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INTRODUCTION ABOUT ARCADIA


ABOUT ARCADIA :

Arcadia came to life in1995, right on the wave of a post –


liberalization market economy. As financial services became a major
contributor to economic growth, Arcadia has steadily shaped into a
leading financial service provider.

In 1995, Arcadia was a small company with just 5 employees.


Today, Arcadia has market presence across the country, with over 250
branches and franchisee outlets. Arcadia has established a strong retail
network not only in metros but also in tier two and tier three cities.
Traditionally, Arcadia operation was concentrated in the fast-moving
capital market of Western India. But sensing great potential, Arcadia has
launched strong expansion plans in the North and South.

This systematic presence-building and efficient delivery of


service has put Arcadia among the fastest growing retail broking houses
in the country, with memberships in :

(1) The National Stock Exchange of India ( NSE )


(2) The Bombay Stock Exchange (BSE)
(3) The Multi Commodity Exchange ( MCX )
(4) The National Commodity & Derivatives Exchange ( NCDEX )
(5) The Depository Participate Of CDSL

Today Arcadia has accumulated acknowledged leadership in


execution and clearing services on exchange-traded derivatives and cash-
market products.

Working with leading stock exchanges and noted financial


institution has frilled in us the importance of real-time information and use
of analytical tools in investment decision. Practicing this over the years
has made us experts in investor behaviour.

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Arcadia’s integrated and innovation use of technology provides


clients with the ability to trade offline and online. Clients have constant
access to account information either on internet or through our electronic
File Transfer Protocol (FTP).

TOP MANAGEMENT :

MR. ANTHONY SEQUEIRA (Founder, Managing Director):

The chief promoter of Arcadia has been associated with the


capital markets for over 25 years.

Mr. Sequeira has a rich 19 years of banking experience with


Corporation Bank and Syndicate Bank. For 6 years he was the Chief
Executive of M/S Uday S. Kotak, now known as Kotak Securities. Mr.
Sequeira is respected in the organization for being a complete
taskmaster. His thrust for client satisfaction is an energizing force within
the organization. He is completely committed toward making Arcadia a
one-stop financial service provider.

MR. NITIN BRAHMBHATT (Director):

The director is an arbitrage consultant by profession, with 25


years experience in the capital market. Between 1985 and 1995, he
played the role of a leading market maker in the Bombay Stock Exchange.

He has a rich experience in the field of arbitrage. The credit for


building the arbitrage team for Arcadia goes to him. It is his leadership,
Arcadia has created a mammoth network of branches and franchisees.

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VISION AND MISSION:

(1) To be a reputed provider of reliable, ready-to-use, high


integrity financial services.
(2) To offer customer delight with best value for money and
maximum market access.
(3) To persistently expand territorial presence and enlarge
clientele base.
(4) To be an involved business, with focus on technology,
innovation and creativity.
(5) To continually develop quality products, keeping pace with
emerging market needs.
(6) To create a principled work atmosphere that empowers
employees to learn and grow.

PRESENCE IN MARKET :

REGITERED OFFICE :
Arcadia Share & Stock Brokers Pvt. Ltd.,
Second Floor, Lenin Complex, Opposite Apollo Hospital,
Bhagyanagar Colony, Kukatpally,
Hydrabad: 500072

HEAD OFFICE :
Arcadia Share & Stock Brokers Private Ltd.,
328 Ninad, building no.7, Service Road, Bandra (East),
Mumbai – 400 051.
Telephone: +91-022-26478888, Fax: +91-22-26478988

Note: Arcadia has over 55 branches in Mumbai

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REGIONAL OFFICES :

Ahmedabad : 079-32930948 Kochi : 0484-3077505


Amritsar : 0183-3248222 Ludhiana : 0181-3248555
Bangalore : 08041-284862 Mangalore: 0824-2442112
Bhavnagar : 0278-3001755 Mohali : 0181-3248555
Bikaner : 0151-2272926 Nadiad : 02068-3093237
Goa : 0832-2221753 New Delhi : 011-55326101
Hyderabad : 040-32400308 Surat : 0261-243248
Jaipur : 0141-3213755 Udupi : 0820-3255820
Jalandhar : 0181-3248555 Vadodara : 0265-3922250
Kannur : 0497-2703910

PRODUCT AND SERVICES :

They have a wide range of products specially designed to meet


financial requirement of individual and corporate investors, both Indians
and NRI (Non Resident Indians.)

1). Capital Market:


They offer trading in NSE that has played a catalytic role in
reforming the Indians securities market in term of microstructure, market
practices and trading volumes. Here we trade both in capital and future &
option markets.

2). Commodity Market :


They help us at the ‘independent and de-mutulised
multi-commodity exchange. They facilitate trading in the National
commodity & derivatives Exchange Ltd.

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3). NRI (Non – resident Indian) :
They have a separate desk to guide Non-resident Indian
investors about Initial Public Offer (IPO), the secondary market of listed
stocks and mutual funds.

4).Internet-Based trading :
The biggest advantage of online trading is that investor
command an expansive access to information. Corporate analysis and
financial results are available on the net. In order to facilitate smooth and
safe trading on the net. Also, Arcadia trading terminals are linked with
HDFC Bank and UTI Bank to facilitate hassle-free transfer of funds.

5).Mutual Funds :
MF is one of the best investments in the contemporary
market because they are cost-efficient and easy to manage. It’s the MF
manager who decides the direction of your investment. In fact, by pooling
money together in a MF, small investors themselves can purchase stock
and bonds paying much lower trading costs.

6). IPO :
Timely investment in Initial Public Offerings, better known as
IPOs, offer great opportunity for netting high returns in a short time span.

7). Catch the Market Live :


The daily market report contains updated and
comprehensive market information with guided insight into the investment
environment and market swings of the day.

8). Book-Keeping in back office.

9). Depository services.

INTRODUCTION ABOUT STOCK MARKET

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CAPITAL MARKET :

Capital market deals with long – term funds. It supplies long


term and medium term funds. Capital market deals with ordinary shares,
stocks, debentures and bonds of corporation and securities of the govt.
the funds which flow into the capital market comes from savers. Since
1951, the Indian capital market has been broadening slowly. The volume
of savings and investment, have started showing steady improvement.
and further, there are various institutions, which operate in the capital
market give quantitative and qualitative direction to the flow of funds and
bring rational allocation of resources. The structures of Capital Market
are as follow.

CAPITAL MARKET

NON-
MARKETABLE
MARKETABLE
SECURITIES
SECURITIES

GOVT.
SECURITIES DEBT LOAN
CORPORATE MUTUAL BANK COMPANY POST
SECURITIES
INSTRUME- FUND DEPOSIT DEPOSIT OFFICE
AND
NT ADVANCES

Marketable securities: Marketable securities are those which can easily


transfer from one person to another person. These are issued through
new issue market and traded through stock market.

Non- Marketable Securities: Non- Marketable securities are issued by


Post office as saving certificate, deposits; deposits with Bank and
Financial Institutions, Loan & advances from Bank & Financial Institutions
etc.

MEANING OF STOCK EXCHANGE :

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Stock exchange represents an organized market in trading of


securities. Stock exchange is established with the main purpose of
providing a market place for the members to deal in securities. Stock
exchanges are indispensable for the proper functioning of corporate
enterprises. Stock exchange helps the investors, ready and continuous
market, negotiability, liquidity and safety of investments.

According to securities contracts (regulation) Act 1956, stock


exchange means anybody or individuals, wherever incorporated or not
constituted for the purpose of assessing, regulation or controlling the
business of buying, selling or dealing in securities.

According to this Act, a security includes shares, scrip’s, stocks,


bonds, debentures or other marketable securities.

HISTORY OF STOCK EXCHANGE :

Exchange arises in Europe in 16 th century. Trading was carried


on in those exchanges in terms of “securities”. The London stock
exchange was tended to deals only in company shares at that time. It may
also consider as the earliest of modern type of stock markets.

1860, the exchange flourished with 60 brokers. In fact the


'Share Mania' in India began with the American Civil War broke and the
cotton supply from the US to Europe stopped. Further the brokers
increased to 250.At the end of the war in 1874, the market found a place
in a street (now called Dalal Street). and The National Stock Exchange Of
India (NSE) was incorporated in November 1992 as tax-paying company.

LISTING OF SECURITIES :

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Listing means admission of securities to dealings on a
recognized stock exchange of any incorporated company, central & state
Governments, Quasi Governmental and other financial institution,
municipalities, electricity, housing boards etc. Stock Exchange means any
body of individuals, whether incorporated or not, constituted for the
purpose of assisting, regulation or controlling the business of buying,
selling or dealing of securities.

Every recognized stock exchange i.e. a stock exchange which


is for the time being recognized by the central Govt. under section 4 of the
securities regulation Act, 1956, has the power to make bye-laws for the
listing of securities on the stock exchange.

Securities are bought and sold in a recognized stock exchange


are known as ‘Brokers’. The price at which the securities are bought and
sold on a recognized stock exchange is known as “official Quotation “.

THE STOCK EXCHANGES IN INDIA :

1). BOMBAY STOCK EXCHANGE (BSE) :

Bombay Stock Exchange Limited is the oldest stock exchange


in Asia with a rich heritage. Popularly known as "BSE", it was established
as "The Native Share & Stock Brokers Association" in 1875. It is the first
stock exchange in the country to obtain permanent recognition in 1956
from the Government of India under the Securities Contracts (Regulation)
Act, 1956.The Exchange's pivotal and pre-eminent role in the
development of the Indian capital market is widely recognized and its
index, SENSEX, is tracked worldwide.

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The Exchange has a nation-wide reach with a presence in 417
cities and towns of India. The systems and processes of the Exchange
are designed to safeguard market integrity and enhance transparency in
operations.

During the year 2004-2005, the trading volumes on the


Exchange showed robust growth. The Exchange provides an efficient and
transparent market for trading in equity, debt instruments and Derivatives.

2). NATIONAL STOCK EXCHANGE (NSE) :

The National Stock Exchange of India (NSE) was incorporated


in November 1992 as a tax-paying company. It is recognized under
Securities Contracts (Regulation) Act, 1956 in 1993 as a stock exchange.
In June 1994, it commenced operations in the Wholesale Debt Market
(WDM). In November, the same year, the Capital Market (Equities)
segment commenced operations and the Derivatives segment in June
2000.

NSE can handle up to 6 million trades per day in Capital


Market segment. In order to capitalize on in-house expertise in
technology, NSE set up a separate company, NSE.IT, in October 1999.
The Exchange currently manages its data centre operations, system and
database administration, design and development of in-house systems
and design and implementation of telecommunication solutions.

NSE is one of the largest interactive VSAT based stock


exchanges in the world. Today it supports more than 3000 VSATs. The
NSE- network is the largest private wide area network in the country and
the first extended C- Band VSAT network in the world. Currently more
than 9000 users are trading on the real time-online NSE application. .

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STOCK MARKET INDEX :

An index is benchmark for measuring the performance of fund


managers and is a comprehensive measure of market trends, intended for
investors who are concerned with general stock market price movements.
An Index comprises stocks that have large liquidity and market
capitalization. Each stock is given a weight age in the Index equivalent to
its market capitalization.

It has practical applicable too in the world of finance. Both BSE


& NSE has launched index futures based on the S & P, CNX Nifty and
BSE Sensex receptively. In global market for index services and their
applications is a multi- trillion rupees industry.

FUNCTIONS :

Stock exchange is established with the main purpose of


proving a market place for the members to deal in securities under
well laid down regulation and the protect the interest of the
investors. Thus, the functions are as follow.

