A PROJECT REPORT ON

STUDY OF IPOs RECENTLY LISTED ON STOCK MARKET

SUBMITTED TO
DEPARTMENT OF BUSINESS ADMINISTRATION
IN THE PARTIAL FULFILLMENT OF
THIRD YEAR BACHELOR OF BUSINESS
ADMINISTRATION
DEGREE OF SAVITRIBAI PHULE PUNE UNIVERSITY
SUBMITTED BY
OM SAHEBRAO AHER
ROLL NO. 01
GUIDED BY
PROF. SHITAL INDANI

KARMAVEER KAKASAHEB WAGH ARTS, COMMERCE, SCIENCE

&
COMPUTER SCIENCE COLLEGE, NASHIK
2023-2024

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 ACKNOWLEDGEMENT

In the beginning, I want to elucidate that this project would have been a distant
without the grace of almighty god, who has blessed me with a crop of knowledge
from his mighty ocean.
First, I would like to thank Savitribai Phule University for providing me an
opportunity to undertake a project as a partial fulfilment of BBA degree. Special
thanks to all those people who guided us the process and provide us knowledge
about their business flow.
I greatly appreciate the staff of the surveyed business unit, who responded
promptly and enthusiastically to all my queries despite their busy schedules. I am
indebted to all of them, who did their best to bring improvements through their
suggestions. I would like to thanks our guide. Prof. Shital Indani whose valuable
guidance and encouragement at every phase of the project has helped me to
prepare this project successfully. Finally, I would like to express my sincere
thanks to my family, all the faculties, office staff, and library staff of K. K. Wagh
College, Nasik and friends who helped me in some or other way in making this
project.

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 DECLARATION BY THE STUDENT

I declare that the Project Report entitled A STUDY OF IPOs RECENTLY

LISTED ON STOCK MARKET submitted by me for the degree of Bachelor of
Business and Administration (BBA) is the record of work carried out by me
during the period from 2023 to 2024 under the guidance of PROF.SHITAL
INDANI and has not formed the basis for the award of any degree, diploma,
associateship, fellowship, titles in this or any other University or other institution
of Higher learning. I further declare that the material obtained from other sources
has been duly acknowledged in the project.

DATE: - Signature of the Student

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 TABLE OF CONTENTS

SR. PARTICULARS PAGE

NO NO.
1. ABSTRACT 5

2. INTRODUCTION 7

3. OBJECTIVE OF STUDY 10

4. COMPANY PROFILE 12

5. RESEARCH METHODOLOGY 14

6. LITERATURE REVIEW 16

7. LIMITATIONS OF THE STUDY 18

8. THEORISATION: 20
• HISTORY
• IPO PROCESS
• ADVANTAGES
• DISADVANTAGES

9. DATA ANALYSIS 26

10. FINDINGS/SUGGESTIONS 29

11. CONCLUSION 31

12. BIBLIOGRAPHY 33

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ABSTRACT

An initial public offering (IPO) is a revolutionary event that will forever change
the way a company does business. Indian IPOs have experienced ups and downs,
forcing companies to navigate the maze of changing regulations and compliance
by constantly updating their knowledge and information for interpretation,
application and implementation. Therefore, this study aims to understand the IPO
listing process in India and the challenges that Indian companies must overcome
for a successful IPO. Note that these challenges help identify the IPO trend in the
Indian market, whether procedural or non-procedural. This research focuses on
initial public offerings (IPOs), listings on the main boards of the National Stock
Exchange and the Bombay Stock Exchange, and developments in areas that
disrupt the flow of issuance and listing of securities. Key influences of IPOs on
equity issuance are also covered in this paper, including market volatility, the
global financial crisis, merchant bankers, regulatory changes, and government
stability. The IPO process permanently transforms a company's business
operations. However, this is complicated by changes in regulation and
compliance, which businesses must constantly keep up with by updating
awareness and information to interpret, apply and enforce. IPOs in India have had
their ups and downs, making it difficult for companies to overcome hurdles.
Therefore, this study seeks to understand the IPO listing process in India and the
challenges that Indian companies must overcome. It is worth noting that these
issues help identify the IPO trend in the Indian market, both procedural and
nonprocedural. This study deals with the process of initial public offerings
(IPOs), listings on the main boards of the National Stock Exchange and the
Bombay Stock Exchange and the factors that hinder the flow of securities
issuance and listing. In addition, this paper lists the main influences of IPOs on
equity issuance, including market volatility, the global financial crisis, merchant
bankers, regulatory changes, and government stability.
Keywords: Companies Act 2013, Indian Capital Market, Obstacles Faced by
Companies, IPO Listing, Initial Public Offering, Securities and Exchange Board
of India (SEBI) Regulations, National Stock Exchange, Bombay Stock Exchange.

