A

PROJECT REPORT

ON

“INVESTING IN IPO”

AT

HDFC BANK LIMITED

SUBMITTED BY

THUM VISHNU

H.T.NO 1168-22-672-023

UNDER THE GUIDANCE OF

MRS. P.S.R. DIVYA

ASSISTANT PROFESSOR

SUBMITTED IN PARTIAL FULFILMENT FOR THE AWARD OF DEGREE

IN

MASTER OF BUSINESS ADMINISTRATION

BY

OSMANIA UNIVERSITY

R.G.R SIDDHANTHI COLLEGE OF BUSINESS MANAGEMENT

BOLTON ROAD, SECUNDERABAD

2022-2024
 DECLARATION

I hereby declare that this Project Report titled “INVESTING IN IPO” submitted by
me to the Department of Business Management, O.U. Hyderabad, is a bonafide work
undertaken by me and it is not submitted to any other University or Institution for the
award of any degree diploma / certificate or published any time before.

THUM VISHNU Signature

 CERTIFICATION

This is to certify that the Project Report title “INVESTING IN IPO” submitted in
partial fulfillment for the award of MBA Programme of Department of Business
Management, O.U. Hyderabad, was carried out by THUM VISHNU under my
guidance. This has not been submitted to any other University or Institution for the
award of any degree/diploma/certificate.

Mrs P.S.R. DIVYA Signature

 ACKNOWLEDGEMENT

I sincerely express my humble and heartfelt thanks to the management of

R.G.R Siddhanthi college of Business Management for permitting me to take up the
project work at the HDFC BANK LIMITED.

I take much pleasure to express my deep sense of gratitude and

thankfulness to my project guide Mrs P.S.R. DIVYA, ASSISTANT PROFESSOR
for their valuable guidance and constant cooperation throughout my project work.

I am thankful to the Principal Dr. AMRUTA PANDE for giving me this

opportunity. My special acknowledgment to the faculty of the management of our
college for sharing their insight and experience with me.

I would like to extend my sincere thanks to Mr. RAJ KUMAR,

BRANCH MANAGER who gave me the opportunity to carry out this project in their
organization.

I express my wholehearted thanks to all my family members and friends

for their support and encouragement.

THUM VISHNU

1168-22-672-023
 (HDFC BANK LIMITED)

DATE:06/06/2024

CERTIFICATE

This is to certify that Mr/Ms. THUM VISHNU bearing Hall Ticket No.1168-22-672-
023, student of R.G.R Siddhanthi college of Business Management, Secunderabad, has
completed his/her project titled “INVESTING IN IPO” in our organization successfully
as a partial fulfillment for the award of degree in Master of Business Administration,
during the period of 45 days.

HDFC BANK LIMITED

Signature
 ABSTRACT

An IPO is an initial public offering, in which shares of a private company are made available

to the public for the first time. An IPO allows a company to raise equity capital from public

investors. Initial public offering is the process by which a private company can go public by

sale of its stocks to general public. It could be a new, young company or an old company which

decides to be listed on an exchange and hence goes public. Companies can raise equity capital

with the help of an IPO by issuing new shares to the public or the existing shareholders can sell

their shares to the public without raising any fresh capital. A company offering its shares to the

public is not obliged to repay the capital to public investors. The company which offers its

shares, known as an 'issuer', does so with the help of investment banks. After IPO, the

company's shares are traded in an open market. Those shares can be further sold by investors

through secondary market trading. The transition from a private to a public company can be an

important time for private investors to fully realize gains from their investment as it typically

includes a share premium for current private investors. Meanwhile, it also allows public

investors to participate in the offering.

 CHAPTER-I

INTRODUCTION
 INTRODUCTION
An initial public offering (IPO), referred to simply as an "offering" or "flotation", is when a

company (called the issuer) issues common stock or shares to the public for the first time. They

are often issued by smaller, younger companies seeking capital to expand, but can also be done

by large privately-owned companies looking to become publicly traded.

In an IPO the issuer may obtain the assistance of an underwriting firm, which helps it determine

what type of security to issue (common or preferred), best offering price and time to bring it to

market.

An IPO can be a risky investment. For the individual investor it is tough to predict what the

stock or shares will do on its initial day of trading and in the near future since there is often

little historical data with which to analyze the company. Also, most IPOs are of companies

going through a transitory growth period, and they are therefore subject to additional

uncertainty regarding their future value.

Capital market is an essential pre-requested for industrial and commercial development of a

country. Capital market refers to the institutional arrangement which facilitates the borrowings

and lending of long term fund. In capital market we can divided into two parts they are primary

and secondary market. In primary market also known as new issue market. It represents primary

market where new securities i.e. shares or bonds that have never been previously offered.The

importance of this study is analyzing the IPO scrip’s during the year 2015 to 2022. This study

based on differences of Issue price and LTP. In order to whether the IPO’s are overpriced or

under priced. The investor how get the gain or loss.The study continued based on the only 2

parameters they are Issue price and LTP. The differences of LTP & Issue price we can describe

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the scrip is overpriced or under priced. Not other parameters considered. This study shows that

sector wise scrip’s are overpriced or under priced.

In this study find the IPO how gives the benefits and given the guidelines

and suggestions to the investor. Before selecting a company the investor should think about the

company. A good investor should diversify and reduces his risk by investing in different

securities. Primary market returns are very attractive in short period especially on the day of

listing. But investor in IPO’s should take wise decision in choosing the best company.

SCOPE OF THE STUDY:

1) The study covers only BSE listed securities of primary market.

2) Only LTP and Issue price are taken into consideration for judging whether the scrip’s

are under priced or over priced not considering other parameters.

3) The study covers the period from year2023-2022 only

4) Study covers randomly selected scrip’s under various sectors.

OBJECTIVES THE STUDY:

1. The objective of doing this project is mainly to make a study of trends in primary market

from 2023-2022 with special reference to LTP (Last Traded Price) and Issue Price.

2. To examine the difference between LTP and Issue Price of various scraps in different sectors.

3. To assess whether the Issue Price are over priced or under priced based on difference

between LTP and Issue Price.

4. To examine gain or loss to the investor based on the above study.

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 RESEARCAH METHODOLOGY

The data collection methods include both primary and secondary collection methods.

Primary Data: This method includes the data collected from the personal interaction

with authorized members of HDFC BANK LTD.

Secondary Data: The secondary data collection method includes:

The lecturers delivered by the superintendents of respective departments.

The brochures and material provided by HDFC BANK LTD.

The data collected from the magazines of the BSE, economic times, BSE website, etc.

Various books relating to the investments, capital market and other related topics.

TOOLS USED FOR ANALYSIS:

1) TABULATION: A Table is a systematic arrangement of statistical data in rows and

columns. Rows are horizontal arrangements whereas columns are vertical. Tabulation is a

systematic presentation of data in a form suitable for analysis and interpretation.

The tables used are as follows:

a) One way table: It presents only one characteristic and hence in answering one or more

independent questions with regard to those characteristics.

b) Two-way table: It contains sub divisions of a total and is able to answer two mutually

dependent questions.

2) DIAGRAMETIC AND GRAPHICAL REPRESENTATION OF DATA: A picture is

worth a thousand words. The impression created by a picture has much greater impact than

any amount of detailed explanation. Statistical data can be effectively presented in the form

of diagrams and graphs. Graphs and Diagrams make complex data simple and easily

understandable. They help to compare related data and bring out subtle data with amazing

clarity.

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 The Diagram used are as follows:

a) Bar diagrams: Bar diagrams are used specifically for categorical data or series. They

consist of the group of equi-distant rectangles, one for each group or category of data

in which the values of magnitudes are represented by length or height of rectangles.

b) Sample Bar diagram: It is used of comparative study of two or more aspects of a single

variable or single category of data.

LIMITATIONS OF THE STUDY:

A good report sells the results of the study. But every project has its own limitations. These

limitations can be in terms of

1) The project doesn’t study the whole primary market due to time availability and course

requirement.

2) Project doesn’t consider whole issues under each sector due to time limitation. It takes

Into consideration randomly selected issues

3) Limited to a particular period: Data under consideration is taken from 2023 Previous

years are not taken into consideration.

4) Partial fulfillment: Project studied doesn’t fulfill all requirements because it does not

study the whole primary market due to time availability and course Requirement. It only

fulfills the partial requirement as it studies only certain Important aspects of primary

market.

5) Approximate results: The results are approximated, as no accurate data is Available.

6) Study takes into consideration only LTP and issue prices and their difference for

Concluding whether an issue is overpriced or under priced leaving other.

7) The study is based on the issues that are listed on BSE only.

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 CHAPTER-II

REVIEW OF LITERATURE
 REVIEW OF LITERATURE

This project focuses on the relatively unexplored area of primary equity markets in India.

Its broad goal is to begin the process of understanding how and why primary markets

develop.

Primary markets are where the firms raise capital through the issuance of financial

securities traded after insurance. The research will examine the development of domestic

primary market, focusing on macro economic factors. With the abolition of Control over

Capital Issues prior approval of capital issue proposals by companies has been dispeBSEd

with. The companies are required now to be fair and honest to the investing public by

disclosing all material facts along with the risk factors associated with their projects to the

public. The present practice of brochure which is circulated widely to the investors along

with application form has been replaced with abridged prospectus to be attached to the New

Issue application forms.

The word “market” can have different meanings but it is used most often as a catchall

term to denote both primary and secondary market. Infact primary market and secondary

market are both distinct terms that refers to the market where securities are created and the

one in which they are traded among investors respectively. Knowing the functions of

primary and secondary market is the key to understanding how stocks trade. Without them,

the stock market would be much harder to navigate and much less profitable. We will help

you to understand how these markets work and how they relate to individual investors.

The primary market is that part of capital markets that deals with issuance of new

securities. Companies, government or Public sector institutions can obtain funding through

the sale of new stock or bond issue. This is typically done through a syndicate of securities

dealers .The process of selling new issues to the investors is called Underwriting. In the

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case of new stock issue, this sale is called an IPO (Initial public offering). Dealers earn a

commission that is built into the price of the security, though it can be found in the

prospectus.

The market in which investors have the first opportunity to find a newly issued security.

After the first purchases, subsequent trading is said to occur in secondary market. The

primary market is where securities are created. It is in this market that firms sell (float) new

stock and bonds to the public for the first time. For our purposes, you can think of a primary

market as being synonymous with an IPO. Simply put, an IPO occurs when a private

company sells stocks to the public for the first time.

METHODS OF FLOATING NEW ISSUES:

The various methods which are used in floatation of new securities in the new issue market

are

1) Public Issue / Offer through Prospectus

2) Offer for sale

3)Private Placement

4) Right Issues

5) Stock Exchange Pricing

6) Subscription by inside coteries

1) PUBLIC ISSUES: This is the most common method followed by joint stock companies

to raise capital through the issue of new securities. Under this method, the issuing

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 company directly offers to the general public or institutions a fixed number of shares at

a stated price through a document called prospectus.

The purpose of raising the new capital is to finance some capital expenditure,

it is usual for companies to issue a prospectus inviting the public to take up the new

securities. Legally no public limited company can raise capital from public without

issuing prospectus.

2) OFFER FOR SALE: Under this method the company sells the shares /securities to the

issue house / brokers at an agreed price . The issue house/brokers sell their shares

/ securities to the investors at a higher price.

The company is relieved from the problem of printing and advertisement of

prospectus and making allotment of shares . Offer for sale is not common in India

3) PRIVATE PLACEMENT: The promoters sell their shares to their friends , relatives

and well wishers to obtain the minimum subscription which is a precondition for issue

of shares to the public.

Once this precondition for issue of shares is met , the issue house/brokers buy

the securities out right with the intention of placing them with their clients afterwards.

The issue house/brokers maintain their own list of clients and through customer

contact sell the securities. The main disadvantage of this method is that the securities

are not widely distributed to the large section of investors.

4) RIGHT ISSUES: Rights issue is a method of raising funds in the market by an existing

company. A right means an option to buy certain securities at a certain privileged price

within a specified period.

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 Shares so offered to the existing shareholders are called Right shares. Right

shares are offered to the existing shareholders in a particular proportion to their existing

shareholders. The company should abide with section 81 of the companies act.

If the shareholders fail to take the Right shares within a specified period, the

balance is to be equally distributed among applicants for additional shares. Any balance

still left over may be disposed off in the market.

5) STOCK EXCHANGE PLACING: this method has been discontinued in India due to

strict regulations and statutory rules for listing of securities. According to it, “A

company used to place its shares privately with the aid of brokers, and then secured

permission for dealing on stock exchange”. This method involved little cost but often

led to concentration of new shares in few hands.

6) SUBSCRITION BY INSIDE COTERIES: when a company goes to the new issue

market a certain percentage of the capital is kept in reserve for subscription by inside

coteries.

SEBI GUIDELINES FOR NEW ISSUE MARKET:

The SEBI guidelines for different category of companies are as follows

A) NEW COMPANY: A new company is a company which has not completed twelve

months of production and where the promoters do not have a track record. These

companies have to issue shares only at par.

B) PRIVATE AND CLOSELY HELD COMPANIES: These companies having a track

record of consistent profitability for last three years, are permitted to price their issues

freely.

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C) EXISTING LISTED COMPANIES: The existing limited companies will be allowed

to raise fresh capital by freely pricing its shares provided the promoters contribution is

50% on first 220 cores of issue.

D) DIFFERENTIAL PRICING: Issue to the public can be priced differentially as

compared to issue to right shareholders justification for the price difference should be

mentioned in the offer document.

