for the securities offered is

knon only after the closure of the

issue%

-emand for the securities offered can be

knon e#eryday as the book is built%

Pa/ment Cayment if made at the time of

subscription herein refund is gi#en

after allocation%

Cayment only after allocation%


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$+! "#%0! %& B%%1 BI,DIN'-

The &ssuer ho is planning an &CO nominates a lead merchant banker as a Ibook runnerI%

The &ssuer specifies the number of securities to be issued and the price band for orders%

The &ssuer also appoints syndicate members ith hom orders can be placed by the in#estors%

&n#estors place their order ith a syndicate member ho inputs the orders into the Ielectronic

bookI% This process is called IbiddingI and is similar to open auction%

A Book should remain open for a minimum of days%

Bids cannot be entered less than the floor price% Bids can be re#ised by the bidder before the issue closes%

On the close of the book building period the Ibook runner e#aluates the bids on the basis of

the e#aluation criteria hich may include ' Crice Aggression

&n#estor quality


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$5"! %& IN4!$%#

There are three kinds of in#estors in a book'building issue: the retail indi#idual in#estor .D&&/! the

non'institutional in#estor .N&&/ and the ualified &nstitutional Buyers .&Bs/%

D&& is an in#estor ho applies for stocks for a #alue of not more than Ds 211!111% Any bid e"ceeding

this amount is considered in the N&& category% N&&s are commonly referred to as high net'orth

indi#iduals% On the other hand &Bs are institutional in#estors ho possess the e"pertise and the

financial muscle to in#est in the securities market%

CHART 8$8


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!BI 'ID!,IN!

The primary authority for regulating &COIs is the S


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generally assigned on a fi#e'point point scale ith a higher score indicating stronger fundamentals

and #ice #ersa as belo:

&CO grade 2: Coor fundamentals

&CO grade 0: Belo'a#erage fundamentals

&CO grade 7: A#erage fundamentals

&CO grade 8: Abo#e'a#erage fundamentals

&CO grade : Strong fundamentals

B!N!&I$ %& I"%

Taking a company public through an &nitial Cublic Offer .&CO/ is a ma$or task for any entrepreneur%

The benefits of going public through &CO are:'

&t allos companies to ha#e greater access to the most substantial source of corporate

funding% The companies can also return to the market for additional equity through secondary

equity offerings%

&t helps the company to institute stock options for its employees and to attract more talent to

their organiation%

&t attracts media attention and helps in marketing the products of the company%

&t helps to e"pand business relationships of the companies ith their partners! suppliers!

debtors as ell as customers%

&t facilitates the mergers and acquisitions acti#ities of the companies and pro#ides them ith

the greater fle"ibility in raising finances%

Eor many entrepreneurs and top managers of companies! the process and e#ent of going public mark

the culmination of years of hard ork! public recognition of success and long delayed financial

reards% Going public gi#es an opportunity for their business groth! brand equity as ell as brings


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some legal responsibilities for them% &t in#ol#es sharing of onership of the company! business

opportunities as ell as the control o#er the companyIs future%

I"% "#I0IN'-

The study of &CO mispricing is salient because it raises important questions concerning market

efficiency and the e"istence of systematic stock patterns that can be employed by in#estors to

generate e"cess market returns% Under traditional definitions of market efficiency! asset prices!

including &CO prices should fully reflect all a#ailable and rele#ant information .Eama 2F61/% An

increasing body of empirical e#idence! hoe#er! suggests that &CO prices are not efficient as

e#idenced both in the short run and the long run% The speed of incorporation of ne information into

stock prices is critical to many central issues in financial research! such as market efficiency!

arbitrage! and market structure% The setting of the immediate aftermarket presents an opportunity to

in#estigate the issue hen little or no trading history e"ists% &n such a setting! in#estors are more

e"posed to ne information because they cannot obser#e the stock price beha#iour or the reactions to

pre#ious information signals%

&nitial public offerings .&COs/ of common stock! on a#erage! earn abnormally high initial returns in

general%

The initia/ abnorma/ return is defined as abnormal gains/losses of a new issue

relative to the oer price during the rst day of trading.

The un,er*pricing9o7erpricingis the difference beteen the offer price and the last traded price on

the first trading day%

One method of testing hether the offer price or the first closing market price is a better measure of

>true? #alue is to e"amine long'run returns% &f the first closing market price is an unbiased measure of

a firm=s fundamental #alue! then there should be no abnormal returns in the future% Se#eral recent

studies ha#e looked at the relationship beteen in#estor demand for &COs and aftermarket

performance of these firms% +anley .2FF7/ Specifically! stocks that are priced abo#e the initial filing

range perform #ery ell on the first day in spite of being offered at the higher price! hile stocks that

are priced belo the initial filing range do poorly on the first day% Thus! the final offer price

represents a partial ad$ustment to additional market information about in#estor demand recei#ed


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during the pre'issuing period% +er study clearly indicates a positi#e relationship beteen in#estor

demand and the first trading day performance of &COs%

O#erall! the &COs ith high in#estor demand ha#e large positi#e initial returns but negati#e longer'

run e"cess returns! hile the &COs ith lo in#estor demand ha#e negati#e initial returns but positi#e

longer'run e"cess returns% These results are not e"plained by information asymmetry hypothesis or

under'pricing .or mispricing/ hypothesis% Although the to hypotheses do not indicate a positi#e

relationship beteen in#estor demand and the initial returns! information asymmetry hypothesis nor

under'pricing hypothesis can successfully e"plain differences in long'run performance beteen high

demand &COs and lo demand &COs% &n#estor demand for an &CO is largely dri#en by the o#er'

optimistic and o#er'pessimistic reaction by in#estors to the information about the firm=s prospects

prior to offerings% 5onsequently! both high' and lo'demand &COs are not priced at intrinsic #alues in

early aftermarket trading% But! e#entually their true #alues are reflected in the e#olution of the pricing

process%

Specifically! a high'demand &CO! hich is due to in#estors= o#er optimism! is more likely to create a

speculati#e bubble% The speculati#e bubble may temporarily push the stock price abo#e its intrinsic

#alue! folloed by long'run price correction% As a result! a relati#ely high positi#e initial return ill

be folloed by a negati#e long'run return% On the other hand! since in#estors are more likely to

underestimate the prospects of the lo demand! these &COs ill e"perience relati#e lo returns on

the first trading day%

Why Go Public?

