INDEX

CONTENTS PAGE NO
CHAPTER-1
• INTRODUCTION 2-8
• THEORETICAL FRAMEWORK
CHAPTER- II
RESEARCH METHODOLOGY
• NEED FOR THE STUDY

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INTRODUCTION

INITIAL PUBLIC OFFERING (IPO)

Initial public offering (IPO), also referred to simply as a "public offering", is when a
company issues common stock or shares to the public for the first time. They are often
issued by smaller, younger companies seeking capital to expand, but can also be done by
large privately-owned companies looking to become publicly traded.

In an IPO, the issuer may obtain the assistance of an Underwriting firm, which helps it
determine what type of security to issue (common or preferred), best offering price and
time to bring it to the market. Initial Public Offering (IPO) in India means the selling of
the shares of a company, for the first time, to the public in the country's capital markets.

This is done by giving to the public, shares that are either owned by the promoters of the
company or by issuing new shares. During an Initial Public Offer (IPO) the shares are
given to the public at a discount on the intrinsic value of the shares and this is the reason
shares during the Public Offering (IPO) in order to make profits for themselves.

IPO in India is done through various methods like Book building method, Fixed price
method, or a mixture of both. The method of book building has been introduced in the
country in 1999 and it helps the company to find out the demand and price of its shares.
A Merchant banker is nominated as a book runner by the Issuer of the IPO.

The company that is issuing the Initial Public Offering (IPO) decides the number of
shares that it will issue and also fixes the price band of the shares. All these information
are mentioned in the company's red herring prospectus.

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During the company's Initial Public Offering (IPO) in India, an electronic book is opened
for at least five days. During this period of time, bidding takes place which means that
people who are interested in buying the shares of the Company makes an offer within the
fixed price band.

DIFFERENT KIND OF ISSUES

FPO

FPO (Follow on Public Offer) is a process by which a company, which is already listed
on an exchange, issues new shares to the investors or the existing shareholders, usually
the promoters. FPO is used by companies to diversify their equity base.

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RIGHT ISSUE

A rights issue is an invitation to existing shareholders to purchase additional new shares

in the company. This type of issue gives existing shareholders securities called rights.
With the rights, the shareholder can purchase new shares at a discount to the market price
on a stated future date.

BONUS ISSUE

A bonus issue, also known as a scrip issue or a capitalization issue, is an offer of free
additional shares to existing shareholders. A company may decide to distribute further
shares as an alternative to increasing the dividend payout. For example, a company may
give one bonus share for every five shares held.

PRIVATE PLACEMENT

The private placement of shares is a stock or securities distribution strategy in which the
companies sell assets to pre-decided investors. Also known as a non-public offering,
these are an effective alternative to IPOs that help companies raise funds in exchange for
the share in profits they earn.

The investors invited for this privately-held sale are wealthy individuals and entities,
mutual fund providers, insurance companies, and banking and financial institutions.

The privately sold assets offered to accredited investors fulfill the required eligibility
criteria and meet a certain threshold of financial net worth.

They have more experience in making investments and prudent financial decisions. The
companies invite only those investors for such schemes who could afford to take risks
and bear losses that may arise from such an investment.

One of the major reasons that make investors accept this invitation is the lenient rules and
regulations. Unlike IPO, privately sold securities have fewer regulatory requirements to
fulfill, making it an easier investment option.

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In addition, such placement of shares, if done by a private company, does not affect the
share price as they are not listed publicly. However, for a publicly listed company, such
securities distribution leads to a share price decline, at least in the near term.

The meaning of private placement could be better understood by exploring the types of
such distributions found in the market. Preferential allotment and qualified institutional
placement are the two significant types of it.

Preferential allotment allows the distribution of stocks and bonds to a preferred group of
investors. These accredited individuals and entities include mutual fund companies,
financial institutions, etc. On the contrary, qualified institutional placement includes
institutional investors that meet the eligibility criteria per the US regulations.

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ROLE OF A REGISTAR OF AN ISSUE

The Registrar finalizes the list of eligible allotters after deleting invalid applications and
insures that the corporate action for crediting of shares demat accounts of the applicants
is done and the dispatch of refund orders to thus applicable or sent. The lead manager co-
ordinates with the Registrar to ensure fallow up so that the fallow of applications from
collecting bank branches, processing of the applications and other matters till the basis of
allotment is finalised, dispatch security certificates and refund orders completed and
securities listed.

MARKET DESIGN

The market design for primary market is provided in the provision of the companies Act,
1956, which deals with issues, listing and allotment of securities? In addition, ICDR
guidelines of SEBI prescribe a series of disclosures norms to be complied by issuer,
promoter, management, Project, risk factor and eligibility norms for accessing the
market.

In this section the market design as provided in securities laws has been discussed SEBI
issue if a capital and disclouser requiremanets (icdr) regulations 20092

The issue of capital in India is governed by the SEBI regulation, 20093. ICDR
regulations are applicable for public issue; rights issue, preferential issue; an issue of
bonus shares by a listed issuer; qualified institutions placement by a listed issuer and
issue of Indian Depository Receipts.

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IPO PROCESS

Process of Initial Public Offering (IPO Process)

• The IPO process will be explained step by step and we also show the role of the
underwriter behind the initial public offering. Mainly the small private companies issue
IPO to grow and trade publicity.

STEPS IN IPO PROCESS

The process of initial public offering consists of several steps:

Steps for initial public offering and discussed below:

• When a company is aiming to go public, at first it hires an investment bank to do the

underwriting, the way of raising money through equity or debt, functions associated with
the issue. Although, a company itself also may sell its shares but, usually an investment
bank is selected for that purpose.

Underwriters Act as intercessors between the public, who are investing, and the
companies.

• The investment bank and the company will first initiate the process of deal negotiation.
The main discussing issues are the money among that the company is going to raise,
security type to be issued and all the other details involved with the underwriting
agreement.

• Once the deal gets finalised, the investment bank sets a registration statement up which
will be submitted to the Securities and Exchange Commission. That registration
statement consists of information regarding the offering and also other

company information like, background of the management financial statements, legal

issues etc..

• Then the Securities and Exchange Commission (SEC) needs a cooling of period during
which it will examine all the submitted documents and make sure that all information

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regarding the deal has been given to them. After getting the SEC’s approval, a date is
going to be fixed on which the company will offer the stock to the public.

• During the above –mentioned cooling off period the underwriting publishes an initial
prospectus that contains all the necessary information regarding the company. The
effecting date of issuing the stock as well as the price has not been mentioned in the
prospectus, for these or not known at this time.

• Then the company and the underwriting need to decide the price of the stock. This
decision depends highly on the current market condition. Lastly, the stocks are sold in the
market and company is raised from the investors.

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 THEORITICAL FRAME WORK

PRIMARY MARKET:
Generally, the personal savings of the entrepreneur along with contributions from friends
and relatives were pooled to start new business ventures or to expand existing ones.

However, this may not be feasible in the case of capital intensive or large projects as the
entrepreneur (promoter) may not able to bring this share of contribution (equity), which
may be sizable, even after availing term loan from Financial Institution /Banks.

Thus availability of a capital is a major constraint for the setting up or large expanding on
a large scale. Instead of depending upon a limited pool of savings of a small circle of
friends and relatives, the promoter has the option of raising money from the public across
the Country/World by issuing shares of the company.

For this purpose, the promoter can invite investment to his or her venture by issuing offer
document which gives full details about track record, the company, the nature of the
project, the business model, etc. If the investor is comfortable with this proposed venture,
he may invest and thus become a shareholder of the company.

Through aggregation, even small amounts available with a very large number of
individuals translate into usable capital for corporate.

Primary market is a market wherein corporate issue new securities for raising funds
generally for long term capital requirement. The companies that issue their shares are
called issuers and the process of issuing shares to public is known as public issue.

This entire process involves various Intermediaries like Merchant Bankers, Bankers to
the Issue, Underwriters, and Registers to the Issues etc... All these intermediaries are
registered with SEBI and are required to abide by the prescribed norms to protect.

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The Investor

The Primary Market is, hence, the market that provides a channel for the issuance of new
securities by issuers (Government companies or corporate) to raise capital. The securities
(financial instruments) may be issued at face value, or at a discount/premium in various
such as equity, debt etc. They may be issued in the domestic and /or internal market.

Types of investors in an IPO

1. Institutional Investors or Qualified Institutional Investors (QIIs)
2. Non-institutional Investors (NIIs) / High Net Worth Individuals (HNIs)
3. Retail Individual Investors (RIIs)
4. Anchor Investors

‘The early bird catches the worm.’

You must have heard this phrase before, which emphasizes the first mover
advantage. An IPO is the best way to achieve this advantage in the Indian stock market.
This is because it gives you the opportunity to become a shareholder of the company
when it offers its shares to the public for the first time, and that too at an attractive price.

As IPOs help companies raise funds, among other benefits, thus, over the past few
years, you can witness a tremendous increase in the number of companies going for an
IPO. These IPOs have drawn a lot of investors to the stock market as they provide a good
opportunity for novice investors to understand its basics while earning good returns.

There are different types of investors who can apply for shares during the IPO
process. All these categories have a special reserve quota or a percentage of shares. IPO
subscriptions are opened at different dates at different times for larger institutional
investors as companies consider them as preferred buyers of shares. Let’s understand all
these categories in detail.

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1. Institutional Investors or Qualified Institutional Investors (QIIs)
Commercial banks, mutual fund houses, public financial institutions, and foreign
portfolio investors fall under this category. Selling shares to QIIs helps underwriters meet
the targeted capital, thus, they try to sell them a large chunk of IPO shares at lucrative
prices. If more shares are sold to QIIs, there will be less number of shares available for
the public. This leads to an increase in the stock price, enabling the company to raise
more capital. That’s why SEBI has mandated that QIIs cannot be allocated more than
50% of shares.

2. Non-institutional Investors (NIIs) / High Net Worth Individuals (HNIs)

Individual investors or institutions (large trusts, big companies, and similar institutions)
who are willing to invest more than ₹2 lakh are categorized as High Net Worth
Individuals or Non-institutional Investors respectively.

3. Retail Individual Investors (RIIs)

This is one of the most common categories for applying for an IPO. Any individual
investor who is willing to subscribe for shares less than or up to ₹2 lakh belong to this
category. Along with resident Indian individuals, this category includes NRIs and HUFs.
Under this category, investors are allowed to bid at the cut-off price, and a minimum of
35% of the offer is reserved for RIIs. You must note that 35% of the quota is applicable
only for those companies who have registered profits in the last 3 years, and the
companies who fail to meet this criterion are allowed to allocate only 10% to retail
investors.

4. Anchor Investors
This new category of investors was introduced by the market regulator, SEBI, in 2009. It
is a form of QIIs that can apply for an IPO for a value of ₹10 crore or more through the
book-building process. Out of shares reserved for QIIs, up to 60% of the shares can be
sold to anchor investors. Merchant bankers, promoters, and direct relatives are not
allowed to apply under this category.

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FEATURES:

Features of primary markets include:

• Primary markets deal with new and initial issues of a particular security.