E) LOCK IN PERIOD: Lock in period is five years for promoters contribution from the

date of allotment or from commencement of commercial production whichever is later.

F) GUIDELINES FOR PUBLIC ISSUE:

 Every application should be accompanied with an abridged prospectus.

 The risk factors should be highlighted in the abridged prospectus.

 Company’s management, Past history and present business of the firm should

be highlighted in the prospectus.

 Justification for premium should be stated

 The public issues should be kept open for a minimum of three days and a

maximum of ten working days.

 The quantum of issue should not exceed the amount specified in the prospectus

 Compliance report in the prescribed form should be submitted to SEBI within

forty five days from the date of closure of issue.

 The allotment of shares has to be made in multiples of tradable lots if the

minimum of subscription of ninety percent has not been received the entire

amount is to be refunded to the investors within 180 days.

 Underwriting has been made mandatory

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  The gap between the closure date of various issues i.e. rights and public should

not exceed thirty days.

RECENT TRENDS AND DEVELOPMENTS IN NEW ISSUE

MARKET:

The recent economical changes i.e. privatization, liberalization, foreign private

participation, disinvestment in public sector have given a new direction to the capital market.

The number of issues made and the amount of capital raised from the market has been

phenomenal in the last decade. The public sector organizations like financial institutions, public

sector undertaking have started dominating the primary market. In 2296-97, all public financial

institutions including IDBI, IFCI,HDFCand many public sector backs have mobilized

resources through public issue route. There is a major decline in the equity at premium issues

over the years.

CAPITAL MOBILISED THROUGH DEBT: the late 90’s have witnessed the bent of capital

market for the issue of debt as that period is characterized with high interest rates and negative

returns from the secondary market.

MUTUAL FUNDS: New mutual funds were set up during the last decade. Many investors are

turning towards mutual funds to take the advantage of expertise in investments and lowering

of investment risk.

SEBI has dispeBSEd with the requirement of a minimum promoters contribution and lock

in for listed companies with a three year dividend track record in the past five years

The lock in period for employees in their stock option schemes was withdrawn but lock

in will still apply to any preferential allotment made to promoters. The pricing of such issues

would be based on market prices.

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 The market reforms include the introduction of electronic trading with the setting up of

OCTEI and BSE.th process of Book building was encouraged and IPO through Book building

has picked up.

Credit rating was made mandatory for some issues. This step has built the customer

confidence in the market. Qualitative changes included the introduction of new innovative

financial instruments. Certain innovative financial instruments were designed to suit the

investors requirement. With the globalization of business, foreign markets have welcomed

Indian companies. The Indian companies have issued GDR (global depository receipts) and

ADR (American depository receipts) , foreign currency bomds , euro currency bonds etc.

TO SUGGEST GUIDELINES TO INVESTORS:

1. The investor should purchase the shares after a detailed study about the company.

(That includes fundamental analysis, economical analysis and technical analysis.)

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

3. The investor should have a clear idea about the financial position, than determine an

appropriate allocation mix of the assets, which maximizes the returns.

4. An easy solution to investor is to invest in to mutual fund schemes through a systematic

investment plan (sip) the mutual fund gives you a well diversified, professionally

managed portfolio at low cost

5. Investor need to develop a long term investment mindset rather than short term

investment to get more returns or for achieving financial goals

6. Investors emotions and judgment plays a dynamic role in investment process. The

investor should control his emotion and impatience and he should take strong decision

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7. A good investor should diversifies and reduces his risk by investing in different

securities which contained different risks and returns in order to achieve his goals

8. The investor should understand the market psychology apart from fundamental

analysis. Because these psychological factors have a greater impact on market.

9. The investor must to review and revise the portfolio periodically. Based on

circumstances he should change the production of the stock

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

prices.

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

a) Investment on government fixed deposits

b) Dividend on certain shares

c) UTI units

18. If investor wants to manage their investment aggressively, you have to monitor important

developments affecting the economy, various industrial sectors, and individual

companies.

Investor has to develop sound standards for selecting growth stocks and hold growth

stocks as long as they remain growth stocks

18. For purchasing stock of any company the investor to analyze the potentiality or worthiness

of the product, profitability, treatment of HR, innovative ideas of the company, integrity

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

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 22. Participate in different schemes of mutual funds and high liquidity stocks.

Investors more crazy about the new issues because:

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

price”

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

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

following way

iv. What is track record of the company

v. Is there adequate assurance of the availability of inputs

vi. How strong they are developing the market for product

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

PROBLEMS OF NEW ISSUE MARKET:

The problems of new issue market can be summarized as follows:

A) The new issue market failed to mobilize adequate savings from the household sector. Only 22

% of the financial savings was mobilized. One reason for such failure is lack of awareness

among these sector and private placement of capital by the companies.

B) The new issue market has failed to communicate to the public the benefits of investing in new

instruments.

C) Merchant banks have failed to bridged the gap between the investors and the companies . they

have failed to evaluate the projects taken up by companies, credentials of promoters, technical

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 and managerial aspects, etc. this has led to customers being duped by companies. SEBI has

now brought out stringent guidelines for companies and merchant bankers.

D) Investment in capital markets are considered to be risky. So the risk averse attitude of customer

have diverted the investment from shares to fixed deposits and debentures.

E) Abnormally high cost of flotation has kept away small companies from the primary market.

F) NIM has not reached to the semi urban and rural areas. An investor from this region has to

spend additional cost for post and bank charges to access the NIM.

G) Delay in allotment of shares, refunding of application money, posting of share certificates etc

are common anomalies in NIM

H) New companies failed to gain the favor of underwriter. Caution investors have stayed away

from new companies, which led to devolution on underwriters.

I) Timing of an issue is very important. But companies failed to keep an eye on the other issues

which are made during the same time. Thus crowding of new issues at one time has made the

investor to select the one which he considered to be worthy.

INITIAL PUBLIC OFFERING

IPO is an acronym for initial public offering. This is the first sale of stock by a company to the

public. A company can raise money by issuing either debt or equity. If the company has never

issued equity to the public , it is known as an IPO. Corporate may raise capital in the primary

market by way of an IPO, right issue or private placement.

Companies fall into two broad categories private and public. A privately held company

has fewer shareholders. Anybody can come out and incorporate a private company, put in some

money file the right legal documents and follow the reporting rules. Most smallbusinesses are

privately held, but large companies can be private too. IKEA, Domino’s pizza

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and Hallmark cards are all privately held. It usually is not possible to buy shares in private

company. The shares of private company are not offered to general public.

On the other hand public companies can sold at least a portion of themselves to the

public and trade on stock exchange. This is why doing an IPO is also referred to as going

public. Public companies have thousands of share holders and are subjected to strict rules and

regulations.

WHY GO PUBLIC?

Going public raises cash , being publicly traded also opens many financial doors .Because of

increased scrutiny public companies can usually get better rates when they issue debt. As long

as there is a market demand a public company can always issue more stock.

Trading in open market means liquidity. Being on a major stock exchange carries a

considerable amount of prestige. In past companies with strong fundamentals could only

qualify for an IPO, but Internet boom changed all this. Firms no longer needed strong financial

and a solid history to go public. Instead, IPO’s were done by smaller start ups seeking to expand

their business. There is nothing to worry for expansion of IPO but most of these firms had never

made a profit and didn’t plan on being profitable any time. In cases like this companies might

be suspected of doing an IPO just to make the founders rich. The IPO then becomes the end of

the road rather than beginning.

How can this happen? Remember an IPO is just selling stock, it is all about the sales

job. If you can convince people to buy stock in your company, you can raise a lot of money .

In our opinion IPO’s came just to collect money are extremely risky and should be avoided.

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IPO BASICS: HOW TO GET INTO AN IPO?

1) UNDERWRITING PROCESS: Getting a piece of a hot IPO is very difficult, if not

impossible. To understand why we need to know how an IPO is done , a process known as

underwriting.

When a company wants to go public , the first thing it does is hire an investment bank.

A company could theoretically, sell its shares on its own but realistically, an investment bank

is required. Underwriting is the process of raising money by either debt or equity. Underwriter

acts as a middlemen between companies and the investing public.

The company and the investment bank will first meet to negotiate the deal. Items

usually discussed includes the amount of money company will raise , the types of securities to

be issued and all details in underwriting agreement. The deal can be structured in a variety of

ways. For example, in a “firm commitment” deal the underwriter guarantees that a certain

amount will be raised by buying the entire offer and then reselling to the public. In a “best

effort” deal the underwriter sells the securities , but doesn’t guarantee the amount raised.

Once all sides agree to deal , the investment bank puts together a registration statement

to be filed with SEC, governing bodies. This document contains information about offering as

well as company information such as financial statements , management background , legal

problems and insider holdings. The SEC then requires a “cooling off period” in which they

investigate and make sure all material information has been disclosed. Once SEC approves the

offering, a date is set when the stock will be offered to the public.

During the cooling off the period the underwriters put together what is known as red

herring. This is an initial prospectus containing all information about the company except for

the offer price and effective date , which aren’t known at the time with the red herring in hand

, the underwriter and the company attempt to hype and build up interest for the issue. They go

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on a road show also known as “the dog and pony show” where the big institutional investors

are courted .

As an effective date approach the underwriter and company sit down and decide on the

price. This is not an easy decision, it depends on the company , the success of the road show

and most importantly current market conditions. Of course it is in both parties interest to get as

much as possible. Finally the securities are sold on the stock market and money is collected

from investors.

2) INDIVIDUAL INVESTOR: As you can see, the road to an IPO is an long and complicated

one. You may have noticed that individual investors are not involved until the very end,

because small investors are not the target market. They do not have more cash and therefore

hold little interest for the underwriters. If the underwriters think that an IPO will be successful

they will usually pad the pockets of their favorite institutional client with shares at IPO price.

The only way for individual investor to get shares is to have an account with one of the

investment banks that is part of the underwriting syndicate. But an individual cannot expect to

open an account with $2200 and be showered with an allocation. He has to be frequently trading

client with a large account to get into an hot IPO.

POINTS TO BE CONSIDERED TO GET INTO AN IPO:

1) NO HISTORY: It’s hard enough to analyze the stock of an established company. An IPO

company is even trickier to analyze since there won’t be a lot of historical information. The

main source of data is Red herring prospectus, so make sure you examine this document

carefully. Look for the usual information but also pay special attention to the management team

and how they plan to use the funds generated from an IPO.

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2) LOCK UP PERIOD : If you look at the charts following many IPO’s, you will notice that

after few months the stock takes a sleep downturn, this is often because of lockup period.

When a company goes public, the underwriters make company officials and employees sign a

lock up agreement. Lock up agreements are legally binding contracts between underwriters and

insiders of the company, prohibiting them from selling any shares of stock for a specified period

of time. The period can be anything from 3 to 24 months. 90 days is minimum period stated

under rule, but lockup specified by the underwriters can last much stronger. The problem is

when lockups expire all the insiders are permitted to sell their stock. The result is a rush of

people trying to sell their stock to realize their profit. This excess supply can put severe

downward pressure on the stock price.

3) FLIPPING: Flipping is reselling a hot IPO stock in the first few days to earn a good profit.

This is not easy to do and you will be strongly discouraged by your broker. The reason behind

this is that, the companies want long term investors who hold their stock, not traders. There are

no laws that prevent flipping, but your broker may black list you from future offering or just

smile less when you shake hands.

4) Of course, institutional investors flip stocks all the time and make big money. The double

standard exists and there is nothing we can do about it as they have buying power. Because of

flipping , it is a good rule not to buy shares of an IPO if you don’t get in on the initial offering.

Many IPO’s that have big gains on the first day will come back to earth as the institutions take

their profits.

5) AVOID THE HYPE : Its important to understand that underwriters are salesmen . The

whole underwriting process is intentionally hyped up to get as much attention as possible. Since

IPO’s only happen once for each company, they are often presented as “once in a lifetime”

opportunities. Of course some IPO soar high and keep soaring. But many end up selling below

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their offering prices within the year. Don’t buy a stock because it is an IPO do it because it is

a good investment.

BOOK BUILDING PROCESS:

The abolition of the capital issues control act, 2287 has brought a new era in the primary market

in India. The control over the pricing of the issues, designing and tenure of capital issues were

abolished. The issuers at present are free to make the price of issue. The main drawback of

pricing was the process of pricing of issues. The issue price was determined around 60 to 70

days before the opening of the issue and the issuer had no clear idea abut the market perception

of the price determined. The traditional fixed price method of tapping individual investor from

two defects

1) Delay in initial public process.

2) Under pricing/over pricing of issues.

In fixed price method, public offers do not have any flexibility in terms of prices as well as

number of issues. From experience it can be stated that a majority of the public issues come

through fixed price method are either under priced or over priced. Retail investors are unable

to distinguish good issues from bad one. That is why book building mechanism, a new

(product) process of price discovery has been introduced to overcome this limitation and

determine issue price effectively.

SEBI guidelines defines book building as a process undertaken by which a demand for the

securities proposed to be issued by a corporate body is elicited and build up and the price for

such securities is assessed for the determination of the quantum of such securities to be issued

by means of a notice, circular, advertisement, document or information memoranda or offer

document.

Book building is basically a capital issuance process used in IPO which aids price and demand

discovery. It is a process used for marketing a public offer of equity shares of a company. It is

19
a mechanism where during a period fro which a book for IPO is open, bids are collected from

the investors at various prices, which are above or equal to the floor price. The process aims at

tapping both wholesale and retail investors. The offer/issue price is then determined after the

bid closing date based on certain evaluation criteria.

