A SYNOPSIS ON

“A Study of Initial public offering (IPO) Followed by Reliance Industries

Limited”

A Synopsis submitted in partial fulfilment of the requirements of Master of Business

Administration (MBA) course of Osmania University during the year 2022-2024
Submitted by
Md Zakir Salman
(140222672123)

Under the guidance of

(Assistant Professor)
Prof. Shaibaz Fareed

Amjad Ali Khan College of Business Administration

DEPARTMENT OF MANAGEMENT

AMJAD ALI KHAN COLLEGE OF BUSINESS ADMINISTRATION

BANJARA HILLS, HYDERABAD.

Introduction:

The Initial Public Offering (IPO) stands as a transformative event in the corporate journey of
companies worldwide. It represents a strategic move, enabling businesses to access public
capital markets, fuel growth, and unlock opportunities for expansion. This project centres on a
comprehensive analysis of the IPO undertaken by Reliance Industries Limited (RIL), a
conglomerate synonymous with innovation, vision, and leadership in the Indian business
landscape.

Reliance Industries Limited, founded by the visionary entrepreneur Dhirubhai Ambani in 1966,
has evolved into a cornerstone of India's economic fabric. With a diversified business portfolio
spanning petrochemicals, refining, telecommunications, and retail, RIL has consistently set
industry benchmarks and contributed significantly to the nation's development. The decision to
embark on the IPO journey is not merely a financial manoeuvre for RIL but a strategic initiative
aligned with its commitment to sustained growth, innovation, and shareholder value creation.

As we delve into the intricacies of RIL's IPO, it becomes imperative to understand the broader
context of the company's historical significance, its current market standing, and the dynamic
industry landscape in which it operates. The rationale behind going public reflects RIL's
forward-looking approach, aimed at leveraging the vast opportunities presented by the capital
market to further strengthen its market position and propel the organization into the next
phase of growth.

This project aims to unravel the layers of decision-making, strategic planning, and execution
involved in RIL's IPO process. Through a meticulous examination of the company's background,
the challenges faced, and the solutions implemented, we endeavour to provide a
comprehensive understanding of the dynamics at play during this critical phase in RIL's
corporate evolution. In doing so, this case study not only sheds light on RIL's strategic choices
but also serves as a valuable resource for businesses contemplating a similar trajectory in the
complex and dynamic landscape of the Indian market.
Company Background:

Reliance Industries Limited (RIL) has etched its name in the annals of Indian business history as
a trailblazer. Founded by the legendary entrepreneur Dhirubhai Ambani in 1966, the company
started as a textile manufacturer in a small town in Gujarat. Dhirubhai's astute business acumen
and relentless pursuit of excellence soon propelled RIL into new frontiers.

The company's initial foray into petrochemicals marked the beginning of its diversification
journey. With each strategic move, RIL demonstrated its ability to navigate complex markets,
innovate, and redefine industry standards. The commissioning of the Jamnagar Refinery,
recognized as one of the largest and most complex refineries globally, further solidified RIL's
position as an industry leader.

The telecommunications sector witnessed a paradigm shift with the entry of Reliance Jio, a
subsidiary of RIL. Offering affordable high-speed data, Jio disrupted the market, rapidly gaining
millions of subscribers and reshaping the digital landscape in India. RIL's retail arm, Reliance
Retail Ventures, has also emerged as a dominant player, with a widespread network of stores
and a diverse product portfolio.

RIL's commitment to sustainability, technological innovation, and social responsibility has

earned it a reputation beyond business excellence. The company's initiatives, such as the
Reliance Foundation, showcase a dedication to community welfare, education, and healthcare.

The decision to go public is not just a financial manoeuvre for RIL but a strategic step aligned
with its vision for sustained growth. This project delves into the historical evolution of RIL, its
diverse business verticals, and the factors that have positioned it as a key player in the Indian
and global markets. Through this comprehensive exploration, we aim to unveil the context in
which RIL's IPO decision was made and the implications it holds for the company's future
trajectory.
Literature Review:

The literature review critically assesses existing scholarly works, financial analyses, and case studies
related to IPOs, particularly in the Indian context. Academic research explores the motivations driving
companies to go public, ranging from fundraising objectives to enhancing visibility and providing
liquidity to existing shareholders. Studies also delve into challenges encountered during the IPO process,
including under-pricing, information asymmetry, and market conditions.

