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INTRODUCTION ABOUT ARCADIA

ABOUT ARCADIA :

Arcadia came to life in1995, right on the wave of a post –

liberalization market economy. As financial services became a major

contributor to economic growth, Arcadia has steadily shaped into a

leading financial service provider.

In 1995, Arcadia was a small company with just 5 employees.

Today, Arcadia has market presence across the country, with over 250

branches and franchisee outlets. Arcadia has established a strong retail

network not only in metros but also in tier two and tier three cities.

Traditionally, Arcadia operation was concentrated in the fast-moving

capital market of Western India. But sensing great potential, Arcadia has

launched strong expansion plans in the North and South.

This systematic presence-building and efficient delivery of

service has put Arcadia among the fastest growing retail broking houses

in the country, with memberships in :

(1) The National Stock Exchange of India ( NSE )

(2) The Bombay Stock Exchange (BSE)

(3) The Multi Commodity Exchange ( MCX )

(4) The National Commodity & Derivatives Exchange ( NCDEX )

(5) The Depository Participate Of CDSL

Today Arcadia has accumulated acknowledged leadership in

execution and clearing services on exchange-traded derivatives and

cash-market products.

Working with leading stock exchanges and noted financial

institution has frilled in us the importance of real-time information and use

of analytical tools in investment decision. Practicing this over the years

has made us experts in investor behaviour.

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Arcadia’s integrated and innovation use of technology provides

clients with the ability to trade offline and online. Clients have constant

access to account information either on internet or through our electronic

File Transfer Protocol (FTP).

TOP MANAGEMENT :

MR. ANTHONY SEQUEIRA (Founder, Managing Director):

The chief promoter of Arcadia has been associated with the

capital markets for over 25 years.

Mr. Sequeira has a rich 19 years of banking experience with

Corporation Bank and Syndicate Bank. For 6 years he was the Chief

Executive of M/S Uday S. Kotak, now known as Kotak Securities. Mr.

Sequeira is respected in the organization for being a complete

taskmaster. His thrust for client satisfaction is an energizing force within

the organization. He is completely committed toward making Arcadia a

one-stop financial service provider.

MR. NITIN BRAHMBHATT (Director):

The director is an arbitrage consultant by profession, with 25

years experience in the capital market. Between 1985 and 1995, he

played the role of a leading market maker in the Bombay Stock

Exchange.

He has a rich experience in the field of arbitrage. The credit for

building the arbitrage team for Arcadia goes to him. It is his leadership,

Arcadia has created a mammoth network of branches and franchisees.

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VISION AND MISSION :

(1) To be a reputed provider of reliable, ready-to-use, high

integrity financial services.

(2) To offer customer delight with best value for money and

maximum market access.

(3) To persistently expand territorial presence and enlarge

clientele base.

(4) To be an involved business, with focus on technology,

innovation and creativity.

(5) To continually develop quality products, keeping pace with

emerging market needs.

(6) To create a principled work atmosphere that empowers

employees to learn and grow.

PRESENCE IN MARKET :

REGITERED OFFICE :

Arcadia Share & Stock Brokers Pvt. Ltd.,

Second Floor, Lenin Complex, Opposite Apollo Hospital,

Bhagyanagar Colony, Kukatpally,

Hydrabad: 500072

HEAD OFFICE :

Arcadia Share & Stock Brokers Private Ltd.,

328 Ninad, building no.7, Service Road, Bandra (East),

Mumbai – 400 051.

Telephone: +91-022-26478888, Fax: +91-22-26478988

Note: Arcadia has over 55 branches in Mumbai

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REGIONAL OFFICES :

Ahmedabad : 079-32930948 Kochi : 0484-3077505

Amritsar : 0183-3248222 Ludhiana : 0181-3248555

Bangalore : 08041-284862 Mangalore: 0824-2442112

Bhavnagar : 0278-3001755 Mohali : 0181-3248555

Bikaner : 0151-2272926 Nadiad : 02068-3093237

Goa : 0832-2221753 New Delhi : 011-55326101

Hyderabad : 040-32400308 Surat : 0261-243248

Jaipur : 0141-3213755 Udupi : 0820-3255820

Jalandhar : 0181-3248555 Vadodara : 0265-3922250

Kannur : 0497-2703910

PRODUCT AND SERVICES :

They have a wide range of products specially designed to meet

financial requirement of individual and corporate investors, both Indians

and NRI (Non Resident Indians.)

