INITIAL PUBLIC OFFERING
A project submitted to
University of Mumbai for partial completion of the degree of
Bachelor in Commerce (Financial Markets)
Under the Faculty of Commerce
By
Priyanka Mudhliyar
Under the Guidance of
Mrs. Priyanka A. Gogri
SIES (Nerul) College of Arts, Science and Commerce
Sir Chandrasekarendra Saraswati Vidyapuram,
Plot I – C, Sector V, Nerul,
Navi Mumbai – 400706
(2019 – 2020)
Sir Chandrasekarendra Saraswati Vidyapuram, Plot I – C, Sector V, Nerul,
Navi Mumbai – 400706
Certificate
This is to certify that Priyanka Mudhliyar has worked and duly completed her
Project Work for the degree of Bachelor in Commerce (Financial Markets) under the
Faculty of Commerce in the subject of Financial Markets and her project is entitled,
“INITIAL PUBLIC OFFERING” under my supervision. I further certify that the
entire work has been done by the learner under my guidance and no part of it has been
submitted previously for any Degree or Diploma of any University.
It is her own work and facts reported by her personal findings and investigations.
Mrs. Priyanka A. Gogri
Date of submission:
Declaration
I the undersigned Priyanka Mudhliyar here by, declare that the work embodied in
this project work titled “Initial Public Offering”, forms my own contribution to the
research work carried out under the guidance of Mrs. Priyanka A. Gogri is a result
of my own research work and has not been previously submitted to any other
University for any Degree/ Diploma to this or any University.
Wherever reference has been made to previous works of others, it has been clearly
indicated as such and included in the bibliography.
I, here by further declare that all information of this document has been obtained and
presented in accordance with academic rules and ethical conduct.
Priyanka Mudhliyar
Certified by
Mrs. Priyanka A. Gogri
Acknowledgment
To list who all have helped me is difficult because they are so numerous and the depth
is so enormous.
I would like to acknowledge the following as being idealistic channels and fresh
dimensions in the completion of this project.
I take this opportunity to thank the University of Mumbai for giving me chance to do
this project.
I would like to thank my Principal, Dr. Milind Vaidya for providing the necessary
facilities required for completion of this project.
I take this opportunity to thank our Coordinator Mr. Girish Kirtani, for his moral
support and guidance.
I would also like to express my sincere gratitude towards my project guide Mrs.
Priyanka A. Gogri whose guidance and care made the project successful.
I would like to thank my College Library, for having provided various reference
books and magazines related to my project.
Lastly, I would like to thank each and every person who directly or indirectly helped
me in the completion of the project especially my Parents and Peers who supported
me throughout my project.
CONTENTS
PAGE
SR. NO TITLE OF THE CHAPTER
NO.
1. INTRODUCTION
1.1 FINANCIAL MARKETS & IPO 1
1.2 DIAGRAME ON OVERVIEW OF PRIMARY
2
AND SECONDARY MARKET
1.3 PRIMARY MARKET GENESIS AND
3
GROWTH
1.4 WHAT IS AN IPO 3
1.5 POPULARISING THE NEW ISSUE 4-5
1.6 SOME TERMS IN IPO INDUSTRY 6-10
1.7 THE RISK FACTOR 10-13
1.8 BOOK BUILDING 13-16
1.9 BRIEF NOTE ON INTERMEDIATATIES 16-18
1.10 SEBI AND IPO ELIGIBLITY 18-22
1.11 THE EFFECTS OF MARKETING ON IPO’S 22-23
1.12 GRADING OF IPOS 23-25
1.13 GUIDE TO UNDERSTAND AN OFFER
25-27
DOCUMENT
2 RESEARCH METHODOLOGY
2.1 OBJECTIVE OF THE STUDY 28
2.2 RESEARCH DESIGH 28
2.3 PRIMARY DATA 28
2.4 SECONDARY DATA 28
2.5 SAMPLING 29
3 LITERATURE REVIEW 30-33
4 DATA ANALYSIS AND INTERPRETATION 34-46
5 CONCLUSION AND SUGGESTION 47-48
6 BIBLIOGRAPHY 49
7 ANNEXTURE 50-51
EXECUTIVE SUMMARY
When a business entity needs money the general course of action that it follows is that
it goes to the bank. However, banks may not be ready to provide huge finance for a
long time especially if the returns are not fixed. The best way to raise money is
through offer of shares. The securities which the companies’ issue for the first time to
the public and other financial institutions either after incorporation or on conversion
from private to public company is called “INITIAL PUBLIC OFFERING” or “IPO”.
Raising equity gives boost to economical development of the country. Raising money
through IPO is a very complex process. It requires analysis and implementation of
various commercial laws applicable to IPO-Prospectus. These laws are Companies
Act, Income Tax Act, FEMA, Securities Contract Act and SEBI Guidelines on
“Disclosure and Investor Protection”. It is also necessary to implement circulars from
time to time by SEBI. The introduction of SEBI attracted Foreign Institutional
Investors to invest money in stock market in India. It has also helped Indian
Companies to offer securities in most scientific Method to Indian and Foreign
investors Therefore to understand this complex subject; I decided to undertake Studies
by this Project Report.
