ABSTRACT

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 refereed to as going to the public entrepreneurs and VCs(venture or vulture capalists sometimes call it cash in up until a company is public(i.e. any one 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 money. 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

CHAPTER
INTRODUCTION

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. 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.

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.

ADVATAGES 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. Similarly in case of companies issues, that is, right-cum-public issues, differential pricing is permissible, a justification for which must be given in the offer document. All companies are required to convert their partly paid up shares into fully paid-up or forfeit the same before making a public / rights issues.

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.

NEED FOR THE STUDY:

This study is useful to the investors to taking decisions relating to investments in IPO. By comparing the Networth Stock Broking ltd 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.

SCOPE OF THE STUDY:

The IPOs have been taken between Nov 2010 to Dec 2010 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.

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 STOCK BROKING LTD 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 STOCK BROKING LTD. The study was limited to the information willingly shared by the

authorities and clients NETWORTH STOCK BROKING LTD.

CHAPTER -
INDUSTRY PROFILE

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. Growth in the number of sub-broker network reflects this (CAGR of 46.1%from 150 in 1993 to 44,074 in 2008) as expansion of sub-brokerage network means less capital outgo for the brokers. 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 portfolio of services. But this is likely not to pay high dividends over the

short to medium term due to the economic, competitive and regulatory headwinds against these service lines. 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. Their success is Likely to draw in other players into this segment. Technology is a key success enabler For this client category and the overall electronification of the industry will progress Rapidly over the next few years.

INDIAN FINANCIAL SYSTEM:

WHAT IS FINANCIAL MARKET 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.

1.2 INTRODUCTION TO IPO 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. 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 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 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 online 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 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.

CHAPTER -
COMPANY PROFILE

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 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. 1NB010638634 & PMS SEBI Regn. 1NP000001371 CDSL DP SEBI Regn. IN-DP-CDSL 251-2004 Commodities Trading: MCX -10585 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 30994985

Mumbai (MF Division) 49, Au Chambers, 4th Floor, Tamarind Lane, Fort Mumbai - 400 001 Maharashtra. Phone Nos.: 022- 22650253

Mumbai (Registered Office) 5, Church gate House, 2nd Floor, 32/ 34 Veer Narirnan Road, Fort Mumbai - 400 001 Maharashtra. Phone No. 022-22850428

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

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 107 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 & 10 employees 2006: Spread over 42 cities (around 70,000 Sq.ft of office space) with over 107 branches & employee strength over 400 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

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.

Key Personnel:

Mr. S P Jain CMD Networth Stock Broking Ltd. A qualified Chartered Accountant with over 15 years of experience capital markets. in the

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.

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 topnotch 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.

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.

Principles & Values: At Net worth Stock Broking Ltd. success is built on teamwork, partnership and the diversity of the people. At the heart of our values lie diversity and inclusion. They are a fundamental part of our culture, and constitute a long-term priority in our aim to become the world's best international bank.

Values:

Responsive Trustworthy Creative Courageous

Approach:

Participation:- Focusing on attractive, growing markets where we can leverage our relationships and expertise Competitive positioning:- Combining global capability, deep local knowledge and creativity to outperform our competitors Management Discipline:- Continuously improving the way we work, balancing the pursuit of growth with firm control of costs and risks Commitment to stakeholders

Customers:- Passionate about our customers' success, delighting them with the quality of our service Our People:- Helping our people to grow, enabling individuals to make a difference and teams to win Communities:- Trusted and caring, dedicated to making a difference Investors:- A distinctive investment delivering outstanding performance and superior returns Regulators: - Exemplary governance and ethics wherever we are.

Net worth Stock Broking BALANCE SHEET ------------------- in Rs. Cr. -------------------

Mar '06

Mar '07

Mar '08

Mar '09

Mar '10

12 mths

12 mths

12 mths

12 mths

12 mths

Sources Of Funds Total Share Capital Equity Share Capital Share Application Money 7.57 7.57 0.21 8.22 8.22 0 11.23 11.23 1.52 11.23 11.23 1.52 11.23 11.23 0

Preference Share Capital Reserves Revaluation Reserves Networth Secured Loans Unsecured Loans Total Debt Total Liabilities

0 6.73 0 14.51 0.3 0 0.3 14.81 Mar '06

0 8.81 0 17.03 0.97 0 0.97 18 Mar '07

0 42.66 0 55.41 0.85 0 0.85 56.26 Mar '08

0 29.47 0 42.22 20.47 0 20.47 62.69 Mar '09

0 22.57 0 33.8 21.77 0 21.77 55.57 Mar '10

12 mths

12 mths

12 mths

12 mths

12 mths

Application Of Funds Gross Block Less: Accum. Depreciation Net Block Capital Work in Progress Investments Inventories Sundry Debtors Cash and Bank Balance Total Current Assets Loans and Advances Fixed Deposits Total CA, Loans & Advances Deffered Credit Current Liabilities Provisions Total CL & Provisions

8.73 2.7 6.03 0 2 0 17.64 0.58 18.22 13.02 11.07 42.31 0 34.16 1.38 35.54

10.73 3.76 6.97 2.78 2 0 19.66 4.11 23.77 16.09 13.87 53.73 0 45.88 1.62 47.5

16.04 3.32 12.72 1.98 10.35 0.05 18.6 2.6 21.25 22.2 41.79 85.24 0 49.67 4.38 54.05

18.72 5.16 13.56 1.16 10.34 0.08 12.39 2.62 15.09 33.36 35.68 84.13 0 42.03 4.48 46.51

18.85 6.74 12.11 0.6 10.35 0.01 27.91 4.26 32.18 24.25 39.65 96.08 0 59.31 4.26 63.57

Net Current Assets Miscellaneous Expenses Total Assets

6.77 0.02 14.82

6.23 0.01 17.99

31.19 0.01 56.25

37.62 0 62.68

32.51 0 55.57

Contingent Liabilities Book Value (Rs)

0.22 18.89

0.24 20.72

1.03 47.98

1.58 36.24

11.57 30.1

Profit & Loss account of Networth Stock Broking

-----------------in Rs. Cr. -----------------Mar '06

Mar '07

Mar '08

Mar '09

Mar '10

12 mths

12 mths

12 mths

12 mths

12 mths

Income Sales Turnover Excise Duty Net Sales Other Income Stock Adjustments Total Income Expenditure Raw Materials Power & Fuel Cost Employee Cost Other Manufacturing Expenses Selling and Admin Expenses Miscellaneous Expenses Preoperative Exp Capitalised Total Expenses

