CHAPTER-I

INTRODUCTION

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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 2006 to 2013. 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 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

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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 NSE 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 year 2006-2013 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 2006-2013 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.

METHODOLOGY OF THE STUDY:

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 ICICI.

Secondary Data: The secondary data collection method includes:

The lecturers delivered by the superintendents of respective departments.
The brochures and material provided by ICICI.
The data collected from the magazines of the NSE, economic times, NSE website, etc.

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 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.
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.

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 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 2006-2013
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 NSE only.

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 CHAPTER-II
REVIEW OF LITERATURE

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 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 dispensed 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 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.

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 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 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.

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 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.
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.

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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.
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 100 crores 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.

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 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 1996-97, all
public financial institutions including IDBI, IFCI, ICICI and 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.

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 10 % 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 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.

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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.

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

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 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.

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

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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 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

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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 $1000 and be
showered with an allocation. He has to be frequently trading client with a large account to
get into an hot IPO.
.
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.

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

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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.

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 2004 August. According to SEBI
Guidelines “A company desirous of availing GSO shall pass the resolution in the general
body 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

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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 15 % 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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 CHAPTER-III

INDUSTRY PROFILE

&

COMPANY PROFILE

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 INDUSTRY PROFILE

For the Indian investors, the year belonged to stock markets, which have been shining
bright when it comes to generating wealth, while the glitter of gold and silver faded for
the second straight year in 2013.
Measured by BSE Sensex, stock market has generated a positive return of about 9 per
cent for investors in 2013, while gold prices fell by about three per cent and its poorer
cousin silver plummeted close to 24 per cent.
After outperforming stock market for more than a decade, gold has been on back foot for
two consecutive years now vis-a-vis equities, shows an analysis of their price
movements.
"Gold's under-performance was mainly due to prices falling in dollar terms amid
anticipated tapering over last several months combined with FII investment in Indian
stocks.
"This movement has been equally true for global markets as 2013 saw gold losing its
shine and markets coming back with a bang," said Jayant Manglik, President Retail
Distribution and Relegate Securities.
"As always, gold and stock prices follow opposite trends and this year was no different
except that both changed direction," he said.
Improvement in the world economy has brought the risk appetite back amongst retail
investors and this has drenched the liquidity from safe havens such as gold leading to its
under-performance, an expert said.
In 2012, the Sensex had gained over 25 per cent, which was nearly double the gain of
about 12.95 per cent in gold. The appreciation in silver was at about 12.84 per last year.
According to Hiren Dhakan, Associate Fund Manager, Bonanza Portfolio, "Markets have
particularly shown great strength post July-August 2013 when RBI took some strong
measures to control the steeply depreciating rupee."
"When the US Fed gave indications that it might taper its stimulus programme given the
economy shows improvement, a knee-jerk correction was seen in most risky assets,
including stocks in Indian markets. However, assurance by the Fed about planned and
staggered tapering in stimulus once again proved to be a catalyst for the markets."

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"External factors affecting Indian stocks seem to be negative for the first half of 2013 due
to continued strength of the US dollar and benign in the second half. By that time,
elections too would have taken place. A combination of domestic and international
factors point to a bumper closing of Indian markets in 2013 with double-digit percentage
growth," he said.
Stock market segment mid-cap and small-cap indices have fallen by about 10 per cent
and 16 per cent, respectively, in 2013.
Foreign Institutional Investors have bought shares worth over Rs 1.1 lakh crore (nearly
USD 20 billion) till December 19. In 2012, they had pumped in Rs 1.28 lakh crore (USD
24.37 billion).

Evolution

Indian Stock Markets are one of the oldest in Asia. Its history dates back to nearly 200
years ago. The earliest records of security dealings in India are meager and obscure. The
East India Company was the dominant institution in those days and business in its loan
securities used to be transacted towards the close of the eighteenth century.

By 1830's business on corporate stocks and shares in Bank and Cotton presses took place
in Bombay. Though the trading list was broader in 1839, there were only half a dozen
brokers recognized by banks and merchants during 1840 and 1850.

The 1850's witnessed a rapid development of commercial enterprise and brokerage

business attracted many men into the field and by 1860 the number of brokers increased
into 60.

In 1860-61 the American Civil War broke out and cotton supply from United States of
Europe was stopped; thus, the 'Share Mania' in India begun. The number of brokers
increased to about 200 to 250. However, at the end of the American Civil War, in 1865, a
disastrous slump began (for example, Bank of Bombay Share which had touched Rs 2850
could only be sold at Rs. 87).

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At the end of the American Civil War, the brokers who thrived out of Civil War in 1874,
found a place in a street (now appropriately called as Dalal Street) where they would
conveniently assemble and transact business. In 1887, they formally established in
Bombay, the "Native Share and Stock Brokers' Association" (which is alternatively
known as " The Stock Exchange "). In 1895, the Stock Exchange acquired a premise in
the same street and it was inaugurated in 1899. Thus, the Stock Exchange at Bombay was
consolidated.

Other leading cities in stock market operations

Ahmadabad gained importance next to Bombay with respect to cotton textile industry.
After 1880, many mills originated from Ahmadabad and rapidly forged ahead. As new
mills were floated, the need for a Stock Exchange at Ahmadabad was realized and in
1894 the brokers formed "The Ahmadabad Share and Stock Brokers' Association".

What the cotton textile industry was to Bombay and Ahmadabad, the jute industry was to
Calcutta. Also tea and coal industries were the other major industrial groups in Calcutta.
After the Share Mania in 1861-65, in the 1870's there was a sharp boom in jute shares,
which was followed by a boom in tea shares in the 1880's and 1890's; and a coal boom
between 1904 and 1908. On June 1908, some leading brokers formed "The Calcutta
Stock Exchange Association".

In the beginning of the twentieth century, the industrial revolution was on the way in
India with the Swadeshi Movement; and with the inauguration of the Tata Iron and Steel
Company Limited in 1907, an important stage in industrial advancement under Indian
enterprise was reached.

Indian cotton and jute textiles, steel, sugar, paper and flour mills and all companies
generally enjoyed phenomenal prosperity, due to the First World War.

In 1920, the then demure city of Madras had the maiden thrill of a stock exchange
functioning in its midst, under the name and style of "The Madras Stock Exchange" with

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100 members. However, when boom faded, the number of members stood reduced from
100 to 3, by 1923, and so it went out of existence.

In 1935, the stock market activity improved, especially in South India where there was a
rapid increase in the number of textile mills and many plantation companies were floated.
In 1937, a stock exchange was once again organized in Madras - Madras Stock Exchange
Association (Pvt) Limited. (In 1957 the name was changed to Madras Stock Exchange
Limited).

Lahore Stock Exchange was formed in 1934 and it had a brief life. It was merged with
the Punjab Stock Exchange Limited, which was incorporated in 1936.

Indian Stock Exchanges - An Umbrella Growth

The Second World War broke out in 1939. It gave a sharp boom which was followed by a
slump. But, in 1943, the situation changed radically, when India was fully mobilized as a
supply base.

On account of the restrictive controls on cotton, bullion, seeds and other commodities,
those dealing in them found in the stock market as the only outlet for their activities.
They were anxious to join the trade and their number was swelled by numerous others.
Many new associations were constituted for the purpose and Stock Exchanges in all parts
of the country were floated.

The Uttar Pradesh Stock Exchange Limited (1940), Nagpur Stock Exchange Limited
(1940) and Hyderabad Stock Exchange Limited (1944) were incorporated.

