Project Report

On
Study of IPO recently listed on Stock Market

Submitted by:
PHALIT GUPTA

Submitted to:
SAVITRIBAI PHULE PUNE UNIVERSITY

SUBMITTED IN PARTIAL FULFILMENT OF BACHELOR OF BUSINESS

ADMINISTRATION

Under the Guidance of

Prof. Sonali Bhujbal

INDIRA COLLEGE OF COMMERCE AND SCIENCE

(2019-2022)

1
 Acknowledgment

It gives me great honor while expressing my sense of gratitude towards all those who helped
and guided me during this project.

I would like to express my sincere and profound sense of gratitude to the MapmyIndia for
their inspiring guidance, kindness, constant encouragement and constructive criticism in the
preparation of this report.

I would also like to thank my faculty guide Prof. SONALI BHUJBAL of Indira College of
Commerce and Science, Pune for her complete guidance and encouragement in the
completion of this project.

I would also take the opportunity to thank DR. JANARDAN PAWAR (Principal In charge) and
DR. THOMSON VARGHESE (HOD–BBA and BBA IB) of Indira College of Commerce and Science,
Pune for giving me the opportunity to be a part of this institution and encouraging me to
complete this project.

PHALIT GUPTA
TYBBA ICCS, PUNE

2
 DECLARATION

I, PHALIT GUPTA hereby declare that this project is the record of authentic Work carried out
by me during the academic year 2021 – 2022

Submitted to the Indira College of Commerce and Science is a record of original work done by
me under the guidance of Prof. SONALI BHUJBAL.

This project has been submitted in partial fulfillment of the requirement of Bachelor of
Business Administration [BBA] affiliated to the University of Pune.

The results embodied in this report have not been submitted to any other university or
institute for the award of any degree or diploma.

PHALIT GUPTA
TYBBA(A)
ICCS PUNE

3
 INDEX

S.NO. Content Page No.

1 Introduction to IPO 5 - 12

2 Primary and Secondary Market of IPO 13 - 17

3 Process of IPO 18 - 23

4 Company Profile 24 - 28

5 Grey Market 29 - 32

6 IPO details 33 - 39

7 Literature Survey 40 - 42

8 Objective and Scope of the Survey 43 - 47

9 Data Interpretation and Analysis 48 - 56

10 Finding and Conclusion 57 - 58

11 References 59 - 60

4
 Chapter No. 1
INTRODUCTION TO IPO

5
IPO stands for Initial Public Offering and means the new offer of shares from a company
which was previously unlisted. This is done by offering those shares to the public, which were
held by the promoters or the private investors prior to the IPO. In the case when other
investors or Promoter held the shares the stake holding comes down to the extent their
shares are offered to the public. In other cases, new shares are issued to the public and the
shares, which are with the promoters stay with them. In both cases the share of the
promoters in the total capital comes down.

For example, say there are 100 shares in a company and 50 of these are offered to the public
in an IPO then in such a case the promoter’s stake in the company comes down from 100% to
50%.

In another case the company issues 50 additional shares to the public and the stake of the
promoter comes down from 100% to 67%. Normally in an IPO the shares are issued at a
discount to what is considered their intrinsic value and that’s why investors keenly await IPOs
and make money on most of them. IPO are generally priced at a discount, which means that
if the intrinsic value of a share is perceived to be Rs.100 the shares will be offered at a price,
which is lesser than Rs.100 say Rs.80 during the IPO. When the stock actually lists in the
market it will list closer to Rs.100. The difference between the two prices is known as Listing
Gains, which an investor makes when investing in IPO and making money at the listing of the
IPO. A Bullish Market gives IPO investors a clear opportunity to achieve long term targets in a
short-term phase.

6
1.2 What is an IPO?
An IPO is the first sale of stock by a company to the public. A company can raise money by
issuing either debt or equity. If the company has never issued equity to the public, it's known
as an IPO.

Companies fall into two broad categories: private and public. A privately held company has
fewer shareholders and its owners don't have to disclose much information about the
company. Anybody can go out and incorporate a company: just put in some money, file the
right legal documents and follow the reporting rules of your jurisdiction. Most small
businesses are privately held. But large companies can be private too. It usually isn't possible
to buy shares in a private company. You can approach the owners about investing, but they're
not obligated to sell you anything. Public companies, on the other hand, have sold at least a
portion of themselves to the public and trade on a stock exchange. This is why doing an IPO
is also referred to as "going public."

Public companies have thousands of shareholders and are subject to strict rules and
regulations. They must have a board of directors and they must report financial information
every quarter. In the United States, public companies report to the Securities and Exchange
Commission (SEC). In other countries, public companies are overseen by governing bodies
similar to the SEC. From an investor's standpoint, the most exciting thing about a public
company is that the stock is traded in the open market, like any other commodity. If you have
the cash, you can invest. The CEO could hate your guts, but there's nothing he or she could
do to stop you from buying stock.

The first sale of stock by a private company to the public, IPOs 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 obtains 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. For the individual investor, it is
tough to predict what the stock will do on its initial day of trading and in the near future since
there is often little historical data with which to analyse 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.