Facilitate continuous, ready and open market for selling and


buying securities.
Provide quotation for share/ stock for facilitate trading and
marketability.
Extend liquidity to such stock as they are easily marketable security
traded.
Promote savings and investment in the economy by attracting funds
from the investors.
Allow companies to float their shares on the market.
Provide capital to profitable sectors.
Ensure safety and fair dealings to all.

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CHANGES IN STOCK EXCHANGES :

At the initial stages, there was floor trading i.e. people who want
to buy or sales where company together and transfer their shares and
securities required scrip’s as per shouting the price of shares for buy or
sell it.

(1). Demate form of trading :


All scrip’s are put in Demate for trading in the last few years. By
compulsory using of Demate from is increase the volume and increased in
liquidity.

(2). Electronics form of trading :


Globalization of stock exchange is now on way. The electronics
are has come to stock exchange nearly 100 % of all transaction are
executed through Electronics Media more and more brokers and sub-
brokers are setting into the internet.

(a). On – Line trading systems :


The SEBI have allowed On – Line trading and broker would
rush to the web site and trading through web site would increased. On the
Internet one would be able to trade instantly and transferantly from any
part of the world. In this method the investor comes to know immediately
the trade members, time, rate at which the trade room places.

(3). Electronics Fund Collection :


Under this systems. The broker set their funds directly credited
to their account and the clients can in then set their accounts credited or
debited for the net funds to flow address the country.

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ABOUT IPO/FPO

Initial Public Offering (IPO) :


Initial Public Offering (IPO) is when an unlisted company makes
either a fresh issue of securities or an offer for sale of its existing
securities or both for the first time to the public. This paves way for listing
and trading of the issuer’s securities.

Follow on Public Offering (FPO) :


A follow on public offering (FPO) is when an already listed
company makes either a fresh issue of securities to the public or an offer
for sale to the public, through an offer document. An offer for sale in such
scenario is allowed only if it is made to satisfy listing or continuous listing
obligations.

Book Building - About Book Building :

Book Building is basically a capital issuance process used in Initial Public


Offer (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 a
mechanism where, during the period for which the book for the IPO is
open, bids are collected from 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.

Book Building – Glossary :

Bid :
A bid is the demand for a security that can be entered by the
syndicate/sub-syndicate members in the system. The two main
components of a bid are the price and the quantity.

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Bidder :
The person who has placed a bid in the Book Building process.

Book Running Lead Manager :


A Lead Merchant Banker Who has been appointed by the
issuer company as the Book Runner Lead Manager. The name of the
Book Runner Lead Manager is mentioned in the offer document of the
issuer company.

Cut off Price :


In Book building issue, the issuer is required to indicate either
the price band or a floor price in the red herring prospectus. The actual
discovered issue price can be any price in the price band or any price
above the floor price. This issue price is called “Cut off price”. This is
decided by the issuer and Lead manager after considering the book and
investors’ appetite for the stock.

Floor Price :
The minimum offer price below which bids cannot be entered.
The Issuer Company in consultation with the Book Running Lead
Manager fixes the floor price.

Price Band :
The prospect may contain either the floor price for the securities or a
price band within which the investors can bid. The spread between the floor
price and cap of the price band shall not be more than 20 %. In other words, it
means that the cap should not be more than 120% of the floor price. The price
band can have a revision and such a revision in the price band shall be widely
disseminated by informing the stock exchanges, by issuing press release and

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also indicating the change on the relevant website and the terminals of the
syndicate members. In case the price band is revised, the bidding period shall

be extended for a further period of three days, subject to the total bidding
period not exceeding thirteen days. It is up to the company to decide on
the price or the price band, in consultation with Merchant Bankers.

Fixed Price offers :


An issuer company is allowed to freely price the issue. The
basis of issue price is disclosed in the offer document where the issuer
discloses in detail about the qualitative and quantitative factors justifying
the issue price. The Issuer company can mention a price band of 20%
(cap in the price band should not be more than 20% of the floor price) in
the Draft offer documents filed with SEBI and actual price can be
determined at a later date before filing of the final offer document with
SEBI.

Merchant Banker :
An entity registered under the Securities and Exchange Board
of India (Merchant Bankers) Regulations, 1999. Merchant Banker shall
decide the price of an issue.

Syndicate Members :
The Book Runner(s) may appoint those intermediaries who are
registered with the Board and who are permitted to carry on activity as an
‘Underwriter’ as syndicate members. The syndicate members are mainly
appointed to collect and entire the bid forms in a book built issue.

Order Book :
It is an 'electronic book' that shows the demand for the shares
of the company at various prices.

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The Process :

• The Issuer who is planning an IPO nominates a lead merchant


banker as a 'book runner'.
• The Issuer specifies the number of securities to be issued and the
price band for orders.
• The Issuer also appoints syndicate members with whom orders can
be placed by the investors.
• Investors place their order with a syndicate member who inputs the
orders into the 'electronic book'. This process is called 'bidding' and is similar
to open auction.
• A Book should remain open for a minimum of 5 days.
• Bids cannot be entered less than the floor price.
• Bids can be revised by the bidder before the issue closes.
• On the close of the book building period the 'book runner evaluates
the bids on the basis of the evaluation criteria which may include –

 Price Aggression
 Investor quality
 Earliness of bids, etc.

• The book runner and the company conclude the final price at which
it is willing to issue the stock and allocation of securities.
• Generally, the number of shares is fixed; the issue size gets frozen
based on the price per share discovered through the book building process.
• Allocation of securities is made to the successful bidders.
• Book Building is a good concept and represents a capital market
which is in the process of maturing.

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Corporate may raise capital in the primary market by way of an
initial public offer, rights issue or private placement. An Initial Public Offer
(IPO) is the selling of securities to the public in the primary market. This

Initial Public Offering can be made through the fixed price method, book
building method or a combination of both.

In case the issuer chooses to issue securities through the book


building route then as per SEBI guidelines, an issuer company can issue
securities in the following manner:

a. 100% of the net offer to the public through the book


building route.
b. 75% of the net offer to the public through the book building
process and 25% through the fixed price portion.

LISTING OF SECURITIES :

Listing means admission of the securities to dealings on a


recognized stock exchange through a formal agreement. The prime
objective of admission to dealings on the exchange is to provide liquidity
and marketability to securities, as also to provide a mechanism for
effective control and supervision of trading.

Minimum Listing Requirements for new companies :

The following revised eligibility criteria for listing of companies


on the Exchange, through Initial Public Offerings (IPOs) & Follow-on
Public Offerings (FPOs), effective August 1, 2006.

Eligibility Criteria for IPOs/FPOs :

Companies have been classified as large cap companies &


small cap companies. A large cap company is a company with a minimum

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issue size of Rs. 10 crores & market capitalization of not less than Rs. 25
crores. A small cap company is a company other than a large cap
company.

• In respect of Large Cap Companies :

• The minimum post-issue paid-up capital of the applicant


company (hereinafter referred to as "the Company") shall be Rs. 3 crores;
• The minimum issue size shall be Rs. 10 crores; and
• The minimum market capitalization of the Company shall be
Rs. 25 crores (market capitalization shall be calculated by multiplying the
post-issue paid-up number of equity shares with the issue price)

• In respect of Small Cap Companies :

• The minimum post-issue paid-up capital of the Company shall


be Rs. 3 crores; and

• The minimum issue size shall be Rs. 3 crores; and


• The minimum market capitalization of the Company shall be
Rs. 5 crores (market capitalization shall be calculated by multiplying the
post-issue paid-up number of equity shares with the issue price); and
• The minimum income/turnover of the Company should be Rs.
3 crores in each of the preceding three 12-months period; and
• The minimum number of public shareholders after the issue
shall be 1000.
• A due diligence study may be conducted by an independent
team of Chartered Accountants or Merchant Bankers appointed by the
Exchange, the cost of which will be borne by the company. The requirement
of a due diligence study may be waived if a financial institution or a
scheduled commercial bank has appraised the project in the preceding 12
months.

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• For all companies :

• In respect of the requirement of paid-up capital and market


capitalization, the issuers shall be required to include in the disclaimer
clause forming a part of the offer document that in the event of the market
capitalization (product of issue price and the post issue number of shares)
requirement of the Exchange not being met, the securities of the issuer
would not be listed on the Exchange
• The applicant, promoters and/or group companies, should not
be in default in compliance of the listing agreement.
• The above eligibility criteria would be in addition to the
conditions prescribed under SEBI (Disclosure and Investor Protection)
Guidelines, 2000.

Allotment of Securities :

As per the SEBI guidelines, the Basis of Allotment should be


completed with 15 days from the issue close date. As soon as the basis of
allotment is completed, within 2 working days the details of credit to demat
account / allotment advice and dispatch of refund order needs to be
completed. So an investor should know in about 15 days time from the
closure of issue, whether shares are allotted to him or not.

SEBI’s Role in an Issue :


Any company making a public issue or a listed company
making a rights issue of value of more than Rs.50 lakhs is required to file
a draft offer document with SEBI for its observations. The company can
proceed further on the issue only after getting observations from SEBI.
The validity period of SEBI’s observation letter is three months only i.e.
the company has to open its issue within three months period.

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Prospectus :
Any company floating public issues need to provide adequate
disclosure of information to public, as per guidelines issued by SEBI. This
disclosure includes information like the reason for raising the money, the
way money is proposed to be sent, the return expected on the money etc.
This information is in the form of “ PROSPECTUS” which also includes
information regarding the size of the issue, the current status of the
company, its equity capital , its current & past performance, the
promoters, the project, cost of the project, means of financing, product
and capacity etc. This helps investors to evaluate term and long term
prospectus of the company.

Lock – in Period :
For any issue of capital to the public, the minimum promoter’s
contribution is locked in for a period of 3 years. If the promoter’s
contribution exceeds the required minimum contribution, such excess is
locked in for a period of 1 year. Securities allotted on the firm allotted
basis are also locked in for a period of 1 year.

Promoter :
The promoter has been defined as a person or persons who
are in over-all control of the company, who are instrumental in the
formulation of a plan or programmed pursuant to which the securities are
offered to the public and those named in the prospectus as promoters(s).

Who is eligible for reservation?


In a book built issue allocation to Retail Individual Investors
(RIIs), Non Institutional Investors (NIIs) and Qualified Institutional
Buyers (QIBs).

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Retail Investor :
‘Retail individual investor’ means an investor who applies or
bids for securities of or for a value of not more than Rs.1, 00,000.

Non Institutional Investors & Qualified Institutional Buyers :


It means an investor who applies of bid for securities of or for a
value of more than Rs. 1, 00,000.

How many days is the issue open?


Subscription list for public issues shall be kept open for at least
3 working days and not more than 10 working days. In case of Book built
issues, the minimum and maximum period for which bidding will be open
is 3-7 working days by 3 days in case of a revision in the price band.

Change or Revise bid :


The investor can change or revise the quantity or price in the
bid using the form for changing/revising the bid that is available along with
the application form. However, the entire process of changing of revising
the bids shall be completed within the date of closure of the issue.

How long will it take after the issue for the shares to get listed ?
The listing on the stock exchanges is done within 7 days from
the finalization of the issue. Ideally, it would be around 3 weeks after the
closure of the book built issue. In case of fixed price issue, it would be
around 37 days after closure of the issue.

Intermediaries :
Merchant Bankers to the issue or Book Running Lead
Managers (BRLM), syndicate members, Registrars to the issue, Bankers

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to the issue, Auditors of the company, Underwriters to the issue,
Solicitors, etc. are the intermediaries to an issue. The issuer discloses the

addresses, telephone/fax numbers and email addresses of these


intermediaries. In addition to this, the issuer also discloses the details of
the compliance officer appointed by the company for the purpose of the
issue.

