Performance of Ipo

EXECUTIVE SUMMARY Towards the fulfillment of project program, a study was conducted at Stock Holding Corporation of India Ltd., Bangalore. The corporate exposure learning program involved in the study of Investors Perception on IPO’s and to analyze the selected IPO’s in the year 2006. Among various modes of raising fresh capital, the equity issue started gaining momentum in India during early 1980’s. It reached the peak during early 1990’s. Many companies made public issue during the year 2006. These companies raised funds by placing a high premium on the issue. Today most of these companies are trading not up to the expectation. The main objective of this study is to know the perception of the investors investing on IPO’s through SHCIL. And to anlayse the investment pattern of the investors on IPO’s. The study is being done from the investors point of view based on criteria of certain factors like issue price, listing price, and performance of these shares in a period of three months after the listing. For this study, top 10 companies which have highest issue size have been chosen. After a rigorous analysis of each company it was found that majority of the companies except one were over priced and are now generating negative returns. This study also covers investors’ perception and preferences on IPO’s. It was found from the study that investors are happy with the performance of the IPO’s in India. They invest in IPO’s because of better returns. Most of the respondents feel better investing in IPO’s than investing on shares in secondary market, because they are satisfied with the returns and the security to their investment.

INTRODUCTION Initial public offering (IPO) refers to the offering of stock in a company to the public through the public market. In financial markets, an initial public offering is the first sale of a company 's common shares to public investors. The company usually issues primary shares, but may