7
1.3 IPO Advantages and Disadvantages
ADVANTAGES:

 Increased Capital
A public offering will allow a company to raise capital to use for various corporate
purposes such as working capital, acquisitions, research and development, marketing,
and expanding plant and equipment.

 Liquidity
Once shares of a company are traded on a public exchange, those shares have a
market value and can be resold. This allows a company to attract and retain employees
by offering stock incentive packages to those employees. Moreover, it also provides
investors in the company the option to trade their shares thus enhancing investor
confidence.

 Prestige Increased
Public companies often are better known and more visible than private companies,
this enables them to obtain a larger market for their goods or services. Public
companies are able to have access to larger pools of capital as well as different types
of capital.

 Valuation
Public trading of a company's shares sets a value for the company that is set by the
public market and not through more subjective standards set by a private valuator.
This is helpful for a company that is looking for a merger or acquisition. It also allows
the shareholders to know the value of the shares.

 Increased wealth
The founders of the company often have the sense of increased wealth as a result of
the IPO. Prior to the IPO these shares were illiquid and had a more subjective price.
These shares now have an ascertainable price and after any lockup period these shares
may be sold to the public, subject to limitations of federal and state securities laws.

8
DISADVANTAGES:

 Time and Expense

Conducting an IPO is time consuming and expensive. A successful IPO can take up to
a year or more to complete and a company can expect to spend several hundreds of
thousands of dollars on attorneys, accountants, and printers. In addition, the
underwriter's fees can range from 3% to 10% of the value of the offering. Due to the
time and expense of preparation of the IPO, many companies simply cannot afford the
time or spare the expense of preparing the IPO.

 Disclosure
The SEC disclosure rules are very extensive. Once a company is a reporting company
it must provide information regarding compensation of senior management,
transactions with parties related to the company, conflicts of interest, competitive
positions, how the company intends to develop future products, material contracts,
and lawsuits. In addition, once the offering statement is effective, a company will be
required to make financial disclosures required by the Securities and Exchange Act of
1934. The 1934 Act requires public companies to file quarterly statements containing
unaudited financial statements and audited financial statements annually. These
statements must also contain updated information regarding nonfinancial matters
similar to information provided in the initial registration statement. This usually entails
retaining lawyers and auditors to prepare these quarterly and annual statements. In
addition, a company must report certain material events as they arise. This
information is available to investors, employees, and competitors.

 Regulatory Review
The Company will be open to review by the SEC to ensure that the company is making
the appropriate filings with all relevant disclosures.

9
 Falling Stock Price
If the shares of the company's stock fall, the company may lose market confidence,
decreased valuation of the company may affect lines of credits, secondary offering
pricing, the company's ability to maintain employees, and the personal wealth of
insiders and investors.

10
Parameters to judge an IPO?

 Promoters
Is the company a family run business or is it professionally owned? Even with a family
run business what are the credibility and professional qualifications of those managing
the company? Do the top-level managers have enough experience (of at least 5 years)
in the specific type of business?

 Industry out looks

Is the company a family run business or is it professionally owned? Even with a family
run business what are the credibility and professional qualifications of those managing
the company? Do the top-level managers have enough experience (of at least 5 years)
in the specific type of business?

 Business plan
Check the progress made in terms of land acquisition, clearances from various
departments, purchase of machinery, letter of credits etc. A higher initial investment
from the promoters will lead to a higher faith in the organization.

 Financials
Why does the company require the money? Is the company floating more equity than
required? What is the debt component? Keep a track on the profits, growth and
margins of the previous years. A steady growth rate is the quality of a fundamentally
sound company. Check the assumptions the promoters are making and whether these
assumptions or expectations sound feasible.

 Risk Factors
The offer documents will list our specific risk factors such as the company’s liabilities,
court cases or other litigations. Examine how these factors will affect the operations
of the company.

11
 Key names
Every IPO will have lead managers and merchant bankers. You can figure out the track
record of the merchant banker through the SEBI website.

 Pricing
Compare the company’s PER with that of similar companies. With this you can find
out the P/E Growth ratio and examine whether its earnings projections seem viable.

 Listing
You should have access to the brokers of the stock exchanges where the company will
be listing itself.

12
 CHAPTER NO. 2
Primary and Secondary
Market
of an IPO

13
Primary market and Secondary market of an IPO

In the primary market securities are issued to the public and the proceeds go to the issuing
company. Secondary market is term used for stock exchanges, where stocks are bought and
sold after they are issued to the public.

Primary Market

The first time that a company’s shares are issued to the public, it is by a process called the
initial public offering (IPO). In an IPO the company offloads a certain percentage of its total
shares to the public at a certain price. Most IPO’S these days do not have a fixed offer price.
Instead, they follow a method called BOOK BUILDIN PROCESS, where the offer price is placed
in a band or a range with the highest and the lowest value (refer to the newspaper clipping
on the page). The public can bid for the shares at any price in the band specified. Once the
bids come in, the company evaluates all the bids and decides on an offer price in that range.
After the offer price is fixed, the company allots its shares to the people who had applied for
its shares or returns them their money.