20.37 0 20.37 1.04 0 21.41 0 0 8.75 0 6.57 2.94 0 18.26 Mar '06

28.96 0 28.96 0.86 0 29.82 0 0 13.64 0 9.61 4.24 0 27.49 Mar '07

46.83 0 46.83 2.2 0 49.03 0 0 21.21 0 15.3 9.15 0 45.66 Mar '08

34.56 0 34.56 3.57 0 38.13 0 0 17.53 0 21.47 7.32 0 46.32 Mar '09

44.05 0 44.05 2.53 0 46.58 0 0 18.46 0 23.14 8.97 0 50.57 Mar '10

12 mths

12 mths

12 mths

12 mths

12 mths

Operating Profit PBDIT Interest PBDT Depreciation Other Written Off Profit Before Tax Extra-ordinary items PBT (Post Extra-ord Items) Tax Reported Net Profit Total Value Addition Preference Dividend Equity Dividend Corporate Dividend Tax Per share data (annualised) Shares in issue (lakhs) Earning Per Share (Rs) Equity Dividend (%) Book Value (Rs)

2.11 3.15 0.49 2.66 0.68 0.01 1.97 0.05 2.02 1.28 0.71 18.25 0 0.38 0.05

1.47 2.33 0.98 1.35 1.06 0.01 0.28 0.01 0.29 0.14 0.14 27.49 0 0.38 0.05

1.17 3.37 1.68 1.69 1.62 0.01 0.06 3.19 3.25 0.19 3.05 45.66 0 0.42 0.07

-11.76 -8.19 2.96 -11.15 2.15 0 -13.3 -0.02 -13.32 -0.14 -13.16 46.32 0 0 0

-6.52 -3.99 2.55 -6.54 2.14 0 -8.68 -0.03 -8.71 -0.3 -8.38 50.57 0 0 0

75.7 0.94 5 18.89

82.19 0.17 5 20.72

112.32 2.72 5 47.98

112.32 -11.72 0 36.24

112.32 -7.46 0 30.1

CHAPTER 4 REVIEW OF LITERATURE

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: 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. Presently there are two options available for unlisted companies to come out with a public issue.

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 available audited accounts. 2nd option contribution through offer document) should not exceed 5 times its pressure net worth as per the last

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. Three years out of the immediately preceding 5 years means 3 years audit accounted for a period of at least 36 months are available for computation of minimum track recorded of 3 years of distributed profits. 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. 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.

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 DIMENSION: 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? 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? Is the company confident of strong financial growth in the future so as to sustain the pressure of constant market validation after?

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 funds. Investors need to be shown an investment avenue in the company that can generate the expected return on their funds. Sometimes, the require of funds for the company could be too large to be raised through an IPO without causing too much dilution of promoters stakes. At such times, the company has to formulate an ideal issue structure in consultation with the merchant banker and prune down the size of the issue if necessary.

The Merchant Banking Dimension: 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. In depressed markets, it would be difficult for a company to plan an IPO and get a good pricing and response for the issue. It would even difficult in such a market to find a merchant banker who would be confident of selling the issue comfortably. Therefore, most companies would defer their IPO plans even if they have matured enough and have a requirement for funds. 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.

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. 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 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. At the same time the price should provide reasonable returns to existing investors in a company who wish to make an exit in the issue. Therefore issue pricing is considered a trade off between immediate gains long-term returns to the issuing company and its promoters. 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. 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. A. 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. 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. Additional Conditions: An unlisted company not complying with any of the above conditions may make an IPO of equity shares or convertibles only if it meets following conditions. a. The project has at least 15% participation by financial institutions of which at least 10%comes from the appraisers. In addition to this at least 10% of the issue size is allotted to QIBs, failing which the full subscription monies shall be refunded. b. The minimum post-issue nominal value of equity capital of the company shall be RS. 10 crore. The mandatory conditions ensure that the company has a track record of at least 3 years with minimum net worth and profit record. This would ensure that paper companies couldnt go public just after incorporation making tall claims of future business potential.

B. 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, 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. In a firm allotment, a particular investor or category of them are approached in advance by the lead manager or the issuer of the company to subscribe the issue on firm basis. 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 postissue 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.

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. Similarly, shares held by venture capitalists and shares held for more than one

year preceding the IPO and are being offered for sale in the IPO are excluded from lock-in provisions.

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 price can be determined at a later date before filing the offer document with the ROC. Other Important Issue Requirements: All new issues shall be in dematerialized form can also be made through online interface following the necessary guide lines. The minimum application size shall be worth Rs. 2000. The maximum size of an application can be equal to the net public offer. In an offer for sale, the entire subscription amount shall be brought in at the time of application.

If there are calls on shares, they should be completed within 12 months of the issue.

Over-subscription of a maximum of 10% of the net offer to public can be retained.

Buy back arrangements can be made with a minimum period of 6 months and for a maximum of 1000 shares per allot tee.

Issues should be opened within 365 days from the date of SEBI approval or after 21 days of filing with SEBI.

IPO shall be kept open for a min of 3 days and max of 10 working days.

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. In addition to this, the company should have a post-issue net worth of Rs.20 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. 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.

APPONTMENT OF 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. Size of the issue manager Less than Rs 50 cr Rs 50 cr to Rs 100 cr Rs 100 cr to Rs 200 cr Rs 200 cr to Rs 400 cr Above Rs 400 cr No of lead 2 3 4 5 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. He should also ensure that issuer companies enter into a memorandum of understanding with the intermediary (i.e.) concerned whenever required.

Register to the Issue: 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.

The promoter or director of the issuer company cannot act as a registrar to the issue. If the number of applicants is more than the issuer company can appoint more than one registrar Registered with the board, in consultation with the Lead Merchant Banker. The registrar is solely is responsible for the management of the issue. The Registrar provides administrative support to the issue process. The company enters into an MOU with the Registrar to the Issue, which lays down the terms and conditions of appointment. 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. money to unsuccessful applicants. Acceptance of money payable on allotment and on calls. Debenture Trustees: Refund of application

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. Thus underwriting is the nature of contingency planning in issue management. The lead management should ensure that the underwriters are capable enough to discharge their underwriting obligations. Usually the lead managers assess the capability of the underwriter to meet the underwriting obligations by looking at underwriters assets. 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. Underwriting an issue is optional and not mandatory. However, in case of underwritten issue, the minimum underwriting commitment of the Lead Manager shall be to the extent of 5% of the size of the offer or Rs.25 lakhs, whichever is less. 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. The information regarding the brokers to the issue and the rate of brokerage payable is to be mentioned in the prospectus. The brokers often appoint sub-brokers to assign them in their work. They share the 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. 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. Normally, companies call upon various advertising agencies asking them to make a presentation on their advertising and publicity strategy. 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. Arranging press conference and road shows. Maintaining media relations to ensure adequate press coverage for the issue.

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. Secondly, it does not require approaching QIB investors to subscribe to the issue, which could sometimes prove to be difficult, as these investors need to be thoroughly convinced.

On the other hand, small investors can be persuaded easily if a reasonable short-term market opportunity is visible in the issue. Due to apparent inflexibility in a fixed price issue, it has a lot of uncertainty attached to it in Difficult market conditions. Therefore, after the introduction of the book built system of making issues most companies prefer to use that route.

