Initial Public Offering _IPO_ by ashark256

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									 CHAPTER- I
INTRODUCTION
INTRODUCTION

An initial public offering (IPO), simply refers as an "offering" or "flotation", when a company
(called the issuer) issues common stock or shares to the public for the first time. They are often
issued by smaller, younger companies seeking capital to expand, but can also be done by large
privately-owned companies looking to become publicly traded.

In an IPO the issuer may obtain the assistance of an underwriting firm, which helps it determine
what type of security to issue (common or preferred), best offering price and time to bring it to
market.

An IPO can be a risky investment. For the individual investor it is tough to predict what the stock
or shares will do on its initial day of trading and in the near future since there is often little
historical data with which to analyze the company. Also, most IPOs are of companies going
through a transitory growth period, and they are therefore subject to additional uncertainty
regarding their future value.

Capital market is an essential pre for industrial and commercial development of a country.
Capital market refers to the institutional arrangement which facilitates the borrowings and
lending of long term fund. capital market divided into two parts they are primary and secondary
market.Primary market also known as new issue market. It represents primary market where new
securities i.e. shares or bonds that have never been previously offered. Are sold the importance
of this study is analyzing the IPO scrip’s during the year 2006 to 2010. This study based on
differences of Issue price and LTP. In order to whether the IPO’s are overpriced or under priced.
The the gain or loss.The study continued based on the only 2 parameters they are Issue price and
LTP. The differences of LTP & Issue price we can describe the is overpriced or under priced.
Not other parameters considered. This study shows that sector wise scrip’s are overpriced or
under priced.
                        In how gives the benefits and given the guidelines and suggestions to the
investor. Before selecting a company the investor should think about the company. A good
investor should diversify and reduces his risk by investing in different securities. Primary market
returns are very attractive in short period especially on the day of listing. But investor in IPO’s
should take wise decision in choosing the best company.



Definition of 'Initial Public Offering - IPO'
The first sale of stock by a private company to the public. IPOs are often issued by smaller,
younger companies seeking the capital to expand, but can also be done by large privately owned
companies looking to become publicly traded.

In an IPO, the issuer obtains the assistance of an underwriting firm, which helps it determine
what type of security to issue (common or preferred), the best offering price and the time to bring
it to market.

Also referred to as a "public offering".




OBJECTIVES THE STUDY:
1. The objective of doing this project is mainly to make a study of trends in primary market from
2006-2011 with special reference to LTP (Last Traded Price) and Issue Price.
2. To examine the difference between LTP and Issue Price of various scraps in different sectors.
3. To assess whether the Issue Price are over priced or under priced based on difference between
LTP and Issue Price.
4. To examine gain or loss to the investor based on the above study.



SCOPE OF THE STUDY:
   1) The study covers only NSE listed securities of primary market.
   2) Only LTP and Issue price are taken into consideration for judging whether the scrip’s are
       under priced or over priced not considering other parameters.
   3) The study covers the period from year 2006-2011 only
   4) Study covers randomly selected scrip’s under various sectors.
METHODOLOGY OF THE STUDY:
 The data collection methods include both primary and secondary collection methods.

 Primary Data: This method includes the data collected from the personal interaction
 with authorized members of ICICI.

 Secondary Data: The secondary data collection method includes:
 The lecturers delivered by the superintendents of respective departments.
 The brochures and material provided by ICICI.
 The data collected from the magazines of the NSE, economic times, NSE website, etc.
 Various books relating to the investments, capital market and other related topics.



TOOLS USED FOR ANALYSIS:
 1) TABULATION: A Table is a systematic arrangement of statistical data in rows and
 columns. Rows are horizontal arrangements whereas columns are vertical. Tabulation is a
 systematic presentation of data in a form suitable for analysis and interpretation.
 The tables used are as follows:
 a) One way table: It presents only one characteristic and hence in answering one or more
     independent questions with regard to those characteristics.
 b) Two-way table: It contains sub divisions of a total and is able to answer two mutually
     dependent questions.


 2) DIAGRAMETIC AND GRAPHICAL REPRESENTATION OF DATA: A picture is
 worth a thousand words. The impression created by a picture has much greater impact than
 any amount of detailed explanation. Statistical data can be effectively presented in the form
 of diagrams and graphs. Graphs and Diagrams make complex data simple and easily
 understandable. They help to compare related data and bring out subtle data with amazing
 clarity.
 The Diagram used are as follows:
  a) Bar diagrams: Bar diagrams are used specifically for categorical data or series. They
     consist of the group of equi-distant rectangles, one for each group or category of data in
     which the values of magnitudes are represented by length or height of rectangles.
  b) Sample Bar diagram: It is used of comparative study of two or more aspects of a single
     variable or single category of data.


LIMITATIONS OF THE STUDY:


  A good report sells the results of the study. But every project has its own limitations. These
  limitations can be in terms of
  1) The project doesn’t study the whole primary market due to time availability and
    course requirement.
  2) Project doesn’t consider whole issues under each sector due to time limitation. It
    takes Into consideration randomly selected issues
  3) Limited to a particular period: Data under consideration is taken from 2006-2011
     Previous years are not taken into consideration.
  4) Partial fulfillment: Project studied doesn’t fulfill all requirements because it does
    not study the whole primary market due to time availability and course
    Requirement. It only fulfills the partial requirement as it studies only certain
    Important aspects of primary market.
  5) Approximate results: The results are approximated, as no accurate data is
    Available.
  6) Study takes into consideration only LTP and issue prices and their difference for
    Concluding whether an issue is overpriced or under priced leaving other.
  7) The study is based on the issues that are listed on NSE only.
     CHAPTER-II

REVIEW OF LITERATURE
INTRODUCTION:
This project focuses on the relatively unexplored area of primary equity markets in India. Its
broad goal is to begin the process of understanding how and why primary markets develop.
   Primary markets are where the firms raise capital through the issuance of financial
securities traded after insurance. The research will examine the development of domestic
primary market, focusing on macro economic factors. With the abolition of Control over
Capital Issues prior approval of capital issue proposals by companies has been dispensed
with. The companies are required now to be fair and honest to the investing public by
disclosing all material facts along with the risk factors associated with their projects to the
public. The present practice of brochure which is circulated widely to the investors along
with application form has been replaced with abridged prospectus to be attached to the New
Issue application forms.


   The word “market” can have different meanings but it is used most often as a catchall
term to denote both primary and secondary market. Infact primary market and secondary
market are both distinct terms that refers to the market where securities are created and the
one in which they are traded among investors respectively. Knowing the functions of primary
and secondary market is the key to understanding how stocks trade. Without them, the stock
market would be much harder to navigate and much less profitable. We will help you to
understand how these markets work and how they relate to individual investors.
   The primary market is that part of capital markets that deals with issuance of new
securities. Companies, government or Public sector institutions can obtain funding through
the sale of new stock or bond issue. This is typically done through a syndicate of securities
dealers .The process of selling new issues to the investors is called Underwriting. In the case
of new stock issue, this sale is called an IPO (Initial public offering). Dealers earn a
commission that is built into the price of the security, though it can be found in the
prospectus.


   The market in which investors have the first opportunity to find a newly issued security.
After the first purchases, subsequent trading is said to occur in secondary market. The
primary market is where securities are created. It is in this market that firms sell (float) new
stock and bonds to the public for the first time. For our purposes, you can think of a primary
market as being synonymous with an IPO. Simply put, an IPO occurs when a private
company sells stocks to the public for the first time.




METHODS OF FLOATING NEW ISSUES:
The various methods which are used in floatation of new securities in the new issue market
are
1)Public Issue / Offer through Prospectus
2) Offer for sale
3)Private Placement
4) Right Issues
5) Stock Exchange Pricing
6) Subscription by inside coteries


1) PUBLIC ISSUES: This is the most common method followed by joint stock companies
      to raise capital through the issue of new securities. Under this method, the issuing
      company directly offers to the general public or institutions a fixed number of shares at a
      stated price through a document called prospectus.
              The purpose of raising the new capital is to finance some capital expenditure, it is
      usual for companies to issue a prospectus inviting the public to take up the new securities.
      Legally no public limited company can raise capital from public without issuing
      prospectus.
2) OFFER FOR SALE: Under this method the company sells the shares /securities to the
      issue house / brokers at an agreed price . The issue house/brokers sell their shares /
      securities to the investors at a higher price.
              The company is relieved from the problem of printing and advertisement of
      prospectus and making allotment of shares . Offer for sale is not common in India
3) PRIVATE PLACEMENT: The promoters sell their shares to their friends , relatives and
   well wishers to obtain the minimum subscription which is a precondition for issue of
   shares to the public.
           Once this precondition for issue of shares is met , the issue house/brokers buy the
   securities out right with the intention of placing them with their clients afterwards.
           The issue house/brokers maintain their own list of clients and through customer
   contact sell the securities. The main disadvantage of this method is that the securities are
   not widely distributed to the large section of investors.


4) RIGHT ISSUES: Rights issue is a method of raising funds in the market by an existing
   company. A right means an option to buy certain securities at a certain privileged price
   within a specified period.
           Shares so offered to the existing shareholders are called Right shares. Right shares
   are offered to the existing shareholders in a particular proportion to their existing
   shareholders. The company should abide with section 81 of the companies act.
           If the shareholders fail to take the Right shares within a specified period, the
   balance is to be equally distributed among applicants for additional shares. Any balance
   still left over may be disposed off in the market.


5) STOCK EXCHANGE PLACING: this method has been discontinued in India due to
   strict regulations and statutory rules for listing of securities. According to it, “A company
   used to place its shares privately with the aid of brokers, and then secured permission for
   dealing on stock exchange”. This method involved little cost but often led to
   concentration of new shares in few hands.
6) SUBSCRITION BY INSIDE COTERIES: when a company goes to the new issue
   market a certain percentage of the capital is kept in reserve for subscription by inside
   coteries.
SEBI GUIDELINES FOR NEW ISSUE MARKET:

The SEBI guidelines for different category of companies are as follows
A) NEW COMPANY: A new company is a company which has not completed twelve
   months of production and where the promoters do not have a track record. These
   companies have to issue shares only at par.
B) PRIVATE AND CLOSELY HELD COMPANIES: These companies having a track
   record of consistent profitability for last three years, are permitted to price their issues
   freely.
C) EXISTING LISTED COMPANIES: The existing limited companies will be allowed to
   raise fresh capital by freely pricing its shares provided the promoters contribution is 50%
   on first 100 crores of issue.
D) DIFFERENTIAL PRICING: Issue to the public can be priced differentially as
   compared to issue to right shareholders justification for the price difference should be
   mentioned in the offer document.
E) LOCK IN PERIOD: Lock in period is five years for promoters contribution from the
   date of allotment or from commencement of commercial production whichever is later.


F) GUIDELINES FOR PUBLIC ISSUE:
        Every application should be accompanied with an abridged prospectus.
        The risk factors should be highlighted in the abridged prospectus.
        Company’s management, Past history and present business of the firm should be
             highlighted in the prospectus.
        Justification for premium should be stated
        The public issues should be kept open for a minimum of three days and a
             maximum of ten working days.
        The quantum of issue should not exceed the amount specified in the prospectus
        Compliance report in the prescribed form should be submitted to SEBI within
             forty five days from the date of closure of issue.
             The allotment of shares has to be made in multiples of tradable lots if the
                minimum of subscription of ninety percent has not been received the entire
                amount is to be refunded to the investors within 120 days.
             Underwriting has been made mandatory
             The gap between the closure date of various issues i.e. rights and public should
                not exceed thirty days.