FEATURES OF BOOK BUILDING PROCESS:

!) Public offers in fixed price method involves a pre issue cost of 2-3 percent and carry the risk

of failure if it does not receive 90 percent of total subscription. In Book building such cost and

risk can be avoided because Issuer Company can withdraw the market if demand for security

does not exist.

2) Institutional investor like to participate largely in book built transactions as in this process

the time taken for completion of entire process is less than the fixed price issues

3) Here the price is determined on the basis of the demand received or at the price above or

equal to the floor price whereas in fixed price option the price of issues is fixed first and then

securities are offered to the investors.

4) Book is built by book running lead manager to know the everyday demand whereas in case

of fixed price of public issues, the demand is known at the close of the issue.

5) Book should remain open for minimum of 5 days.

BOOK BUILDING PROCESS IN INDIA:

The main parties who are directly associated with book building process are issuer company.

BRLM (Book Running Lead Managers) and the syndicate members. The BRLM (merchant

banker) and the syndicate members who are the intermediaries are both eligible to act as

underwriters. The steps involved in book building process are as under:

1) The issuer company proposing an IPO appoints a lead merchant banker as BRLM.

20
2) Initially the issuer company consults with the book running lead manager in drawing up a

draft prospectus which does not mention the price of the issues but includes other details about

the size of the issues, past history of a company and a price band. The securities available to

the public are separately identified as net offer to the public.

3) The draft prospectus is filed with SEBI which gives it a legal standing.

4) A definite period is fixed as a bid period and BRLM conducts awareness campaign like

advertisements, road shows etc.

5) The BRLM appoints a syndicate member, a SEBI register intermediary who underwrite the

issues to the extent of net offer to the public

6) The BRLM is entitle to remuneration for conducting the book building process

7) The copy of draft prospectus may be circulated by BRLM to the institutional investors as

well as to the syndicate members

8) The syndicate members create demand and ask each investor for the number of shares and

offer price

9) The BRLM receives the feedback about the investors bid through syndicate members

10) The prospective investors may revise their bids at any time during the bi d period

11) The BRLM on receipt of feedback from the syndicate embers about the bid price and

quantity of share apply has to build up an order book showing the demand for the shares of the

company at various prices. The syndicate members must also maintain a record book for orders

received from institutional investors for subscribing to the issue of private portion.

12) On receipt of above information, the BRLM and the issuer company decides the issue

price. This is known as market clearing price.

13) The BRLM then closes the book in consultation with the issuer company and determine the

issue size of placement portion and public offer portion.

21
14) Once the final price is determined the allocation of securities should be made by BRLM

based on prior commitment, investors quality, price aggression, earliness of bids etc. the bid of

an institutional bidder, even if he has paid full amount may be rejected without being assigned

any reason as the book building portion of institutional investors is left entirely at the discretion

of issuer company and the BRLM.

15) The final prospectus if filed with the registrar of companies within 2 days of determination

of issue price and receipts of acknowledgement card from SEBI.

16) Two different accounts for collection of application money, one for the private placement

portion and the other for the public subscription should be opened by Issuer Company.

17) The placement portion is closed a day before the opening of public issue through faxed

price method. The BRLM is required to have the application forms along with application

money from the institutional buyers and underwriters to the private placement portion.

18) The allotment for the private placement portion shall be made on the second day from the

closure of the issue and the private placement portion is ready to be listed.

19) The allotment an listing of issues under the public portion i.e. fixed price portion must be

as per the existing statuary requirements

20) Finally the SEBI has the right to inspect such records and books which are maintained by

BRLM and the intermediaries involved in the Book building process.

DIIFFERENCE BETWEEN SHARE OFFERED THROUGH BOOK BUILDING AND

THROUGH NORMAL PUBLIC ISSUE:

1) In normal public issue method the price at which the securities are offered/allotted is known

in advance to the investor whereas the price at which these securities will be

22
offered/allotted is not known in advance to the investor in book building process. Only

indicative price range is known.

2) In normal public issue method demand for the securities offered is known only after the

closure of the issue whereas in book building method demand for the securities offered can be

known everyday as the book is built

3) In normal issue method payment is made at the time of subscription wherein refund is given

after allocation whereas in book building method payment is made only after allocation.

4) In book building securities are offered a t prices above or equal to the floor prices, whereas

securities are offered at a fixed price in case of normal public issues.

OFFER TO THE PUBLIC THROUGH BOOK BUILDING PROCESS

The oxford dictionary of business jumps from “bonus shares to book keeping” and then

on “book of primary entry” without devoting an entry for book building. Book building is the

process by which an underwriter attempts to offer an IPO based on demand form institutional

investors.

An underwriter “builds a book” by accepting orders from fund managers, indicating the

number of shares they desire and the price they are willing to pay. Book maker is not the same

as the book builder. The former takes bets and pays out money to the people who win. The IPO

can be made through fixed price method, book building method or a combination of both. In

case the issuer choose to issue securities through book building route then as per SEBI

guidelines, an issuer company can issue securities in the following manner.

A) 220 percent of the net offer to the public through book building route

B) 75 percent of the net offer to the public through the book building process and 25 percent

through fixed price portion.

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C) Under 90 percent scheme this percentages will be 90 and 22 respectively.

A) 220 % THROUGH BOOK BUILDING PROCESS : In the 220 percent of the net offer

to the public, entire issue is made through book building process. In case of 220 percent book

building process, the bidding centers should be at all the places where recognized stock

exchanges are situated.

B) 75 % THRUOGH BOOK BUILDING PROCESS : The option of 75 percent book

building is available through the book building process are indicated as placement portion

category and securities available to public are identified as net offer to the public. In this option,

underwriting is mandatory to the extent of net offer to the public. The issue price for placement

portion and offers to public are required to be same.

C) 90 % THROUGH BOOK BUILDING PROCESS: This option is not available in India.

TYPES OF INVESTORS

There are three kinds of investors in book building issue. The retail individual investor

(RII), the non-institutional investor (NII) and the qualified institutional buyers (QIB). RII is

an investor who applies for stocks for a value of not more than rupees 220000. Any bid

exceeding this amount is considered in the NII category. NIIs are commonly referred to as high

net worth individuals. On the other hand QIBs are institutional investors who posses the

expertise and the financial muscle to invest in securities markets.

Mutual funds, financial institutions, scheduled commercial banks, insurance

companies, provident funds, state industrial development corporations fall under the definition

of being a QIB. Each of these is allotted a certain percentage of total issue. The total allotment

of RII category has to be at least 35 percent of the total issue. RII also have an option of

applying at cut-off price. This option is not available to other classes of investors. NIIs are to

be given at least 22 percent of the total issue and QIBs are to be issued not more than 50 percent

of the total issue

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REVERSE BOOK BUILDING PROCESS:

The reverse book building is a mechanism provided for capturing the sell orders online basis

from the shareholders through respective BRLMs which can be used by the companies

intending to delist its shares through buy back process. In reverse book building scenario, the

acquirer/company offers to buy back shares from the shareholders. The reverse book building

is basically a process used for efficient price discovery. It is a mechanism where during the

period for which the reverse book building is open offers are collected from the shareholders

at various prices, which are above or equal to the floor price. The buy back price is determined

after the offer closing date.

Business process for delisting through book building is as follows

1) The acquirer shall appoint designated BRLM for accepting offers form the shareholders

2) The company/acquirer intending to delist its shares through book building process is

identified by way of a symbol assigned to it by BRLM.

3) Orders for the offer shall be placed by the shareholders only through the designated

trading members, duly approved by the exchange.

4) The designated trading members shall ensure that the security/shareholder deposit the

securities offered with the trading members prior to the placement of an order.

5) The offer shall be open for N number of days

6) The BRLM shall intimate the final acceptance price and provide the valid accepted order

file to the National Securities Clearing Corporation Limited (wholly owned securities of BSE

carrying out clearing and responsible for settlement operation.).

SEBI guidelines shall be applicable to delisting of securities of companies and specifically

apply to:

1) Voluntary delisting being sought by the promoters of a company.

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2) Any acquisition of shares of the company (either by a promoter or by any other person)or

scheme or arrangement, by whatever name referred to, coBSEquent to which the public

shareholding falls below the minimum limit specified in the listing conditions or listing

agreement that may result in delisting of securities.

3) Promoters of the company who voluntarily seek to delist their securities from all or some

of the stock exchanges.

4) Case where a person in control of the management is seeking to consolidate his holding

in a company in a manner which would result in the public share holdings or in the listing

agreement that may have affect of company being delisted.

5) The companies which may be compulsorily delisted by stock exchanges

Advantages of Reverse book building process

1) It provides a fair,efficient and transparent method for collecting offer using latest

electronic trading systems.

2) The BSE system offers a nation wide bidding facility in securities.

3) Cost involved in issue are far less than those in a normal IPO.

RED HERRING PROPECTUS:

A preliminary registration statement that must be filed with the SEC describing a new

issue of stock and the prospects of the issuing company.

"Red Herring Prospectus" is a prospectus which does not have details of either price or

number of shares being offered or the amount of issue. This means that in case the price is not

disclosed, the number of shares and the upper and lower price bands are disclosed. On the other

hand, an issuer can state the issue size and the number of shares are determined later. An RHP

for and FPO can be filed with the RoC without the price band and the issuer, in such a case

26
will notify the floor price or a price band by way of an advertisement one day prior to the

opening of the issue. In the case of book-built issues, it is a process of price discovery and the

price cannot be determined until the bidding process is completed. Hence, such details are not

shown in the Red Herring prospectus filed with the RoC in terms of the provisions of the

Companies Act.

Only on completion of the bidding process, the details of the final price are included in the

offer document. The offer document filed thereafter with ROC is called a prospectus.

“Abridged Prospectus” means contains all the salient features of a prospectus. It accompanies

the application form of public issues.

GREEN SHOE OPTION:

In most of the case it is experienced that IPO through book building method in India turns out

to be over priced or under priced after their listing and ultimately the small investor becomes

the net loser. If the prices in open market fall below the issue price, small investors may start

selling their securities to minimize losses. Therefore there was a vital need of a market stabilizer

to smoothen swing in the open market price of a newly listed shares after an IPO. Market

stabilization is the mechanism by which stabilizing agent acts on behalf of the issuer company,

buys a newly issued securities for the limited purpose of preventing a decline in the new

securities in open market price in order to facilitate its distribution to the public. It can prevent

the IPO from huge price fluctuation and save investors from potential loss. Such mechanism is

known as Green Shoe Option. Green Shoe Option can rectify the demand and supply

imbalances and can stabilize the price of the stock. It owes its origin to the green shoe option

company, which used this option for the first time in the world.

SEBI recognized GSO system of initial public 2010 August. According to SEBI

Guidelines “A company desirous of availing GSO shall pass the resolution in the general body

27
meeting authorizing the public issue, seek authorization, also for possibility of allotment of

further shares to the stabilizing agent. The company shall appoint one of the Lead book runners

among the issue management team as stabilizing agent, will be responsible for price

stabilization process if required.

The stabilizing agent shall enter into an agreement with the promoters who will lend

their share, specifying the maximum number of shares that may be borrowed from the

promoters, which shall not be in excess of fifteen percent of the total issue size. The

stabilization mechanization shall be available for the period disclosed by the company in the

prospectus, which shall not exceed 30 days from the date when trading permission was given

by the exchanges.

Ideally, with the intervention of the stabilizing agent the share price should not fall

below the issue price for a period of 30 days from the listing date. Due to this option, the

investor has a time period of 30 days up to which he is safe and his chances of incurring the

losses are minimum.

A GSO is a clause contained in the underwriting agreement of IPO. The GSO is also

referred to as an over allotment provision, allows the underwriting syndicate to buy up an

additional 22 % of the shares at the offering price if public demand for the shares exceeds

expectations and the stock trades above its offering price.

The GSO provides extra incentive for the underwriters of a new stock offering. In

addition this investment banks, brokerages and other financing parties also often exercise the

GSO the cover some of the short position. They may have create an effort to maintain a stable

market after a new stock begins to trade as well as to meet after market demand.

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AN INTERESTING FACT:

The Green shoe company was the first issuer to allow the over allotment option to its

underwriters, hence the name. The provision that has become standard in firm commitment

underwriting is the over allotment option or green shoe option. Where the company and other

sellers of securities grant and option to the underwriters to purchase additional shares (around

22 % in total offerings) on the same term as the original shares offer to the underwriters. The

GSO allows the underwriters to exercise significant market clout in stabilizing activities during

a 30 day period immediately following a public offering. The over allotment gives the

underwriters buying power to cover their short position in order to stem a falling stock price,

without the risk of having to buy stock at higher prices to cover their short position is the stock

price increases.

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 CHAPTER-III

INDUSTRY PROFILE

&

COMPANY PROFILE
A bank is a financial institution that accepts deposits and channels those deposits into lending

activities. Banks primarily provide financial services to customers while enriching investors.

Government restrictions on financial activities by banks vary over time and location. Banks are

important players in financial markets and offer services such as investment funds and loans.

In some countries such as Germany, banks have historically owned major stakes in industrial

corporations while in other countries such as the United States banks are prohibited from

owning non-financial companies. In Japan, banks are usually the nexus of a cross-share holding

entity known as the keiretsu. In France, bancassurance is prevalent, as most banks offer

insurance services (and now real estate services) to their clients.