1). Capital Market:

They offer trading in NSE that has played a catalytic role in

reforming the Indians securities market in term of microstructure, market

practices and trading volumes. Here we trade both in capital and future &

option markets.

2). Commodity Market :

They help us at the ‘independent and de-mutulised

multi-commodity exchange. They facilitate trading in the National

commodity & derivatives Exchange Ltd.

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3). NRI (Non – resident Indian) :

They have a separate desk to guide Non-resident Indian

investors about Initial Public Offer (IPO), the secondary market of listed

stocks and mutual funds.

4).Internet-Based trading :

The biggest advantage of online trading is that investor

command an expansive access to information. Corporate analysis and

financial results are available on the net. In order to facilitate smooth and

safe trading on the net. Also, Arcadia trading terminals are linked with

HDFC Bank and UTI Bank to facilitate hassle-free transfer of funds.

5).Mutual Funds :

MF is one of the best investments in the contemporary

market because they are cost-efficient and easy to manage. It’s the MF

manager who decides the direction of your investment. In fact, by pooling

money together in a MF, small investors themselves can purchase stock

and bonds paying much lower trading costs.

6). IPO :

Timely investment in Initial Public Offerings, better known as

IPOs, offer great opportunity for netting high returns in a short time span.

7). Catch the Market Live :

The daily market report contains updated and

comprehensive market information with guided insight into the investment

environment and market swings of the day.

8). Book-Keeping in back office.

9). Depository services.

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INTRODUCTION ABOUT STOCK MARKET

CAPITAL MARKET :

Capital market deals with long – term funds. It supplies long

term and medium term funds. Capital market deals with ordinary shares,

stocks, debentures and bonds of corporation and securities of the govt.

the funds which flow into the capital market comes from savers. Since

1951, the Indian capital market has been broadening slowly. The volume

of savings and investment, have started showing steady improvement.

and further, there are various institutions, which operate in the capital

market give quantitative and qualitative direction to the flow of funds and

bring rational allocation of resources. The structures of Capital Market

are as follow.

Marketable securities: Marketable securities are those which can easily

transfer from one person to another person. These are issued through

new issue market and traded through stock market.

Non- Marketable Securities: Non- Marketable securities are issued by

Post office as saving certificate, deposits; deposits with Bank and

Financial Institutions, Loan & advances from Bank & Financial Institutions

etc.

CAPITAL MARKET

MARKETABLE SECURITIES

NON-MARKETABLE

SECURITIES

GOVT.SECURITIES CORPORATE

SECURITIES

DEBTINSTRUME-

NT

MUTUAL FUND

BANK DEPOSIT

COMPANYDEPOSIT

POSTOFFICE

LOAN AND

ADVANCES

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MEANING OF STOCK EXCHANGE :

Stock exchange represents an organized market in trading of

securities. Stock exchange is established with the main purpose of

providing a market place for the members to deal in securities. Stock

exchanges are indispensable for the proper functioning of corporate

enterprises. Stock exchange helps the investors, ready and continuous

market, negotiability, liquidity and safety of investments.

According to securities contracts (regulation) Act 1956, stock

exchange means anybody or individuals, wherever incorporated or not

constituted for the purpose of assessing, regulation or controlling the

business of buying, selling or dealing in securities.

According to this Act, a security includes shares, scrip’s, stocks,

bonds, debentures or other marketable securities.

HISTORY OF STOCK EXCHANGE :

Exchange arises in Europe in 16th century. Trading was carried

on in those exchanges in terms of “securities”. The London stock

exchange was tended to deals only in company shares at that time. It may

also consider as the earliest of modern type of stock markets.

1860, the exchange flourished with 60 brokers. In fact the

'Share Mania' in India began with the American Civil War broke and the

cotton supply from the US to Europe stopped. Further the brokers

increased to 250.At the end of the war in 1874, the market found a place

in a street (now called Dalal Street). and The National Stock Exchange Of

India (NSE) was incorporated in November 1992 as tax-paying company.

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LISTING OF SECURITIES :

Listing means admission of securities to dealings on a

recognized stock exchange of any incorporated company, central & state

Governments, Quasi Governmental and other financial institution,

municipalities, electricity, housing boards etc. Stock Exchange means any

body of individuals, whether incorporated or not, constituted for the

purpose of assisting, regulation or controlling the business of buying,

selling or dealing of securities.