Secondary Market

Once the offer price is fixed and the shares are issued to the people, stock exchanges facilitate
the trading of shares for the general public. Once a stock is listed on an exchange, people can
start trading in its shares. In a stock exchange the existing shareholders sell their shares to
anyone who is willing to buy them at a price agreeable to both parties. Individuals cannot buy
or sell shares in a stock exchange directly; they have to execute their transaction through
authorized members of the stock exchange who are also called STOCK BROKERS.

14
2.1 Why goes public?

Basically, going public (or participating in an "initial public offering" or IPO) is the process in
which a business owned by one or several individuals is converted into a business owned by
many. It involves the offering of part ownership of the company to the public through the sale
of debt or more commonly, equity securities (stock).

Going public raises cash and usually a lot of it. Being publicly traded also opens many financial
doors:

 Because of the increased scrutiny, public companies can usually get better rates when
they issue debt.

 As long as there is market demand, a public company can always issue more stock.
Thus, mergers and acquisitions are easier to do because stock can be issued as part of
the deal.

 Trading in the open markets means liquidity. This makes it possible to implement
things like employee stock ownership plans, which help to attract top talent.

Being on a major stock exchange carries a considerable amount of prestige. In the past,
only private companies with strong fundamentals could qualify for an IPO and it wasn't easy
to get listed.

The internet boom changed all this. Firms no longer needed strong financials and a solid
history to go public. Instead, IPOs were done by smaller startups seeking to expand their
businesses. There's nothing wrong with wanting to expand, but most of these firms had never
made a profit and didn't plan on being profitable any time soon. Founded on venture capital

15
funding, they spent like Texans trying to generate enough excitement to make it to the market
before burning through all their cash. In cases like this, companies might be suspected of
doing an IPO just to make the founders rich. This is known as an exit strategy, implying that
there's no desire to stick around and create value for shareholders. The IPO then becomes
the end of the road rather than the beginning.

How can this happen? Remember: an IPO is just selling stock. It's all about the sales job. If
you can convince people to buy stock in your company, you can raise a lot of money.

16
2.2 Why may company need an IPO?

To meet short-term requirements, the company may approach banks, lenders or may even
accept fixed deposits from the public/shareholders. To meet its long-term requirements,
funds can be raised either through loan from lenders, Banks, Institutions etc., (which carry
financial burden) or through the issue of capital. Capital can be raised through private
placement of shares, public issue, rights issue, etc. Public Issue means raising funds from the
public. Promoters of the company may have plans for the company that may require infusion
of money. The main purpose of the public issue, amongst others, is to raise money through
the public and to get its shares listed at any of the recognized stock exchanges in India. The
following may be some other reasons for a company to go 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.
 Debt financing;
 Exit route for exiting investors.

17
Chapter No. 3
Process of IPO

18
IPOs require a core group of highly skilled professionals who must literally work around-the-
clock for one year. Therefore, one of the first steps to a successful IPO is the formation of a
seasoned, experienced team of professionals who will make the IPO happen. You must recruit
the best possible people you can find - there is no time to supervise inexperienced MBA's
fresh out-of-school.

Month 12: Recruit new management to run the public company - CEO, CFO, etc. Start
compiling the financial information.

Month 11: Start due diligence work - worthless assets are written off, inconsistencies with
GAAP are resolved, etc.

Month 10: Start drafting the prospectus. Coordinate the collection of data to minimize
duplicative efforts.

Month 9: Establish a board of directors for the newly formed public company.

Month 8: Draft three-year historical financial statements.

Month 7: Circulate draft prospectus for comments.

Month 6: Establish transition contracts for services and products that will now be provided to
the newly formed public company. Some new contracts will be needed, such as independent
audits of financial statements.

Month 5: Finalize historical financial statement. Start preparing interim financial statement
for current period.

Month 4: Finalize pro forma and interim financial statements. Make revisions to draft
prospectus.

Month 3: Convene new board of directors. Audit of interim financials should be complete.

Month 2: Outside auditor opinion is issued. Membership with stock exchange is completed.

Month 1: File prospectus with SEC (Securities Exchange Commission). Issue press release and
sell the company to investors.

19
Before the IPO Process is complete, it is essential to implement all of the necessary controls,
procedures, and systems that will now be required within "public life." Staff changes must be
made, new financial systems tested, functions like human resources must be managed, etc.
The entire IPO process is much more involved than most people realize. A great IPO team and
proper planning is the key to a smooth IPO process.

20
3.1 Ideal IPO Process

 On Monday morning, the newspaper should carry an advertisement which is the

prospectus of the IPO, which only talks about the firm and is silent on valuation.

 The IPO should take place on Tuesday evening, from 4 PM to 5 PM. The auction should
be a simple uniform-price auction with full transparency. A picture of the demand
schedule, and the cut-off price, should update on the screen in real-time.