Introduction

India’s banking sector is constantly growing. Since the turn of the century, there has been a

noticeable upsurge in transactions through ATMs, and also internet and mobile banking.

Following the passing of the Banking Laws (Amendment) Bill by the Indian Parliament in

2015, the landscape of the banking industry began to change. The bill allows the Reserve Bank

of India (RBI) to make final guidelines on issuing new liceBSEs, which could lead to a bigger

number of banks in the country. Some banks have already received licences from the

government, and the RBI's new norms will provide incentives to banks to spot bad loans and

take requisite action to keep rogue borrowers in check.

Over the next decade, the banking sector is projected to create up to two million new jobs,

driven by the efforts of the RBI and the Government of India to integrate financial services into

rural areas. Also, the traditional way of operations will slowly give way to modern technology.

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Market size

Total banking assets in India touched US$ 1.8 trillion in FY15 and are anticipated to cross US$

28.5 trillion in FY25.

Bank deposits have grown at a compound annual growth rate (CAGR) of 22.2 per cent over

FY06–15. Total deposits in FY15 were US$ 1,274.3 billion.

Total banking sector credit is anticipated to grow at a CAGR of 22.1 per cent (in terms of INR)

to reach US$ 2.4 trillion by 2022.

In FY20, private sector lenders witnessed discernable growth in credit cards and personal loan

businesses. HDFC Bank witnessed 201.6 per cent growth in personal loan disbursement in

FY20, as per a report by Emkay Global Financial Services. HDFCBank's personal loan

business also rose 49.8 per cent and its credit card business expanded by 31.1 per cent.

Investments

Bengaluru-based software services exporter Mphasis Ltd has bagged a five-year contract from

Punjab National Bank (PNB) to set up the bank’s contact centres in Mangalore and Noida (UP).

Mphasis will provide support for all banking products and services, including deposits

operations, lending services, banking processes, internet banking, and account and card-related

services. The company will also offer services in multiple languages.

Microfinance companies have committed to setting up at least 30 million bank accounts within

a year through tie-ups with banks, as part of the Indian government’s financial inclusion plan.

The commitment was made at a meeting of representatives of 25 large microfinance companies

and banks and government representatives, which included financial services secretary Mr GS

Sandhu.

Export-Import Bank of India (Exim Bank) will increase its focus on supporting project exports

from India to South Asia, Africa and Latin America, as per Mr Yaduvendra Mathur, Chairman

and MD, Exim Bank. The bank has moved up the value chain by supporting project exports so

31
that India earns foreign exchange. In 2015–15, Exim Bank lent support to 85 project export

contracts worth Rs 24,255 crore (US$ 3.96 billion) secured by 47 companies in 23 countries.

Government Initiatives

The RBI has given banks greater flexibility to refinance current long-gestation project loans

worth Rs 1,000 crore (US$ 203.42 million) and more, and has allowed partial buyout of such

loans by other financial institutions as standard practice. The earlier stipulation was that buyers

should purchase at least 50 per cent of the loan from the existing banks. Now, they get as low

as 25 per cent of the loan value and the loan will still be treated as ‘standard’.

The RBI has also relaxed norms for mortgage guarantee companies (MGC) enabling these

firms to use contingency reserves to cover for the losses suffered by the mortgage guarantee

holders, without the approval of the apex bank. However, such a measure can only be initiated

if there is no single option left to recoup the losses.

SBI is planning to launch a contact-less or tap-and-go card facility to make payments in India.

Contact-less payment is a technology that has been adopted in several countries, including

Australia, Canada and the UK, where customers can simply tap or wave their card over a reader

at a point-of-sale terminal, which reads the card and allows transactions.

SBI and its five associate banks also plan to empower account holders at the bottom of the

social pyramid with a customer call facility. The proposed facility will help customers get an

update on available balance, last five transactions and cheque book request on their mobile

phones.

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 Road Ahead

India is yet to tap into the potential of mobile banking and digital financial services. Forty- seven

per cent of the populace have bank accounts, of which half lie dormant due to reliance on cash

transactions, as per a report. Still, the industry holds a lot of promise.

India's banking sector could become the fifth largest banking sector in the world by 2022 and

the third largest by 2025. These days, Indian banks are turning their focus to servicing clients

and enhancing their technology infrastructure, which can help improve customer experience as

well as give banks a competitive edge.

Exchange Rate Used: INR 1 = US$ 0.0203 as on October 28, 2022

The level of government regulation of the banking industry varies widely, with countries such

as Iceland, having relatively light regulation of the banking sector, and countries such as China

having a wide variety of regulations but no systematic process that can be followed typical of

a communist system.

The oldest bank still in existence is Monte dei Paschi di Siena, headquartered in Siena, Italy,

which has been operating continuously since 2072.

History

Origin of the word

The name bank derives from the Italian word banco "desk/bench", used during the Renaissance

by Jewish Florentine bankers, who used to make their transactions above a desk covered by a

green tablecloth. However, there are traces of banking activity even in ancient times, which

indicates that the word 'bank' might not necessarily come from the word 'banco'.

33
In fact, the word traces its origins back to the Ancient Roman Empire, where moneylenders

would set up their stalls in the middle of enclosed courtyards called macella on a long bench

called a bancu, from which the words banco and bank are derived. As a moneychanger, the

merchant at the bancu did not so much invest money as merely convert the foreign currency

into the only legal tender in Rome—that of the Imperial Mint.

The earliest evidence of money-changing activity is depicted on a silver drachm coin from

ancient Hellenic colony Trapezus on the Black Sea, modern Trabzon, c. 350–325 BC, presented

in the British Museum in London. The coin shows a banker's table (trapeza) laden with coins,

a pun on the name of the city.

In fact, even today in Modern Greek the word Trapeza (Τράπεζα) means both a table and a

bank.

Traditional banking activities

Banks act as payment agents by conducting checking or current accounts for customers, paying

cheques drawn by customers on the bank, and collecting cheques deposited to customers'

current accounts. Banks also enable customer payments via other payment methods such as

telegraphic transfer, EFTPOS, and ATM.

Banks borrow money by accepting funds deposited on current accounts, by accepting term

deposits, and by issuing debt securities such as banknotes and bonds. Banks lend money by

making advances to customers on current accounts, by making installment loans, and by

investing in marketable debt securities and other forms of money lending.

Banks provide almost all payment services, and a bank account is considered indispensable by

most businesses, individuals and governments. Non-banks that provide payment services such

34
as remittance companies are not normally considered an adequate substitute for having a bank

account.

Banks borrow most funds from households and non-financial businesses, and lend most funds

to households and non-financial businesses, but non-bank lenders provide a significant and in

many cases adequate substitute for bank loans, and money market funds, cash management

trusts and other non-bank financial institutions in many cases provide an adequate substitute to

banks for lending savings to.

Entry regulation

Currently in most jurisdictions commercial banks are regulated by government entities and

require a special bank licence to operate.

Usually the definition of the business of banking for the purposes of regulation is extended to

include acceptance of deposits, even if they are not repayable to the customer's order—although

money lending, by itself, is generally not included in the definition.

Unlike most other regulated industries, the regulator is typically also a participant in the market,

i.e. a government-owned (central) bank. Central banks also typically have a monopoly on the

business of issuing banknotes. However, in some countries this is not the case. In the UK, for

example, the Financial Services Authority licences banks, and some commercial banks (such

as the Bank of Scotland) issue their own banknotes in addition to those issued by the Bank of

England, the UK government's central bank.

Accounting for bank accounts

Bank statements are accounting records produced by banks under the various accounting

standards of the world. Under GAAP and IFRS there are two kinds of accounts: debit and

35
credit. Credit accounts are Revenue, Equity and Liabilities. Debit Accounts are Assets and

ExpeBSEs. This means you credit a credit account to increase its balance, and you debit a debit

account to decrease its balance.

This also means you debit your savings account every time you deposit money into it (and the

account is normally in deficit), while you credit your credit card account every time you spend

money from it (and the account is normally in credit).

However, if you read your bank statement, it will say the opposite—that you credit your

account when you deposit money, and you debit it when you withdraw funds. If you have cash

in your account, you have a positive (or credit) balance; if you are overdrawn, you have a

negative (or deficit) balance.

The reason for this is that the bank, and not you, has produced the bank statement. Your savings

might be your assets, but the bank's liability, so they are credit accounts (which should have a

positive balance). Conversely, your loans are your liabilities but the bank's assets, so they are

debit accounts (which should also have a positive balance).

Where bank transactions, balances, credits and debits are discussed below, they are done so

from the viewpoint of the account holder—which is traditionally what most people are used to

seeing.

Economic functions

1. issue of money, in the form of banknotes and current accounts subject to cheque or

payment at the customer's order. These claims on banks can act as money because they

are negotiable and/or repayable on demand, and hence valued at par. They are

36
 effectively transferable by mere delivery, in the case of banknotes, or by drawing a

cheque that the payee may bank or cash.

2. netting and settlement of payments – banks act as both collection and paying agents for

customers, participating in interbank clearing and settlement systems to collect, present,

be presented with, and pay payment instruments. This enables banks to economise on

reserves held for settlement of payments, since inward and outward payments offset

each other. It also enables the offsetting of payment flows between geographical areas,

reducing the cost of settlement between them.

3. credit intermediation – banks borrow and lend back-to-back on their own account as

middle men.

4. credit quality improvement – banks lend money to ordinary commercial and personal

borrowers (ordinary credit quality), but are high quality borrowers. The improvement

comes from diversification of the bank's assets and capital which provides a buffer to

absorb losses without defaulting on its obligations. However, banknotes and deposits

are generally uBSEcured; if the bank gets into difficulty and pledges assets as security,

to raise the funding it needs to continue to operate, this puts the note holders and

depositors in an economically subordinated position.

5. maturity transformation – banks borrow more on demand debt and short term debt, but

provide more long term loans. In other words, they borrow short and lend long. With a

stronger credit quality than most other borrowers, banks can do this by aggregating

issues (e.g. accepting deposits and issuing banknotes) and redemptions (e.g.

withdrawals and redemptions of banknotes), maintaining reserves of cash, investing in

marketable securities that can be readily converted to cash if needed, and raising

replacement funding as needed from various sources (e.g. wholesale cash markets and

securities markets).

37
Law of banking

Banking law is based on a contractual analysis of the relationship between the bank (defined

above) and the customer—defined as any entity for which the bank agrees to conduct an

account.

The law implies rights and obligations into this relationship as follows:

1. The bank account balance is the financial position between the bank and the customer:

when the account is in credit, the bank owes the balance to the customer; when the

account is overdrawn, the customer owes the balance to the bank.

2. The bank agrees to pay the customer's cheques up to the amount standing to the credit

of the customer's account, plus any agreed overdraft limit.

3. The bank may not pay from the customer's account without a mandate from the

customer, e.g. a cheque drawn by the customer.

4. The bank agrees to promptly collect the cheques deposited to the customer's account as

the customer's agent, and to credit the proceeds to the customer's account.

5. The bank has a right to combine the customer's accounts, since each account is just an

aspect of the same credit relationship.

6. The bank has a lien on cheques deposited to the customer's account, to the extent that

the customer is indebted to the bank.

7. The bank must not disclose details of transactions through the customer's account—

unless the customer coBSEnts, there is a public duty to disclose, the bank's interests

require it, or the law demands it.

8. The bank must not close a customer's account without reasonable notice, since cheques

are outstanding in the ordinary course of business for several days.

38
These implied contractual terms may be modified by express agreement between the customer

and the bank. The statutes and regulations in force within a particular jurisdiction may also

modify the above terms and/or create new rights, obligations or limitations relevant to the bank-

customer relationship.

Some types of financial institution, such as building societies and credit unions, may be partly

or wholly exempt from bank licence requirements, and therefore regulated under separate rules.

The requirements for the issue of a bank licence vary between jurisdictions but typically

include:

1. Minimum capital

2. Minimum capital ratio

3. 'Fit and Proper' requirements for the bank's controllers, owners, directors, and/or senior

officers

4. Approval of the bank's business plan as being sufficiently prudent and plausible.

Types of banks

Banks' activities can be divided into retail banking, dealing directly with individuals and small

businesses; business banking, providing services to mid-market business; corporate banking,

directed at large business entities; private banking, providing wealth management services to

high net worth individuals and families; and investment banking, relating to activities on the

financial markets. Most banks are profit-making, private enterprises. However, some are

owned by government, or are non-profit organizations.

Central banks are normally government-owned and charged with quasi-regulatory

responsibilities, such as supervising commercial banks, or controlling the cash interest rate.

39
They generally provide liquidity to the banking system and act as the lender of last resort in

event of a crisis.

Types of retail banks

 Commercial bank: the term used for a normal bank to distinguish it from an investment

bank. After the Great Depression, the U.S. Congress required that banks only engage

in banking activities, whereas investment banks were limited to capital market

activities. Since the two no longer have to be under separate ownership, some use the

term "commercial bank" to refer to a bank or a division of a bank that mostly deals with

deposits and loans from corporations or large businesses.

 Community Banks: locally operated financial institutions that empower employees to

make local decisions to serve their customers and the partners.

 Community development banks: regulated banks that provide financial services and

credit to under-served markets or populations.

 Postal savings banks: savings banks associated with national postal systems.

 Private banks: banks that manage the assets of high net worth individuals.

 Offshore banks: banks located in jurisdictions with low taxation and regulation. Many

offshore banks are essentially private banks.