Every recognized stock exchange i.e. a stock exchange which

is for the time being recognized by the central Govt. under section 4 of the

securities regulation Act, 1956, has the power to make bye-laws for the

listing of securities on the stock exchange.

Securities are bought and sold in a recognized stock exchange

are known as ‘Brokers’. The price at which the securities are bought and

sold on a recognized stock exchange is known as “official Quotation “.

THE STOCK EXCHANGES IN INDIA :

1). BOMBAY STOCK EXCHANGE (BSE) :

Bombay Stock Exchange Limited is the oldest stock exchange

in Asia with a rich heritage. Popularly known as "BSE", it was established

as "The Native Share & Stock Brokers Association" in 1875. It is the first

stock exchange in the country to obtain permanent recognition in 1956

from the Government of India under the Securities Contracts (Regulation)

Act, 1956.The Exchange's pivotal and pre-eminent role in the

development of the Indian capital market is widely recognized and its

index, SENSEX, is tracked worldwide.

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The Exchange has a nation-wide reach with a presence in 417

cities and towns of India. The systems and processes of the Exchange

are designed to safeguard market integrity and enhance transparency in

operations.

During the year 2004-2005, the trading volumes on the

Exchange showed robust growth. The Exchange provides an efficient and

transparent market for trading in equity, debt instruments and Derivatives.

2). NATIONAL STOCK EXCHANGE (NSE) :

The National Stock Exchange of India (NSE) was incorporated

in November 1992 as a tax-paying company. It is recognized under

Securities Contracts (Regulation) Act, 1956 in 1993 as a stock exchange.

In June 1994, it commenced operations in the Wholesale Debt Market

(WDM). In November, the same year, the Capital Market (Equities)

segment commenced operations and the Derivatives segment in June

2000.

NSE can handle up to 6 million trades per day in Capital

Market segment. In order to capitalize on in-house expertise in

technology, NSE set up a separate company, NSE.IT, in October 1999.

The Exchange currently manages its data centre operations, system and

database administration, design and development of in-house systems

and design and implementation of telecommunication solutions.

NSE is one of the largest interactive VSAT based stock

exchanges in the world. Today it supports more than 3000 VSATs. The

NSE- network is the largest private wide area network in the country and

the first extended C- Band VSAT network in the world. Currently more

than 9000 users are trading on the real time-online NSE application. .

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STOCK MARKET INDEX :

An index is benchmark for measuring the performance of fund

managers and is a comprehensive measure of market trends, intended for

investors who are concerned with general stock market price movements.

An Index comprises stocks that have large liquidity and market

capitalization. Each stock is given a weight age in the Index equivalent to

its market capitalization.

It has practical applicable too in the world of finance. Both BSE

& NSE has launched index futures based on the S & P, CNX Nifty and

BSE Sensex receptively. In global market for index services and their

applications is a multi- trillion rupees industry.

FUNCTIONS :

Stock exchange is established with the main purpose of

proving a market place for the members to deal in securities under

well laid down regulation and the protect the interest of the

investors. Thus, the functions are as follow.

Facilitate continuous, ready and open market for selling and

buying securities.

Provide quotation for share/ stock for facilitate trading and

marketability.

Extend liquidity to such stock as they are easily marketable

security traded.

Promote savings and investment in the economy by attracting

funds from the investors.

Allow companies to float their shares on the market.

Provide capital to profitable sectors.

Ensure safety and fair dealings to all.

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CHANGES IN STOCK EXCHANGES :

At the initial stages, there was floor trading i.e. people who want

to buy or sales where company together and transfer their shares and

securities required scrip’s as per shouting the price of shares for buy or

sell it.

(1). Demate form of trading :

All scrip’s are put in Demate for trading in the last few years.

By compulsory using of Demate from is increase the volume and

increased in liquidity.

(2). Electronics form of trading :

Globalization of stock exchange is now on way. The

electronics are has come to stock exchange nearly 100 % of all

transaction are executed through Electronics Media more and more

brokers and sub-brokers are setting into the internet.

(a). On – Line trading systems :

The SEBI have allowed On – Line trading and broker would

rush to the web site and trading through web site would increased. On the

Internet one would be able to trade instantly and transferantly from any

part of the world. In this method the investor comes to know immediately

the trade members, time, rate at which the trade room places.

(3). Electronics Fund Collection :

Under this systems. The broker set their funds directly credited

to their account and the clients can in then set their accounts credited or

debited for the net funds to flow address the country.