In Delhi two stock exchanges - Delhi Stock and Share Brokers' Association Limited and
the Delhi Stocks and Shares Exchange Limited - were floated and later in June 1947,
amalgamated into the Delhi Stock Exchange Association Limited.

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Post-independence Scenario

Most of the exchanges suffered almost a total eclipse during depression. Lahore
Exchange was closed during partition of the country and later migrated to Delhi and
merged with Delhi Stock Exchange.

Bangalore Stock Exchange Limited was registered in 1957 and recognized in 1963.

Most of the other exchanges languished till 1957 when they applied to the Central
Government for recognition under the Securities Contracts (Regulation) Act, 1956. Only
Bombay, Calcutta, Madras, Ahmadabad, Delhi, Hyderabad and Indore, the well
established exchanges, were recognized under the Act. Some of the members of the other
Associations were required to be admitted by the recognized stock exchanges on a
concessional basis, but acting on the principle of unitary control, all these pseudo stock
exchanges were refused recognition by the Government of India and they thereupon
ceased to function.

Thus, during early sixties there were eight recognized stock exchanges in India
(mentioned above). The number virtually remained unchanged, for nearly two decades.
During eighties, however, many stock exchanges were established: Cochin Stock
Exchange (1980), Uttar Pradesh Stock Exchange Association Limited (at Kanpur, 1982),
and Pune Stock Exchange Limited (1982), Ludhiana Stock Exchange Association
Limited (1983), Gauhati Stock Exchange Limited (1984), Kanara Stock Exchange
Limited (at Mangalore, 1985), Magadh Stock Exchange Association (at Patna, 1986),
Jaipur Stock Exchange Limited (1989), Bhubaneswar Stock Exchange Association
Limited (1989), Saurashtra Kutch Stock Exchange Limited (at Rajkot, 1989), Vadodara
Stock Exchange Limited (at Baroda, 1990) and recently established exchanges -
Coimbatore and Meerut. Thus, at present, there are totally twenty one recognized stock
exchanges in India excluding the Over The Counter Exchange of India Limited (OTCEI)
and the National Stock Exchange of India Limited (NSEIL).

The Table given below portrays the overall growth pattern of Indian stock markets since
independence. It is quite evident from the Table that Indian stock markets have not only

23
grown just in number of exchanges, but also in number of listed companies and in capital
of listed companies. The remarkable growth after 1985 can be clearly seen from the
Table, and this was due to the favoring government policies towards security market
industry.

Trading Pattern of the Indian Stock Market

Trading in Indian stock exchanges are limited to listed securities of public limited
companies. They are broadly divided into two categories, namely, specified securities
(forward list) and non-specified securities (cash list). Equity shares of dividend paying,
growth-oriented companies with a paid-up capital of at least Rs.50 million and a market
capitalization of at least Rs.100 million and having more than 20,000 shareholders are,
normally, put in the specified group and the balance in non-specified group.

Two types of transactions can be carried out on the Indian stock exchanges: (a) spot
delivery transactions "for delivery and payment within the time or on the date stipulated
when entering into the contract which shall not be more than 14 days following the date
of the contract" : and (b) forward transactions "delivery and payment can be extended by
further period of 14 days each so that the overall period does not exceed 90 days from the
date of the contract". The latter is permitted only in the case of specified shares. The
brokers who carry over the out standings pay carry over charges (can tango or
backwardation) which are usually determined by the rates of interest prevailing.

A member broker in an Indian stock exchange can act as an agent, buy and sell securities
for his clients on a commission basis and also can act as a trader or dealer as a principal,
buy and sell securities on his own account and risk, in contrast with the practice
prevailing on New York and London Stock Exchanges, where a member can act as a
jobber or a broker only.

The nature of trading on Indian Stock Exchanges are that of age old conventional style of
face-to-face trading with bids and offers being made by open outcry. However, there is a
great amount of effort to modernize the Indian stock exchanges in the very recent times.

24
Over The Counter Exchange of India (OTCEI)

The traditional trading mechanism prevailed in the Indian stock markets gave way to
many functional inefficiencies, such as, absence of liquidity, lack of transparency, unduly
long settlement periods and benami transactions, which affected the small investors to a
great extent. To provide improved services to investors, the country's first ring less, scrip
less, electronic stock exchange - OTCEI - was created in 1992 by country's premier
financial institutions - Unit Trust of India, Industrial Credit and Investment Corporation
of India, Industrial Development Bank of India, SBI Capital Markets, Industrial Finance
Corporation of India, General Insurance Corporation and its subsidiaries and Can Bank
Financial Services.

Trading at OTCEI is done over the centers spread across the country. Securities traded on
the OTCEI are classified into:

 Listed Securities - The shares and debentures of the companies listed on the OTC
can be bought or sold at any OTC counter all over the country and they should not
be listed anywhere else

 Permitted Securities - Certain shares and debentures listed on other exchanges and
units of mutual funds are allowed to be traded

 Initiated debentures - Any equity holding at least one lakh debentures of a

particular scrip can offer them for trading on the OTC.

OTC has a unique feature of trading compared to other traditional exchanges. That is,
certificates of listed securities and initiated debentures are not traded at OTC. The
original certificate will be safely with the custodian. But, a counter receipt is generated
out at the counter which substitutes the share certificate and is used for all transactions.

In the case of permitted securities, the system is similar to a traditional stock exchange.
The difference is that the delivery and payment procedure will be completed within 14
days.

25
Compared to the traditional Exchanges, OTC Exchange network has the following
advantages:

 OTCEI has widely dispersed trading mechanism across the country which
provides greater liquidity and lesser risk of intermediary charges.

 Greater transparency and accuracy of prices is obtained due to the screen-based

scrip less trading.

 Since the exact price of the transaction is shown on the computer screen, the
investor gets to know the exact price at which s/he is trading.

 Faster settlement and transfer process compared to other exchanges.

 In the case of an OTC issue (new issue), the allotment procedure is completed in a
month and trading commences after a month of the issue closure, whereas it takes
a longer period for the same with respect to other exchanges.

Thus, with the superior trading mechanism coupled with information transparency
investors are gradually becoming aware of the manifold advantages of the OTCEI.

National Stock Exchange (NSE)

With the liberalization of the Indian economy, it was found inevitable to lift the Indian
stock market trading system on par with the international standards. On the basis of the
recommendations of high powered Pherwani Committee, the National Stock Exchange
was incorporated in 1992 by Industrial Development Bank of India, Industrial Credit and
Investment Corporation of India, Industrial Finance Corporation of India, all Insurance
Corporations, selected commercial banks and others.

Trading at NSE can be classified under two broad categories:

(a) Wholesale debt market and

(b) Capital market.

26
Wholesale debt market operations are similar to money market operations - institutions
and corporate bodies enter into high value transactions in financial instruments such as
government securities, treasury bills, public sector unit bonds, commercial paper,
certificate of deposit, etc.

There are two kinds of players in NSE:

(a) Trading members and

(b) Participants.

Recognized members of NSE are called trading members who trade on behalf of
themselves and their clients. Participants include trading members and large players like
banks who take direct settlement responsibility.

Trading at NSE takes place through a fully automated screen-based trading mechanism
which adopts the principle of an order-driven market. Trading members can stay at their
offices and execute the trading, since they are linked through a communication network.
The prices at which the buyer and seller are willing to transact will appear on the screen.
When the prices match the transaction will be completed and a confirmation slip will be
printed at the office of the trading member.

NSE has several advantages over the traditional trading exchanges. They are as follows:

 NSE brings an integrated stock market trading network across the nation.

 Investors can trade at the same price from anywhere in the country since inter-
market operations are streamlined coupled with the countrywide access to the
securities.

