PRESENTATION ON

“A Study Of Valuation Of Issue Prices Of Indian IPOs”UNDERTAKEN AT

Shree Aditya securities

Submitted By

Apoorva thakkar

About Shree Aditya

Securities Shree Aditya Securities is a diversified financial services

group of India , offering a multiple of investment options.

Mr. Arvin Jain is the founder chairman of shree Aditya Securities. Aditya Securities incorporated in 1995 at Indore and it has 18 branches in All over India.

Shree Aditya Securities Group is a member of the Bombay Stock Exchange (BSE), National Stock Exchange (NSE) and the two leading Commodity Exchanges in the country: NCDEX & MCX.

Share Market Trading Back Office Work Mock Trading Tele Calling Marketing & sales

LEARNING

A STUDY OF VALUATION OF ISSUE PRICES OF INDIAN

IPOs

WHAT IS AN IPO ?

Initial Public Offering means the new offer of shares from a company which was previously unlisted.

An initial public offering (IPO), referred to simply as an "offering" or "flotation", is when a company (called the issuer) issues common stock or sharesto the public for the first time.

PRIMARY MARKET

The primary market is that part of the capital markets that deals with the issue of new securities.

PURPOSE

The first sale of stock by a private company to the public, IPOs are often A issued by smaller, younger companies seeking capital to expand

large privately-owned companies looking to become publicly traded.

VALUATION OF IPO’S

IPO valuation

By SEBIBy credit

rating agencies

By investors

Valuation :-

The Securities & Exchange Board of India (SEBI) has regulatory authority for stock market.

SEBI made some strict norms related to IPO listing for investors safety.

IPO grading can act as an additional decision-making tool for investors.

A Grading of IPOs in terms of their fundamental quality will enable investors steer clear of unsound offers.

By SEBI :- By credit rating agencies :-

India’s top 10 IPOs'

ONGC : 9500 crores

DLF : 9188 crores

Cairn India - 5788 crores

Tata Consultancy Services 5420 crores

NTPC – 5368 crores

Reliance Petroleum – 2700 crores

Idea Cellular – 2443 crores

Reliance Petroleum – 2172

Jet Airways – 1899 crores

Coal India – 2509 crores

OBJECTIVE OF THE

REPORT:

To know the process of Valuation of IPOs

To understand the Impact of miss-valuation on its performance

To know any changes in IPOs before and after recession

To understand the Benefits to investor from IPOs or dealing in secondary market

To know regulatory consideration with IPO

Methods of IPO process

To study about IPO ratings, documents, performance tracker and basis of Allotment.

FINDING

Majority of the respondents strongly agreed to take IPO as a beneficial tool.

50% respondents strongly agree that size of IPO is affected the listing.

Most of the investors don’t think that Market situation is always responsible for IPO valuation and pricing.

40% of the respondents are agreed that Pricing of the IPO’s are less dependable on ratings which is given by credit Rating agencies,

LIMITATIONS OF THE STUDY

The above study is limited only with the valuation of the IPO’s.

The study is conducted in Ujjain City only. Sample size is too small as the respondent size is

limited up to 50 for this study. Data available was not sufficient, there was lack of

availability of data as most of it was confidential for the companies.

Language is one of the constraint during questionnaire filling.

CONCLUSION

The research study is found that the listings of IPO in primary market is given higher return ,but is a risky instrument and short term investment. The motive of the study is to check the satisfaction level of the investor. The study concluded that investing in IPO is required A small business interested in going public must apply to the Securities and Exchange Commission (SEC) for permission to sell stock to the public. The SEC registration process is quite complex and requires the company to disclose a variety of information to potential investors.