RECENT TRENDS AND DEVELOPMENTS IN NEW ISSUE
MARKET:


   The recent economical changes i.e. privatization, liberalization, foreign private participation,
disinvestment in public sector have given a new direction to the capital market.
   The number of issues made and the amount of capital raised from the market has been
phenomenal in the last decade. The public sector organizations like financial institutions, public
sector undertaking have started dominating the primary market. In 1996-97, all public financial
institutions including IDBI, IFCI, ICICI and many public sector backs have mobilized resources
through public issue route. There is a major decline in the equity at premium issues over the
years.
CAPITAL MOBILISED THROUGH DEBT: the late 90’s have witnessed the bent of capital
market for the issue of debt as that period is characterized with high interest rates and negative
returns from the secondary market.
MUTUAL FUNDS: New mutual funds were set up during the last decade. Many investors are
turning towards mutual funds to take the advantage of expertise in investments and lowering of
investment risk.
   SEBI has dispensed with the requirement of a minimum promoters contribution and lock in
for listed companies with a three year dividend track record in the past five years
         The lock in period for employees in their stock option schemes was withdrawn but lock
in will still apply to any preferential allotment made to promoters. The pricing of such issues
would be based on market prices.
       The market reforms include the introduction of electronic trading with the setting up of
OCTEI and NSE.th process of Book building was encouraged and IPO through Book building
has picked up.
       Credit rating was made mandatory for some issues. This step has built the customer
confidence in the market. Qualitative changes included the introduction of new innovative
financial instruments. Certain innovative financial instruments were designed to suit the
investors requirement. With the globalization of business, foreign markets have welcomed Indian
companies. The Indian companies have issued GDR (global depository receipts) and ADR
(American depository receipts) , foreign currency bomds , euro currency bonds etc.




       TO SUGGEST GUIDELINES TO INVESTORS:

1.     The investor should purchase the shares after a detailed study about the company. (That
       includes fundamental analysis, economical analysis and technical analysis.)

2.     Liquidity and intrinsic value of the scrip should be high.

3.     The investor should have a clear idea about the financial position, than determine an
       appropriate allocation mix of the assets, which maximizes the returns.

4.     An easy solution to investor is to invest in to mutual fund schemes through a systematic
       investment plan (sip) the mutual fund gives you a well diversified, professionally
       managed portfolio at low cost

5.     Investor need to develop a long term investment mindset rather than short term
       investment to get more returns or for achieving financial goals

6.     Investors emotions and judgment plays a dynamic role in investment process. The
       investor should control his emotion and impatience and he should take strong decision

7.     A good investor should diversifies and reduces his risk by investing in different securities
       which contained different risks and returns in order to achieve his goals
8.     The investor should understand the market psychology apart from fundamental analysis.
       Because these psychological factors have a greater impact on market.

9.     The investor must to review and revise the portfolio periodically. Based on circumstances
       he should change the production of the stock

10.    Investor need to aware of new information, which reflects wider changes in share prices.

11.    The investor can get certain tax benefit from investing in stock markets

                    a) Investment on government fixed deposits

                    b) Dividend on certain shares

                    c) UTI units

12.    If investor wants to manage their investment aggressively, you have to monitor important
       developments affecting the economy, various industrial sectors, and individual
       companies.

       Investor has to develop sound standards for selecting growth stocks and hold growth
       stocks as long as they remain growth stocks

13.    For purchasing stock of any company the investor to analyze the potentiality or
       worthiness of the product, profitability, treatment of HR, innovative ideas of the
       company, integrity

14. Avoid certain kinds of shares for ex; shares of unlisted companies

15. Participate in different schemes of mutual funds and high liquidity stocks.
   Investors more crazy about the new issues because:

      i.   The issues are often offered at par and they feel they are getting shares at “reasonable
           price”

     ii.   If the company does well their capital appreciation and premium will be more

    iii.   But before selecting a company the investor should think about that company in a
           following way

    iv.    What is track record of the company

     v.    Is there adequate assurance of the availability of inputs

    vi.    How strong they are developing the market for product

    vii.   What are the competitions etc… need to analyze.




   PROBLEMS OF NEW ISSUE MARKET:

   The problems of new issue market can be summarized as follows:
A) The new issue market failed to mobilize adequate savings from the household sector. Only 10 %
   of the financial savings was mobilized. One reason for such failure is lack of awareness among
   these sector and private placement of capital by the companies.
B) The new issue market has failed to communicate to the public the benefits of investing in new
   instruments.
C) Merchant banks have failed to bridged the gap between the investors and the companies . they
   have failed to evaluate the projects taken up by companies, credentials of promoters, technical
   and managerial aspects, etc. this has led to customers being duped by companies. SEBI has now
   brought out stringent guidelines for companies and merchant bankers.
D) Investment in capital markets are considered to be risky. So the risk averse attitude of customer
   have diverted the investment from shares to fixed deposits and debentures.
E) Abnormally high cost of flotation has kept away small companies from the primary market.
F) NIM has not reached to the semi urban and rural areas. An investor from this region has to spend
   additional cost for post and bank charges to access the NIM.
G) Delay in allotment of shares, refunding of application money, posting of share certificates etc are
   common anomalies in NIM
H) New companies failed to gain the favor of underwriter. Caution investors have stayed away from
   new companies, which led to devolution on underwriters.
I) Timing of an issue is very important. But companies failed to keep an eye on the other issues
   which are made during the same time. Thus crowding of new issues at one time has made the
   investor to select the one which he considered to be worthy.


   INITIAL PUBLIC OFFERING

   IPO is an acronym for initial public offering. This is the first sale of stock by a company to the
   public. A company can raise money by issuing either debt or equity. If the company has never
   issued equity to the public , it is known as an IPO. Corporate may raise capital in the primary
   market by way of an IPO, right issue or private placement.
           Companies fall into two broad categories private and public. A privately held company
   has fewer shareholders. Anybody can come out and incorporate a private company, put in some
   money file the right legal documents and follow the reporting rules. Most small businesses are
   privately held, but large companies can be private too. IKEA, Domino’s pizza and Hallmark
   cards are all privately held. It usually is not possible to buy shares in private company. The
   shares of private company are not offered to general public.
           On the other hand public companies can sold at least a portion of themselves to the public
   and trade on stock exchange. This is why doing an IPO is also referred to as going public. Public
   companies have thousands of share holders and are subjected to strict rules and regulations.
WHY GO PUBLIC?
Going public raises cash , being publicly traded also opens many financial doors .Because of
increased scrutiny public companies can usually get better rates when they issue debt. As long as
there is a market demand a public company can always issue more stock.
       Trading in open market means liquidity. Being on a major stock exchange carries a
considerable amount of prestige. In past companies with strong fundamentals could only qualify
for an IPO, but Internet boom changed all this. Firms no longer needed strong financial and a
solid history to go public. Instead, IPO’s were done by smaller start ups seeking to expand their
business. There is nothing to worry for expansion of IPO but most of these firms had never made
a profit and didn’t plan on being profitable any time. In cases like this companies might be
suspected of doing an IPO just to make the founders rich. The IPO then becomes the end of the
road rather than beginning.
       How can this happen? Remember an IPO is just selling stock, it is all about the sales job.
If you can convince people to buy stock in your company, you can raise a lot of money . In our
opinion IPO’s came just to collect money are extremely risky and should be avoided.


IPO BASICS: HOW TO GET INTO AN IPO?


1) UNDERWRITING PROCESS: Getting a piece of a hot IPO is very difficult, if not
impossible. To understand why we need to know how an IPO is done , a process known as
underwriting.
       When a company wants to go public , the first thing it does is hire an investment bank. A
company could theoretically, sell its shares on its own but realistically, an investment bank is
required. Underwriting is the process of raising money by either debt or equity. Underwriter acts
as a middlemen between companies and the investing public.
       The company and the investment bank will first meet to negotiate the deal. Items usually
discussed includes the amount of money company will raise , the types of securities to be issued
and all details in underwriting agreement. The deal can be structured in a variety of ways. For
example, in a “firm commitment” deal the underwriter guarantees that a certain amount will be
raised by buying the entire offer and then reselling to the public. In a “best effort” deal the
underwriter sells the securities , but doesn’t guarantee the amount raised.
       Once all sides agree to deal , the investment bank puts together a registration statement to
be filed with SEC, governing bodies. This document contains information about offering as well
as company information such as financial statements , management background , legal problems
and insider holdings. The SEC then requires a “cooling off period” in which they investigate and
make sure all material information has been disclosed. Once SEC approves the offering, a date is
set when the stock will be offered to the public.
       During the cooling off the period the underwriters put together what is known as red
herring. This is an initial prospectus containing all information about the company except for the
offer price and effective date , which aren’t known at the time with the red herring in hand , the
underwriter and the company attempt to hype and build up interest for the issue. They go on a
road show also known as “the dog and pony show” where the big institutional investors are
courted .
       As an effective date approach the underwriter and company sit down and decide on the
price. This is not an easy decision, it depends on the company , the success of the road show and
most importantly current market conditions. Of course it is in both parties interest to get as much
as possible. Finally the securities are sold on the stock market and money is collected from
investors.
2) INDIVIDUAL INVESTOR: As you can see, the road to an IPO is an long and complicated
one. You may have noticed that individual investors are not involved until the very end, because
small investors are not the target market. They do not have more cash and therefore hold little
interest for the underwriters. If the underwriters think that an IPO will be successful they will
usually pad the pockets of their favorite institutional client with shares at IPO price. The only
way for individual investor to get shares is to have an account with one of the investment banks
that is part of the underwriting syndicate. But an individual cannot expect to open an account
with $1000 and be showered with an allocation. He has to be frequently trading client with a
large account to get into an hot IPO.


POINTS TO BE CONSIDERED TO GET INTO AN IPO:


1) NO HISTORY: It’s hard enough to analyze the stock of an established company. An IPO
company is even trickier to analyze since there won’t be a lot of historical information. The main
source of data is Red herring prospectus, so make sure you examine this document carefully.
Look for the usual information but also pay special attention to the management team and how
they plan to use the funds generated from an IPO.
2) LOCK UP PERIOD : If you look at the charts following many IPO’s, you will notice that
after few months the stock takes a sleep downturn, this is often because of lockup period.
When a company goes public, the underwriters make company officials and employees sign a
lock up agreement. Lock up agreements are legally binding contracts between underwriters and
insiders of the company, prohibiting them from selling any shares of stock for a specified period
of time. The period can be anything from 3 to 24 months. 90 days is minimum period stated
under rule, but lockup specified by the underwriters can last much stronger. The problem is when
lockups expire all the insiders are permitted to sell their stock. The result is a rush of people
trying to sell their stock to realize their profit. This excess supply can put severe downward
pressure on the stock price.
3) FLIPPING: Flipping is reselling a hot IPO stock in the first few days to earn a good profit.
This is not easy to do and you will be strongly discouraged by your broker. The reason behind
this is that, the companies want long term investors who hold their stock, not traders. There are
no laws that prevent flipping, but your broker may black list you from future offering or just
smile less when you shake hands.