Basically, going public (or participating in an "initial public oering" or !# is the

process in which a business owned by one or several individuals is converted

into a business owned by many. t involves the oering of part ownership of the

company to the public through the sale of debt or more commonly, e$uity

securities (stoc%#.&oing public raises cash and usually a lot of it. Being publiclytraded also opens many nancial doors'

Because of the increased scrutiny, public companies can usually get

better rates when they issue debt.


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s long as there is mar%et demand, a public company can always issue

more stoc%. )hus, mergers and ac$uisitions are easier to do because stoc%

can be issued as part of the deal.

)rading in the open mar%ets means li$uidity. )his ma%es it possible to

implement things li%e employee stoc% ownership plans, which help to

attract top talent.

Being on a ma*or stoc% e+change carries a considerable amount of prestige.

n the past, only private companies with strong fundamentals could $ualify

for an ! and it wasnt easy to get listed.

)he internet boom changed all this. -irms no longer needed strong nancials

and a solid history to go public. nstead, !s were done by smaller startupssee%ing to e+pand their businesses. )heres nothing wrong with wanting to

e+pand, but most of these rms had never made a prot and didnt plan on

being protable any time soon. -ounded on venture capital funding, they

spent li%e )e+ans trying to generate enough e+citement to ma%e it to the

mar%et before burning through all their cash. n cases li%e this, companies

might be suspected of doing an ! *ust to ma%e the founders rich. )his is

%nown as an e+it strategy, implying that theres no desire to stic% around and

create value for shareholders. )he ! then becomes the end of the oad

rather than the beginning.

ow can this happen 0emember' an ! is *ust selling stoc%. ts all about

the sales *ob. f you can convince people to buy stoc% in your company, you

can raise a lot of money.

IPO : AVANTA;ES AN ISAVANTA;ES&

The decision to take a company public in the form of an initial public offering .&CO/ should not be

considered lightly% There are se#eral ad#antages and disad#antages to being a public company! hich

should thoroughly be considered% This memorandum ill discuss the ad#antages and disad#antages

of conducting an &CO and ill briefly discuss the steps to be taken to register an offering for sale to

the public% The purpose of this memorandum is to pro#ide a thumbnail sketch of the process% The


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reader should understand that the process is #ery time consuming and complicated and companies

should undertake this process only after serious consideration of the ad#antages and disad#antages

and discussions ith qualified ad#isors%

A,7antages o1 going pu5"ic&

Increase, Capita"

A public offering ill allo a company to raise capital to use for #arious corporate purposes such as

orking capital! acquisitions! research and de#elopment! marketing! and e"panding plant and

equipment%

-i6ui,it/

Once shares of a company are traded on a public e"change! those shares ha#e a market #alue and can

be resold% This allos a company to attract and retain employees by offering stock incenti#e

packages to those employees% (oreo#er! it also pro#ides in#estors in the company the option to trade

their shares thus enhancing in#estor confidence%

Increase, Prestige

Cublic companies often are better knon and more #isible than pri#ate companies! this enables them

to obtain a larger market for their goods or ser#ices% Cublic companies are able to ha#e access to

larger pools of capital as ell as different types of capital%

Va"uation

Cublic trading of a companyIs shares sets a #alue for the company that is set by the public market and

not through more sub$ecti#e standards set by a pri#ate #aluator% This is helpful for a company that is

looking for a merger or acquisition% &t also allos the shareholders to kno the #alue of the shares%

Increase,


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ascertainable price and after any lockup period these shares may be sold to the public! sub$ect to

limitations of federal and state securities las%

isa,7antages o1 going Pu5"ic&

Time an, E'pense

5onducting an &CO is time consuming and e"pensi#e% A successful &CO can take up to a year or more

to complete and a company can e"pect to spend se#eral hundreds of thousands of dollars on

attorneys! accountants! and printers% &n addition! the underriterIs fees can range from 7P to 21P of

the #alue of the offering% -ue to the time and e"pense of preparation of the &CO! many companies

simply cannot afford the time or spare the e"pense of preparing the &CO%

isc"osure

The S


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&f the shares of the companyIs stock fall! the company may lose market confidence! decreased

#aluation of the company may effect lines of credits! secondary offering pricing! the companyIs

ability to maintain employees! and the personal ealth of insiders and in#estors%

Vu"nera5i"it/

&f a large portion of the companyIs shares are sold to the public! the company may become a target for

a takeo#er! causing insiders to lose control% A takeo#er bid may be the result of shareholders being

upset ith management or corporate raiders looking for an opportunity% -efending a hostile bid can

be both e"pensi#e and time consuming%

Moti7es 1or IPO

One of the most common reasons for going public is to gain access to this market! hence e"pand a

company=s capital due to issuing ne shares% Eurther! many high'groth firms are often constrained

financially and need a ne ay to acquire capital% Along ith this! there is a time difference beteen

the time of in#estment and the time it takes to generate capital! therefore debt financing may not be

suitable%

According to this an &CO may be a better alternati#e! since you e#ade debt financing .+uyghebaert *

Han +ulle 011/% Cublicity: By going public! the company ill be analyed by financial institutions!