 Savings bank: in Europe, savings banks take their roots in the 22th or sometimes even

22th century. Their original objective was to provide easily accessible savings products

to all strata of the population. In some countries, savings banks were created on public

initiative; in others, socially committed individuals created foundations to put in place

the necessary infrastructure. Nowadays, European savings banks have kept their focus

on retail banking: payments, savings products, credits and insurances for individuals or

small and medium-sized enterprises. Apart from this retail focus, they also differ from

40
 commercial banks by their broadly decentralised distribution network, providing local

and regional outreach—and by their socially responsible approach to business and

society.

 Building societies and Landesbanks: institutions that conduct retail banking.

 Ethical banks: banks that prioritize the transparency of all operations and make only

what they consider to be socially-responsible investments.

 Islamic banks: Banks that transact according to Islamic principles.

Types of investment banks

 Investment banks "underwrite" (guarantee the sale of) stock and bond issues, trade for

their own accounts, make markets, and advise corporations on capital market activities

such as mergers and acquisitions.

 Merchant banks were traditionally banks which engaged in trade finance. The modern

definition, however, refers to banks which provide capital to firms in the form of shares

rather than loans. Unlike venture capital firms, they tend not to invest in new

companies.

Both combined

 Universal banks, more commonly known as financial services companies, engage in

several of these activities. These big banks are very diversified groups that, among other

services, also distribute insurance— hence the term bancassurance, a portmanteau word

combining "banque or bank" and "assurance", signifying that both banking and

insurance are provided by the same corporate entity.

Other types of banks

41
 Islamic banks adhere to the concepts of Islamic law. This form of banking revolves

around several well-established principles based on Islamic canons. All banking

activities must avoid interest, a concept that is forbidden in Islam. Instead, the bank

earns profit (markup) and fees on the financing facilities that it extends to customers.

42
COMPANY PROFILE
HDFC Bank is India's largest private sector bank with total assets of Rs. 5,946.42 billion (US$

99 billion) at March 31, 2022 and profit after tax Rs. 98.12 billion (US$ 1,637 million) for the

year ended March 31, 2022.HDFC Bank currently has a network of 3,839 Branches and 13,943

ATM's across India.

History

2015

The Industrial Credit and Investment Corporation of India Limited (HDFC) incorporated at the

initiative of the World Bank, the Government of India and representatives of Indian industry,

with the objective of creating a development financial institution for providing medium-term

and long-term project financing to Indian businesses. Mr.A.Ramaswami Mudaliar elected as

the first Chairman of HDFC Limited.

HDFC emerges as the major source of foreign currency loans to Indian industry. Besides

funding from the World Bank and other multi-lateral agencies, HDFC was also among the first

Indian companies to raise funds from international markets.

HDFC Bank was originally promoted in 2294 by HDFC Limited, an Indian financial

institution, and was its wholly-owned subsidiary. HDFC's shareholding in HDFC Bank was

reduced to 46% through a public offering of shares in India in fiscal 2298, an equity offering

in the form of ADRs listed on the NYSE in fiscal 2000, HDFC Bank's acquisition of Bank of

Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by

HDFC to institutional investors in fiscal 2001 and fiscal 2002. HDFC was formed in 2255 at

the initiative of the World Bank, the Government of India and representatives of Indian

43
industry. The principal objective was to create a development financial institution for providing

medium-term and long-term project financing to Indian businesses.

In the 2021, HDFC transformed its business from a development financial institution offering

only project finance to a diversified financial services group offering a wide variety of products

and services, both directly and through a number of subsidiaries and affiliates like HDFC Bank.

In 2299, HDFC become the first Indian company and the first bank or financial institution from

non-Japan Asia to be listed on the NYSE.

After consideration of various corporate structuring alternatives in the context of the emerging

competitive scenario in the Indian banking industry, and the move towards universal banking,

the managements of HDFC and HDFC Bank formed the view that the merger of HDFC with

HDFC Bank would be the optimal strategic alternative for both entities, and would create the

optimal legal structure for the HDFC group's universal banking strategy. The merger would

enhance value for HDFC shareholders through the merged entity's access to low-cost deposits,

greater opportunities for earning fee-based income and the ability to participate in the payments

system and provide transaction-banking services. The merger would enhance value for HDFC

Bank shareholders through a large capital base and scale of operations, seamless access to

HDFC's strong corporate relationships built up over five decades, entry into new business

segments, higher market share in various business segments, particularly fee-based services,

and access to the vast talent pool of HDFC and its subsidiaries.

In October 2001, the Boards of Directors of HDFC and HDFC Bank approved the merger of

HDFC and two of its wholly-owned retail finance subsidiaries, HDFC Personal Financial

Services Limited and HDFC Capital Services Limited, with HDFC Bank. The merger was

44
approved by shareholders of HDFC and HDFC Bank in January 2002, by the High Court of

Gujarat at Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai and the

Reserve Bank of India in April 2002. CoBSEquent to the merger, the HDFC group's financing

and banking operations, both wholesale and retail, have been integrated in a single entity.

HDFC Group Companies

HDFC Group HDFC Prudential AMC & Trust

http://www.HDFCgroupcompanies.com http://www.HDFCpruamc.com

HDFC Prudential Life Insurance Company HDFC Venture

http://www.HDFCprulife.com/public/defa http://www.HDFCventure.com

ult.htm

HDFC Direct

HDFC Securities http://www.HDFCdirect.com

http://www.HDFCsecurities.com

HDFC Foundation

HDFC Lombard General Insurance http://www.HDFCfoundation.org

Company

http://www.HDFClombard.com Disha Financial CouBSElling

http://www.HDFCfoundation.org

45
 Board of Directors

Mr. K. V. Kamath, Chairman ..............................................

.............................................. Mr. Alok Tandon

Mr. Dileep Choksi Ms. Chanda Kochhar,

.............................................. Managing Director & CEO

Mr. Homi R. Khusrokhan ...........................................

.............................................. Mr. N. S. Kannan,

Mr. M.S. Ramachandran Executive Director

.............................................. ...........................................

Dr. Tushaar Shah Mr. K. Ramkumar,

.............................................. Executive Director

Mr. V. K. Sharma ...........................................

.............................................. Mr. Rajiv Sabharwal,

Mr. V. Sridar Executive Director

Awards - 2022

HDFC Bank

 Ms. Chanda Kochhar received an honorary Doctor of Laws from Carleton University,

Canada. The university conferred this award on Ms. Kochhar in recognition of her

pioneering work in the financial sector, effective leadership in a time of economic crisis

and support for engaged business practices.

 Ms Chanda Kochhar featured in The Telegraph (UK) list of '13 most important women

in finance'.

 HDFC Bank has been recognised as one of the 'Top Companies for Leaders' in India in

a study conducted by Aon Hewitt.

46
 IDRBT has given awards to HDFC Bank in the categories of 'Social Media and Mobile

Banking' and' Business Intelligence Initiatives'.

 HDFC Bank won the award for the Best Bank - Global Business Development (Private

Sector) in the Dun & Bradstreet - Polaris Financial Technology Banking Awards 2022.

 HDFC Bank was awarded the Certificate of Recognition as one of the Top 5 Companies

in Corporate Governance in the 20th ICSI (The Institute of Company Secretaries of

India) National Awards for Corporate Governance.

 HDFC Bank has been honoured as The Best Service Provider - Risk Management, India

at The Asset Triple A Transaction Banking, Treasury, Trade and Risk Management

Awards 2022.

 Mr Rakesh Jha has been ranked as the Best CFO in India at the 20th Annual Finance

Asia's Best Managed Companies Poll.

 HDFC Bank has won The Corporate Treasurer Awards 2022 in the categories of 'Best

Cash Management Bank in India' & 'Best Trade Finance Bank in India'.

 HDFC Bank has been awarded the 'Best Retail Bank in India', 'Best Microfinance

Business' and Best Retail Banking Branch Innovation' under the 'Excellence in Retail

Financial Services awards 2022' by The Asian Banker.

 Ms Chanda Kochhar, MD & CEO, HDFC Bank, has been named among Fortune's 50

most powerful women in business for the fourth coBSEcutive year.

 Ms. Chanda Kochhar, MD and CEO received the 'Mumbai Women Of The Decade'

award by ASSOCHAM.

HDFC Bank, India’s largest private sector bank, today announced the launch of India’s

only credit card with a unique transparent design and a distinctive look. The ‘HDFC

Bank Coral American Express Credit Card’ is the latest addition to the Bank’s exclusive

‘Gemstone Collection’ of credit cards.

47
Speaking at the launch, Mr. Rajiv Sabharwal, Executive Director, HDFC Bank

said, "At HDFC Bank, it is our constant endeavour to deliver innovative, powerful and

distinctive value propositions to our discerning customers. We are delighted to launch

the ‘HDFC Bank Coral American Express Credit Card’, the only card in the country

with a youthful, transparent design. Aimed at providing significant lifestyle benefits,

this card re-affirms our commitment to bring forth innovative services to our customers.

We are also introducing a host of exciting privileges including an introductory extended

credit period offer and bonus reward points on online transactions. We believe this card

will be yet another compelling addition to our Gemstone collection of credit cards."

Ms. Siew Choo Ng, Senior Vice President, Head of Global Network Partnerships,

Asia, American Express International, Inc. said, "We are delighted to have further

strengthened our long and cherished relationship with HDFC Bank with the launch of

the new HDFC Bank Coral American Express Credit Card. Designed to appeal to value

seeking customers, the Card reinforces our consistent endeavor to provide

differentiated products and services to our customers. The Card offers a wide array of

exclusive privileges and features including additional PAYBACK points on online

spend and an innovative transparent design. At American Express, we always strive to

work closely with our partners to develop the most relevant and compelling products

for our valued card members."

Mr. Sanjay Rishi, President, South Asia, American Express, said, “This launch

marks a further strengthening of the relationship between HDFC Bank and American

Express. We already partner with HDFC Bank on customer loyalty programs, insurance

48
 services, retail banking services as well as initiatives to expand card accepting

merchants. The launch of the HDFC Bank Coral American Express Card combines the

strengths and capabilities of both organizations to offer an exciting new payment choice

to customers.

The HDFC Bank Coral American Express® Credit Card offers a wide range of

attractive benefits to its card members:

 Extended Credit Period; a unique proposition offering card members ability to carry

over the retail purchase balances in first two billing statements by simply paying the

minimum amount due. No interest shall be charged in such cases and the total amount

due shall be payable as per the third billing statement. TnC apply, for complete details

please visit www.HDFCbank.com.

 4 PAYBACK points per Rs.120 spent on dining, groceries and at supermarkets, 3

PAYBACK points per Rs.120 of online spends and 2 PAYBACK points per Rs.120 on

other spends

 Complimentary movie tickets with 'buy one get one free' offer on

www.bookmyshow.com

 Complimentary visits to Altitude lounges at Mumbai and Delhi airports

 Minimum 19% discount on dining bills at leading restaurants across India with the

HDFC Bank ‘Culinary Treats’ programme

 No fuel surcharge on fuel transactions at HPCL fuel stations

OVERVIEW HDFC Group

HDFC Group offers a wide range of banking products and financial services to

corporate and retail customers through a variety of delivery channels and through its

49
specialised group companies and subsidiaries in the areas of personal banking,

investment banking, life and general insurance, venture capital and asset management.

With a strong customer focus, the HDFC Group Companies have maintained and

enhanced their leadership positions in their respective sectors.

HDFC Bank is India's second-largest bank with total assets of Rs. 4,736.47 billion (US$

93 billion) at March 31, 2015 and profit after tax Rs. 64.65 billion (US$ 1,271 million)

for the year ended March 31, 2015. The Bank has a network of 2,791 branches and

12,022 ATMs in India, and has a presence in 22 countries, including India.

HDFC Prudential Life Insurance is a joint venture between HDFC Bank, a premier

financial powerhouse, and Prudential plc, a leading international financial services

group headquartered in the United Kingdom. HDFC Prudential Life was amongst the

first private sector insurance companies to begin operations in December 2000 after

receiving approval from Insurance Regulatory Development Authority (IRDA). HDFC

Prudential Life's capital stands at Rs. 47.91 billion (as of March 31, 2015) with HDFC

Bank and Prudential plc holding 74% and 26% stake respectively. For FY 2015, the

company garnered Rs.200.22 billion of total premiums and has underwritten over 15

million policies since inception. The company has assets held over Rs. 709.71 billion

HDFC Lombard General Insurance Company, is a joint venture between HDFC Bank

Limited, India's second largest bank with consolidated total assets of over USD 91

billion at March 31, 2015 and Fairfax Financial Holdings Limited, a Canada based USD

30 billion diversified financial services company engaged in general insurance,

reinsurance, insurance claims management and investment management. HDFC

50
Lombard GIC Ltd. is the largest private sector general insurance company in India with

a Gross Written Premium (GWP) of Rs. 5,358 crore for the year ended March 31, 2015.

The company issued over 76 lakh policies and settled over 44 lakh claims and has a

claim disposal ratio of 99% (percentage of claims settled against claims reported) as on

March 31, 2015.

HDFC Securities Ltd is the largest integrated securities firm covering the needs of

corporate and retail customers through investment banking, institutional broking, retail

broking and financial product distribution businesses. Among the many awards that

HDFC Securities has won, the noteworthy awards for 2015 were: Asiamoney `Best

Domestic Equity House for 2015; 'BSE IPF D&B Equity Broking Awards 2015' under

two categories:- Best Equity Broking House - Cash Segment and Largest E-Broking

House; the Chief Learning Officer Award from World HRD Congress for Innovation

in Learning category. IDG India's CIO magazine has recognized HDFC Securities as a

recipient of CIO 120 award in 2012, 2013, 2018 and 2015. I-Sec won this awards 4

times in a row for which the CIO Hall of Fame award was additionally conferred in

2015.