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INTRODUCTION

Every company must make important decisions before entering the stock market.
It involves making securities, usually common stock of private companies,
available for public purchase. An initial public offering (IPO) is when these bonds
are issued for the first time. Compared to private companies, public companies
have more and frequent access to financial resources. Companies have the
possibility to raise their capital in the primary market through initial public
offerings. This can be done using the fixed price method, the book building
method, or a combination of the two. As such, companies must comply with
several rules and regulations under the supervision of the Securities and Exchange
Board of India (SEBI). In India, the securities market is governed by SEBI, which
makes regulations to protect the interests of investors and promote market growth.
The rules for IPOs are laid down in SEBI's ICDR 2009 Regulations. The 2005-
2006 IPO scam exposed the misuse and abuse of IPO allocation methods. The
Indian IPO market has experienced ups and downs in recent years, with around
21 companies acquiring and distributing shares issued through IPOs in 2003. The
Covid-19 epidemic has affected international markets in 2020, yet Indian
companies have collected a record Rs. 31,000 kroner ($4.2 billion) through an
initial public offering (IPO). The number of listed companies has increased by
79% compared to the previous year. The IPO industry is still booming in 2021
with many well-known services like Zomato, Paytm and Nykaa. The total amount
raised in 2020 was surpassed by 30 IPOs in the first half of the year. 61,000 kroner
($8.2 billion). This optimistic trend in the IPO market is due to the increased
demand for Indian stocks from domestic and foreign investors and the country's
strong economic development in 2004 and 2005. Public offering (IPO) under this
scheme.

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The IPO hoax was exposed in 2005 with the initial public offering of the private
company "Yes Bank". Rupal bin Panchal, a resident of Ahmedabad, is accused of
opening several bogus
DEMAT accounts and funding them with shares granted to him through an
overseas branch of Bank Bharat. SEBI has launched a thorough investigation after
discovering irregularities in the purchase of shares in the initial public offering
(IPO) of YES BANK. In view of the incident related to NSDL's involvement in
the IPO fraud and irregularities in demonetisation of the company's shares, SEBI
has decided to make public the decision reached in the sub-committee report.
Therefore, the matter came before the Securities Appellate Tribunal (SAT) in
NSDL v. SEBI. The IPO hoax was exposed in 2005 with the initial public offering
of the private company "Yes Bank". Rupal bin Panchal, a resident of Ahmedabad,
is accused of opening several bogus DEMAT accounts and funding them with
shares granted to him through an overseas branch of Bank Bharat. SEBI has
launched a thorough investigation after discovering irregularities in the purchase
of shares in the initial public offering (IPO) of YES BANK. In view of the
incident related to NSDL's involvement in the IPO fraud and irregularities in
demonetisation of the company's shares, SEBI has decided to make public the
decision reached in the subcommittee report. Therefore, the matter came before
the Securities Appellate Tribunal (SAT) in NSDL v. SEBI. So, in early 2006, SEBI
reprimanded NSDL for not doing enough.

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OBJECTIVES OF THE STUDY

1. Understanding and evaluating the complex IPO process in the light of

various laws and regulations governing it.
2. Understand IPO listing procedures considering the evolving regulatory
landscape.
3. Know the key variables that affect the issue of IPO shares.

4. Identify the real and potential obstacles that Indian companies will face in
launching IPOs.

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COMPANY PROFILE
Bank of Baroda is one of India's largest public sector banks. Established in
1908, it offers a wide range of banking products and financial services,
including retail banking, corporate banking, investment banking, and wealth
management. With a global presence spanning over 20 countries, Bank of
Baroda has a significant international footprint. It is known for its customer-
centric approach, innovative banking solutions, and commitment to financial
inclusion.

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RESEARCH METHODOLOGY

APPROACH TO RESEARCH -
To conduct the research an appropriate methodology became necessary. In this
direction secondary data were attempted to be collected. The methodology for
collecting data with reference to the secondary data was taken from the different
published articles, journals, and the relevant websites. Methodology became a
pre-planned strategy in collecting, editing, tabulating and in interpreting the
required information for the research. Thus, methodology relied on secondary
data with the help of case studies, questionnaires, discussions, observations as
well as published work and unpublished work.

Primary Data: The main ace of primary data is questionnaires consisting of

simple questions prepared and distributed to respondents for collection of data on
awareness in public regarding web search engines.

Secondary Data: Secondary data is taken from secondary sources; internal or

external Therefore secondary data is when the instigator does not collect data
originally for each enquiry but uses data already collected and available in
published or unpublished m data. Books, Magazines, websites, already published
reports.