4) Of course, institutional investors flip stocks all the time and make big money. The double
standard exists and there is nothing we can do about it as they have buying power. Because of
flipping , it is a good rule not to buy shares of an IPO if you don’t get in on the initial offering.
Many IPO’s that have big gains on the first day will come back to earth as the institutions take
their profits.
5) AVOID THE HYPE : Its important to understand that underwriters are salesmen . The
whole underwriting process is intentionally hyped up to get as much attention as possible. Since
IPO’s only happen once for each company, they are often presented as “once in a lifetime”
opportunities. Of course some IPO soar high and keep soaring. But many end up selling below
their offering prices within the year. Don’t buy a stock because it is an IPO do it because it is a
good investment.
BOOK BUILDING PROCESS:
The abolition of the capital issues control act, 1947 has brought a new era in the primary market
in India. The control over the pricing of the issues, designing and tenure of capital issues were
abolished. The issuers at present are free to make the price of issue. The main drawback of
pricing was the process of pricing of issues. The issue price was determined around 60 to 70 days
before the opening of the issue and the issuer had no clear idea abut the market perception of the
price determined. The traditional fixed price method of tapping individual investor from two
defects
1) Delay in initial public process.
2) Under pricing/over pricing of issues.
In fixed price method, public offers do not have any flexibility in terms of prices as well as
number of issues. From experience it can be stated that a majority of the public issues come
through fixed price method are either under priced or over priced. Retail investors are unable to
distinguish good issues from bad one. That is why book building mechanism, a new (product)
process of price discovery has been introduced to overcome this limitation and determine issue
price effectively.
SEBI guidelines defines book building as a process undertaken by which a demand for the
securities proposed to be issued by a corporate body is elicited and build up and the price for
such securities is assessed for the determination of the quantum of such securities to be issued by
means of a notice, circular, advertisement, document or information memoranda or offer
document.
Book building is basically a capital issuance process used in IPO which aids price and demand
discovery. It is a process used for marketing a public offer of equity shares of a company. It is a
mechanism where during a period fro which a book for IPO is open, bids are collected from the
investors at various prices, which are above or equal to the floor price. The process aims at
tapping both wholesale and retail investors. The offer/issue price is then determined after the bid
closing date based on certain evaluation criteria.
FEATURES OF BOOK BUILDING PROCESS:


!) Public offers in fixed price method involves a pre issue cost of 2-3 percent and carry the risk
of failure if it does not receive 90 percent of total subscription. In Book building such cost and
risk can be avoided because Issuer Company can withdraw the market if demand for security
does not exist.
2) Institutional investor like to participate largely in book built transactions as in this process the
time taken for completion of entire process is less than the fixed price issues
3) Here the price is determined on the basis of the demand received or at the price above or equal
to the floor price whereas in fixed price option the price of issues is fixed first and then securities
are offered to the investors.
4) Book is built by book running lead manager to know the everyday demand whereas in case of
fixed price of public issues, the demand is known at the close of the issue.
5)Book should remain open for minimum of 5 days.


BOOK BUILDING PROCESS IN INDIA:
The main parties who are directly associated with book building process are issuer company.
BRLM (Book Running Lead Managers) and the syndicate members. The BRLM (merchant
banker) and the syndicate members who are the intermediaries are both eligible to act as
underwriters. The steps involved in book building process are as under:
1) The issuer company proposing an IPO appoints a lead merchant banker as BRLM.
2) Initially the issuer company consults with the book running lead manager in drawing up a
draft prospectus which does not mention the price of the issues but includes other details about
the size of the issues, past history of a company and a price band. The securities available to the
public are separately identified as net offer to the public.
3) The draft prospectus is filed with SEBI which gives it a legal standing.
4) A definite period is fixed as a bid period and BRLM conducts awareness campaign like
    advertisements, road shows etc.
5) The BRLM appoints a syndicate member, a SEBI register intermediary who underwrite the
issues to the extent of net offer to the public
6) The BRLM is entitle to remuneration for conducting the book building process
7) The copy of draft prospectus may be circulated by BRLM to the institutional investors as
well as to the syndicate members
8) The syndicate members create demand and ask each investor for the number of shares and
offer price
9) The BRLM receives the feedback about the investors bid through syndicate members
10) The prospective investors may revise their bids at any time during the bi d period
11) The BRLM on receipt of feedback from the syndicate embers about the bid price and
quantity of share apply has to build up an order book showing the demand for the shares of the
company at various prices. The syndicate members must also maintain a record book for orders
received from institutional investors for subscribing to the issue of private portion.
12) On receipt of above information, the BRLM and the issuer company decides the issue price.
This is known as market clearing price.
13) The BRLM then closes the book in consultation with the issuer company and determine the
issue size of placement portion and public offer portion.
14) Once the final price is determined the allocation of securities should be made by BRLM
based on prior commitment, investors quality, price aggression, earliness of bids etc. the bid of
an institutional bidder, even if he has paid full amount may be rejected without being assigned
any reason as the book building portion of institutional investors is left entirely at the discretion
of issuer company and the BRLM.
15) The final prospectus if filed with the registrar of companies within 2 days of determination of
issue price and receipts of acknowledgement card from SEBI.
16) Two different accounts for collection of application money, one for the private placement
portion and the other for the public subscription should be opened by Issuer Company.
17) The placement portion is closed a day before the opening of public issue through faxed price
method. The BRLM is required to have the application forms along with application money from
the institutional buyers and underwriters to the private placement portion.
18) The allotment for the private placement portion shall be made on the second day from the
closure of the issue and the private placement portion is ready to be listed.
19) The allotment an listing of issues under the public portion i.e. fixed price portion must be as
per the existing statuary requirements
20) Finally the SEBI has the right to inspect such records and books which are maintained by
BRLM and the intermediaries involved in the Book building process.


DIIFFERENCE BETWEEN SHARE OFFERED THROUGH BOOK BUILDING AND
THROUGH NORMAL PUBLIC ISSUE:


1) In    normal public issue method the price at which the securities are offered/allotted is known
in advance to the investor whereas the price at which these securities will be offered/allotted is
not known in advance to the investor in book building process. Only indicative price range is
known.
2) In normal public issue method demand for the securities offered is known only after the
closure of the issue whereas in book building method demand for the securities offered can be
known everyday as the book is built
3) In normal issue method payment is made at the time of subscription wherein refund is given
after allocation whereas in book building method payment is made only after allocation.
4) In book building securities are offered a t prices above or equal to the floor prices, whereas
securities are offered at a fixed price in case of normal public issues.


OFFER TO THE PUBLIC THROUGH BOOK BUILDING PROCESS


         The oxford dictionary of business jumps from “bonus shares to book keeping” and then
on “book of primary entry” without devoting an entry for book building. Book building is the
process by which an underwriter attempts to offer an IPO based on demand form institutional
investors.
         An underwriter “builds a book” by accepting orders from fund managers, indicating the
number of shares they desire and the price they are willing to pay. Book maker is not the same as
the book builder. The former takes bets and pays out money to the people who win. The IPO can
be made through fixed price method, book building method or a combination of both. In case the
issuer choose to issue securities through book building route then as per SEBI guidelines, an
issuer company can issue securities in the following manner.
A) 100 percent of the net offer to the public through book building route
B) 75 percent of the net offer to the public through the book building process and 25 percent
through fixed price portion.
C) Under 90 percent scheme this percentages will be 90 and 10 respectively.
A) 100 % THROUGH BOOK BUILDING PROCESS : In the 100 percent of the net offer to
the public, entire issue is made through book building process. In case of 100 percent book
building process, the bidding centers should be at all the places where recognized stock
exchanges are situated.
B) 75 % THRUOGH BOOK BUILDING PROCESS : The option of 75 percent book building
is available through the book building process are indicated as placement portion category and
securities available to public are identified as net offer to the public. In this option, underwriting
is mandatory to the extent of net offer to the public. The issue price for placement portion and
offers to public are required to be same.
C) 90 % THROUGH BOOK BUILDING PROCESS: This option is not available in India.


TYPES OF INVESTORS
        There are three kinds of investors in book building issue. The retail individual investor
(RII), the non-institutional investor (NII) and the qualified institutional buyers (QIB). RII is an
investor who applies for stocks for a value of not more than rupees 100000. Any bid exceeding
this amount is considered in the NII category. NIIs are commonly referred to as high net worth
individuals. On the other hand QIBs are institutional investors who posses the expertise and the
financial muscle to invest in securities markets.
        Mutual funds, financial institutions, scheduled commercial banks, insurance companies,
provident funds, state industrial development corporations fall under the definition of being a
QIB. Each of these is allotted a certain percentage of total issue. The total allotment of RII
category has to be at least 35 percent of the total issue. RII also have an option of applying at
cut-off price. This option is not available to other classes of investors. NIIs are to be given at
least 15 percent of the total issue and QIBs are to be issued not more than 50 percent of the total
issue
REVERSE BOOK BUILDING PROCESS:


The reverse book building is a mechanism provided for capturing the sell orders online basis
from the shareholders through respective BRLMs which can be used by the companies intending
to delist its shares through buy back process. In reverse book building scenario, the
acquirer/company offers to buy back shares from the shareholders. The reverse book building is
basically a process used for efficient price discovery. It is a mechanism where during the period
for which the reverse book building is open offers are collected from the shareholders at various
prices, which are above or equal to the floor price. The buy back price is determined after the
offer closing date.
Business process for delisting through book building is as follows
1)    The acquirer shall appoint designated BRLM for accepting offers form the shareholders
2)    The company/acquirer intending to delist its shares through book building process is
identified by way of a symbol assigned to it by BRLM.
3)    Orders for the offer shall be placed by the shareholders only through the designated trading
members, duly approved by the exchange.
4)    The designated trading members shall ensure that the security/shareholder deposit the
securities offered with the trading members prior to the placement of an order.
5)    The offer shall be open for N number of days
6)    The BRLM shall intimate the final acceptance price and provide the valid accepted order
file to the National Securities Clearing Corporation Limited (wholly owned securities of NSE
carrying out clearing and responsible for settlement operation.).
SEBI guidelines shall be applicable to delisting of securities of companies and specifically apply
to:
1)    Voluntary delisting being sought by the promoters of a company.
2)    Any acquisition of shares of the company (either by a promoter or by any other person)or
scheme or arrangement, by whatever name referred to, consequent to which the public
shareholding falls below the minimum limit specified in the listing conditions or listing
agreement that may result in delisting of securities.
3)    Promoters of the company who voluntarily seek to delist their securities from all or some of
the stock exchanges.
4)   Case where a person in control of the management is seeking to consolidate his holding in
a company in a manner which would result in the public share holdings or in the listing
agreement that may have affect of company being delisted.
5)   The companies which may be compulsorily delisted by stock exchanges


Advantages of Reverse book building process
1)   It provides a fair,efficient and transparent method for collecting offer using latest electronic
trading systems.
2)   The NSE system offers a nation wide bidding facility in securities.
3)   Cost involved in issue are far less than those in a normal IPO.