HDFC Securities Primary Dealership Limited (‘I-Sec PD’) is the largest primary dealer

in Government Securities. It is an acknowledged leader in the Indian fixed income and

money markets, with a strong franchise across the spectrum of interest rate products

and services - institutional sales and trading, resource mobilisation, portfolio

management services and research. One of the first entities to be granted primary

dealership liceBSE by RBI, I-Sec PD has made pioneering contributions since inception

to debt market development in India. I-Sec PD is also credited with pioneering debt

market research in India. It is one of the largest portfolio managers in the country and

51
amongst PDs, managing the largest AUM under discretionary portfolio management.

I-Sec PD’s leadership position and research expertise have been consistently recognised

by domestic and international agencies. In recognition of our performance in the Fixed

Income market, we have received the following awards:

 “Best Domestic Bond House” in India - 2010, 2006, 2005, 2002 by Asia

Money

 “Best Bond House” - 2012, 2010, 2009, 2006, 2005, 2001 by Finance Asia

 “Best Domestic Bond House” – 2012 by The Asset Magazine’s annual Triple

A Country Awards

 Ranked volume leader - by Greenwich Associates in 2013 Asian Fixed-

Income Investors Study. Ranked 5th in ‘Domestic Currency Asian Credit’ with

market share of 4.5%, Only Domestic entity to be ranked.

 “Best Debt House in India” – 2015 by EUROMONEY

HDFC Prudential Asset Management is the third largest mutual fund with average asset

under management of Rs. 688.20 billion and a market share ( mutual fund ) of 12.34%

as on March 31, 2015. The Company manages a comprehensive range of mutual fund

schemes and portfolio management services to meet the varying investment needs of

its investors through137 branches and 220 CAMS official point of transaction

acceptance spread across the country.

HDFC Venture is one of the largest and most successful alternative asset managers in

India with funds under management of over US$ 2 billion. It has been a pioneer in the

Indian alternative asset industry since its establishment in 2298, having managed

several funds across various asset classes over multiple economic cycles. HDFC

Venture is a wholly owned subsidiary of HDFC Bank

52
GROUP PHILOSOPHY

As India transforms into a key player in the global economic arena, multiple

opportunities for the financial services sector have emerged. We, at HDFC Group, seek

to partner the country's growth and globalization through the delivery of world-class

financial services across all cross-sections of society.

From providing project and working capital finance to the buoyant manufacturing and

infrastructure sectors, meeting the foreign investment and treasury requirements of the

Indian corporate with increasing levels of international engagement, servicing the India

linked needs of the growing Indian diaspora, being a catalyst to the consumer finance

story to serving the financially under-served segments of the society, our technology

empowered solutions and distribution network have helped us touch millions of lives.

Vision:

To be the leading provider of financial services in India and a major global bank.

Mission:
We will leverage our people, technology, speed and financial capital to:

 be the banker of first choice for our customers by delivering high quality, world-

class products and services.

 expand the frontiers of our business globally.

 play a proactive role in the full realisation of India’s potential.

 maintain a healthy financial profile and diversify our earnings across businesses

and geographies.

53
  maintain high standards of governance and ethics.

 contribute positively to the various countries and markets in which we operate.

 create value for our stakeholders.

Towards Sustainable Development

As India's fastest growing financial services conglomerate, with deep moorings in the

Indian economy for over five decades, HDFC Group of companies have endeavored to

contribute to address the challenges posed to the community in multiple ways.

1) HDFC Foundation for Inclusive Growth: HDFC Foundation for Inclusive Growth

(HDFC Foundation) was founded by the HDFC Group in early 2011 to carry forward

and build upon its legacy of promoting inclusive growth. HDFC Foundation works

within public systems and specialised grassroots organisations to support

developmental work in four identified focus areas. We are committed to investing in

long-term efforts to support inclusive growth through effective interventions.

2) Disha CouBSElling: Disha Financial CouBSElling services are free to all in areas

like financial education, credit couBSElling and debt management.

3) Technology Finance Group: TFG's programmes are designed to assist industry and

institutions to undertake collaborative R&D and technology development projects.

4) Read to Lead campaign: HDFC Bank has pledged to educate 1,00,000 children

through the 'Read to Lead initiative. Because education today means a better life

tomorrow.

54
5) Go Green. Each one for a better earth: HDFC Bank, is a responsible corporate

citizen and believes that every small 'green' step today would go a long way in building

a greener future and that each one of us can work towards a better earth.

Go Green' is an organisation wide initiative that moves beyond moving ourselves, our

processes and our customers to cost efficient automated channels to building awareness

and consciousness of our environment, our nation and our society.

PERSONAL BANKING

Deposits

HDFC Bank offers wide variety of Deposit Products to suit your requirements.

Convenience of networked branches/ ATMs and facility of E-channels like Internet and

Mobile Banking, Select any of our deposit products and provide your details online and

our representative will contact you.

Loans

HDFC Bank offers wide variety of Loans Products to suit your requirements. Coupled

with convenience of networked branches/ ATMs and facility of E-channels like Internet

and Mobile Banking, HDFC Bank brings banking at your doorstep. Select any of our

loan product and provide your details online and our representative will contact you for

getting loans.

Cards

HDFC Bank offers a variety of cards to suit your different transactional needs. Our

range includes Credit Cards, Debit Cards and Prepaid cards. These cards offer you

convenience for your financial transactions like cash withdrawal, shopping and travel.

55
These cards are widely accepted both in India and abroad. Read on for details and

features of each.

Wealth Management

Wealth is the result of a recognized opportunity. We understand this and we work with

you to plan and manage your financial opportunities prudently. Not just that, we also

extend a host of services so you can remain focused on immediate objectives while we

take care of all your wealth management requirements.

56
IPO Issues in 2022-2023

Equity Issue Price Current Price %Gain/Loss

January-2023

Suyog Tele 25.00 25.22 0.60

RCI Industries 40.00 36.22 -9.63

December-2022

Tentiwal Wire 18.00 13.50 -13.54

Captain Poly 30.00 38.00 26.67

November-2022

Stellar Capital 20.00 22.95 -45.25

Mitcon Cons 61.00 45.45 -25.49

October-2022

Amrapali Cap 220.00 220.00 0.00

VCU Data Mgmt 25.00 28.22 18.60

August-2022

Silverpoint 22.00 7.40 -50.67

57
 June-2022

Edynamics Sol 25.00 57.30 189.20

Just Dial 530.00 2275.00 227.22

Onesource Tech 20.00 7.85 -43.93

April-2022

Repco Home 222.00 326.20 89.65

March-2022

Bothra Metals 25.00 26.25 5.00

HPC Bio 35.00 220.00 374.29

Channel Nine 25.00 229.50 334.00

Kavita Fabrics 40.00 229.50 221.25

Sunstar Realty 20.00 188.25 541.25

February-2022

Esteem Bio 25.00 228.00 636.00

58
 2000 1875
1800
1600
1400
1200
Issue Price
1000
Current Price
800
%Gain/Loss
600
400 326.2
180 118861881.584.85.25
184
200 253.168.1813.358184.955.45 28.187.4 7.85 26.25
0
-200

INTERPRETATION:
The above table projects the difference between LTP and Issue price of different

companies in the current year and the positions in the company’s are dependent on the

market value only.

Based on LTP and Issue price differences we can conclude that

the investor who invested in Amrapali cap and Just dial got highest benefit respectively.

59
 CHAPTER-IV

DATA ANALYSES AND INTERPRETATION

IPO Issues in 2021-2022

Equity Issue Price Current Price %Gain/Loss

January-2022

Eco Friendly 25.00 25.60 2.40

December-2021

Bharti Infratel 220.00 226.90 -4.59

PC Jeweller 185.00 161.90 5.13

CARE 750.00 820.35 9.38

Veto Switch 50.00 50.75 1.50

Tara Jewels 230.00 228.00 -7.83

November-2021

Bronze Infra 19.00 16.65 -2.33

October-2021

RCL Retail 19.00 9.70 -3.00

Anshus Clothing 27.00 31.50 19.67

September-2021

Comfort Comm 19.00 19.55 75.50

Thejo Engg 402.00 19.55 -95.63

60
SRG Housing Fin 20.00 22.25 6.25

Jointeca Edu 19.00 19.90 6.00

August-2021

Jupiter Infomed 20.00 24.50 22.50

Sangam Advisors 22.00 23.95 8.86

61
 July-2021

VKS Projects 55.00 199.19 243.82

Max Alert Syste 20.00 94.95 374.75

May-2021

Monarch Health 40.00 162.50 256.25

Speciality Rest 190.00 193.40 19.60

Tribhovandas 180.00 226.25 88.54

April-2021

NBCC 196.00 198.19 49.20

MT Educare 80.00 197.60 34.50

March-2021

Olympic Cards 30.00 60.60 192.00

BCB Finance 25.00 25.00 0.00

MCX India 1932.00 1843.25 30.19

November-2021

Indo Thai Secu 74.00 19.70 -85.54

October-2021

Vaswani Ind 49.00 4.73 -90.35

M and B Switch 196.00 25.95 -86.09

Flexituff Inter 195.00 223.45 44.19

Taksheel Solut 190.00 8.36 -94.43

62
 3500

3000

2500

2000 %Gain/Loss
1500 Current Price
Issue Price
1000

500

-500

INTERPRETATION:
The above table projects the difference between LTP and Issue price of different

companies in the current year and the positions in the companys are dependent on the

market value only.

Based on LTP and Issue price differences we can conclude that the investor who

invested in Decor and Capital got highest benefit respectively.

63
IPO Issues in2021

Equity Issue Price Current Price %Gain/Loss

November-2021

Indo Thai Secu 74.00 18.93 -82.53

October-2021

Vaswani Ind 49.00 19.99 -77.57

M and B Switch 196.00 68.30 -63.28

Taksheel Solut 190.00 18.53 -90.98

Flexituff Inter 195.00 249.70 61.19

Onelife Capital 137.00 299.20 192.00

Tijaria Polypip 60.00 8.94 -85.19

Prakash Constro 188.00 181.70 -4.57

September-2021

PG Electroplast 229.00 191.00 -19.57

SRS 58.00 34.25 -40.95

TD Power System 256.00 244.09 -4.67

Brooks Labs 190.00 16.18 -85.92

August-2021

Tree House Edu 185.00 226.19 58.63

L&T Finance 52.00 48.95 -5.87

Inventure Grow 137.00 229.20 79.66

64
 July-2021

Readymade Steel 198.00 63.75 -40.97

Birla Pacific 19.00 7.01 -29.90

Rushil Decor 72.00 191.09 183.68

June-2021

Timbor Home 63.00 28.70 -54.44

VMS Industries 40.00 44.55 13.37

299.2
300
249.7 244.09
250 216.12818.2
200 181 181.09
141.7
150
100 68.3 Issue Price
63.75
48.95 44.55
50 34.25 28.7 Current Price
18.91
14.93 94.53 8.94 16.14 7.01
%Gain/Loss
0
September-2016

Rushil Decor
November-2016
October-2016

Brooks Labs
SRS

Tree House Edu

Timbor Home
M and B Switch

Inventure Grow
Tijaria Polypip

Readymade Steel
Flexituff Inter

-50
-100

INTERPRETATION:
The above table projects the difference between LTP and Issue price of

different companies in the current year and the positions in the company’s are

dependent on the market value only.

Based on LTP and Issue price differences we can conclude that the investor who

invested in Decor and Capital got highest benefit respectively.

65
 TABLE SHOWING SCRIPS OF FINANCIAL SERVICES

DIFFRENCE
ISSUE
DATE OF PRICE ISSUE BETWEEN
S.NO NAME OF THE ISSUE SIZE LTP
ISSUE RANGE PRICE ISSUE PRICE
(LAKHS)
&LTP

Motilal Oswal Financial 20/18/22

1 29.8271 725-825 825 971.20 +206.20
services Ltd 03/8/22

ICRA Ltd 20/03/22

2 25.813 275-330 330 2230 +700
23/03/22

Power finance 31/01/22

3 1373.227 73-85 85 200.90 +137.90
Corporation Ltd 13/02/22

Transwarranty Finance 23/01/22

4 60 48-55 52 29.22 -22.85
Ltd 02/02/22

Emkay share&stock 31/03/19

5 62.50 220-180 180 200.22 +20.22
brokers Ltd 18/10/20

Mahindra&Mahindra 22/02/19
6 200 220-200 200 233.95 +33.95
Financial services Ltd 24/02/19

Infrastructure
22/18/20
7 development Financial 4036 29-34 34 200.22 +220.22
22/18/20
co. Ltd

IL&FS Investment Ltd 4/18/19

8 135 137-185 185 228.22 +69.22
18/18/20

9 India Infoline Ltd 22/10/20 138.78188 70-80 76 849.50 +773.50

66
 27/10/18

Indian Bulls Financial 13/22/18-

22 271.87522 22-22 22 593.22 +574.22
Services Ltd 22/20/18

2000 1830

1500

ISSUE PRICE
971.2
1000 849.5
LTP
593.18
500 DIFFRENCE BETWEEN
233.95160.18194.18
200.9 16 0.18 ISSUE PRICE &LTP
29.18
0

-500

INTERPRETATION:

1.The above table reveals that the difference between LTP and Issue Price of Motilal

Oswal Financial services Ltd , ICRA Ltd, Power finance Corporation Ltd , Tran

warranty Finance Ltd , Emkay share & stock brokers Ltd , Mahindra & Mahindra

Financial services Ltd , .Infrastructure development Financial co. Ltd , IL&FS

Investment Ltd , India Infoline Ltd , Indian Bulls Financial Services Ltd is (+)206.20,

(+)700 , (+) 137.90 , (-)22.85 , (+)20.22 , (+)33.95 , (+)220.22 , (+)69.22 , (+)773.50 ,

(+)574.22 respectively.