 Investors should be able to go to any NSE terminal and place orders into the auction.
This harnesses 10,000 odd computer screens in 300 cities all over India in the auction
process. From the issuers perspective, NSCC should perform the credit enhancement
exactly as it does on the equity market. At a legal level, all orders on the screen should
be placed by NSCC, thus shielding the issuer from the credit risk associated with
anonymous order placement.

 There should be no fragmentation of the shares on offer. All shares to be sold should
go through a single auction. If a retail investor wanted to "access the IPO at prices
close to the offer price" she would just place noncompetitive bids at the IPO, where
she bids to buy (say) 100 shares at the IPO price, whatever it proves to be.

 Allocation of shares in the depository should take place on Tuesday itself. There should
be no physical shares. Trading on NSE should start on Wednesday (the next day). This
gives us a one-- day lag between the IPO and the start of trading.

21
 This proposed IPO process sounds startlingly effective. To put it in perspective, it is
part of the same disintermediation process that we have seen in other areas of areas
of the financial markets. With anonymous, electronic trading on the equity market,
the broker/dealer has been fundamentally disinter mediated out of secondary market
trading, which is now dominated by the actions of buyers and sellers (and not
intermediaries). In that same fashion, the IPO process proposed here uses technology
to link up the issuer and the investor with a transparent pricing mechanism, and
eliminates the traditional overheads of intermediation.

22
3.2 IPO Market in India

The IPO Market in India has been developing since the liberalization of the Indian economy.
It has become one of the foremost methods of raising funds for various developmental
projects of different companies. The IPO Market in India is on the boom as more and more
companies are issuing equity shares in the capital market. With the introduction of the open
market economy, in the 1990s, the IPO Market went through its share of policy changes,
reforms and restructurings. One of the most important developments was the disassembling
of the Controller of Capital Issues (CCI) and the introduction of the free pricing mechanism.
This step helped in developing the IPO Market in India, as the companies were permitted to
price the issues. The Free pricing mechanism permitted the companies to raise funds from
the primary market at competitive price. The Central Government felt the need for a
governed environment pertaining to the Capital market, as few corporate houses were using
the abolition of the Controller of Capital Issues (CCI) in a negative manner. The Securities
Exchange Board of India (SEBI) was established in the year 1992 to regulate the capital market.
SEBI was given the authority of monitoring and regulating the activities of the bankers to an
issue, portfolio managers, stockbrokers, and other intermediaries related to the stock
markets. The effects of the changes are evident from the trend of the resources of the primary
capital market which Includes rights issues, public issues, private placements and overseas
issues. The IPO Market in India experienced a boom in its activities in the year 1994.In the
year 1995 the growth of the Indian IPO market was 32 %. The growth was halted with the
South East Asian crisis. The markets picked up speed again with the introduction of the
software stocks.

23
 Chapter No. 4

Company Profile

(Map My India)

24
Introduction

MapmyIndia is a leading provider of advanced digital maps, geospatial software, and

location-based IoT technologies in India. The company is a data and technology products and
platforms company, offering proprietary digital maps
as a service (MaaS), software as a service (SaaS), and
platform as a service (PaaS). The company provides
products, platforms, application programming
interfaces (APIs), and solutions across a range of digital
map data, software, and IoT for the Indian market under the (MapmyIndia) brand, and for the
international market under the (Mappls) brand.

The digital maps offered by the company cover 6.29 Mn Km of roads in India, representing
98.50% of India's road network. The company's digital map data provides location, navigation,
analytics, and other information for 7,933 towns, 6,37,472 villages, 17.79 Mn places across
many categories such as restaurants, retail shops, malls, ATMs, hotels, police stations, electric
vehicle charging stations, etc., and 14.51 Mn house or building addresses. The company's
'Real View' maps provide actual roadside and on-ground views based on over 400 Mn geo-
referenced photos, videos, and 360-degree panoramas across India.

The company serves the BFSI, telecom, FMCG, industrials, logistics, and transportation
sectors. MapmyIndia has also entered into various memorandums of understanding with key
government organizations such as the Indian Space Research Organization (ISRO), NITI Aayog,
National e-Governance Division, Ministry of Electronics and Information Technology, and
Government of India. Some of the company's customers include PhonePe, Flipkart, Yulu,
HDFC Bank, Airtel, and Hyundai. The subscription fee, royalty, and annuity payments together
contributed over 90% of the company's revenue for Fiscal 2021.