Role of a Registrar :
The Registrar finalizes the list of eligible allottees after deleting
the invalid applications and ensures that the corporate action for crediting
of shares to the demat accounts of the applicants is done and the
dispatch of refund orders to those applicable are sent. The Lead manager
coordinates with the Registrar to ensure follow up so that that the flow of
applications from collecting bank branches, processing of the applications
and other matters till the basis of allotment is finalized, dispatch security
certificates and refund orders completed and securities listed.

Role of Bankers :
Bankers to the issue, as the name suggests, carries out all the
activities of ensuring that the funds are collected and transferred to the
Escrow accounts. The Lead Merchant Banker shall ensure that Bankers
to the Issue are appointed in all the mandatory collection centers as
specified in DIP Guidelines. The LM also ensures follow-up with bankers
to the issue to get quick estimates of collection and advising the issuer
about closure of the issue, based on the correct figures.

E-IPO/FPO :
A company proposing to issue capital to public through the on-
line system of the stock exchange for offer of securities can do so if it
complies with the requirements. The appointment of various
intermediaries by the issuer includes a prerequisite that such

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members/registrars have the required facilities to accommodate such an
online issue process.

TERMINOLOGY.

Earning Per Share (EPS) :

EPS plays major role in investment decision. EPS is calculated


by taking the net earnings if the companies and dividing it by the
outstanding shares.

That is EPS = NPAT – Pref. Shares Dividend


--------------------------------------------------
No. of Equity Shares.

Example: If company A had earnings of Rs. 1000 crores and 100 shares
outstanding, then its EPS becomes 10 (Rs. 1000/100 = 10).
You should go buy company A with an EPS of Rs. 10. But it’s
again not advisable to make your investment decision based on only
single tool analysis.

Price Earnings Ratio ( P/E ratio) :

P/E Ratio is again one of the most important ratio on which


most of the traders and investors keep watch.
The P/E Ratio tells you whether the stock’s price is high or low
relative to its earnings. The high P/E suggests that investors are expecting
higher earnings growth in the future compared to companies with a lower
P/E. But, the P/E Ratio doesn’t tell us the whole story of the company.

That is P/E Ratio = Market Price per share


----------------------------------
EPS

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Example : A company with a share of Rs. 40 and an EPS of 8 would have
a P/E Ratio of 5 (Rs. 40/8 = 5).
The P/E Ratio gives an idea of what the market is willing to pay
for the companies earning. The higher the P/E the more the market is .

willing to pay for the companies earning. Some investors say that a High
P/E Ratio means the stock is over priced on the other side it also indicate
the market has high hopes for such company future growth and due to
which market is ready to pay high price.

On the other side, a low P/E of high growth stocks may indicate
that the market has ignored these stocks which are also known as value
stocks. Many investors try to finding low P/E Ratio stocks of high value
growth companies and make investments in such stocks which may prove
real diamonds in future.

Profitability Ratio :

Profitability and management efficiency of a firm is judged


mainly by the following profitability ratio:

Net Profit Ratio (%) = Net Profit


--------------- X 100
Net Sales

Market Capitalization :

The market value of a Quoted company, which is calculated by


multiplying its current share price (market price) by the no. of shares in
issue, is called as market capitalization. Example : Company A has 120
million shares in issue. The current market price is Rs. 100. The market
capitalization of co. A is Rs. 12000 million.

Market Capitalization = Market Price of Share X No.of Equity Share.

23
Match Your Dreams. With Our Vision

TOP 10 IPOs/FPOs OF YEAR 2007

Market Price Profit/


Sr. Name of Issue High Low Face
on Dated Loss
No. IPOs/FPOs Price 11/01/08 11/01/08 Value
11/01/08 11/01/08

Orbit
1 Corporation 110 920.5 736.82% 933.0 880.0 10
Ltd.
Everonn
2 Systems India 140 1010.55 621.82% 1050.0 991.8 10
Ltd.
MIC
3 Electronics 150 881.5 487.67% 895.0 798.0 10
Ltd.
Allied Digital
4 190 959.55 405.03% 1010.1 959.55 10
Services Ltd.

Gremarch
5 86 398.5 363.37% 421.95 398.5 10
Infrastructure
Global
6 Broadcast 250 1141.55 356.62% 1180.0 1125.0 10
News.
Pyramid
7 Saimira 100 451.45 351.45% 479.9 444.0 10
Theatre.
Allied
8 Computers 12 45.15 276.25% 50.0 45.0 10
International
Religare
9 Enterprices 185 642.35 247.22% 657.7 632.0 10
Ltd.

Vishal Retail
10 270 915.9 239.22% 940.0 874.0 10
Ltd.

24
Match Your Dreams. With Our Vision

TOP PERFORMING IPOs/FPOs


ISSUE INFORMATIONS

Sr. Name of Listing Issue Issue Price


Issue Size
No. IPOs/FPOs Date Open Close Band

Orbit
1 Corporation 12/04/2007 20/03/07 23/03/07 108 - 117 9,10,00,000
Ltd.
Everonn
2 Systems India 1/08/2007 5/07/07 11/07/07 125-140 5,00,00,000
Ltd.
MIC
3 30/05/2007 30/04/07 8/05/07 129-150 5,10,00,000
Electronics Ltd.
Allied Digital
4 Services Ltd. 25/07/2007 2/07/07 5/07/07 170-190 4,52,24,350

Gremarch
5 Infrastructure 11/04/2007 8/03/07 19/03/07 72-86 5,90,00,000

Global
6 Broadcast 8/02/2007 15/01/07 18/01/07 230-250 10,50,00,000
News.
Pyramid
7 Saimira 5/01/2007 11/12/06 18/12/06 88-100 8,44,40,000
Theatre.
Allied
8 Computers 23/11/2007 19/10/07 23/10/07 12 5,00,00,000
International
Religare
9 21/11/2007 29/10/07 1/11/07 160-185 7,57,61,020
Enterprices Ltd.

Vishal Retail
10 4/07/2007 11/06/07 13/6/07 230-270 11,00,00,000
Ltd.

25
Match Your Dreams. With Our Vision

TOP PERFORMING IPOs/FPOs


ISSUE INFORMATIONS

26
Match Your Dreams. With Our Vision

Sr.
Name of Market Listing
No. Lead Manager Registrar
IPOs/FPOs Lot @

Intime Spectrum
BSE & Edelweiss Capital
Orbit Corporation 50 Shares Registry Ltd.
1 NSE Ltd.
Limited.
BSE & Centrum Capital Cameo Corporates
Everonn Systems 50 Shares
2 NSE Ltd Services Ltd.
India Limited.
Intime Spectrum
BSE & Edelweiss Capital
MIC Electronics 45 Shares Registry Ltd.
3 Limited.
NSE Ltd.
Intime Spectrum
BSE & Anand Rathi
Allied digital 35 Shares Registry Ltd.
4 NSE Securities Ltd.
Services Limited.
Intime Spectrum
BSE & RR Financial
Grmarch 70 Shares Registry Ltd.
5 Infrastructure.
NSE Consultants Ltd.
Intime Spectrum
BSE & ICICI & Kotak
Global Broadcast 25 Shares Registry Ltd.
6 NSE Mahindra Ltd.
News.
Canara Bank &
Cameo Corporates
BSE & Keynote
Pyramid Saimira 60 Shares Services Ltd.
7 NSE Corporate
Theatre.
Services Ltd.

Allied Computer CIL Securities Bigshare Services


12 Shares BSE
8 International Ltd. Pvt. Ltd.
Ltd.
ENAM Financial
Consultants
Religare BSE & Pvt.Ltd & Karvy
35 Shares
9 Enterprises NSE Citigroup Global Comutershare Pvt.
Limited. Market India Pvt. Ltd.
Ltd.
ENAM Financial Intime Spectrum
BSE &
Vishal Retail 25 Shares Consultants Registry Ltd.
10 Limited.
NSE
Pvt.Ltd.

* INTRODUCTION ABOUT COMPANY. *

27
Match Your Dreams. With Our Vision

1). ORBIT CORPORATION LTD.:-

Orbit Corporation Limited is a Mumbai based real estate


construction and development company with primary focus on
redevelopment of existing properties. Orbit specializes in developing,
designing and managing “Build to suit” high-end residential and
commercial properties.

Orbit Corporation Limited also engages in real estate activities


through Orbit Constructions & Realtors Private Limited, Orbit Buildcon &
Realty Private Limited and Orbit Housing Private Limited.

The director of the company is

Objects of the Issue:

The objects of the Issue are to achieve the benefits of listing on the
Stock Exchanges and to raise capital to

1. Advances towards acquisition cost of new projects that we


propose to develop/ redevelop.
2. Project development cost of the existing projects.
3. Investment in wholly owned subsidiaries.

MARKET CHART OF ORBIT CORPORATION LTD.

28
Match Your Dreams. With Our Vision
Price Data on Listing Day 12- 04- 2007

Open Price Rs. 113.00


High Price Rs. 137.60
Low Price Rs. 110.15
Close Price Rs. 128.20
Volume 14577737

Price Data As On 11-01-2008


Open Price Rs. 930.00
High Price Rs. 933.00
Low Price Rs. 880.00
Close Price Rs. 920.50
Volume 85216

Market Chart of Scrip :

O rbit C orporatio n Ltd.


1200

1000

800
Value (Rs.)

600

400

200

0
7

07
7

7
07

07

07

07

08
r -0

l-0

t -0
-0

v-
g-

n-
n-

p-

c-
ay

Ju
Ap

Oc

No
Au
Ju

De

Ja
Se
M

M o n th s

FINANCIAL HIGHLIGHTS
EPS information: (Quarterly)

29
Match Your Dreams. With Our Vision
Months Value (Rs.)
Mar-2007 2.86
Jun-2007 3.29 P/E Ratio Information
Sep-2007 3.8
Dec-2007 5.41 (Quarterly)
Months P/E Ratio
Jun-2007 82.89
Sep-2007 137.63
Dec-2007 173.75

Note: (March-2007 Data is not available because, it is listed on 12/04/2007)


Net Sales Information (Quarterly)
Months Value (Rs. in Cr.)
Mar-2007 30.89
Jun-2007 45.19
Sep-2007 13.11
Dec-2007 72.56

Net Profit Information (Quarterly)


Months Value (Rs. in Cr.)
Mar-2007 7.77
Jun-2007 11.93
Sep-2007 1.85
Dec-2007 19.62

Profitability = Net Profit


----------------- X 100
Net Sales

= 19.62
---------- X 100
72.56

= 27.04 %

Market Capitalization = 3338.65 Rs. in Cr.

ORBIT CORPORATIOM LTD.

30
Match Your Dreams. With Our Vision
EP S C H AR T P/E R ATIO C HAR T
173.75
6 5.41 180
160 137.63
5
VALUE IN (RS.) 3.80 140
4 3.29 120
2.86 82.89

VALUE
100
3
80
2 60
40
1
20
0 0
M a r-07 Jun-07 Se p-07 De c-07 J un-07 Se p-07 Dec-07
M ONTHS MONTHS

NET SALES CH ART NET PROFIT CHART


80 72.56 19.62
20
70 18
60 16
11.93
RS. IN CRORES

45.19 14
RS.IN CRORES

50 12
40 30.89 10 7.77
30 8
13.11 6
20 1.85
4
10 2
0 0
M a r-07 Jun-07 Se p-07 De c-07 M a r-07 Jun-07 S e p-07 De c-07
M ONTHS MONTHS

From the above charts of EPS and P/E Ratio it can be seen
that the EPS as well as the P/E Ratio is showing an increasing trend
continuously. The Profitability of the company is 27.04% and the EPS is
Rs. 5.41. the P/E Ratio is 173.75. So, by seeing the Profitability of the
company the investment can be done. The increasing P/E Ratio also
states that the it will give good returns in the future if the investment is
done in this company.

