CHAPTER-I

INTRODUCTION

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 1.1 INTRODUCTION

Initial Public Offering (IPO) is a companys offering of newly issued shares from
treasury to general public .it is generally the first time that a company does so-making the
transition from being a closed door privately operated company to being a public traded,
highly visible, entity. When doing an IPO, an under writer ,i.e. a share broker firm,
handles the distribution of shares to the public effectively, the brokerage firm
subscribers(underwriters) for the shares and then sell to the clients(investors).After the
IPO the shares will then trade on a stock exchange, it is sometimes referred to as going
to the public entrepreneurs and VCs(venture or vulture capitalists sometimes call it
cash in up until a company is public(i.e. anyone can buy or sell its shares) ,it is private
and operates away from the lime light. Companies often go to public to raise huge
amount of money or to give up investors liquidity.
An initial public offering is the point at which a company ceases to be privately held and
becomes publicly held and IPO requires that a company become listed on a stock
exchange, and that its shares become publicity traded. Going public places very stringent
reporting requirements on the company and the sale of shares brings in new investment
monies that the company can then use to grow.

1.2 DEFINITION OF IPO:

Abbreviation for Initial Public Offering. An IPO is a companys first sale of
stock to the public; also refer to as going to the public.
The flotation of private company on the stock exchange.
The sale or distribution of a stock of a portfolio company to the public to the first to the
public.
The first time a company listed on the stock exchange is known as an IPO, new shares
issuer or floatation. It is away for company to raise cash-and their profiles.

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1.3 SECONDARY ISSUE:

PUBLC ISSUE BY EXISTING LISTED COMPANIES:

Such companies are allowed to raise fresh capital by freely pricing their further of
equity they however have to meet the entry norms of dividend payments in the
immediately preceding three years if the post issue .net worth become more than five
times than pre issue net issue. The issue price has to be determined by the issuer in the
consultation with the lead manager. The prospectus/offer document should contain the net
value of the company as well as justification for price of the issue. The low and high
prices of the last two years need to be mentioned. The company wishing to enhance their
foreign shareholding up to 51% or more as permissible under the relevant guidelines of
RBI/government can make issues at the price determined by the share holders in a special
revolution.

REASONS FOR GOING TO THE PUBLIC:

Raising funds to finance capital expenditure programs like expansion,

diversification, modernization, etc.

Financing of increased working capital requirements.

Financing acquisitions like a manufacturing unit, brand acquisitions, tender offers

for shares of another firm etc.

Debit financing.

Exit root for exiting investors.

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ADVANTAGES OF GOING TO IPO:
Money non-refundable except in the case of winding up or buy back of shares.
No financial burden i.e. no fixed rate of interest payable. However, in order to
service the equity, dividend may be paid.
Enhances shareholders value of the company performs well.
Greater transferability.
Training and listing of securities at stock exchanges.
Better liquidity of shares.
Enables valuation of the company.
Helps building reputation of promoters, company data products/services, provided
the company performs well.

DISADVANTAGES OF GOING TO IPO:

Dilution of ownership stake makes the company potential vulnerable for future
takeovers.
Involves substantial expenses ranging between 4% and 15% of the size of the
issue.
Several legal formalities.
Transparency requirements and public disclosure of information may lead to lack
of the privacy.
Continuous compliance of provisions of listing agreement and other legal
requirements.
Constant scrutiny of performance by investors.
May lead to takeover of company.
Securities of the company may be made subjective to speculative attacks.
There is no mandatory requirement of minimum promoters contribution and lock in
period in case of issues of securities by a company, which has been listed for last three
year track record of dividend payment, out of preceding five years. However, promoters
have disclosed the extent of their participation in the public/right issue.

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1.4 OBJECTIVES OF THE STUDY:

1] About the various parties involved along with the company for making an IPO.

2] To study the views of the investors towards companies offering stocks through
IPO.

3] To know the key terms and various stages in an IPO process.

4] To know how the shares are valued and the different methods of pricing them in an
IPO.

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1.5 NEED FOR THE STUDY:

This study is useful to the investors to taking decisions relating to investments in

IPO.

By comparing the Networth with other IPOs like Claris Life Sciences Limited,
Moil Ltd in the area of risk and returns, investor will make decisions easily.

Study about the IPO process helps to know about the various procedures,
Requirements and need for the company for making an IPO.

The process made through the analysis of success and failure of various IPOs
makes clear about the decisions that have to be taken for making an IPO success.

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1.6 SCOPE OF THE STUDY:

The IPOs have been taken between Nov 2013 to Dec 2013 all IPOs are Indian
companies.

To make an initial public offering (IPO), the companies have to look into the
various aspects like what guidelines it has to follow, the procedure for coming to
public issue of shares for the proposed objective.

Scope of this project is limited to the guidelines and procedures

For Coming to an IPO.

Scope is limited to mentioned companies which recently came for an IPO their
strengths and weaknesses for succeeding in an IPO.

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1.7 RESEARCH METHODOLOGY

The study is based on secondary data.

Sources Of Data
1] The Internet
2] Reference from magazines, newspapers
3] Company websites

METHODOLOGY:

Various procedures and requirements for making an IPO are

Studied. Analysis of two different IPOS is made by representing through Bar- Diagram
and its interpretation.

LIMITATIONS OF THE STUDY

Considerable information has been extracted from the financial statements and
documents provided to NETWORTH by its client companies.

Concerned is not furnished in these documents, the same is due to the confidential
nature of the information.

Although initial public offers are issued by many companies, this study is
confined to a few companies only. These are companies that fall with in the
clientele NETWORTH.

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 The study was limited to the information willingly shared by the authorities and
clients NETWORTH.

CHAPTER-II
LITERATURE REVIEW

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2.1 ABOUT INDIAN BROKERAGE INDUSTRY:

Indian brokerage industry dates back to 1850s, but started growing strongly in the
1990s After the creation of the regulatory body, the Securities Exchange Board of India
(SEBI)and incorporation of NSE. But competition is intense as there are far too many
brokers -almost double the number of brokers in the US - competing for a much smaller
market.The market is extremely fragmented with the top 5 firms accounting for only
14.6% of the turnover share during FY08.

The brokerage market is largely retail and the retail investors are spread across
the country (with majority from Mumbai). Online trading channels can play an important
part in catering to the regional spread and has indeed shown good growth (30.6% CAGR
in number of internet enabled brokerage firms, 71.1% CAGR in number of customers and
49.7%CAGR in share of total traded value since 2003). However, retail investors have
shown an over whelming preference for non-delivery based trading (70.8% of the total
cash market turnover during FY08). Intra-day trading makes physical distribution
channel necessary Because it offers high market data latency and proximity to trading
advice of the brokers/Other investors.
High competition has resulted in a steady compression of brokerage commissions
over the years and intensely since 2008 when Reliance Money, one of the new entrants
with a massive physical distribution network, dropped it to extremely low levels. For a
relatively young market, commissions are lower than even in the advanced markets. In
order to improve profitability, top firms have been consciously trying to broaden their

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portfolio of services. Overall, from here, the industry will likely traverse the following
path:
Likely recovery of trading turnover in FY10.
Further consolidation of the market share of the top 100 brokers. Possible decline in
The number of brokers but increase in the number of sub-brokers.
Rise in market share of Reliance Money but muted industry profitability in the short
And medium term.
Gain in FII market share by few of the top domestic brokerages.

INDIAN FINANCIAL SYSTEM:

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2.2 WHAT IS FINANCIAL MARKET:

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 Financial Markets are place where financial instruments are made to
purchase or sell indirectly through intermediaries. This may be a physical location (like
the NYSE) or an electronic system (like NASDAQ). Much trading of stocks takes place
on an exchange; still, corporate actions are outside an exchange, while any two
companies or people, for whatever reason, may agree to sell stock from the one to the
other without using an exchange.

Trading of currencies and bonds is largely on a bilateral basis, although some bonds trade
on a stock exchange, and people are building electronic systems for these as well, similar
to stock exchanges.

Financial markets can be domestic or they can be international.

Types of financial markets:

The financial markets can be divided into different subtypes:

A] Capital markets which consist of:

1] Stock markets, which provide financing through the issuance of shares or

common stock, and enable the subsequent trading thereof.

2] Bond markets, which provide financing through the issuance of bonds, and
enable the subsequent trading thereof.

B] Commodity markets, which facilitate the trading of commodities.

C] Money markets, which provide short term debt financing and investment.

2.3 INTRODUCTION TO IPO:

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Definition:

Initial public offering:

Initial public offering (IPO), also referred to simply as a "public

offering" or "flotation," is when a company 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. However, in order to make money,
calculated risks need to be taken.

Reasons for listing:

When a company lists its shares on a public exchange, it will almost

invariably look to issue additional new shares in order to raise extra capital at the same
time. The money paid by investors for the newly-issued shares goes directly to the
company in contrast to a later trade of shares on the exchange, where the money passes
between investors. An IPO, therefore, allows a company to tap a wide pool of stock
market investors to provide it with large volumes of capital for future growth. The
company is never required to repay the capital, but instead the new shareholders have a
right to future profits distributed by the company and the right to a capital distribution in
case of dissolution.

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The existing shareholders will see their shareholdings diluted as a proportion of the
company's shares. However, they hope that the capital investment will make their
shareholdings more valuable in absolute terms.

In addition, once a company is listed, it will be able to issue further shares via a rights
issue, thereby again providing itself with capital for expansion without incurring any
debt. This regular ability to raise large amounts of capital from the general market, rather
than having to seek and negotiate with individual investors, is a key incentive for many
companies seeking to list.

Introduction of IPO in context of Indian market:

The Indian primary market has come a long way particularly in the last decade
after deregulation of the Indian economy in 1991-92. Both the primary and secondary
markets have had their fair share of reforms, structural cum policy changes time to time.
The most commendable being the dismantling of the Controller of Capital Issues (CCI)
and introduction of the free pricing mechanism. This changed the whole facet of Initial
Public.

