Preview

“Investment in Ipo: an Analysis”

Powerful Essays
Open Document
Open Document
14922 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
“Investment in Ipo: an Analysis”
PROJECT ON
“INVESTMENT IN IPO: AN ANALYSIS”
Submitted in partial fulfillment of the requirements
For the award of the degree of
Master of Business Administration (2006-2008)

TABLE OF CONTENTS

* ABSTRACT……………………………………………………2 * INTRODUCTION ABOUT IPO………………………………..9
-EVOLUTION AND GROWTH OF INDIAN PRIMARY MARKET
-REGULATORY FRAMEWORK
-PROCEDURE FOR IPO
-BUY BACK OF SHARES
-ROLE OF INTERMEDIARIES
-IPO GRADING * REVIEW OF LITERATURE * RESEARCH METHODOLOGY * ANALYSIS AND INTREPRETATION * FINDINGS AND CONCLUSIONS * SUGGESTIONS * REFERENCES

ABSTRACT
This project gave me a great insight about the IPO and its Process. The purpose of this Project was to understand the IPOs that were issued in the last 2-3 months; buyback of shares; IPO Grading and Reforms in IPO Process.
The IPO was an extensive learning experience in which I involved myself with the live issues hitting the market. I began my study by going through the SEBI guidelines regarding eligibility norms, pricing structure, requirements of the promoters and their obligations, post issue obligations, book building guidelines etc.
I enhanced my understanding over IPO issues of various companies by going through their Bid-cum application forms and the Red-Herring prospectus, which contained all the information regarding the issue, purpose of the issue, all the financials and results for the past 3-5 years and many other details which are required by an investor for a sound analysis.
Proper study of few IPOs has been done by going through their past financials, business structure, investments, expansion strategies, growth potential, valuations etc.
The Project report starts with defining the various public issues with the need for the company to take out an IPO. It goes on further to explain the advantages of an IPO. It analyses in detail the Indian IPO Scenario. It explains the evolution of the IPO in India and explains how



References: 1. Khan M. Y .and Jain. P.K (2005). Financial management. Pearson publications WEBSITES

You May Also Find These Documents Helpful

  • Good Essays

    Riordan Manufacturing

    • 549 Words
    • 3 Pages

    An Initial Public Offering (IPO) is the first time a company issues stock to the public. According to Bateman and Snell, “Initial public stock offerings (IPOs) offer a way to raise capital through federally registered and underwritten sales of shares in the company” (2011, pg. 255). There are various advantages to going public. An IPO may raise capital, reduce debt, improve the balance sheet, and enhance net worth. Riordan may be able to pursue unaffordable opportunities and improve credibility with customers. Investors may be attracted to the company now.…

    • 549 Words
    • 3 Pages
    Good Essays
  • Better Essays

    FIN 516 IPO Paper

    • 1324 Words
    • 4 Pages

    An Initial Public Offering (IPO) is when a private company sells its first stock to the public. This is usually done by company’s who are smaller and or “younger” looking to raise capital in order to expand. It can however be done by larger private companies that want to become public. IPO’s can be a risky investment, as the investors do not know how the stock will do on its first day of trading, in addition, there are not much historical data either. In August 2010, Gevo Inc., filed for IPO with the SEC, which went public in January 2011.…

    • 1324 Words
    • 4 Pages
    Better Essays
  • Powerful Essays

    For a private company to raise money in the financial markets an initial public offering (IPO) has some advantages. One of the first benefits is generating revenue from the sale of shares of stock in the company. The company’s owners gain liquidity in their share of the company. This liquidity makes it easier for the owners to sell their interests in the company. Going public gives the company access to the public markets in the…

    • 1586 Words
    • 7 Pages
    Powerful Essays
  • Better Essays

    One of the first advantages of an IPO that a company will realize is an increase in…

    • 2183 Words
    • 9 Pages
    Better Essays
  • Good Essays

    The financial weaknesses of this IPO include the incurring of fees, and will require significant capital on our end. These fees vary from legal, accounting, underwriting, and printing cost. All of which are necessary to create our offering. There are also disclosure weaknesses which are caused by Sarbanes-Oxley compliance; there are costs associated with remaining these compliances. We will have to increase our filing, reporting and disclosure procedures. Our company will also be vulnerable to stock price manipulation. Individuals can manipulate share prices through processes like pump and dump, wash trade and more. Regardless of the weaknesses we would face with an IPO, our stock price would mainly be influenced by the growth of the profits our company…

    • 1308 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    Rosetta Stone Ipo

    • 4823 Words
    • 20 Pages

    Ritter, J. (2011), “The Market 's Problems with the Pricing of Initial Public Offerings”, retrieved 29 March, 2012 from http://bear.warrington.ufl.edu/ritter/ipoisr.htm…