31
Match Your Dreams. With Our Vision

2). EVERONN SYSTEMS INDIA LIMITED :-

Everonn Systems India Limited is Knowledge Management,


Education and Training Company. Everonn provides its services in
Creating Educational and Training Content, Designing and executing
large learning initiatives and setting up the needed infrastructure for
learning and training.

Everonn has Virtual and Interactive Learning classroom networks


across India. Everonn does business through 2 strong Business Units,
Institutional Education and Infrastructure Services (IE & IS) and Virtual
and Technology Enabled Learning Solutions (ViTELS).

Objects of the Issue:


The objects of the Issue are to achieve the benefits of
listing on the Stock Exchanges & to raise capital for,

1. Capital expenditure for Institutional Education and IT


infrastructure Services,
2. Capital expenditure for Virtual and Tech Enabled learning
solutions,
3. Working Capital Requirements,
4. Brand Building exercise for the Company,
5. Funding the proposed Mergers & Acquisitions activity, and
6. To invest in the proposed Subsidiary to Retail Educational
aids, tools and other products.

32
Match Your Dreams. With Our Vision

MARKET CHART OF EVERONN SYSTEMS INDIA LTD.

Price Data on Listing Day 01- 08- 2007


Open Price Rs. 245.00
High Price Rs. 560.00
Low Price Rs. 245.00
Close Price Rs. 478.45
Volume 7177641

Price Data As On 11- 01- 2008


Open Price Rs. 1037.00
High Price Rs. 1050.00
Low Price Rs. 991.80
Close Price Rs. 1010.55
Volume 325669

Market Chart of Scrip :

Everonn systems India Ltd.


1,400.00

1,200.00

1,000.00
Value ( Rs.)

800.00
600.00

400.00

200.00

0.00
07

07

08
07

07
7

7
07

07

07

07

07

-0

-0

v-

v-

n-
c-

c-
g-
g-

g-

p-

p-

ct

ct
No

No

De

De

Ja
Au

Au
Au

Se

Se

Months

FINANCIAL HIGHLIGHTS
33
Match Your Dreams. With Our Vision
EPS information: (Quarterly)
Months Value (Rs.)
Mar-2007 3.97
Jun-2007 0.44
Sep-2007 1.87
Dec-2007 2.92

P/E Ratio Information (Quarterly)


Months P/E Ratio
Sep-2007 354.17
Dec-2007 378.37

Note: (March-2007 & June-2007 Data is not available because, it is listed on


1/08/2007)

Net Sales Information (Quarterly)


Months Value ( Rs. in Cr.)
Mar-2007 14.35
Jun-2007 8.86 Net Profit
Sep-2007 22.74
Dec-2007 29.14 Information
(Quarterly)
Months Value (Rs. in Cr.)
Mar-2007 4.08
Jun-2007 0.61
Sep-2007 2.59
Dec-2007 4.05

Profitability = Net Profit


----------------- X 100
Net Sales

= 4.05
---------- X 100
29.14

= 13.90 %

Market Capitalization = 1399.61 Rs. in Cr.

EVERONN SYSTEMS INDIA LTD.

34
Match Your Dreams. With Our Vision
EPS CH ART P/E RATIO CHART
3.97
4 378.37
3.5 380
2.92
375
3
370
VALUE IN (RS.)
2.5 1.87 365
354.17

VALUE
2 360
1.5 355
1 350
0.44
345
0.5
340
0 Sep-07 De c-07
Ma r-07 Jun-07 Se p-07 De c-07
MONTHS
MONTHS

N E T S AL E S C H AR T N ET PR OFIT C H AR T
29.14
30 4.5 4.08 4.05
25 22.74 4
3.5
2.59
RS. IN CRORES

20
RS. IN CRORES

14.35 3
15 2.5
8.86 2
10 1.5
1 0.61
5
0.5
0 0
M a r-07 J u n -07Se p -0 7D e c -0 7 Ma r-07 Jun-07 Se p-07 De c-07
M O N THS M ONTHS

The Profitability of this company is 13.90 % and the EPS is Rs.


2.92, the P/E Ratio is 378.37. Though all the charts are showing
decreasing price in the month of June but after June it is continuously
increasing which is good for the investors to invest.

35
Match Your Dreams. With Our Vision

3). MIC ELECTRONICS LIMITED :

Incorporated in 1988, MIC Electronics Limited is a global leader


in the design, development & manufacturing of LED Video Displays,
high-end Electronic and Telecommunication equipment and development
of Telecom software.

Business Lines
MIC's business is divided broadly into three parts:

• Media Group, primarily responsible for the development,


production and sales of video displays, text, and graphic animation displays
and display services including lease/rental of LED video walls etc.
• InfoTech Group provides telecom software solutions in areas of
Telecom Network Management, Telecom Switch Access and Computer
Telephony domains.

Objects of the Issue:

1. Setting up additional facility for manufacture of LED Video


Modules at Cherlapally, Hyderabad and Roorkee;
2. Investment in LED video display systems to be used for
rental/leasing business;
3. Investment on Design & Development of 3D Stereoscopic
Displays; & Market Development – Domestic & Overseas;

36
Match Your Dreams. With Our Vision
MARKET CHART OF MIC ELECTRONICS LTD.

Price Data on Listing Day 30-05-2007


Open Price Rs. 210.25
High Price Rs. 367.80
Low Price Rs. 210.25
Close Price Rs. 335.65
Volume 14524591

Price Data As On 11-01-2008


Open Price Rs. 851.00
High Price Rs. 895.00
Low Price Rs. 798.00
Close Price Rs. 881.50
Volume 18585

Market Chart of Scrip :

M IC Electronics Ltd.
1200
1000
800
Value (Rs.)

600
400
200
0
Ju 7
Au 07

No 07
De 07

Ja 8
08
De 7
Ja 7
O 7
O 7
No 7
Ju 7

Au 07
Se 07
Ju 7

Ju 7

Se 7

O 7
l- 0

0
0
0
-0
-0
-0
-0

0
0

0
0
l-

v-
v-

n-
n-
n-
n-

c-
c-
g-
g-
p-
p-
ct
ct
ct
ay
M

Months

FINANCIAL HIGHLIGHTS
EPS information: (Quarterly)

37
Match Your Dreams. With Our Vision
Months Value (Rs.)
Mar-2007 3.61
Jun-2007 8.98
Sep-2007 4.89
Dec-2007 6.81

P/E Ratio Information (Quarterly)


Months P/E Ratio
Jun-2007 41.96
Sep-2007 108.10
Dec-2007 147.28 Note: (March-2007 Data is not
available because, it is listed on 30/05/2007)

Net Sales Information (Quarterly)


Months Value (Rs. in Cr.)
Mar-2007 59.47
Jun-2007 114.45
Sep-2007 75.43
Dec-2007 78.24

Net Profit Information (Quarterly)


Months Value (Rs. in Cr.)
Mar-2007 3.23
Jun-2007 18.08
Sep-2007 9.84
Dec-2007 13.70

Profitability = Net Profit


----------------- X 100
Net Sales

= 13.70
---------- X 100
78.24

= 17.51 %
Market Capitalization = 1774.46 Rs. in Cr.

MIC ELECTRONICS LTD.

38
Match Your Dreams. With Our Vision
E PS C H AR T P/E R ATIO C H AR T
8.98
9
160
147.28
8
6.81 140
7 108.1
120
VALUE IN (RS.)

6 4.89
5 100
3.61

VALUE
4 80
60 41.96
3
2 40
1 20
0 0
Ma r-07 Jun-07 Se p-07 De c-07 Jun-07 Se p-07 De c-07
MONTHS MONTHS

NET SALES CHART N ET PR OFIT C H ART


120 114.45 18.08
20
18
100 78.24 13.7
75.43 16
RS. IN CRORES

14
RS. IN CRORES
80
59.47 12 9.84
60 10
8
40
6 3.23
20 4
2
0 0
Mar-07 Jun-07 Sep-07 De c-07 Ma r-07 Jun-07 Se p-07 Dec-07
MONTHS MONTHS

The Profitability of this company is 17.51 % and the EPS is Rs.


6.81. The P/E Ratio is 147.28; According to the ranks given it stands 5th
which can be considered as moderate. The investment here can be done
on the basis of EPS which is much higher or attractive for the investment.

39
Match Your Dreams. With Our Vision

4). ALLIED DIGITAL SERVICE :

Incorporated in 1995, Allied Digital Services Limited IT


Infrastructure management and Technical Support Services
outsourcing Company. ADSL deliver strategic, personalized, full-service
Technical Support services solutions to its global, large and medium
enterprises and service providers.

Allied Digital has its unique direct presence at 92 locations in 25


states catering to more than 450 cities countrywide through its human
resource of more than 1050 personnel. Its offerings address various
business verticals – BFSI, Telecom, Retail, Aviation, Manufacturing,
Energy, e-Governance and Hospitality to name a few. Company was
awarded 'Most Comprehensive Solutions Provider' by Data Quest (DQ)
this year.

Objects of the Issue:


The objects of the Issue are to achieve the benefits of listing on the
Stock Exchanges & to raise capital for

1. Setting up of a new Corporate Office,


2. Upgradation and Expansion of Existing
Infrastructure,
3. Setting up of new Strategic Business Units,
4. Financing Working Capital Requirements.

40
Match Your Dreams. With Our Vision

MARKET CHART OF ALLIED DIGITAL SERVICES LTD.

Price Data on Listing Day 25- 07- 2007


Open Price Rs. 332.50
High Price Rs. 370.50
Low Price Rs. 308.40
Close Price Rs. 330.15
Volume 11231528

Price Data As On 11-01-2008


Open Price Rs. 1010.10
High Price Rs. 1010.10
Low Price Rs. 959.55
Close Price Rs. 959.55
Volume 35607

Market Chart of Scrip :

41
Match Your Dreams. With Our Vision
Allied Digital Services Ltd.
1200

1000

Value (Rs.)
800

600

400

200

N 7

D 7
7
A 7

7
7

07

07

D 7
7

08
-0

-0
-0

-0

-0

-0

-0
l-0

-0

-0

n-
p-

p-

ov

ov
ug
ug

ct

ct

ct

ec

ec
Ju

Ja
Se

Se

N
A

M onths

FINANCIAL HIGHLIGHTS
EPS information: (Quarterly)
Months Value (Rs.)
Mar-2007 6.05
Jun-2007 7.09
Sep-2007 5.89
Dec-2007 10.18

P/E Ratio Information (Quarterly)


Months P/E Ratio
Sep-2007 64.02
Dec-2007 80.16

Note: (March-2007 & June-2007 Data is not available because, it is listed on


25/07/2007)

Net Sales Information (Quarterly)


Months Value (Rs. in Cr.)
Mar-2007 52.01
Jun-2007 65.15
Sep-2007 70.81
Dec-2007 79.29

Net Profit Information (Quarterly)


Months Value (Rs. in Cr.)
Mar-2007 7.64
Jun-2007 9.05
Sep-2007 10.18
Dec-2007 12.10

42
Match Your Dreams. With Our Vision
Profitability = Net Profit
----------------- X 100
Net Sales

= 12.10
---------- X 100
79.29

= 15.26 %

Market Capitalization = 1659.06 Rs. in Cr.

ALLIED DIGITAL SERVICES LTD.

EP S C H AR T P /E R ATIO C H AR T
80.16
12 10.18 90
10 80 64.02
70
7.09
VALUE IN (RS.)