RED HERRING PROPECTUS:
       A preliminary registration statement that must be filed with the SEC describing a new
issue of stock and the prospects of the issuing company.
       "Red Herring Prospectus" is a prospectus which does not have details of either price or
number of shares being offered or the amount of issue. This means that in case the price is not
disclosed, the number of shares and the upper and lower price bands are disclosed. On the other
hand, an issuer can state the issue size and the number of shares are determined later. An RHP
for and FPO can be filed with the RoC without the price band and the issuer, in such a case will
notify the floor price or a price band by way of an advertisement one day prior to the opening of
the issue. In the case of book-built issues, it is a process of price discovery and the price cannot
be determined until the bidding process is completed. Hence, such details are not shown in the
Red Herring prospectus filed with the RoC in terms of the provisions of the Companies Act.
Only on completion of the bidding process, the details of the final price are included in the offer
document. The offer document filed thereafter with ROC is called a prospectus.
“Abridged Prospectus” means contains all the salient features of a prospectus. It accompanies the
application form of public issues.
GREEN SHOE OPTION:
In most of the case it is experienced that IPO through book building method in India turns out to
be over priced or under priced after their listing and ultimately the small investor becomes the
net loser. If the prices in open market fall below the issue price, small investors may start selling
their securities to minimize losses. Therefore there was a vital need of a market stabilizer to
smoothen swing in the open market price of a newly listed shares after an IPO. Market
stabilization is the mechanism by which stabilizing agent acts on behalf of the issuer company,
buys a newly issued securities for the limited purpose of preventing a decline in the new
securities in open market price in order to facilitate its distribution to the public. It can prevent
the IPO from huge price fluctuation and save investors from potential loss. Such mechanism is
known as Green Shoe Option. Green Shoe Option can rectify the demand and supply imbalances
and can stabilize the price of the stock. It owes its origin to the green shoe option company,
which used this option for the first time in the world.
       SEBI recognized GSO system of initial public 2004 August. According to SEBI
Guidelines “A company desirous of availing GSO shall pass the resolution in the general body
meeting authorizing the public issue, seek authorization, also for possibility of allotment of
further shares to the stabilizing agent. The company shall appoint one of the Lead book runners
among the issue management team as stabilizing agent, will be responsible for price stabilization
process if required.
       The stabilizing agent shall enter into an agreement with the promoters who will lend their
share, specifying the maximum number of shares that may be borrowed from the promoters,
which shall not be in excess of fifteen percent of the total issue size. The stabilization
mechanization shall be available for the period disclosed by the company in the prospectus,
which shall not exceed 30 days from the date when trading permission was given by the
exchanges.
       Ideally, with the intervention of the stabilizing agent the share price should not fall below
the issue price for a period of 30 days from the listing date. Due to this option, the investor has a
time period of 30 days up to which he is safe and his chances of incurring the losses are
minimum.
       A GSO is a clause contained in the underwriting agreement of IPO. The GSO is also
referred to as an over allotment provision, allows the underwriting syndicate to buy up an
additional 15 % of the shares at the offering price if public demand for the shares exceeds
expectations and the stock trades above its offering price.
       The GSO provides extra incentive for the underwriters of a new stock offering. In
addition this investment banks, brokerages and other financing parties also often exercise the
GSO the cover some of the short position. They may have create an effort to maintain a stable
market after a new stock begins to trade as well as to meet after market demand.


AN INTERESTING FACT:
The Green shoe company was the first issuer to allow the over allotment option to its
underwriters, hence the name. The provision that has become standard in firm commitment
underwriting is the over allotment option or green shoe option. Where the company and other
sellers of securities grant and option to the underwriters to purchase additional shares (around 15
% in total offerings) on the same term as the original shares offer to the underwriters. The GSO
allows the underwriters to exercise significant market clout in stabilizing activities during a 30
day period immediately following a public offering. The over allotment gives the underwriters
buying power to cover their short position in order to stem a falling stock price, without the risk
of having to buy stock at higher prices to cover their short position is the stock price increases.
  CHAPTER- III

COMPANY PROFILE
INTRODUCTION:
ICICI Securities Ltd is an integrated securities firm offering a wide range of services including
investment banking, institutional broking, retail broking, private wealth management, and
financial product distribution.


ICICI Securities sees its role as 'Creating Informed Access to the Wealth of the Nation' for its
diversified set of client that include corporates, financial institutions, high net-worth individuals
and retail investors.


Headquartered in Mumbai, ICICI Securities operates out of 66 cities and towns in India and
global offices in Singapore and New York.


ICICI Securities Inc., the stepdown wholly owned US subsidiary of the company is a member of
the Financial Industry Regulatory Authority (FINRA) / Securities Investors Protection
Corporation (SIPC). ICICI Securities Inc. activities include Dealing in Securities and Corporate
Advisory Services in the United States.

ICICI Securities Inc. is also registered with the Monetary Authority of Singapore (MAS) and
operates a branch office in Singapore.

CICI Securities Limited.

       Ms. Chanda D. Kochhar,Chairperson
       Mr Uday Chitale
       Mr. Narendra Murkumbi
       Mr Ketan Patel
       Mr Pravir Vohra
       Ms Zarin Daruwala
       Mr. Anup Bagchi, Managing Director and CEO
       Mr. Ajay Saraf, Executive Director
ICICI Securities Holding Inc.

      Mr. Gopakumar Puthenveettil
      Mr. Pramod Rao
      Mr. Sriram Iyer
      Mr. Ashish Kakkar
      Mr. Raghav Iyengar
      The social initiatives programme of ICICI Securities has over the years focused mainly
       on two areas: providing education and health to the poor and marginalized children from
       our society.
   

      Under the aegis of ICICI Foundation, ICICI Securities provides both financial and
       volunteering support to the following two organisations:


      Door Step School - One of the most long standing associations has been with Door Step,
       a NGO focused on spreading education to children residing in the slums. The Colaba
       Municipal School, which is managed by the Mumbai Municipal Corporation along with
       Door Step, was adopted by ICICI Securities in 2004. The firm not only provides funds
       for hiring teachers, books and other educational needs but also encourages its employees
       to spend some quality time with the children through various activities like Diya making
       during Diwali or playing a cricket match with the children.


      Muktangan - ICICI Securities has also adopted the pre-primary section of a municipal
       school in Lower Parel, Mumbai. This school is run by the Paragon Charitable Trust
       through their CSO called Muktangan. Managed in collaboration with the Brihanmumbai
       Municipal Corporation (BMC), Muktangan conducts its classes in English. ICICI
       Securities supports this educational programme that offers alternatives to orthodox
       educational practices
Retail

        ICICIdirect.com, won the Outlook Money ' Best e- Brokerage Award' seventh time in
         a row. Previously, the firm won the award in 2004, 2005, 2007, 2008, 2009 and 2010.
        ICICI Securities' Business Partners (Sub Broker channel) won the 'Franchisor of the
         Year 2011' for the third consecutive year.
        Anup Bagchi, MD & CEO has been honoured with the Zee Business 'Industry
         Newsmaker Award 2010' for his tremendous and unmatched contribution in the field of
         Finance
        Pankaj Pandey, Head- Research - ICICIdirect has won the Zee Business Best Market
         Analyst 2010 award in the Equities Fundamental Category
        CMO Asia Awards for Excellence in Branding and Marketing 2010:


            o          Brand Leadership Award (overall)
            o          'Campaign of the Year' for the Trade Racer Campaign
            o          Brand Excellence in Banking and Financial Services for the store format
            o          Award for Brand Excellence in the Internet Business



        Frost and Sullivan 2009 Award for Customer Service Leadership
        ICICIdirect, the neighborhood financial superstore won the prestigious Franchise India
         `Service Retailer of the Year 2008 award.
        ICICIdirect has also won the CNBC AWAAZ 2007 Consumer Award for the Most
         Preferred Brand of Financial Advisory Services.
        Best Broker - Web 18 Genius of the Web Awards 2007
        Franchisor of the year award 2009
        Retail concept of the year awards 2009

Institutional

        Vikash Mantri tops The Wall Street Journal's Asia's Best Analysts survey in the media
         sector for 2010
       ICICI Securities is awarded as the Best Investment Bank 2008 by Global Finance
        Magazine
       The Corporate Finance group also was awarded a runner-up Best Merchant Banker by
        Outlook Money in 2007.
       ICICI Securities (I-Sec) topped the Prime Database League Tables 2007 for money
        raised through IPOs/FPOs.
       The equities team was adjudged the 'Best Indian Brokerage House-2003' by
        Asiamoney.

Technology

       IDG India's CIO magazine has recognized ICICI Securities as a recipient of CIO 100
        award in 2009, 2010 and 2011
       ICICI Securities conferred the Gold CIO award jointly by CIOL and Dataquest at the
        Enterprise Awards 2010
       Indian Bank's Association Business Technology Awards for Best Online Trading
        Platform in 2006 and 2007

Special Category

       Mr Charanjit Attra, Chief Financial Officer (CFO), ICICI Securities Ltd was conferred
        the 'CFO100 recognising the Winning Edge in 2010' award by CFO India. He won the
        award for the 'Winning Edge in Cost Management' category.




Legal
The information provided on this site is not intended for distribution to, or use by, any person or
entity in any jurisdiction or country where such distribution or use would be contrary to law or
regulation or which would subject ICICI Securities Limited ( I-Sec ) or its affiliates to any new
or additional registration requirement within such jurisdiction or country. Neither the
information, nor any opinion contained in this site constitutes a solicitation or offer by I-Sec or
its affiliates to buy or sell any securities, futures, options or other financial instruments or
provide any investment advice or service.

Disclaimer of Warranty and Limitation of Liability

The information on this site is provided on "AS IS" basis. I-Sec does not warrant the accuracy of
the information given herein, either expressly or impliedly, for any particular purpose and
expressly disclaims any warranties of merchantability or suitability for any particular purpose.
Although the information provided to you on this website is obtained or compiled from the
sources we believe to be accurate, I-Sec does not guarantee the accuracy, completeness or
validity of any information made available to you for any purpose. Neither I-Sec, nor any of its
affiliates, directors, officers or employees, will be liable or have any responsibility of any kind
for any loss or damage that you incur in the event of any failure or interruption of this site, or
resulting from the act or omission of any other party involved in making this site or the data
contained therein available to you, or from any other cause relating to your access to, inability to
access, or use of the site or these materials, whether or not the circumstances giving rise to such
cause may have been within the control of I-Sec or of any vendor providing software or services
support. In no event will I-Sec be liable to you for any remote, special, direct, indirect,
consequential, incidental damages or any other damages of any kind (regardless of the legal
theory on which the claim is based) even if I-Sec or any other party have been informed of the
possibility thereof.

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If you download any information or data or software from this website, you agree that you will
not copy it or remove or obscure any copyright or other notices or legends contained in any such
information.

Use of Links

Should you leave this site via a link contained herein, and view content that is not provided by I-
Sec, you shall do so at your own risk. I-Sec makes no guarantees or representations as to, and
shall have no liability for, any electronic content delivered by any third party, including, the
appropriateness, subject matter, quality or timeliness of any content.

Research

The information contained in the Research Reports uploaded herein has been obtained from
various sources; we do not guarantee its authenticity or validity or completeness. Neither any
information nor any opinions expressed constitute an offer, or an invitation to make an offer, to
buy or sell any securities or any derivative instruments related to such securities. Investors
should take financial advice with respect to the suitability of investing their monies in any
securities discussed or recommended in on this website and should understand that statements
regarding future prospects may not materialize. Investors should note that each security's price or
value may rise or fall and accordingly, investors may even receive the amounts, which are less
than originally invested. Past performance is not necessarily a guide to future performance.
Please carefully read the detailed disclosures given at the end of every research report.