    • 4823 Words
    • 20 Pages
    Powerful Essays
  • Best Essays

    Ldr 531 Week 5

    • 2421 Words
    • 10 Pages

    Gene One is a biotechnology company based in Phoenix, Arizona. The company main business is agriculture development and research. The current ownership wants to meet the goal of 40% growth by raising funds from issuing public stocks (University of Phoenix Scenario, 2005). The key stakeholders have a variety of opinions in what changes must be made for a successful IPO. The paper will address how Gene One must adopt changes and address all stakeholders for an optimal solution.…

    • 2421 Words
    • 10 Pages
    Best Essays
  • Powerful Essays

    Fin 501 Case 1 studymde

    • 1645 Words
    • 6 Pages

    For the purpose of this first module's case assignment students were assigned the task of reading various articles from the background in order to learn about the differences between traditional Initial Public Offerings and alternative online auctions such as the Dutch auction.…

    • 1645 Words
    • 6 Pages
    Powerful Essays
  • Best Essays

    Initial Public Offering is a rigorous process where a firm decides to go public in order to enable it raise capital for the company that will enable it to fund its operations such as expansion plans, generate profits as well as make its investors happy. For the IPO to go successfully there are a number of important factors and players that come into consideration. These include investment bankers, underwriters, pricing, demand and supply among other important factors.…

    • 1182 Words
    • 4 Pages
    Best Essays
  • Better Essays

    Jetblue Ipo

    • 1236 Words
    • 5 Pages

    Deriving a value for an IPO is the critical part of the process. In both fixed price and book building offers some form of initial price must be determined by the investment bank. Key methods are used to determine the value of a company and thus the initial IPO price includes:…

    • 1236 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    First of all, the Initial Public Offering (IPO) procedure involves evaluation of business procedures, intense scrutiny by the Securities and Exchange…

    • 1406 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    Netflix Ipo

    • 799 Words
    • 4 Pages

    Selecting a lead underwriter is an important decision for a company who is pursuing an IPO; it is important that the underwriter offer the company what they are looking for in terms of price and dollar amount. The company is looking for an underwriter who has a good reputation, set of skills and ability to complete the underwriting. The amount of leverage that the company has towards ensuring the underwriter follows through on the company’s expectations is determined by how much business the company can bring after the offering; in other words, the more potential businesses the company can bring, the more the bank is going to take care of them. One important part of the offering process is the writing of the Prospectus, we consider that this document should be…

    • 799 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Boston Beer HBS Case

    • 1528 Words
    • 5 Pages

    Boston Beer, in response to consumers’ preference changes to more flavorful and bitter tasting brews, was founded in 1894. Boston Beer implements a “quality at any cost” strategy with a strong emphasis on product differentiation and implementing quality ingredients into its products. For instance, Boston Beer was the first company to employ a stamped freshness date on its bottles and ingredients are imported from around the world. Additionally, Boston Beer relies heavily on contract brewing to gain competitive advantages. Boston Beer’s contract brewing strategy results in lower overhead and transportation costs, as well as greater manufacturing flexibility. The expenses Boston Beer saves through contract brewing allows for an increased marketing budget and intensive sales force, which is greatly important for differentiating products in a saturated market. Boston Beer’s strategy appears to be paying off; from 1990 to 1995, its geometric average sales growth and gross margin were 40.4% and 54.4%, respectively. However, Boston Beer is less efficient that some of its competitors; its operating margin of 6.7% is nearly four times lower than Redhook Ale Brewing Company—but its margin is greater than Pete’s Brewing Company.…

    • 1528 Words
    • 5 Pages
    Good Essays
  • Better Essays

    Ktm Case Report

    • 2977 Words
    • 12 Pages

    Kelley, J., Burke, R., & Markham, J. (2011). Is Your Company IPO-Ready?. Corporate Finance Review, 15(5), 23-27.…

    • 2977 Words
    • 12 Pages
    Better Essays
  • Powerful Essays

    IPO underpricing

    • 909 Words
    • 4 Pages

    All firms need to raise capital at one time or another to finance new projects, expand operations, or in many cases, just to start up their business. One of the best ways that newer and less established companies have found to raise quick capital is to make a stock offering. Initial public offerings (IPOs) have historically had very large initial first day gains com- pared to the performance of the rest of the market. Historically, IPOs were underpriced by roughly 16% according to an industry expert at Stein, Roe & Fonham. However, in recent months, some IPOs have seen first day run- ups of as much as 200 to 400 percent, and the trend for the future is likely to increase.…

    • 909 Words
    • 4 Pages
    Powerful Essays