Around 80 IPOs made its entry into stock market in this year, which was never
in the history of Indian capital market. Maximum number of issues received enormous
response from the investors. Coal India IPO which is raising around 15,000 crores is
making its entry into stock market in this October, it is considered to be the largest IPO
ever made in the Indian history. Many experts are viewing that its going to change the
Indian economic scenario.

Industries raises finance from capital markets through various instruments like
1] Equity finance
2] Debt finance

IPOS comes under equity finance and debt finance. During the last decade,
more than a third of the increase in net assets of large firms in Chile, South Korea,
Malaysia, Mexico, Taiwan and Thailand has been secured through equity issuance. This

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pattern contrasts sharply with that of the industrial countries, in which equity financing
during the same period has accounted for less than 5 percent of the growth in net assets.

Future of the capital market :

In the liberalized economic environment, the capital market is all set to play a
highly critical role in the process of economic development. The Indian capital market
has to arrange funds to meet the financial needs of both domestic and foreign resources.
What is more critical is that the changed environment is characterized by cutthroat
competition. Ability of enterprises to mobilize funds at cheap cost will determine their
competitiveness.

Changes in the capital market:

Four sets of changes in the Indian capital market can be identified which set the
market of the twenty-first century different from what obtained earlier. These can be
categorized as follows:

1] Introduction of new institutions

2] Introduction of new instruments

3] Changes in administrative control and regulatory framework

4] Some recent initiatives

Introduction of New Institutions :

The composition of the Indian capital market has undergone a total change. Till very
recent times, Bombay Stock Exchange dominated the capital market in India. The daily
turnover on the Bombay Stock Exchange (BSE) alone exceeded the total turnover of all
other exchanges put together. The BSE with the monopolistic claw like control over the
market was posing a severe constraint on the spread and diversification of the capital
market culture. It was content with practicing non-transparent time and resource

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consuming trading practices that failed to evoke confidence among new investors, both in
primary and secondary market. Its trading practices were becoming somewhat totally out
of tune with the ongoing communication revolution in India and worldwide. In response
to this, the most important are the OTCEI and NSE. What is more important is that the
NSE has worked as a catalyst of change for other exchanges, which are introducing on-
line trading systems.

Along with NSE, mutual funds have also emerged in the country. Different
types of mutual funds catering to the needs of different types of investors have been set
up in the country. The increasing growth of the capital market has witnessed the
mergence of foreign institutional investors (FIIs) as significant players. Their sale and
purchase decisions are already having a significant impact on the market conditions.

Along with these new players, a set of new supporting institutions have also
emerged on the horizon such as the Discount and Finance House of India, Securities
Trading Corporation of India, Stock Holding Corporation of India, settlement and
depository systems, etc.

Introduction of New Instruments

Along with new institutions, new instruments have emerged on the capital
market. These encompass both the domestic instruments and foreign instruments. Many
new instruments of finance have already been introduced in recent years. Still, the current
intensity of the Indian financial market reveals that there is a tremendous scope to deploy
new financing instruments connected to equity, debentures, bonds, add-on products and
derivatives. This may require appropriate changes in certain economic legislations and
the will on the part of the Indian corporate enterprises to take risks and tune their
decision-making to the investor psychology and market preferences.

Changes in Rules and Regulations

Responding to the changes in the environment, the administrative framework has also
undergone a total overhaul. The earlier chains have been totally removed. The Controller

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of Capital Issues has been done away with. The Indian capital market has been left free to
find its own depth and strength. However, it is a paradox of a free market economy that
whenever chains are removed effective watchdogs have to be employed. This latter
function has now been entrusted to the Securities and Exchange Board of India. The
SEBI in turn has been laying down guidelines to be followed by different players in the
different segments of the market.

Some Recent Initiatives

Buy-back of shares by corporate has been permitted; this will enable the
promoters of Indian companies to consolidate their positions.
Disclosure of end use of funds rose in public issue in annual statements; it will
impart transparency to the manner in which the funds raised from the public are
deployed. This will also impose greater accountability on companies.

One-time waiver of capital gains tax for corporatization of stock broking tickets;
this will result in speeding up the pace of professionalization of stock broking
operations, which will benefit investors.

Provision of nomination facility in share certificates; this will ease procedures for
transfer of shares in the names of the nominee in case of death of the shareholder.

In short, the capital market has witnessed metamorphic changes in recent past and is all
set to meet the varied needs of the changed liberalized economic environment.

2.4 ABOUT IPO:

ENTRY NORMS WHO CAN COME WITH A PUBLIC ISSUE:
Entry forms for public issuers are governed by the SEBI guide lines, SEBI
(Disclosure for investor and protection), guidelines, 2000; SEBI keeping in view the
objective of greater transparency, investor protection and development of capital market,
as from time to time amended the entity norms for companies to come out with public
issue, entry norms are categorized into the following:

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 Unlisted companies
Listed companies

Unlisted companies:
Unlisted companies those public limited companies, which are presently not listed
at any of the recognized stock exchange in India. The shares of such companies are
therefore not traded at any of the stock exchange in India.

1st option
IT should have a trade records of distribution profits for at least 3 out of
immediately preceding 5 years and
The pre issue net worth (i.e. net worth before the issue) should be at least Rs
1crore in 3 out of 5 years, with the minimum net worth in the immediately preceding 2
years.
The issue size (includes offer to public, firm allotment, promoters contribution
through offer document) should not exceed 5 times its pressure net worth as per the last
available audited accounts.

2nd option
With the recent guidelines amended on August 04, 2000 SEBI has amended the
second option available for an unlisted companies. Earlier the guidelines stated that if the
company is not able to satisfy the first option as mentioned above, the company can come
out with the public issue provided the project is appraised by any bank or financial
institution with at least 10% of the project cost is financed by such appraiser.
As per the recent guide lines, if the company is unable to satisfy the first option or
if the issue size is more than 5 times its pre issue net worth, then the second option to
come with the issue is through the book building process only.
The issue can come out through book building process provided 60% of the issue
size is allotted to the qualified institutional buyers (QIB). If the company fails to allot
60% of the issue size to the QIB the entire money so received shall be refunded.

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Listed companies:
Listed companies are those which are presently listed on any one or more
recognized stock exchanges in India the securities of such companies are traded on such
stock exchanges where they are listed. Listed companies can come out with future public
issue provided the net worth of the company after the proposed issue is less than 5 times
the net worth prior to the issue , the company should comply with any of the options as
available for unlisted companies.

2.5 ROLE OF SEBI REGULATORY BODY:

Up to 1992, the capital market was controlled by the controller of the capital issue
(CCI) formed under the capital issue controlled act. During that period, the pricing of the
capital issued was controlled by the CCI. The premium on issue of the equity shares
issued through the primary markets was done in accordance with the capital issued act.
The CCI guidelines were abolished with the introduction of securities &exchange
board of India (SEBI) formed under the SEBI act, 1992 with the prime objective of
protecting the interest of investors in securities, promoting the development and
regulating, the securities market and matters connected there with or incidental there to.
The SEBI act came into force on 30th January, 1992 and with its establishment, all
public issues are governed by the rules regulations issued by SEBI. SEBI was formed to
promote far dealing in issues of securities and to ensure that the capital market functions
efficiently, transparently economically in the interest of both the issuer and the investors.
The promoters should be able to raise funds at a relatively low cost. At the same
time, the investor must be protected from unethical practices and their rights must be
safeguarded so that there is a steadily flow of saving into the market. There must be
proper regulation and code of conduct and fair practice by intermediaries to make them
competitive and professional.
Since its formation, SEBI has been instrumental in bringing greater transparency
in capital issues. Under the umbrella of SEBI, companies issuing shares are free to fix the
premium provided adequate disclosure is made in the offer document. Focus being the
greater investor protection, SEBI has become a vigilant watchdog.

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What are the decisions to be taken by a company for coming to an IPO:

The IPO decision is depends on the following two stages the pre IPO stage

and the post IPO stage. The pre IPO stage relates to the timing of an IPO decision, while

the post IPO stage is about continuance or discontinuance of the listed status. Timing of

an IPO is a strategic, financial and merchant banking decision. The strategic decision is to

determine whether listing fits into the companys overall strategy and if so, whether the

company is mature enough for it.

The financial decision to make is to decide whether a company needs the capital

proposed to be raised, how much is to be raised and how effectively it should be

deployed. The merchant banking decision is made to determine the appropriate structure,

pricing, timing and marketing strategy for the IPO.

What are the dimensions in decisions involved in making an IPO:

STATEGIC DIMENSIONS:

Strategically speaking a company should go for an IPO only when it is mature enough for

it. This depends on the following points:

Does the company need the IPO as a liquidity event for its existing investors? In

other words, are there no private exit options available so that the IPO can be

pushed further into the future?

Has the company matured enough to unlock the value?

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 Is the companys business model retail-oriented with a strong brand presence so

as to identify with the retail investor?

Is the companys visibility in the market is sufficient enough for investors to

perceive its business model to the full extent and unlock value for its share

holders through the IPO?

THE FINANCIAL DIMENSION:

The next dimension of the IPO decision is a financial one. In capital intensive industries

and large industries such as heavy engineering, automobiles, infrastructure and some

other industries the business model is so large that going public could become inevitable

in order to maintain balance in the capital structure. They would require IPO and some

multiple rounds of offers after IPO to keep financing their growth and consolidation.

Therefore, in such cases, IPO and public offers are more of financing decisions than

strategic.

The same is true of certain start-up businesses that need to look at an IPO more as a

source of finance than as a strategic move.

The second financial aspect relating to the IPO decision is to evaluate if unlocking value

through an IPO is the need of the hour or whether other options are available. Strategic

sale of equity happens through the private window that realizes better value for the

company than an IPO since private investors offer valuations significantly higher than

what the company gets from an IPO.

The third aspect of the financial decision is to evaluate how much capital is proposed to

be raised through the IPO and its deployment. Generally, IPOs that have well laid out

investment plans sell better than those that do not have convincing application for the

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funds. Investors need to be shown an investment avenue in the company that can generate

the expected return on their funds.