media! and se#eral other entities! hich ill make the company and its business operations more

knon% This can ha#e positi#e businesslike ad#antages! but if it is handled badly there is a chance for

incorrect interpretations and negati#e spreading of rumors about the company% Status: ;hen a

company goes public it usually raises the status of the company! especially rearding toards

international companies and media% &t can somehat be seen as a >sign of quality?%

Decruitment possibilities: (any companies ha#e seen an ad#antage hen recruiting staff after an

&CO% The reason is surely somehat psychological% The challenge and stimulation ith a continuous

e"ternal interest! is to many people a positi#e factor% This moti#e goes hand in hand ith the moti#es

of publicity and status%


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Onership for employees: One moti#e could be that possibility to make employees oners of the

company% The company can through different onership'programs offer the employees part'

onership% Eor a person ho belie#es in the company and in him'4herself! a positi#e personal

di#idend can be obtained%

Generation change: An &CO can help to sol#e problems ith a potential change of generations% The

heirs of family! hose fortune lies primarily in a company! may ha#e completely different interests

and plans for the future% An &CO facilitates the possibility to di#ide the @fortune= ithout ha#ing to

break up the company or sell it in its entirety%

2:at is t:e #egistration "rocess@

&oing public re$uires a 0egistration 1tatement which is a carefully crafted

document that is prepared by your attorneys and accountants. t re$uires

detailed discussions on information pertaining to'

Business product/service/mar%ets

2ompany nformation

0is% -actors

!roceeds 3se (ow are you going to use the money#

cers and 5irectors

0elated party transactions


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dentication of your principal shareholders

udited nancials

fter your registration statement is prepared, it is submitted to the 1ecurities

and 6+change 2ommission and various other regulatory bodies for their

detailed review. 7hen this process is completed, you and your management

team will do a "road show" to present your company to the stoc% bro%ers

who will then sell your stoc% to the public investors. ssuming they can

successfully sell your issue, you8ll receive your money.

)hen its simple, all you have to do is ma%e a lot more money with the

proceeds so as to increase the value of your, your teams and the primary

investor stoc%.

Carameters to $udge an &CO

Good in#esting principles demand that you study the minutes of details prior to in#esting in an &CO%

+ere are some parameters you should e#aluate:'

Cromoters

&s the company a family run business or is it professionally onedR


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Business Clans

5heck the progress made in terms of land acquisition! clearances from #arious departments! purchase

of machinery! letter of credits etc% A higher initial in#estment from the promoters ill lead to a higherfaith in the organiation%

Einancials

;hy does the company require the moneyR &s the company floating more equity than

requiredR ;hat is the debt componentR Keep a track on the profits! groth and margins of the

pre#ious years% A steady groth rate is the quality of a fundamentally sound company% 5heck the

assumptions the promoters are making and hether these assumptions or e"pectations sound feasible%

Disk Eactors

The offer documents ill list our specific risk factors such as the company=s liabilities! court

cases or other litigations%


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Jou should ha#e access to the brokers of the stock e"changes here the company ill be

listing itself%


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#!!A#0+ D!I'N


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The &ndian capital market has made significant progress in spreading equity culture and broad basing

the financial markets% Jet the capital market in &ndia has not been the sub$ect of in#estment research

to the e"tent of its counterpart in ad#anced nations% &n order to ha#e a proper insight into differentaspects of the problem under study! it is desirable to re#ie the studies conducted in the past%

,I$#!A$#! #!4I!2

I"% Market

&nitial Cublic Offering .&CO/ is the first sale of stock by a pri#ate company to the public

.Shantaraman 0116/% &nitial Cublic Offering .&CO/ in &ndia means the selling of the shares of a

company! for the first time! to the public in the countryIs capital markets% This is done by gi#ing to the

public! shares that are either oned by the promoters of the company or by issuing ne shares% There

are mainly to reasons hy a company comes out ith an &CO: either it can do so in the market

because it is in a good position or it is doing so because it needs to raise funds from the market% The

&CO pro#ides a fresh source of capital that is critical to the groth of the firm and pro#ides the

founder and other shareholders such as #enture capitalists a liquid market for their shares% Erom an

institutional in#estorIs perspecti#e! the &CO pro#ides an opportunity to share in the reards of the

groth of the firm .,anakiramanan! 011/% Thus it is important to understand the ob$ecti#es of the

firms= decision so that an in#estor is able to make the right choice%

Ditter .2FF9/! in his article >&nitial Cublic Offerings? sur#eys the market for &nitial Cublic Offerings%

&t discusses the process of going public! #aluation of &COs! book building! price stabiliation and

costs and benefits of going public% &t concludes that companies going public! especially young

companies face a market hich is sub$ect to sharp sings in #aluations% Cricing deals can be difficult!e#en in stable market conditions! because insiders presumably ha#e more information than the

potential outside in#estors%

Brealey .2F60/ in his book titled >Security Crices in 5ompetiti#e (arket? e#aluated the effect of

di#idend! C4< multiple! retained earnings! debt! splits and stock di#idends! mergers and acquisitions


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and listings on stock price mo#ements% &t concluded that though di#idend! C4< and retained earnings

all ha#e positi#e effect on share prices% Studies re#ealed that di#idends are #alued four times as

highly as retained earnings% Degarding debt! it says reasonable amount of corporate borroings ha#e

been shon to increase the #alue of common stock at least to the e"tent of reduction in corporate ta"

payments% &t further says that e#ents like splits and stock di#idends! mergers and acquisitions and

listing cannot bring about a permanent and orthhile impro#ement in share price%

5handra .2F6/ in his book named >Haluation of


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The study e"plains the #arious costs and benefits of going public% &t also analyed after effects of

decision to go public% &t says that &COs are folloed by loer cost of credit and increased turno#er in

control%

Arguments against &CO auctions come most stridently from in#estment banks% Their argument is that

since it is impossible to price issues accurately! underriters end up taking unquantifiable risk%