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ABOUT IPO/FPO

Initial Public Offering (IPO) :

Initial Public Offering (IPO) is when an unlisted company makes

either a 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 the issuer’s securities.

Follow on Public Offering (FPO) :

A follow on public offering (FPO) 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. An offer for sale in such

scenario is allowed only if it is made to satisfy listing or continuous listing

obligations.

Book Building - About Book Building :

Book Building is basically a capital issuance process used in Initial Public

Offer (IPO) which aids price and demand discovery. It is a process used

for marketing a public offer of equity shares of a company. It is a

mechanism where, during the period for which the book for the IPO is

open, bids are collected from investors at various prices, which are above

or equal to the floor price. The process aims at tapping both wholesale

and retail investors. The offer/issue price is then determined after the bid

closing date based on certain evaluation criteria.

Book Building – Glossary :

Bid :

A bid is the demand for a security that can be entered by the

syndicate/sub-syndicate members in the system. The two main

components of a bid are the price and the quantity.

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Bidder :

The person who has placed a bid in the Book Building process.

Book Running Lead Manager :

A Lead Merchant Banker Who has been appointed by the

issuer company as the Book Runner Lead Manager. The name of the

Book Runner Lead Manager is mentioned in the offer document of the

issuer company.

Cut off Price :

In Book building issue, the issuer is required to indicate either

the price band or a floor price in the red herring prospectus. The actual

discovered 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”. This is

decided by the issuer and Lead manager after considering the book and

investors’ appetite for the stock.

Floor Price :

The minimum offer price below which bids cannot be entered.

The Issuer Company in consultation with the Book Running Lead

Manager fixes the floor price.

Price Band :

The prospect may contain either the floor price for the securities or a

price band within which the investors can bid. The spread between the floor

price and 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

disseminated by informing the stock exchanges, by issuing press release and

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also indicating the change on the relevant website and the terminals of the

syndicate members. In case the price band is revised, the bidding period shall

be extended for a further period of three days, subject to the total bidding

period not exceeding thirteen days. It is up to the company to decide on

the price or the price band, in consultation with Merchant Bankers.

Fixed Price offers :

An issuer company is allowed to freely price the issue. The

basis of issue price is disclosed in the offer document where the issuer

discloses in detail about the qualitative and quantitative factors justifying

the issue price. The Issuer company can mention a price band of 20%

(cap in the price band should not be more than 20% of the floor price) in

the Draft offer documents filed with SEBI and actual price can be

determined at a later date before filing of the final offer document with

SEBI.

Merchant Banker :

An entity registered under the Securities and Exchange Board

of India (Merchant Bankers) Regulations, 1999. Merchant Banker shall

decide the price of an issue.

Syndicate Members :

The Book Runner(s) may appoint those intermediaries who are

registered with the Board and who are permitted to carry on activity as an

‘Underwriter’ as syndicate members. The syndicate members are mainly

appointed to collect and entire the bid forms in a book built issue.

Order Book :

It is an 'electronic book' that shows the demand for the shares

of the company at various prices.

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The Process :

The Issuer who is planning an IPO nominates a lead merchant

banker as a 'book runner'.

The Issuer specifies the number of securities to be issued and the

price band for orders.

The Issuer also appoints syndicate members with whom orders can

be placed by the investors.

Investors place their order with a syndicate member who inputs the

orders into the 'electronic book'. This process is called 'bidding' and

is similar to open auction.

A Book should remain open for a minimum of 5 days.

Bids cannot be entered less than the floor price.

Bids can be revised by the bidder before the issue closes.

On the close of the book building period the 'book runner evaluates

the bids on the basis of the evaluation criteria which may include –

Price Aggression

Investor quality

Earliness of bids, etc.

The book runner and the company conclude the final price at which

it is willing to issue the stock and allocation of securities.

Generally, the number of shares is fixed; the issue size gets frozen

based on the price per share discovered through the book building

process.

Allocation of securities is made to the successful bidders.

Book Building is a good concept and represents a capital market

which is in the process of maturing.

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Corporate may raise capital in the primary market by way of an

initial public offer, rights issue or private placement. An Initial Public Offer

(IPO) is the selling of securities to the public in the primary market. This

Initial Public Offering can be made through the fixed price method, book

building method or a combination of both.

In case the issuer chooses to issue securities through the book

building route then as per SEBI guidelines, an issuer company can issue

securities in the following manner:

a. 100% of the net offer to the public through the book building

route.

b. 75% of the net offer to the public through the book building

process and 25% through the fixed price portion.