• Any issue of new securities by companies first float over the primary market

• The primary market has no physical existence like secondary market

• The company receives the money and issues new securities directly to the
investors

• The primary markets are used by companies for the purpose of setting up new
ventures/business or expanding or modernizing the existing business

• Primary market performs the crucial function of facilitating capital formation in

the economy

SECONDARY MARKET
Secondary market refers to a market where securities are traded after being offered to the
public in the primary market or listed on the stock Exchange. Secondary market
comprises of equity, derivatives and the debt markets. The secondary market is operated
through two mediums, namely, the Over-the-Counter (OTC) market and the Exchange-
Traded market. OTC markets are informal markets where trades are negotiated.

ROLE OF SECONDARY MARKET

Secondary markets are important because they provide liquidity to investors. Buying and
selling securities quickly often reduces the amount of value lost on a trade. These markets
also allow smaller investors to get involved with trading securities.

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DIFFERENCES BETWEEN PRIMARY MARKET AND SECONDARY MARKET

Basis Primary Market Secondary Market

A market in which the sale and

A market in which the
purchase of newly issued
securities are sold for the first
Meaning securities and second-hand
time is known as a Primary
securities are made is known as
Market.
a Secondary Market.

In the secondary market, the

Types of In the primary market, the sale sale and purchase of existing or
Securities of new securities takes place. second-hand securities take
place.

In the primary market, the In the secondary market, the

Issued by securities are directly issued by securities are transferred
companies. between the investors only.

A primary market directly A secondary market indirectly

contributes to the capital of a contributes to the capital of a
Capital
company as it involves the company as it involves an
Formation
transfer of funds from surplus exchange of funds between
units to deficit units. surplus units only.

The companies enter a primary The securities of listed

Entry market for raising capital for companies only are bought and
their operations. sold in this market.

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 Basis Primary Market Secondary Market

There is no fixed geographical

There is a fixed geographical
location of a primary market.
Geographical location of a secondary market
Every bank, institution, foreign
Location and it also has fixed working
investor, etc., contribute to this
hours.
market.

The price of securities in a The price of securities in a

primary market is fixed by the secondary market is fixed by
Price
management of the company the demand and supply of the
issuing them. stock exchange market.

GENERAL CONDITIONS FOR PUBLIC ISSUE AND RIGHTS ISSUE

An issuer can’t make a public issue or rights issue of equity shares and convertible
securities

Under the following conditions:

1. If they issuer, any of its promoters, promoter group or directors or persons in control
of the issuer are debarred from accessing the capital market by SEBI or

2. Only some provisions pertaining to ICDR regulations 2019 are discussed hear. For
greater details, it is recommended that original regulation may be referred to. The
regulations are updated as of December 31, 2010

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3. The ICDR Regulations 2009 have been made primarily by conversion of the SEBI
Guidelines, 2000 (rescinded). ICDR were notified on August 26, 2009. While
incorporating the provisions of the rescinded Guidelines into the ICDR Regulations,
certain changes have been made by removing the redundant provisions, modifying
certain provisions on account of changes necessitated due to market design and
bringing more clarity to the provisions of rescinded Guidelines.(Sourced from SEBI
circular (SEBI/CFD/DIL/ICDRR/1/2009/03/09) dated September 3, 2009).

4. Where the aggregate value of specified securities offered is Rs 50Lakh or more

5. Convertible security means a security which is convertible into or exchangeable with

equity shares at a later date with or without the option of the holder of the security
and includes convertible debt instrument and convertible preference shares.

a. If any of the promoters, director or person in control of the issuer was or also is a
promoter, director or person in control of any other company which is debarred
from accessing the capital market under the order or directions made by SEBI

b. If the issuer of convertible debt instrument is in the list wilful defaulters published
by the RBI or it is in default of payment of interest or repayment of principal
amount in respect of debt instruments issued by it to the public, if any, for a
period of more than 6 moths.

c. Unless an application is made to one or more recognised stock exchanges for

listing of equity shares and convertible securities on such a stock exchanges and
has chosen one of them as a designated stock exchange. However, in case an
initial public offer, the issuer should make an application for listing of the equity
shares and convertible securities in at least one recognised stock exchange having
nationwide trading terminals.
d. Unless it has entered into an agreement with a depository for dematerialization of
equity shares and convertible securities already issued or proposed to be issued.

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 e. Unless all existing partly paid up equity shares of the issuer have either been fully
paid up or forfeited.

f. Unless firm arrangements of finance through verifiable means to words 75% of

the stated means of finance, excluding the amount to be raised through the
proposed

public issue or right issue or through existing identifiable internal accruals, have been
made.

ABOUT FACE VALUE OF A SHARE

The nominal or stated amount (in INR.) assigned to a security by the issuer. For shares, it
is the original cost of stock show on the certificate. For bonds, it is amount paid to holder
at maturity. It is also known as par value or simply par.

For an equity share the face value is usually a very small amount (Rs.5, Rs.10) and does
not have much bearing on the price of the share, which may quote higher in market, at
Rs.100 or 1000 or any other amount.

For a debt security, face value is amount repaid to investor when the bond matures
(usually Government securities and corporate bonds have a face value of Rs.100).The
price at which the security trades depend on the fluctuations in the interest rates in the
economy.

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ABOUT PRIMIUM AND DISCOUNT OF A SECURITY MARKET

Securities are generally issued in denominations of 5,10 or 100.This is known as the Face
value or Par value of the security as discussed earlier. When a security is sold above its
face value, it is set to be issued at a Premium and if it is sold less than face value, it is set
to be issued at a Discount.

ISSUE PRICE

The price at which a company’s shares are offered initially in the primary market is
called as Issue price. When they begin to be traded, market price may be above are below
the issue price.

ISSUE OF SHARES

DIFFERENT KINDS OF SHARES

Primarily, issues can be classified as Public, Rights or Preferential issue (also known as
private placement). While public and rights issues involved a detailed procedure private
placements or preferential issues relatively simpler the classification of issues is
illustrated below:

Initial public offer (IPO)

Is when unlisted company makes either fresh issue of securities or an offer for sale of its
existing securities or both for the first time to the public. This paves way for listing and
trading of issuer’s securities.

A follow on public offering (Further Issue)

It is when an already listed company makes either a fresh issue of securities to the public
or an offer for sale to the public through an offer document.

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RIGHTS ISSUE

It is when the listed company which proposes to issue fresh securities to its existing
shareholders on a record date. The right is normally offered in a particular ratio to the
number of securities held prior to the issue. This route is best suited for companies who
would like to raise capital without diluting stake of its existing shareholders.

PREFERENTIAL ISSUE

Is an issue of shares or of convertible securities by listed companies to a select group of

persons under Section 81 of Companies Act, 1956 which is neither a right issue nor a
public issue. This is a faster for a company to raise equity capital. The issuer company
has to comply with the companies Act and the requirements contained in chapter
pertaining to preferential allotment in SEBI guidelines which inter area include pricing,
disclosures in notice etc.

MARKET CAPITALISATION

The market value of a quoted company, which is calculated by multiplying its current
share price (market price) by the number shares in issue, is called as Market
Capitalization. E.g. company A has 120 million shares in issue. The current market price
is Rs.100. The market capitalization of company A is Rs.12000 million.

DIFFERENCE BETWEEN PUBLIC ISSUE AND PRIVATE ISSUE

When an issue is not made to only a select set of people but is open to the general public
and any other investor at large, it is a public issue. But if the issue is made to a select set
of people, it is called private placement. As per Company Act, 1956, an issue becomes
public if it results in allotment to persons or more. This means an issue can be privately
placed where an allotment is made to less than 50 persons.

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CUT OFF PRICE

In a Book building issue, the issuer is required to indicate either the price band or a floor
price in the prospectus. The actual discover issue price can be any price in the price band
or any price above the floor price. This issue price is called cut off “price”

The issuer and lead manager decides this after considering the book and the investor’s
appetite for the stock.

Floor price in case of book building

Floor price is the minimum price at which bids can be made.

Price Band in a book built IPO

The prospectus may contain either the floor price for the securities or a price band within
which the investors can bid. The spread between the floor and the cap of the price band
shall not be more than 20%. In other words, it means that the cap should not be more than
120% of the floor price.

The price band can have a revision and such a revision in the price band shall be widely
change on the relevant website and the terminals of the trading members participating in
the book building process. In case the price band is revised, the bidding period shall be
extended for further period of three days, subject to the total bidding period not
exceeding ten days.

Price Band decision

It may be understood that the regulatory mechanism does not play a role in setting the
price for issues. It is up to the company to decide on the price or the price band, in
consultation with Merchant Bankers.

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Minimum number of days for which a bid should remain open during book building

The Book should remain open for a minimum of 3 days.

Role of a Registrar

The Registrar finalizes the list of eligible allots after deleting the invalid applications and
ensures that the corporate action for crediting of shares to the demat accounts of the
applicants is done and the dispatch of refund orders to those applicable are sent. The Lead
Manager coordinates with the Registrar to ensure follow up so that that the flow of
applications from collecting bank branches, processing of the applications and other
matter still the basis of allotment is finalized, dispatch security certificates and refund
orders completed and securities listed.

NSE provide facility for IPO

• NSE’s electronic trading network spans across the country providing access to
investors in remote areas.

• NSE decided to offer this infrastructure for conducting online IPOs through the
Book Building process.

• NSE operates a fully automated screen based bidding system called NEAT IPO
that enables trading members to enter bids directly from their offices through a
sophisticated telecommunication network.

• Book Building through the NSE system offers several advantages:

• The NSE system offers a nationwide bidding facility in securities

• It provide a fair, efficient & transparent method for collecting bids using the latest
electronic trading systems

• Costs involved in the issue are far less than those in a normal IPO

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 • The system reduces the time taken for completion of the issue process

• The IPO market timings are from 10.00 a.m. to 5.00 p.m.

Prospectus

A document issued by a company to invite the public and the investors for subscribing
the securities is called a prospectus. The prospectus contains detailed information on the
securities. A public company can issue the prospectus to offer its shares and debentures,
whereas a private company cannot issue prospectus.

In some cases, the company would not issue the prospectus, but they would send an offer
to the public. The company makes such an offer through notice, advertisement, and
circular or in any manner

Shelf Prospectus

Any class of companies as per the Securities and Exchange Board can file for the Shelf
Prospectus. The companies file the Shelf Prospectus with the Registrar of Companies
(ROC) at the first stage of the offer.

The first offer indicates a period of validity, which does not exceed one year from the
date of opening the first offer. Moreover, it does not require a prospectus for the
subsequent offers during the validity period.

While filing for Shelf prospectus, the company should also file the information
memorandum. The information memorandum should contain all the material facts of the
created charges, the company’s financial position changes.

The companies should file the memorandum within the stipulated time before the issue of
the subsequent offers. The filed information memorandum stays as a prospectus along
with shelf prospectus whenever the company makes an offer.

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If any company or person or company applies for the securities with an advance payment
before making the changes, then the company can intimate the applicant about the
changes. If the applicant desires to withdraw the applicant, then the company has to
return the payment within 15 days.

Note: The Shelf Prospectus saves time and expenditure to issue the offer every time.