Key themes in the literature review include:

IPO Motivations:

Exploration of why companies opt for IPOs, considering factors such as capital raising, liquidity, and
employee incentives.
Analysis of the strategic considerations involved in the decision-making process for going public.
Challenges in the IPO Process:

Examination of common challenges faced by companies during the IPO journey, including under-pricing,
information asymmetry between issuers and investors, and regulatory complexities.
Evaluation of how market conditions and investor sentiment impact the success of an IPO.
Impact of IPOs:

Exploration of the long-term effects of an IPO on a company's financial performance, market positioning,
and corporate governance.
Assessment of how IPOs contribute to market development and economic growth.
By synthesizing findings from diverse sources, the literature review establishes a theoretical framework
for comprehending the dynamics of Infosys's IPO. It sets the stage for a nuanced analysis of the
company's specific case, considering both broader trends in IPO literature and unique aspects of the
Indian IT industry.
Objective of the Study:

This study aims to conduct an in-depth analysis of Infosys Limited's IPO, leveraging insights from the
literature review to understand the motivations, challenges, and outcomes associated with the
company's decision to go public. The objective is to contribute valuable insights to the academic and
practitioner community, shedding light on the intricacies of IPO processes and their implications.

Research Methodology:

The research methodology involves a combination of qualitative and quantitative approaches,

employing both primary and secondary data sources.

Primary Data:
Interviews: Key stakeholders involved in Infosys's IPO process, including top executives, financial
advisors, and legal experts, will be interviewed to gain insights into the decision-making process,
challenges faced, and strategic considerations.

Secondary Data:
Financial Reports: Annual reports, financial statements, and regulatory filings of Infosys Limited will be
analysed to extract quantitative data related to the financial performance leading up to and following
the IPO.
Regulatory Guidelines: SEBI guidelines and regulations pertaining to IPOs will be examined to
understand the regulatory framework under which Infosys's IPO was conducted.
Existing Literature: Further analysis of existing academic literature, industry reports, and case studies
will complement the primary data, providing a broader context for the study.
This combination of primary and secondary data sources aims to offer a comprehensive understanding
of Infosys's IPO journey, incorporating both internal perspectives and external market dynamics.
Limitations:

Data Availability: The study is dependent on the availability and accuracy of data from various sources,
and any gaps or inconsistencies in the data may limit the depth of the analysis.
Interview Subjectivity: The qualitative insights gathered through interviews may be subjective and
influenced by the perspectives of the interviewees, potentially introducing biases into the study.
Generalization Challenges: The findings may be specific to Infosys Limited and the unique dynamics of
the Indian IT industry, limiting the generalizability of results to other companies or sectors.
Time Constraints: The historical analysis of Infosys's IPO may be constrained by time limitations,
potentially impacting the ability to capture evolving market conditions and long-term consequences
accurately.
External Factors: The study may be influenced by external factors such as regulatory changes or
economic shifts that occurred post-IPO, and these external influences may impact the overall
interpretation of the study's findings.
Introduction

Chapterization:

Introduction
Background of the Study
Rationale for Choosing Infosys Limited
Company Background
Founding and Early Growth
Evolution into a Global IT Leader
Literature Review
IPO Motivations and Decision-Making
Challenges in the IPO Process
Impact of IPOs on Companies and Markets
Objective of the Study
Defining Research Objectives
Significance and Relevance of the Study
Research Methodology
Data Collection Methods
Sampling Strategy
Data Analysis Techniques
Chapterization
Limitation
Constraints and Challenges in the Research Process
Scope and Generalizability of Findings

Bibliography:

Ritter, J. R. (2015). The IPO Decision: Why and How Companies Go Public.
Loughran, T., & Ritter, J. R. (2004). Why Has IPO Under-pricing Changed Over Time?
Smith, A. (2019). Initial Public Offerings: A Practical Guide to Going Public.
Infosys Limited. (2022). Annual Reports and Financial Statements.
Securities and Exchange Board of India (SEBI). (2022). IPO Guidelines.