 Delays in communication, late payments and the malpractice’s prevailing in the

traditional trading mechanism can be done away with greater operational
efficiency and informational transparency in the stock market operations, with the
support of total computerized network.

27
Unless stock markets provide professionalized service, small investors and foreign
investors will not be interested in capital market operations. And capital market being one
of the major source of long-term finance for industrial projects, India cannot afford to
damage the capital market path. In this regard NSE gains vital importance in the Indian
capital market system.

Why Economic Planning for India?

One of the major objective of planning in India is to increase the rate of economic
development, implying that increasing the rate of capital formation by raising the levels
of income, saving and investment. However, increasing the rate of capital formation in
India is beset with a number of difficulties. People are poverty ridden. Their capacity to
save is extremely low due to low levels of income and high propensity to consume.
Therefor, the rate of investment is low which leads to capital deficiency and low
productivity. Low productivity means low income and the vicious circle continues. Thus,
to break this vicious economic circle, planning is inevitable for India.

The market mechanism works imperfectly in developing nations due to the ignorance and
unfamiliarity with it. Therefore, to improve and strengthen market mechanism planning is
very vital. In India, a large portion of the economy is non-monetized; the product, factors
of production, money and capital markets is not organized properly. Thus the prevailing
price mechanism fails to bring about adjustments between aggregate demand and supply
of goods and services. Thus, to improve the economy, market imperfections has to be
removed; available resources has to be mobilized and utilized efficiently; and structural
rigidities has to be overcome. These can be attained only through planning.

In India, capital is scarce; and unemployment and disguised unemployment is prevalent.

Thus, where capital was being scarce and labour being abundant, providing useful
employment opportunities to an increasing labour force is a difficult exercise. Only a
centralized planning model can solve this macro problem of India.

Further, in a country like India where agricultural dependence is very high, one cannot
ignore this segment in the process of economic development. Therefore, an economic

28
development model has to consider a balanced approach to link both agriculture and
industry and lead for a paralleled growth. Not to mention, both agriculture and industry
cannot develop without adequate infrastructural facilities which only the state can
provide and this is possible only through a well carved out planning strategy. The
government’s role in providing infrastructure is unavoidable due to the fact that the role
of private sector in infrastructural development of India is very minimal since these
infrastructure projects are considered as unprofitable by the private sector.

Further, India is a clear case of income disparity. Thus, it is the duty of the state to reduce
the prevailing income inequalities. This is possible only through planning.

Objectives of Indian Planning

The Planning Commission was set up the following Directive principles:

 To make an assessment of the material, capital and human resources of the

country, including technical personnel, and investigate the possibilities of
augmenting such of these resources as are found to be deficient in relation to the
nation’s requirement.

 To formulate a plan for the most effective and balanced use of the country’s
resources.

 Having determined the priorities, to define the stages in which the plan should be
carried out, and propose the allocation of resources for the completion of each
stage.

 To indicate the factors which are tending to retard economic development, and
determine the conditions which, in view of the current social and political
situation, should be established for the successful execution of the Plan.

 To determine the nature of the machinery this will be necessary for securing the
successful implementation of each stage of Plan in all its aspects.

29
  To appraise from time to time the progress achieved in the execution of each stage
of the Plan and recommend the adjustments of policy and measures that such
appraisals may show to be necessary.

 To make such interim or auxiliary recommendations as appear to it to be

appropriate either for facilitating the discharge of the duties assigned to it or on a
consideration of the prevailing economic conditions, current policies, measures
and development programs; or on an examination of such specific problems as
may be referred to it for advice by Central or State Governments.

The long-term general objectives of Indian Planning are as follows:

 Increasing National Income

 Reducing inequalities in the distribution of income and wealth

 Elimination of poverty

 Providing additional employment; and

 Alleviating bottlenecks in the areas of: agricultural production, manufacturing

capacity for producer’s goods and balance of payments.

Economic growth, as the primary objective has remained in focus in all Five Year Plans.
Approximately, economic growth has been targeted at a rate of five per cent per annum.
High priority to economic growth in Indian Plans looks very much justified in view of
long period of stagnation during the British rule

30
 COMPANY PROFILE

ICICI Securities Ltd is an integrated securities firm offering a wide range of

services including investment banking, institutional broking, retail
broking, private wealth management, and financial product
distribution.

ICICI Securities sees its role as 'Creating Informed Access to the Wealth of the
Nation' for its diversified set of clients that include corporates, financial institutions, high
net-worth individuals and retail investors.

Headquartered in Mumbai, ICICI Securities operates out of 66 cities and towns in India
and global offices in Singapore and New York.

ICICI Securities Inc., the step-down wholly owned US subsidiary of the company is a
member of the Financial Industry Regulatory Authority (FINRA) / Securities Investors
Protection Corporation (SIPC). ICICI Securities Inc. activities include Dealing in
Securities and Corporate Advisory Services in the United States.

ICICI Securities Inc. is also registered with the Monetary Authority of Singapore (MAS)
and operates a branch office in Singapore.

ICICI Securities Limited.

 Ms. Chanda D. Kochhar,Chairperson
 Mr Uday Chitale
 Mr. Narendra Murkumbi
 Mr Ketan Patel
 Mr Pravir Vohra
 Ms Zarin Daruwala
 Mr. Anup Bagchi, Managing Director and CEO
 Mr. Ajay Saraf, Executive Director

31
ICICI Securities Holding Inc.
 Mr. Gopakumar Puthenveettil
 Mr. Pramod Rao
 Mr. Sriram Iyer
 Mr. Ashish Kakkar
 Mr. Raghav Iyengar
 The social initiatives programme of ICICI Securities has over the years focused
mainly on two areas: providing education and health to the poor and
marginalized children from our society.

 Under the aegis of ICICI Foundation, ICICI Securities provides both financial
and volunteering support to the following two organisations:

 Door Step School - One of the most long standing associations has been with
Door Step, a NGO focused on spreading education to children residing in the
slums. The Colaba Municipal School, which is managed by the Mumbai
Municipal Corporation along with Door Step, was adopted by ICICI Securities in
2004. The firm not only provides funds for hiring teachers, books and other
educational needs but also encourages its employees to spend some quality time
with the children through various activities like Diya making during Diwali or
playing a cricket match with the children.

 Muktangan - ICICI Securities has also adopted the pre-primary section of a

municipal school in Lower Parel, Mumbai. This school is run by the Paragon
Charitable Trust through their CSO called Muktangan. Managed in collaboration
with the Brihanmumbai Municipal Corporation (BMC), Muktangan conducts its
classes in English. ICICI Securities supports this educational programme that
offers alternatives to orthodox educational practices

Retail

32
  ICICI Securities won the Outlook Smart use Technology Retailer of the year
2013 conferred by FIHL in association with HomeShop18.com.