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. It however operates on the basis of a floor price, which is fixed by the company in consultation with the merchant banker. Companies now can make an issue to the extent of 100% or 75% of the net public offer as they may decide, through the book built route. If the 75% route is followed, the price applicable to the balance 25% under the retail route would be the issue price under the book built portion. And under the 100% route, the entire issue happens through one bidding process applicable to both categories investors.

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: 1. 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. 2. 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. 3. Before embarking on an IPO, the first task is to identify the good merchant banker who can be appointed as lead manager for the issue. The details of the companys project or fund raising plan are discussed with the merchant banker. After the discussion the company finalizes the appointment and enters into a memorandum of understanding with the lead manager. 4. 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.

5. 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. 6. 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. 7. 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. 8. 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 draft prospectus has to be accompanied by the memorandum of understanding signed by the LM with the company. 9. Simultaneously, the company has to make listing applications to all stock exchanges where the shares are proposed to be listed accompanied by at least 10 copies of the draft prospectus. And that prospectus has to be made available to the public by the LM. The LM should also obtain and furnish to SEBI, an in-principle listing approval of the SE within 15 days of filing the draft offer documents with them. 10. 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. Investors have to be given the facility to receive allotments through any one of the depositories or in physical mode according to option.

11. Within 21 days, SEBI would come out with their observations on the prospectus. The SE would also vet any changes to be made to the prospectus. The LM has to file a certificate with SEBI that all amendments and suggestions made by the SEBI have been incorporated in the offer document. 12. 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. 13. 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. 14. The marketing of the issue is usually co-coordinated by the LM with the advertising agency. 15. Advertisements are regulated by DIP guidelines and the rules of the stock exchange. 16. The mandatory collection centers are finalized as per the SEBI guidelines in consultation with the bankers and the LM. 17. The LM and the printer finalize the dispatch schedule to all SE, SEBI, collection centers, investor associations, brokers and underwriters. 18. The marketing should be completed one week before the opening of the issue. Post-Issue Procedures: 1. In issues wherein there is more than one LM, it is usual to entrust the entire postissue responsibility to one LM in inter-se allocation. 2. 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.

3. The main task of the post-issue LM is to coordinate the process of collection of subscription figures from the bankers to the issue, processing of applications by the registrar, dispatch of allotment letters and refund orders to all applicants with in time. 4. The issue is to be closed on the earliest closing date; the LM should ensure that issue is fully subscribed before announcing closure. 5. 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. 6. The LM has to ensure that all issue proceeds are kept in separate bank accounts as provided in the companies Act and the funds are released to the company only after obtaining listing approvals from the respective stock exchanges. 7. The LM has to release an advertisement announcing the closure of the issue on the last day. 8. The responsibility of finalizing the basis of allotment in a fair and proper manner lies with the executive director of the designated stock exchange along with the post-issue LM and the registrar. 9. 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. 10. 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.

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. In the overall process of issue management, the merchant banker plays a variety of roles as an expert advisor to the management of the company, as an auditor who performs due diligence on the company, as an event manager and coordinator to ensure timely completion of the issue, as a watch dog for statutory compliance and as a person in fiduciary capacity for the protection of the interests of investor.

CHAPTER - 5 DATA ANALYSIS & INTERPRETATION

Incorporated in 2006, PTC India Financial Services Ltd (PFS) is an Indian non-banking financial institution, a subsidiary of and promoted by PTC India Limited ("PTC"). They are financial institutions in India that provide both equity and debt financing, including short-term and long-term debt, as well as structured debt financing. They are currently focusing on power generation projects in India. Thet also provide fee based syndication and advisory services as well as carbon credit financing against certified emissions reduction (CER) exclusively to the power sector. As a promoter, PTC holds 77.60% of the equity whereas the remaining 22.40% is shared equally by Goldman Sachs Strategic Investments Limited, Mauritius and Macquarie Group Limited, Australia. PTC is a GoI initiated public-private partnership promoted by National Thermal Power Corporation ("NTPC"), Power Grid Corporation of India Limited ("Power Grid"), Power Finance Corporation Limited ("PFC") and NHPC Limited ("NHPC").
Company Promoters:
Promoter of the Company is PTC India Limited

Objects of the Issue:

The objects of the Issue are:

1. To augment capital base to meet future capital requirements arising out of growth in business; 2. To achieve the benefits of listing on the Stock Exchanges; and 3. Public issue expenses.
Issue Detail:

Issue Open: Mar 16, 2011 - Mar 18, 2011 Issue Type: 100% Book Built Issue IPO Issue Size: 156,700,000 Equity Shares of Rs. 10 Issue Size: Rs. 438.76 Crore Face Value: Rs. 10 Per Equity Share

Issue Price: Rs. 26 - Rs. 28 Per Equity Share Market Lot: 250 Shares Minimum Order Quantity: 250 Shares Listing At: BSE, NSE

Retail Discount

PTC India Financial Services has offered discount of Rs 1 to the Issue Price to Retail Individual Bidders.
PTC India Financial Services Ltd (PFS) IPO Grading

CRISIL has assigned an IPO Grade 3 to PTC India Financial Services IPO. This means as per CRISIL, company has 'Average Fundamentals'. CRISIL assigns IPO grading on a scale of 5 to 1, with Grade 5 indicating strong fundamentals and Grade 1 indicating poor fundamentals.Click here to download the CRISIL IPO Grading Document for PTC India Financial Services Ltd. CARE / ICRA has assigned an IPO Grade 4 to PTC India Financial Services IPO. This means as per CARE / ICRA, company has 'Above Average Fundamentals'. CARE / ICRA 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.
PTC India Financial Services Ltd IPO Tags:

PTC India Financial Services Ltd IPO, PTC IPO, PTC India Financial Services IPO Bidding, PTC India Financial IPO Allotment Status, PTC India Financial Services IPO drhp and PTC India IPO listing.
Issue Subscription Detail / Current Bidding Status

Number of Times Issue is Subscribed (BSE + NSE) Qualified Non Institutional Institutional Buyers Investors (NIIs) (QIBs) 54,845,000 0.0000 0.0100 23,505,000 0.0000 0.0000

As on Date & Time

Retail Individual Investors (RIIs)

Total

Shares Offered / Reserved Day 1 - Mar 16, 2011 17:00 IST Day 2 - Mar 17, 2011 17:00 IST

54,845,000 0.0500 0.1900

133,195,000 0.0200 0.0800

Day 3 - Mar 18, 2011 17:00 IST

2.8500

0.2200

1.1800

1.7000

PTC India IPO News Alerts

1. Tuesday, March 29, 2011 6:07:31 AM

IPO Listing - PTC India Financial Services Ltd (PFS)

2.

Monday, March 28, 2011 3:50:28 AM

IPO Allotment - PTC India Financial Services Ltd (PFS)

3.

Friday, March 18, 2011 11:00:57 AM

PTC India Financial Services IPO finally subscribed 1.70 times

4.