Contact:
Customer care
email :customercare@icicisecurities.com

Compliance Officer
Tel: +91-22-2288 2460 /70
email: complianceofficer@icicisecurities.com

SEBI Registration details:

NSE SEBI Registration Number Capital Market :- INB 230773037 | BSE SEBI Registration
Number Capital Market :- INB 011286854
NSE SEBI Registration Number Derivatives :- INF 230773037 | NSE SEBI Registration Number
Currency Derivatives :- INE 230773037

CICI Securities empowers over 2 million Indians to seamlessly access the capital market
with ICICIdirect.com, an award winning and pioneering online broking platform. The platform
not only offers convenient ways to invest in Equity, Derivatives, Currency Futures, Mutual
Funds but also other services Fixed Deposits, Loans, Tax Services, New Pension Systems and
Insurance are available. ICICIdirect.com offers a convenient and easy to use platform to invest in
equity and various other financial products using its unique 3-in-1 account which integrates
customer's saving, trading and demat accounts.

Apart from convenience, ICICIdirect.com also offers access to comprehensive research
information, stock picks and mutual fund recommendations among other offerings. Tailored
services and trading strategies are available to different types of customers; long term investors,
day traders, high-volume traders and derivatives traders to name some.

ICICIdirect.com uses the most advanced commercially available 128-bit encryption technology
enabled Secure Socket Layer (SSL), to ensure that the information transmitted between the client
and ICICIdirect.com across the internet is safe and cannot be accessed by any third party.

ICICIdirect.com is the first broker in India to introduce `Digitally Signed Contract Note' to its
customers. As a result, the process of generating contract notes has been automated and the same
would be instantly available to its customers in a safe and secure manner through the website.

ICICI Securities has set-up neighbourhood financial stores which offer a variety of financial
products and services under one roof. It is a one-stop shop that facilitates existing and potential
customers to speak to our team and understand their financial plans and goals. ICICI Securities
has 250 stores across 66 cities in India.

Another unique concept called the ICICIdirect Money Kitchen, was launched in late 2009. An
extension of the superstore model, the money kitchen is an innovative financial store where
visitors can create their profiles to not only analyze their investment strategy by using various
financial tools but also monitor it from time-to-time.

To enable our customers to maximize their returns and plan for their future, ICICIdirect has also
started financial planning services at these stores. Customized financial plans can be created for
our customers by dedicated Relationship Managers who will understand the customer's
requirements and future goals.
Based on this information, the Relationship Manager works on creating a comprehensive and
easy-to-read financial plan. This enables ICICIdirect to move from just a transactional based
relationship to a meaningful and value-added long-term relationship with our customers.
ICICIdirect?s services and offerings evolves according to the customer's ever changing
requirements and goals.

Customers can walk-in to the financial superstores for products like ICICIdirect 3-in-1 online
trading account, equities, mutual funds, IPO, Life and General insurance, Fixed Deposits and
many other financial products. The stores also conduct periodic training sessions on markets and
demo sessions of the trading website

ICICI Securities understands the need for insightful research to make the right investment
decision. An independent equity research team provides strong and timely updates to ensure that
customer can avail of market opportunities.

The research team focuses on both large cap as well as small and mid-cap. Large cap companies
provide an overview of industry environments, while small and mid-cap companies are chosen
'bottom-up', providing a unique perspective to a generally under-researched end of the market.
The focus is on identifying companies, which we believe are likely to generate wealth for
investors on a sustained basis through in-depth fundamental research.
We cater to the entire gamut of investment and return horizon requirements of an investor
through our flagship offerings like Detailed Company Report, Pick of the Week, Model
Portfolio, Stock on the Move, Daily & Weekly derivatives, Intra-day calls, Daily, Weekly &
Monthly Technicals with a regular update on the performance of our calls.

The Active Trader Service is an innovative offering from ICICI Securities which is ideal for
those who are truly 'born traders'.

As a customer of the Active Trader Service, we assure you truly personalised service with a
dedicated relationship manager assigned to your account.

We have also set up a special research team who is focused on helping you achieve your targets
.The research team has developed a robust set of research products to help you make informed
investment decisions, depending on your risk profile, by analysing derivative market cues and
other news as well as market and corporate information.

Some of the research products which we offer are as follows : Positional Calls, Technical Picks,
Momentum Picks, Roll Over Monitor, Open Interest Insight, Special Situation Arbitrage, Pair
Calls.

The Equity Advisory Group (EAG) is a team of advisors dedicated to providing customers
personalised advisory services. It is aimed at maximising the customer's investment returns and
keeping him updated on the stock markets and the economy.

A Personal Equity Advisor will closely monitor the client's portfolio and keep him updated on
the latest happenings in equity market with the help of our fundamental and technical research.

EAG services are customised according to the client's risk appetite and investment horizon. A
personal equity advisor, backed by our research team, provides the customer with timely advice
on the stock market.

The Wealth Management Group is a team of specialists who offer specific advisory services to
meet both personal and business wealth requirements of HNIs.


The team creates customized strategies to meet Customer's investment goals of wealth
accumulation, wealth preservation and liquidity. In addition to mutual funds, fixed deposits and
other traditional products, we also offer alternate investment avenues of Private Equity,
Structured / Customized products for investors with specific views on the markets and Portfolio
Protection Strategies for large investors.


The attempt is to bring world class investment products to our customers through over 15 centres
of ICICIdirect.

ICICI Securities is the member of NSE & BSE and registered as Broker. It provides business
opportunity to entrepreneurs by registering them as Sub-Brokers / Authorised Person. ICICI
Securities provides trading terminals through which the Sub-broker can offer a range of financial
products like Equities, Derivatives, Currency Derivatives, IPO, MF, Bonds, Fixed Deposits etc.

Another way to get associated with ICICI Securities, As an Independent financial Advisor and
gain access to a wide range of financial products like MF, IPOs, Bonds, Corporate Fixed
Deposits.

One can also be associated as an Investment Advisor to sell a range of financial products like
IPO, Bonds, Fixed Deposits, etc. to their set of customers. In addition, they cal also sell asset
products like Home Loans, Education Loans, etc. to the customers.

ICICI Securities facilitates access to capital for the growth engine of the Indian economy which
is the corporate sector including large, medium and small enterprises; both from the public and
private markets.

ICICI Securities' engagements include Equity Capital Markets, Private Equity Intermediation
and Public Issuance of Debt.


A team of professionals, which is organized by sector helps clients assess their business models
and advises them on specific financing alternatives. The company's advice is based on the
specific circumstances and strategic considerations relevant to the client.
ICICI Securities is a SEBI registered Category I Merchant Banker

Key Recent Deals
In FY2010, ICICI Securities has helped companies raise ~ US$ 1.86 billion through QIPs and
IPOs. (Source: Prime Database).

Some of the recent transactions for FY2010 and FY 2011 include:

IPOs

      Jaypee Infratech: In 2010, Book Running Lead Manager, Rs. 22.6 bn
      A2Z Maintenance & Engineering Services: In 2010, Book Running Lead Manager, Rs.
       8.6 bn
      Punjab & Sind Bank: In 2010, Book Running Lead Manager, Rs. 4.7 bn
      Nitesh Estates: In 2010, Book Running Lead Manager, Rs. 4.1 bn
      Shree Ganesh Jewellery House:: In 2010, Book Running Lead Manager, Rs. 3.7 bn
      Claris Life Sciences : In 2010, Book Running Lead Manager, Rs. 3 bn
      Parabolic Drugs: In 2010, Book Running Lead Manager, Rs. 2 bn
      Commercial Engineers & Body Builders Co: In 2010, Book Running Lead Manager,
       Rs. 1.7 bn
      Adani Power: In 2009, Book Running Lead Manager, Rs. 30.2 bn
      JSW Energy: In 2009, Book Running Lead Manager to the IPO of Rs. 27 bn
      Godrej Properties: In 2009, Book Running Lead Manager, Rs 4.7 bn

Indian Depository Receipts (IDRs)

      Standard Chartered: In 2010, Syndicate Member ? first-ever issuance of an IDR, Rs.
       24.8 bn

FPOs

      NTPC: In 2010, Book Running Lead Manager, Rs 84.8 bn
      Power Grid Corp. Of India: In 2010, Book Running Lead Manager, Rs 74.4 bn
      Rural Electrification Corporation: In 2010, Book Running Lead Manager, Rs 35.3 bn
      Shipping Corporation Of India: In 2010, Book Running Lead Manager, Rs 11.6 bn
      Engineers India: In 2010, Book Running Lead Manager, Rs 9.6 bn

Public Issue of Debt

      Shriram Transport Finance Company: In 2010 & 2009 , Lead Manager, Rs 15 bn
      L &T Infrastructure Finance Company: In 2010, Lead Manager, Rs 2.6 bn

QIPs

      Adani Enterprises: In 2010, Book Running Lead Manager, Rs. 40 bn
      GMR Infrastructure: In 2010, Lead Manager, Rs. 14 bn
      Lanco Infratech: In 2009, Book Running Lead Manager, Rs. 7.3 bn
      Alok Industries : In 2010, Book Running Lead Manager, Rs. 4.2 bn
      Network18 Media & Investments: In 2009, Book Running Lead Manager, Rs. 2 bn
      3I Infotech: In 2010, Book Running Lead Manager, Rs. 1.8 bn
      Texmaco: In 2009, Sole Book Running Lead Manager, Rs. 1.7 bn
      Adhunik Metaliks: In 2009, Book Running Lead Manager, Rs. 1.4 bn

Rights Issues

      Adani Enterprise: In 2010, Lead Manager, Rs. 14.8 bn
      IBN18 Broadcast: In 2010, Sole Lead Manager, Rs. 5.1 bn
      Television Eighteen India: In 2009, Lead Manager, Rs. 5.04 bn
      Infomedia18 : In 2009, Lead Manager, Rs. 1 bn Open Offer
      Fame India : In 2010, Sole Manager to the Offer, Rs. 1.8 bn
      Zenotech Laboratories : In 2010, Sole Manager to the Offer, Rs. 1.1 bn
      OCL Iron & Steel : In 2009, Sole Manager to the Offer, Rs. 0.56 bn

Delisting

      Sulzer India : In 2010, Sole Manager, Rs. 0.81 bn
      Lotte India Corp: In 2009, Sole Manager, Rs. 0.4 bn
      Avery India : In 2009, Sole Manager, Rs. 0.29 bn

Landmark Transactions

      Tata Motors: First Rights Issue of shares with Differential Voting Rights
      Tata Capital: First public issue of secured Non Convertible Debentures (NCD)
      Daiichi Sankyo Co: Sole Managers to the one of the largest open offers of Rs 68.2 bn
      Bharti Airtel: First 100% Book-Built IPO in India
      HP: First delisting transaction in Indian markets using the Reverse Book-building
       mechanism
      Punjab National Bank: Initiated the Book Building mechanism for Public Sector Banks
      NTPC: First FPO under alternate book building (French Auction) route
       Network 18 : First Rights Issue done on the basis of Partly Convertible Cumulative
        Preference Shares with a three in one structure
       Television Eighteen : First IPO of a News Channel
       Maruti Suzuki: First Government Of India Divestment through IPO
       Sify: Sponsored ADR of an unlisted Indian company
       Man Industries (India): The first Indian offering on the Dubai Financial Exchange to
        tap liquidity in the Middle East
       Infoedge India (Naukri.com): First IPO of a pure-play Internet Company in India