THE MERCHANT BANKING DECISION:

Lastly, the IPO is also driven by merchant banking considerations. Merchant bankers take

a call on the IPO proposal based on the business plan and financial position of the

company, expected future performance, prevailing conditions in the primary market,

expected issue pricing, size of the offer and post issue capital structure. The key drivers

for the merchant banker are the market conditions, own placement strength and the main

selling points in the issue. On the other hand, if the promoters are bringing in additional

contribution in the issue at the same issue price, it adds to the marketability of the issue.

Usually in strong market conditions, merchant bankers tend to be aggressive and push

companies to go public. The logic put forward in such times is that when there is money

for the taking at good pricing, issuers go ahead and make use of best opportunity even if

they have no use of for the funds right away.

To summarize and conclude the decision of IPO the following points are prominent.

Timing is an important criterion in the IPO decision.

The IPO decision should be taken considering the strategic, financial and

merchant banking considerations.

For certain projects and business, going public is an imperative. In such cases, the

IPO should be structured to deliver the best results.

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2.6 Key Concepts:

IPO- Initial Public Offer is the first public issue of fresh equity or convertibles by

a company due to which its share gets listed on the stock exchange.

Public Issue - An invitation by a company to public to subscribe to the securities

offered through a prospectus.

Offer for sale- An offer of securities by the existing share holders to the public for

subscription.

Rights Issue - An issue of cap ital under sub-section (1) of sec 81 of the

companies Act, 1956 to be offered to the existing shareholders of the company

through a letter of offer.

Preferential Allotment- An issue of capital made by a body corporate in

pursuance of a resolution passed under sub-sec (1A) of sec 81 of the companies

Act, 1956.

Private Placement- An offer made to select private investors known to the issuer

through a private arrangement to the exclusion of the general public.

Lock-in- A specified time period during which shares are cannot be sold,

transferred and pledged in any way.

QIBs- Qualified Institutional Buyers shall mean public financial institutions as

defined under sec 4A of companies Act, scheduled commercial banks, mutual

funds, foreign institutional investors registered with SEBI, venture capital funds

and insurance companies registered with SEBI, provident funds and pension

funds with a minimum corpus of Rs. 25 crore and state industrial development

corps.

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 PRE-ISSUE OBLIGATIONS:

The company selects the investment Banker(s) for handling the issue. The lead
merchant banker should maintain a standard of due diligence that he would satisfy
himself about all the aspects of offering, Veracity and adequacy and adequacy of
disclosure in the offer documents. The merchant banker is also liable even after
the completion of issue process. The lead merchant banker should pay a requisite
fee in accordance with regulation 24A of the SEBI (Merchant Banker) Rules and
regulations, 1992, along with draft offer document filed with the Board.

The following documents should be submitted along with the offer document by
the lead Manger:

Memorandum of understanding (MOU)

Inter-Allocation of Responsibilities

Due Diligence Certificate

Undertaking List of promoters Group

PRICING, STRUCTURING AND REQUIREMENTS OF AN IPO:

Issue Pricing:

The Securities and Exchange Board of India (SEBI) introduced free pricing of shares for

public offerings in 1992. As per the current guide lines (Disclosure and Investor

Protection guide lines 2000), every company either unlisted or listed, which is eligible to

make a public issue can freely price its shares.

The first step in formulating an issue structure is pricing of the issue. This is one

important thing done by the merchant banker in public offering. Appropriate price can not

only ensure success of the issue but provide good returns to the prospective investors as

25
well. Therefore, proper issue pricing can be a win-win situation for the company and

investor as well.

The merchant banker usually arrives at an approximate pricing for the issue and tries to

carry the management of the company with him on the pricing. Over pricing an issue is

an over kill that should be avoided even if it results in short term gain for the issuer and

the merchant banker.

Pricing issue is done keeping in mind the qualitative features, and by using selective

multiples as benchmarks than through the conventional approach of the discounted cash

flow method. The usual parameters used are the Price to Earnings Ratio and Price to

Book value Ratio. In addition to the above, the following points have to be kept in mind:

Projected earnings of the company cannot be used as a justification for the issue

price in the offer document.

The accounting ratios should be calculated after giving effect to the consequent

increase in capital on account of compulsory conversions outstanding, as well to

subscribe for additional capital shall be exercised.

Comparison of all the accounting ratios of the issuer company as mentioned

above has to be made with the industry average and with the other companies.

Issue Structuring:

The issue structure refers to the following points

The face value of the share, the premium thereon and the final price. In book built

issues, the final price is not done until after the bidding is over, but a floor price is

determined.

The minimum amount of subscription per applicant and the maximum.

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 The terms of the issue with regard to payment of the offer price and eligibility

criteria for applicants.

Firm allotments if any and any other details thereof, as per applicable DIP guide

lines.

Net public offer.

Underwriting, either mandatory or discretionary.

Cost parameters for the issue and an acceptable issue budget.

The issue size and structure is determined as follows:

The issue size = promoters quota+ firm allotments + net public offer.

Public offer = firm allotments + net public offer.

Net public offer = issue size promoters quota firm allotment.

Important Regulatory Provisions for an IPO:

Let us look at the core of the DIP guide lines with respect to the public offers and more

importantly IPOs. Basically, all public offers, irrespective of whether they are IPO or

secondary offers have to comply with these provisions.

Eligibility to go Public:

One of the most important provisions in the DIP guide lines is about the

eligibility of a company to go public for the first time through a public issue or an

offer for sale. SEBI has over the years brought in several changes to this criterion to

ensure that good quality issues are brought to the market. The important guide lines

on this criterion are mentioned below based on the currently applicable guide lines.

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Mandatory Conditions for a 100% Retail Issue:

A company can make an IPO of pure equity or convertibles only if it meets all of the

following conditions.

The company has net tangible assets of at least Rs.3 crore in each of the preceding

3 full years, of which not more than 50% of the net tangible assets in mandatory

assets.

The company has a track record of having profits distributable as dividends as per

the provisions of section 205 of the companies Act out of its normal business

activity without reckoning extra-ordinary profits, for at least three out of the

immediately preceding five years.

The company has a net worth of at least Rs 1 crore in each of the preceding three

3 full financial years.

The aggregate size of the proposed issue and all previous issues made in the same

financial year by the company does not exceed five times its pre-issue net worth

as per the audited balance sheet of the last financial year.

In case the company has changed its name within the last one year, at least 50% of

the revenue for the preceding 12 months is earned by the company from the

activity suggested by the new name.

A. Promoters Contribution:

SEBI has also introduced the concept of minimum promoters contribution to be

present in companies going public so that they become interested parties in

preserving the interests of the shareholders. In terms of DIP guide lines,

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 following are the main points that apply to promoters contribution in case of

IPOs:

In an IPO the promoters contribution shall not be less than 20% of the

post-issue capital.

The 20% in case of IPO, shares acquired by the promoter with in the

preceding one year for a price less than the IPO price shall be ignored.

The minimum promoters contribution criterion does not apply to

companies with no promoters.

Promoters contribution where required to be brought in the issue shall be

brought in one day before the issue opens.

Firm Allotments and Reservations:

These are novel concepts that help in pre-marketing of a sizeable part of issue thereby

bringing down the risk in the issue.

The provisions on firm allotments and reservations in IPO are as given below:

The net public offer for issuing companies shall not be less than 25% of the post-

issue capital, except in case of IT and infrastructure companies it can be 10%.

The issuer can make reservations on competitive basis or on firm basis for

allotments to the permanent employees, shareholders of group companies, mutual

funds, foreign institutional investors and banks.

All firm allotments which have not subscribed after filling the prospectus shall be

brought in before opening the issue and treated as preferential one.

All reserved categories can be adjusted inter-se and with the net public offer as

well.

29
Lock-in of Shares:

Lock-in of promoters shares and other share capital is also a novel concept brought in for

the purpose of preventing such shareholders in making unfair gains and exits from the

company. The provisions are as follows:

The minimum promoters contribution of 20% shall be locked-in for 3 yrs from

the allotment date.

Excess contribution by the promoters in an issue over what is required is shall be

lock-in for one year.

Firm allotments made in any issue shall be locked in for one year. The amount

brought in by promoters to make good under-subscribed portion of firm

allotments would also be locked in for 3 years.

The entire pre-issue capital in case of an IPO shall be locked in for one year.

Differential Pricing and Price Band:

Any unlisted company making an IPO for equity shares or convertibles may issue

such securities to applicants in the firm allotment category at a price different

from the price at which net offer to the public is made provided that the price at

which the security is offered to the applicant is higher than the price to the public

issue made.

A justification has to be furnished in the offer document on the price differential

for the firm allotment category.

The issuer company can mention a price band of 20 %( the cap should not be

more than the floor by 20%) in the offer documents filed with SEBI and the actual

30
 price can be determined at a later date before filing the offer document with the

ROC.

The Stock Exchange Listing Agreement:

Compliance with the stock exchanges listing guide lines under its listing agreement

is also important in order to be able to seek listing of shares pursuant to an IPO.

The conditions for listing shares by an unlisted company pursuant to an IPO on the

BSE are listed below:

1. New companies can be listed on the exchange, if their issued and subscribed

equity capital after the public issue is equal to or more than Rs. 10 crore.

2. For new companies in high technology sectors, the following criteria will be

applicable.

a. The total income/sales from the main activity should not be less than 75%

of the total income during the two preceding years.

b. The minimum post-issue paid-up capital should be Rs.5 crore.

c. The minimum market capitalization should be Rs.50 cores.

d. Post-issue net worth of Rs.20 crore.

The conditions for listing on the NSE are given below:

1. New companies can be listed on the exchange, if issued and subscribed capital after the

issue is equal to or more than Rs. 10 crores and post-issue net worth of Rs. 20 crores.