8 6.05 60
5.89
VALUE

50
6
40
4 30
20
2 10
0 0
M a r-07 Jun -07 S e p-07 De c-07 Se p-07 De c-07
M O NTHS M ONTHS

NET SALES CH ART N ET PR OFIT C H AR T


79.29 15
80 70.81
70 65.15 12.1
10.18
60 52.01 10 9.05
RS. IN CRORES
RS. IN CRORES

50 7.64
40
30 5
20
10
0 0
Ma r-07 Jun-07 Sep-07 De c-07 M a r-07 Jun-07 Se p -07 De c-07
MONTHS M ONTHS

43
Match Your Dreams. With Our Vision
The Profitability of this company is 15.26 % and the EPS is Rs.
10.18 which is the highest among the top 10 companies. The Price
Earning Ratio is 80.16 which can be considered as less risky for the
investors to invest.

5). GREMARCH INFRASTRUCTURE :

Gremach Infrastructure Equipments & Projects Limited is in the


business of providing rental of construction /earthmoving machineries
to medium / large construction companies who are engaged in the
business of constructing/building of roads, airports, power projects,
institutional & industrial complexes, multiplexes and residential
buildings and other related infrastructural activities chiefly catering to
Public Sector undertakings, private sector, and various national &
international government aided projects.

In addition to renting Gremach owned equipments, Gremach also


hire equipments owned by other parties and rent to our own clients. In the
past over 65% of Gremach total rental incomes are derived from
equipments, which are exclusively owned by third parties.

Objects of the Issue:

The objects of the Issue are to achieve the benefits of listing on the
Stock Exchanges and to raise capital to Acquire Ports, Mining and other
Road Construction Equipments.

44
Match Your Dreams. With Our Vision

MARKET CHART OF Gremarch Infrastructure Ltd.

Price Data on Listing Day 11-04 -2007


Open Price Rs. 92.00
High Price Rs. 100.00
Low Price Rs. 80.70
Close Price Rs. 88.95
Volume 10344625

Price Data As On 11-01-2008


Open Price Rs. 420.00
High Price Rs. 421.95
Low Price Rs. 398.50
Close Price Rs. 398.50
Volume 42556

Market Chart of Scrip :

45
Match Your Dreams. With Our Vision
Gremarch Infrastructure
600

500

400

Value (Rs.)
300

200

100

7
7
7

7
07

07

08
-0
-0

-0

-0

-0
l-0

-0
n-

n-
p-
ay

ov
pr

ug

ct

ec
Ju
Ju

Ja
Se

O
A

N
M

D
Months

FINANCIAL HIGHLIGHTS
EPS information: (Quarterly)
Months Value (Rs.)
Mar-2007 4.97
Jun-2007 2.66
Sep-2007 6.01
Dec-2007 6.16

P/E Ratio Information (Quarterly)


Months P/E Ratio
Jun-2007 71.88
Sep-2007 44.68
Dec-2007 57.02

Note: (March-2007 Data is not available because, it is listed on 11/04/2007)

Net Sales Information (Quarterly)


Months Value (Rs. in Cr.)
Mar-2007 30.21
Jun-2007 34.74
Sep-2007 54.33
Dec-2007 55.16

Net Profit Information (Quarterly)


Months Value (Rs. in Cr.)
Mar-2007 4.16
Jun-2007 4.06
Sep-2007 9.14

46
Match Your Dreams. With Our Vision
Dec-2007 9.38

Profitability = Net Profit


----------------- X 100
Net Sales

= 9.38
---------- X 100
55.16

= 17.00 %
Market Capitalization = 606.517 Rs. in Cr.

GREMARCH INFRASTRUCTURE LTD.

E P S C H AR T P/E R ATIO C H AR T
7 6.01 6.16 71.88
80
6 4.97 70 57.02
5 60
VALUE IN (RS.)

44.68
4 50
VALUE

3 2.66 40
30
2
20
1 10
0 0
Ma r-07 Jun-07 S e p-07 De c-07 Jun-07 Se p-07 Dec-07
M ONTHS MONTHS

N E T SALES C H AR T N ET P ROFIT C HART


60 54.33 55.16 10 9.14 9.38

50 8
RS. IN CRORES
RS. IN CRORES

40 34.74
30.21 6
4.16 4.06
30
4
20

10 2
0 0
Ma r-07 Jun-07 S e p-07 De c-07 Ma r-07 Jun-07 Se p-07 De c-07
MO NTHS MONTHS

47
Match Your Dreams. With Our Vision

The Profitability of this company is 17.00 % and the EPS is Rs.


6.16. The P/E Ratio is 57.02, this P/E Ratio states that the investment can
be done in the company means it posses the least risk for the investment.

6). GLOBAL BROADCAST NEWS:

Global Broadcast News Limited (GBN) operates one of India’s


leading 24-hour English language news and current affairs channel,
‘CNN-IBN’. CNN-IBN was launched in December, 2005 and has
consistently been ranked as India’s No. 2 English language news channel.

Global Broadcast News Limited has also share subscription cum


shareholders agreement with the Gupta family, BK Fincap Private Limited
and others and has acquired significant equity shareholding in BK Fincap
Private Limited which is the holding company of Jagran TV Private
Limited, which owns Channel 7, a 24-hour Hindi language news and
current affairs channel.

GBN is also part of the TV 18 group, which owns and operates


some of India’s leading business channels and internet portals such as
CNBC-TV18, Awaaz, South Asia World, www.moneycontrol.com and
www.commoditiescontrol.com, etc.

Objects of the Issue:

48
Match Your Dreams. With Our Vision
The Company intends to use the Net Proceeds for the following
purposes:

1. Further investment for expansion into Hindi news genre;


2. Repayment of a loan of our company;
3. General corporate purposes; and
4. Avail of the benefits of listing of our Equity Shares on the
Stock Exchanges.

MARKET CHART OF Global Broadcast News Ltd.

Price Data on Listing Day 08- 02- 2007


Open Price Rs. 417.10
High Price Rs. 524.00
Low Price Rs. 381.25
Close Price Rs. 510.10
Volume 13080245.

Price Data As On 11- 01- 2008


Open Price Rs. 1169.00
High Price Rs. 1180.00
Low Price Rs. 1125.00
Close Price Rs. 1141.55
Volume 2990.

Market Chart of Scrip :

49
Match Your Dreams. With Our Vision
Global Broadcast News
1400
1200
1000

Value ( Rs.)
800
600
400
200
0

07
07

07

De 7
7

Au 7

N 7

08
M 7
7

07
-0
-0

l-0

-0
-0
0
-0

g-
r-

n-

c-

n-
b-

ov
ep

ct
ay
ar

Ju
Ap

Ju

Ja
Fe

O
M

S
Months

FINANCIAL HIGHLIGHTS
EPS information: (Quarterly)
Months Value (Rs.)
Mar-2007 1.04
Jun-2007 - 1.31
Sep-2007 - 2.38
Dec-2007 - 3.1

P/E Ratio Information (Quarterly)


Months P/E Ratio
Mar-2007 514.13
Jun-2007 - 688.66
Sep-2007 - 401.32
Dec-2007 - 378.06

Net Sales Information (Quarterly)


Months Value (Rs. in Cr.)
Mar-2007 27.98
Jun-2007 22.00
Sep-2007 25.57
Dec-2007 23.50

Net Profit Information (Quarterly)


Months Value (Rs. in Cr.)
Mar-2007 2.78
Jun-2007 - 3.51
Sep-2007 - 6.36
Dec-2007 - 8.29

50
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Profitability = Net Profit
----------------- X 100
Net Sales

= - 8.29
---------- X 100
23.50

= - 35.28 %

Market Capitalization = 3051.36 Rs. in Cr.

GLOBAL BROADCAST NEWS.

EPS CH ART P/E RATIO CH AR T


1.04 600 514.13
1.5
1 400
0.5
200
0
VALUR IN (RS.)

-0.5 0
VALUE

-1
-200
-1.5 -1.31
-2 -400 -378.06
-2.5 -2.38 -401.32
-600
-3 -3.1 -688.66
-3.5 -800
M a r-07 Jun-07 Se p-07 De c-07 Ma r-07 Jun-07 Se p-07 De c-07
M ONTHS MONTHS

N E T SALES C H AR T N ET PROFIT CH ART


30 27.98 4 2.78
25.57
23.5
25 22.00 2
0
RS. IN CRORES
RS. IN CRORES

20
-2
15
-4 -3.51
10
-6
5 -8 -6.36
-8.29
0 -10
Ma r-07 Jun-07 S e p-07 De c-07 M a r-07 Jun-07 S e p-07 De c-07
MONTHS M ONTHS

51
Match Your Dreams. With Our Vision
The Profitability of this company is -35.28 % and the EPS is
Rs. -3.1. The P/E Ratio is -378.06. From the above information it can be
concluded that it is not advisable to invest in this because all the three that
is the P/E Ratio , EPS as well as the Profitability is in negative. So, it
proves to be very risky to do such investment.

7). PYRAMID SAIMIRA THEATRE LTD :

Pyramid Saimira Theatre Limited (PSTL) is currently India’s


largest Theatre Chain Company, operating over 136 screens. PSTL is
also involved in file production and have produced around 10 films.

PSTL’s Digital theatres also function as delivery medium for other


entertainment content, as well as educational centers including video
conferencing, virtual class rooms etc. One can see Cricket match live,
have refresher course, say medical entrance exam in these theatres.

Objects of the Issue:

1. To create a theater chain having a tie up with theaters


and multiplexes on long lease and invest in infrastructure up-
gradation of the theatres.
2. To convert theaters in to digital exhibition system by
installing Digital Projectors, Servers, VSAT terminals and such
other audio & video equipments as needed.
3. To invest in a central network operating system control
center which will enable Service Provisioning for and including
Convert Conversion, Transmission, Rights management,

52
Match Your Dreams. With Our Vision
Theater management & Networked collection / revenue
management.

MARKET CHART OF Pyramid Saimira Theatre Ltd.

Price Data on Listing Day 05- 01- 2007


Open Price Rs. 135.00
High Price Rs. 163.85
Low Price Rs. 125.00
Close Price Rs. 158.20
Volume 16969613

Price Data As On 11- 01- 2008


Open Price Rs. 475.00
High Price Rs. 479.90
Low Price Rs. 444.00
Close Price Rs. 451.45
Volume 55480

Market Chart of Scrip :

53
Match Your Dreams. With Our Vision
Pyramid Saimira T heatre
600

500
400

Value ( Rs.)
300

200

100

M 07

Se 7
07

Au 7

No 7

De 7
Fe 7

08
M 7

Ap 7

Ju 7

07
07
0

-0
l-0

0
0

-0
0
-0
r-

g-

v-
n-

p-

c-
n-

n-
b-

ct
ay
ar

Ju
Ja

Ja
O
M onths

FINANCIAL HIGHLIGHTS
EPS information: (Quarterly)
Months Value (Rs.)
Mar-2007 2.06
Jun-2007 5.66
Sep-2007 5.34
Dec-2007 3.55

P/E Ratio Information (Quarterly)


Months P/E Ratio
Mar-2007 120.95
Jun-2007 59.59
Sep-2007 64.98
Dec-2007 141.21

Net Sales Information (Quarterly)


Months Value (Rs. in Cr.)
Mar-2007 67.57
Jun-2007 122.71
Sep-2007 144.19
Dec-2007 231.42

Net Profit Information (Quarterly)


Months Value (Rs. in Cr.)
Mar-2007 5.84
Jun-2007 16.01
Sep-2007 15.11
Dec-2007 29.87

Profitability = Net Profit


----------------- X 100

54
Match Your Dreams. With Our Vision
Net Sales

= 29.87
------------- X 100
231.42

= 12.91 %

Market Capitalization = 1276.70 Rs. in Cr.