Red Herring Prospectus

The Red Herring Prospectus does not include the full particulars of the price of
the securities. A company planning to make an offer of securities can issue a red herring
prospectus before the issue of the prospectus.

The companies file the red herring prospectus with the ROC at least 3 days before
the opening the offer. The obligations of this are similar to that of any of the prospectus.

The variations in the red herring prospectus from the other prospectus are
highlighted. While closing an offer, the companies file the prospectus with the ROC and
Securities and Exchange Board.

It contains the information of the total capital raised whether, by share capital or
debt, the closing price of the offer and the other details left out in the red herring
prospectus.

Abridged Prospectus

It is defined as the brief summary of the prospectus, which includes all useful and
materialistic information filed before the registrar. As per Section 33(1) of the Companies
Act, 2013, an abridged prospectus must be included with the documents for the purchase
of securities issued by a company.

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Information in Prospectus

• The Name and the address of the company’s registered office, chief financial
officer, secretary, legal advisors, auditors, bankers, underwriters and trustees.

• Dates of opening and closing of the issue, a declaration regarding the allotment
letters and the refunds

• A statement from the Board of Directors regarding the separate bank account

• The details of the underwriting issue consent to the issue from the bankers,
directors and auditors. Expert advice if necessary

• Details of the resolution and authority of the issue

• The procedure for allotment and issue of the securities and also its time schedule

• Company’s capital structure in the given manner

• The main objects of the public offer and the terms of the current issue

• The current business of the company, its location and the schedule of its
implementation

• Particulars like the project’s management perception of the risk factors, gestation
period, the progress, deadlines for completion and pending legal action

• The minimum subscription and the payable amount by premium. The issue shares
by other means than cash

• Details regarding the directors, which should include their appointments and
remuneration

• Disclosures in the manner given by the company reports in Prospectus.

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Every prospectus issued by a public company or on behalf of it for its formation or
subsequently should contain the following report:

• Auditor’s report regarding the profits, losses, liabilities and assets

• Report on the profits and losses for the five financial years

• Auditor’s report on the profits and losses of the company’s business for the five

financial years

• Report on the business and its transaction

• Filing Copy of Prospectus

The company should not issue the prospectus unless it is delivered to the Registrar for
registration, with the signatures of all the directors of the company. Every prospectus that
is issued should state that it has been delivered for Registration.

It should also specify any necessary to be attached in the delivered copy or refer to the
statements in the prospectus regarding the documents. The ROC does not register unless
the company complies with the requirements for the registration. The prospectus is not
valid if the company does not issue it within 90 days from the date of delivering the copy
to the ROC

Preparation of Prospectus/Offer Documents

Generally, the public issues of companies are handled by ‘Merchant Bankers’ who are
responsible for getting the project appraised, finalizing the cost of the project,
profitability estimates and for preparing of ‘Prospectus’. The ‘Prospectus’ is submitted
to SEBI for its approval.

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Lock-in

‘Lock-in’ indicates a freeze on the sale of shares for a certain period of time. SEBI
guidelines have stipulated lock-in requirements on shares of promoters mainly to ensure
that the promoters or main persons, who are controlling the company, shall continue to
hold some minimum percentage in the company after the public issue.

Listing of Securities

Listing means admission of securities of an issuer to trading privileges (dealings) on a

stock exchange through a formal agreement. The prime objective of admission to
dealings on the exchange is to provide liquidity and marketability to securities, as also to
provide a mechanism for effective control and supervision of trading.

Listing Agreement

At the time of listing securities of a company on a stock exchange, the company is

required to enter into a listing agreement with the exchange. The listing agreement
specifies the terms and conditions of listing and the disclosures that shall be made by a
company on a continuous basis to the exchange.

Delisting of securities

The term ‘Delisting of securities’ means permanent removal of securities of a listed

company from a stock exchange as a consequence of delisting, the securities of that
company would no longer be traded at that stock exchange.

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SEBI’s Role in an Issue:

Any company making a public issue or a listed company making a rights issue of value of
more than Rs.50 lakhs is required to file a draft offer document with SEBI for its
observations. The company can proceed further on the issue only after getting
observations from SEBI. The validity period of SEBI’s observation letter is three months
only i.e. the company has to open its issue within three months period.

SEBI does not recommend an issue:

SEBI does not recommend any issue nor does take any responsibility either for the
financial soundness of any scheme or the project for which the issue is proposed to be
made or for the correctness of the statements made or opinions expressed in the offer
document. SEBI mainly scrutinizes the issue for seeing that adequate disclosures are
made by the issuing company in the prospectus or offer document.

SEBI tag makes one’s money safe:

The investors should make an informed decision purely by themselves based on the
contents disclosed in the offer documents. SEBI does not associate itself with any
issue/issuer and should in no way be construed as a guarantee for the funds that the
investor proposes to invest through the issue. However, the investors are generally
advised to study all the material facts pertaining to the issue including the risk factors
before considering any investment. They are strongly warned against relying on any
‘tips’ or news through unofficial means.

26
 REVIEW OF LITERATURE

Gadesurendar and Dr. S. Kamaleshwari Rao (2011) stated that Companies raise in the
primary market by way of initial public offers, rights issue. An initial public offering is
one through which an unlisted company makes either a fresh issue of securities of an
offer for sale of its existing securities or both for the first time to be public. IPS’s deepen
the market diversify investors portfolio, reduce volatility in stock prices bring investors’
money into the market.

Qiming Wang (2010) The price clustering of initial public offerings in the secondary
market trading during the first 240 trading days after their IPO DATES. The result
indicates the huge difference between the integer price frequency of IPS’S in the primary
market and that of matched stocks in the secondary market almost disappears on the first
trading day after IPO.

S.S.S.KUMAR (2010) stated that the performance issued through the book building
process in India over the period 1999-2006.the sample comprises 156 firms that upon
listening the IPO’s on average offered positive returns up to till twenty four months but
subsequently they underperform the market.

Arwah Arjun Madan (2010) stated that in the long run there is a drastic fall in the returns
on IPO’s return is found to be negative from the second to the fifth year of listing.

Anand Adthikari (2010) stated that companies with unique business models got listed in
the year 2009-10 and made their inventors rich.

27
 NEED FOR THE STUDY

➢ The study of initial public offer is important, because India is a developing economy
and it has different types of potentialities in the economy.

➢ The development of a country depends upon different sectors like agricultural,

industrial and service sectors. These sectors are playing an important role in the
development.

➢ Mainly the industrial and services sector are showing their power to nation with the
help of stock exchanges to various countries.

➢ The functionality of the stock exchanges depends upon the growth of the industries
and the participants of the stock exchanges.

➢ The participants of the stock exchanges are households, financial institutions and
business people.

➢ The investors are the bank to the every company.

➢ Through this study one can understand the satisfaction factors of the investors on the
study reveals the opinions, views, ideas of different investors.

➢ By knowing these facts the company have the chance to know the views of the
investors.

28
 OBJECTIVES OF THE STUDY

Primary Objectives

➢ To understand the public issue procedure in NSE.

➢ To evaluate the performance of public issue companies by considering issue price

and current market price.

Secondary Objectives

➢ To analyze the number of companies went for public issue from 2017-2021.

➢ To evaluate the performance of public issue companies by considering issue price

and current market price.

➢ Based on the study, to give suggestions to investors and companies.

➢ To analyze the growth of shares of few companies

➢ Analyze the benefits to go IPO rather than purchase the share through secondary
market.

29
 RESEARCH METHODOLOGY

▪ Research methodology is the systematic, theoretical analysis of the methods

applied to a field of study.

▪ It comprises the theoretical analysis of the body of methods and principles

associated with a branch of knowledge.

▪ A wide range of research methods are used in Psychology. These methods vary by
the sources of information that are drawn on, how that information is sampled,
and the types of instruments that are used in data collection.

▪ Methods also vary by whether they collect qualitative data, quantitative data or
both.

IMPORTANCE OF THE STUDY

➢ IPO’s is an investment opportunity

➢ It helps to raising capital

➢ Liquidity for employees

➢ Liquidity for Private Equity Investors

➢ Currency for mergers & Acquisition

➢ Branding & Visibility

30
SOURCE OF DATA COLLECTION

While deciding about the method of data collection to be used for the study, we should
keep in mind 2 type’s i.e.

1. Primary data.

2. Secondary data.

Primary data:

Usage of primary data cannot be applicable to this project

Secondary data:

▪ Secondary data means that is already available that is it may be either published
or unpublished.

▪ Technical and trade journals.

▪ Reports prepared by research scholars, universities, economists etc in different

fields.

▪ Public records and statistics, historical documents and other sources of published
information.

▪ Data available with research scholars and research workers, trade associations,
private.

SAMPLE SIZE

All the IPO’S that are coated at NSE from 2018-2022

31
SCOPE OF THE STUDY

➢ What are the companies looking from open new IPO in India?

➢ Find out the companies which like to adopt this technique and the factors which
influence the IPO listing process.

➢ Finding the analysis of Shareholder and IPO companies

➢ IPO’s post/present/future prospects and analysis of auction, pricing, issued price

and reverse IPO’s.

LIMITATIONS OF THE STUDY

➢ The limitations of the average that is being impacted by the extreme values cannot
be avoided in return calculation while examining the performance for annualized
raw returns and annualized market adjusted raw returns.

➢ The non-availability of data of prices for few companies which could not be
considered for this analysis purpose.

➢ The volatility and the changing market conditions which do have an impact on the
prices of the shares and thus the returns generated thereof, could not be avoided.

➢ The other limitation of this study was the shortage of time for completing such a
vast topic, due to which the sample of limited companies on NSE has been taken.

32
 INDUSTRY PROFILE

A Stock Exchange is a place that provides facilities to stock exchange brokers to

trade company stocks and other securities. A stock may be bought or sold only if it is
listed on an exchange. Thus it is the meeting place of the stock buyers and sellers

Stock exchange contributes in a huge measure to the growth and expansion of

national business and to the ultimate benefit and well-being of the national economy and
its people. They provide an ideal conduit through which enormous amounts of capital
flow through the interconnected network of financial organization to all corporate
enterprise in the country. Thus, stock exchange ensures liquidity and transferability of
financial assets that are dealt with.

Stock exchange provides an organized market place for the investors to buy and
sell securities freely. The market offers perfectly competitive conditions where a large
number of sellers and buyers participate. Further, stock exchange provides an auction
market in which members of the exchange participate to ensure continuity of price and
liquidity to investors.

DEFINITIONS

According to Hastings, “stock exchange or securities market comprises all the places
where buyers and sellers of stocks and bonds or their representatives undertake
transactions involving the sale of securities”.

According to section 2(3) of the securities Contract regulation Act 1956,” The stock
exchange has been defined as anybody of individual whether incorporated or not,
constituted for the purpose of assisting, regulating or controlling the business of buying,
selling or dealing in securities. “Under the said Act, the following securities can be traded
at the stock exchange.

✓ Shares, scripts, stocks, bonds, debentures stocks or other marketable securities of

a like nature in or nay incorporated company or other body of corporate.
✓ Government securities and rights or interests in securities 22
33
 FUNCTIONS OF STOCK EXCHANGE

❖ The stock market is one of the most important sources for companies to raise
money. This allows businesses to go public, or raise additional capital for
expansion. The liquidity that an exchange provides affords investors the ability to
quickly and easily sell securities. This is an attractive feature of investing in
stocks, compared to other less liquid investments such as real estate.