Thursday, March 17, 2011 8:37:10 AM

PTC India Financial IPO subscribed 0.08 times on day 2

5.

Wednesday, March 16, 2011 8:39:59 AM

PTC India Financial IPO subscribed 0.02 times on day 1

6.

Monday, March 14, 2011 4:18:47 AM

PTC India Financial fixes it's IPO price band

7.

Friday, March 11, 2011 4:19:40 AM

Upcoming IPO - PTC India Financial Services Ltd (PFS)

PTC India IPO Rating

491
4.1 Rating:

IPO Reviews
Listing Date: BSE Scrip Code: NSE Symbol: Listing In: Sector: ISIN: Issue Price: Face Value:

IPO Gradings

Recommendations

PTC India IPO Listing Date

Wednesday, March 30, 2011 533344 PFS 'B' Group of Securities Financial Services INE560K01014 Rs. 28.00 Per Equity Share Rs. 10.00 Per Equity Share BSE Rs. 28.00 Rs. 28.00 Rs. 23.50 Rs. 28.00 Rs. 24.90 22,848,585 NSE Rs. 28.00 Rs. 26.75 Rs. 23.50 Rs. 27.00 Rs. 24.90 36,735,853

Listing Day Trading Information

Issue Price: Open: Low: High: Last Trade: Volume:

PTC India IPO Prospectus

Draft Prospectus with SEBI Red Herring Prospectus Download IPO Application Form

Company Contact Information

Registered Office : Second Floor, NBCC Tower, 15, Bhikaji Cama Place, New Delhi 110 066, India Phone: +91 11 4159 5122 Fax: +91 11 4165 9144 Email: complianceofficer@ptcfinancial.com Website: http://www.ptcfinancial.com

PTC India IPO Registrar

Karvy Computershare Private Limited Karvy House, 46, Avenue 4, Street No. 1, Banjara Hills, Hyderabad - 500 034 Andhra Pradesh, India Phone: +91-40-23312454 Fax: +91-40-23311968 Email: einward.ris@karvy.com Website: http://karisma.karvy.com

Report

PTC India IPO Lead Manager(s)

1. Almondz 2. ICICI

Global Securities Limited Report Securities Limited Report 3. JM Financial Consultants Private Limited Report 4. SBI Capital Markets Limited Report

CHART 1 ISSUE PRICE OF PTC INDIA:

Issue Price 30

25

20

15

Issue Price

10

0 BSE NSE

INTERPRETATION: The above bar diagram shows the issue price of PTC INDIA in both BSE and NSE. Xaxis represents the exchanges traded (i.e. BSE AND NSE) and Y-axis represents issue price amount (i.e. Rs 28 in both exchanges)

CHART -2 LISTING DAY OPENING PRICE OF PTC INDIA:

OpeningPrice 28.2 28 27.8 27.6 27.4 27.2 27 26.8 26.6 26.4 26.2 26 BSE NSE OpeningPrice

INTERPRETATION:

The above chart shows the listing day opening price PTC INDIA. Here X- axis represents exchanges traded and Y-axis represents the opening price in both the exchanges. {I.e. Rs 28.00 in BSE and Rs 26.75 in NSE}

CHART-3 LISTING DAY LOW PRICE OF PTC INDIA:

LowPrice 25

20

15 LowPrice 10

0 BSE NSE

INTERPRETATION: The above chart shows the listing day low price of PTC INDIA. Here X- axis represents exchanges traded and Y-axis represents the listing day low price in both the exchanges. {I.e. Rs 23.50 Is the low price in both the exchanges].

CHART- 4 LISTING DAY HIGH PRICE OF PTC INDIA:

HighPrice 28.2 28 27.8 27.6 27.4 HighPrice 27.2 27 26.8 26.6 26.4 BSE NSE

INTERPRETATION:

The above chart shows the listing day high price of PTC INDIA. Here X- axis represents exchanges traded and Y-axis represents the listing day high price in both the exchanges. (I.e. Rs 28.00 in BSE and Rs 27.00 in NSE).

CHART-5 LAST TRADE OF PTC INDIA:

Lasttrade 30

25

20

15

Lasttrade

10

0 BSE NSE

INTERPRETATION:

The above chart shows the listing day last price of PTC INDIA. Here X- axis represents exchanges traded and Y-axis represents the last trading price of PTC INDIA on listing day in both the exchanges. {I.e. Rs 24.90 in both BSE & NSE exchanges)

PTC INDIA FINANCIAL SERVICES LIMITED

Our Company was incorporated on September 8,2006 as a public limited company, in the name of "PTC India Financial Services Limited" under the Companies Act, 1956 ("Companies Act") with the Registrar of Companies, National Capital Territory of Delhi and Haryana. There have been no changes in the name and registered office of our Company since incorporation. Registered Office: Second Floor, NBCC Tower, 15, Bhikaji Cama Place, New Delhi 110 066, India. Website: www.ptcfinancial.com, Company Secretary and Compliance Officer: Mr. Vishal Goyal; Tel.: +91 11 4159 5122; Fax: +91 11 41659144; Email: complianceofficer@ptcfinancial.com BASIS OF ALLOTMENT PUBLIC ISSUE OF 156,700,000 EQUITY SHARES OF FACE VALUE OF RS. 10 EACH ("EQUITY SHARES") OF PTC INDIA FINANCIAL SERVICES LIMITED (THE "COMPANY" OR THE "ISSUER") FOR CASH AT A PRICE OF RS. 28* PER EQUITY SHARE (INCLUDING A SHARE PREMIUM OF RS.18 PER EQUITY SHARE) AGGREGATING RS. 4,387.60 MILLION** (THE "ISSUE") CONSISTING OF A FRESH ISSUE OF 127,500,000 EQUITY SHARES BY THE COMPANY ("FRESH ISSUE") AND AN OFFER FOR SALE OF 29,200,000 EQUITY SHARES BY MACQUARIE INDIA HOLDINGS LIMITED (THE "SELLING SHAREHOLDER") ("OFFER FOR SALE"). THE ISSUE CONSTITUTES 27.88% OF THE POST ISSUE PAID-UP CAPITAL OF THE COMPANY. THE FACE VALUE OF THE EQUITY SHARE IS RS. 10 EACH AND THE ISSUE PRICE IS 2.8 TIMES THE FACE VALUE. "Discount of RS.1 to the Issue Price is offered to Retail Individual Bidders ("Retail Discount"). **Based on actual Allotment Bid/Issue opened on March 16, 2011 and closed on March 18, 2011 (except for Anchor Investors for whom the Bid/Issue was opened for a day, one day prior to the Bid/Issue opening date).