55
Match Your Dreams. With Our Vision

PYRAMID SAIMIRA THEATRE

EPS CHART P/E RATIO C H ART


5.66 5.34 160
6 141.21
130.95
140
5
120
3.55
VALUE IN (RS.)

4 100
59.59 64.98

VALUE
3 80
2.06 `
60
2
40
1 20
0 0
Mar-07 Jun-07 Sep-07 Dec-07 M a r-07 Jun-07 S e p-07 De c-07
MONTHS M ONTHS

N E T SALES C H AR T NET PR OFIT CH AR T


250 231.42 30
29.87

200 25
144.19
RS. IN CRORES

RS. IN CRORES

20 16.01 15.11
150 122.71
15
100 67.57
10 5.84
50
5
0 0
M a r-07 Jun-07 S e p-07 De c-07 Ma r-07 Jun-07 Se p-07 De c-07
M ONTHS M ONTHS

The Profitability of this company is 29.12 % and the EPS is Rs.


3.55. Also the P/E Ratio of the company is 141.21. So, by looking at the
Profitability as well as the P/E Ratio and the EPS it can be stated that the
company will not given higher returns but moderate returns will be given
by the company.

56
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8). ALLIED COMPUTERS INTERNATIONAL LTD :


Incorporated in 2002, Allied Computers International (Asia) Ltd is in
the business of assembling and marketing of laptop computers. ACi
undertakes services and maintenance contracts for all brands of laptop
computers.

ACi has two divisions: assembling of laptop/notebook computers,


and chip level repairs of motherboard, screen, digital versatile disc (DVD)
and hardware of all brands of laptops. In addition, ACi has a software
division that is developing software related to hardware used to perform
reverse engineering and fault diagnosis of populated printed circuit boards
(PCBs), together with explorations of security-enhanced applications by
use of biometric technology.

Objects of the Issue:


The objects of the Issue are to achieve the benefits of listing on the
Stock Exchanges & to raise capital

1. To Set up Global Laptop, TFT and other equipment Service Centre at


Vasai, Dist. Thane, Mumbai.

57
Match Your Dreams. With Our Vision

MARKET CHART OF Allied Computer International Ltd.

Price Data on Listing Day 23 -11- 2007


Open Price Rs. 21.00
High Price Rs. 41.25
Low Price Rs. 21.00
Close Price Rs. 37.70
Volume 27422665

Price Data As On 11- 01- 2008


Open Price Rs. 49.00
High Price Rs. 50.00
Low Price Rs. 45.00
Close Price Rs. 45.15
Volume 314588

Market Chart of Scrip :

Allied Computers International Ltd.


80
70
60
Value ( Rs.)

50
40
30
20
10
0
07

07

07

07

07

07

08

08
-

n-

n-
-

-
ov

ov

ec

ec

ec

ec

Ja

Ja
N

Months

Note: Financial Data is not Available.

58
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9). RELIGARE ENTERPRISES LTD :

Religare Enterprises Limited is Ranbaxy Laboratories Limited


promoted financial product and service provider company.Religare
provide its service in three different segments including Retail, Wealth
management and the Institutional spectrum. It offers wide range of
services including equities, commodities, insurance broking, wealth
advisory, portfolio management services, personal finance services,
Investment banking and institutional broking services. Religare’s retail
network spreads across more than 900 locations across more than 300
cities and towns in India.Religare businesses are operated through its 10
subsidiaries. Religare major business includes:

• Religare Securities Limited (RSL) - Stock Broker.


• Religare Finance Limited (RFL) - Involve in personal credit (such as
loans against shares (LAS), and personal loans), distribution of mutual
funds, wealth management, IPO financing, and corporate finance services.
• Religare Commodities Limited (RCL) - Commodity Broker.
• Religare Insurance Broking Limited (RIBL)-Insurance broker to
distribute products and services of life insurance companies, non life
insurance companies and re-insurance businesses.
• People who wonder where Religare word came from, it's a Latin word
meaning 'to bind together'.

Objects of the Issue:

The objects of the Issue are to achieve the benefits of listing on the
Stock Exchanges & to raise capital

1. To expand domestic operations and network of branches;


2. To fund retail finance business and to expand financing
activity.

59
Match Your Dreams. With Our Vision

MARKET CHART OF Reliagare Enterprises Ltd.

Price Data on Listing Day 21-11-2007


Open Price Rs. 323.75
High Price Rs. 600.00
Low Price Rs. 323.75
Close Price Rs. 521.70
Volume 11198090

Price Data As On 11-01-2008


Open Price Rs. 654.00
High Price Rs. 657.70
Low Price Rs. 632.00
Close Price Rs. 642.35
Volume 55480

Market Chart of Scrip :

Religare Enterprices Limited


800
700
600
Value ( Rs.)

500
400
300
200
100
0
7

8
-0

-0

-0
-0

-0

-0

-0

-0
ov

ov

ec

ec

ec

ec

n
Ja

Ja
N

Months

60
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FINANCIAL HIGHLIGHTS

EPS information: (Quarterly)


Months Value (Rs.)
Dec-2007 0.29

P/E Ratio Information (Quarterly)


Months P/E Ratio
Dec-2007 404.17

Note: (March-2007, Jun-2007& Sep-2007 Data is not available


because, it is listed on 21/11/2007)

Net Sales Information (Quarterly)


Months Value (Rs. in Cr.)
Dec-2007 5.19

Net Profit Information ( Quarterly)


Months Value (Rs. in Cr.)
Dec-2007 2.24

Profitability = Net Profit


----------------- X 100
Net Sales

= 2.24
---------- X 100
5.19

= 43.16 %

Market Capitalization = 4875.44 Rs. in Cr.

RELIAGARE ENTERPRISES LTD.


61
Match Your Dreams. With Our Vision
EP S C H AR T P/E R ATIO
0.29
404.17
0.3 500
0.25
400
VALUE IN (RS.)

0.2
300

VALUE
0.15
200
0.1
0.05 100

0 0
DEC -07 De c-07
M ONTH M ONT H

N ET S ALES C H AR T NET PROFIT CHART

5.19 2.24
6 2.5
5 RS. IN CRORES
2
RS. IN CRORES

4
1.5
3
1
2
1 0.5
0 0
DEC-07 DEC-07
MONTHS MONTHS

The above company has been listed in November 2007. So,


not much data is available as well as nothing can be inferred from the
above charts.

62
Match Your Dreams. With Our Vision

10). VISHAL RETAIL LTD :

Incorporated in 1986, Vishal Retail Limited is among the leading


retail houses in India based in Delhi. Vishal Retail has around 51
showrooms in 39 cities in India. Vishal stores offer affordable family
fashion at prices to suit every pocket. Vishal Retail also has apparel
manufacturing plant at Gurgaon. It has seven distribution centers and a
fleet of trucks for transportation.

Vishal Retail's total sales was Rs. 2,884.43 million for fiscal 2006,
as opposed to a turnover of Rs. 1,463.12 million for fiscal 2005 and Rs.
881.04 million for fiscal 2004. During the same period our profit after tax
was Rs. 124.74 million, Rs.30.20 million and Rs. 3.82 million, respectively.
Its sales increased between fiscal 2004 and fiscal 2006 at a CAGR of
80.94% and profit after tax increased between fiscal 2004 and fiscal 2006
at a CAGR of 471.44%.

Objects of the Issue:


The objects of the Issue are to achieve the benefits of listing on the
Stock Exchanges & to raise capital to

1. Meet the expenses of establishing new retail stores

MARKET CHART OF Vishal Retail Ltd.

63
Match Your Dreams. With Our Vision
Price Data on Listing Day 04-07-2007
Open Price Rs. 472.50
High Price Rs. 809.00
Low Price Rs. 423.25
Close Price Rs. 752.20
Volume 11417790

Price Data As On 11-01-2008


Open Price Rs. 880.00
High Price Rs. 940.00
Low Price Rs. 874.00
Close Price Rs. 915.90
Volume 24618

Market Chart of Scrip :

Vishal Retail Ltd.


1200
1000
Value ( Rs.)

800

600
400
200
0
No 7

De 7
Ju 7
Au 7

Au 7

Se 7

Oc 7
No 7
Au 7

07

Oc 7

07

Ja 7
08
0

0
t-0

t-0
l-0

l-0

0
v-

v-
g-

g-

g-

n-
p-

p-

c-

c-
Ju

De
Se

M onths

FINANCIAL HIGHLIGHTS
EPS information: (Quarterly)
Months Value ( Rs.)

64
Match Your Dreams. With Our Vision
Mar-2007 13.63
Jun-2007 13.52
Sep-2007 6.58
Dec-2007 6.95

P/E Ratio Information (Quarterly)


Months P/E Ratio
Sep-2007 106.39
Dec-2007 140.72

Note: (March-2007& Jun-2007 Data is not available because, it is listed On


04/07/2007)

Net Sales Information (Quarterly)


Months Value ( Rs. in Cr.)
Mar-2007 200.88
Jun-2007 228.97
Sep-2007 192.58
Dec-2007 301.74

Net Profit Information (Quarterly)


Months Value (Rs. in Cr.)
Mar-2007 25.07
Jun-2007 20.25
Sep-2007 14.73
Dec-2007 15.56

Profitability = Net Profit


----------------- X 100
Net Sales

= 15.56
---------- X 100
301.74

= 5.16 %

Market Capitalization = 2051.6 Rs. in Cr.

VISHAL RETAIL LTD.

65
Match Your Dreams. With Our Vision
EPS CHART P/E R ATIO C H ART
13.63 13.52
14 140.72
160
12
140 106.39
10
VALUE IN (RS.)
120
8 6.58 6.95 100

VALUE
6 80
60
4
40
2 20
0 0
Ma r-07 Jun-07 Se p-07 De c-07 S e p-07 De c-07
MONTHS MONTHS

N E T S AL E S C H AR T N ET PR OFIT C H AR T
350 301.74 30
25.07
300 228.97 25 20.25
250 200.88 192.58
RS. IN CRORES
20
14.73 15.56
RS. IN CRORES

200
15
150
10
100
5
50
0 0
M a r-07 Jun -07 S e p-07 De c-07 M a r-07 Jun-07 Se p-07 De c-07
M O NT HS MONTHS

The Profitability of this company is 5.61 % and the EPS is Rs.


6.95 which is the second highest among all the companies mentioned.
The P/E Ratio is 140.72. So, from the above charts it is concluded that
though the EPS has increased for the 2 Quarters but it has decreased in
the last 2. Whereas the P/E Ratio is increasing which proves to be riskier
for the investors.

Rank Given on the Basis of PROFITABILITY.

66
Match Your Dreams. With Our Vision
Sr. No. Top 10 IPOs Profitability
1 Religare Enterprises. 43.16%
2 Orbit Corporation Ltd. 27.04%
3 MIC Electronics Ltd. 17.51%
4 Gremarch Infrastructure 17.00%
5 Allied Digital Services Ltd. 15.26%
6 Everonn Systems India Ltd. 13.90%
7 Pyramid Saimira Theatre. 12.91%
8 Vishal Retail Ltd. 5.16%
9 Global Broadcast News. -35.28%
10 Allied Computer International -

Rank Given on the Basis of EPS


Sr. No. Top 10 IPOs EPS (Rs.)
1 Allied Digital Services Ltd 10.18
2 Vishal Retail Ltd. 6.95
3 MIC Electronics Ltd. 6.81
4 Gremarch Infrastructure 6.16
5 Orbit Corporation Ltd. 5.41
6 Pyramid Saimira Theatre. 3.55
7 Everonn Systems India Ltd. 2.92
8 Religare Enterprises. 0.29
9 Global Broadcast News. - 3.1
10 Allied Computer International -

Rank Given on the Basis of P\E RATIO


Sr. No. Top 10 IPOs P\E Ratio
1 Gremarch Infrastructure 57.02
2 Allied Digital Services Ltd 80.16
3 Vishal Retail Ltd. 140.72
4 Pyramid Saimira Theatre. 141.21
5 MIC Electronics Ltd. 147.28
6 Orbit Corporation Ltd. 173.75
7 Everonn Systems India Ltd. 378.37
8 Religare Enterprises. 404.17
9 Global Broadcast News. -
10 Allied Computer International -

RISK MEASUREMENT
BETA :

67
Match Your Dreams. With Our Vision
A measure of the instability, or systematic risk, of a security or a
portfolio in comparison to the market as a whole. Also known as "beta
coefficient". Beta is calculated using regression analysis, and you can
think of beta as the tendency of a security's returns to respond to swings
in the market. A beta of 1 indicates that the security's price will move
with the market. A beta of less than 1 means that the security will be
less volatile than the market. A beta of greater than 1 indicates that
the security's price will be more volatile than the market. The formula
of beta are as follow.