❖ The prices of shares and other assets is an important part of the dynamics of
economic activities, and can influence or be an indicator of social mood. Rising
share prices for instance, tend to be associated with increased business investment
and vice-versa. Share prices also affect the wealth of households and their
consumption. Therefore, Central banks tend to keep an eye on the control and
behavior of the stock market and, in general, on th smooth operation of financial
system functions.

❖ Exchanges also act as the clearing houses for each transaction, meaning that they
collect and delivery the shares and guarantee payment to seller of a security. This
eliminates the risk to an individual buyer or seller that the counter party could
default on the transaction.

❖ The smooth functioning of all these activities facilities economic growth, in that
lower, costs and enterprise risk promote of goods and services as well as
employment. In this way the financial system contributes to increased prosperity.

34
 ORIGIN OF STOCK MARKETS

Histories of the Stock markets are some of the most important parts of today’s
global economy. Countries around the world depend on stock markets for economic
growth. However, stock markets are a relatively new phenomenon.

They haven’t always played an important role in global economics. Today, I’m
going to explain the history of the stock market and why stock markets have become the
driving economic force they are today. Early stock and commodity markets the first
genuine stock markets didn’t arrive until the 1500s. However, there were plenty of early
examples of markets which were similar to stock markets in the 1100s.

For example, France had a system where courtiers de change managed

agricultural debts throughout the country on behalf of banks. This can be seen as the first
major example of brokerage because the men effectively traded debts. Later on, the
merchants of Venice were credited with trading government securities as earl y as the
13th century.

Soon after, bankers in the nearby Italian cities of Pisa, Verona, Genoa, and
Florence also began trading government securities. The world’s first stock markets
(without stocks) The world’s first stock markets are generally linked back to Belgium.
Bruges, Flanders, Ghent, and Rotterdam in the Netherlands all hosted their own “stock”
market systems in the 1400s and 1500s.

However, it’s generally accepted that Antwerp had the world’s first stock market
system. Antwerp was the commercial center of Belgium and it was home to the
influential Van der Beurze family. As a result, early stock markets were typically called
Beurzen.

All of these early stock markets had one thing missing: stocks. Although the
infrastructure and institutions resembled today’s stock markets, nobody was actually
trading shares of a company.

35
 Instead, the markets dealt with the affairs of government, businesses, and
individual debt. The system and organization was similar, although the actual properties
being traded were different. The first stock exchange despite the ban on issuing shares,
the London Stock Exchange was officially formed in 1801.

Since companies were not allowed to issue shares until 1825, this was an
extremely limited exchange. This prevented the London Stock Exchange from preventing
a true global superpower. That’s why the creation of the New York Stock Exchange
(NYSE) in 1817 was such an important moment in history.

The NYSE has traded stocks since its very first day. Contrary to what some may
think, the NYSE wasn’t the first stock exchange in the United States. The Philadelphia
Stock Exchange holds that title. However, the NYSE soon became the most powerful
stock exchange in the country due to the lack of any type of domestic competition and it’s
positioning at the center of U.S. trade and economics in New York.

The London Stock Exchange was the main stock market for Europe, while the
New York Stock Exchange was the main exchange for America and the world. Modern
stock markets Today, virtually every country in the world has its own stock market. In
the developed world, major stock markets typically emerged in the 19th and
20thcenturies soon after the London Stock Exchange and New York Stock Exchange
were first created.

From Switzerland to Japan, all of the world’s major economic powers have
highly-developed stock markets which are still active today.

Canada, for example, developed its first stock exchange in 1861. That stock
exchange is the largest in Canada and the third largest in North America by market
capitalization. It includes businesses based in Canada and the rest of the world.

The TSX, as it is known, hosts more oil and gas companies than any other stock
exchange in the world, which is one major reason why it has such a high market cap.
Even war-torn countries like Iraq have their own stock markets. The Iraq Stock Exchange
doesn’t have a lot of publicly-traded companies, but it is available to foreign investors.

36
 It was also one of the few stock markets unaffected by the economic crisis of
2008. Stock markets can be found around the world and there’s no denying the global
importance of stock markets.

Every day, trillions of dollars are traded on stock markets around the world and
they’re truly the engine of the capitalist world. After dominating the world economy for
nearly three centuries, the New York Stock Exchange faced its first legitimate challenger
in the 1970s. In 1971, two organizations – the National Association of Securities Dealers
and Financial Industry Regulatory Authority – created the NASDAQ stock exchange.

NASDAQ has always been organized differently from traditional stock

exchanges. Instead of having a physical location, for example, NASDAQ is held entirely
on a network of computers and all trades are performed electronically. Electronic trading
gave the NASDAQ a few major advantages over the competition. First and most
importantly, it reduced the bid-ask spread. Over the years, competition between
NASDAQ and the NYSE has encouraged both exchanges to innovate and expand.

In 2007, for example, the NYSE merged with Euronext to create NYSE Euronext
– the first transatlantic stock exchange in the world. Stock markets close around the
world one of the many advantages of having stock markets around the world is the fact
that there is almost always a market open in some part of the world. Most of the world’s
stock markets open between 9:00am and 10:00am local time and close between 4:00pm
and 5:00pm local time.

The NYSE, NASDAQ, TSX, and Shanghai Stock Exchange all open at 9:30.
Some stock markets also take a break for lunch. Four major Asian markets take a break
for lunch that lasts for 1 hour to 1.5 hours in the middle of the day.

Those markets include the Tokyo Stock Exchange, Hong Kong Stock Exchange,
Shanghai Stock Exchange, and Shenzhen Stock Exchange. Different countries celebrate
different days of the year, which is why some global stock markets are still open on
public holidays in the United States.

37
The largest stock markets in the world today The list of the top 10 largest stock markets
in the world today indicates the changing roles of various countries throughout history.

Today, the top 10 stock markets include markets in highly-developed countries as well as
markets in developing parts of Asia. Here are the top 10 stock markets in the world today
ranked by market capitalization:

1. New York Stock Exchange

2. NASDAQ

3. Tokyo Stock Exchange

4. London Stock Exchange Group

5. Euronext

6. Hong Kong Stock Exchange

7. Shanghai Stock Exchange

8. Toronto Stock Exchange

9. Frankfurt Stock Exchange

10. Australian stock exchange

Other rising stock markets outside of the top 10 include the Bombay Stock Exchange
based in Mumbai, India, as well as the BM&F Bo Vespa stock exchange based in Sao
Paulo, Brazil.

38
 HISTORY OF INDIAN STOCK EXCHANGE

The origin of the stock markets in India goes back to the end of the eighteenth
century when long-term negotiable securities were first issued. However, for all practical
purposes, the real beginning occurred in the middle of the nineteenth century after the
enactment of the companies Act in 1850 which introduced the features of limited liability
and generated investor interest in corporate securities.

An important early event in the development of the stock market in India was the
formation of the native share and stock broker ‘Association at Bombay in 1875, the
precursor of the present day Bombay Stock Exchange.

This was followed by the formation of association/exchanges in Ahmadabad

exchanges emerged mainly in buoyant periods to recede into oblivion during depressing
times subsequently.
Stock exchanges are intricacy inter-women in the fabric of a nation’s economic life.
Without a stock exchange, the saving of the community-the sinews of economic progress
and productive efficiency-would remain underutilized.

The task of mobilization and allocation of savings could be attempted in the old
days by a much less specialized institution than the stock exchanges. But as business and
industry expanded and the economy assumed more complex nature, the need for
‘Permanent finance’ arose.

Entrepreneurs needed money for long term whereas investors demanded liquidity,
the facility to convert their investment into cash at any given time.
The answer was a ready market for investments and this was how the stock exchange
came into being.

39
 Stock exchange means anybody of individuals, whether incorporate or not,
Constituted for the purpose of regulating or controlling the business of buying, selling or
dealing in securities.

These securities include:

➢ Shares, scrip, stocks, bonds, debentures stock or other marketable securities of a

like nature in or of any incorporated company or other body corporate

➢ Government securities and

➢ Right or interest in securities

The first organized stock exchange in India is the Bombay Stock Exchange
(BSE), which was established in 1875. But trading in securities used to take place much
earlier in the 18th century, and share quotations we published in contemporary
newspapers. However, dealings were not regulated by any code of rules, nor any hours of
business prescribed or nor was there any committee to supervise the conduct of members.
Dealers congregated under some tree in open fields for the purpose of transacting
business.

The advent of western styled business practice in India in the early 18th century
commenced with the establishment of the East India Company’s in India. Towards the
close of the 18th century, the East India Company naturally dominated business in
securities and loan transactions. Evidence of the existence of trading in stocks of banks
and certain companies is available in price quotations in contemporary newspapers.

By the 1830’s, there was a perceptible rise in the volume of business in loans of
corporate stocks and shares. In 1836, the “Englishmen” of Calcutta reported quotation of
4%, 5% and 6% loans of the East India Bank”, “Oriental Bank”, “Charted Mercantile
Bank”, the “Charted Bank” and the old “Bank of Bombay” were traded. In 1839, the
40
trading list was broader in Calcutta, where newspapers gave quotations of bank like
“Union Bank”, “Agra Bank” and business ventures like “Bengal Bonded Warehouse”,
“docking Company” and “Steam Tug Company”’ Between 1840-50, banks recognized
about half- a –dozen brokers and merchants in Bombay.

In 1850, the Companies Act introducing limited liability was enacted and the era
of joint stock enterprise began in India. By the mid-19th century, railways were extended,
telegraph was introduced, and hence communication expanded. Consequently, the
country witnessed rapid development of commercial activity. Internal trade and
commerce gradually improved and broadened. This was followed by a growth in
corresponding demand for Indian goods in Europe. Eventually, the brokers participated in
this general progress and prosperity.

The American Civil War of (1860-65) had widespread impact on the fledging
India share market. The supply of cotton to Europe was totally stopped, and India,
especially Bombay, the cotton belt, became the major supplier. There was an unlimited
demand for Indian cotton. Exports doubled between (1861-65). The price of cotton shop
up as the Civil war progressed. The bulk of these exports were paid in bullion.

The largest flow was in 1864-65, the last year of the war. The flush of gold
bullion spawned numerous ventures in a wave of speculation. Companies were floated
for every imaginable purpose-banks, financial association, land reclamation, trading,
cotton cleaning, pressing, hotels, shipping and steamer companies, etc. every company
that was floated commanded a premium.

41
REGULATORY STRUCTURE

The Stock Exchange Division of Ministry of Finance has its Head office at Delhi and
Branch offices at Bombay and Calcutta. The essential functions of the Division are as
follows.

a) Providing linkage between government and stock exchanges.

b) Monitoring the operation of the stock exchanges.

c) Providing advice to overcome the untoward development and crises.

d) Ensuring the compliance of listing providers.

e) Ensuring smooth functioning of the stock exchange.

f) Issuing license to brokers and dealers in securities and also in areas beyond the
jurisdiction of recognized stock exchanges.