2. For new companies in knowledge based industries, the applicable capital criterion is

Rs. 5 crore with a minimum market capitalization of Rs. 50 crore. The total income/sales

should not be less than 75% of the total income during the immediately two preceding

years.

31
3. The applicant company should have a track record of three years of existence. If the

applicant is promoted by another company, that company should have the minimum

stipulated existence.

4. The application for listing in the case of an IPO shall be made within 6 months of the

closure of the issue.

5. The project should have been appraised by specified agencies such as the all India

financial institutions.

2.7APPOINTMENTOF MERCHANT BANKERS & OTHER

INTERMEDIARIES:

Along with the Merchant Banker, other intermediaries are appoint who are duly
registered with the Board. The company first selects the Merchant Banker(s) for handling
the issue. The merchant Banker should have a valid SEBI registration to be eligible for
appointment. The criteria normally used in selection of the Merchant Banker are:
Past track record in successfully handling similar issues.
Distribution network with institution and individual investors.
Trained manpower and skills for instrument designing and pricing.
General reputation the market.
Good rapport with other market intermediaries.
Value added services like providing bridge loans against public issue. Proceeds

A Merchant Banker can associate with the issue in any of the following capacities:
Lead manager to the issue
Co-manager to the issue
Underwriter to issue
Advisor/consultant to the issue
SEBI has set certain limits on the maximum number of intermediaries associated with the
issue.

32
 Size of the issue manager No of lead
Less than Rs 50 cr 2
Rs 50 cr to Rs 100 cr 3
Rs 100 cr to Rs 200 cr 4
Rs 200 cr to Rs 400 cr 5
Above Rs 400 cr No limit but subject to SEBI approval

The number of Co-Managers cannot exceed the number of Lead Mangers

appointed for that issue. There can be only one Advisor/Consultant to the issue. There is
no limit on the number of underwriters to the issue. There is no limit on the number of
underwriters to the issue. An associate company of the issuer company cannot be
appointed either as lead manager or CO-Manager to the issue. However they can be
appointed as underwriter or Advisor/ consultant to the issue.
Once the Lead Manager(s) is / are appointed, the other intermediaries are appointed
in consultation with them. The selection of the intermediary is based on their past track
record , their ranking, infrastructure facilities , previous relationship with the issuer
company , fees charged etc. The other intermediaries appointed are:
Registrar to the Issue
Bankers to the Issue
Debenture Trustees(if applicable)
Advertising Agencies
Printers of stationary
Underwriters to the Issue
Brokers to the Issue
Auditor
Legal Advisor to the Issue
Before advising the issuer on the appointment of other intermediaries, the capability
and capacity of various intermediaries to carry out assignments.
Register to the Issue:

33
 Registration with SEBI is mandatory for as Register and share Transfer Agent. A
category I Registrar can act as both Registrar to the issue and as a share Transfer Agent.
Agent. The minimum netwroth requirement is Rs.6 lakhs for a category I Registrar and
Rs.3 lakh category II Registrar. In addition to Networth requirement, SEBI also look at
the infrastructure facilities before giving registration.
Registered with the board, in consultation with the Lead Merchant Banker. The
registrar is solely is responsible for the management of the issue.
The main function of the Registrar include.
Assist the Lead Manager in selection of the Bankers to the Issue and the Collection
Centers.
Bankers to the issue:
This was one capital market activity which lacked regulatory clarity for a long time.
The ambiguity arose, because it was unclear as to whether it was RBI or SEBI which
regulated public issue banking. An anomalous situation prevailed as SEBI issued
guidelines to the banks, while it had no means to ensure compliance of the same. Though
RBI had regulatory jurisdiction over the banks, compliance with the provisions of the
banking law and its own directives took precedence over enforcement of SEBI
guidelines. As a consequence, investors suffered from a spate of irregularities involving
refund orders, acceptance of late applications after the closure of issue, etc.

The banker to the issue also performs the fallowing functions:

Open the shares Application Money Account of the company. All the issue proceeds
are transferred only to this account. The company cannot withdraw the money from this
account till the entire process of allotment and is completed. Refund of application
money to unsuccessful applicants.
Acceptance of money payable on allotment and on calls.

Debenture Trustees:

34
 The Debenture Trustees are required to obtain a Certificate of Registration from SEBI.
The SEBI (Debenture Trustee) Regulations,1993 provides for the following
responsibilities for the debenture trustees.
Call for periodical repots the company.
Underwriters to the issue:
The SEBI (Underwriters) Rules, 1993 define underwriting as an agreement, with or
without conditions to subscribe to the securities of a body corporate, when the existing
shareholders of such body corporate or the, when the existing shareholders of such body
corporate or the public do not subscribe to the securities offered to them. In other words,
the underwriter agrees to subscribe a specified number of securities in an issue, in the
event of non-subscription of the same.
The following class of market participants can extend underwriting to an issue:
SEBI registered Merchant Banker:
Members of any Stock Exchange and holding SEBI registration.
Registration as underwriter under SEBI (Underwriters) Rules, 1993.
An underwriter should have a minimum net worth of Rs.20 lakhs and the total
outstanding underwriters obligation at any point of time cannot exceed 20 times the
underwriters net worth.
The underwriters are exposed to the risk of under subscription and for assuming the
risk they are remunerated by underwriting commission. The underwriting commission is
payable on the issue price of the security i.e. face value plus premium. The maximum rate
of underwriting commission payable is under.

Broker to the Issue:

Any member of any recognized stock exchange can be appointed as Broker to the
Issue. Appointment of is not Broker to the Issue mandatory as per SEBI guidelines.
Brokerage earned with their sub-brokers. The main functions of the brokers to the issue are:

Offer marketing support for the issue.

Providing for distribution of issue stationery at the retail investor level.
Disseminate information to the investors about the issue.

35
 Extend underwriting support to the issue.
Provide advance market intelligence on the expected response to the issue.

Advancing agencies:
The success of many a public issue can be attributed to savvy advertising campaign.
The role of advertising agency is of crucial importance in determining the fate of the
issue. Based on their presentations and further consultations with the lead manger, the
advertising agency is selected. The main functions of the advertising agency are as
follows:
Devising of advertising and publicity strategy.
Designing and running the advertising campaign.
Designing the corporate brochure and publicity material.
Drafting and distribution of press releases.

Methodologies for Making Issues:

Under the DIP guide lines, it is possible to make an IPO in the form of a 100% retail

issue, a book built issue or as a bought out deal either for listing on the main stock

exchanges or on the OTC exchange. The different methods are explained as follows:

100% Retail (Fixed Price) Issues:

Under this method, the issue is made by offering the same directly to the investors from

the public that could include the retail small investors as well as other categories of

investors. Using this method obviates the need to sell the issue initially to the wholesale

investors and them in turn marketing it to retail investors. The main advantage of this

system is that it is possible to get a wide dispersal of shareholding among the retail

investors that would add depth to the trading in the stock after listing.

36
Book Built Issues:

A book built mechanism allows the issuer company to make a public issue through the

process of price discovery rather than through a price that is fixed beforehand. This

mechanism, to a large extent, overcomes the deficiency in the fixed price mechanism of

over pricing or under-pricing an issue.

Applicable Provisions for a Book-built Issue:

In a book-built issue, reservation and firm allotment may be made only in respect of

permanent employees of the issuer company/promoting company and share holders of the

promoting companies to the extent they permitted in the DIP guide lines.

The other allocation norms for a 100% and 75% book-built issue are as listed below:

Not more than 50% of the net public offer shall be allocated to QIBs.

Not less than 25% of the net public offer shall be allocated to non-institutional

bidders.

Not less than 25% issue shall be available for allocation to retail investors.

Procedural Aspects of an Issue:

The first task is to hold a Board Meeting to consider the proposal for a public

issue, authorize the managing director to do all tasks relating to this issue and

including expenses for the issue.

On the appointed day, the EGM is held and the shareholders pass a special

resolution under section 81(1A) of the companies Act authorizing the company to

make public issue.

37
 The LM immediately on being appointed starts a due diligence on the company.

Usually they go through the all documents and certificates and every relevant

information for the issue.

In parallel, the LM starts preparation of the draft prospectus or offer document.

All disclosure requirements and DIP guide lines have to be filled in.

The LM advises the company in the appointments of other intermediaries for the

issue. These are the registrar to the issue, bankers to the issue, the printer and

advertising agency. The registrar and bankers have to be registered with SEBI.

The LM also draws up the issue budget estimated to be spent on the issue. The

main components of these are fees for LM, underwriters, registrar and banker,

brokerage, postage, stationery, issue marketing expenses and statutory costs.

The draft prospectus is finalized by the LM in all respects in consultation with the

management and placed before the board of directors for the approval so that it

can be issued for filing.

The company has to enter into a tripartite agreement with the registrar and all

depositories-(presently NSDL or CDSL) for offering the facility of offering the

shares on dematerialized mode.

Once the draft prospectus is ready in its final form, a board meet has to be held to

approve the filing of the same with ROC after being signed by all the directors.

This filing should be accompanied by all the material contracts pertaining to the

issue and the company and all other documents listed in the prospectus.

The marketing of the issue is usually co-coordinated by the LM with the

advertising agency.

38
 Advertisements are regulated by DIP guidelines and the rules of the stock

exchange.

The mandatory collection centers are finalized as per the SEBI guidelines in

consultation with the bankers and the LM.

The LM and the printer finalize the dispatch schedule to all SE, SEBI, collection

centers, investor associations, brokers and underwriters.

The marketing should be completed one week before the opening of the issue.

Post-Issue Procedures:

In issues wherein there is more than one LM, it is usual to entrust the entire post-

issue responsibility to one LM in inter-se allocation.

There are two reports that are required to be furnished to SEBI by the post-issue

LM in the case of an IPO in the retail route in the prescribed form.

The issue is to be closed on the earliest closing date; the LM should ensure that

issue is fully subscribed before announcing closure.

In the case of devolved issues, the LM shall ensure that the underwriters honor

their commitments within 60 days from the date of closure of issue.