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LITERATURE REVIEW

IPO performance in India has been extensively investigated using various

techniques. Below are some important works in this field. Miller (2000) outlines
the reasons for the poor performance of IPOs in the US stock market. He
suggested that an investor's expectations of a stock's risk-adjusted return
determine whether to invest. This means that over-performing stocks are more
likely to be included in a portfolio than under-performing stocks. As a result,
returns on stocks subject to inclusion in a portfolio are usually lower than
expected. This effect is particularly important for initial public offerings (IPOs)
where there is a lot of disagreement. Gompers & Lerner (2001) examined 3,661
IPOs initiated between 1935 and 1972 in their study of IPO success after the
founding of the NASDAQ. In his research Loughran & Ritter (2002) found a
model that looks at the relationship between the difference between the market's
initial closing price and the bid price minus the number sold. The hot publishing
market is described by this concept. We also explained the reason for the low
price of the items. Jacobsen (2005) adopted a new method to interpret long-term
stock returns. He found that "buy and hold" returns for Danish IPO and SEO
stocks underperformed the market by 27.3% and 21.4%, respectively. Using the
new method, we found that the same stocks underperformed by 43.7% and 38.1%
respectively after five years. According to an analysis by Rajib and Sahu (2010),
Indian initial public offerings (IPOs) have performed poorly in both the short and
long run. Empirical findings show that over the study period, investors who
invested in initial public offerings (IPOs) through direct offerings were profitable
after accounting for market volatility. However, up to 12 months from the IPO
date, investors who bought the stock on the IPO date will receive a negative
return. But they expect to receive a more positive market-adjusted return. The
short-term and long-term performance of IPOs is calculated using relative wealth
and buy-and-hold formulas. IPOs were cheap in the short term but weak in the
long term.

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LIMITATIONS

1.The study is restricted to secondary data.

2.The sample size is very small.

3.It is very difficult to check the accuracy of the information provided.

4.Time constraint is also there.

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 THEORISATION

History of IPO

The term initial public offering (IPO) has been a buzzword on Wall Street and
among investors for decades. The Dutch are credited with conducting the first
modern IPO by offering shares of the Dutch East India Company to the public.

Since then, IPOs have been used as a way for companies to raise capital from
public investors through the issuance of public share ownership.

Through the years, IPOs have been known for uptrends and downtrends in
issuance. Individual sectors also experience uptrends and downtrends in issuance
due to innovation and various other economic factors. Tech IPOs multiplied at the
height of the dotcom boom as startups without revenues rushed to list themselves
on the stock market.

The 2008 financial crisis resulted in a year with the least number of IPOs. After
the recession following the 2008 financial crisis, IPOs ground to a halt, and for
some years after, new listings were rare. More recently, much of the IPO buzz has
moved to a focus on so-called unicorns— startup companies that have reached
private valuations of more than $1 billion. Investors and the media heavily
speculate on these companies and their decision to go public via an IPO or stay
private.
IPO Process

The IPO process essentially consists of two parts. The first is the pre-marketing
phase of the offering, while the second is the initial public offering itself. When a
company is interested in an IPO, it will advertise to underwriters by soliciting
private bids or it can also make a public statement to generate interest.

The underwriters lead the IPO process and are chosen by the company. A
company may choose one or several underwriters to manage different parts of the
IPO process collaboratively. The underwriters are involved in every aspect of the
IPO due diligence, document preparation, filing, marketing, and issuance.

Steps to an IPO

1. Proposals. Underwriters present proposals and valuations discussing their

services, the best type of security to issue, offering price, amount of shares,
and estimated time frame for the market offering.

2. Underwriter. The company chooses its underwriters and formally agrees to

underwrite terms through an underwriting agreement.

3. Team. IPO teams are formed comprising underwriters, lawyers, certified

public accountants (CPAs), and Securities and Exchange Commission (SEC)
experts.

4. Documentation. Information regarding the company is compiled for required

IPO documentation. The S-1 Registration Statement is the primary IPO filing
document. It has two parts—the prospectus and the privately held filing
information.1 The S-1 includes preliminary information about the expected
date of the filing.2 It will be revised often throughout the pre-IPO process. The
included prospectus is also revised continuously.