 ICICIdirect.com, won the Outlook Money ' Best e- Brokerage Award' seventh
time in a row. Previously, the firm won the award in 2004, 2005, 2007, 2008,
2009 and 2010.
 ICICI Securities' Business Partners (Sub Broker channel) won the 'Franchisor of
the Year 2011' for the third consecutive year.
 Anup Bagchi, MD & CEO has been honored with the Zee Business 'Industry
Newsmaker Award 2010' for his tremendous and unmatched contribution in the
field of Finance
 Pankaj Pandey, Head- Research - ICICIdirect has won the Zee Business Best
Market Analyst 2010 award in the Equities Fundamental Category
 CMO Asia Awards for Excellence in Branding and Marketing 2010:
o Brand Leadership Award (overall)
o 'Campaign of the Year' for the Trade Racer Campaign
o Brand Excellence in Banking and Financial Services for the store
format
o Award for Brand Excellence in the Internet Business
 Frost and Sullivan 2009 Award for Customer Service Leadership
 ICICIdirect, the neighborhood financial superstore won the prestigious Franchise
India `Service Retailer of the Year 2008 award.
 ICICIdirect has also won the CNBC AWAAZ 2007 Consumer Award for the
Most Preferred Brand of Financial Advisory Services.
 Best Broker - Web 18 Genius of the Web Awards 2007
 Franchisor of the year award 2009
 Retail concept of the year awards 2009

Institutional
 Vikash Mantri tops The Wall Street Journal's Asia's Best Analysts survey in the
media sector for 2010

33
  ICICI Securities is awarded as the Best Investment Bank 2008 by Global
Finance Magazine
 The Corporate Finance group also was awarded a runner-up Best Merchant
Banker by Outlook Money in 2007.
 ICICI Securities (I-Sec) topped the Prime Database League Tables 2007 for
money raised through IPOs/FPOs.
 The equities team was adjudged the 'Best Indian Brokerage House-2003' by
Asiamoney.

Technology
 IDG India's CIO magazine has recognized ICICI Securities as a recipient of CIO
100 award in 2009, 2010 and 2011
 ICICI Securities conferred the Gold CIO award jointly by CIOL and Dataquest
at the Enterprise Awards 2010
 Indian Bank's Association Business Technology Awards for Best Online Trading
Platform in 2006 and 2007

Special Category
 Mr Charanjit Attra, Chief Financial Officer (CFO), ICICI Securities Ltd was
conferred the 'CFO100 recognizing the Winning Edge in 2010' award by CFO
India. He won the award for the 'Winning Edge in Cost Management' category.

Disclaimer of Warranty and Limitation of Liability

The information on this site is provided on "AS IS" basis. I-Sec does not warrant the
accuracy of the information given herein, either expressly or impliedly, for any particular
purpose and expressly disclaims any warranties of merchantability or suitability for any
particular purpose. Although the information provided to you on this website is obtained
or compiled from the sources we believe to be accurate, I-Sec does not guarantee the
accuracy, completeness or validity of any information made available to you for any
purpose. Neither I-Sec, nor any of its affiliates, directors, officers or employees, will be
liable or have any responsibility of any kind for any loss or damage that you incur in the

34
event of any failure or interruption of this site, or resulting from the act or omission of
any other party involved in making this site or the data contained therein available to you,
or from any other cause relating to your access to, inability to access, or use of the site or
these materials, whether or not the circumstances giving rise to such cause may have
been within the control of I-Sec or of any vendor providing software or services support.
In no event will I-Sec be liable to you for any remote, special, direct, indirect,
consequential, incidental damages or any other damages of any kind (regardless of the
legal theory on which the claim is based) even if I-Sec or any other party have been
informed of the possibility thereof.

Copyright or Other Notices

If you download any information or data or software from this website, you agree that
you will not copy it or remove or obscure any copyright or other notices or legends
contained in any such information.

Use of Links

Should you leave this site via a link contained herein, and view content that is not
provided by I-Sec, you shall do so at your own risk. I-Sec makes no guarantees or
representations as to, and shall have no liability for, any electronic content delivered by
any third party, including, the appropriateness, subject matter, quality or timeliness of any
content.

Research

The information contained in the Research Reports uploaded herein has been obtained
from various sources; we do not guarantee its authenticity or validity or completeness.
Neither any information nor any opinions expressed constitute an offer, or an invitation to
make an offer, to buy or sell any securities or any derivative instruments related to such
securities. Investors should take financial advice with respect to the suitability of
investing their monies in any securities discussed or recommended in on this website and
should understand that statements regarding future prospects may not materialize.

35
Investors should note that each security's price or value may rise or fall and accordingly,
investors may even receive the amounts, which are less than originally invested. Past
performance is not necessarily a guide to future performance. Please carefully read the
detailed disclosures given at the end of every research report.

Contact:
Customer care
email: customercare@icicisecurities.com

Compliance Officer
Tel: +91-22-2288 2460 /70
email: complianceofficer@icicisecurities.com

SEBI Registration details:

NSE SEBI Registration Number Capital Market: - INB 230773037 | BSE SEBI
Registration Number Capital Market: - INB 011286854
NSE SEBI Registration Number Derivatives: - INF 230773037 | NSE SEBI Registration
Number Currency Derivatives: - INE 230773037

CICI Securities empowers over 2 million Indians to seamlessly access the capital market
with ICICIdirect.com, an award winning and pioneering online broking platform. The
platform not only offers convenient ways to invest in Equity, Derivatives, Currency
Futures, Mutual Funds but also other services Fixed Deposits, Loans, Tax Services, New
Pension Systems and Insurance are available. ICICIdirect.com offers a convenient and
easy to use platform to invest in equity and various other financial products using its
unique 3-in-1 account which integrates customers saving, trading and demat accounts.

Apart from convenience, ICICIdirect.com also offers access to comprehensive research

information, stock picks and mutual fund recommendations among other offerings.

36
Tailored services and trading strategies are available to different types of customers; long
term investors, day traders, high-volume traders and derivatives traders to name some.

ICICIdirect.com uses the most advanced commercially available 128-bit encryption

technology enabled Secure Socket Layer (SSL), to ensure that the information
transmitted between the client and ICICIdirect.com across the internet is safe and cannot
be accessed by any third party.

ICICIdirect.com is the first broker in India to introduce `Digitally Signed Contract Note'
to its customers. As a result, the process of generating contract notes has been automated
and the same would be instantly available to its customers in a safe and secure manner
through the website.

ICICI Securities has set-up neighborhood financial stores which offer a variety of
financial products and services under one roof. It is a one-stop shop that facilitates
existing and potential customers to speak to our team and understand their financial plans
and goals. ICICI Securities has 250 stores across 66 cities in India.

Another unique concept called the ICICIdirect Money Kitchen was launched in late 2009.
An extension of the superstore model, the money kitchen is an innovative financial store
where visitors can create their profiles to not only analyze their investment strategy by
using various financial tools but also monitor it from time-to-time.

To enable our customers to maximize their returns and plan for their future, ICICIdirect
has also started financial planning services at these stores. Customized financial plans can
be created for our customers by dedicated Relationship Managers who will understand
the customer's requirements and future goals.

Based on this information, the Relationship Manager works on creating a comprehensive

and easy-to-read financial plan. This enables ICICIdirect to move from just a
transactional based relationship to a meaningful and value-added long-term relationship
with our customers. ICICI direct services and offerings evolve according to the
customer's ever changing requirements and goals.

37
Customers can walk-in to the financial superstores for products like ICICIdirect 3-in-1
online trading account, equities, mutual funds, IPO, Life and General insurance, Fixed
Deposits and many other financial products. The stores also conduct periodic training
sessions on markets and demo sessions of the trading website

ICICI Securities understands the need for insightful research to make the right investment
decision. An independent equity research team provides strong and timely updates to
ensure that customer can avail of market opportunities.

The research team focuses on large cap as well as small mid-cap. Large cap companies
provide an overview of industry environments, while small and mid-cap companies are
chosen 'bottom-up', providing a unique perspective to a generally under-researched end of
the market. The focus is on identifying companies, which we believe are likely to
generate wealth for investors on a sustained basis through in-depth fundamental research.

We cater to the entire gamut of investment and return horizon requirements of an investor
through our flagship offerings like Detailed Company Report, Pick of the Week, Model
Portfolio, Stock on the Move, Daily & Weekly derivatives, Intra-day calls, Daily, Weekly
& Monthly Technical with a regular update on the performance of our calls.