Additionally! to ensure sufficient in#estor interest it is appropriate to ha#e a conser#ati#e bias

toards under pricing% Another argument used is that if the &CO issuer is not orried about lea#ing

money on the table! hy regulators should orry since retail in#estor=s benefit from under pricing%

Thus book building results in under pricing &CO=s% Such a pricing bias leads to a scramble for

allotment% Under these circumstances! no matter ho #igilant or efficient the regulating agencies! it is

difficult if not impossible to stamp out rongdoing% This is particularly true in &ndia as e do not

ha#e national identity numbers! and our $ustice system finds it difficult to secure con#ictions

.Bhagati! 0113/%

Teoh et al .2FF9/ in their research papers >


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for #aluation of their &CO=s% Dules go#erning book building is co#ered in 5hapter M& of the Securities

and Haluing &COs? ha#e studied the pricing of &COs using comparable firm multiples% The use of

accounting information in con$unction ith comparable firm multiples is idely recommended for

#aluing &COs% They found that C4

firms ha#e only modest predicti#e ability ithout further ad$ustment% This is largely due to ide#ariation of these ratios for young firms ithin an industry% C4< multiples using forecasted earnings!

result in much more accurate #aluations than multiple using trailing earnings%

(ccarthy .2FFF/ in his article >Cricing of &COs: Science or Science Eiction? is of the #ie that &CO

#aluation is as much as an art as a science% Halues are based on se#eral factors: an issuer=s historical


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and pro$ected financial result #aluations of comparable companies in#estment banker=s assessment

of market conditions and in#estors demand for the ne issue% The in#estment banker de#elop an

offering price that is further influenced by factors such as most marketable price range ! the

percentage of company being sold and the stock market=s float% This article also discusses #arious

other issues relating to &CO pricing%

Ditter.2FF9/! in his article >&nitial Cublic Offerings? sur#eys the market for &nitial Cublic Offerings% &t

discusses the process of going public! #aluation of &COs! book building! price stabiliation and costs

and benefits of going public% &t concludes that companies going public! especially young companies

face a market hich is sub$ect to sharp sings in #aluations% Cricing deals can be difficult! e#en in

stable market conditions! because insiders presumably ha#e more information than the potential

outside in#estors%

)ory and Schert .0110/ through their paper >&S the &CO Cricing Crocess


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Harma .2FF9/ in his papers >Bank of &ndia: Cricing of &COs and &ndus&nd Bank: Haluation of &CO?

analysed #arious quantitati#e as ell as qualitati#e factors that go into pricing of an &CO! ith the

help of to case studies Bank of &ndia and &ndus&nd Bank and suggested a method to arri#e at

reasonable price band for the issue% +e regarded profitability ratio! yield ratio! e"pense and cost ratio!

and other efficiency parameters like business per employee and business per branch as quantitati#e

factors% +e grouped folloing factors into qualitati#e category branch netork! high profitability!

global presence! interest spread! NCA le#el! high adaptability%

Haluation of initial public offerings! &COs! occupies an important place in finance perhaps because it

pro#ides public capital market participants their first opportunity to #alue a set of corporate assets%

Haluation of &COs is also quite rele#ant from an economic efficiency perspecti#e: this is the first

opportunity that managers of such .usually young/ companies get to obser#e the price signals from

the public capital markets% Such signals can either affirm or repudiate management=s beliefs

regarding its future groth opportunities Q ith ob#ious implications for the real economy #ia

employment and corporate in#estment%.Bhagat! Dangan/

Berguland .2FF8/ in his paper >Cricing of &CO=s: A Simple (odel? presented a simple model for

pricing of &COs in hich pi#otal agent in pricing decision is underriter% &n this paper! underriter=s

decision problem is e"pressed in the form of simple loss function% The optimal offer price is

determined by the penalty that underriter is facing as a consequence of pricing mistake% &t says that

the pricing error i%e% under pricing or o#er pricing! ill alays be costly for underriters in terms of

loss of reputation and cost ill depend on the sie of pricing error% Einally the results on corporate

static analysis sho that under pricing is e"pected to increase ith an increasing sie in offering!

increase in uncertainty concerning demand! decrease in price elasticity of demand! and increase in

e"pected cost due to o#erpricing or decrease in e"pected cost due to under pricing%

Bachmann .0110/ in his research >Cricing of &CO=s hen &CO sie and &n#estment choice are


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acti#ities for hich DO& is highly dependent on firm=s quality and under in#est in acti#ities for hich

DO& is homogeneous across the firms% )astly! the model suggests that entrepreneur ho issues the

under#alued equity! commit proceeds from equity offering to particular in#estment strategy prior to

the &CO%

Narasimhan and Damana .2FF/ in their paper >Cricing of &COs: &ndian


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N!!D &%# $+! $D5

The folloing factors ha#e led to the need for conducting this research:

The in#estors normally hold financial assets for cash flo that they generate in the future%

The #aluation of bonds and preference shares is straightforard as the returns are constant and

certain% But such is not the case in case of equity #aluation% Thus fi"ing of an issue price is an

important task hich cannot be accomplished by mere guessork% The orth of equity has to be

quantified by taking into consideration #arious intangible factors pertaining to the company%

After the abolition of >5ontroller of 5apital &ssues? it has been the era of free pricing% But this has

created some problems of undue o#erpricing by the companies% Against this background of faulty

#aluation of the &CO the present research needs to be undertaken to identify the #arious factors that

go into &CO pricing%

Crimary markets are more risky than secondary markets as there is no pre#ious market! no stock price

benchmark and thus consequently more uncertainty%

&n case of an &CO! hat normally happens is that a company comes out ith an &CO! it is hea#ily

subscribed and ithin a month or e#en fe hours of listing! there are astonishing gains% Such a

potential for plutocracy and penury make capital market highly rearding! highly risky and

thoroughly irresistible for in#estors% As most of the in#estors ha#e no clue to the intricacies of

primary market! it is essential to identify and recommend #arious parameters for the guidance of the

in#estor%

&n the present scenario! ith the number of frauds and scams being committed such as falsification of

accounting statements! it is essential for the in#estors to ha#e some knoledge about the #arious

aspects of &CO issue%


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%B!0$I4! %& $+! $D5

The research ob$ecti#e can be broadly di#ided into the folloing:

9. 3nderstanding primary/ipo mar%ets.

