Submitted ToGuru Nanak Dev University, Amritsar In partial fulfilment of the degree in Master of Business Administration (MBA).
Project submitted to:
Dr. Bikramjit Singh Mann
Shikha Dhir MBA 3rd semester GNDU, Amritsar
(Session 2010-2012) Guru Nanak Dev University, Amritsar
This project entitled Empirical Study on “CAPITAL MARKET” is submitted in partial fulfilment of the requirement for the award of degree of master of business administration of Guru Nanak Dev University, Amritsar. This research work is done by Shikha Dhir. This research work has been done only for MBA only and none of this research work has been submitted for any other degree. The assistance and help during the execution of the project has been fully acknowledged.
This is to certify that the project report on the capital market is a bonafide project work done by Shikha Dhir, a full time student of the school of management studies GNDU, in partial fulfilment of the requirement for the award of the degree of Master of business Administration, GNDU.
I wish to express my deep sense of gratitude to, Dr B.S.Mann the supervision and support that he gave truly help the progression and smoothness of this report. The special thank goes to my Internal Guide, Mr Karan kapur, for their able guidance and useful suggestions, which helped me in completing the project work, in time. Needless to mention my thanks to Ms Hazel Dhir, who had been a source of inspiration and for her timely guidance in the conduct of my project work. Finally, yet importantly, I would like to express my heartful thanks to my beloved parents for their blessings, my friends and classmates for their help and wishes for the successful completion of this project.
As we all know IPO – INITIAL PUBLIC OFFERING is the hottest topic in the current industry, mainly because of India being a developing country and lot of growth in various sectors which leads a country to ultimate success. And when we talk about country’s growth which is dependent on the kind of work and how much importance to which sector is given. And when we say or talk about industries growth which leads the economy of country has to be balanced and given proper finance so as to reach the levels to fulfil the needs of the society. And industries which have massive outflow of work and a big portfolio then it’s very difficult for any company to work with limited finance and this is where IPO plays an important role.
TABLE OF CONTENTS
PARTICULARS Declaration Guide certificate Acknowledgement Preface
1. 2. 3. 4. 5. 6. a b c d e f g h i j k
Ludhiana stock exchange Introduction to Capital market Capital market in India Types of capital market Capital market securities in India Initial public offering Introduction on IPO Different kinds of issue Underwriting process Process of IPO Significance of IPO Advantages and disadvantages of IPO Parameters to judge IPO Principal steps in IPO SEBI guidelines Pricing of IPO Risk factor 6
8 16 18 20 24 25 25 28 30 32 33 34 37 39 42 45 46
S.NO l m n Risk assessment Marketing of IPO Top IPO’S in India Bibliography
PAGE NO. 47 48 51 54
LUDHIANA STOCK EXCHANGE
The Ludhiana Stock Exchange Limited (LSE) was established in 1981, by Sh. S.P. Oswal of Vardhman Group and Sh. B.M. Munjal of Hero Group, leading industrial luminaries, to fulfil a vital need of having a Stock Exchange in the region of Punjab Himachal Pradesh Jammu & Kashmir and Union territory of Chandigarh. Since its inception, the stock exchange has grown phenomenally. The stock Exchange has played an important role in channelizing savings into capital for the various industrial and commercial units of the state of Punjab and other parts of the company. The Exchange has facilitated the mobilization of funds by...