The Active Trader Service is an innovative offering from ICICI Securities which is ideal
for those who are truly 'born traders'.

As a customer of the Active Trader Service, we assure you truly personalized service with
a dedicated relationship manager assigned to your account.

We have also set up a special research team who is focused on helping you achieve your
targets .The research team has developed a robust set of research products to help you
make informed investment decisions, depending on your risk profile, by analyzing
derivative market cues and other news as well as market and corporate information.

38
Some of the research products which we offer are as follows : Positional Calls, Technical
Picks, Momentum Picks, Roll Over Monitor, Open Interest Insight, Special Situation
Arbitrage, Pair Calls.

The Equity Advisory Group (EAG) is a team of advisors dedicated to providing

customers personalized advisory services. It is aimed at maximizing the customer's
investment returns and keeping him updated on the stock markets and the economy.

A Personal Equity Advisor will closely monitor the client's portfolio and keep him
updated on the latest happenings in equity market with the help of our fundamental and
technical research.

EAG services are customized according to the client's risk appetite and investment
horizon. A personal equity advisor, backed by our research team, provides the customer
with timely advice on the stock market.

The Wealth Management Group is a team of specialists who offer specific advisory
services to meet both personal and business wealth requirements of HNIs.

The team creates customized strategies to meet Customer's investment goals of wealth
accumulation, wealth preservation and liquidity. In addition to mutual funds, fixed
deposits and other traditional products, we also offer alternate investment avenues of
Private Equity, Structured / Customized products for investors with specific views on the
markets and Portfolio Protection Strategies for large investors.

The attempt is to bring world class investment products to our customers through over 15
centers of ICICIdirect.

ICICI Securities is the member of NSE & BSE and registered as Broker. It provides
business opportunity to entrepreneurs by registering them as Sub-Brokers / Authorized
Person. ICICI Securities provides trading terminals through which the Sub-broker can
offer a range of financial products like Equities, Derivatives, Currency Derivatives, IPO,
MF, Bonds, Fixed Deposits etc.

39
Another way to get associated with ICICI Securities, As an Independent financial Advisor
and gain access to a wide range of financial products like MF, IPOs, Bonds, Corporate
Fixed Deposits.

One can also be associated as an Investment Advisor to sell a range of financial products
like IPO, Bonds, Fixed Deposits, etc. to their set of customers. In addition, they cal also
sell asset products like Home Loans, Education Loans, etc. to the customers.

ICICI Securities facilitates access to capital for the growth engine of the Indian economy
which is the corporate sector including large, medium and small enterprises; both from
the public and private markets.

ICICI Securities' engagements include Equity Capital Markets, Private Equity

Intermediation and Public Issuance of Debt.

A team of professionals, which is organized by sector helps clients assess their business
models and advises them on specific financing alternatives. The company's advice is
based on the specific circumstances and strategic considerations relevant to the client.
ICICI Securities is a SEBI registered Category I Merchant Banker

Key Recent Deals

In FY2010, ICICI Securities has helped companies raise ~ US$ 1.86 billion through QIPs
and IPOs. (Source: Prime Database).

Some of the recent transactions for FY2010 and FY 2011 include:

IPOs

 Jaypee Infratech: In 2010, Book Running Lead Manager, Rs. 22.6 bn

 A2Z Maintenance & Engineering Services: In 2010, Book Running Lead
Manager, Rs. 8.6 bn
 Punjab & Sind Bank: In 2010, Book Running Lead Manager, Rs. 4.7 bn
 Nitesh Estates: In 2010, Book Running Lead Manager, Rs. 4.1 bn

40
  Shree Ganesh Jewellery House:: In 2010, Book Running Lead Manager, Rs. 3.7
bn
 Claris Life Sciences : In 2010, Book Running Lead Manager, Rs. 3 bn
 Parabolic Drugs: In 2010, Book Running Lead Manager, Rs. 2 bn
 Commercial Engineers & Body Builders Co: In 2010, Book Running Lead
Manager, Rs. 1.7 bn
 Adani Power: In 2009, Book Running Lead Manager, Rs. 30.2 bn
 JSW Energy: In 2009, Book Running Lead Manager to the IPO of Rs. 27 bn
 Godrej Properties: In 2009, Book Running Lead Manager, Rs 4.7 bn

Indian Depository Receipts (IDRs)

 Standard Chartered: In 2010, Syndicate Member? first-ever issuance of an IDR,

Rs. 24.8 bn

FPOs

 NTPC: In 2010, Book Running Lead Manager, Rs 84.8 bn

 Power Grid Corp. Of India: In 2010, Book Running Lead Manager, Rs 74.4 bn
 Rural Electrification Corporation: In 2010, Book Running Lead Manager, Rs
35.3 bn
 Shipping Corporation Of India: In 2010, Book Running Lead Manager, Rs 11.6
bn
 Engineers India: In 2010, Book Running Lead Manager, Rs 9.6 bn

Public Issue of Debt

 Shriram Transport Finance Company: In 2010 & 2009 , Lead Manager, Rs 15
bn
 L &T Infrastructure Finance Company: In 2010, Lead Manager, Rs 2.6 bn

QIPs

 Adani Enterprises: In 2010, Book Running Lead Manager, Rs. 40 bn

41
  GMR Infrastructure: In 2010, Lead Manager, Rs. 14 bn
 Lanco Infratech: In 2009, Book Running Lead Manager, Rs. 7.3 bn
 Alok Industries : In 2010, Book Running Lead Manager, Rs. 4.2 bn
 Network18 Media & Investments: In 2009, Book Running Lead Manager, Rs. 2
bn
 3I Infotech: In 2010, Book Running Lead Manager, Rs. 1.8 bn
 Texmaco: In 2009, Sole Book Running Lead Manager, Rs. 1.7 bn
 Adhunik Metaliks: In 2009, Book Running Lead Manager, Rs. 1.4 bn

Rights Issues

 Adani Enterprise: In 2010, Lead Manager, Rs. 14.8 bn

 IBN18 Broadcast: In 2010, Sole Lead Manager, Rs. 5.1 bn
 Television Eighteen India: In 2009, Lead Manager, Rs. 5.04 bn
 Infomedia18 : In 2009, Lead Manager, Rs. 1 bn Open Offer
 Fame India : In 2010, Sole Manager to the Offer, Rs. 1.8 bn
 Zenotech Laboratories : In 2010, Sole Manager to the Offer, Rs. 1.1 bn
 OCL Iron & Steel : In 2009, Sole Manager to the Offer, Rs. 0.56 bn

Delisting

 Sulzer India : In 2010, Sole Manager, Rs. 0.81 bn

 Lotte India Corp: In 2009, Sole Manager, Rs. 0.4 bn
 Avery India : In 2009, Sole Manager, Rs. 0.29 bn

Landmark Transactions

 Tata Motors: First Rights Issue of shares with Differential Voting Rights
 Tata Capital: First public issue of secured Non Convertible Debentures (NCD)
 Daiichi Sankyo Co: Sole Managers to the one of the largest open offers of Rs
68.2 bn
 Bharti Airtel: First 100% Book-Built IPO in India

42
  HP: First delisting transaction in Indian markets using the Reverse Book-building
mechanism
 Punjab National Bank: Initiated the Book Building mechanism for Public Sector
Banks
 NTPC: First FPO under alternate book building (French Auction) route
 Network 18 : First Rights Issue done on the basis of Partly Convertible
Cumulative Preference Shares with a three in one structure
 Television Eighteen : First IPO of a News Channel
 Maruti Suzuki: First Government Of India Divestment through IPO
 Sify: Sponsored ADR of an unlisted Indian company
 Man Industries (India): The first Indian offering on the Dubai Financial
Exchange to tap liquidity in the Middle East
 Infoedge India (Naukri.com): First IPO of a pure-play Internet Company in
India

ICICI Securities assists global institutional investors to make the right decisions through
insightful research coverage and a client focused Sales and Dealing team. A dedicated
and specialized research team ensures flow of well thought-out and well-researched stock
ideas and portfolio strategies.
The Sales and Dealing team has demonstrated strong sales and execution capabilities of
actionable ideas to clients which have resulted in good relationships across geographies.