The post issue LM shall ensure that the demat credit and refund orders to the allot

tees is completed within two working days after the basis of allotment is done.

The LM is responsible for following duties.

a. Refund of subscription money to all non-allot tees.

b. Refund of excess application money to all.

c. Attending to all investors grievances.

d. Sanction of listing and trading permission by the stock exchanges.

39
 e. Filing of return of allotment with ROC.

Role of Merchant Banker in Issue Management:

Merchant bankers with valid registration certificates from SEBI have been provided with

statutory exclusivity in managing public offers such as IPO, rights and secondary issues

of equity as well as issues of debt securities. Therefore, whenever there is an offer of

securities to the public, the involvement of a merchant banker is mandatory, subject to the

minor exceptions. From a business perspective too, issue management forms the biggest

chunk of revenue for investment bankers in those years when the primary market for

public flotation is very vibrant.

40
 CHAPTER-III
COMPANY PROFILE

41
 COMPANY PROFILE

Incorporated in 1993, Net worth Stock Broking Limited (NSBL) has been a listed

company at Bombay Stock Exchange (BSE), Mumbai since 1995.

A Member, at the National Stock Exchange of

India (NSE) and Bombay Stock Exchange,

Mumbai (BSE) on the Capital Market and

Derivatives (Futures & Options) segment, NSBL has been traditionally servicing

Institutional clients and in the recent past has forayed into retail broking, establishing

branches across the country. Presence is being marked in the Middle East, Europe and the

United States too, as part of our attempts to cater to global markets. We are a Depository

participant at Central Depository Services India (CDSL) with plans to become one at

National Securities Depository (NSDL) by the end of this quarter. We have our customers

participating in the booming commodities markets with our membership at the Multi

Commodity Exchange of India (MCX) and National Commodity & Derivatives

Exchange (NCDEX), through Networth Stock.Com Ltd. With its strong support and

business units of research, distribution & advisory, NSBL aims to become a one-stop

solution to the broking and investment needs of its clients, globally.

Strong team of professionals experienced and qualified pool of human resources

drawn from top financial service & broking houses form the backbone of our sizeable

42
infrastructure. Highly technology oriented, the companys scalability of operations and

the highest level of service standards has ensured rapid growth in the number of locations

& the clients serviced in a very short span of time. Networthians, as each one of our 400

plus and ever growing team members are addressed, is a dedicated team motivated to

continuously progress by imbibing the best of global practices, Indian sing

such practices, and to constantly evolve a comprehensive suite of products &

services trying to meet every financial / investment need of the clients.

NSE CM and Derivatives Segment SEBI Regn. 1NB230638639 & 1NF230638639

BSE CM and Derivatives Segment SEBI Regn. 1NB014638634 &

PMS SEBI Regn. 1NP000001371 CDSL DP SEBI Regn. IN-DP-CDSL

251-2004

Commodities Trading: MCX -14585 and NCDEX - 00011 (through Networth

Stock.Com Ltd.)

Hyderabad (Somajiguda)

401, Dega Towers, 4th Floor, Raj Bhavan Road, Somajiguda Hyderabad - 500 082

Andhra Pradesh.

Phone Nos.: 040-55560708, 55562256, and 31394985

Mumbai (MF Division)

49, Au Chambers, 4th Floor, Tamarind Lane, Fort

Mumbai - 400 001

Maharashtra.

Phone Nos.: 022- 22650253

43
Mumbai (Registered Office)

5, Church gate House, 2nd Floor, 32/ 34 Veer Narirnan Road, Fort

Mumbai - 400 001

Maharashtra.

Phone No. 022-22850428

The Networth connectivity with 147 branches and growing

44
Products and services portfolio

Retail and institutional broking

Research for institutional and retail clients

Distribution of financial products

PMS

Corporate finance

Net trading

Depository services

Commodities Broking

45
INFRASTRUCTURE

A corporate office and 3 divisional offices in CBD of Mumbai which houses state-

of-the-art dealing room, research wing & management and back offices.

All of 147 branches and franchisees are fully wired and connected to hub at

Corporate office at Mumbai. Add on branches also will be wired and connected to

central hub

Web enabled connectivity and software in place for net trading.

60 operative IDs for dealing room

In house technology back up team to ensure un-interrupted connectivity.

1993: Networth Started with 300 Sq.ft. of office space & 14 employees

46
2013: Spread over 72 cities (around 1,25,000 Sq.ft of office space) with over 227

branches & employee strength over 4500

Market & research

Focusing on your needs

Every investor has different needs, different preferences, and different viewpoints.

Whether investor prefer to make own investment decisions or desire more in-depth

assistance, company committed to providing the advice and research to help you succeed.

Networth providing following services to their customers,

Daily Morning Notes

Market Musing

Company Reports

Theme Based Reports

Weekly Notes

IPOs

Sector Reports

Stock Stance

Pre-guarter/Updates

Bullion Tracker

F&O Tracker

47
QUALITY POLICY

To achieve and retain leadership, Networth shall aim for complete customer satisfaction,

by combining its human and technological resources, to provide superior quality financial

services. In the process, Networth will strive to exceed Customers expectations.

As per the quality policy, Networth will:

Build in house processes that will ensure transparent and harmonious

relationships with its clients and investors to provide high quality of services.

Establish a partner relationship with in its investor service agents and vendors that

will help in keeping up its commitments to the customers.

Provide high quality of work life for all its employees and equip them with

adequate knowledge & skill so as to respond to customers needs.

Continue to uphold the values of honesty & integrity and strive to establish

unparalleled standards in business ethics.

Use state-of-the art information technology in developing new and innovative

financial products and services to meet the changing needs of investors and

clients.

Strive to be a reliable source of value-added financial products and services and

constantly guide the individuals and institutions in making a judicious choice of it.

Strive to keep all stake-holders (share holders, clients, investors, employees, suppliers

and regulatory authorities) proud and satisfied.

48
Key Personnel:

Mr. S P Jain CMD Networth Stock Broking Ltd.

A qualified Chartered Accountant with over 15 years of experience in the

capital markets.

Mr. Deepak Mehta Head PMS

Over 12 years of experience in the capital markets and has the prior work

experience of serving on the Equity desk of Reliance.

Mr.Viral Doshi Equity Strategist

A qualified Chartered Accountant with experience of over a decade in technical

analysis with respect to equity markets.

Mr. Vinesh Jain Asst. Fund Manager

A qualified MBA graduate specializing in finance and over two years of

experience in the capital markets.

Research and the Back office.

49
We have sought to provide premium financial services and information, so that the power

of investment is vested with the client. We equip those who invest with us to make

intelligent investment decisions, providing them with the flexibility to either tap into our

extensive knowledge and expertise, or make their own decisions. We made our debut into

the financial world by servicing Institutional clients, and proved its high scalability of

operations by growing exponentially over a short period of time. Now, powered by a top-

notch research team and a network of experts, we provide an array of financial products

& services spanning entire India.Our strong support, technology-driven operations and

business units of research, distribution, advisory, wide array of products & services

coalesce to provide you with a one-stop solution to cater to all your investment needs.

Our single minded objective is to help you grow your Networth.

OUR GROUP COMPANIES

Networth Stock Broking Ltd. [NSBL]

NSBL is a member of the National Stock Exchange of India Ltd (NSE) and the Bombay

Stock Exchange Ltd (BSE) in the Capital Market and Derivatives (Futures & Options)

segment. NSBL has also acquired membership of the currency derivatives segment

with NSE, BSE & MCX-SX. It is Depository participants with Central Depository

Services India (CDSL) and National Securities Depository (India) Limited (NSDL). With

a client base of over 1L loyal customers, NSBL is spread across the country though its

over 230+ branches. NSBL is listed on the BSE since 1994.

50
Networth Wealth Solutions Ltd. [NWSL]

NWSL is into the business of delivery of Financial Planning & Advice. Its vision is to

Advice & Execute money related solutions to/for our customers in the most Convenient

& Consolidated manner, while making sure that their experience with us is always

pleasant & memorable resulting in positive advocacy. The product & Services include

Financial Planning, Life Insurance, On-line Trading Account, Mutual Funds,

Debentures/Bonds, General Insurance, Loans and Depository Services.

NetworthStock.ComLtd.[NSCL]

NSCL is the commodities arm of NSBL. It is a member at the Multi Commodity

Exchange of India (MCX) and National Commodity & Derivatives Exchange (NCDEX)

and is backed by solid research & analytics in Commodities.

NetworthSoftTechLtd.[NSL]

NSL is an ISO 9001:2000 Certified Company. It is into Application Development &

maintenance. Building & Implementation of packaged software across various functions

within the Financial Services Industry is at its core. It also provides data center services

which include hosting of websites, applications & related services. It combines a unique

delivery model infused by a distinct culture of customer satisfaction.

Ravisha Financial Services Pvt. Ltd. [RFSL]

RFSL is a RBI registered NBFC engaged in financing, primarily it provides loan against

securities

51
 CHAPTER-IV
DATA ANALYSIS
AND
INTERPRETATION

52
 4.1 MOIL Limited Data Analysis

Incorporate in 1896, MOIL Limited (Manganese Ore India Limited) is India based
producer of manganese ore, primarily used to make ferro-alloys for steel production.
MOIL is a 'Mini Ratna' PSU, owned by Government of India and under the
administrative control of the Ministry of Steel.

MOIL Limited is the largest producer of manganese ore by volume in India. MOIL
operate seven underground mines (Kandri, Munsar, Beldongri, Gumgaon, Chikla,
Balaghat and Ukwa mines) and three opencast mines (Dongri Buzurg, Sitapatore/Sukli,
and Tirodi) to produce more then 1,093,363 tonnes of manganese ore.

In addition to high, medium and low grade manganese ore, company produces
manganese dioxide and chemical grade manganese ore. The major competitive strengths
of the company are:

1. Largest producer of manganese ore in India with access to significant reserves;

2. Well positioned to capture the growth potential of the Indian steel industry;
3.Track record of growth and efficient operations;
4. Strategic location of the mines and Strong capabilities for exploration, mine planning
and research development.