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5. Marketing & Updates. Marketing materials are created for pre-marketing of
the new stock issuance. Underwriters and executives market the share issuance
to estimate demand and establish a final offering price. Underwriters can
revise their financial analysis throughout the marketing process. This can
include changing the IPO price or issuance date as they see fit. Companies
take the necessary steps to meet specific public share offering requirements.
Companies must adhere to both exchange listing requirements and SEC
requirements for public companies.
6. Board & Processes. Form a board of directors and ensure processes for
reporting auditable financial and accounting information every quarter.
7. Shares Issued. The company issues its shares on an IPO date. Capital from
the primary issuance to shareholders is received as cash and recorded as
stockholders' equity on the balance sheet. Subsequently, the balance sheet
share value becomes dependent on the company’s stockholders' equity per
share valuation comprehensively.
8. Post IPO. Some post-IPO provisions may be instituted. Underwriters may
have a specified time frame to buy an additional number of shares after the
initial public offering (IPO) date. Meanwhile, certain investors may be subject
to quiet periods.

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Advantages of IPO

One of the key advantages is that the company gets access to investment from the
entire investing public to raise capital. This facilitates easier acquisition deals
(share conversions) and increases the company’s exposure, prestige, and public
image, which can help the company’s sales and profits.

Increased transparency that comes with required quarterly reporting can usually
help a company receive more favourable credit borrowing terms than a private
company.

Pros

• Can raise additional funds in the future through secondary offerings

• Attracts and retains better management and skilled employees through liquid
stock equity participation (e.g., ESOPs)

• IPOs can give a company a lower cost of capital for both equity and debt

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Disadvantages of IPO

Companies may confront several disadvantages to going public and

potentially choose alternative strategies. Some of the major disadvantages
include the fact that IPOs are expensive, and the costs of maintaining a public
company are ongoing and usually unrelated to the other costs of doing
business.

Fluctuations in a company's share price can be a distraction for management,

which may be compensated and evaluated based on stock performance rather
than real financial results. Additionally, the company becomes required to
disclose financial, accounting, tax, and other business information. During
these disclosures, it may have to publicly reveal secrets and business methods
that could help competitors.

Rigid leadership and governance by the board of directors can make it more
difficult to retain good managers willing to take risks. Remaining private is
always an option. Instead of going public, companies may also solicit bids for
a buyout. Additionally, there can be some alternatives that companies may
explore.

Cons

• Significant legal, accounting, and marketing costs arise, many of

which are ongoing

• Increased time, effort, and attention required of management for

reporting • There is a loss of control and stronger agency problems

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DATA ANALYSIS

Issue Current
Company Name Listing Date Price Price at Gain%
(rs.) NSE(rs.)
Indian Renewable
Energy
Nov 29,2023 32 167.20 422.50
Development
Agency Ltd
Signatureglobal
Sep 27,2023 385 1314.95 241
(India) Limited
Netweb
Technologies India July 27,2023 500 1616.20 223.2
Limited
MotisonsJewellers
Dec 26,2023 55 165 201
Limited
Cyient DLM
July 10,2023 265 705 165
Limited
Senco Gold Limited July 14,2023 317 801 153
Azad Engineering
Dec 28,2023 524 1277 143.52
Limited
Tata Technologies
Nov 30,2023 500 1090 118
Limited

Mankind Pharma
May 09,2023 1080 2320.35 114.72
Limited

DOMS Industries
Dec 20,2023 790 1698.5 114.66
Limited

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FINDINGS

1. Indian Renewable Energy Development Agency Ltd has shown highest

gains among all the companies since its listing.
2. Indian Renewable Energy Development Agency Ltd has the lowest issue
price among all the companies.
3. Mankind Pharma Limited has the highest current price at NSE.
4. Mankind pharma Limited has the highest issue price at the time of listing.
5. Doms Industries Limited has the lowest gains since listing.

SUGGESTIONS

1. A company's stock price reflects investor perception of its ability to earn and
grow its profits in the future.
2. If shareholders are happy and the company is doing well, as reflected by its
share price, its executives are likely to keep their jobs and receive increases in
compensation.
3. A high stock price also tends to discourage a potential takeover.
4. If a company's stock price is performing well, the company is likely to receive
more favourable media and analyst commentary.

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CONCLUSION

Currently, investing in India is seen as a security need rather than a way of life. If
the rate is high, people will choose other routes that offer better results. The risk
bands that were previously in place have loosened and people are looking for new
and improved products. Previously, you could only invest in a small number of
organizations, but modern technology allows customers to try out many
companies. Newbies learning how to invest in the stock market find initial public
offerings (IPOs) to be a good resource. There is no risk in investing if you study
the history of the market and the company.

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BIBLIOGRAPHY

Websites:

1. https://www.moneycontrol.com/

2. https://www.nseindia.com/

3. https://www.investopedia.com/articles/stocks/09/indian-stock-market.asp

4. https://www.wikipedia.org/

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