ICICI Securities enjoys the first mover and market leader advantage in the derivatives
segment and offers the entire spectrum, from set-up to trading strategy.

The equity group leverages research and distribution reach to domestic and foreign
institutional investors in case of public offerings. The research team tracks over 15 key
sectors of the Indian economy and publishes in-depth research reports every year. The
equity group acts as a bridge for institutional investors and corporate clients with the
markets.

43
ICICI Securities is the first domestic Investment Bank to organize theme based
conferences in New York, Shanghai, Singapore & Hong Kong.

44
 CHAPTER-IV
DATA ANALYSES AND INTERPRETATION

45
 IPO Issues in 2013-2014

Equity Issue Price Current Price %Gain/Loss

January-2014

Suyog Tele 25.00 25.15 0.60

RCI Industries 40.00 36.15 -9.63

December-2013

Tentiwal Wire 13.00 11.50 -11.54

Captain Poly 30.00 38.00 26.67

November-2013

Stellar Capital 20.00 10.95 -45.25

Mitcon Cons 61.00 45.45 -25.49

October-2013

Amrapali Cap 100.00 100.00 0.00

VCU Data Mgmt 25.00 28.15 12.60

August-2013

Silverpoint 15.00 7.40 -50.67

June-2013

Edynamics Sol 25.00 57.30 129.20

Just Dial 530.00 1575.00 197.17

Onesource Tech 14.00 7.85 -43.93

April-2013

Repco Home 172.00 326.20 89.65

March-2013

46
Bothra Metals 25.00 26.25 5.00

HPC Bio 35.00 166.00 374.29

Channel Nine 25.00 108.50 334.00

Kavita Fabrics 40.00 108.50 171.25

Sunstar Realty 20.00 128.25 541.25

February-2013

Esteem Bio 25.00 184.00 636.00

47
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.

IPO Issues in 2012-2014

Equity Issue Price Current Price %Gain/Loss
January-2014
Eco Friendly 25.00 25.60 2.40
December-2013
Bharti Infratel 220.00 209.90 -4.59
PC Jeweller 135.00 141.90 5.11
CARE 750.00 820.35 9.38
Veto Switch 50.00 50.75 1.50
Tara Jewels 230.00 212.00 -7.83
November-2013
Bronze Infra 15.00 14.65 -2.33
October-2013
RCL Retail 10.00 9.70 -3.00
Anshus Clothing 27.00 31.50 16.67
September-2013
Comfort Comm 10.00 17.55 75.50
Thejo Engg 402.00 17.55 -95.63
SRG Housing Fin 20.00 21.25 6.25
Jointeca Edu 15.00 15.90 6.00
August-2013
Jupiter Infomed 20.00 24.50 22.50
Sangam Advisors 22.00 23.95 8.86
July-2013
VKS Projects 55.00 189.10 243.82
Max Alert Syste 20.00 94.95 374.75
May-2013
Monarch Health 40.00 142.50 256.25
Speciality Rest 150.00 173.40 15.60
Tribhovandas 120.00 226.25 88.54
April-2013
NBCC 106.00 158.15 49.20

48
MT Educare 80.00 107.60 34.50
March-2013
Olympic Cards 30.00 60.60 102.00
BCB Finance 25.00 25.00 0.00
MCX India 1032.00 1343.25 30.16
November-2012
Indo Thai Secu 74.00 10.70 -85.54
October-2012
Vaswani Ind 49.00 4.73 -90.35
M and B Switch 186.00 25.95 -86.05
Flexituff Inter 155.00 223.45 44.16
Taksheel Solut 150.00 8.36 -94.43

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 Rushil Decorand Onelife Capitalgot highest benefit respectively

49
IPO Issues in 2011

Equity Issue Price Current Price %Gain/Loss

November-2011
Indo Thai Secu 74.00 12.93 -82.53
October-2011
Vaswani Ind 49.00 10.99 -77.57
M and B Switch 186.00 68.30 -63.28
Taksheel Solut 150.00 13.53 -90.98
Flexituff Inter 155.00 249.70 61.10
Onelife Capital 110.00 299.20 172.00
Tijaria Polypip 60.00 8.94 -85.10
Prakash Constro 138.00 131.70 -4.57
September-2011
PG Electroplast 210.00 171.00 -18.57
SRS 58.00 34.25 -40.95
TD Power System 256.00 244.05 -4.67
Brooks Labs 100.00 14.08 -85.92
August-2011
Tree House Edu 135.00 214.15 58.63
L&T Finance 52.00 48.95 -5.87
Inventure Grow 117.00 210.20 79.66
July-2011
Readymade Steel 108.00 63.75 -40.97
Birla Pacific 10.00 7.01 -29.90
Rushil Decor 72.00 161.05 123.68
June-2011
Timbor Home 63.00 28.70 -54.44
VMS Industries 40.00 44.55 11.37

50
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 Rushil Decor and Onelife Capital got highest benefit
respectively.

51
TABLE SHOWING SCRIPS OF FINANCIAL SERVICES

DIFFRENC
ISSUE
DATE OF PRICE ISSUE BETWEEN
S.NO NAME OF THE ISSUE SIZE LTP
ISSUE RANGE PRICE ISSUE PRIC
(LAKHS)
&LTP
Motilal Oswal Financial 20/08/13-
1 29.8271 725-825 825 971.20 +146.20
services Ltd 23/08/13
ICRA Ltd 20/03/13-
2 25.811 275-330 330 1030 +700
23/03/13
Power finance 31/01/13-
3 1173.167 73-85 85 200.90 +115.90
Corporation Ltd 06/02/13
Transwarranty Finance 23/01/13-
4 60 48-55 52 29.15 -22.85
Ltd 02/02/13
Emkay share&stock 31/03/12-
5 62.50 100-120 120 140.10 +20.10
brokers Ltd 07/04/12
Mahindra&Mahindra 21/02/12-
6 200 170-200 200 233.95 +33.95
Financial services Ltd 24/02/12
Infrastructure
15/07/11-
7 development Financial 4036 29-34 34 140.10 +106.10
22/07/11
co. Ltd
IL&FS Investment Ltd 04/07/12-
8 114 110-125 125 194.10 +69.10
08/07/12
India Infoline Ltd 21/04/11-
9 118.78138 70-80 76 849.50 +773.50
27/04/11
Indian Bulls Financial 06/10/10-
10 271.87519 16-19 19 593.10 +574.10
Services Ltd 10/09/10

52
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 , Transwarranty
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 (+)146.20, (+)700 , (+) 115.90 ,
(-)22.85 , (+)20.10 , (+)33.95 , (+)106.10 , (+)69.10 , (+)773.50 , (+)574.10 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.

53
 It can be concluded that the all the above scrip’s are under priced
except Transwarranty Finance Ltd, which is overpriced.