PROMOTER OF THE COMPANY: PTC INDIA LIMITED In terms of Rule 19(2) (b) (i) of the Securities Contracts (Regulations) Rules, 1957 ("SCRR"), as amended, this is an issue for at least 25% of the post-Issue capital. The Issue is through 100% Book Building Process wherein up to 50% of the Issue has been allocated to Qualified Institutional Buyers ("QIBs") (the "QIB Portion"). 5% of the QIB Portion (excluding the "Anchor Investor Portion") has been allocated on a proportionate basis to Mutual Funds only. The remainder of the QIB Portion was made available for allocation on a proportionate basis to QIBs including Mutual Funds, subject to valid Bids being received from them at or above the Issue Price. Further, not less than 15% of the Issue has been allocated on a proportionate basis to Non-Institutional Bidders and not less than, 35% of the Issue has been allocated on a proportionate basis to Retail Individual Bidders, subject to valid Bids being received at or above the Issue Price. The Company and the Selling Shareholder allocated up to 30% of the QIB Portion, to Anchor Investors, on a discretionary basis (the "Anchor Investor Portion") out of which onethird was reserved for domestic Mutual Funds. Bidders (except Anchor Investors) were allowed to participate in this Issue through an Application Supported by Blocked Amount (" ASBA") process providing details about the bank account which were blocked by the Self Certified Syndicate Banks ("SCSBs") for the same. For details see the section titled "Issue Procedure" on page 283 of the Prospectus. The Issue received 31,630 applications for 236,432,250.equity shares resulting in 1.51 times subscription. The details of the applications received in the Issue from Qualified Institutional Buyers, Non-Institutional Investors, Retail Individual Investors and Anchors are as under: (Before technical rejections)
Sl. No. 1 2 3 4 Category Retail Individual Bidders Non Institutional Bidders Qualified Institutional Bidders Anchors Total No. of Applications 31,566 43 18 3 31,630 No. of Shares 54,064,000 2,342,500 156,520,750 23,505,000 236,432,250 Amount % 1,515,211,100 98.58 65,561,000 9.97 4,382,581,000 285.39 658,140,000 100.00 6,621,493,100 150.88

Final Demand A summary of the final demand as per the BSE and the NSE as on the Bid/ Issue Closing Date at different bids is as detailed hereunder:
Bid Price 26 27 28 Cutoff price No. of Shares 719,750 538,750 173,915,500 52,402,750 227,576,750 % to total 0.32 0.24 76.42 23.03 100.00 Cumulative Total 53,692,900 54,231,650 228,147,150 280,549,900 Cumulative % of Total 19.14 19.33 81.32 100.00

The Basis of Allocation (except for Anchor Investor) was finalized in consultation with the Designated Stock Exchange, being the National Stock Exchange of India Limited ("NSE") on March 25,2011.

A. Allocation to Retail Individual Investors (Including Applications Supported by Blocked Amount ("ASBA") (After Technical Rejections) The Basis of Allocation to the Retail Individual Investors, who have bid at cut-off or at the Issue Price of Rs. 28/- per Equity Share (including a discount of Rs.1 /- on the issue price), was finalized in consultation with NSE. This category has been subscribed to the extent of .96 times (after rejections). There were 12,878 applications for 23,117,250 equity shares made under ASBA process. Of these, 12,454 applications for 22,307,750 equity shares were found valid and they were considered for allotment. The total number of shares allotted in Retail Individual Investor category is 52,808,500 Equity Shares which were allotted to 30728 successful applicants. Full and firm allotment was made to all valid applicants in this category. B. Allocation to Non Institutional Investors (After Technical Rejections) The Basis of Allocation to the Non-Institutional Investors, who have bid at the Issue Price of Rs. 28/- per Equity Share, was finalized in consultation with NSE. This category has been subscribed to the extent of 0.09 times and hence allotment was done on full and firm basis to all valid applicants. There were 11 applications for 1,508,250 equity shares made under ASBA process. Of these, 9 applications for 1,493,250 equity shares were found valid and they were considered for allotment. The total number of shares allotted in Non Institutional Investor category is 2,327,500 equity Shares which were allotted to 41 successful applicants. Full and firm allotment was made to all valid applicants in this category. C. Allocation to QIBs The Basis of Allocation to the Qualified Institutional Bidders, who have bid at the Issue price of Rs. 28/- per Equity Share was finalized in consultation with NSE. The category has been subscribed to the extent of 2.85 times and hence allotment was done on proportionate basis. There were 16 applications for 153,454,750 equity shares made under ASBA process which, were found valid and they were considered for allotment. The total number of shares allotted in Qualified Institutional Investors category is 78,059,000 Equity Shares which were allotted to 18 successful applicants.
Category No. of Equity Shares allotted Fls/Banks Flls MFs ICs PF Others Total 38,767,162 17,858,299 7,550,945 13,882,594 78,059,000

D. Anchor Investors The Company allocated 23,505,000 Equity Shares to 3 Anchor Investors in consultation with the Book Running Lead Managers and Co-Book Running Lead Manager. This represents 23.14% of the QIB Portion (including spill over). The IPO Committee of the Board of Directors of the Company at its Meeting held at Hyderabad on March 26,2011 has taken On record the basis of allocation of Equity Shares of the Issue and has accordingly allotted the Equity Shares to the Bidders. The CAN-cum-Refund Orders and allotment advice and/ or notices have been dispatched to the address of the Bidders as registered with the depositories on 28.03.2011. In case the same is not received within 10 days, investors may contact the Registrar to the Issue at the address given below. The instructions to Self Certified Syndicate Banks have been

dispatched on or prior to March 26,2011. The Refund Orders have been over-printed with the bank account details as registered, if any, with the depositories. The Equity Shares allocated to successful applicants are being credited to their beneficiary accounts by March 29,2011 subject to validation of the account details with the depositories concerned. The shares of the company are expected to be listed on Bombay Stock Exchange Limited and National Stock Exchange of India Limited on March 30,2011.

INVESTORS PLEASE NOTE This details of the allocation made would be hosted on the website of Registrar to the Issue, Karvy Computershare Private Limited at http://karisma.karvy.com 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-cumApplication Form, number of Equity Shares bid for, name of the Member of the Syndicate, place where the bid was submitted and payment details at the address given below: Karvy Computershare Private Limited Unit: PTC India Financial Services Limited Plot No. 17 to 24, Vithalrao Nagar, Hitech City Road, Madhapur Hyderabad - 500081, Fax: 040-23420814 Email: einward.ris@Karvy.com PTC India Financial Services Ltd Stock Quotes & Charts:

From 30/03/2011 to 29/06/2011

Last Trade(Rs): 17.55

Change(Rs): +0.10 (+0.57%) Day Open(Rs): 17.55 Day High(Rs): 17.80 Day Low(Rs): 17.30 Volume: 62,039 Previous Close: 17.45 52 Weeks(Rs): 16.55 - 0.00

IPO Information:

Issue Price(Rs): 28 Listed: Mar 30, 2011 Profit / Loss (Rs): -37.32%

Incorporated in 2006, Shilpi Cable Technologies Limited is engaged in the business of manufacturing Radio frequency (RF) cables, widely used in telecom, automobile and power sectors. Companys factory is located in Chopanki, Bhiwadi, Tehsil-Tijara, Dist. Alwar, Rajasthan. Main products of the company are: 1. RF Cables of various sizes for the Telecom Sector 2. Low Voltage Power cables 3. Cable Accesories
Company Promoters:
The Promoters of the Company are:

1. Mr. Mukesh Kumar Gupta; 2. Mr. Manish Goel; and 3. M/s Shilpi Communication Private Limited
Company Financials:
Particulars Total Income Profit After Tax (PAT) The object of the issue are: 30-Sep-10 11,613.89 696.21 For the year/period ended (in Rs. Lacs) 31-Mar-10 31-Mar-09 31-Mar-08 17,480.64 4,733.21 1,143.06 904.06 (398.05) (192.03) 31-Mar-07 0.00 (0.43)

Objects of the Issue:

1. To raise funds for capital expenditure on Cable/ wire assembly shop; 2. To raise funds for capital expenditure on tools for 3G enabling; 3. To raise funds for capital expenditure on augmenting cable manufacturing capabilities; 4. To raise funds for long term working capital requirement for the proposed new businesses; 5. To raise funds for investment in the Subsidiary of the Company, M/s Shilpi Cabletronics Ltd; 6. To raise funds for General corporate purposes ;and 7. To meet the expenses of the issue.

Issue Detail:

Issue Open: Mar 22, 2011 - Mar 25, 2011 Issue Type: 100% Book Built Issue IPO Issue Size: 8,098,762 Equity Shares of Rs. 10 Issue Size: Rs. 55.88 Crore Face Value: Rs. 10 Per Equity Share Issue Price: Rs. 65 - Rs. 69 Per Equity Share Market Lot: 79 Shares Minimum Order Quantity: 79 Shares Listing At: BSE, NSE

Shilpi Cable Technologies Ltd IPO Grading

CARE has assigned an IPO Grade 1 to Shilpi Cable Technologies Ltd IPO. This means as per CARE, company has 'Poor Fundamentals'. CARE assigns IPO grading on a scale of 5 to 1, with Grade 5 indicating strong fundamentals and Grade 1 indicating poor fundamentals.Click here to download the CARE IPO Grading Document for Shilpi Cable Technologies Ltd. Check IPO Ratings from other stock analysts.
Shilpi Cable Technologies Ltd IPO Tags:

Shilpi Cable Technologies Ltd IPO, Shilpi Cables IPO, Shilpi Cable IPO Bidding, Shilpi Cable Technologies IPO Allotment Status, Shilpi Cable IPO drhp and Shilpi Cable Technologies IPO listing.
Issue Subscription Detail / Current Bidding Status
Number of Times Issue is Subscribed (BSE + NSE) As on Date & Time Qualified Institutional Non Institutional Retail Individual Total

Buyers (QIBs) Investors (NIIs) Shares Offered / Reserved Day 1 - Mar 22, 2011 17:00 IST Day 2 - Mar 23, 2011 17:00 IST Day 3 - Mar 24, 2011 17:00 IST Day 4 - Mar 25, 2011 17:00 IST 4,298,246 0.3700 0.7100 1.0400 1.0400 1,289,474 0.0000 0.0000 0.5600 6.3900

Investors (RIIs) 3,008,772 0.0100 0.1200 0.7300 5.7400 8,596,492 0.1900 0.4000 0.8500 3.4800

Shilpi Cables IPO News Alerts

1. Wednesday, April 06, 2011 5:27:56 AM

IPO Listing - Shilpi Cable Technologies Ltd

2.

Saturday, April 02, 2011 9:33:04 AM

IPO Allotment - Shilpi Cable Technologies Ltd

3.

Friday, March 25, 2011 11:03:28 AM

Shilpi Cable IPO finally subscribed 3.48 times

4.

Wednesday, March 23, 2011 10:39:48 AM

Shilpi Cable IPO subscribed 0.40 times on day 2

5.

Friday, March 18, 2011 9:31:15 AM

Upcoming IPO - Shilpi Cable Technologies Ltd

Shilpi Cables IPO Rating

3.3
Rating:

IPO Reviews
Listing Date: BSE Scrip Code: NSE Symbol: Listing In: Sector: ISIN: Issue Price: Face Value:

IPO Gradings

Recommendations

Shilpi Cables IPO Listing Date

Friday, April 08, 2011 533389 SHILPI 'B' Group of Securities Telecom INE510K01019 Rs. 69.00 Per Equity Share Rs. 10.00 Per Equity Share BSE Rs. 69.00 Rs. 78.35 Rs. 45.45 Rs. 84.65 Rs. 47.60 38,498,254 NSE Rs. 69.00 Rs. 78.00 Rs. 45.40 Rs. 84.70 Rs. 48.05 51,820,648

Listing Day Trading Information

Issue Price: Open: Low: High: Last Trade: Volume:

Shilpi Cables IPO Prospectus

Draft Prospectus with SEBI Red Herring Prospectus Download IPO Application Form

Company Contact Information

Registered Office : A-19/B-1 Extension Mohan Cooperative Ind Estate, P.O. Badarpur Mathura Road, New Delhi-110044 Phone: +91-11- 43117900,43117901 Fax: +91-11- 43117922 Email: ipo@shilpicabletech.com Website: http://www.shilpicables.com

Shilpi Cables IPO Registrar

Beetal Financial & Computer Services (P) Limited Beetal House, 3rd Floor, 99, Madangir, Behind Local Shopping Centre, New Delhi 110062 Phone: +91 11 29961281 Fax: +91 11 29961284 Email: shilpi_ipo@beetalfinancial.com Website: http://www.beetalfinancial.com

Report

CHART 1 ISSUE PRICE OF SHILPI CABLE:

Issue Price 80 70 60 50 40 30 20 10 0 BSE NSE Issue Price

INTERPRETATION:

The above bar diagram shows the issue price of SHILPI CABLE 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. Rs 69.00 in both exchanges).

CHART -2 LISTING DAY OPENING PRICE OF SHILPI CABLE:

OpeningPrice 78.4

78.3

78.2

78.1

OpeningPrice

78

77.9

77.8 BSE NSE

INTERPRETATION:

The above chart shows the listing day opening price SHILPI CABLE. Here X- axis represents exchanges traded and Y-axis represents the opening price in both the exchanges. {I.e. Rs 78.35 in BSE and Rs 78.00 in NSE}

CHART-3 LISTING DAY LOW PRICE OF SHILPI CABLE:

LowPrice 45.46 45.45 45.44 45.43 45.42 LowPrice 45.41 45.4 45.39 45.38 45.37 BSE NSE

INTERPRETATION: The above chart shows the listing day low price of SHILPI CABLE. Here X- axis represents exchanges traded and Y-axis represents the listing day low price in both the exchanges. {I.e. Rs 45.45 in BSE & RS 45.40 in NSE].