SECURITIES AND EXCHANGE BOARD OF INDIA (SEBI)

In 1988, the Securities and Exchange Board of India (SEBI) was established by the
Government of India though an executive resolution, and was subsequently upgraded as a
fully autonomous body (a statutory Board) in the year 1992 with the passing of the
Securities and Exchange Board of India Act (SEBI Act) on 30th January 1992. In place
of Government Control, a statutory and autonomous regulatory board with defined
responsibilities, to cover both development and regulation of the market, and independent
powers has been set up. Paradoxically this is a positive outcome of the Securities Scam of
1990-91.

The SEBI issues from time to time various rules, regulations and guidelines for
promoting the development and stabilization of the securities market in India.

42
A few important among them are as follows:

▪ SEBI (Portfolio Managers) Rules and Regulation, 1992

▪ SEBI (Stock Brokers and Sub-Brokers) Rules and Regulation, 1992

▪ SEBI (Inside Trading) Regulations, 1992

▪ SEBI (Merchant Bankers) Rules and regulations, 1992

▪ SEBI (Mutual Fund) Regulations, 1993

▪ SEBI (Underwriters) Rules and Regulations, 1993

▪ SEBI (Registrars to Issue and Share transfer Agents) Rules and Regulation, 1993

▪ SEBI (Debentures trustee) Rules and Regulation, 1993

▪ SEBI (Bankers to an Issue) Rules and Regulations, 1993

SEBI OBJECTIVES

• To protect the interest of the investors in the securities.

• To promote the development of securities market.

• To regulate the securities market.

SEBI HAS REGULATED THE FOLLOWING

• Primary Market

• Secondary market

• Mutual funds and

• Foreign institutional investments

43
BOMBAY STOCK EXCHANGE

The Bombay Stock Exchange Limited; popularly called The Bombay Stock
Exchange, or BSE is located at Dalal Street, Mumbai Established in 1875, it is the oldest
stock exchange in Asia. There are around 3,500 Indian companies listed with the stock
exchange, and has a significant trading volume. As of July 2005, the market
capitalization of the BSE was about RS. 20 trillion (US $ 466 billion). The BSE SENSEX
(Sensitive Index), also called the BSE 30, is a widely used market index in India and
Asia. As of 2005, it is among the 5 biggest stock exchanges in the world in terms of
transactions volume. Along with the NSE, the companies listed on the BSE have a
combined market capitalization of US$ 125.5 billion.

BSE is the first stock exchange in the country which obtained permanent
recognition (in 1956) from the Government of India under the Securities Contracts
(Regulation) Act 1956. BSE’s pivotal and pre-eminent role in the development of the
Indian capital market is widely recognized. It migrated from the open outcry system to an
online screen-based order driven trading system in 1995. Today, BSE is the world’s
number 1 exchange in terms of the number of listed companies and the world’s 5th in
transaction numbers. The market capitalization as on December 31, 2007 stood at USD
1.79 trillion.

44
 The BSE Index, SENSEX, is India’s first stock market index that enjoys an iconic
stature, and is tracked worldwide. It is an index of 30 stocks representing 12 major
sectors. The SENSEX is constructed on a ‘free-float’ methodology, and is sensitive to
market sentiments and market realities. Apart from the SENSEX, BSE offers 21 indices,
including 12 sectorial indices.

BSE has entered into an index cooperation agreement with Deutsche Borse. This
agreement has made SENSEX and other BSE indices available to investors in Europe and
America. Moreover, Barclays Global Investors (BGI), the global leader in ETF’s through
its Shares® brand, has created the ‘Shares® BSE SENSEX India Tracker’ which tracks
the SENSEX. The ETF enables investors in HONG KONG to take an exposure to the
Indian equity market.

OBJECTIVES OF BSE

• To safeguard the interest of investing public having dealing on the exchanges.

• To establish and promote honorable and just practices in securities transactions

• To promote, develop and maintain well-regulated market for dealing in securities.

• To promote industrial development in the country through efficient resource

mobilization by the way of investment in corporate securities.

45
NATIONAL STOCK EXCHANGE

The national Stock Exchange (NSE) is India’s leading stock exchange covering
various cities and towns across the country. NSE was set up by leading institutions to
provide a modern, fully automated screen-based trading system with national reach.

The exchange has brought about unparalleled transparency, speed & efficiency,
safety and market integrity. It has set up facilities that serve as a model for the securities
industry in terms of systems, practices and procedures.

NSE has played a catalytic role in reforming the Indian securities market in terms
of microstructure, market practices and trading volumes. The market today uses state-of-
art information technology to provide an efficient and transparent trading, clearing and
settlement mechanism viz. demutualization of stock exchange governance, screen based
trading, compression of settlement cycles, dematerialization and electronic transfer of
securities, securities lending and borrowing, professionalization of trading members, fine-
tuned risk management systems, emergence of clearing corporations to assume counter
party risks, market of debt and derivative instruments and intensive use of information
technology.

46
 The National Stock Exchange of India limited has genesis in the report of the
High powered Study Group on Establishment of New Stock Exchanges, which
recommended promotion of a National Stock Exchange by financial institutions (FII’s) to
provide access to investors from all across the country on an equal footing. Based on the
recommendations, NSE was promoted by leading Financial Institutions at the behest of
the Government of India and was incorporated in November 1992 as a tax-paying
company unlike other stock exchanges in the country.

On its recognition as a stock exchange under the Securities Contracts (Regulation)

Act, 1956 in April 1993, NSE commenced operations in the Wholesale Debt Market
(WDM) segment in June 1994. The Capital market (Equities) segment commenced in
June 2000. NSE has been promoted by leading financial institutions, banks, insurance
companies and other financial intermediaries. NSE is one of the first de-metalized stock
exchanges in the country, where the ownership and management of the Exchange is
completely divorced from the right to trade on it. Though the impetus for its
establishment came from policy makers in the country, it has been set up as a public
limited company, owned by the leading institutional investors in the country.

ADVANTAGES OF NSE

• Wider accessibility

• Screen based trading

• Non-disclosure of the trading members identity

• Transparent transactions

• Matching of orders

• Effective settlement of corporate benefit

• Trading in dematerialized form

47
 NSE has many firsts to its name such as creation of the first clearing corporation in
the country in the form of the National Securities Clearing Corporation Limited
(NSCCL), including the first systematic process of member inspections, building a
sophisticated market surveillance system, and a country wide high capacity data network
supporting closed to 200,000 dealers.

NSE is the largest stock exchange of the country. It has a market share of nearly
70% in equity trading and 98% in futures and options trading in India. Globally, NSE
ranks among the top three stock exchanges in terms of number of contracts traded in
single stock futures, index futures and stock options.

We are among the top four of the stock exchanges around the world in terms of
number of transactions and are also ranked among the top ten largest derivatives
exchanges of the world. At NSE, we are constantly working towards creating a more
transparent, vibrant & innovative securities market. This invariably implies that our need
for component people is continuous.

The NSE Group is comprised of National Securities Clearing Corporation Ltd

(NSCCL), NSE InfoTech Services Ltd, NSE.IT Limited, India Index Services and
Products Limited (IISL), Dotex International Ltd., National Securities Depository
Limited (NSDL), National Commodity Clearing Limited (NCCL) and Power Exchange
India Limited (PXI).

As the leading stock exchange and fiscal entity in the country, we believe in
recruiting the finest of talent in the industry. We are looking for talent to be developed
into future leaders of our organization by cross-departmental exposure, continuous self-
development opportunities and ongoing reinforcement to develop & enhance customer
orientation & leadership potential.

48
Table-4.3: Representing Companies went for PUBLIC ISSUE in 2019 with
reference to NSE

Listing Listing
Current Current
Issue Day - Day
Listing Price at Gain /
Company Name Date
Price Close Gain /
NSE Loss
(Rs) Price Loss
(Rs) (%)
(Rs) (%)

Prince Pipes and Fittings Ltd 30-Dec-19 178 166.6 -6.4 552.2 210.22

Ujjivan Small Finance Bank Ltd 12-Dec-19 37 55.9 51.08 26.15 -29.32

CSB Bank Limited 4-Dec-19 195 300.1 53.9 228.2 17.03

Vishwaraj Sugar Industries Ltd 15-Oct-19 60 60.35 0.58 16.55 -72.42

IRCTC Limited 14-Oct-19 320 728.6 127.69 607.25 89.77

Sterling and Wilson Solar Ltd 20-Aug-19 780 725.35 -7.01 259.15 -66.78

Spandana Sphoorty Financial Ltd 19-Aug-19 856 848.4 -0.89 520.95 -39.14

Affle (India) Limited 8-Aug-19 745 875.1 17.46 1022.5 37.25

IndiaMART InterMESH Limited 4-Jul-19 973 1302.6 33.87 4108.75 322.28

Neogen Chemicals Limited 8-May-19 215 263.55 22.58 1222.25 468.49

Polycab India Limited 16-Apr-19 538 655 21.75 2513.9 367.27

Metropolis Healthcare Limited 15-Apr-19 880 959.55 9.04 1319.9 49.99

Rail Vikas Nigam Limited 11-Apr-19 19 19.05 0.26 63.15 232.37

MSTC Limited 29-Mar-19 120 114.2 -4.83 269.35 124.46

Chalet Hotels Limited 7-Feb-19 280 290.4 3.71 318.55 13.77

Xelpmoc Design and Tech Limited 4-Feb-19 66 59.85 -9.32 129.5 96.21

49
 100
200
300
400
500

-100
0
Prince Pipes and Fittings Ltd
Ujjivan Small Finance Bank Ltd
CSB Bank Limited
Vishwaraj Sugar Industries Ltd
Gain / Loss (%)

IRCTC Limited
Sterling and Wilson Solar Ltd

50
Listing Day Gain / Loss (%)

Spandana Sphoorty Financial Ltd

Affle (India) Limited
IndiaMART InterMESH Limited
Neogen Chemicals Limited
PUBLIC ISSUE in 2019 with reference to NSE

Polycab India Limited

Metropolis Healthcare Limited
Rail Vikas Nigam Limited
Graph-4.2: Representing the performance of the Companies went for

MSTC Limited
Chalet Hotels Limited
Xelpmoc Design and Tech…
Table 4.4: Representing the data of companies listed, delisted, withdrawal,

Positive and Negative trading in IPO’s in the year 2019.

Companies went for Public issue 16

Withdrawal 0

Delisted Companies 0

Companies Listed at NSE 16

Positive in Trading 12

Negative in Trading 4

Listing day Gain 11

Listing day Loss 5

INTERPRITATION:

1. In the year 2019, 16 companies went for public issue and all the companies were
successfully listed in NSE.

2. Out of 16 companies, 11 companies were traded on profits and 5 companies were

traded on losses when compared with Issue price as on respected Listing days by
considering their closing values.

3. Out of 16 companies, 12 companies were traded on profits and 4 companies were

traded on losses while comparing the Issue price with current Market price at
NSE as on the date 31st Dec 2023.