TABLE SHOWING SCRIPS OF ELECTRONICS & ELECTRICAL

DIFFERENCE
ISSUE PRICE
NAME OF DATE OF ISSUE BETWEEN
S.NO SIZE RANG LTP
ISSUE ISSUE PRICE ISSUE PRICE
(LAKHS) E
& LTP
MIC
30/04/13-
1 Electronics 51 129-150 150 525.05 +375.05
08/05/13
Ltd
Redington 22/01/13-
2 132.31 95-113 113 320 +207
(Indian) Ltd 25/01/13
Autoline 08/01/13-
3 37.5 200-225 225 209.95 -15.05
Industries Ltd 12/01/13
FIEM 21/09/11-
4 41 125-145 137 102.95 -34.05
Industries Ltd 27/09/11
Voltamp
24/08/11-
5 Transformers 48.8384 295-345 345 1342.25 +997.25
29/08/11
Ltd
Opto
31/03/11-
6 circuits(India) 40 240-270 270 532 +262
05/04/11
Ltd

54
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 (+) 375.05 , (+)207 , (-)15.05 ,
(-) 34.05, (+) 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.375.05, Rs.262, and
Rs.207 respectively.
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.

TABLE SHOWING SCRIPS OF INFRASTRUCTURE

S.NO NAME OF DATE ISSUE PRICE ISSUE LTP DIFFRENCE

THE ISSUE OF THE SIZE RANGE PRICE BETWEEN
ISSUE (LAKHS) ISSUE PRICE

55
 & LTP
IVR Prime
Urban 23/07/13-
1 141.5 510-600 550 407.95 -142.05
developers 26/07/13
Ltd
DLF Ltd 11/06/13-
2 29 150-175 175 757.45 +582.45
14/06/13
Lanco 06/11/11-
3 444.72381 200-240 240 363 +123
Infratech Ltd 10/11/11
Atlanta Ltd 01/09/11-
4 43 130-150 150 285.90 +135.90
07/10/11
GMR
31/07/11-
5 Infrastructur 381.3698 210-250 210 807.65 +597.65
04/08/11
e Ltd.
Patel
03/05/10-
6 Engineering 106.24965 400-440 440 470.10 +30.10
09/05/10
Ltd
AIA
17/11/10-
7 Engineering 47 275-315 315 1396.50 +1081.50
22/11/10
Ltd
IVRCL
Infrastructur 18/03/10-
8 31.89870 385-415 395 415.40 +20.40
e & Projects 23/03/10
Ltd

56
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 , (+)123 ,
(+)135.90 , (+)597.65 , (+)30.10 , (+)1081.50 , (+)20.40 and IVR Prime Urban
developers Ltd is (-)142.05.
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.(-)142.05 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.

57
 TABLE SHOWING SCRIPS OF TOYS AND TEXTILES

DIFFERENCE
DATE ISSUE
NAME OF PRICE ISSUE BETWEEN
S.NO OF SIZE LTP
THE ISSUE RANGE PRICE ISSUE PRICE &
ISSUE (LAKHS)
LTP
Gangothri 18/05/11-
1 134.14634 41-46 41 21.05 - 19.95
textiles ltd 23/05/11
Mudra 08/02/13-
2 95.8 75-90 90 66.40 - 23.60
Lifestyle ltd 14/02/13
Indus Fila 12/02/13-
3 48.43789 170-185 170 216.30 + 46.30
Ltd 14/02/13
Kewal kiran 20/03/11-
4 31 250-275 260 300 + 40
clothing Ltd 23/03/11
Raj Royan 12/01/11-
5 85 55-65 65 23.80 - 41.20
Ltd 18/01/11
Nitin 06/01/11-
6 222.22222 18-21 21 13.50 - 7.50
Spinners Ltd 12/01/11
Ginni
19/12/10-
7 Filaments 252.63158 19-22 22 13.90 - 8.10
23/12/10
Ltd
Celebrity 19/12/10-
8 45.50 160-180 180 67.40 - 112.60
Fashions Ltd 22/12/10
Bombay
11/11/10-
9 Rayon 134.75 60-70 70 248 + 178
17/11/10
Fashion Ltd
Provogue 10/06/10- + 736
10 40.49402 130-150 150 886
(India) Ltd 16/06/10

58
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 (-)19.95 , (-)23.60 , (+)46.30 ,
(+)40 , (-)41.20 , (-)7.50 , (-)8.10 , (-)112.60 , (+)178 , (+)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
Fashion Ltd and Provogue (India) Ltd got benefit of Rs.46.30 , Rs.40 , Rs.178 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.

59
TABLE SHOWING SCRIPS OF AVIATION INDUSTRY

DIFFERENCE
DATE ISSUE
NAME OF PRICE ISSUE BETWEEN
S.NO OF SIZE LTP
THE ISSUE RANGE PRICE ISSUE PRICE
ISSUE (LAKHS)
& LTP
Global
29/09/11-
1 Vectra 35 175-200 185 188 +3
06/10/11
Helicop Ltd
Deccan 18/05/11-
2 245.46 146-175 148 143.70 - 4.30
Aviation ltd 26/05/11
Jet Airways 18/02/10- 950-
3 172.66801 1100 912.60 - 187.40
(India) Ltd 24/02/10 1125

60
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 (-)187.40 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 187.40 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.

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 Ltd 11/12/11-
1 3287.99675 160-190 160 173.35 + 13.35
15/12/11
Reliance 13/04/11-
2 4500 57-62 60 134.45 + 74.45
petroleum Ltd 20/04/11
Gujarat state 24/01/11-
3 1380 23-27 27 60.85 + 33.85
Petronet Ltd 28/01/0\11
Oil & Natural
05/03/09-
4 Gas 1425.93300 680-750 750 912.55 + 162.55
13/03/09
Corporation Ltd
Gas Authority 27/02/09-
5 845.6516 195 195 348.95 + 153.95
of India Ltd 05/03/09
Indian
20/02/09-
6 Petrochemicals 718.5006 170 170 429.05 + 259.05
27/02/09
Corporation Ltd

61
 Indra Prastha 28/11/08-
7 400 40-48 48 120.10 + 72.10
Gas Ltd 05/12/08

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 (+)13.35 , (+)74.45 , (+)33.85 , (+)162.55 , (+)153.95 ,
(+)259.05 , (+)72.10 respectively.

62
 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.259.05 and Rs.162.55 respectively.
It can be concluded that the all the above scrip’s are under priced.

TABLE SHOWING SCRIPS OF IT SERVICES / TECHNOLOGIES

DIFFERENCE
DATE ISSUE
NAME OF PRICE ISSUE BETWEEN
S.NO OF SIZE LTP
THE ISSUE RANGE PRICE ISSUE PRICE
ISSUE (LAKHS)
& LTP
Everonn
05/07/13-
1 Systems India 5000 125-140 140 752.50 + 612.50
11/07/13
Ltd
Take Solutions 01/08/13-
2 21 675-730 730 1043.20 + 313.20
Ltd 07/08/13
HOV Services 04/10/11-
3 40.50 200-240 200 183.20 - 16.80
Ltd 07/10/11
Tech mahindra 01/08/11-
4 127.46 315-365 365 1317.50 + 952.50
Ltd 04/08/11
Tulip IT 09/12/10-
5 90 100-120 120 880 + 760
Services Ltd 15/12/10
Info Edge 30/10/11-
6 53.23851 290-320 320 1106.05 + 786.05
(India) Ltd 02/11/11
Tata
29/07/09-
7 Consultancy 554.526 775-900 850 1001 + 151
05/08/09
Services Ltd

63
 Datamatic Tech 12/04/09-
8 103 101-110 110 44.50 - 65.50
Ltd 19/04/09
CMC Ltd 23/02/09-
9 39.76374 485 485 1010 + 525
28/02/09
Educomp 19/12/10-
10 40 110-125 125 3015 + 2890
Solutions Ltd 22/12/10

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 ,
Educomp Solutions Ltd , I-Flex Solutions is (+)612.50, (+)313.20 , (+)952.50 , (+)760 ,
(+)786.05 , (+)151 , (+)525 , (+)2890 , (+)1335 and HOV Services Ltd , Datamatic Tech
Ltd is (-) 16.80 , (-)65.50 respectively.