β = n (∑xy) – (∑x) (∑y)


-------------------------------
n ( ∑x² ) – (∑x)²

ORBIT CORPORATION LTD.

68
Match Your Dreams. With Our Vision
BSE
BSE SENSEX PRICE
DATE
BANCHMARK OF
X Y XY x² y²
ORBIT
12-4-07 13,113.81 127.95 - - - - -
30-4-07 13,872.37 195 5.78444 52.4033 303.123 33.4597 2746.1
15-5-07 13,929.33 211.25 0.4106 8.33333 3.42167 0.16859 69.4444
31-5-07 14,544.46 248.2 4.41608 17.4911 77.2422 19.5017 305.939
15-6-07 14,162.71 222.25 -2.6247 -10.455 27.4421 6.88911 109.313
29-6-07 14,650.51 272.15 3.44426 22.4522 77.3311 11.8629 504.101
16-7-07 15,311.22 348.3 4.50981 27.9809 126.188 20.3384 782.93
31-7-07 15,550.99 349.15 1.56598 0.24404 0.38216 2.45228 0.05956
14-8-07 15,000.91 492.1 -3.5373 40.9423 -144.82 12.5123 1676.27
31-8-07 15,318.60 469.75 2.1178 -4.5418 -9.6186 4.4851 20.6276
14-9-07 15,504.43 497.45 1.2131 5.89675 7.15335 1.47161 34.7717
28-9-07 17,291.10 519.25 11.5236 4.38235 50.5005 132.794 19.205
15-10-07 19,058.67 651.8 10.2224 25.5272 260.95 104.498 651.638
31-10-07 19,837.99 592 4.08906 -9.1746 -37.515 16.7204 84.1732
15-11-07 19,784.89 679.1 -0.2677 14.7128 -3.9382 0.07165 216.468
30-11-07 19,363.19 760.4 -2.1314 11.9717 -25.517 4.54297 143.322
14-12-07 20,030.83 853.5 3.44799 12.2436 42.2156 11.8886 149.905
31-12-07 20,286.99 943.85 1.27883 10.5858 13.5375 1.6354 112.06
11-01-08 20,827.45 919.9 2.66407 -2.5375 -6.76 7.09728 6.4388
48.127 228.458 761.315 392.39 7632.77
∑X ∑Y ∑XY ∑X² ∑Y²

β = n (∑xy) – (∑x) (∑y)


-------------------------------
n ( ∑x² ) – (∑x)²

= 0.67

Return of Orbit Corporation = 77.27 %

NOTE: Return is calculated on the basis of first 15 days after listing.

EVERONN SYSTEMS INDIA LTD.

69
Match Your Dreams. With Our Vision

BSE PRICE
BSE SENSEX
DATE BANCHMARK
OF X Y XY x² y²
EVERONN.

01-08-07 14935.77 478.45 - - - - -


14-08-07 15,000.91 611.75 0.43613 27.8608 12.151 0.19021 776.22
31-08-07 15,318.60 633.35 2.1178 3.53085 7.47766 4.4851 12.467
14-09-07 15,504.43 738.25 1.2131 16.5627 20.0922 1.47161 274.32
28-09-07 17,291.10 659.95 11.5236 -10.606 -122.22 132.794 112.49
15-10-07 19,058.67 620.35 10.2224 -6.0005 -61.339 104.498 36.005
31-10-07 19,837.99 591.8 4.08906 -4.6022 -18.819 16.7204 21.181
15-11-07 19,784.89 472 -0.2677 -20.243 5.4185 0.07165 409.79
30-11-07 19,363.19 468.55 -2.1314 -0.7309 1.55793 4.54297 0.5343
14-12-07 20,030.83 753.7 3.44799 60.858 209.837 11.8886 3703.7
31-12-07 20,286.99 1103.4 1.27883 46.3978 59.3348 1.6354 2152.8
11-01-08 20,827.45 1010.55 2.66407 -8.4149 -22.418 7.09728 70.811
34.5939 104.612 91.0723 285.395 7570.3
∑X ∑Y ∑XY ∑X² ∑Y²

β = n (∑xy) – (∑x) (∑y)


-------------------------------
n ( ∑x² ) – (∑x)²

= - 1.13

Return of Everonn Systems India Ltd. = 336.43 %

NOTE: Return is calculated on the basis of first 15 days after listing.

MIC ELECTRONICS LTD.

70
Match Your Dreams. With Our Vision
BSE
BSE SENSEX
DATE BANCHMARK
PRICE X Y XY x² y²
OF MIC

30-05-07 14,411.38 335.65 - - - - -


15-06-07 14,162.71 376.1 -1.7255 12.0512 -20.795 2.97739 145.232
29-06-07 14,650.51 376.8 3.44426 0.18612 0.64105 11.8629 0.03464
13-07-07 15,272.72 392.65 4.24702 4.20648 17.865 18.0372 17.6944
31-07-07 15,550.99 379.3 1.82201 -3.4 -6.1948 3.31971 11.5598
14-08-07 15,000.91 410.4 -3.5373 8.19931 -29.003 12.5123 67.2288
31-08-07 15,318.60 437.55 2.1178 6.6155 14.0103 4.4851 43.7648
14-09-07 15,504.43 547.65 1.2131 25.1628 30.525 1.47161 633.168
28-09-07 17,291.10 534.65 11.5236 -2.3738 -27.355 132.794 5.63483
15-10-07 19,058.67 530.8 10.2224 -0.7201 -7.3611 104.498 0.51854
31-10-07 19,837.99 554.9 4.08906 4.54032 18.5656 16.7204 20.6145
14-11-07 19,929.06 523.05 0.45907 -5.7398 -2.635 0.21074 32.945
28-11-07 18,938.87 600.8 -4.9686 14.8647 -73.857 24.6867 220.96
14-12-07 20,030.83 820.15 5.76571 36.5097 210.504 33.2434 1332.95
31-12-07 20,286.99 1009.4 1.27883 23.075 29.509 1.6354 532.458
11-01-08 20,827.45 881.5 2.66407 -12.671 -33.756 7.09728 160.552
38.6156 110.507 120.664 375.552 3225.32
∑X ∑Y ∑XY ∑X² ∑Y²

β = n (∑xy) – (∑x) (∑y)


-------------------------------
n ( ∑x² ) – (∑x)²

= - 0.52

Return of MIC Electronics Ltd. = 150.73 %

NOTE: Return is calculated on the basis of first 15 days after listing.

ALLIED DIGITAL SERVICES LTD.

71
Match Your Dreams. With Our Vision
BSE
PRICE
BSE SENSEX
DATE BANCHMARK
OF X Y XY x² y²
ALLIED
DIGITAL

25-07-07 15,699.33 331.8 - - - - -


10-08-07 14,868.25 297.65 -5.2937 -10.292 54.4849 28.0236 105.93
24-08-07 14,424.87 280.45 -2.9821 -5.7786 17.2321 8.89268 33.392
10-09-07 15,596.83 334.6 8.12458 19.3083 156.871 66.0088 372.81
25-09-07 16,899.54 363.75 8.3524 8.71189 72.7653 69.7626 75.897
10-10-07 18,658.25 394.55 10.4069 8.46735 88.1185 108.303 71.696
25-10-07 18,770.89 428.3 0.6037 8.55405 5.16409 0.36445 73.172
09-11-07 18,907.60 443.75 0.72831 3.60728 2.62722 0.53043 13.013
23-11-07 18,852.87 448.3 -0.2895 1.02535 -0.2968 0.08379 1.0513
10-12-07 19,930.68 497.55 5.71695 10.9859 62.8062 32.6836 120.69
24-12-07 19,854.12 724.7 -0.3841 45.6537 -17.537 0.14756 2084.3
11-01-08 20,827.45 959.6 4.90241 32.4134 158.904 24.0336 1050.6
29.8858 122.656 601.14 338.834 4002.5
∑X ∑Y ∑XY ∑X² ∑Y²

β = n (∑xy) – (∑x) (∑y)


-------------------------------
n ( ∑x² ) – (∑x)²

= 1.12

Return of Allied Digital Services Ltd.= 56.66 %

NOTE: Return is calculated on the basis of first 15 days after listing.

GREMARCH INFRASTRUCTURE.

72
Match Your Dreams. With Our Vision
BSE PRICE
BSE SENSEX
DATE BANCHMARK
OF X Y XY x² y²
GREMARCH
11-04-07 13,183.24 83.95 - - - - -
25-04-07 14,217.77 150.2 7.84731 78.916 619.279 61.5803 6227.7
11-05-07 13,796.16 137.35 -2.9654 -8.5553 25.3695 8.79344 73.192
25-05-07 14,338.45 138.3 3.93073 0.69166 2.71874 15.4506 0.4784
11-06-07 14,083.41 146.7 -1.7787 6.07375 -10.803 3.16382 36.89
25-06-07 14,487.72 186.25 2.87082 26.9598 77.3968 8.24163 726.83
10-07-07 15,009.88 176.8 3.60416 -5.0738 -18.287 12.9899 25.744
25-07-07 15,699.33 177.05 4.59331 0.1414 0.64951 21.0985 0.02
10-08-07 14,868.25 176.1 -5.2937 -0.5366 2.84046 28.0236 0.2879
24-08-07 14,424.87 172.4 -2.9821 -2.1011 6.26554 8.89268 4.4145
10-09-07 15,596.83 195.25 8.12458 13.2541 107.684 66.0088 175.67
25-09-07 16,899.54 266.6 8.3524 36.5429 305.221 69.7626 1335.4
10-10-07 18,658.25 282.75 10.4069 6.05776 63.0423 108.303 36.697
25-10-07 18,770.89 266.5 0.6037 -5.7471 -3.4695 0.36445 33.029
09-11-07 18,907.60 301.1 0.72831 12.9831 9.45571 0.53043 168.56
23-11-07 18,852.87 299.75 -0.2895 -0.4484 0.12978 0.08379 0.201
10-12-07 19,930.68 344.2 5.71695 14.829 84.7769 32.6836 219.9
24-12-07 19,854.12 339.15 -0.3841 -1.4672 0.56359 0.14756 2.1526
11-01-08 20,827.45 398.5 4.90241 17.4996 85.7903 24.0336 306.24
47.9881 190.02 1358.62 470.152 9373.4
∑X ∑Y ∑XY ∑X² ∑Y²

β = n (∑xy) – (∑x) (∑y)


-------------------------------
n ( ∑x² ) – (∑x)²

= 2.52

Return of Gremarch Infrastructure.= 74.65 %

NOTE: Return is calculated on the basis of first 15 days after listing.

GLOBAL BROADCAST NEWS LTD.