CHART- 4

LISTING DAY HIGH PRICE OF SHILPI CABLE:

HighPrice 84.71 84.7 84.69 84.68 84.67 HighPrice 84.66 84.65 84.64 84.63 84.62 BSE NSE

INTERPRETATION:

The above chart shows the listing day high price of SHILPI CABLE. Here X- axis represents exchanges traded and Y-axis represents the listing day high price in both the exchanges. (I.e. Rs 84.65 in BSE and Rs 84.70 in NSE).

CHART-5

LAST TRADE OF SHILPI CABLE:

Lasttrade 48.1 48 47.9 47.8 47.7 47.6 47.5 47.4 47.3 BSE NSE Lasttrade

INTERPRETATION:

The above chart shows the listing day last price of SHILPI CABLE. Here X- axis represents exchanges traded and Y-axis represents the last trading price of SHILPI CABLE on listing day in both the exchanges. {I.e. Rs 47.60 in BSE and Rs 48.05 in NSE)

Shilpi Cable Technologies Limited

(Incorporated as 'Rosenberger Shilpi Cable Technologies Limited' at New Delhi on July 09, 2006 under the Companies Act, 1956 with the Registrar of Companies, National Capital Territory of Delhi and Haryana. On October 21, 2008 the name of the Company was changed to 'Shilpi Cable Technologies Limited. For further detaits, please refer to the sections titled "General Information''on page 10 of the Prospectus). Registered Office: A-19/B-1 Extension, Mohan Cooperative Industrial Estate, P.O. Badarpur, Mathura Road, New Delhi-110044, Tel.:+91-11- 43117900, 43117901; Fax: +91-11- 43117922, Contact Person: Sunita Gaur, Company Secretary and Compliance Officer; E-mail: ipo@shilpicabletech.com; Website: www.shilpicables.com BASIS OF ALLOTMENT PUBLIC ISSUE OF 8,098,762* EQUITY SHARES OF Rs. 10/- EACH OF SHILPI CABLE TECHNOLOGIES LIMITED ("SCTL" OR THE "ISSUER") FOR CASH AT A PRICE OF Rs. 69/- PER FULLY PAID UP EQUITY SHARE (INCLUDING A SHARE PREMIUM OF Rs. 59/- PER EQUITY SHARE) AGGREGATING Rs. 5587.72 LACS ("THE ISSUE"). THE ISSUE WILL CONSTITUTE 25.07% OF THE POST ISSUE PAID UP CAPITAL. "Due to rounding off, Six Hundred and Seventeen only (617) additional equity shares have been allotted to Retail Individual Bidders and Non Institutional Bidders as approved by the Board of Directors of the Company in their meeting held on April 01, 2011. BID OPENED ON MARCH 22, 2011, CLOSED ON MARCH 25, 2011 THE FACE VALUE OF THE EQUITY SHARES IS Rs. 10 EACH. THE ISSUE PRICE IS Rs. 69/- PER EQUITY SHARE AND IT IS 6.9 TIMES OF THE FACE VALUE The Issue was made in accordance with Rule 19(2)(b)(l) of the SCRR, as amended and under the SEBI Regulations, where the offer was made through the 100% Book Building Process vherein at least 50% of the Issue shall be allocated on a proportionate basis to Qualified Institutional Buyers (QIB) Bidders. 5% of the QIB Portion (excluding Anchor Investor Portion) shall be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the QIB Portion shall be available for allocation on a proportionate basis to all QIB Bidders, including Mutual Funds, subject to valid Bids being received at or above the Issue Price. Further, not less than 15% of the Issue shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 35% of the Issue shall be available for allocation on a proportionate basis to Retail Individual Bidders, subject to valid Bids being received at or above the Issue Price. If at least 50% of the Issue cannot be allotted to QIBs, then the entire application money shall be refunded forthwith.

Category Anchor Investors

No. of Applications Nil

No. of Shares Nil

No. of Times Subscription -

Qualified Institutional Buyers Non Institutional Investors Retail Individual Investors Total

3 35 9416 9454

4449359 6643742 16828896 27921997

1.10 5.47 5.94 3.45

122 applications for 115340 Equity Shares were not found valid due to technical rejections, with drawls and non-bidding. Final Demand: A summary of the final demand as per BSE and NSE as on the Bid/Issue Closing date at different bid prices is as under:
Bid Price 65 66 67 68 69 Cut Off No. of Shares 7900 1106 1817 1027 13996351 16059357 % to Total 0.03 0.00 0.01 0.00 46.55 53.41 Cumulative Total 30067558 30059658 30058552 30056735 30055708 16059357 Cumulative % to Total 100.00 99.97 99.97 99.96 99.96 53.41

The Basis of Allocation was finalized in consultation with the Designated Stock Exchange, being the Bombay Stock Exchange Limited ("BSE") on 01.04.2011. A. Allocation to Retail Individual Investors (After Technical Rejections) including ASBA Applications The Basis of Allocation to the Retail Individual Investors, who have bid at cut off and the Issue Price of Rs. 69/- per Equity Share, was finalized in consultation with BSE. The category was oversubscribed 5.94 times. The total number of shares allotted in this category is 2834964 Equity Shares to 7850 applicants. The category-wise details of the

Basis of Allocation are as under:

Category 79 158 237 316 395 474 553 632 711 790 869 948 1027 1106 No. of Applications 1139 595 260 200 169 61 44 43 126 102 15 18 17 16 % to Total No. of Total Shares Applied 12.0964 89981 6.3190 94010 2.7613 61620 2.1240 63200 1.7948 66755 0.6478 28914 0.4673 24332 0.4567 27176 1.3381 89586 1.0833 80580 0.1593 13035 0.1912 17064 0.1805 17459 0.1699 17696 % to Total 0.5347 0.5586 0.3662 0.3755 0.3967 0.1718 0.1446 0.1615 0.5323 0.4788 0.0775 0.1014 0.1037 0.1052 No. of Shares Allocated 79 79 79 79 79 80 93 106 120 133 146 160 173 186 Ratio 16 36 1 59 21 60 1 1 1 1 1 1 1 1 95 107 2 88 25 61 1 1 1 1 1 1 1 1 Total No. of Shares Allocated 15168 15800 10270 10586 11218 4800 4092 4558 15120 13566 2190 2880 2941 2976

1185 1264 1343 1422 1501 1580 1659 1738 1817 1896 1975 2054 2133 2212 2291 2370 2449 2528 2607 2686 2765 2844 Total

19 8 29 1712 28 27 1 4 6 3 4
7

42 4 6 7 3 5 7 19 3 4667 9416

0.2018 0.0850 0.3080 18.1818 0.2974 0.2867 0.0106 0.0425 0.0637 0.0319 0.0425 0.0743 0.4460 0.0425 0.0637 0.0743 0.0319 0.0531 0.0743 0.2018 0.0319 49.5646 100

22515 10112 38947 2434464 42028 42660 1659 6952 10902 5688 7900 14378 89586 8848 13746 16590 7347 12640 16249 51034 8295 13272948 16828896