64
 Based on LTP and Issue price differences we can conclude that the
investor who invested in Educomp Solutions Ltd, I-Flex Solutions and Tech mahindra
Ltd got more gain of Rs.2890, Rs.1335 and Rs.952.50 and the investor of HOV Services
Ltd, Datamatic Tech Ltd got loss of Rs.16.80, 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

DIFFERENCE
DATE ISSUE
NAME OF PRICE ISSUE BETWEEN
S.NO OF SIZE LTP
THE ISSUE RANGE PRICE ISSUE PRICE
ISSUE (LAKHS)
& LTP
Indowind 21/08/13-
1 125 55-65 65 130.25 + 65.25
Energy Ltd 24/08/13
Godawari Power 28/03/11-
2 86.95 70-81 81 226.50 + 145.50
& Ispat Ltd 04/04/11
Gujarat
13/10/10-
3 Industries Power 317.4597 63-75 68 79.70 + 11.70
19/10/10
co. Ltd
Suzlon Energy 23/09/10-
4 293.40 425-510 510 1465 + 955
Ltd 29/09/10
National
07/10/09-
5 Thermal Power 8658.30 52-62 62 191.60 + 129.60
14/10/09
Corporation Ltd
GVK Power &
02/02/11-
6 Infrastructure 82.75556 260-310 310 584.05 + 274.05
07/02/11
Ltd
JaiPrakash
22/03/10-
7 Hydro-power 1800 27-32 32 53.80 + 21.80
29/03/10
Ltd
Power Trading
01/03/09-
8 Corporation of 584.9999 14-16 16 85.10 + 69.10
08/3/09
India Ltd
9 Petronet LNG 01/03/08- 2609.799 13-15 15 68.55 + 53.55

65
 Ltd 09/03/08

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 , (+)145.50 , (+)11.70 , (+)955 , (+)129.60 , (+)274.05
, (+)21.80 , (+)69.10 , (+)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.274.05 respectively.

66
It can be interpreted the conclusion all the above scrip’s are under priced.
TABLE SHOWING SCRIPS OF MEDIA & ENTERTAINMENT /
BROADCAST /FILM INDUSTRY

DIFFER
ENCE
DATE ISSUE
NAME OF PRICE ISSUE BETWEE
S.NO OF SIZE LTP
THE ISSUE RANGE PRICE N ISSUE
ISSUE (LAKHS)
PRICE &
LTP
Raj Television 14/02/13-
1 35.6825 221-257 257 222.25 - 34.75
Network Ltd 23/02/13
Broadcast 09/02/13-
2 85.5 100-120 120 57.60 - 62.40
Initiatives Ltd 14/02/13
Global
15/01/13-
3 Broadcast 105 crore 230-250 250 912 + 662
18/01/13
News Ltd
Prime Focus 25/05/11-
4 100 crore 417-500 417 1040 + 623
Ltd 03/06/11
Sun TV Ltd 03/04/11-
5 68.89 730-875 875 347 - 528
07/04/11
PVR Ltd 08/12/10-
6 74 200-240 225 209.30 - 15.70
14/12/10
UTV Software
21/02/10-
7 communication 69.99950 115-130 130 595.05 + 465.05
25/02/10
Ltd
TV Today 18/12/09-
8 145 80-95 95 151 + 56
Network Ltd 27/12/09

67
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 , (-)15.70 , (+)465.05 ,
(+)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.465.05 ,
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.15.70 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

68
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

TABLE SHOWING SCRIPS OF MANUFACTURING INDUSTRY

DIFFEREN
CE
ISSUE
NAME OF DATE OF PRICE ISSUE BETWEEN
S.NO SIZE LTP
THE ISSUE ISSUE RANGE PRICE ISSUE
(LAKHS)
PRICE &
LTP
Bharat
27/06/10- 1020-
1 Earthmovers 49 1075 1246.20 + 171.20
03/07/10 1090
Ltd
Decolight 24/05/10-
2 4254.60 45-54 54 28.45 - 25.55
ceramics Ltd 29/05/10
Nissan Copper 04/12/09-
3 2500 33-39 39 33.15 - 5.85
Ltd 08/12/09
NITCO Tiles 22/02/09-
4 100 140-168 168 241.50 + 73.50
Ltd 27/02/09
Gitanjali Gems 16/02/11-
5 170 170-195 195 295.50 + 100.50
Ltd 21/02/11
Triveni
18/11/10-
6 Engineering & 500 42-50 48 136.55 + 88.55
25/11/10
Industries Ltd
Shree Renuka 07/10/10-
7 40 250-300 285 700.50 + 415.50
Sugars Ltd 14/10/10
Emami Ltd 04/03/10-
8 50 60-70 70 222.30 + 152.30
10/03/10
Bharathi 02/12/09-
9 125 55-66 66 558.55 + 492.55
Shipyard Ltd 08/12/09
Maruthi 12/06/08-
10 794.676 115 125 920.25 + 795.25
Udyog Ltd 19/06/08

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70
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 (+)171.20 , (-)25.55 ,
(-)5.85 , (+)73.50 , (+)100.50 , (+)88.55 , (+)415.50 , (+)152.30 , (+)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.415.50 respectively.
It can be interpreted the conclusion all the above scrip’s are under
priced except Decolight ceramics Ltd and Nissan Copper Ltd which is overpriced.

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TABLE SHOWING SCRIPS OF PHARMA / CHEMICAL /HEALTH /
BIO-PHARMA INDUSTRY

DIFFERENCE
DATE ISSUE
NAME OF PRICE ISSUE BETWEEN
S.NO OF SIZE LTP
THE ISSUE RANGE PRICE ISSUE PRICE
ISSUE (LAKHS)
& LTP
Advanta India 26/03/13-
1 33.8 600-650 640 1036 + 396
Ltd 30/03/13
AMD Metplast 15/02/13-
2 90.9652 65-75 75 45.70 - 29.30
Ltd 23/02/13
SMS
05/02/12-
3 Pharmaceuticals 25.77 360-380 380 293.45 - 86.55
08/02/12
Ltd
Plethico
10/04/11-
4 Pharmaceuticals 39.2856 280-300 300 402 + 102
17/04/11
Ltd
Nectar Life 22/06/10-
5 38.70 200-240 240 248.50 + 8.50
sciences Ltd 28/06/10
Indoco 17/12/09-
6 30 220-245 245 246.75 + 1.75
Remedies Ltd 23/12/09

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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 , (+)102 ,
(+)8.50 , (+)1.75 , (+)123.30 , (+)136.95 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.136.95 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.

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 CHAPTER-V

 FINDINGS
 SUGGESSIONS
 CONCLUSIONS
 BIBLIOGRAPHY

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FINDINGS:

 The IPO returns are more when comparing with nifty returns for the year 2006 to
2014.
 Just Dial, Educomp Solution, Rushil Decorand Onelife Capitalhas 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.

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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.

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CONCLUSIONS

 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 Educomp Solutions 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.

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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.nseindia.com
 www.capitalmarket.com
 www.sebi.com
 www.google.com
 www.icicisecurities.com

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