25
4.1 Competitive Strengths:

 Pioneers of digital mapping in India having an early mover advantage

 Leading the B2B and B2B2C market for digital maps and location intelligence in India
 Proprietary technology and network effect resulting in competitive edge
 Independent, global geospatial products and platforms company with strong data
governance
 Prestigious customers across sectors with strong relationships
 Consistent profitable financial track record

26
4.1 History of MAPMYINDIA

Built India's
1995
Digital map

Launch India's
2004 Internet
Mapping Portal

Launch PAN-
India GPS
2007
Navigation
System

launched IoT
2011
Platform

Launch Map and

Location API 2015
System

Starting Building
Transportation
Platform

Start Building
AI power 2017
System

Launched N-
CASE Mobility
2019 system for
vechile

Launched
Location Power
2020
Enterprise Digital
Suite

Launch Covid-19
2021
Map for Vaccine

27
4.2 Awards and Accolades

2010 and Before

 Auto Bild Golden Steering Wheel Product of the Year

 NDTV Car & Bike Award
 Best Startup Company
 Most promising new product of the year
 Nasscom Corporate Awards for Excellence in Gender inclusivity

2013 to 2011

 Featured in the Harvard Business

 Best application of the year
 Auto Bild Golden Steering Wheel
 Navigation System Car India Magazine
 Automotive Product of the Year Economic Times Zigwheel

2016 to 2014

 Best Company of the Year

 Leadership Award

2017

 Best Company of the Year

 Exemplary Leadership Award
 India’s most trusted mapping company

28
 Chapter No. 5
Grey Market Premium

29
There's a bridge between the colors white and black, which is grey. Just because the name is
grey does not mean it's something bad.

Whenever a company launches its IPO, the whole process from bidding to the allotment till
the listing of shares on the stock exchange, there comes a time when the shares have been
offered but not yet listed on the stock exchange.

During this short period, off-the-table dealing of the shares takes place. This dealing does not
involve the stock exchange or any regulatory body.

Hence, it's not a regulated exchange of shares, but it is not illegal as well.

5.2 How to check the grey market premium price?

The grey market premium price is decided according to the company performance and
probability of subscriptions by each investor category.

Some websites provide live premium price updates on the IPO grey market. These are the
sites where one can go and check the varying premium prices and check the strong chance of
what the listing price of the stock would be on the exchange.

5.3 How are these shares sold in the market?

Well, there is no official business associated with the grey market for dealing with shares.
These shares are sold by brokers or local brokers who act as middlemen between the seller
and the buyer in the IPO GMP.

30
Kostak Rate

The amount one investor pays to the willing buyer or seller of the entire IPO application
before the listing to fix the profits is called Kostak rates.

The Kostak rates application on the investor depends on the IPO allotment. The buyer pays
the Kostak rates for the IPO.

For example, if you completed four applications for one IPO and sold these applications for a
fixed amount of 500 rupees per application, then the investor has secured a profit at 2
thousand rupees. The twist here is that even if out of the four applications, only two get
successfully allowed, still the profit would remain 2k.

But if the holder of the application decides to sell these shares in the market and gets a profit
of 4k, then also he will have to give the 2k to the buyer of the application. This is a secure way
of selling your application in the IPO grey market.

Subject to Sauda

The amount decided when the investors receive the firm allotment on their IPO application is
referred to as the Subject to Sauda.

If one buys or sells the IPO application on the subject to sauda, it means that one can receive
the stated amount if the allotment is successful; otherwise, sauda will be cancelled.

The profit in this case because is determined by the allotment. Again, if one receives an
allotment and sells the application for around rupees 100000, and the profit on a listing day
is around rupees 150000, he will have to pay rupees 50000 to the person who purchased the
application.

31
5.4 Expected return calculation based on different parameters

Returns are calculated based on demand, premium price, allotment. The higher the demand
in the grey market depending on the company's performance, the higher chances of it getting
oversubscribed, and the high chances of allotment happening through lottery basis.

The premium price added to the issue price is mostly the listing price as well, but it might not
be so as well.

32
 Chapter No. 6
MapmyIndia IPO
Detail

33
MapmyIndia IPO through an offer for sale of 10,063,945 equity shares opens for
subscription from 9 Dec to 13 Dec 2021. The face value per share is Rs. 2 and the IPO price
band is Rs. 1000-1033 and lot size is 14 shares

IPO DETAILS:

34
MapmyIndia IPO Important dates

In this section we have covered all important dates related to MapmyIndia IPO. Dates are
updated as they are announced. The most noted dates are IPO start date and IPO end date,
which one should use to participate in IPO.

MapmyIndia IPO Lots Details:

35
Financial Review of MapmyIndia

Revenue from operations comprises the following: (i) revenue from sale of IoT products; and
(ii) sale of map data and software (combined) through royalty, annuity, subscription and
software services. The total revenues for H1FY22 were Rs 122.58 crore and the Issuer posted
profits of Rs 46.77 crore for the same period which is a huge increase (Rs 17.86 in H1FY21,
previous corresponding quarter)

The total revenues increased by 17% in FY21 to Rs 192.27 crore from Rs 163.48 crore in FY20.
But it should be noted that this was derived from an increase in other income by 168% which
was again offset by decrease in revenues by 37% from sale of IoT products due to the
pandemic. During the same period, revenue from sale of map data and software increased by
9%. PAT increased to Rs 59.43 crore in FY21 against Rs 23.20 crore in FY20 due to fall in
employee related expenses and other expenses. Profitability margins have been strong for all
the last three fiscals.