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insightful research coverage and a client focused Sales and Dealing team. A dedicated and
specialized research team ensures flow of well thought-out and well-researched stock ideas and
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New York, Shanghai, Singapore & Hong Kong.
  CHAPTER IV
DATA ANALYSIS
     &
INTERPRETATION
IPO Issues in 2011
Equity                 Issue Price     Current Price     %Gain/Loss
 November-2011
Indo Thai Secu       74.00           12.93             -82.53
 October-2011
Vaswani Ind          49.00           10.99             -77.57
M and B Switch       186.00          68.30             -63.28
Taksheel Solut       150.00          13.53             -90.98
Flexituff Inter      155.00          249.70            61.10
Onelife Capital      110.00          299.20            172.00
Tijaria Polypip      60.00           8.94              -85.10
Prakash Constro      138.00          131.70            -4.57
 September-2011
PG Electroplast      210.00          171.00            -18.57
SRS                  58.00           34.25             -40.95
TD Power System      256.00          244.05            -4.67
Brooks Labs          100.00          14.08             -85.92
 August-2011
Tree House Edu       135.00          214.15            58.63
L&T Finance          52.00           48.95             -5.87
Inventure Grow       117.00          210.20            79.66
 July-2011
Bharatiya Glob       82.00           8.30              -89.88
Readymade Steel      108.00          63.75             -40.97
Birla Pacific        10.00           7.01              -29.90
Rushil Decor         72.00           161.05            123.68
 June-2011
Timbor Home          63.00           28.70             -54.44
VMS Industries       40.00           44.55             11.37
INTERPRETATION:


The above table projects the difference between LTP and Issue price of different
companies in the current year and the positions in the companys are dependent on the market
value only.
                     Based on LTP and Issue price differences we can conclude that the
investor who invested in Rushil Decorand Onelife Capitalgot highest benefit respectively.
        TABLE SHOWING SCRIPS OF FINANCIAL SERVICES
                                                                                    DIFFRENCE
                                             ISSUE
                                 DATE OF                 PRICE     ISSUE            BETWEEN
S.NO   NAME OF THE ISSUE                     SIZE                          LTP
                                 ISSUE                   RANGE     PRICE            ISSUE
                                             (LAKHS)
                                                                                    PRICE &LTP
       Motilal Oswal Financial   20/08/10-
1                                            29.8271     725-825   825     971.20   +146.20
       services Ltd              23/8/10
       ICRA Ltd                  20/03/10-
2                                            25.811      275-330   330     1030     +700
                                 23/03/10
       Power finance             31/01/10-
3                                            1173.167    73-85     85      200.90   +115.90
       Corporation Ltd           06/02/10
       Transwarranty Finance     23/01/10-
4                                            60          48-55     52      29.15    -22.85
       Ltd                       02/02/10
       Emkay share&stock         31/03/09-
5                                            62.50       100-120   120     140.10   +20.10
       brokers Ltd               07/04/09
       Mahindra&Mahindra         21/02/09-
6                                            200         170-200   200     233.95   +33.95
       Financial services Ltd    24/02/09
       Infrastructure
                                 15/07/08-
7      development Financial                 4036        29-34     34      140.10   +106.10
                                 22/07/08
       co. Ltd
       IL&FS Investment Ltd      4/07/09-
8                                            114         110-125   125     194.10   +69.10
                                 08/07/09
       India Infoline Ltd        21/04/08-
9                                            118.78138   70-80     76      849.50   +773.50
                                 27/04/08
       Indian Bulls Financial    06/10/07-
10                                           271.87519   16-19     19      593.10   +574.10
       Services Ltd              10/09/07
INTERPRETATION:


1.The above table reveals that the difference between LTP and Issue Price of Motilal Oswal
Financial services Ltd , ICRA Ltd, Power finance Corporation Ltd , Transwarranty Finance Ltd ,
Emkay share&stock brokers Ltd , Mahindra&Mahindra Financial services Ltd , .Infrastructure
development Financial co. Ltd , IL&FS Investment Ltd , India Infoline Ltd , Indian Bulls
Financial Services Ltd is (+)146.20, (+)700 , (+) 115.90 , (-)22.85 , (+)20.10 , (+)33.95 ,
(+)106.10 , (+)69.10 , (+)773.50 , (+)574.10 respectively.
                         Based on LTP & Issue price differences we can conclude that the
investor who invested in India infoline Ltd and ICRA Ltd got highest gain of Rs.773.50 and
Rs.700 respectively.
                      It can be concluded that the all the above scrip’s are under priced except
Transwarranty Finance Ltd, which is overpriced.


TABLE SHOWING SCRIPS OF ELECTRONICS & ELECTRICAL


                                                                                     DIFFERENCE
                                        ISSUE        PRICE
        NAME          OF   DATE                                ISSUE                 BETWEEN
S.NO                                    SIZE         RANG                 LTP
        ISSUE              OF ISSUE                            PRICE                 ISSUE     PRICE
                                        (LAKHS)      E
                                                                                     & LTP
        MIC
                           30/04/10-
1       Electronics                     51           129-150   150        525.05     +375.05
                           08/05/10
        Ltd
        Redington          22/01/10-
2                                       132.31       95-113    113        320        +207
        (Indian) Ltd       25/01/10
        Autoline           08/01/10-
3                                       37.5         200-225   225        209.95     -15.05
        Industries Ltd     12/01/10
        FIEM               21/09/08-
4                                       41           125-145   137        102.95     -34.05
        Industries Ltd     27/09/08
        Voltamp
                           24/08/08-
5       Transformers                    48.8384      295-345   345        1342.25    +997.25
                           29/08/08
        Ltd
        Opto
                           31/03/08-
6       circuits(India)                 40           240-270   270        532        +262
                           05/04/08
        Ltd
INTERPRETATION:



1. .The above table shows that the difference between LTP and Issue Price of MIC electronics
Ltd , Redington (India) Ltd , Autoline industries Ltd , FIEM industries Ltd , Voltamp
Transformers Ltd , Opto circuits (India) Ltd is (+) 375.05 , (+)207 , (-)15.05 ,
(-) 34.05, (+) 997.25, (+) 262 respectively.
                   Based on LTP and Issue Price differences we can conclude that the investor
who invested in Voltamp Transformers Ltd, MIC Electronics Ltd, Opto Circuits (India) Ltd,
Redington (India) Ltd got benefits of Rs.997.25, Rs.375.05, Rs.262, and Rs.207 respectively.
               It can be interpreted that the conclusion all the above scrip’s are under priced
except Autoline industries Ltd and FIEM industries Ltd , which are over priced.
       TABLE SHOWING SCRIPS OF INFRASTRUCTURE


                                                                          DIFFRENCE
                        DATE        ISSUE
       NAME      OF                            PRICE     ISSUE            BETWEEN
S.NO                    OF THE SIZE                              LTP
       THE ISSUE                               RANGE PRICE                ISSUE PRICE
                        ISSUE       (LAKHS)
                                                                          & LTP
       IVR Prime
       Urban            23/07/10-
1                                   141.5      510-600   550     407.95   -142.05
       developers       26/07/10
       Ltd
       DLF Ltd          11/06/10-
2                                   29         150-175   175     757.45   +582.45
                        14/06/10
       Lanco            06/11/08-
3                                   444.72381 200-240    240     363      +123
       Infratech Ltd    10/11/08
       Atlanta Ltd      1/09/08-
4                                   43         130-150   150     285.90   +135.90
                        07/10/8
       GMR
                        31/07/08-
5      Infrastructure               381.3698   210-250   210     807.65   +597.65
                        04/08/08
       Ltd.
       Patel
                        03/05/08-
6      Engineering                  106.24965 400-440    440     470.10   +30.10
                        09/05/08
       Ltd
       AIA
                        17/11/07-
7      Engineering                  47         275-315   315     1396.50 +1081.50
                        22/11/07
       Ltd
       IVRCL
       Infrastructure 18/03/07-
8                                   31.89870   385-415   395     415.40   +20.40
       & Projects       23/03/07
       Ltd
INTERPRETATION:



The above table reveals that the difference between LTP and Issue Price of in case of DLF Ltd ,
Lanco Infratech Ltd , Atlanta Ltd , GMR Infrastructure Ltd , Patel Engineering Ltd , AIA
engineering Ltd , IVRCL Infrastructure and projects Ltd is (+)582.45 , (+)123 , (+)135.90 ,
(+)597.65 , (+)30.10 , (+)1081.50 , (+)20.40 and IVR Prime Urban developers Ltd is (-)142.05.
               Based on LTP and Issue price differences we can concluded that the investor who
invested in IVR Prime Urban Developers Ltd got loss of Rs.(-)142.05 and other (who invested in
other scrip’s) investor got benefit.
               At the end it can be concluded that the scrip IVR Prime Urban Developers ltd has
been over priced and the others DLF Ltd, Lanco Infratech Ltd, Atlanta Ltd, GMR Infrastructure
Ltd, Patel Engineering Ltd, AIA engineering Ltd, IVRCL Infrastructure and projects Ltd have
been under priced.
       TABLE SHOWING SCRIPS OF TOYS AND TEXTILES


                                                                        DIFFERENCE
                       DATE        ISSUE
       NAME OF                                PRICE     ISSUE           BETWEEN
S.NO                   OF          SIZE                         LTP
       THE ISSUE                              RANGE PRICE               ISSUE PRICE &
                       ISSUE       (LAKHS)
                                                                        LTP
       Gangothri       18/05/08-
1                                  134.14634 41-46      41      21.05   - 19.95
       textiles ltd    23/05/08
       Mudra           08/02/10-
2                                  95.8       75-90     90      66.40   - 23.60
       Lifestyle ltd   14/02/10
       Indus Fila      12/02/10-
3                                  48.43789   170-185   170     216.30 + 46.30
       Ltd             14/02/10
       Kewal kiran     20/03/08-
4                                  31         250-275   260     300     + 40
       clothing Ltd    23/03/08
       Raj Royan       12/01/08-
5                                  85         55-65     65      23.80   - 41.20
       Ltd             18/01/08
       Nitin           06/01/08-
6                                  222.22222 18-21      21      13.50   - 7.50
       Spinners Ltd    12/01/08
       Ginni
                       19/12/07-
7      Filaments                   252.63158 19-22      22      13.90   - 8.10
                       23/12/07
       Ltd
       Celebrity       19/12/07-
8                                  45.50      160-180   180     67.40   - 112.60
       Fashions Ltd    22/12/07
       Bombay
                       11/11/07-
9      Rayon                       134.75     60-70     70      248     + 178
                       17/11/07
       Fashion Ltd
       Provogue        10/06/07-                                        + 736
10                                 40.49402   130-150   150     886
       (India) Ltd     16/06/07
INTERPRETATION:


It is understood from the above table the difference between LTP and Issue price of Gangothri
textiles ltd , Mudra Lifestyle ltd , Indus Fila Ltd , Kewal kiran clothing Ltd , Raj Royan Ltd ,
Nitin Spinners Ltd , Ginni Filaments Ltd , Celebrity Fashions Ltd , Bombay Rayon Fashion Ltd
, Provogue (India) Ltd is (-)19.95 , (-)23.60 , (+)46.30 , (+)40 , (-)41.20 , (-)7.50 , (-)8.10 , (-
)112.60 , (+)178 , (+)736 respectively.
              Based on LTP and Issue Price differences we can concluded that the investor who
invested in Indus Fila Ltd , Kewal kiran clothing Ltd , Bombay Rayon Fashion Ltd and Provogue
(India) Ltd got benefit of Rs.46.30 , Rs.40 , Rs.178 and Rs.736 respectively.
              It can be concluded that the all the above scrip’s are overpriced except
Indus Fila Ltd , Kewal kiran clothing Ltd , Bombay Rayon Fashion Ltd and Provogue (India) Ltd
which is under priced.
TABLE SHOWING SCRIPS OF AVIATION INDUSTRY