:. 1tudy the wor%ing of primary mar%ets.

;. )o e+amine the investors perception about !8s.


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#!!A#0+ M!$+%D%,%'5

Measurement of t:e 4ariab/es

&n order to determine the relati#e influence there is alays a dependent #ariable and an independent

#ariable%

?. D!"!ND!N$ 4A#IAB,!

Issue price' the price at hich the shares are offered to the public%

Issue price to par 7a"ue' ratio of issue price and par #alue%

9. IND!"!ND!N$ 4A#IAB,!

Weighted Average Earning Per ShareQ The equity oners are the sole claimants to the net

earnings of the corporation after making payment of di#idend to the preference shareholders%

The


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firm by its shareholders are being used% DON; is e"pected to affect issue price in a positi#e

ay% &t is calculated for three years preceding the year of issue%

;here shareholders in#estment equity share capital preference share capital reser#es and

surplus' accumulated losses .if any/%

Size Q sie of the firm plays an important role in in#estment criterion% )arge companies

generally offer better in#estment opportunities than smaller ones% These companies by #irtue

of larger production occupy stronger and dominant position in the stock markets and thus cancommand high premium% The sie of the firm can be measured in many ays #i% turno#er!

paid up capital! capital employed! net sales! total assets etc% &n the present study sie is

measured ith the help of sales and total assets% This is so because sales and book #alue of

assets reflects the earning capacity of the firm to the in#estors%

GrowthQ )iterature on equity #aluation confirms that groth is a pre' requisite for long run

sur#i#al of the firm in an uncertain and constantly changing en#ironment% The groing

companies pro#ide e"cellent opportunities to the in#estors% Specifically! in the case of youngcompanies most of their #alue comes from groth opportunities% &n a groing company! an

increase in profits leads to continuous rise in rate of di#idend in future and frequent bonus

issue to in#estors% Thus an in#estor may prefer to subscribe to an &CO of a groing concern%

)ike in most empirical studies! groth is measured ith the help of sales and fi"ed assets%

;here Sy sales in the year 0120'0127

S" sales in the year 0122'0120


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;here Ay assets in the year 0120'0127! A" assets in the year 0122'0120

Leverage (L) Q Einancial le#erage is an important tool of financial planning because it

magnifies the residual profits that accrue to the equity shareholders in the fa#ourable

situation% &t refers to the mi" of debt and equity funds used to finance the firm=s acti#ities% A

mi" of debt equity mi" helps a company to charge a higher price% But if debt increases thereby

ad#ersely affecting issue price% Though different measures of le#erage ha#e been considered

by the researchers! but in the present study it is measured as:

;here -) deferred liabilities i%e% long term loans debt! C5 preference share capital!


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Under'pricing refers to the price run up of the &CO on the first day of trading% &t is also knon as the

initial return or first'day return of the &CO%

=n,er*pricing > 2#irst*,a/ c"osing price : O11er price39O11er price ? 8@@

The first'day closing pricerepresents hat the in#estors are illing to pay for the firm=s shares% &f the

offer priceis loer than the first'day closing price! the &CO is said to be underpriced and money is

left on the table for ne in#estors% Since e"isting shareholders settle for a loer offer price4proceeds

than hat they could ha#e got! money left on the table represents the ealth transfer from e"isting

shareholders to ne shareholders%

amp/e-

Sampling is an effecti#e step in collection of primary data and has a great influence on a quality of

results% The sampling plan includes the population! sample sie and sampling design hich tell us

about the #arious data collection methods% Eor the sake of simplicity and the type of sample hich

forms part of the study! con#enient sampling method ill be used for the collection procedure%

Data 0o//ection

-e7e" I& To gauge the in#estor=s perception! a questionnaire as administered to the in#estors ho

ha#e in#ested in &COs% As mentioned pre#iously the sampling for this study is based on con#enience

and $udgmental techniques% The total sample sie as 61% The sample sie calculation as based on

the number of in#estors ho ha#e in#ested in &CO=s at any time in the past% -ue to the limited time

a#ailable and the restriction regarding the type of in#estors! a relati#ely smaller sample sie as

chosen%

-e7e" II& Only secondary sources of data ill be used to collect information% &t refers to a data that is

already a#ailable and does not need to be collected ith the help of a questionnaire% &t is collected

through published data that is already a#ailable in books! magaines! reports! publications%
http://www.qfinance.com/dictionary/closing-pricehttp://www.qfinance.com/dictionary/offer-pricehttp://www.qfinance.com/dictionary/closing-pricehttp://www.qfinance.com/dictionary/offer-pricehttp://www.qfinance.com/dictionary/closing-pricehttp://www.qfinance.com/dictionary/offer-pricehttp://www.qfinance.com/dictionary/closing-pricehttp://www.qfinance.com/dictionary/offer-price


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-ata ould also be collected from prospectus! offer documents! annual published reports! interim

financial reports! ebsites of the companies under the study! nespapers! magaines! $ournals etc%

The last 21 &COs that ha#e been issued till ,une 03 0127 ill be used to collect their &CO information%