51
Table-4.5: Representing Companies went for PUBLIC ISSUE in 2020 with
reference to NSE

Listing Listing
Current
Issue Day - Day Gain /
Listing Price at
Company Name Date
Price Close Gain /
NSE
Loss
(Rs) Price Loss (%)
(Rs)
(Rs) (%)
Mrs. Bectors Food Specialities
Limited 24-Dec-20 288 595.55 106.79 394.6 37.01
Burger King India Limited 14-Dec-20 60 138.4 130.67 106.4 77.33
Gland Pharma Limited 20-Nov-20 1500 1820.45 21.36 1581.45 5.43
Equitas Small Finance Bank Ltd 2-Nov-20 33 32.75 -0.76 51.35 55.61
Likhitha Infrastructure Ltd 15-Oct-20 120 136.6 13.83 200.4 67.00
UTI Asset Management
Company Ltd 12-Oct-20 554 476.6 -13.97 829.85 49.79
Mazagon Dock Shipbuilders
Limited 12-Oct-20 145 173 19.31 700.35 383.00
Angel One Ltd 5-Oct-20 306 275.85 -9.85 1245.6 307.06
Computer Age Management
Services Ltd
1-Oct-20 1230 1401.6 13.95 2169.05 76.35
Chemcon Speciality Chemicals
Limited 1-Oct-20 340 584.8 72 275.4 -19.00
Route Mobile Ltd 21-Sep-20 350 651.1 86.03 1153.5 229.57
Happiest Minds Technologies
Ltd 17-Sep-20 166 371 123.49 848.25 410.99
Mindspace Business Parks 7-Aug-20 275 303.87 10.5 23.42
Yes Bank Ltd 27-Jul-20 12 12.3 2.5 17.45 45.42
Rossari Biotech Ltd 23-Jul-20 425 742.35 74.67 683.35 60.79
SBI Cards and Payment
Services Ltd 16-Mar-20 755 683.2 -9.51 771.25 2.15
Antony Waste Handling Cell
Limited 24-Jan-20 75 withdrawn - - -

52
 100
150
200
250
300
350
450
400

50
0
-50
Mrs. Bectors Food Specialities…
Burger King India Limited
Gland Pharma Limited
Equitas Small Finance Bank Ltd
Likhitha Infrastructure Ltd
Current Gain / Loss (%)
Listing Day Gain / Loss (%)

UTI Asset Management…

Mazagon Dock Shipbuilders…

53
Angel One Ltd
Computer Age Management…
Chemcon Speciality Chemicals…
Route Mobile Ltd
PUBLIC ISSUE in 2020 with reference to NSE

Happiest Minds Technologies…

Mindspace Business Parks
Yes Bank Ltd
Graph-4.3: Representing the performance of the Companies went for

Rossari Biotech Ltd

SBI Cards and Payment…
Antony Waste Handling Cell…
Table 4.6: Representing the data of companies listed, delisted, withdrawal,

Positive and Negative trading in IPO’s in the year 2020.

Companies went for Public issue 17

Withdrawal 1

Delisted Companies 0

Companies Listed at NSE 16

Positive in Trading 15

Negative in Trading 1

Listing day Gain 12

Listing day Loss 4

INTERPRITATION:

1. In the year 2020, 17 companies went for public issue, out of that 16 companies
were successfully listed in NSE.

2. A Company named “Antony Waste Handling Cell Limited” was withdrawn from
Public Issue due to failure in acquiring Minimum Subscription.

3. Out of 16 companies, 12 companies were traded on profit and 4 companies were

traded on losses when compared with Issued price as on respected Listing days by
considering their closing values.

4. Out of 16 companies, 15 companies were traded on profits and only 1 company

was traded on loss while comparing the Issue price with current Market price at
NSE as on the date 31st Dec 2023.

54
 Table-4.7: Representing Companies went for PUBLIC ISSUE in 2021 with
reference to NSE

Listing
Listing Current
Issue Day - Gain
Listing Day Price
Company Name Date
Price Close
Gain / at NSE
/ Loss
(Rs) Price (%)
Loss (%) (Rs)
(Rs)
CMS Info Systems Limited 31-Dec-21 216 237.4 9.91 274.75 26.97
Supriya Lifescience Limited 28-Dec-21 274 390.35 42.46 223.3 -18.39
HP Adhesives Limited 27-Dec-21 274 334.95 22.24 361 31.09
Data Patterns (India) Limited 24-Dec-21 585 754.85 29.03 1014.85 73.77
Medplus Health Services Limited 23-Dec-21 796 1120.85 40.81 634.75 -20.12
Metro Brands Limited 22-Dec-21 500 493.55 -1.29 825.65 64.95
C.E. Info systems limited 21-Dec-21 1033 1394.55 35 1087.05 5.12
Shriram Properties Limited 20-Dec-21 118 99.4 -15.76 71.3 -39.62
Rategain Travel Technologies Limited 17-Dec-21 425 340.5 -19.88 264.1 -37.85
Anand Rathi Wealth Limited 14-Dec-21 550 583.5 6.09 663.65 20.49
Tega Industries Limited 13-Dec-21 453 725.5 60.15 576.65 27.27
Star Health and Allied Insurance
Company Ltd 10-Dec-21 900 906.85 0.76 561.15 -37.67

Go Fashion (India) Limited 30-Nov-21 690 1252.6 81.54 1110.4 61.96

Tarsons Products Limited 26-Nov-21 662 840 26.89 676.55 2.23
Latent View Analytics Limited 23-Nov-21 197 488.6 148.02 345.35 74.24
Sapphire Foods India Limited 18-Nov-21 1180 1216.05 3.06 1326.9 12.61
One 97 Communications Limited 18-Nov-21 2150 1564.15 -27.25 476.1 -77.84
S.J.S. Enterprises Limited 15-Nov-21 542 509.85 -5.93 463.4 -14.42
PB Fintech Limited 15-Nov-21 980 1202.9 22.74 439.3 -55.2
Sigachi Industries Limited 15-Nov-21 163 603.75 270.4 253.4 55.4
Fino Payments Bank Limited 12-Nov-21 577 545.25 -5.5 232.5 -59.52
FSN E-Commerce Ventures Limited 10-Nov-21 1125 2206.7 96.15 144.85 -87.13
Aditya Birla Sun Life AMC Ltd 11-Oct-21 712 699.65 -1.73 436.5 -38.8
Paras Defence And Space Technologies
Limited 1-Oct-21 175 498.75 185 555.75 217.46

55
Sansera Engineering Limited 24-Sep-21 744 818.7 10.04 734.85 -1.35
Ami Organics Limited 14-Sep-21 610 934.55 53.2 977.05 60.02
Vijaya Diagnostic Centre Limited 14-Sep-21 531 619.3 16.63 450.55 -15.14
Aptus Value Housing Finance India Ltd 24-Aug-21 353 346.5 -1.84 275.55 -22.2
Chemplast Sanmar Limited 24-Aug-21 541 534.9 -1.13 419.05 -22.72
Nuvoco Vistas Corporation Ltd 23-Aug-21 570 531.3 -6.79 354.85 -37.97
CarTrade Tech Limited 20-Aug-21 1618 1500.1 -7.29 446.45 -72.42
Devyani International Limited 16-Aug-21 90 123.35 37.06 171.2 89.22
Krsnaa Diagnostics Limited 16-Aug-21 954 990.75 3.85 451.8 -52.53
Exxaro Tiles Limited 16-Aug-21 120 132.25 10.21 110.65 -7.92
Windlas Biotech Limited 16-Aug-21 460 406.7 -11.59 241.9 -47.46
Rolex Rings Limited 9-Aug-21 900 1166.55 29.62 1737.45 92.78
Glenmark Life Sciences Limited 6-Aug-21 720 748.2 3.92 411.8 -42.83
Tatva Chintan Pharma Chem Ltd 29-Jul-21 1083 2310.25 113.32 2045.65 89.62
Zomato Limited 23-Jul-21 76 125.85 65.59 53.65 -29.47
G R Infraprojects Limited 19-Jul-21 837 1746.8 108.7 1149.05 37.1
Clean Science and Technology Ltd 19-Jul-21 900 1585.2 76.13 1417.15 57.56
India Pesticides Limited 5-Jul-21 296 343.15 15.93 230.4 -21.93
Dodla Dairy Limited 28-Jun-21 428 609.1 42.31 492.5 15.01
Krishna Institute of Medical Sciences
Limited 28-Jun-21 825 995.9 20.72 1473.95 78.66

Shyam Metalics and Energy Limited 24-Jun-21 306 375.85 22.83 284.75 -7.32
Sona BLW Precision Forgings Limited 24-Jun-21 291 362.85 24.69 400.55 37.71
POWERGRID Infrastructure Investment
Trust 14-May-21 100 102.98 2.98 284.49 181.51

Macrotech Developers Limited 19-Apr-21 486 463.15 -4.7 1028.5 111.51

Barbeque Nation Hospitality Limited 7-Apr-21 500 590.4 18.08 964.9 90.86
Nazara Technologies Limited 30-Mar-21 1101 1576.8 43.22 532.7 -51.64
Kalyan Jewellers India Limited 26-Mar-21 87 75.3 -13.45 107.7 23.91
Suryoday Small Finance Bank Ltd 26-Mar-21 305 276.2 -9.44 99.8 -67.41
Laxmi Organic Industries Limited 25-Mar-21 130 164.6 26.62 278 113.85
Craftsman Automation Limited 25-Mar-21 1490 1433 -3.83 3159.95 113.08
Anupam Rasayan India Limited 24-Mar-21 555 525.9 -5.24 659.9 18.86
Easy Trip Planners Limited 19-Mar-21 187 208.3 11.39 45.55 -51.23
MTAR Technologies Limited 15-Mar-21 575 1082.25 88.22 1513.5 163.46

56
Heranba Industries Limited 5-Mar-21 627 812.25 29.55 485.8 -22.5
RailTel Corporation of India Limited 26-Feb-21 94 121.4 29.15 114.4 22.13
Nureca Limited 25-Feb-21 400 666.65 66.66 543.3 36.36
Brookfield India Real Estate Trust 16-Feb-21 275 269.96 -1.83 284.49 3.45
Stove Kraft Limited 5-Feb-21 385 445.95 15.83 529.05 37.58
Home First Finance Company India Ltd. 3-Feb-21 518 527.4 1.81 695 33.77
Indigo Paints Limited 2-Feb-21 1490 3118.65 109.31 1252.5 -15.95
Indian Railway Finance Corporation
Limited 29-Jan-21 26 24.85 -4.42 27.85 7.12

Antony Waste Handling Cell Limited 1-Jan-21 315 407.25 29.29 292.85 -7.37

57
 -100
-50
100
150
200
250
300

0
50
CMS Info Systems Limited
Supriya Lifescience Limited
HP Adhesives Limited
Data Patterns (India) Limited
Medplus Health Services Limited
Metro Brands Limited
C.E. Info systems limited
Shriram Properties Limited
Rategain Travel Technologies Limited
Anand Rathi Wealth Limited
Current Gain / Loss (%)

Tega Industries Limited

Listing Day Gain / Loss (%)

Star Health and Allied Insurance…

Go Fashion (India) Limited

58
Tarsons Products Limited
Latent View Analytics Limited
Sapphire Foods India Limited
One 97 Communications Limited
S.J.S. Enterprises Limited
PB Fintech Limited
Sigachi Industries Limited
PUBLIC ISSUE in 2021 with reference to NSE