Company Promoters:

The promoters of the company is the President of India, acting through the MoS,
Government of India (GoI).

Present paid-up Equity Share capital of GoI - 81.6%

Post-Offer paid-up Equity Share capital of GoI - 71.6

53
Company Financials:

Particulars For the year/period ended (in Rs. Millions)

31-Mar-13 31-Mar-12 31-Mar-11 31-Mar-10 31-Mar-09
Total Income 10,878.53 14,394.09 10,154.48 4,167.41 3,637.37
Profit After Tax (PAT) 4,663.46 6,637.93 4,798.15 1,342.09 1,145.17

Objects of the Issue:

The objects of the Offer are:
1. To carry out the disinvestment of 33,600,000 Equity Shares by the Selling
Shareholders and
2. To achieve the benefits of listing the Equity Shares on the Stock Exchanges.

Issue Detail:

Issue Open: Nov 26, 2013 - Dec 01, 2013

Issue Type: 100% Book Built Issue IPO
Issue Size: 33,600,000 Equity Shares of Rs. 10
Issue Size: Rs. 1,237.51 Crore
Face Value: Rs. 10 Per Equity Share
Issue Price: Rs. 340 - Rs. 375 Per Equity Share
Market Lot: 17 Shares
Minimum Order Quantity: 17 Shares
Listing At: BSE, NSE

Maximum Subscription Amount for Retail Investor: Rs. 2,00,000

MOIL Limited IPO Grading / Rating

CARE has assigned an IPO Grade 5 to MOIL Limited IPO. This means as per CARE
company has 'Strong fundamentals'. CARE assigns IPO grading on a scale of 5 to 1,
with Grade 5 indicating strong fundamentals and Grade 1 indicating poor fundamental.

IPO Ratings

54
 MOIL Limited IPO Tags:

MOIL Allotment, MOIL IPO Subscription, MOIL IPO Retail Subscription, MOIL
Listing, MOIL Ltd IPO, MOIL IPO, MOIL IPO Bidding, MOIL IPO Allotment
Status, MOIL drhp and MOIL Ltd IPO listing.

Bidding Status (IPO subscription detail):

Number of Times Issue is Subscribed (BSE + NSE)

Qualified Non Retail
Employee
Institutional Institution Individual
As on Date & Time Reservation Total
Buyers al Investors
s
(QIBs) Investors (RIIs)
Shares Offered / 11,524,80
16,464,000 4,939,200 672,000 33,600,000
Reserved 0
Day 1 - Nov 26, 2013
1.0300 0.8800 0.3600 0.0100 0.7600
17:00 IST
Day 2 - Nov 29, 2013
2.1400 2.4000 2.8000 0.1300 2.3700
17:00 IST
Day 3 - Nov 30, 2013
49.1600 8.7700 10.8600 0.2000 29.1000
19:00 IST
Day 4 - Dec 01, 2013
49.1600 143.3000 32.8600 0.5700 56.4300
22:00 IST

Last trading list of the company:

BSE(Rs) NSE(Rs)

Issue price 375.00 375.00

55
Open 551.00 565.00

Low 458.50 456.65

High 591.05 590.00

Last trade 466.50 465.05

Volume 31,568,413 65,132,435

CHART 1

ISSUE PRICE OF MOIL LTD:

INTERPRETATION:
The above bar diagram shows the issue price of MOIL LTD in both BSE and NSE. X-
axis represents the exchanges traded (i.e. BSE AND NSE) and Y-axis represents issue
price amount (i.e. Rs375 in both exchanges).

CHART -2

LISTING DAY OPENING PRICE OF MOIL LTD:

56
INTERPRETATION:

The above chart shows the listing day opening price MOIL LTD. Here X- axis represents
exchanges traded and Y-axis represents the opening price in both the exchanges. {I.e. Rs
551.00 in BSE and Rs 565.00 in NSE}

CHART-3

LISTING DAY LOW PRICE OF MOIL LTD:

57
INTERPRETATION:

The above chart shows the listing day low price of MOIL LTD. Here X- axis represents
exchanges traded and Y-axis represents the listing day low price in both the exchanges.
{I.e. Rs 458.50 in BSE & RS 456.65 in NSE].

CHART- 4

58
LISTING DAY HIGH PRICE OF MOIL LTD:

INTERPRETATION:

The above chart shows the listing day high price of MOIL LTD. Here X- axis represents
exchanges traded and Y-axis represents the listing day high price in both the exchanges.
(I.e. Rs 591.05 in BSE and Rs 590.00 in NSE).

CHART-5

59
LAST TRADE OF MOIL LTD:

INTERPRETATION:

The above chart shows the listing day last price of MOIL LTD. Here X- axis represents
exchanges traded and Y-axis represents the last trading price of MOIL LTD on listing day
in both the exchanges. {I.e. Rs 466.50 in BSE and Rs 465.05 in NSE)

Sr. No. of Applications No. of Equity No. of times

Category
No. Received Shares subscribed
Retail Individual
A 1297650 372841620 32.35
Bidders

60
 Non Institutional
B 2416 703419166 142.41
Bidders
Qualified Institutional
C 303 810258318 49.21
Bidders
D Employees 1569 360978 0.54
Total 1301938 1886880082 56.16

Final Demand
A summary of the final demand as per the BSE and the NSE as on the Bid/Offer closing
date of different bids is as detailed here under

Bid Price No. of Shares % to total Cumulative Total Cumulative % of Total

340 5132793 0.27 5132793 0.27
341 22457 0.00 5155250 0.27
342 5032 0.00 5160282 0.27
343 1938 0.00 5162220 0.27
344 1105 0.00 5163325 0.27
345 80699 0.00 5244024 0.27
346 45900 0.00 5289924 0.28
347 1547 0.00 5291471 0.28
348 884 0.00 5292355 0.28
349 1258 0.00 5293613 0.28
350 1315630 0.07 6609243 0.34
351 7276 0.00 6616519 0.34
352 25721 0.00 6642240 0.35
353 2856 0.00 6645096 0.35
354 2686 0.00 6647782 0.35
355 4237012 0.22 10884794 0.57
356 162860 0.01 11047654 0.57
357 65637 0.00 11113291 0.58
358 215951 0.01 11329242 0.59
359 3264 0.00 11332506 0.59
360 3775598 0.20 15108104 0.79
Cutoff price 327126121 17.01 1922843276 100.00

The Basis of Allocation was finalized in consultation with the Designated Stock
Exchange, being the National Stock Exchange of India Limited fNSE") on December
9,2013.The Basis of Allocation to the Retail Individual Investors, who have bid at cut-off
price or the Offer Price of Rs 375/- per Equity Share (including a discount of 5% on the
Offer price), was finalized in consultation with NSE. This.The total number of shares

61
allotted in Retail Individual Investor category is 11,634,647 Equfty Share which were
allotted to 684391 successful applicants.
The category-wise details of the Basis of Allocation are as under:

Total No. of No. of

Total No. of
No. Of % to Equity % of Equity
Category Ratio Equity Shares
Applications total Shares total Shares
allocated
applied allocated
17 51072 4.01 868224 0.24 17 1:31 27999
34 58457 4.59 1987538 0.54 17 3:47 63427
51 51212 4.02 2611812 0.71 17 2:21 82909
68 44626 3.50 3034568 0.83 17 6:47 96849
85 32152 2.52 2732920 0.74 17 6:37 88638
102 47530 3.73 4848060 1.32 17 6:31 156383
119 29428 2.31 3501932 0.95 17 7:31 112965
136 46178 3.62 6280208 1.71 17 8:31 202589
153 12357 0.97 1890621 0.51 17 9:31 60996
170 32379 2.54 5504430 1.50 17 10:31 177565
187 13878 1.09 2595186 0.71 17 6:17 83266
204 24225 1.90 4941900 1.34 17 13:34 157471
221 7966 0.63 1760486 0.48 17 13:31 56797
238 8559 0.67 2037042 0.55 17 15:34 64192
255 304774 23.92 77717370 21.15 17 9:19 2454239
272 49404 3.88 13437888 3.66 17 1:2 419934
289 6877 0.54 1987453 0.54 17 19:35 63461
306 7944 0.62 2430864 0.66 17 19:33 77758
323 4044 0.32 1306212 0.36 17 20:33 41667
340 12660 0.99 4304400 1.17 17 7:11 136952
357 3200 0.25 1142400 0.31 17 2:3 36261
374 3734 0.29 1396516 0.38 17 23:33 44234

INVESTORS PLEASE NOTE: The details of the allocation made would be hosted on the
website of Registrar to the Offer, Karvy Computershare Private Limited at
http://karisma.karvy.com
All future correspondence in this regard may kindly be addressed to the Registrar to the
Offer quoting fullname of the First/Sole applicant, serial number of the Bid-cum
bid for, name of the Member of the syndicate, place where the bid was submitted and
payment details of the address given below.

62
Karvy Computershare Private Limited:
Unit: MOIL Limited, Plot No. 17 to 24,
Vithalrao Nagar, Hitech City Road,
Madhapur, Hyderabad 500081,
Fax: 040-23420814,
Email: einward.ris@karvy.com, Website: http://karisma.karvy.com.
TOLL FREE - HELPLINE NUMBER: 1-800-3454001

For MOIL Limited

Place: Nagpur Sd/-
Date December 14,2013 Neeraj Dutt Pandey
:Company Secretary

THE LEVELOF SUBSCRIPTION SHOULD NOT BE TAKEN TO BE INDICATIVE

OF EITHER THE MARKET PRICE OF THE EQUITY SHARES ON US TING OR
THE BUSINESS PROSPECTSOF MOIL LIMITED.
Note: All capitalized terms used and not defined herein shall have the respective
meanings assigned to them in the Prospectus. MOIL Limited proposes, subject to receipt
of requisite approvals, market conditions and other considerations, to make an Initial
Public Offer of its equity shares and has filed a Prospectus with the Registrar of
Companies, Maharashtra, Mumbai. The Prospectus is available on the websites of SEBI
and the Book Running Lead Managers at www.sebi.gov.in, www.edelcap.com,
www.idbicapital.com and www.jpmipl.com. Investment in equity shares involves a high
degree of risk and for details relating to the same.The Equity Shares of MOIL Limited
have not been and will not be registered under the U.S. Securities Act of 1933, as
amended. MOIL Limited does not intend to make a public offer of its securities in the
United States.