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-ist o1 some recent ipos &

NA(< OE

&CO

OC


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Data Ana/ysis Met:ods

To obser#e and probe into the perceptions of the in#estors about primary market the data collected by

means of the sur#ey questionnaire as coded and analysed after the responses of the respondents

ere tabulated and plotted on charts%All possible efforts ere made to gather information in some

rational ay to remo#e biasness%

,IMI$A$I%N %& $+! $D5

;hile conducting the study certain hurdles4obstacles ere encountered% These ere due to the

limitations of the study hich are as follos:

Since certain parameters had to be used to select the sample sie from the desired population!

it led to a selection of a #ery small sample hich in turn as not totally an accurate

representati#e of the gi#en population%

Stock markets are highly #olatile in nature and thus they get affected e#en by the minutest of

happenings% Therefore in the case of further studies it is quite a possibility that outcome might

not be the same as the original study%

;hile applying sampling technique! con#enience sampling as used to select the sample

from the gi#en population% A ma$or draback of con#enience sampling is that the results in

this case are not generalied hence they cannot be duplicated in case the study is replicated in

the future%


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DA$A ANA,5I

ANDIN$!#"#!$A$I%N


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D!M%'#A"+I0 "#%&I,! %& $+! #!"%ND!N$-

'!ND!#-

The respondents consisted of both males and females% Out of the total of 61 respondents! 88 ere

male that comprised of 30%F percent of the total population and the rest 03 ere females hich as

76%2 percent of the total sample%

TA4-E B$8& ;ENER

;en,er #re6uenc/ Percent

(ale 88 30%F

Eemale 03 76%2

Total 70 100

A'!-

The Age as grouped into three categories% The ma"imum respondents i%e% 70 in#estors lie in the agegroup of 2 to 71 years comprising of 8%6 percent of the total population% Besides that! 09 people lei

in the age group of 72 to 8 years and the rest 21 lie in the age group of 83 to 31 years forming 28%7

percent of the total population%

TA4-E B$)& A;E

Age #re6uenc/ Percent

2'71 70 8%6

72'8 09 81%1

83'31 21 28%7

Total 70 100


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"#%&!I%N-

&n terms of profession! the ma$ority of the sample comprises of professionals ho form 89% percent

of the total population% This is folloed by Go#ernment


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DA$A ANA,5I

&A0$%# A&&!0$IN' I"% "!#0!"$I%N

The respondents ere asked their perception about these factors ith options ranging from strongly

disagree to strongly agree% The folloing bar charts efficiently summarie the outcome of the

qustionnaire% &t can be seen that the in#estors belie#e that only fi#e factor responsible for their

decision of in#esting in an &CO%

The fi#e factors that influence the in#estment decision of the in#estors are:

5orporate &mage

Cresent (arket 5onditions

Crice

Cerformance of Cre#ious &COs

Sie


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(i) 0orporate Image-

The folloing chart depicts the &n#estor=s perception about the corporate image of the company% &t

can be seen that 8F out of 61 respondents belie#e that the corporate image of the company is an

important criteria hen deciding o#er in#esting in a company=s &CO% The in#estors ho disagree are

$ust 3! thus indicating that corporate image is indeed an important criterion for most%

CHART B$8


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(ii) Members of t:e Board-

The chart depicts the influence that the members of the company i%e% the Board of -irectors ha#e on

the decision of the in#estor to in#est in that particular company% The chart shos that the members do

not ha#e much influence on the decision of the in#estor% The ma$ority of the sample either disagrees

or do not ha#e any opinion about this factor%

CHART B$)


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(iii) "resent Market 0onditions-

The present market conditions refer to the e"isting situation of the stock market and the economy as a

hole% The folloing chart shos that the sample agrees that the present market conditions play an

important role in the decision of the in#estor% Almost 99 percent of the sample agrees that present

market conditions are important hen deciding o#er the in#estment in an &CO%

CHART B$B


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(iv) "erformance of "revious I"%s-

The performance of pre#ious &CO=s seem to ha#e a considerable impact on the in#estor=s decision%

The folloing chart shos that a ma$ority of the sample agrees that they keep in mind the

performance of pre#ious &COs that ha#e come out in the recent past before in#esting in a ne &CO%

Almost 91 percent of the population agreed upon the importance of this factor%

CHART B$


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(v) iCe of t:e I"%-

The folloing chart shos the in#estor=s #ie regarding the sie of the &CO issue and its impact on

their in#estment decision% &t can be seen that a ma$or portion of the population i%e% around 1 out of

the 61 respondents agree that sie does play a ma$or role in &CO in#estment%

CHART B$+


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(vi) I"% versus econdary Market-

&n &CO #ersus the Secondary market i tried to gauge the preference of the in#estor beteen these to

markets% &t can be seen that a ma$ority of the respondents either do not ha#e any preference or they

mainly disagree% This means that they prefer to in#est in secondary markets rather than in &CO=s%

CHART B$D


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(vii) %bective of t:e Issue-

&n measuring the perception of the in#estor=s on the ob$ecti#e of raising an &CO it can be clearly seen

that the ma$ority of the sample agrees that they do keep this factor in mind% This means that the

in#estor is interested in knoing the future plans of the company and ho is it going to use the

in#estor=s money and generate returns%

CHART B$(


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(viii) %er "rice-

The folloing chart shos that the price of the &CO has a considerable impact on the decision of the

in#estor% 91 percent of the sample agrees that the price of the public issue helps them determine

hether they ant to in#est in the public issue or not%

CHART B$


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0%M"A#I$I4! #!,A$I%N+I" %N $+! BAI %& DA$A

0%,,!0$I%N

#e/ations:ip of Average Annua/ Investment Eit: Age

CHART B$F&

The abo#e chart shos the relationship of the a#erage annual in#estment ith the age% &t can be

clearly seen that the ma"imum number of in#estors lie in the category of 2' 71 years% This is

because the youngsters ha#e eal to earn more and they tend to be more speculati#e in in#esting%