Fino Payments Bank Limited

FSN E-Commerce Ventures Limited
Aditya Birla Sun Life AMC Ltd
Paras Defence And Space Technologies…
Sansera Engineering Limited
Ami Organics Limited
Graph-4.4: Representing the performance of the Companies went for

Vijaya Diagnostic Centre Limited

Aptus Value Housing Finance India Ltd
Chemplast Sanmar Limited
Nuvoco Vistas Corporation Ltd
CarTrade Tech Limited
Devyani International Limited
Krsnaa Diagnostics Limited
 -100
-50
100
150
200

0
50
Exxaro Tiles Limited
Windlas Biotech Limited
Rolex Rings Limited
Glenmark Life Sciences Limited
Tatva Chintan Pharma Chem Ltd
Zomato Limited
G R Infraprojects Limited
Clean Science and Technology Ltd
India Pesticides Limited
Dodla Dairy Limited
Current Gain / Loss (%)

Krishna Institute of Medical Sciences…

Listing Day Gain / Loss (%)

Shyam Metalics and Energy Limited

Sona BLW Precision Forgings Limited

59
POWERGRID Infrastructure…
Macrotech Developers Limited
Barbeque Nation Hospitality Limited
Nazara Technologies Limited
Kalyan Jewellers India Limited
Suryoday Small Finance Bank Ltd
Laxmi Organic Industries Limited
PUBLIC ISSUE in 2021 with reference to NSE

Craftsman Automation Limited

Anupam Rasayan India Limited
Easy Trip Planners Limited
MTAR Technologies Limited
Heranba Industries Limited
RailTel Corporation of India Limited
Graph-4.5: Representing the performance of the Companies went for

Nureca Limited
Brookfield India Real Estate Trust
Stove Kraft Limited
Home First Finance Company India Ltd.
Indigo Paints Limited
Indian Railway Finance Corporation…
Antony Waste Handling Cell Limited
Table 4.8: Representing the data of companies listed, delisted, withdrawal,

Positive and Negative trading in IPO’s in the year 2021.

Companies went for Public issue 66

Withdrawal 0

Delisted Companies 0

Companies Listed at NSE 66

Positive in Trading 36

Negative in Trading 30

Listing day Gain 47

Listing day Loss 19

INTERPRITATION:

1. In the year 2021, 66 companies went for public issue and all the 16 companies
were successfully listed in NSE.

2. Out of 66 companies, 47 companies were traded on profit and 19 companies were

traded on losses when compared with Issued price as on respected Listing days by
considering their closing values.

3. Out of 66 companies, 36 companies were traded on profits and 30 companies

ware traded on loss while comparing the Issue price with current Market price at
NSE as on the date 31st Dec 2023.

4. Since the companies were traded for near to one year, they mostly show the
negative values, but in future they have a scope to increase and can produce high
returns.

60
Table-4.9: Representing Companies went for PUBLIC ISSUE in 2022 with
reference to NSE

Listing Listing
Current
Issue Day - Day Gain
Listing Price
Company Name Date
Price Close Gain /
at NSE
/ Loss
(Rs) Price Loss (%)
(Rs)
(Rs) (%)
Landmark Cars Limited 23-Dec-22 506 462 -8.69 462 -8.69
Abans Holdings Limited 23-Dec-22 270 189.4 -29.85 189.4 -29.85
Sula Vineyards Limited 22-Dec-22 357 331.15 -7.24 310.75 -12.95
Uniparts India Limited 12-Dec-22 577 539.55 -6.49 540.95 -6.24
Dharmaj Crop Guard Limited 8-Dec-22 237 266.4 12.41 180.75 -23.67
Keystone Realtors Limited 24-Nov-22 541 557.8 3.11 478.8 -12.26
Inox Green Energy Services Limited 23-Nov-22 65 59.1 -9.08 40.85 -37.31
Kaynes Technology India Ltd 22-Nov-22 587 690.1 17.56 680.25 15.66
Archean Chemical Industries Limited 21-Nov-22 407 457.95 12.52 486.5 19.3
Five Star Business Finance Ltd 21-Nov-22 474 489.5 3.27 553.65 16.61
Global Health Limited 16-Nov-22 336 415.65 23.71 444.55 32.07
Bikaji Foods International Limited 16-Nov-22 300 317.45 5.82 350.15 16.63
Fusion Micro Finance Limited 15-Nov-22 368 324.9 -11.71 352 -4.62
DCX Systems Limited 11-Nov-22 207 308.8 49.18 200.45 -3.19
Tracxn Technologies Limited 20-Oct-22 80 93.35 16.69 78.5 -1.63
Electronics Mart India Limited 17-Oct-22 59 84.45 43.14 82.45 39.58
Harsha Engineers International Ltd 26-Sep-22 330 485.9 47.24 365.25 10.52
Tamilnad Mercantile Bank Limited 15-Sep-22 510 508.45 -0.3 483.4 -5.19
Dreamfolks Services Limited 6-Sep-22 326 462.65 41.92 366.1 12.27
Syrma SGS Technology Ltd 26-Aug-22 220 313.05 42.3 254.15 15.59
Aether Industries Limited 3-Jun-22 642 776.75 20.99 818.35 27.48
eMudhra Limited 1-Jun-22 256 258.85 1.11 308.6 20.25
Ethos Limited 30-May-22 878 802.6 -8.59 977.35 11.21
Paradeep Phosphates Limited 27-May-22 42 43.95 4.64 54.4 29.52
Venus Pipes & Tubes Limited 24-May-22 326 351.75 7.9 701.8 115.52
Delhivery Limited 24-May-22 487 537.25 10.32 319.9 -34.28

61
Prudent Corporate Advisory Services
Limited 20-May-22 630 562.7 -10.68 878.7 38.8
Life Insurance Corporation of India
(LIC) 17-May-22 949 875.45 -7.75 658.75 -30.55
Rainbow Children's Medicare
Limited 10-May-22 542 450.1 -16.96 709.75 30.83

Campus Activewear Limited 9-May-22 292 378.6 29.66 383.95 31.47

Hariom Pipe Industries Limited 13-Apr-22 153 224.7 46.86 300.95 97.39
Veranda Learning Solutions Limited 11-Apr-22 137 160.4 17.08 229.05 68.54
Uma Exports Limited 7-Apr-22 68 84 23.53 42.55 -37.21
Vedant Fashions Limited 16-Feb-22 866 934.85 7.95 1285.25 47.81
Adani Wilmar Limited 8-Feb-22 230 265.2 15.3 499.65 117.26
AGS Transact Technologies Ltd 31-Jan-22 175 161.3 -7.83 64.95 -62.83

62
 20
40
60
80

0
100
120
140

-80
-60
-40
-20
Landmark Cars Limited
Abans Holdings Limited
Sula Vineyards Limited
Uniparts India Limited
Dharmaj Crop Guard Limited
Keystone Realtors Limited
Inox Green Energy Services Limited
Kaynes Technology India Ltd
Archean Chemical Industries Limited
Five Star Business Finance Ltd
Global Health Limited
Bikaji Foods International Limited
Current Gain / Loss (%)

Fusion Micro Finance Limited

DCX Systems Limited
Listing Day Gain / Loss (%)

63
Tracxn Technologies Limited
Electronics Mart India Limited
Harsha Engineers International Ltd
Tamilnad Mercantile Bank Limited
Dreamfolks Services Limited
Syrma SGS Technology Ltd
Aether Industries Limited
eMudhra Limited
PUBLIC ISSUE in 2022 with reference to NSE

Ethos Limited
Paradeep Phosphates Limited
Venus Pipes & Tubes Limited
Delhivery Limited
Prudent Corporate Advisory Services…
Life Insurance Corporation of India…
Graph-4.6: Representing the performance of the Companies went for

Rainbow Children's Medicare Limited

Campus Activewear Limited
Hariom Pipe Industries Limited
Veranda Learning Solutions Limited
Uma Exports Limited
Vedant Fashions Limited
Adani Wilmar Limited
AGS Transact Technologies Ltd
Table 4.10: Representing the data of companies listed, delisted, withdrawal,

Positive and Negative trading in IPO’s in the year 2022.

COMPANIES WENT FOR PUBLIC ISSUE 36

WITHDRAWELS 0

DELISTED IN TRADING 0

COMPANIES IN TRADING 36
POSITIVELY IN TRADING 21
NEGATIVELY IN TRADING 15

LISTING DAY GAIN 24

LISTING DAY LOSS 12

INTERPRITATION:

1. In the year 2022, 36 companies went for public issue and all the 36 companies
were successfully listed in NSE.

2. Out of 36 companies, 24 companies were traded on profit and 12companies were

traded on losses when compared with Issued price as on respected Listing days by
considering their closing values.

3. Out of 36 companies, 21 companies were traded on profits and 15 companies

ware traded on loss while comparing the Issue price with current Market price at
NSE as on the date 31st Dec 2023.

4. Since the companies were traded for near to one year, they mostly show the
negative values, but in future they have a scope to increase and can produce high
returns.

64
 5. Table-4.9: Representing Companies went for PUBLIC ISSUE in 2023
with reference to NSE

Listing Listing
Current
Issue Day - Day Gain
Listing Price
Company Name Date
Price Close Gain /
at NSE
/ Loss
(Rs) Price Loss (%)
(Rs)
(Rs) (%)
Innova Captab Limited 29-Dec-23 448 543.90 21.4 541.40 21
Azad Engineering Limited 28-Dec-23 524 692.05 32.07 672.80 28.39
Happy Forgings Limited 27-Dec-23 850 1029.25 21.08 951.65 11.95
Rbz jewellers Limited 27-Dec-23 100 115.75 15.75 209.75 109.75
Credo Brands Marketing Limited 27-Dec-23 280 291.50 3.94 267.65 -4.41
Muthoot Microfin Limited 26-Dec-23 291 251.15 -13.69 231.85 -20.32
Motisons Jewellers Limited 26-Dec-23 55 98.15 78.45 206.15 274.81
Suraj Estate Developers Limited 26-Dec-23 360 330.60 -8.16 344.75 -4.23
Inox India Limited 21-Dec-23 660 910.65 37.97 865.40 31.12
Doms Industries Limited 20-Dec-23 790 1307 65.44 1451.80 83.77
India Shelter Finance Corporation
Limited
20-Dec-23 493 544.70 10.48 580 17.64

Flair Writing Industries Limited 01-Dec-23 304 371 22.03 332 9.21
Giandhar Oil Refinery Limited 30-Nov-23 169 256 51.47 256 51.47
Fedbank Financial Limited 30-Nov-23 140 137.45 -1.82 136.70 -1.80
Tata Technologies Limited 30-Nov-23 500 1241.55 148.31 1143 128.6
India Renewable Energy
Development Limited 29-Nov-23 32 112.45 251.40 132.70 314.68