MOIL Limited Stock Quotes & Charts:

63
 From 15/12/2013 to 29/12/2013
Last Trade(Rs): 448.55
Change (Rs): +7.80 (+1.77%)
Day Open(Rs): 367.35
Day High(Rs): 452.30
Day Low(Rs): 367.35
Volume: 873,852
Previous Close: 440.75
52 Weeks(Rs): 0.00 - 0.00

IPO Information:
Issue Price(Rs): 375
Listed: Dec 15, 2013
Profit / Loss (Rs): 19.61%

4.2 CLARIS LIFE SCIENCE LTD DATA ANALYSIS

64
Incorporated in 1994, Claris Life sciences Limited (CLL) is an Ahmedabad based
pharmaceutical company. Claris is the largest Indian sterile injectables pharmaceutical
companies with a presence in 76 countries worldwide. Claris offers 113 products across
multiple markets and therapeutic areas. All of these products are off-patent products.

Claris's product range across various therapeutic segments, including anaesthesia, critical
care, anti-infectives, renal care, infusion therapy, enteral nutrition, parenteral nutrition
and oncology.

Companies more than half of the sales come from international markets and have a strong
presence in regions of Latin America, the Middle East, Africa and Central, South East
and Far East Asia.

Claris's manufacturing facilities are located in Ahmedabad, India and approved by foreign
regulatory authorities. The manufacturing facilities are ISO 9001-2000 and WHO GMP
certified.

Company Promoters:

The promoters of the company are:

1. Mr. Arjun S. Handa
2. Sarjan Financial Private Limited

Company Financials:
Particulars For the year/period ended (in Rs. million)
31-Mar-13 31-Mar-12 31-Mar-11 31-Mar-10 31-Mar-09
Total Income 7,594.01 7,639.00 6,238.16 4,026.74 2,923.61
Profit After Tax (PAT) 1,303.80 1,083.95 832.72 466.93 179.30

Objects of the Issue:

The objects of the issue are:

Setting up of a new plant comprising a small volume parenterals line, a PVC bag line, a
non-PVC bag line and a fat emulsion line.
2. Setting up of a new manufacturing line for propofol and other fat emulsion products at
our existing plant, Clarion IV.
3. Construction of a facility for research and development at our Clarion manufacturing
65
facilities.
4. Prepayment of an identified term loan.
5. General corporate purposes.

Issue Detail:

Issue Open: Nov 24, 2013 - Dec 02, 2013

Issue Type: 100% Book Built Issue IPO
Issue Size: 12,632,477 Equity Shares of Rs. 10
Issue Size: Rs. 300.00 Crore
Face Value: Rs. 10 Per Equity Share
Issue Price: Rs. 228 - Rs. 235 Per Equity Share
Market Lot: 22 Shares
Minimum Order Quantity: 22 Shares
Listing At: BSE

Maximum Subscription Amount for Retail Investor: Rs. 2,00,000

Claris Lifesciences Ltd IPO Grading / Rating

Fitch Ratings India Private Limited has assigned an IPO Grade 3 to Claris Lifesciences
Ltd IPO. This means as per Fitch, company has 'Average Fundamentals'. Fitch assigns
IPO grading on a scale of 5 to 1, with Grade 5 indicating strong fundamentals and Grade
1 indicating poor fundamentals.

Check IPO Ratings from other stock analysts.

Claris Life sciences Limited IPO Tags:

Claris Lifesciences IPO, Claris IPO, Claris Lifesciences Ltd IPO Bidding, Claris Life
IPO Allotment Status, Claris IPO drhp and Claris IPO listing.

Claris Life sciences IPO revised issue closing date and issue price

66
 Book Running Lead Manager to the issue has informed the Exchange that the CLARIS
LIFESCIENCES LIMITED issue will close on 2 Dec, 2013 instead of the earlier closing
day on 26 Nov, 2013.Post issue modification date has been revised to 3 Dec, 2013 instead
of the earlier closing day on 27 Nov, 2013. Further price band has revised from 278/- to
Rs. 293/- TO Rs. 228/- to Rs. 235/- per share.

Bidding Status (IPO subscription detail):

Number of Times Issue is Subscribed (BSE + NSE)
Qualified Retail
Non
Institutional Individual
As on Date & Time Institutional Total
Buyers Investors
Investors
(QIBs) (RIIs)
Shares Offered / Reserved 4,572,152 1,069,192 3,207,577 8,848,921
Day 1 - Nov 24, 2013 17:00 IST 0.0000 0.0000 0.0700 0.0200
Day 2 - Nov 25, 2013 17:00 IST 0.0000 0.0100 0.2600 0.0900
Day 3 - Nov 26, 2013 17:00 IST 0.1500 0.1000 1.2200 0.4400
Day 4 - Nov 29, 2013 17:00 IST 0.1100 0.0600 1.0100 0.4200
Day 5 - Nov 30, 2013 17:00 IST 0.1100 0.1100 1.0200 0.4300
Day 6 - Dec 01, 2013 17:00 IST 0.1100 0.3000 1.0600 0.4700
Day 7 - Dec 02, 2013 17:00 IST 1.3100 2.0300 1.6000 1.5000

IPO Listing Detail

Listing Date: Monday, December 20, 2013

BSE Scrip Code: 533288

NSE Symbol:

Listing In: 'B' Group of Securities

Sector: Pharmaceuticals

ISIN: INE562G01018

Issue Price: Rs. 228.00 Per Equity Share

Face Value: Rs. 10.00 Per Equity Share

Listing Day Trading Information

67
 BSE
Issue Price: Rs. 228.00
Open: Rs. 224.40
Low: Rs. 198.10
High: Rs. 227.90
Last Trade: Rs. 205.85
Volume: 15,448,775

The Company has allotted 1,843,003 Equity Shares to Anchor Investors at Rs. 293 per
Equity Share in accordance with the Securities and Exchange Board of India (Issue of
Capital and Disclosure Requirements) Regulations, 2009, as amended ("SEBIICDR
Regulations"). The Issue received 33,068 applications for 16,256,306 equity shares
resulting in 1.2869 times subscription. The details of the applications received in the
Issue from Retail Individual Bidders, Non-Institutional Bidders, QIB Bidders and the
Anchor Investors categories are as under (Before Technical Rejections) (Including ASBA
Applications):

No. of No. of Equity No. of times

Category
Applications Shares Subscription
Retail Individual
A 32,984 4,892,514 1.2910
Bidders
Non Institutional
B 62 1,759,274 1.3927
Bidders
C QIB Bidders 18 7,524,374 1.3117
D Anchor Investors 4 2,080,144 1.1287
Total 33,068 16,256,306 1.2869

Final Demand

A summary of the final demand at different Bid prices is as under:

Bid Price No. of Equity Shares % to Total Cumulative Total Cumulative % to total
228 2,675,706 15.505 2,675,706 15.505
229 1,034 0.006 2,676,740 15.511
230 9,988 0.058 2,686,728 15.569
231 3,388 0.020 2,690,116 15.588
232 530,442 3.074 3,220,558 18.662

68
 233 6,028 0.035 3,226,586 18.697
234 748 0.004 3,227,334 18.701
235 8,512,262 49.325 11,739,596 68.027
CUTOFF 5,517,754 31.973 17,257,250 100.000
TOTAL 17,257,350 100.000

The Basis of Allotment was finalized in consultation with the BSE on December 15,
2013.

A. Allotment to Retail Individual Investors (After Technical Rejections) (Including

ASBA Applications)

The Basis of Allotment to the Retail Individual Investors, who have bid at Cut-Off Price
or above the Issue Price of Rs. 228 per Equity Share, was finalized in consultation with
BSE. This category has been subscribed to the extent of 1.2123 times. The total number
of Equity Shares allotted in Retail Individual Investor category is 3,789,743 Equity
Shares to 30,479 successful applicants. The category-wise details of the Basis of
Allotment are (sample) as under

Total No. of No. of Equity Total No. of

No. of % to % to
Category Equity Shares Shares Ratio Equity Shares
Applns. total total
applied allocated allocated
22 9129 28.52 200,838 4.37 22 79:95 167,090
44 5409 16.9 237,996 5.18 36 1:1 194,724
66 2466 7.7 162,756 3.54 54 1:1 133,164
88 2136 6.67 187,968 4.09 73 1:1 155,928
198 521 1.63 103,158 2.25 163 1:1 84,923
220 1372 4.29 301,840 6.57 181 1:1 248,332
286 56 0.17 16,016 0.35 236 1:1 13,216

69
 308 131 0.41 40,348 0.88 254 1:1 33,274
330 1998 6.24 659,340 14.35 272 1:1 543,456
418 1188 3.71 496,584 10.81 345 1:1 409,860
506 29 0.09 14,674 0.32 417 1:1 12,093
528 5 0.02 2,640 0.06 436 1:1 2,180
616 9 0.03 5,544 0.12 508 1:1 4,572
660 57 0.18 37,620 0.82 544 1:1 31,008
682 806 2.52 549,692 11.96 563 1:1 453,778
704 12 0.04 8,448 0.18 581 1:1 6,972
792 15 0.05 11,880 0.26 653 1:1 9,795
814 17 0.05 13,838 0.3 671 1:1 11,407
858 14 0.04 12,012 0.26 708 1:1 9,912
858 1 3:7 6

B. Allotment to Non Institutional Investors (After Technical Rejections) (IncludingASBA

Applications)