73
Match Your Dreams. With Our Vision
BSE
BSE SENSEX
DATE BANCHMARK
PRICE X Y XY x² y²
OF GBN

08-02-07 14,652.09 510.1 - - - - -


23-02-07 13,632.53 630.8 -6.9585 23.662 -164.65 48.4202 559.89
09-03-07 12,884.99 501.05 -5.4835 -20.569 112.791 30.0688 423.09
23-03-07 13,285.93 549.9 3.11168 9.74953 30.3374 9.68257 95.053
11-04-07 13,183.24 575.65 -0.7729 4.68267 -3.6193 0.59741 21.927
25-04-07 14,217.77 563.45 7.84731 -2.1193 -16.631 61.5803 4.4916
11-05-07 13,796.16 672.3 -2.9654 19.3185 -57.287 8.79344 373.2
25-05-07 14,338.45 896.15 3.93073 33.2961 130.878 15.4506 1108.6
11-06-07 14,083.41 906.1 -1.7787 1.11031 -1.9749 3.16382 1.2328
25-06-07 14,487.72 936.3 2.87082 3.33297 9.56836 8.24163 11.109
10-07-07 15,009.88 915.15 3.60416 -2.2589 -8.1414 12.9899 5.1026
25-07-07 15,699.33 867.15 4.59331 -5.245 -24.092 21.0985 27.51
10-08-07 14,868.25 894.9 -5.2937 3.20014 -16.941 28.0236 10.241
24-08-07 14,424.87 801.7 -2.9821 -10.415 31.0569 8.89268 108.46
10-09-07 15,596.83 914.05 8.12458 14.014 113.858 66.0088 196.39
25-09-07 16,899.54 973.45 8.3524 6.49855 54.2785 69.7626 42.231
10-10-07 18,658.25 914.15 10.4069 -6.0917 -63.396 108.303 37.109
25-10-07 18,770.89 876.05 0.6037 -4.1678 -2.5161 0.36445 17.371
09-11-07 18,907.60 904.25 0.72831 3.21899 2.34442 0.53043 10.362
23-11-07 18,852.87 901.3 -0.2895 -0.3262 0.09443 0.08379 0.1064
10-12-07 19,930.68 949.1 5.71695 5.30345 30.3196 32.6836 28.127
24-12-07 19,854.12 958.25 -0.3841 0.96407 -0.3703 0.14756 0.9294
11-01-08 20,827.45 1141.55 4.90241 19.1286 93.7763 24.0336 365.9
37.8849 96.2872 249.683 558.921 3448.5
∑X ∑Y ∑XY ∑X² ∑Y²

β = n (∑xy) – (∑x) (∑y)


-------------------------------
n ( ∑x² ) – (∑x)²

= 0.18

Return of Global Broadcast News.= 152.32 %

NOTE: Return is calculated on the basis of first 15 days after listing.

PYRAMID SAIMIRA THEATRE LTD.

74
Match Your Dreams. With Our Vision
BSE
BSE SENSEX PRICE
DATE BANCHMARK OF
X Y XY x² y²
PYRAMID
05-01-07 13,860.52 158.2 - - - - -
19-01-07 14,182.71 190.15 2.32452 20.196 46.9458 5.40337 407.877
08-02-07 14,652.09 441.3 3.30952 132.08 437.122 10.9529 17445.1
23-02-07 13,632.53 337.7 -6.9585 -23.476 163.357 48.4202 551.127
09-03-07 12,884.99 230.35 -5.4835 -31.789 174.313 30.0688 1010.51
23-03-07 13,285.93 285.9 3.11168 24.1155 75.0397 9.68257 581.556
11-04-07 13,183.24 302.5 -0.7729 5.80623 -4.4878 0.59741 33.7123
25-04-07 14,217.77 339.55 7.84731 12.2479 96.1134 61.5803 150.012
11-05-07 13,796.16 325.75 -2.9654 -4.0642 12.0519 8.79344 16.5177
25-05-07 14,338.45 334.05 3.93073 2.54797 10.0154 15.4506 6.49213
11-06-07 14,083.41 339.4 -1.7787 1.60156 -2.8487 3.16382 2.56498
25-06-07 14,487.72 352.55 2.87082 3.87448 11.123 8.24163 15.0116
10-07-07 15,009.88 320.05 3.60416 -9.2186 -33.225 12.9899 84.9817
25-07-07 15,699.33 287.65 4.59331 -10.123 -46.5 21.0985 102.484
10-08-07 14,868.25 284.8 -5.2937 -0.9908 5.24496 28.0236 0.98166
24-08-07 14,424.87 271.6 -2.9821 -4.6348 13.8213 8.89268 21.4817
10-09-07 15,596.83 317.7 8.12458 16.9735 137.902 66.0088 288.099
25-09-07 16,899.54 341.2 8.3524 7.39692 61.782 69.7626 54.7144
10-10-07 18,658.25 309.65 10.4069 -9.2468 -96.23 108.303 85.5029
25-10-07 18,770.89 281.2 0.6037 -9.1878 -5.5467 0.36445 84.4155
09-11-07 18,907.60 285.75 0.72831 1.61807 1.17845 0.53043 2.61814
23-11-07 18,852.87 343.6 -0.2895 20.245 -5.8601 0.08379 409.859
10-12-07 19,930.68 309.65 5.71695 -9.8807 -56.487 32.6836 97.6277
24-12-07 19,854.12 424.95 -0.3841 37.2356 -14.303 0.14756 1386.49
11-01-08 20,827.45 451.45 4.90241 6.23603 30.5716 24.0336 38.888
43.5189 179.563 1011.09 575.277 22878.6
∑X ∑Y ∑XY ∑X² ∑Y²

β = n (∑xy) – (∑x) (∑y)


-------------------------------
n ( ∑x² ) – (∑x)²

= 1.40

Return of Pyramid Saimira Theatre. = 90.15 %

NOTE: Return is calculated on the basis of first 15 days after listing.

ALLIED COMPUTER INTERNATIONAL.

75
Match Your Dreams. With Our Vision

BSE PRICE
BSE SENSEX
DATE BANCHMARK
OF ALLIED X Y XY x² y²
COMPUTER

23-11-07 18,852.87 37.7 - - - - -


07-12-07 19,966.00 59.9 5.9043 58.886 347.6803 34.8608 3467.6
20-12-07 19,162.57 71.8 -4.024 19.866 -79.9424 16.1925 394.68
04-01-08 20,686.89 55.65 7.9547 -22.49 -178.925 63.2768 505.94
11-01-08 20,827.45 45.15 0.6795 -18.87 -12.8201 0.46167 356
10.514 37.391 75.99302 114.792 4724.2
∑X ∑Y ∑XY ∑X² ∑Y²

β = n (∑xy) – (∑x) (∑y)


-------------------------------
n ( ∑x² ) – (∑x)²

= 0.02

Return of Allied Computer International.= 399.17 %

NOTE: Return is calculated on the basis of first 15 days after listing.

RELIGARE ENTERPRISES LTD.

76
Match Your Dreams. With Our Vision
BSE
BSE SENSEX
DATE BANCHMARK
PRICE OF X Y XY x² y²
RELIGARE
21-11-07 18,602.62 521.7 - - - - -
07-12-07 19,966.00 540 7.32897 3.50776 25.7083 53.7138 12.304
20-12-07 19,162.57 513.45 -4.024 -4.9167 19.7846 16.1925 24.174
04-01-08 20,686.89 683.05 7.95467 33.0315 262.754 63.2768 1091.1
11-01-08 20,827.45 642.35 0.67946 -5.9586 -4.0486 0.46167 35.505
11.9391 25.664 304.199 133.645 1163.1
∑X ∑Y ∑XY ∑X² ∑Y²

β = n (∑xy) – (∑x) (∑y)


-------------------------------
n ( ∑x² ) – (∑x)²

= 2.31

Return of Reliagare Enterprises Ltd..= 191.89 %

NOTE: Return is calculated on the basis of first 15 days after listing.

VISHAL RETAIL LTD.

77
Match Your Dreams. With Our Vision
BSE
BSE SENSEX PRICE
DATE BANCHMARK OF X Y XY x² y²
VISHAL
04-07-07 14,880.24 752.2 - - - - -
20-07-07 15,565.55 722.45 4.6055 -3.9551 -18.215 21.2107 15.6425
06-08-07 14,903.03 625.1 -4.2563 -13.475 57.3539 18.1163 181.575
21-08-07 13,989.11 620.75 -6.1324 -0.6959 4.2675 37.6069 0.48426
06-09-07 15,616.31 641.5 11.6319 3.34273 38.8823 135.301 11.1738
21-09-07 16,564.23 718 6.07006 11.9252 72.3866 36.8457 142.21
05-10-07 17,773.36 741.4 7.29965 3.25905 23.7899 53.2848 10.6214
19-10-07 17,559.98 706 -1.2006 -4.7748 5.73238 1.44135 22.7982
05-11-07 19,590.78 699.45 11.5649 -0.9278 -10.73 133.748 0.86074
20-11-07 19,280.80 709.3 -1.5823 1.40825 -2.2282 2.50359 1.98317
05-12-07 19,738.07 746.7 2.37163 5.2728 12.5052 5.62465 27.8025
20-12-07 19,162.57 775 -2.9157 3.79001 -11.05 8.50122 14.3642
04-01-08 20,686.89 925.3 7.95467 19.3935 154.269 63.2768 376.11
11-01-08 20,827.45 915.9 0.67946 -1.0159 -0.6903 0.46167 1.03203
36.0905 23.5472 326.274 517.923 806.658
∑X ∑Y ∑XY ∑X² ∑Y²

β = n (∑xy) – (∑x) (∑y)


-------------------------------
n ( ∑x² ) – (∑x)²

= 0.63

Return of Vishal Retail Ltd.= 167.57 %

NOTE: Return is calculated on the basis of first 15 days after listing.

78
Match Your Dreams. With Our Vision

• According to my study the investment done in the securities by the


investors is mainly done only by the image of the company but not on the
basis of the fundamental analysis.

• EPS is the money that is left over after a company pays all of its debt
so, higher the EPS the better it is.

• A low P/E is generally considered good because it may mean that the
stock price has not risen to reflect its earning power. A high P/E, on the other
may reflect an overpriced stock or decreasing earnings.

• A Beta of 1 indicates that the Security’s price will move with the
market. A Beta of less than 1 means that security will be less volatile than
the market. A Beta of greater than 1 indicates that the security price will be
more volatile than the market.

• According to my study most probably, listing price is more compare to


allotment price.

• According to my study, compare to year 2005 (61) and 2006 (85), in


this year there are more IPO listed in the year 2007 (110).

79
Match Your Dreams. With Our Vision

• The investment in IPO can prove too risky because the investor does
not know anything about the company because it is listed first time in the
market so its performance cannot be measure.

• On the other hand it can be said that the higher the risk higher the
returns earned. So we can say that the though risky if investment is done
then it can give higher returns as well.
 For example- we can take the example of Reliance
power. The Investors invested in huge amounts with the faith that they will
get good returns but nothing happened so when the IPO got listed. So one
should think and invest in IPO

• Primary market is more volatile than the secondary market because all
the companies are listed for the first time in the market so nothing can be
said about its performance.

• If higher risk is taken, it is always rewarded with the higher returns. So


higher the risk the more the returns rewarded for it.

• “We can fairly predict the future, but can’t make it happen as it is.”

80
Match Your Dreams. With Our Vision

• Investment management
By Prof. V. Gangadhar & Dr. G. Ramesh Babu,
1st edition, (Amol Publication Pvt. Ltd.), 2003.

• Magazine: Capital Market.

• Websites
o www.rediff.com
o www.bseindia.com
o www.nseindia.com
o www.moneycontrol.com
o www.arcadiastock.com

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