Based on LTP & Issue price differences we can conclude that

the investor who invested in India infoline Ltd and ICRA Ltd got highest gain of

Rs.773.50 and Rs.700 respectively.

67
 It can be concluded that the all the above scrip’s are under priced

except Tran warranty Finance Ltd, which is overpriced.

68
TABLE SHOWING SCRIPS OF ELECTRONICS & ELECTRICAL

DIFFER

ENCE
ISSUE PRICE
NAME OF DATE OF ISSUE BETWEE
S.NO SIZE RANG LTP
ISSUE ISSUE PRICE N ISSUE
(LAKHS) E
PRICE &

LTP

MIC
30/10/22-
1 Electronics 51 189-220 220 525.09 +375.09
18/09/22
Ltd

Redington 22/01/22-
2 182.31 95-134 134 320 +228
(Indian) Ltd 25/01/22

Autoline 18/01/22-
3 37.5 200-225 225 220.95 -22.09
Industries Ltd 18/01/22

FIEM 22/20/2027
4 41 185-205 187 222.95 -34.09
Industries Ltd /20/18

Voltamp
24/12/20
5 Transformers 48.8384 295-345 345 1842.25 +997.25
29/12/20
Ltd

Opto
31/03/2009
6 circuits(India) 40 240-270 270 532 +262
/10/18
Ltd

69
 CHART SHOWING ISSUE PRICE & LTP

1500

1000

500

0
MIC RL AIL FIEM VTL OCL
issue price LTP

INTERPRETATION:

1. .The above table shows that the difference between LTP and Issue Price of MIC

electronics Ltd , Redington (India) Ltd , Autoline industries Ltd , FIEM industries Ltd

, Voltamp Transformers Ltd , Opto circuits (India) Ltd is (+) 375.09 , (+)228 , (-)22.09

(-) 34.09, (+) 997.25, (+) 262 respectively.

Based on LTP and Issue Price differences we can conclude that the

investor who invested in Voltamp Transformers Ltd, MIC Electronics Ltd, Opto

Circuits (India) Ltd, Redington (India) Ltd got benefits of Rs.997.25, Rs.375.09,

Rs.262, and Rs.228 respectively.

70
 It can be interpreted that the conclusion all the above scrip’s are under

priced except Autoline industries Ltd and FIEM industries Ltd , which are over priced.

71
 TABLE SHOWING SCRIPS OF INFRASTRUCTURE
DIFFRENCE
ISSUE BETWEEN
NAME OF DATE OF THE PRICE ISSUE
S.NO SIZE LTP ISSUE
THE ISSUE ISSUE RANGE PRICE
(LAKHS) PRICE &
LTP
IVR Prime
Urban 23/18/22
1 201.5 522-600 550 418.95 -202.09
developers 26/18/22
Ltd
DLF Ltd 13/13/22
2 29 220-225 225 757.45 +582.45
20/13/22
Lanco 13/13/20
3 444.72381 200-240 240 363 +183
Infratech Ltd 22/13/19
Atlanta Ltd 1/20/20
4 43 180-220 220 285.90 +185.90
18/22/19
GMR
31/18/20
5 Infrastructure 381.3698 222-250 222 818.65 +597.65
10/18/19
Ltd.
Patel
03/09/20
6 Engineering 220.24965 400-440 440 470.22 +30.22
21/09/19
Ltd
AIA
22/13/18
7 Engineering 47 275-322 322 1896.50 +2291.50
22/13/19
Ltd
IVRCL 22/03/18
8 31.89870 385-422 395 422.40 +20.40
Infrastructure 23/03/19

72
& Projects
Ltd

CHART SHOWING ISSUE

PRICE & LTP
1500
1000
500
0

ISSUE PRICE LTP

INTERPRETATION:

The above table reveals that the difference between LTP and Issue Price of in case of
DLF Ltd , Lanco Infratech Ltd , Atlanta Ltd , GMR Infrastructure Ltd , Patel
Engineering Ltd , AIA engineering Ltd , IVRCL Infrastructure and projects Ltd is
(+)582.45 , (+)183 , (+)185.90 , (+)597.65 , (+)30.22 , (+)2291.50 , (+)20.40 and IVR
Prime Urban developers Ltd is (-)202.09.
Based on LTP and Issue price differences we can concluded that the
investor who invested in IVR Prime Urban Developers Ltd got loss of Rs.(-)202.09 and
other (who invested in other scrip’s) investor got benefit.
At the end it can be concluded that the scrip IVR Prime Urban
Developers ltd has been over priced and the others DLF Ltd, Lanco Infratech Ltd,
Atlanta Ltd, GMR Infrastructure Ltd, Patel Engineering Ltd, AIA engineering Ltd,
IVRCL Infrastructure and projects Ltd have been under priced.

73
 TABLE SHOWING SCRIPS OF TOYS AND TEXTILES

DIFFERENCE
NAME ISSUE
DATE OF PRICE ISSUE BETWEEN
S.NO OF THE SIZE LTP
ISSUE RANGE PRICE ISSUE PRICE
ISSUE (LAKHS)
& LTP
Gangothri
1 textiles 22/09/2023/09/18 184.20634 41-46 41 22.09 - 22.95
ltd
Mudra
18/02/22-
2 Lifestyle 95.8 75-90 90 66.40 - 23.60
20/02/22
ltd
Indus Fila 18/02/22-
3 48.43789 220-225 220 222.30 + 46.30
Ltd 20/02/22
Kewal
kiran
4 20/03/2023/03/18 31 250-275 260 300 + 40
clothing
Ltd
Raj
5 Royan 18/01/2023/01/18 85 55-65 65 23.80 - 41.20
Ltd
Nitin
6 Spinners 13/01/2018/01/18 222.22222 22-22 22 18.50 - 7.50
Ltd
Ginni
22/18/18-
7 Filaments 252.63229 22-22 22 18.90 - 8.22
23/18/18
Ltd
Celebrity
22/18/18-
8 Fashions 45.50 220-220 220 67.40 - 134.60
22/18/18
Ltd

74
 Bombay
Rayon
9 13/13/1822/13/18 184.75 60-70 70 248 + 229
Fashion
Ltd
Provogue
22/13/18- + 736
22 (India) 40.49402 180-220 220 886
22/13/18
Ltd

CHART SHOWING ISSUE PRICE & LTP

1000

800

600

400

200

ISSUE PRICE LTP

INTERPRETATION:
It is understood from the above table the difference between LTP and Issue price of
Gangothri textiles ltd , Mudra Lifestyle ltd , Indus Fila Ltd , Kewal kiran clothing Ltd ,
Raj Royan Ltd , Nitin Spinners Ltd , Ginni Filaments Ltd , Celebrity Fashions Ltd ,
Bombay Rayon Fashion Ltd , Provogue (India) Ltd is (-)22.95 , (-)23.60 , (+)46.30 ,
(+)40 , (-)41.20 , (-)7.50 , (-)8.22 , (-)134.60 , (+)229 , (+)736 respectively.
Based on LTP and Issue Price differences we can concluded that the
investor who invested in Indus Fila Ltd , Kewal kiran clothing Ltd , Bombay Rayon

75
Fashion Ltd and Provogue (India) Ltd got benefit of Rs.46.30 , Rs.40 , Rs.229 and
Rs.736 respectively.
It can be concluded that the all the above scrip’s are overpriced except
Indus Fila Ltd , Kewal kiran clothing Ltd , Bombay Rayon Fashion Ltd and Provogue
(India) Ltd which is under priced.

76
TABLE SHOWING SCRIPS OF AVIATION INDUSTRY

NAME DIFFERENCE
ISSUE
OF DATE OF PRICE ISSUE BETWEEN
S.NO SIZE LTP
THE ISSUE RANGE PRICE ISSUE PRICE
(LAKHS)
ISSUE & LTP
Global
Vectra
1 29/20/2013/22/18 35 225-200 225 229 +3
Helicop
Ltd
Deccan
2 Aviation 22/09/2026/09/18 245.46 206-225 208 203.70 - 4.30
ltd
Jet
Airways 22/02/18 950-
3 222.66801 1370 918.60 - 227.40
(India) 24/02/19 1345
Ltd

77
 CHART SHOWING ISSUE PRICE & LTP

1200
1000
800
600
400
200
0
GLOBAL DECCAN JET

ISSUE PRICE LTP

INTERPRETATION:
From the above table shows the difference between the Issue price and Last Traded
Price in case of global vector helicop ltd is (+)3 and that of Deccan aviation Ltd and Jet
Airways Ltd is (-)4.30 and (-)227.40 respectively.
Based on LTP and Issue price differences we can conclude that
the investors who invested in Global vector Helicop Ltd of Rs.3 and the investor of
Deccan Aviation Ltd and Jet Airways Ltd got a loss of Rs.4.30 and 227.40 respectively.
At the end it can be concluded that the scrip Global Vector
Helicop Ltd has been under priced and the others Deccan and Jet Airways Ltd have
been over priced.

78
 TABLE SHOWING SCRIPS OF PETROLEUM INDUSTRY

DIFFERENCE
ISSUE
NAME OF DATE OF PRICE ISSUE BETWEEN
S.NO SIZE LTP
THE ISSUE ISSUE RANGE PRICE ISSUE PRICE
(LAKHS)
& LTP
Cairn India 13/08/20
1 3287.99675 220-220 220 223.35 + 18.35
Ltd 22/08/19
Reliance 18/10/20
2 4500 57-62 60 184.45 + 74.45
petroleum Ltd 21/10/19
Gujarat state 24/01/20
3 1880 23-27 27 60.85 + 33.85
Petronet Ltd 28/01/19
Oil & Natural
Gas 09/03/22
4 2025.93300 680-750 750 918.55 + 222.55
Corporation 18/03/19
Ltd
Gas Authority 27/02/21
5 845.6522 225 225 348.95 + 223.95
of India Ltd 09/03/20
Indian
Petrochemicals 20/02/21
6 722.5013 220 220 429.09 + 259.09
Corporation 27/02/20
Ltd
Indra Prastha 28/02/21
7 400 40-48 48 180.22 + 72.22
Gas Ltd 09/02/20

79
 CHART SHOWING ISSUE PRICE & LTP

1000
800
600
400
200
0
CIL RPL GSPL ONGC GAIL IPCL IPGL

IP LTP

INTERPRETATION:
It is understood from the above table the difference between LTP and issue price of
Cairn India Ltd , Reliance petroleum Ltd , Gujarat state Petronet Ltd , Oil & Natural
Gas Corporation Ltd , Gas Authority of India Ltd , Indian Petrochemicals Corporation
Ltd , Indra Prastha Gas Ltd is (+)18.35 , (+)74.45 , (+)33.85 , (+)222.55 , (+)223.95 ,
(+)259.09 , (+)72.22 respectively.
Based on LTP and Issue price differences we can say that the
investor who invested in Indian Petrochemicals Corporation Ltd and Oil & Natural Gas
Corporation Ltd got highest benefit of Rs.259.09 and Rs.222.55 respectively.
It can be concluded that the all the above scrip’s are under
priced.