Total revenues for FY20 increased slightly to Rs 163.48 crore from Rs 163.33 crore. During
FY20, revenues from sale of IoT products reduced by 42% and revenues from map data and
software rose by 28% when compared to FY19. PAT reduced to Rs 23.20 crore in FY20 against
Rs 33.57 crore in FY19.

Debt is negligible and return on net worth is 11.52%, 16.60%, 7.79% and 11.77% for H1FY22,
FY21, FY20 and FY19 respectively.

36
Subscription Status:

The shares which are to be allocated for the qualified institutional buyers (QIBs) was
subscribed 196.36 times, while those of non-institutional investors was subscribed a
whopping 424.69 times and that of retail individual investors (RIIs) was subscribed 15.20
times, the data showed.

37
After a strong debut, should you buy, sell or hold MapmyIndia?

Shares of CE Info Systems (MapmyIndia) made a strong debut on Dalal Street, as the scrip was
listed at a premium over its issue price.

One the BSE, the counter debuted at a 53 per cent premium at Rs 1,581 whereas, was listed
at Rs 1,565 on the NSE, a premium of 51 per cent over its issue price of Rs 1,033.

However, CE Info Systems witnessed a strong profit booking during the session as the scrip
tanked about 19 per cent from its issue price to at a low of Rs 1,282.20 on the BSE.

The majority of the analysts are bullish on the software as a service (Saas) player in the long
run and suggest investors hold it for the long term. Most of them also advise fresh buys at
lower levels.

The stock may see more upside once the sentiments are improved. Investors should hold it
for more upside, said Vikas Jain, senior research analyst, Reliance Securities.

However, Jain did not recommend fresh buys at the counter. "The recent correction has given
more attractive alternatives, whereas long-term investors should not worry and continue to
hold considering the higher growth potential."

A day ahead of its debut, the scrip was commanding a premium of Rs 500 per share in the
grey market, hurt by the dampened sentiments at Dalal Street.

Ajit Mishra, VP-Research at Reliance Broking, is highly positive over the counter in the longer
term considering its high growth, robust clientage and niche segment of operation.

"Both long-term and short-term investors should continue to hold the counter, '' he added.
"Investors can accumulate the counter at lower levels only with a long-term view on it."

The Rs 1,039.61 crore IPO of MapmyIndia was open for subscription between December 9-
13. The company had fixed the price band in the range of Rs 1,000-1,033 per share.

Mohit Nigam, Head-PMS at Hem Securities, also has a positive view on the stock as the
company has a unique business with no listed peers, decent financials with no debt and strong
growth prospects.

38
"We advise investors to hold this stock for long-term, and new investors can also add this
stock in dips," he added with a price range of Rs 1,250-1,300 as an attractive buy for
MapmyIndia.

The issue was subscribed 155 times, thanks to strong bidding from QIB and HNI investors.
Their portions were subscribed 196 times and 425 times, respectively. The retail quota was
subscribed 15 times.

Saurabh Joshi, research analyst, Marwadi Shares and Finance, recommended investors book
partial profit and hold the remaining shares for long-term investment.

The company is India’s leading advanced digital maps, geospatial software and location-based
IoT technology provider with a strong clientele. The company's customers include PhonePe,
Flipkart, Yulu, HDFC Bank, Airtel, Hyundai, MG Motor, Avis, Safexpress and Goods and Service
Tax Network (GSTN).

The company is doing well and its business model is sustainable. The new-age technologies,
such as SaaS, PaaS, and MaaS providers, are poised to have a bright future," said Santosh
Meena, Head of Research, Swastika Investmart.

"Investors who applied for the IPO's listing gain should put a stop loss of Rs 1,480 and long-
term investors who got allotments should continue to hold the stock," he added.

"New investors can also look for buying in the dips."

39
 Chapter No. 7
Literature survey

40
A review of ind would make us believe that Initial Public Offerings (IPOs) in India and most
other countries are usually underpriced. A stock issue is deemed to be underpriced if the
closing price on the first day of listing is higher than the IPO price. A review of the literature
on the subject confirms that even though the book building methodology is an improvement
over fixed price IPOs, issues continue to be significantly underpriced. For example, on
average, according to studies, underpricing in the US from 1980 to 2001 was 18.8 per cent. In
the dotcom boom years of 1999 and 2000, underpricing was much higher at about 72 per
cent and 56 per cent, respectively. (Agarwal et. al. (2002); Su and Fleisher (1997); Hunger
(2005)) This understanding of ‘underpricing’ falls short of our understanding, as has been
explained above. In his paper “Revisiting IPO Underpricing in India”, Saurabh Gosh, attempts
to identify the factors explaining IPO underpricing in an emerging economy, India, using 1842
companies that got listed on the Bombay Stock Exchange (BSE) from 1993 to 2001. Unlike the
existing works that analyzed the relation of ex-ante risk proxies and underpricing, this paper
concentrates on volatility of stock return just after listing and underpricing of Indian IPOs.
Contrary to the theoretical prediction, this paper finds a negative relation of underpricing and
volatility.