ASK Automotives Limited 15-Nov-23 282 286.85 1.71 302.90 7.41

ESAF Small Finance Bank Limited 10-Nov-23 60 73.85 23.08 70.80 18
Honasa Consumer Limited 07-Nov-23 324 420.70 29.84 484.35 49.49
Cello World Limited 06-Nov-23 648 787.60 21.54 876.95 35.33
Blue Jet Helathcare Limited 01-Nov-23 346 362 4.62 374.60 8.26
IRM Energy Limited 26-Oct-23 505 487 -3.56 528.05 4.56
Plaza Wires Limited 12-Oct-23 54 99.95 85.09 109 101.85
Valiant Laboratories Limited 06-Oct-23 140 178.65 27.60 201.70 44.07
Updater Services Limited 04-Oct-23 300 306.15 2.05 345.50 15.16
JSW Infrastructure Limited 03-Oct-23 119 224.80 88.90 211 77.31

65
Manoj Vaibhav Gems “N” Jewellers
Limited 03-Oct-23 215 335.45 56.02 318.60 48.18
Yatra Online Limited 28-Sep-23 142 138.55 -2.42 174.30 22.74
Sai Skills(kalamandir)Limited 27-Sep-23 222 276.20 24.41 245.25 10.47
Signatureglobal (india) Limited 27-Sep-23 385 477.75 24.09 1125.05 192.22
SAMHI Hotels Limited 22-Sep-23 126 143.40 13.80 179.85 42.73
Zaggle Prepaid Ocean Services
LimIted 22-Sep-23 164 158.35 -3.44 217.60 32.68

EMS Limited 21-Sep-23 211 267.70 26.87 473.30 124.31

RR Kabel Limited 20-Sep-23 1035 1181.30 14.13 1450.25 40.12
Jupiter Life Line Hospitals Limited 18-Sep-23 735 1063.80 44.73 1090.45 48.36
Ratnaveer Precision Engineering
Limited 11-Sep-23 98 116.30 18.67 116.20 18.57
Rishabh Instruments Limited 11-Sep-23 441 447.60 1.49 570.70 29.41
Vishnu Prakash R Punglia Limited 05-Sep-23 99 172.75 74.49 213.60 115.75
Aeroflex Industries Limited 31-Aug-23 108 165 52.77 159.90 48.05
Pyramid Technoplast Limited 29-Aug-23 166 161.10 -2.95 185 11.45
TVS Supply Chain Solutions Limited 23-Aug-23 197 197.05 0.025 194.65 -1.19
Concord Biotech Limited 18-Aug-23 741 942.80 27.23 1401 89.06
SBFC Finance Limited 16-Aug-23 57 88.25 54.82 85.90 50.70
Yatharth Hospital and Trauma Care
Services Limited 07-Aug-23 300 330.20 10.06 378.50 26.16
Netweb Technologies India Limited 27-Jul-23 500 898.45 79.69 1409.80 181.96
Utkarsh Small Finance Bank Limited 21-Jul-23 25 48 92 59.50 138
Senco Gold Limited 14-Jul-23 317 405.30 27.85 770.10 142.93
Cyient DLM Limited 10-Jul-23 265 501.90 89.39 665.95 151.30
Idea Forge Technology Limited 07-Jul-23 672 1294.95 92.70 768.75 14.39
HMA Agro Industries Limited 04-Jul-23 585 58.77 -89.95 69.50 -88.11
IKIO Lighting Limited 16-Jun-23 285 403.85 41.70 331.55 16.33
Mankind Pharma Limited 09-May-23 1080 1394.95 29.16 2158 99.81
Avalon Technologies Limited 18-Apr-23 436 397.95 -8.72 527.05 20.88
Udayshivakumar Infra Limited 03-Apr-23 35 34.70 -0.85 47.60 36
Global Surfaces Limited 23-Mar-23 140 162.50 16.07 284.25 103.03
Divgi Torq Transfer Systems Limited 14-Mar-23 590 625.52 6.02 984.95 66.94
Adani Enterprises Limited 08-Feb-23 3112 withdrawn - - -
Sah Polymers Limited 12-Jan-23 65 84.80 29.84 119.95 84.53
RadiantCashManagementServices Lt 04-Jan-23 94 107.85 14.73 90 -4.25

66
 -50
-30
10
30
50
70
90
110
130
170
190

150
Landmark Cars Limited
Abans Holdings Limited

-29.85
Sula Vineyards Limited

-7.24
-10 -8.69 -12.95
Uniparts India Limited

-6.49
Dharmaj Crop Guard Limited

-23.67
Keystone Realtors Limited

3.11
-6.24 -12.26
Inox Green Energy Services Limited

-9.08
-37.31
Kaynes Technology India Ltd

12.41 17.56
15.66
Archean Chemical Industries Limited
Five Star Business Finance Ltd 19.3
12.52
Current Gain / Loss (%)

Global Health Limited

23.71
32.07

Bikaji Foods International Limited

Fusion Micro Finance Limited
-4.62
-11.71

DCX Systems Limited

3.27 5.82 -3.19

Tracxn Technologies Limited

-1.63

Electronics Mart India Limited

39.58
49.18 43.14

Harsha Engineers International Ltd

67
Tamilnad Mercantile Bank Limited
-0.3
-5.19

Dreamfolks Services Limited

16.61 16.63 16.69 10.52 12.27
47.24 41.92

Syrma SGS Technology Ltd

42.3
PUBLIC ISSUE in 2023 with reference to NSE

15.59

Aether Industries Limited

20.99
27.48

eMudhra Limited
1.11
20.25
Listing Day Gain / Loss (%)

Ethos Limited
-8.59
11.21

Paradeep Phosphates Limited

29.52

Venus Pipes & Tubes Limited

4.647.9
115.52

Delhivery Limited
10.32

Prudent Corporate Advisory Services …

38.8

Life Insurance Corporation of India …

-7.75
-34.28-30.55

Rainbow Children's Medicare Limited

30.83

-10.68-16.96

Campus Activewear Limited

31.47

Hariom Pipe Industries Limited

46.86
97.39

Veranda Learning Solutions Limited

17.08
68.54

Uma Exports Limited

29.66 23.53

-37.21

Vedant Fashions Limited

7.95
47.81

Adani Wilmar Limited

15.3
117.26

-7.83

AGS Transact Technologies Ltd

Table 4.10: Representing the data of companies listed, delisted, withdrawal,

Positive and Negative trading in IPO’s in the year 2023.

COMPANIES WENT FOR PUBLIC ISSUE 58

WITHDRAWELS 1

DELISTED IN TRADING 0

COMPANIES IN TRADING 57
POSITIVELY IN TRADING 50
NEGATIVELY IN TRADING 07

LISTING DAY GAIN 47

LISTING DAY LOSS 10.

INTERPRITATION:

1. In the year 2023, 58 companies went for public issue, out of that 57 companies
were successfully listed in NSE.

2. Out of 57 companies, 47 companies were traded on profit and 10 companies were

traded on losses when compared with Issued price as on respected Listing days by
considering their closing values.

3. Out of 57 companies, 50 companies were traded on profits and 7 companies ware

traded on loss while comparing the Issue price with current Market price at NSE
as on the date 31st Dec 2023.

4. Since the companies were traded for near to one year, they mostly show the
negative values, but in future they have a scope to increase and can produce high
returns.

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Graph-4.7: Representing the total IPO’s issued from 2019 – 2023.

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60 IPO's issued
Successful IPO's
50
Failed IPO's
40

30

20

10

0
2019 2020 2021 2022 2023

INTERPRITATION:

1. The above Bar Graph represents, the Total IPO’s Issued, Listed and Failure from
the years 2019, 2020, 2021, 2022 and 2023.

2. In the year 2019, 16 companies went for public issue and every company were
successfully listed in NSE

3. In the year 2020, 17 companies went for public issue, out of that 16 companies
were successfully listed in NSE and 1 company was withdrawn, because of failure
in acquiring “Minimum Subscription”.

4. In the year 2021, 66 companies went for public issue and every company were
successfully listed in NSE

5. In the year 2022, 36 companies went for public issue and every company were
successfully listed in NSE

6. In the year 2023, 58 companies went for public issue, out of that 57 companies
were successfully listed in NSE and 1 company was withdrawn, because of failure
in acquiring “Minimum Subscription”

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Reasons for the Failure of companies in Public Issue

Telecommunication infrastructure provider Dinesh Engineers on Wednesday withdrew its

Rs 1.85-billion initial public offering (IPO) due to weak market conditions.

The investment banker to Dinesh Engineers “has informed the exchange that the entire
application money shall be refunded forthwith and the IPO of Dinesh Engineers may be
treated as withdrawn,” said a notification to the National Stock Exchange (NSE). Dinesh
Engineers, whose IPO opened on Friday, managed to garner only 17 per cent
subscriptions.

Weakness in the markets of late is adversely impacting the primary market.

Last month, housing finance firm Aavas Financiers’ Rs 17-billion IPO had managed to
get only 97 per cent subscriptions. State-owned Garden Reach Shipbuilders & Engineers’
Rs 3.4-billion IPO had just about managed to scrape through on Monday, but not without
a reduction in the price band and extension of the closing day. Investment bankers say it
is unlikely that any company would launch share sale till the secondary market stabilises.

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Findings:

➢ In 2018, out of 24 companies 11 companies are positively traded and remaining

13 companies are negatively traded.

➢ In 2019, out of 17 companies 5 companies are positively traded and remaining 12

companies are negatively traded.

➢ In 2020, out of 16 companies 12 companies are positively traded and remaining 4

companies are negatively traded.

➢ In 2021, out of 66 companies 47 companies are positively traded and remaining

19 companies are negatively traded.

➢ In 2022, out of 36 companies 24 companies are positively traded and remaining

12 companies are negatively traded.

➢ Over all, from the 2017-2021, 159 companies were listed as IPO’s 157 companies
were trading, 0 companies were de-listed, 2 companies withdrawn from IPO’s.

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SUGGESTIONS
➢ Investor should invest in the company which is fundamentally good.

➢ In the present situation, it is better for an investor to invest in shares related to the
companies that went to IPO during the period

➢ An investor need to analyze the companies which are yielding profitable returns
before going to invest in those companies if he is interested to do so.

➢ An investor is suggested to invest for a long period of time to get profitable

returns i.e., long term investment is preferable.

➢ An investor is suggested to follow fundamental analysis to invest in primary

markets when compared to technical analysis.

➢ The impressive growth of Indian stock market in the last few years has been
largely due to increased number of companies that listed their stock for the first
time on stock exchanges via initial public offerings (IPOs).

➢ The number of IPOs which came in different years in the Indian stock market it is
found that there are high variations in the number of IPOs that came in different
years in the last.

➢ The age of the company without an IPO, is the average time since its
incorporation till the public offering is made.

➢ The IPO lists at the stock exchange few days after closing of the issue. On the
listing day it becomes available for trading in the secondary market.

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BIBLIOGRAPHY

Reference Books

• R. Tee Williams, An Introduction to trading in the financial markets,

Academic Press,2011

• S Kevin, Security Analysis and Portfolio Management, Prentice hall India

learning private ltd, 2005.

• Prasanna Chandra, Financial Management-Theory and Practice , Tata McGraw

Hill,1977

Websites
www.nseindia.com

www.sebi.gov.in

www.bseindia.com

www.finance.yahoo.com

www.chittorgarh.com

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