                                                                       DIFFERENCE
                      DATE        ISSUE
       NAME OF                                PRICE     ISSUE          BETWEEN
S.NO                  OF          SIZE                          LTP
       THE ISSUE                              RANGE PRICE              ISSUE PRICE
                      ISSUE       (LAKHS)
                                                                       & LTP
       Global
                      29/09/08-
1      Vectra                     35          175-200   185     188    +3
                      06/10/08
       Helicop Ltd
       Deccan         18/05/08-
2                                 245.46      146-175   148     143.70 - 4.30
       Aviation ltd   26/05/08
       Jet Airways    18/02/07-               950-
3                                 172.66801             1100    912.60 - 187.40
       (India) Ltd    24/02/07                1125
INTERPRETATION:
From the above table shows the difference between the Issue price and Last Traded Price in case
of global vector helicop ltd is (+)3 and that of Deccan aviation Ltd and Jet Airways Ltd is (-)4.30
and (-)187.40 respectively.
                      Based on LTP and Issue price differences we can conclude that the
investors who invested in Global vector Helicop Ltd of Rs.3 and the investor of Deccan Aviation
Ltd and Jet Airways Ltd got a loss of Rs.4.30 and 187.40 respectively.
                      At the end it can be concluded that the scrip Global Vector Helicop Ltd
has been under priced and the others Deccan and Jet Airways Ltd have been over priced.
       TABLE SHOWING SCRIPS OF PETROLEUM INDUSTRY


                                                                           DIFFERENCE
                                      ISSUE
       NAME            OF DATE OF                PRICE     ISSUE           BETWEEN
S.NO                                  SIZE                         LTP
       THE ISSUE          ISSUE                  RANGE PRICE               ISSUE PRICE
                                      (LAKHS)
                                                                           & LTP
       Cairn India Ltd    11/12/08-
1                                     3287.99675 160-190   160     173.35 + 13.35
                          15/12/08
       Reliance           13/04/08-
2                                     4500       57-62     60      134.45 + 74.45
       petroleum Ltd      20/04/08
       Gujarat state      24/01/08-
3                                     1380       23-27     27      60.85   + 33.85
       Petronet Ltd       28/01/08
       Oil & Natural
                          05/03/06-
4      Gas                            1425.93300 680-750   750     912.55 + 162.55
                          13/03/06
       Corporation Ltd
       Gas Authority      27/02/06-
5                                     845.6516   195       195     348.95 + 153.95
       of India Ltd       05/03/06
       Indian
                          20/02/06-
6      Petrochemicals                 718.5006   170       170     429.05 + 259.05
                          27/02/06
       Corporation Ltd
       Indra Prastha      28/11/05-
7                                     400        40-48     48      120.10 + 72.10
       Gas Ltd            05/12/05
INTERPRETATION:


It is understood from the above table the difference between LTP and issue price of Cairn India
Ltd , Reliance petroleum Ltd , Gujarat state Petronet Ltd , Oil & Natural Gas Corporation Ltd ,
Gas Authority of India Ltd , Indian Petrochemicals Corporation Ltd , Indra Prastha Gas Ltd is
(+)13.35 , (+)74.45 , (+)33.85 , (+)162.55 , (+)153.95 , (+)259.05 , (+)72.10 respectively.
                       Based on LTP and Issue price differences we can say that the investor
who invested in   Indian Petrochemicals Corporation Ltd and Oil & Natural Gas Corporation Ltd
got highest benefit of Rs.259.05 and Rs.162.55 respectively.
                       It can be concluded that the all the above scrip’s are under priced.
     TABLE SHOWING SCRIPS OF IT SERVICES / TECHNOLOGIES


                                                                             DIFFERENCE
                           DATE        ISSUE
       NAME           OF                          PRICE     ISSUE            BETWEEN
S.NO                       OF          SIZE                         LTP
       THE ISSUE                                  RANGE PRICE                ISSUE PRICE
                           ISSUE       (LAKHS)
                                                                             & LTP
       Everonn
                           05/07/10-
1      Systems India                   5000       125-140   140     752.50   + 612.50
                           11/07/10
       Ltd
       Take Solutions      01/08/10-
2                                      21         675-730   730     1043.20 + 313.20
       Ltd                 07/08/10
       HOV Services        04/10/08-
3                                      40.50      200-240   200     183.20   - 16.80
       Ltd                 07/10/08
       Tech mahindra       01/08/08-
4                                      127.46     315-365   365     1317.50 + 952.50
       Ltd                 04/08/08
       Tulip IT            09/12/07-
5                                      90         100-120   120     880      + 760
       Services Ltd        15/12/07
       Info Edge           30/10/08-
6                                      53.23851   290-320   320     1106.05 + 786.05
       (India) Ltd         02/11/08
       Tata
                           29/07/06-
7      Consultancy                     554.526    775-900   850     1001     + 151
                           05/08/06
       Services Ltd
       Datamatic Tech      12/04/06-
8                                      103        101-110   110     44.50    - 65.50
       Ltd                 19/04/06
       CMC Ltd             23/02/06-
9                                      39.76374   485       485     1010     + 525
                           28/02/06
       Educomp             19/12/07-
10                                     40         110-125   125     3015     + 2890
       Solutions Ltd       22/12/07
       I-Flex Solutions    05/06/04-
11                                     39.617     530       530     1865     + 1335
       Ltd                 11/06/04
INTERPRETATION:


The above table reveals that the difference between LTP and issue price in case of
Everonn Systems India Ltd , Take Solutions Ltd , Tech mahindra Ltd , Tulip IT Services Ltd ,
Info Edge (India) Ltd , Tata Consultancy Services Ltd , CMC Ltd , Educomp Solutions Ltd , I-
Flex Solutions is (+)612.50, (+)313.20 , (+)952.50 , (+)760 , (+)786.05 , (+)151 , (+)525 ,
(+)2890 , (+)1335 and HOV Services Ltd , Datamatic Tech Ltd is (-) 16.80 , (-)65.50
respectively.
                 Based on LTP and Issue price differences we can conclude that the investor who
invested in Educomp Solutions Ltd, I-Flex Solutions and Tech mahindra Ltd got more gain of
Rs.2890, Rs.1335 and Rs.952.50 and the investor of HOV Services Ltd, Datamatic Tech Ltd got
loss of Rs.16.80, Rs.65.50 respectively.
                At the end it can be concluded that the above all scrip’s are under priced except
HOV Services Ltd , Datamatic Tech Ltd which is overpriced.
    TABLE SHOWING SCRIPS OF POWER / ENERGY INDUSTRY


                                                                           DIFFERENCE
                          DATE        ISSUE
       NAME OF                                   PRICE     ISSUE           BETWEEN
S.NO                      OF          SIZE                         LTP
       THE ISSUE                                 RANGE PRICE               ISSUE PRICE
                          ISSUE       (LAKHS)
                                                                           & LTP
       Indowind           21/08/10-
1                                     125        55-65     65      130.25 + 65.25
       Energy Ltd         24/08/10
       Godawari Power     28/03/08-
2                                     86.95      70-81     81      226.50 + 145.50
       & Ispat Ltd        04/04/08
       Gujarat
                          13/10/07-
3      Industries Power               317.4597   63-75     68      79.70   + 11.70
                          19/10/07
       co. Ltd
       Suzlon Energy      23/09/07-
4                                     293.40     425-510   510     1465    + 955
       Ltd                29/09/07
       National
                          07/10/06-
5      Thermal Power                  8658.30    52-62     62      191.60 + 129.60
                          14/10/06
       Corporation Ltd
       GVK Power &
                          02/02/08-
6      Infrastructure                 82.75556   260-310   310     584.05 + 274.05
                          07/02/08
       Ltd
       JaiPrakash
                          22/03/07-
7      Hydro-power                    1800       27-32     32      53.80   + 21.80
                          29/03/07
       Ltd
       Power Trading
                          01/03/06-
8      Corporation of                 584.9999   14-16     16      85.10   + 69.10
                          08/3/06
       India Ltd
       Petronet LNG       01/03/06-
9                                     2609.799   13-15     15      68.55   + 53.55
       Ltd                09/03/06
INTERPRETATION:


It is understood from the above table the difference between LTP and issue price of Indowind
Energy Ltd , Godawari Power & Ispat Ltd , Gujarat Industries Power co.Ltd , Suzlon Energy
Ltd , National Thermal Power Corporation Ltd , GVK Power & Infrastructure Ltd , Jai Prakash
Hydro-power Ltd , Power Trading Corporation of India Ltd , Petronet LNG Ltd is (+)65.25 ,
(+)145.50 , (+)11.70 , (+)955 , (+)129.60 , (+)274.05 , (+)21.80 , (+)69.10 , (+)53.55
respectively.
                Based on LTP and Issue price differences we can concluded that the investor
who invested in Suzlon Energy Ltd and GVK Power & Infrastructure Ltd got highest benefit of
Rs.955 and Rs.274.05 respectively.
                It can be interpreted the conclusion all the above scrip’s are under priced.
TABLE SHOWING SCRIPS OF MEDIA & ENTERTAINMENT /
BROADCAST /FILM INDUSTRY


                                                                           DIFFERENCE
                         DATE        ISSUE
       NAME         OF                           PRICE     ISSUE           BETWEEN
S.NO                     OF          SIZE                          LTP
       THE ISSUE                                 RANGE PRICE               ISSUE PRICE &
                         ISSUE       (LAKHS)
                                                                           LTP
       Raj Television    14/02/10-
1                                    35.6825     221-257   257     222.25 - 34.75
       Network Ltd       23/02/10
       Broadcast         09/02/10-
2                                    85.5        100-120   120     57.60   - 62.40
       Initiatives Ltd   14/02/10
       Global
                         15/01/10-
3      Broadcast                     105 crore   230-250   250     912     + 662
                         18/01/10
       News Ltd
       Prime Focus       25/05/08-
4                                    100 crore   417-500   417     1040    + 623
       Ltd               03/06/08
       Sun TV Ltd        03/04/08-
5                                    68.89       730-875   875     347     - 528
                         07/04/08
       PVR Ltd           08/12/07-
6                                    74          200-240   225     209.30 - 15.70
                         14/12/07
       UTV Software
                         21/02/07-
7      communication                 69.99950    115-130   130     595.05 + 465.05
                         25/02/07
       Ltd
       TV Today          18/12/05-
8                                    145         80-95     95      151     + 56
       Network Ltd       27/12/05
                             CHART SHOWING ISSUE PRICE & LTP

                               1200
                               1000
                                800
                                600
                                400
                                200
                                  0



                                                        IP     LTP


INTERPRETATION:


The above table reveals that the difference between LTP and Issue price of Raj
Television Network Ltd , Broadcast Initiatives Ltd , Global Broadcast News Ltd , Prime Focus
Ltd , Sun TV Ltd , PVR Ltd , UTV Software communication Ltd , TV Today Network Ltd is (-
)34.75 , (-)62.40 , (+)662 , (+)623 , (-)528 , (-)15.70 , (+)465.05 , (+)56 respectively.
                       Based on LTP and Issue price          differences we can conclude that the
investor who invested in Global Broadcast News Ltd , Prime Focus Ltd , UTV Software
communication Ltd , TV Today Network Ltd got benefit of Rs.662 , Rs.623 , Rs.465.05 , Rs.56
and the investor of Raj Television Network Ltd , Broadcast Initiatives Ltd , Sun TV Ltd and
PVR Ltd got a loss of Rs.34.75 , Rs.62.40 , Rs.528 and Rs.15.70 respectively.
                       At the end it can be concluded that the scrip’s Global Broadcast News Ltd
, Prime Focus Ltd , UTV Software communication Ltd , TV Today Network Ltd have been
under priced and the other scrip’s Raj Television Network Ltd , Broadcast Initiatives Ltd , Sun
TV Ltd and PVR Ltd have been over priced
 TABLE SHOWING SCRIPS OF MANUFACTURING INDUSTRY


                                                                         DIFFERENCE
                                    ISSUE
       NAME         OF DATE OF                PRICE     ISSUE            BETWEEN
S.NO                                SIZE                        LTP
       THE ISSUE        ISSUE                 RANGE PRICE                ISSUE PRICE
                                    (LAKHS)
                                                                         & LTP
       Bharat
                        27/06/07-             1020-
1      Earthmovers                  49                  1075    1246.20 + 171.20
                        03/07/07              1090
       Ltd
       Decolight        24/05/07-
2                                   4254.60   45-54     54      28.45    - 25.55
       ceramics Ltd     29/05/07
       Nissan Copper    04/12/06-
3                                   2500      33-39     39      33.15    - 5.85
       Ltd              08/12/06
       NITCO Tiles      22/02/06-
4                                   100       140-168   168     241.50   + 73.50
       Ltd              27/02/06
       Gitanjali Gems 16/02/08-
5                                   170       170-195   195     295.50   + 100.50
       Ltd              21/02/08
       Triveni
                        18/11/07-
6      Engineering &                500       42-50     48      136.55   + 88.55
                        25/11/07
       Industries Ltd
       Shree Renuka     07/10/07-
7                                   40        250-300   285     700.50   + 415.50
       Sugars Ltd       14/10/07
       Emami Ltd        04/03/07-
8                                   50        60-70     70      222.30   + 152.30
                        10/03/07
       Bharathi         02/12/06-
9                                   125       55-66     66      558.55   + 492.55
       Shipyard Ltd     08/12/06
       Maruthi          12/06/05-
10                                  794.676   115       125     920.25   + 795.25
       Udyog Ltd        19/06/05
INTERPRETATION:


It is understood from the above table the difference between LTP and Issue price of Bharat
Earthmovers Ltd , Decolight ceramics Ltd , Nissan Copper Ltd , NITCO Tiles Ltd , Gitanjali
Gems Ltd , Triveni Engineering & Industries Ltd , Shree Renuka Sugars Ltd , Emami Ltd ,
Bharathi Shipyard Ltd , Maruthi Udyog Ltd is (+)171.20 , (-)25.55 ,(-)5.85 , (+)73.50 , (+)100.50
, (+)88.55 , (+)415.50 , (+)152.30 , (+)492.55 , (+)795.25 respectively.
                      Based on LTP and Issue price differences we can conclude that the
investor who invested in Maruthi Udyog Ltd, Bharathi Shipyard Ltd, and Shree Renuka Sugars
Ltd got highest gain of Rs.795.25, Rs.492.55 and Rs.415.50 respectively.
                      It can be interpreted the conclusion all the above scrip’s are under priced
except Decolight ceramics Ltd and Nissan Copper Ltd which is overpriced.
    TABLE SHOWING SCRIPS OF BANK INDUSTRY
                                                                          DIFFERENCE
                                      ISSUE
       NAME OF THE DATE OF                      PRICE     ISSUE           BETWEEN
S.NO                                  SIZE                        LTP
       ISSUE              ISSUE                 RANGE PRICE               ISSUE PRICE
                                      (LAKHS)
                                                                          & LTP
       Central Bank of    24/07/07-
1                                     800       85-102    102     142.25 + 40.25
       India              27/07/07
       ICICI Bank Ltd     19/06/07-   87,500
2                                               885-950   940     971     + 31
                          22/06/07    million
       Indian Bank        05/02/07-
3                                     859.5     77-91     91      161     + 70
                          09/02/07
       Development        29/09/06-
4                                     715       22-26     26      108.90 + 82.90
       Credit Bank Ltd    06/10/06
       Union Bank of      15/02/06-
5                                     450       100-110   110     152     + 42
       India              21/02/06
       Andhra Bank        16/01/06-
6                                     850       82-90     90      95.80   + 5.80
                          20/01/06
       Bank of Baroda     16/01/06-
7                                     710       210-230   230     311.10 + 81.10
                          20/01/06
       Syndicate Bank     07/07/05-
8                                     500       46-50     50      89.05   + 39.05
                          13/07/05
       Yes Bank Ltd       15/06/05-
9                                     700       38-45     45      186.30 + 141.30
                          21/06/05
       Oriental Bank of   25/04/05-
10                                    580       235-260   250     234.50 - 15.50
       Commerce           29/04/05
       Allahabad Bank     06/04/05-
11                                    1000      75-82     82      97.75   + 15.75
                          12/04/05
       Punjab National    07/03/05-
12                                    800       350-390   390     514     + 124
       Bank               11/03/05
INTERPRETATION:


The above table depicts that the difference between LTP and Issue price of Central Bank of India
, ICICI Bank Ltd , Indian Bank , Development Credit Bank Ltd , Union Bank of India , Andhra
Bank , Bank of Baroda , Syndicate Bank , Yes Bank Ltd , Allahabad Bank , Punjab National
Bank is (+)40.25 , (+)31 , (+)70 , (+)82.90 , (+)42 , (+)5.80 , (+)81.10 , (+)39.05 , (+)141.30 ,
(+)15.75 , (+)124 and that of Oriental Bank of Commerce is (-) 15.50.
                      Based on LTP and Issue price differences we can conclude that the
investor who invested in Yes Bank Ltd and Punjab National Bank got highest benefit of
Rs.141.30, Rs.124 and the investor of Oriental Bank of Commerce got a loss of Rs.15.50
respectively.
                      At the end it can be concluded that the above all scrip’s have been under
priced except Oriental Bank of Commerce which is overpriced.
TABLE SHOWING SCRIPS OF PHARMA / CHEMICAL /HEALTH / BIO-
PHARMA INDUSTRY


                                                                           DIFFERENCE
                          DATE        ISSUE
       NAME OF THE                               PRICE     ISSUE           BETWEEN
S.NO                      OF          SIZE                         LTP
       ISSUE                                     RANGE PRICE               ISSUE PRICE
                          ISSUE       (LAKHS)
                                                                           & LTP
       Advanta India Ltd 26/03/10-
1                                     33.8       600-650   640     1036    + 396
                          30/03/10
       AMD Metplast       15/02/10-
2                                     90.9652    65-75     75      45.70   - 29.30
       Ltd                23/02/10
       SMS
                          05/02/10-
3      Pharmaceuticals                25.77      360-380   380     293.45 - 86.55
                          08/02/10
       Ltd
       Plethico
                          10/04/08-
4      Pharmaceuticals                39.2856    280-300   300     402     + 102
                          17/04/08
       Ltd
       Nectar Life        22/06/07-
5                                     38.70      200-240   240     248.50 + 8.50
       sciences Ltd       28/06/07
       Indoco Remedies    17/12/06-
6                                     30         220-245   245     246.75 + 1.75
       Ltd                23/12/06
       Dishman
                          29/03/06-
7      Pharmaceutical &               34.33500   155-175   175     298.30 + 123.30
                          07/04/06
       Chemical Ltd
       Biocan Ltd         11/03/06-
8                                     100        270-315   315     451.95 + 136.95
                          18/03/06
INTERPRETATION:


The above table projects the difference between LTP and Issue price of Advanta
India Ltd , AMD Metplast Ltd , SMS Pharmaceuticals Ltd , Plethico Pharmaceuticals Ltd ,
Nectar Life sciences Ltd , Indoco Remedies Ltd , Dishman Pharmaceutical & Chemical Ltd ,
Biocan Ltd is (+)396 , (-)29.30 , (-)86.55 , (+)102 , (+)8.50 , (+)1.75 , (+)123.30 , (+)136.95
respectively.
                      Based on LTP and Issue price differences we can conclude that the
investor who invested in Advanta India Ltd and Biocan Ltd got highest benefit of Rs.396 and
Rs.136.95 respectively.
                      It can be interpreted that the conclusion all the above scrip’s are under
priced except AMD Metplast Ltd and SMS Pharmaceuticals Ltd which is overpriced.
               CHAPTER-V


MARKET RADAR
FINDINGS
SUGGESTIONS
CONCLUSIONS
BIBLIOGRAPHY




MARKET RADAR
Findings:


   The IPO returns are more when comparing with nifty returns for the year 2006 to 2011.
   Educomp Solution , Rushil Decorand Onelife Capitalhas given highest benefit to the
     investor.
   Sun TV Ltd has given highest negative benefit to the investor.
   This study reveals IPO given 77% positive result and 33% negative result or benefit to
     investor.
   Investors more crazy about the new issues or IPO.
Suggestions:

   The returns of IPO’s are higher when compare to benchmark portfolio of Nifty. So an
     investor can invest in IPO’s for better returns.

   There is a probability of listing a stock returns in positive is 77% and negative is 33%.

   Investor need to develop a long term investment mindset rather than short term
     investment to get more returns or for achieving financial goals

   A good investor should diversifies and reduces his risk by investing in different securities
     which contained different risks and returns in order to achieve his goals

   An easy solution to investor is to invest in to mutual fund schemes through a systematic
     investment plan (sip) the mutual fund gives you a well diversified, professionally
     managed portfolio at low cost

   Investor need to aware of new information, which reflects wider changes in share prices.




                            CONCLUSIONS
 It can be observed that it is safe for the general public to invest in different sectors of
   primary market in present than in the past because SEBI has been introduced and it
   controls the operations and working of new issue market


 Primary market returns are very attractive in short period especially on the day of listing.
   But investors in IPO’s should take wise decision in choosing the best company.


 From the overall study it can be concluded that the highest positive difference between
   Issue price and LTP is Educomp Solutions Ltd. scrip.


 The conclusion from the study is that the highest negative difference between Issue price
   and LTP is Sun TV Ltd scrip.


 The study reveals that the scrip’s of Textiles and Media industries have highest negative
   difference between LTP and Issue price.


 The study shows that the scrip’s of Bank and Power or Energy industries have highest
   positive difference between LTP and Issue price.




                            BIBLIOGRAPHY
Books Referred :-
    SECURITY ANALYSIS AND
       PORTFOLIO MANAGEMENT      ---- PUNITHAVATHY PANDIAN
    ESSENTIALS OF FINANCIAL
       MANAGEMENT                ---- I.M. PANDEY
    INDIAN CAPITAL MARKETS      ---- SANJEEV AGARWAL


Website Referred:-
      www.nseindia.com
      www.capitalmarket.com
      www.sebi.com
      www.google.com
      www.icicisecurities.com

								
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