To avail listing benefits and provide an exit to some of its current stakeholders, CEISL is coming
out with a maiden IPO of a secondary issue as an offer for sale of 10063945 equity shares via
book building route to mobilize Rs. 1039.61 cr. (at the upper cap). It has fixed a price band of
Rs. 1000.00 to Rs. 1033.00 per share having a face value of Rs. 2 per share. Minimum
application is to be made for 14 shares and in multiples thereon, thereafter. The issue opens
for subscription on December 09, 2021, and will close on December 13, 2021. Post allotment,
shares will be listed on BSE and NSE. The issue constitutes 18.90% of the post issue paid-up
capital of the company. The company has allocated 50% for QIBs, 15% for HNIs and 35% for
the Retail investors.

The joint Book Running Lead Managers (BRLMs) to this offer are Axis Capital Ltd., JM Financial
Ltd., Kotak Mahindra Capital Co. Ltd., and DAM Capital Advisors Ltd. while Link Intime India
Pvt. Ltd. is the registrar to the issue.

41
Having issued initial equity shares at par, the company raised further equity in the price range
of Rs. 16.20 to Rs. 123.39 per share (based on FV of Rs. 2 per share). It has also issued bonus
shares in the ratio of 2 for 1 in February 2000, 10 for 1 in March 2006 and 1 for 3 in October
2021. The average cost of acquisition of shares by the promoters/selling stakeholders is Rs.
0.17. Rs. 64.11 / Rs. Negligible, Rs. 0.05, Rs. 0.17, Rs. 7.46, Rs. 8.45, Rs. 10.64, Rs. 11.12, Rs.
12.75, Rs. 52.20 and Rs. 94.50 per share.

Being an OFS, post this issue, CEISL's current paid-up capital of Rs. 10.65 cr. will remain the
same. Based on the IPO pricing, the company is looking for a market cap of Rs. 5500 cr. (at
the upper price band)

Researchers have used specific contexts to estimate earnings management as these provide
perfect "settings” for the managers to manipulate earnings. Besides lPOs, earnings
management has been evaluated in several different contexts by the researchers.

42
 Chapter No. 8
Objective and Scope of the
Survey

43
Primary Objective
 To know perception of investors towards commodity market with specific focus on
Alwar city.

Secondary Objective
 To study the Investor’s preference in commodity market at MAPMYINDIA Ltd.
 To understand the relationship between the demographic factors and the various
factors Influencing the investor’s decision regarding the commodity market
 To know the level of propensity of investors for investing in commodity market
 To identify the mode of investment in which investors invest most
 To know the preference of Commodity Exchange for Investment
 To know the proportion of the income, invest in the Stock Market
 To know the Investor, like to the Invest money
 To know the factors which are important that investors take into consideration before
investing in commodity market

44
8.1 Scope of Study

Study of investors of Ahmadabad city who invest in commodity market.

8.2 Types of research

Basic research advances fundamental knowledge about the world. It focuses on refuting or
supporting theories that explain observed phenomena. Pure research is the source of most
new scientific ideas and ways of thinking about the world. Basic research generates new ideas,
principles, and theories, which may not be immediately utilize bunt one the less, form the
basis of progress and development in different fields. Basic research rarely helps
practitioners directly with their everyday concerns; nevertheless, it stimulates new ways of
thinking that have the potential to revolutionize and dramatically improve how practitioners
deal with a problem in the future.

8.3 Research Design

Research design can be grouped into three categories: -

 Exploratory Research
 Descriptive Research
 Casual Research

This survey is carried out through personal interview of there spondents the study basically
descriptive in nature. Descriptive research design is a scientific method which involves
observing and describing the behavior of a subject without influencing it in anyway.

45
8.4 Sampling Method

The sample method adopted for this study is non-probability convenience. Non-probability
Sampling technique where subjects are selected because of their convenient accessibility and
proximity to the researcher.

8.5 Sampling Design

MapmyIndia Ltd.

8.6 Sample size

In our study, there are 100 respondents that I have survey in Alwar city

8.7 Sample Area

A specific focus on Alwar city

8.8 Data Collection

There are two types of data collection:

 Primary Data
 Secondary Data

Primary Data:
Collected primary data with the survey of the investors.

46
Secondary Data:

Secondary data collection is done with help of published magazines, Internet, Websites
Journals and Books, etc. such information is already investigated and compiled by certain
people or agencies or by government organization.

8.9 Data Collection Instruments

Collected data through Interviewer Administration Questionnaires

8.10 Tools for Statistical Analysis: -

 SPSS
 MS Office

8.11 Limitation of Study

The sampling technique used by unison-probability convenience samplings. So, there can be
selection bias.

Due to time and cost constraint, the study was conducted In Alwar city only.

There can be business from researcher or respondent’s side.

Sample size was 200 respondents only and has been taken as representative of the
population, but it may or may not represent the whole population.

The findings of the study are based on information which was given by the respondents. It
may be possible that there spondents were not provided the right information.