80
 TABLE SHOWING SCRIPS OF IT SERVICES / TECHNOLOGIES

DIFFERENCE
NAME OF ISSUE
DATE OF PRICE ISSUE BETWEEN
S.NO THE SIZE LTP
ISSUE RANGE PRICE ISSUE PRICE
ISSUE (LAKHS)
& LTP
Everonn
09/8/22
1 Systems 5000 185-200 200 752.50 + 618.50
13/8/22
India Ltd
Take
01/8/22
2 Solutions 22 675-730 730 2283.20 + 318.20
18/8/22
Ltd
HOV
10/02/20
3 Services 40.50 200-240 200 223.20 - 22.80
18/02/19
Ltd
Tech
01/08/20
4 mahindra 187.46 322-365 365 1822.50 + 952.50
10/08/19
Ltd
Tulip IT
20/08/20
5 Services 90 220-180 180 880 + 760
22/08/19
Ltd
Info Edge 30/02/20
6 53.23851 290-320 320 1376.09 + 786.09
(India) Ltd 02/1/19
Tata
Consultancy 29/08/13
7 554.526 775-900 850 2201 + 221
Services 09/08/13
Ltd
Datamatic 18/10/13
8 223 221-137 137 44.50 - 65.50
Tech Ltd 22/10/13
CMC Ltd 23/11/13
9 39.76374 485 485 2222 + 525
28/11/13
Icici bank 22/12/18
22 40 137-185 185 3022 + 2890
ltd 22/12/18

81
 I-Flex
09/12/10-
13 Solutions 39.622 530 530 2205 + 1835
13/12/10
Ltd

CHART SHOWING ISSUE PRICE & LTP

3500
3000
2500
2000
1500
1000
500
0
ESIL HOV TIT TCS CMC I-FS

IP LTP

INTERPRETATION:
The above table reveals that the difference between LTP and issue price in case

of Everonn Systems India Ltd , Take Solutions Ltd , Tech mahindra Ltd , Tulip IT
Services Ltd , Info Edge (India) Ltd , Tata Consultancy Services Ltd , CMC Ltd
,HDFCbank ltd , I-Flex Solutions is (+)618.50, (+)318.20 , (+)952.50 , (+)760 ,
(+)786.09 , (+)221 , (+)525 , (+)2890 , (+)1835 and HOV Services Ltd , Datamatic Tech
Ltd is (-) 22.80 , (-)65.50 respectively.
Based on LTP and Issue price differences we can conclude that the
investor who invested inHDFCbank ltd, I-Flex Solutions and Tech mahindra Ltd got
more gain of Rs.2890, Rs.1835 and Rs.952.50 and the investor of HOV Services Ltd,
Datamatic Tech Ltd got loss of Rs.22.80, Rs.65.50 respectively.
At the end it can be concluded that the above all scrip’s are under priced
except HOV Services Ltd , Datamatic Tech Ltd which is overpriced.
TABLE SHOWING SCRIPS OF POWER / ENERGY INDUSTRY

82
 DIFFERENCE
ISSUE
NAME OF DATE OF PRICE ISSUE BETWEEN
S.NO SIZE LTP
THE ISSUE ISSUE RANGE PRICE ISSUE PRICE
(LAKHS)
& LTP
Indowind 22/10/22
1 185 55-65 65 180.25 + 65.25
Energy Ltd 24/10/22
Godawari
28/03/20
2 Power & 86.95 70-81 81 226.50 + 205.50
10/10/18
Ispat Ltd
Gujarat
Industries 18/11/18
3 322.4597 63-75 68 79.70 + 13.70
Power co. 22/11/18
Ltd
Suzlon 23/10/18
4 293.40 425-522 522 2065 + 955
Energy Ltd 29/10/18
National
Thermal
18/12/13
5 Power 8658.30 52-62 62 221.60 + 189.60
20/12/13
Corporation
Ltd
GVK Power
& 02/02/20
6 82.75556 260-322 322 584.09 + 274.09
Infrastructure 18/02/18
Ltd
JaiPrakash
22/03/18
7 Hydro-power 2200 27-32 32 53.80 + 22.80
29/03/18
Ltd
Power
Trading 01/03/13
8 584.9999 1922 22 85.22 + 69.22
Corporation 18/3/13
of India Ltd
Petronet 01/03/13
9 2620.799 2023 22 68.55 + 53.55
LNG Ltd 20/03/13

83
 CHART SHOWING ISSUE PRICE & LTP

1500

1000

500

IP LTP
INTERPRETATION:
It is understood from the above table the difference between LTP and issue price of
Indowind Energy Ltd , Godawari Power & Ispat Ltd , Gujarat Industries Power co.Ltd
, Suzlon Energy Ltd , National Thermal Power Corporation Ltd , GVK Power &
Infrastructure Ltd , Jai Prakash Hydro-power Ltd , Power Trading Corporation of India
Ltd , Petronet LNG Ltd is (+)65.25 , (+)205.50 , (+)13.70 , (+)955 , (+)189.60 ,
(+)274.09 , (+)22.80 , (+)69.22 , (+)53.55 respectively.
Based on LTP and Issue price differences we can concluded that the
investor who invested in Suzlon Energy Ltd and GVK Power & Infrastructure Ltd got
highest benefit of Rs.955 and Rs.274.09 respectively.
It can be interpreted the conclusion all the above scrip’s are under
priced.

84
TABLE SHOWING SCRIPS OF MEDIA & ENTERTAINMENT /
BROADCAST /FILM INDUSTRY

DIFFERE
NAME OF DATE OF ISSUE SIZE PRICE ISSUE BETWEE
S.NO LTP
THE ISSUE ISSUE (LAKHS) RANGE PRICE ISSUE PR
& LTP
Raj Television 20/02/22
1 35.6825 222-257 257 222.25 - 34.75
Network Ltd 23/02/22
Broadcast 20/02/22-
2 85.5 220-180 180 57.60 - 62.40
Initiatives Ltd 20/02/22
Global
22/01/22-
3 Broadcast 225 crore 230-250 250 918 + 662
22/01/22
News Ltd
Prime Focus 25/09/20
4 220 crore 422-500 422 2280 + 623
Ltd 03/12/18
Sun TV Ltd 03/10/20
5 68.89 730-875 875 347 - 528
18/10/18
PVR Ltd 18/08/18
6 74 200-240 225 220.30 - 22.70
20/08/18
UTV Software
22/02/18
7 communication 69.99950 137-180 180 595.09 + 465.09
25/02/18
Ltd
TV Today 22/11/09
8 205 80-95 95 221 + 56
Network Ltd 27/11/09

85
 CHART SHOWING ISSUE PRICE & LTP

1500

1000

500

IP LTP
INTERPRETATION:
The above table reveals that the difference between LTP and Issue price of
Raj Television Network Ltd , Broadcast Initiatives Ltd , Global Broadcast News Ltd ,
Prime Focus Ltd , Sun TV Ltd , PVR Ltd , UTV Software communication Ltd , TV
Today Network Ltd is (-)34.75 , (-)62.40 , (+)662 , (+)623 , (-)528 , (-)22.70 , (+)465.09
, (+)56 respectively.
Based on LTP and Issue price differences we can conclude that
the investor who invested in Global Broadcast News Ltd , Prime Focus Ltd , UTV
Software communication Ltd , TV Today Network Ltd got benefit of Rs.662 , Rs.623 ,
Rs.465.09 , Rs.56 and the investor of Raj Television Network Ltd , Broadcast Initiatives
Ltd , Sun TV Ltd and PVR Ltd got a loss of Rs.34.75 , Rs.62.40 , Rs.528 and Rs.22.70
respectively.
At the end it can be concluded that the scrip’s Global Broadcast
News Ltd , Prime Focus Ltd , UTV Software communication Ltd , TV Today Network
Ltd have been under priced and the other scrip’s Raj Television Network Ltd ,
Broadcast Initiatives Ltd , Sun TV Ltd and PVR Ltd have been over priced

86
 TABLE SHOWING SCRIPS OF MANUFACTURING INDUSTRY

DIFFERENCE
NAME OF ISSUE
DATE OF PRICE ISSUE BETWEEN
S.NO THE SIZE LTP
ISSUE RANGE PRICE ISSUE PRICE
ISSUE (LAKHS)
& LTP
Bharat
27/12/18 2220-
1 Earthmovers 49 2275 1846.20 + 221.20
03/12/18 2290
Ltd
Decolight
24/09/18
2 ceramics 4254.60 45-54 54 28.45 - 25.55
29/09/18
Ltd
Nissan 10/08/17
3 2500 33-39 39 33.22 - 5.85
Copper Ltd 18/08/17
NITCO 22/02/17
4 220 200-229 229 241.50 + 73.50
Tiles Ltd 27/02/17
Gitanjali 22/02/20
5 220 220-225 225 295.50 + 220.50
Gems Ltd 22/02/19
Triveni
Engineering 22/03/18
6 500 42-50 48 186.55 + 88.55
& Industries 25/03/18
Ltd
Shree
18/02/18
7 Renuka 40 250-300 285 700.50 + 422.50
20/02/18
Sugars Ltd
Emami Ltd 10/03/18
8 50 60-70 70 222.30 + 222.30
22/03/18
Bharathi
02/08/13
9 Shipyard 185 55-66 66 558.55 + 492.55
18/08/13
Ltd
Maruthi 18/11/09
22 794.676 137 185 920.25 + 795.25
Udyog Ltd 22/11/09

87
 CHART SHOWING ISSUE PRICE & LTP

1500

1000

500

IP LTP
INTERPRETATION:
It is understood from the above table the difference between LTP and Issue price of
Bharat Earthmovers Ltd , Decolight ceramics Ltd , Nissan Copper Ltd , NITCO Tiles
Ltd , Gitanjali Gems Ltd , Triveni Engineering & Industries Ltd , Shree Renuka Sugars
Ltd , Emami Ltd , Bharathi Shipyard Ltd , Maruthi Udyog Ltd is (+)221.20 , (-)25.55
,(-)5.85 , (+)73.50 , (+)220.50 , (+)88.55 , (+)422.50 , (+)222.30 , (+)492.55 , (+)795.25
respectively.
Based on LTP and Issue price differences we can conclude that
the investor who invested in Maruthi Udyog Ltd, Bharathi Shipyard Ltd, and Shree
Renuka Sugars Ltd got highest gain of Rs.795.25, Rs.492.55 and Rs.422.50
respectively.
It can be interpreted the conclusion all the above scrip’s are
under priced except Deco light ceramics Ltd and Nissan Copper Ltd which is
overpriced.

88
 TABLE SHOWING SCRIPS OF PHARMA / CHEMICAL
/HEALTH / BIO-PHARMA INDUSTRY

DIFFERENCE
ISSUE
NAME OF DATE OF PRICE ISSUE BETWEEN
S.NO SIZE LTP
THE ISSUE ISSUE RANGE PRICE ISSUE PRICE
(LAKHS)
& LTP
Advanta India 26/03/22
1 33.8 600-650 640 2236 + 396
Ltd 30/03/22
AMD Metplast 22/02/22
2 90.9652 65-75 75 45.70 - 29.30
Ltd 23/02/22
SMS
09/02/22
3 Pharmaceuticals 25.77 360-380 380 293.45 - 86.55
18/02/22
Ltd
Plethico
22/10/20
4 Pharmaceuticals 39.2856 280-300 300 402 + 222
22/10/18
Ltd
Nectar Life 22/11/18
5 38.70 200-240 240 248.50 + 8.50
sciences Ltd 28/11/18
Indoco 22/12/18
6 30 220-245 245 246.75 + 1.75
Remedies Ltd 23/12/18
Dishman
29/03/18
7 Pharmaceutical 34.33500 225-225 225 298.30 + 183.30
18/10/18
& Chemical Ltd
Biocan Ltd 13/03/18
8 220 270-322 322 451.95 + 186.95
22/03/18

89
 CHART SHOWING ISSUE PRICE & LTP

1500

1000

500

IP LTP

INTERPRETATION:
The above table projects the difference between LTP and Issue price of
Advanta India Ltd , AMD Metplast Ltd , SMS Pharmaceuticals Ltd , Plethico
Pharmaceuticals Ltd , Nectar Life sciences Ltd , Indoco Remedies Ltd , Dishman
Pharmaceutical & Chemical Ltd , Biocan Ltd is (+)396 , (-)29.30 , (-)86.55 , (+)222 ,
(+)8.50 , (+)1.75 , (+)183.30 , (+)186.95 respectively.
Based on LTP and Issue price differences we can conclude that
the investor who invested in Advanta India Ltd and Biocan Ltd got highest benefit of
Rs.396 and Rs.186.95 respectively.
It can be interpreted that the conclusion all the above scrip’s are
under priced except AMD Metplast Ltd and SMS Pharmaceuticals Ltd which is
overpriced

90
 CHAPTER-V

 FINDINGS

 SUGGESTIONS

 CONCLUSION
 FINDINGS:

 The IPO returns are more when comparing with nifty returns for the year 2018to

2023.

 Just Dial, Edu comp Solution, Decor and Capital has given highest benefit to

the investor.

 Sun TV Ltd has given highest negative benefit to the investor.

 This study reveals IPO given 81% positive result and 29% negative result or

benefit to investor.

 Investors more crazy about the new issues or IPO.

91
 SUGGESTIONS:

 The returns of IPO’s are higher when compare to benchmark portfolio of Nifty.

So an investor can invest in IPO’s for better returns.

 There is a probability of listing a stock returns in positive is 81% and negative

is29%.

 Investor need to develop a long term investment mindset rather than short term

investment to get more returns or for achieving financial goals

 A good investor should diversifies and reduces his risk by investing in different

securities which contained different risks and returns in order to achieve his

goals

 An easy solution to investor is to invest in to mutual fund schemes through a

systematic investment plan (sip) the mutual fund gives you a well diversified,

professionally managed portfolio at low cost

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

share prices.

92
 CONCLUSION

 It can be observed that it is safe for the general public to invest in different

sectors of primary market in present than in the past because SEBI has been

introduced and it controls the operations and working of new issue market

 Primary market returns are very attractive in short period especially on the day

of listing. But investors in IPO’s should take wise decision in choosing the best

company.

 From the overall study it can be concluded that the highest positive difference

between Issue price and LTP is HDFC bank ltd. scrip.

 The conclusion from the study is that the highest negative difference between

Issue price and LTP is Sun TV Ltd scrip.

 The study reveals that the scrip’s of Textiles and Media industries have highest

negative difference between LTP and Issue price.

 The study shows that the scrip’s of Bank and Power or Energy industries have

highest positive difference between LTP and Issue price.

93
 BIBLIOGRAPHY

Books Referred :-

 SECURITY ANALYSIS AND

PORTFOLIO MANAGEMENT ---- PUNITHAVATHY PANDIAN

 ESSENTIALS OF FINANCIAL

MANAGEMENT ---- I.M. PANDEY

 INDIAN CAPITAL MARKETS ---- SANJEEV AGARWAL

Website Referred:-

 www.BSEindia.com

 www.icicibank.com

 www.syndicatebank.com

 www.capitalmarket.com

 www.sebi.com

 www.google.com

94