0.1338 0.0601 0.2314 14.4660 0.2497 0.2535 0.0099 0.0413 0.0648 0.0338 0.0469 0.0854 0.5323 0.0526 0.0817 0.0986 0.0437 0.0751 0.1084 0.3033 0.0493 78.8700 100

200 213 226 240 253 266 279 293 306 319 333 346 359 373 386 399 412 426 439 452 466 479

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

3800 1704 6554 410880 7084 7182 279 1172 1836 957 1332 2422 15078 1492 2316 2793 1236 2130 3073 8588 1398 2235493 2834964

C. Allocation to Non Institutional Investors (After Technical Rejections) including ASBA Applications The Basis of Allocation to the Non Institutional Investors, who have bid at the Issue Price of Rs. 69/- per Equity Share, was finalized in consultation with BSE. The category was subscribed to the extent of 5.47 times. Overall 35 applicants for 664372 Equity Shares were found valid and they were considered for allotment. The category-wise details of the Basis of Allocation are as under:
D. Category 4740 6873 18881 21804 28914 36182 50639 55300 72048 72443 86900 142200 144886 144965 287244 363400 507180 No. of Applications 2 6 2 3 1 1 1 1 1 3 1 1 2 1 2 1 1 % to Total No. of Total Shares Applied 5.7143 9480 17.1429 41238 5.7143 37762 8.5714 65412 2.8571 28914 2.8571 36182 2.8571 50639 2.8571 55300 2.8571 72048 8.5714 217329 2.8571 86900 2.8571 142200 5.7143 289772 2.8571 144965 5.7143 574488 2.8571 363400 2.8571 507180 % to Total 0.1427 0.6207 0.5684 0.9846 0.4352 0.5446 0.7622 0.8324 1.0844 3.2712 1.3080 2.1404 4.3616 2.1820 8.6471 5.4698 7.6340 No. of Shares Allocated 867 1257 3452 3987 5287 6615 9259 10111 13173 13245 15889 25999 26490 26505 52519 66443 92731 Ratio 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 .1 1 1 1 1 1 1 1 1 1 1 1 1 1 Total No. of Shares Allocated 1734 7542 6904 11961 5287 6615 9259 10111 13173 39735 15889 25999 52980 26505 105038 66443 92731

579702 72A800 797031 1090200 Total

1 2 1 1 35

2.8571 5.7143 2.8571 2.8571 100

579702 1453600 797031 1090200 6643742

8.7255 21.8792 11.9967 16.4094 100

105991 132886 145727 199329

1 1 1 1

1 1 1 1

105991 265772 145727 199329 1214725

C. Allocation to QIBs Including ASBA Applications Allocation to QIBs has been done on a proportionate basis in consultation with BSE. There were Nil subscription from Mutual Fund accordingly all the shares available for allotment to QIBs were allocated to QIBs as per details given under:Category 1400038 1449255 1600066 Total No. of Applications 1 1 1 3 % to Total No. of % to No. of Shares Total No. of Ratio Total Shares Applied Total Allocated Shares Allocated 33.3333 1400038 31.4661 1274084 1 1 1274084 33.3333 1449255 32.5722 1318873 1 1 1318873 33.3333 1600066 35.9617 1456116 1 1 1456116 100 4449359 100 4049073

Further bifurcation of QIB category for the shares allotted are as under:Flls 4049073 Banks Nil MFs Nil VCs Nil Total 4049073

The Board of Directors of the company at its Meeting held on 01.04.2011 has allotted the shares to various successful applicants as per basis of allotment approved by BSE. The CAN-cum-Refund Orders and allotment advice and notices will be dispatched to the address of the bidders as registered with the depositories on or prior to 26.03.2011 (the date Registrar taken Data from Depositories). Further the instructions to SCSBs have been dispatched on 02.04.2011. In case the same is not received within ten days, investors may contact at the address given below. The Refund Orders have been overprinted with the Bank Mandate details as registered, if any, with the depositories. The Equity Shares allocated to successful bidders are being credited to their beneficiary accounts subjecrto validation of the account details with the depositories concerned. Commencement of Trading: The Company is taking steps to get the equity shares admitted for trading on Bombay Stock Exchange Limited and the National Stock Exchange of India Limited w.e.f. 8th April, 2011.

INVESTORS PLEASE NOTE This details of the allocation made would be hosted on the website of Registrars to the Issue, Beetal Financial & Computer Services (P) Limited at www.beetalfinancial.com. All future correspondence in this regard may kindly be addressed to the Registrar to the issue quoting full name of the First/ Sole bidder, 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: BEETAL Financial & Computer Services (P) Limited Beetal House, 3rd Floor, 99 Madangir, Behind Local Shopping Centre, Near Dada Harsukhdas Mandir, New Delhi -110 062 Tel: 011 29961281, Fax: 011 29961284, E-mail:shilpi_ipo@beetalfinancial.com Website: www.beetalfinancial.com Contact Person: Mr. Punit Mittal SEBI Regn No.: INR000000262 Shilpi Cable Technologies Ltd Stock Quotes & Charts

From 08/04/2011 to 29/06/2011

Last Trade(Rs): 17.05 Change(Rs): +0.80 (+4.92%) Day Open(Rs): 17.05 Day High(Rs): 17.05 Day Low(Rs): 17.00 Volume: 18,592 Previous Close: 16.25 52 Weeks(Rs): 0.00 - 0.00

IPO Information:

Issue Price(Rs): 69 Listed: Apr 08, 2011 Profit / Loss (Rs): -75.29%

SUMMERY OF THE ANALYSIS: S.NO COMPANY NAME ISSUE PRICE CLOSING PRICE PERFORMANCE OF RETURNS

(in Percentage) PTC 1 2 INDIA 28 69 17.40 16.25 -37.32% -75.29% FINANCE SHILPI CABLE

80 70 60 50 40 30 20 10 0 PTC SHILPI CABLE

Issue Price Closingprice

CHAPTER 6 FINDINGS & SUGGESTIONS

FINDINGS:
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 PTC INDIA FINANCIAL SERVICES Limited , the returns generated on the NSE are more compared to BSE. On the listing day of the SHILPI CABLE TECHNOLOGIES Limited, the returns generated on the BSE. The PTC INDIA LTD has subscribed 0.02 times the issue size on the first day, 0.08 times on the second day and 1.70 times on the third day. The SHILPI CABLE Limited has subscribed 0.19 times the issue size on the first day, 0.40 times on the second day and 0.85 times on the third day. The Above Two IPO subscriptions are performing nearly opposite on first day and second day. In third day PTC INDIA LTD IPO highest subscribed compare to other company. To compare in these two IPOs Day. PTC INDIA LTD 1.70% is subscribed in Final

SUGGESTIONS:
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.

CHAPTER 7 CONCLUSION

CONCLUSION

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.

CHAPTER 8 Bibliography:

Bibliography:

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