RESEARCH METHODOLOGY

Problem Statement Research Objectives: Primary Objective Secondary Objectives Research Design: Type of Design Sampling:
Sample population- IPO rated company and Investor Sample size- 50 rated Equity share, 125 IPO investor Sampling method- Nonprobability convenience sampling Scope of the study- BSE And NSE

RESEARCH METHODOLOGY
Data Collection Method: Primary and Secondary Tools for Analysis:
Regression analysis Percentage analysis Graphical presentation Cross tabulation Chi-square test

Limitations of the Study

DATA ANALYSIS AND INTERPRETATION

IPO Rating V/s Price:
Variable-X: Grade Assigned Variable-Y: % Increase/Decrease in 1st day Price r=-0.0011 (Inverse Correlation)

IPO Rating V/s Volume:

Variable-X: Grade Assigned Variable-Y: % Increase/Decrease in 1st day volume r= 0.30829 (Positive Correlation)

TEST APPLICATION
X2 Tab Ho Accepted/ Correlati Rejected on?

Particulars A) Demographic Information: Gender V/s Investment Decision Age V/s Investment Decision Occupation v/s Investment Decision

X2 Cal

2.139 3.841 Accepted No 2.523 9.488 Accepted No 6.97 9.488 Accepted No 9.488 Accepted 24.99 Rejected 18.31 Accepted No Yes No

Income v/s Investment Decision 5.32 B) Other Information: Trading Duration V/s Return 33.47 Informed Decision V/s Return 14.87 Frequency of Grade consideration V/s Return 49.10 Perception V/s Return 16.71 Experience V/s Return 39.09

18.31 Rejected 18.31 Accepted

31.41 Rejected

Yes No
Yes

FINDINGS
Inverse correlation between the rate assigned and stock performance. Direct correlation between grade assigned and volume 76.8% respondent known about the IPO grading no correlation between information available and return correlation between the experience with previous IPO and return in current IPO investment 89% believes grade assigned to stock does not affects their confidence level 65% believes grade does not help in taking informed decision 63% believe there is no correlation between the grade assigned to stock and its performance 19% believe investor should not give priority to the grade assigned while taking investment decision.

CONCLUSION
Grade could not consider as investment decision supporter Inefficiency of the investment banker Role of Speculator in IPO

RECOMMENDATION
SEBI should give proper attention in New Issue Market Bankers highlight only the good qualities of a firm which should removed There should be some amount of introspection by the investment banks so that the investors confidence in the primary market

Thank You