+oe#er! since their disposable income is less and they generally ha#e financial responsibilities they

tend to in#est in lesser in#estment brackets% ;e also see that respondents lying in the age group of

81'31 years in#est in higher in#estment brackets because most of them are rein#esting the

in#estments they had made earlier or ha#e higher disposable income at hand%


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#e/ations:ip of Average Annua/ Investment Eit: "rofession

CHART B$8@:

The abo#e chart shos the relationship of a#erage annual in#estment ith the profession of the

respondents% &t can be seen that ma"imum in#estment is made by professionals as they are generally

more educated and ha#e a limited salary hich moti#ates them for higher returns% Since they ha#e a

limited disposable income they generally in#est in loer amounts% &t can also be seen that the people

ho in#est in higher amounts are businessmen or self employed people% This is because they ha#e

higher earnings and therefore more disposable income% Student in#estors are generally those ho are

ne in the market and illing to try out their luck% Since they do not ha#e an income of their on

they generally use their parents= money and therefore can in#est in loer in#estment brackets only%

Go#ernment employees also include retired army personnel ho ha#e large ancient properties and

ha#e huge incomes from pension and other sources% +ence! they are illing to in#est in larger

amounts as shon by the chart%


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#e/ations:ip of Average Annua/ Investment Eit: !ducation

CHART B$88&

The abo#e chart shos a comparati#e relationship beteen education and the a#erage annual

in#estment made by the respondents% The chart shos that people ho in#est the most in all le#els of

in#estment bracket are post graduates folloed by graduates% This can be attributed to the fact that

since &CO issue is completely ne in the market so only ell educated people ho ha#e knoledge

about the company and its orking plus the knoledge about the stock markets can in#est in these%

The rest of the in#estors ho in#est in stock markets generally do so on the basis of market trends or

their intuition%


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#e/ations:ip of Average Annua/ Investment Eit: 'ender

CHART B$8)&

The comparati#e relationship of Gender ith a#erage annual in#estment has been summaried in the

abo#e graph% &t can be seen that males generally tend to in#est in higher amounts as they are more

speculati#e% ;omen! on the other hand! in#est in moderate amounts% This can also be due to the fact

that omen generally are homemakers or e#en if they earn do not ha#e large amounts to spare% &t can

also be seen that a large number of men in#est in loer in#estment brackets this is because they ha#e

a lot of financial responsibilities and can only spare a small amount for speculati#e purposes%


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#e/ations:ip of Average Annua/ Investment Eit: 0orporate

Image

TAB)< 7%: A#erage &n#estment Annually V 5orporate &mage 5ross tabulation

A7g Annua" In7estment

2Rs$3

isagree Neither ,isagree

nor Agree

Agree Strong"/

Agree

Total

8@@@@*+@@@@ 1 9 00 3 39

+@@@@*8@@@@@ 3 22 0 24

8@@@@@Ga5o7e 2 2 6 2 10

Total 6 15 40 9 70

CHART B$8B&

The abo#e relationship of the a#erage annual in#estment ith the corporate image shos that

in#estors in#esting in the bracket of 21111 to 1111 are the people ho ha#e the ma"imum impact of

corporate image on their in#estment decision% 00 out of 61 respondents belie#e that corporate image

of a company is an important criteria for them% The people in the in#estment bracket of 1111 to

211111 also agree to this%


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#e/ations:ip of Average Annua/ Investment Eit: "resent

Market 0onditions

TAB)< 7%3: A#erage &n#estment Annually V Cresent (arket 5ondition 5ross tabulation

A7g annua" In7estment isagree Neither isagree

nor Agree

Agree Strong"/

Agree

Total

8@@@@*+@@@@ 2 7 00 21 36

+@@@@*8@@@@@ 0 0 2 24

8@@@@@Ga5o7e 1 1 10

Total 3 5 42 20 70

5+ADT 7%28

The relationship of present market conditions ith the a#erage in#estment shos that in#estors

in#esting in the bracket of 21111 to 211111 laid emphasis on the present market conditions hile

deciding on in#esting in a ne public issue% +oe#er! in#estors in#esting in large amounts pay pretty

much regard to this aspect hile in#esting as their amount of in#estment is high and a lot of risk is

in#ol#ed% Around 30 people agreed that they consider the present market conditions before making an

in#estment in a ne public issue%


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#e/ations:ip of Average Annua/ Investment Eit: iCe

TAB)< 7%6: A#erage &n#estment Annually V &CO Sie 5ross tabulation

A7g annua"

In7estment

Strong"/

isagree

isagree Neither

isagree nor

Agree

Agree Strong"/

Agree

Total

8@@@@*+@@@@ 7 7 7 03 2 36

+@@@@*8@@@@@ 2 0 9 22 0 24

8@@@@@Ga5o7e 1 0 1 6 2 10

Total 4 7 11 44 4 70

5+ADT 7%2

The sie of an &CO hen compared ith the a#erage annual in#estment made by the in#estors shos

that all the respondents in#esting in all income brackets gi#e a considerable importance to this aspect%88 respondents in total agreed on the importance of sie being a criterion of in#estment hile 22

people ere indifferent about it% Thus! it can be safely concluded that sie does play an important role

in influencing an in#estor%


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#e/ations:ip of Avg. Annua/ Investment Eit: "erformance of

"revious I"%s

TAB)


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market% &t can be seen that around 6 people agree that they see the performance of pre#ious &CO=s

before in#esting in a ne one%

#e/ations:ip of Average Annua/ Investment Eit:

"erformance 0riteria

5+ADT 7%26

The abo#e chart shos the Cerception of the people hile measuring the performance of the

company coming out ith a public issue% &t shos a comparati#e relationship beteen the in#estment

made by the in#estors and their criteria for $udging the performance of the company% &t can be

obser#ed that the three categories of in#estors on the basis of in#estment amounts! gi#e ma$oremphasis on the groth of the firm% &t needs to be noted that the in#estors in#esting the highest

amounts of money usually base their decisions on the groth and profits! hile those in the loest

in#estment bracket base their decisions on groth and do not gi#e ma$or emphasis on the number of


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years! the company has been in business ith! hile it being a ma$or parameter for middle

in#estment bracket%


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&INDIN'

AND

''!$I%N


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&INDIN'-8

After the findings ere obtained! they ere used to reach the conclusions of the study% The #arious

conclusions are as follos:

;hen in#esting in &COs! in#estors generally consider fi#e main factors i%e% the corporate

image! sie! performance of pre#ious &COs! price and present market conditions%

(ales generally ha#e a tendency to in#est in smaller amounts hereas females are likely to be

more speculati#e%

Ceople in the age group of belo 71 in#est in small and medium amounts .belo 211111/ and

people abo#e the age of 8 tend to in#est in higher amounts%

&t can be obser#ed that the three categories of in#estors on the basis of in#estment amounts!

gi#e ma$or emphasis on the groth of the firm% &t needs to be noted that the in#estors

in#esting the highest amounts of money usually base their decisions on the groth and

profits! hile those in the loest in#estment bracket base their decisions on groth and do

not gi#e ma$or emphasis on the number of years the company has been in business! hile it

being a ma$or parameter for middle in#estment bracket%

&t can also be concluded that most of the in#estments is done by in#estors ha#ing either

graduate or post graduate qualifications%

1ince the second day to the fth day, the < stoc%s which were underpriced

did not go below the oer price even for once, thus indicating the direction

of price movements. =i%ewise, the > overpriced stoc%s could not manage

to go beyond the oer price.


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#!00%M!NDA$I%N-

+istory of &ndian capital market is replete ith incidents of frauds committed by unscrupulous

issuers and fly by night operators% These issuers play ith the sentiments of in#estors and raise

substantial sums of money ithout $ustifiable in#estment proposals% These issuers! hen unable to

fulfill promises made to in#estors elope in obli#ion! lea#ing in#estors high and dry% &n#estors in this

orld must take care of their on interests% Eor the guidance of the in#estors some of the suggestions

hich emerge from the study are:

The in#estors should look into the #ariables hich make a company fundamentally strong

before taking any concrete decisions%

&t as also obser#ed during the course of the study that merchant bankers and accountants

possess an art and tendency of manipulating accounting figures and present inflated results%&n#estors should be cautious and should see that these ratios are calculated on the basis of

correct data%

The in#estors are ad#ised not to take figures at full #alue% Often the companies paint a rosy

picture of their future earnings at the time of making public issues% The in#estors should not

be sayed aay by these forecasts% A degree of reser#ation and conser#atism is alays good

at the time of in#estment in &CO=s especially of ne companies%

An in#estor should not ha#e herd mentality and should in#est into &CO only hen he is

satisfied ith orking and financial strength of the company% +e should also look into

qualitati#e factors like promoters= strength! future prospects of the company! risk factors and

industry outlook before subscribing to an &CO%

The companies coming out ith a public issue should stri#e to achie#e a good corporate

image for their company as it is one of the important criteria for an in#estor hile deciding on

in#esting in an &CO%

The present market conditions also ha#e considerable impact on in#estors so the timing of

coming out ith a public issue should also be e#aluated carefully%

The groth of the company is one of the most important $udging criteria for a company=sperformance therefore the company should make sure it pro$ects a good groth rate before

coming out ith a public issue%

BIBI,%'#A"+5


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We5sites&

%nseindia%com

%economictimes%com

%smcindiaonline%com

%moneycontrol%com

%chittorgarh%com

%ipo%org

%indianipoblog%com

%allipo%com
http://www.nseindia.com/http://www.economictimes.com/http://www.smcindiaonline.com/http://www.moneycontrol.com/http://www.chittorgarh.com/http://www.ipo.org/http://www.indianipoblog.com/http://www.allipo.com/http://www.nseindia.com/http://www.economictimes.com/http://www.smcindiaonline.com/http://www.moneycontrol.com/http://www.chittorgarh.com/http://www.ipo.org/http://www.indianipoblog.com/http://www.allipo.com/


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ANN!3#!


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A""!NDI3 8 I

F!$I%NNAI#!

Please answer the following questions by ticking on the appropriate option.

?. 5ou are

?ale -emale

9. 5our Age

9@A; yrs ;9A4@ yrs 4CAC yrs bove C yrs

. obG "rofession

1tudent &ovt. !rofessional Business/6mployee 1elf 6mployed


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Dears in 1iEe &rowth rate ?ar%et share

Business

!rots

7. 2:at kind of industryGsector Eou/d you /ike to invest in@

il/6nergy -?2& )elecom )1ector

thers

;. $:e corporate image of t:e company :as an impact on your investment

decision 1trongly disagree 1trongly disagree 5isagreeFeither agree gree 1trongly agree

nor disagree

H. $:e siCe of t:e issue :as an impact on your investment decision

1trongly disagree 5isagree Feither agree gree 1trongly

agree

nor disagree

?6. $:e members of t:e Management :ave an impact on your investment

decision

1trongly disagree 5isagree Feither agree gree 1tronglyagree

nor disagree

??. $:e price of t:e I"% :as an impact on your investment decision


nor disagree

?9. $:e obective of raising t:e I"% :as an impact on your investment

decision


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nor disagree

?. 5ou prefer to invest in I"%s over secondary market1trongly disagree 5isagree Feither agree gree 1trongly agreenor disagree

?


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Project Report Orignal

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Transcript of Project Report Orignal