The Basis of Allotment to the Non-Institutional Investors, who have bid at or above the
Issue Price of Rs. 228 per Equity Share, was finalized in consultation with BSE. This
category has been subscribed to the extent of 1.3912 times The total number of Equity
Shares allotted in this category Is 1,263,247 Equity Shares to 61 successful applicants.
The category-wise details of the Basis of Allotment are (sample) as under:

Total No. of No. of Equity Total No. of

No. of % to % to
Category Equity Shares Shares Ratio Equity Shares
Applns. total total
applied allocated allocated
880 3 4.92 2,640 0.15 633 1,899
990 2 3.28 1,980 0.11 712 1,424
1012 2 3.28 2,024 0.12 728 1,456
1364 2 3.28 2,728 0.16 981 1,962
1694 1 1.64 1,694 0.1 1218 1,218
2046 1 1.64 2,046 0.12 1471 1,471
2090 18 29.51 37,620 2.14 1502 27,036
2200 4 6.56 8,800 0.5 1581 6,324
2420 1 1.64 2,420 0.14 1739 1,739
2530 3 4.92 7,590 0.43 1819 5,457
2640 1 1.64 2,640 0.15 1898 1,898

70
 2728 1 1.64 2,728 0.16 1961 1,961
62942 1 1.64 62,942 3.58 45242 45,242
65802 1 1.64 65,802 3.74 47298 47,298
127666 1 1.64 127,666 7.26 91765 91,765
149996 3 4.92 449,988 25.6 107815 323,445
425480 1 1.64 425,480 24.21 305830 305,830
425590 1 1.64 425,590 24.22 305908 305,908

C. Allotment to QIBs (After Technical Rejections) (Including ASBA Applications)

Allotment to QIBs has been done on a proportionate basis in consultation with BSE. As
per the SEBIICDR Regulations, Mutual Funds were initially allotted 5% of the quantum
of shares available (286,824 Equity Shares) and other QIBs were allotted the remaining
available shares (5,449,660 Equity Shares) on proportionate basis. The total number of
Equity Shares allotted to QIBs is 5,736,484 which were allotted to 17 successful
applicants.

Category Fls/Banks Flls MFs ICs VCs Total

No. of Shares 1,340,113 4,101,081 295,290 - - 5,736,484

D. Allotment to Anchor Investors

Allotment to Anchor Investors has been done in consultation with BRLMs. 1,843,003
Equity Shares were allotted to 4 successful applicants.
Category Flls Banks MFs ICs/ VCs Total
No. of Shares 1,843,003 - - - 1,843,003
The IPO Committee of the Board of Directors of the Company at its meeting held on
December 16,2013 has taken on record the Basis of Allotment of the Issue approved by
the Designated Stock Exchange viz., BSE and has alloted the Equity Shares to various
successful! applicants.
The Confirmation of Allotment Notice cum-Refund Order and allotment advice and
notices have been dispatched to the address of the Bidders as registered with the
depositories on December 16,2013. Further, the instructions to SCSBs have been
dispatched on December 16,2013. In case the same is not received within ten business

71
 days, investors may contact at the address given below. The Refund Orders have been
over-printed with the Bank Account details as registered, if any, with the depositories.
The Equity shares allotted to successful Bidders are being credited to their beneficiary
accounts subject to validation of the account details with the depositories concerned.
Note: All capitalized terms used and not defined herein shall have the respective
meanings assigned to them in the prospectus.
INVESTORS PLEASE NOTE
The details of Allotment made would be hosted on the website of Registrar to the
Issue, Link Intlme India Private Limited at Website: www.linkintime.co.ln
All future correspondence in this regard may kindly be addressed to the Registrar to the
Issue quoting full name of the First/ Sole applicant, Serial number of the Bid-Cum-
Application Form, number of shares bid for, name of the Member of the Syndicate and
Place where the bid was submitted and payment details at the address given below:
Link Intlme India Private Limited
C-13, Pannalal Silk Mills Compound, L.B.S. Marg,

Claris Lifesciences Limited (CLL) Stock Quotes & Charts:

From 20/12/2013 TO 29/12/2013

Last Trade(Rs): 206.25

Change(Rs): +1.15 (+0.56%)
Day Open(Rs): 213.30
Day High(Rs): 213.30
Day Low(Rs): 205.00

72
 Volume: 39,401
Previous Close: 205.10
52 Weeks(Rs): 0.00 - 0.00

IPO Information:
Issue Price(Rs): 228
Listed: Dec 20, 2013
Profit / Loss (Rs): -9.54%

CHART 1

ISSUE PRICE OF CLARIS LIFE SCIENCES LTD:

73
INTERPRETATION:

The above bar diagram shows the issue price of JAYPEE INFRATECH IPO in BSE. X-
axis represents the exchanges traded (i.e. BSE) and Y-axis represents issue price amount
(i.e. Rs 228 in BSE exchange).

CHART -2

74
LISTING DAY OPENING PRICE OF CLARIS LIFE SCIENCES LTD:

INTERPRETATION:

The above chart shows the listing day opening of price Claris Life Sciences Ltd. Here X-
axis represents exchange traded and Y-axis represents the opening price in BSE
exchange. {I.e. Rs 224.40 in BSE }.It opened at low price in the BSE exchange as there
was no demand among the investors.

CHART-3

75
LISTING DAY LOW PRICE OF CLARIS LIFE SCIENCES LTD:

INTERPRETATION:

The above chart shows the listing day low price of Claris Life Sciences Ltd. Here X- axis
represents exchange traded and Y-axis represents the listing day low price in BSE
exchange. {I.e. Rs 198.10 in BSE}.Its because of selling pressure created by the
investors as they want to come out of the stock with profits.

CHART- 4

LISTING DAY HIGH PRICE OF CLARIS LIFE SCIENCES LTD:

76
INTERPRETATION:

The above chart shows the listing day high price of Claris Life Sciences Ltd. Here X-
axis represents exchange traded and Y-axis represents the listing day high price in BSE
exchange. (I.e. Rs 227.90 in BSE).

CHART-5

LAST TRADE OF CLARIS LIFE SCIENCES LTD:

77
INTERPRETATION:

The above chart shows the listing day last price of Claris Life Sciences Ltd. Here X- axis
represents exchanges traded and Y-axis represents the last trading price of Claris Life
Sciences Ltd on listing day in BSE exchange. {I.e. Rs 205.85 in BSE)

SUMMERY OF THE ANALYSIS:

78
S.NO COMPANY ISSUE CLOSING PERFORMANCE
NAME PRICE PRICE OF RETURNS
(in Percentage)
CLARIS LIFE
1 SCIENCES 228 205.10 -9.54%
2 MOIL LTD 375 440.80 19.61%

79
 CHAPTER-V
FINDINGS,SUGGESTIONS AND
CONCLUSIONS

FINDINGS

80
An initial public offering (IPO) is the first sale of stock by a company to the
public. .Broadly speaking, companies are either private or public. Going public
means a company is switching from private ownership to public ownership.
Going public raises cash and provides many benefits for a company .Getting in
on a hot IPO is very difficult, if not impossible. The process of underwriting
involves raising money from investors by issuing new securities .Companies hire
investment banks to underwrite an IPO. An IPO company is difficult to analyze
because there isnt a lot of historical info. Lock-up periods prevent insiders from
selling their shares for a certain period of time. The end of the lockup period can
put strong downward pressure on a stock. IPO is used by a company to raise its
funds. The extra amount obtained from public may be invested in the
development o f the company, although it costs a little to a company but it gives
a way to get more money for long term investments. On the listing day of the
MOIL LTD, the returns generated on the NSE are more compared to BSE. On the
listing day of the Claris Life sciences Limited, the returns generated on the BSE.

The MOIL LTD has subscribed 0.76 times the issue size on the first day, 2.37
times on the second day and 29.10 times on the third day. The Claris Life
sciences Limited has subscribed 0.02 times the issue size on the first day, 0.09
times on the second day and 0.44 times on the third day. The Above Two IPO
subscriptions are performing nearly opposite on first day and second day. In third
day MOIL LTD IPO highest subscribed compare to other company. To compare
in these two IPOs MOIL LTD 29% is subscribed in Final Day.

SUGGESTIONS

81
Suggestions with regard to the study made on Initial Public Offer and Analysis of two
companies IPOs are

1. Company should take into account the world market scenario before making any IPO.

2. Trust among the investors is essential for any company to survive. The company
should plan its offer to fulfill all the interests of the major investors.

3. An effective comparison of operations and pricing should be made with its competitors
in all aspects before going for an IPO.

4. Every company offering stocks through IPO must be aware of its future growth
constraints and then decide upon coming to public, to raise capital through IPO.

5. Management of the company coming to IPO should have the ability to tackle the
negative aspects towards their issue.

6 After the stock is listed, management should be able to perform well in the well from
the day of listing in its operations to attract long-term and medium term customers.

CONCLUSION

82
 As per the study made on the topic IPO and ANALYSIS, I would like to
conclude stating that a company that is need of capital can come to IPO prior to which
they have to make clear analysis about the past records, future growth aspects, proper
price structure, proper issue structure and several other aspects etc.They must be capable
of handling all the information provided in the prospectus. The following points should
be kept in mind by a company coming to IPO

1. Every company planning to come for IPO has to comply with all the above

mentioned procedure.

2. As the investor protection is important, the company has to ensure investors

by offering good prospects in the prospectus.

3. Before coming to an IPO every company has to have a good track record of

financial performance.

4. SEBI is the regulator for all IPOs it has to ensure its due diligence in issue of

shares.

5. The utilization of the funds from IPO is significant and as per the objective

mentioned in prospectus.

6. Listing is important for the company on the stock exchange, so it has to be

done with proper pricing.

83
 BIBLIOGRAPHY

BOOKS:

Investment, Analysis and management by Francis.

Security Analysis by Graham and Dodd.

SITES:

www.bse.in

www.moneycontrol.com

www.investopedia.com

www.google.com

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85