47
 Chapter No. 9
Data Interpretation and
Analysis

48
Gender

Particular Frequency
Male 88
Feamle 12
Total 100

Female, 12

Male, 88

Interpretation

From the above table only 88 respondents are males and 12 peoples are females who are
investing in IPO. It means 88 per are male and 12 per are females those who are investing in
IPO.

49
Occupation

Occupation Frequency
Business 64
Service 22
Profession 9
Self- Employee 4
Broker 1
Total 100

70

60

50

40

30

20

10

0
Business Service Profession Self- Employee Broker

Interpretation:

From the survey we got the result that 64% business people are more investing in the IPO.
And 22% are the service people investing in IPO.

50
Do You Invest in IPO (Initial Public Offer)

Particular Frequency
Yes 45
No 55
Total 100

60

50

40

30

20

10

0
Yes No

Interpretation:

From the above table 55% peoples are not investing in IPO. And 45% peoples are investing in
IPO. It means 45% peoples know about IPO and they are investing in IPO.

51
What do You see before investing in IPO?

Particular Frequency
Promoters Background 6
Sector Performance 33
Performance of existing companies 3
Premium Account 3
Total 45

Total 100

35

30

25

20

15

10

0
Promoters Background Sector Performance Performance of exixting Premium Account
companies

Interpretation:

According to the survey and from the above table 33% peoples are investing in IPO according
to the sector performance.

52
How much percentage have you gained on IPO Listing?

Particular Frequency
10% 10
Upto 10% 17
10% - 15% 18
Total 45
Missing system 55

Total 100

60

50

40

30

20

10

0
10% Upto 10% 10% - 15% Missing system

Interpretation:

From the survey and from the above table 10-15 have gained on IPO listing by 18% and up to
10% have gained on IPO listing.

53
What difficulties did you face after applying an IPO?

Particular Frequency
Refund Problem 11
Delay in Crediting alloted share in Demat Account 7
No Clarity in allotment 24
None of the above 3
Total 45
Missing Number 55

Total 100

60

50

40

30

20

10

0
Refund Problem Delay in Crediting No Clarity in None of the above Missing Number
alloted share in allotment
Demat Account

Interpretation:

From the survey and from the above table no clarity in allotment they face after they applying
IP0, with that problem of refund is also there in IPO at 11%.

54
How do you feel about the procedure of IPO?

Particular Frequency
Easy 2
Difficult 16
Complicated 23
Lengthily 5
Total 46
Missing System 54

Total 100

60

50

40

30

20

10

0
Easy Difficult Complicated Lengthily Missing System

Interpretation:

From the survey and from the above table 23% complicated they feel about the procedure
for the IPO. 16% for difficulty and very less percent like 2% to understand IPO.

55
Your specific knowledge on IPO issue and investment?

Particular Very High Medium Low Very Mean

High Low
Easily Comprehend specific 34 6 4 1 42 1.38
information IPOs like offer,
price, subscription etc.
I try to know the purpose of any 7 33 3 2 45 2.00
IPO issue before investing that
IPO
My knowledge on investing IPO 14 13 12 5 1 2.24
approved process is fair enough
I do understand more about 17 13 10 3 2 2.11
industrial performance before
investing in IPO

Interpretation:

Easily Comprehend specific information IPOs like offer, price, subscription etc. mean score is
1.38 which is near to 1, it means that respondents prefer very high. I try to know the purpose
of any IPO issue before investing that IPO mean score is 2 which is near to 2 that means it
comes under High.

56
 Chapter No.10
Finding and Conclusion

57
 From the above table only 88 respondents are males and 12 peoples are females who
are investing in IPO. It means 88 per are male and 12 per are females those who are
investing in IPO.
 From the survey we got the result that 64% business people are more investing in the
IPO and 22% are the service people investing in IPO.
 From the above table 55% peoples are not investing in IPO. And 45% peoples are
investing in IPO. It means 45% peoples know about IPO and they are investing in IPO.
 According to the survey and from the above table 33% peoples are investing in IPO
according to the sector performance.
 According to the survey and from the above table peoples are investing in the IPO
from the last 2-5 years only.
 From the survey and from the above table 45% peoples are grading before the
investing in the IPO.
 From the survey and from the above table 10-15 have gained on IPO listing by 18%
and up to 10% have gained on IPO listing.
 From the survey and from the above table no clarity in allotment they face after they
applying IP0, with that problem of refund is also there in IPO at 11%.
 From the survey and from the above table 23% complicated they feel about the
procedure for the IPO. 16% for difficulty and very less percent like 2% to understand
IPO.
 Easily Comprehend specific information IPOs like offer, price, subscription etc. mean
score is 1.38 which is near to 1, it means that respondents prefer very high. I try to
know the purpose of any IPO issue before investing that IPO mean score is 2 which is
near to 2 that means it comes under High.

58
Chapter No. 11
References

59
References:

http://www.chittorgarh.com/ipo/ipo_list.asp

http://dealbook.nytimes.com/2011/05/27/why-i-p-o-s-get-underpriced/

www.ssrn.com

www.nseindia.com

www.moneycontrol.com

60