LISTING OF SECURITIES :

Listing means admission of the securities to dealings on a

recognized 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.

Minimum Listing Requirements for new companies :

The following revised eligibility criteria for listing of companies

on the Exchange, through Initial Public Offerings (IPOs) & Follow-on

Public Offerings (FPOs), effective August 1, 2006.

Eligibility Criteria for IPOs/FPOs :

Companies have been classified as large cap companies &

small cap companies. A large cap company is a company with a minimum

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issue size of Rs. 10 crores & market capitalization of not less than Rs. 25

crores. A small cap company is a company other than a large cap

company.

In respect of Large Cap Companies :

The minimum post-issue paid-up capital of the applicant

company (hereinafter referred to as "the Company") shall be

Rs. 3 crores;

The minimum issue size shall be Rs. 10 crores; and

The minimum market capitalization of the Company shall be

Rs. 25 crores (market capitalization shall be calculated by

multiplying the post-issue paid-up number of equity shares

with the issue price)

In respect of Small Cap Companies :

The minimum post-issue paid-up capital of the Company shall

be Rs. 3 crores; and

The minimum issue size shall be Rs. 3 crores; and

The minimum market capitalization of the Company shall be

Rs. 5 crores (market capitalization shall be calculated by

multiplying the post-issue paid-up number of equity shares

with the issue price); and

The minimum income/turnover of the Company should be Rs.

3 crores in each of the preceding three 12-months period;

and

The minimum number of public shareholders after the issue

shall be 1000.

A due diligence study may be conducted by an independent

team of Chartered Accountants or Merchant Bankers

appointed by the Exchange, the cost of which will be borne by

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the company. The requirement of a due diligence study may

be waived if a financial institution or a scheduled commercial

bank has appraised the project in the preceding 12 months.

For all companies :

In respect of the requirement of paid-up capital and market

capitalization, the issuers shall be required to include in the

disclaimer clause forming a part of the offer document that in

the event of the market capitalization (product of issue price

and the post issue number of shares) requirement of the

Exchange not being met, the securities of the issuer

would not be listed on the Exchange

The applicant, promoters and/or group companies, should not

be in default in compliance of the listing agreement.

The above eligibility criteria would be in addition to the

conditions prescribed under SEBI (Disclosure and Investor

Protection) Guidelines, 2000.

Allotment of Securities :

As per the SEBI guidelines, the Basis of Allotment should be

completed with 15 days from the issue close date. As soon as the basis of

allotment is completed, within 2 working days the details of credit to

demat account / allotment advice and dispatch of refund order needs to

be completed. So an investor should know in about 15 days time from the

closure of issue, whether shares are allotted to him or not.

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

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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.

Prospectus :

Any company floating public issues need to provide adequate

disclosure of information to public, as per guidelines issued by SEBI. This

disclosure includes information like the reason for raising the money, the

way money is proposed to be sent, the return expected on the money etc.

This information is in the form of “ PROSPECTUS” which also includes

information regarding the size of the issue, the current status of the

company, its equity capital , its current & past performance, the

promoters, the project, cost of the project, means of financing, product

and capacity etc. This helps investors to evaluate term and long term

prospectus of the company.

Lock – in Period :

For any issue of capital to the public, the minimum promoter’s

contribution is locked in for a period of 3 years. If the promoter’s

contribution exceeds the required minimum contribution, such excess is

locked in for a period of 1 year. Securities allotted on the firm allotted

basis are also locked in for a period of 1 year.

Promoter :

The promoter has been defined as a person or persons who

are in over-all control of the company, who are instrumental in the

formulation of a plan or programmed pursuant to which the securities are

offered to the public and those named in the prospectus as promoters(s).

Who is eligible for reservation?

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In a book built issue allocation to Retail Individual Investors

(RIIs), Non Institutional Investors (NIIs) and Qualified Institutional

Buyers (QIBs).

Retail Investor :

‘Retail individual investor’ means an investor who applies or

bids for securities of or for a value of not more than Rs.1, 00,000.

Non Institutional Investors & Qualified Institutional Buyers :

It means an investor who applies of bid for securities of or for a

value of more than Rs. 1, 00,000.

How many days is the issue open?

Subscription list for public issues shall be kept open for at least

3 working days and not more than 10 working days. In case of Book built

issues, the minimum and maximum period for which bidding will be open

is 3-7 working days by 3 days in case of a revision in the price band.

Change or Revise bid :

The investor can change or revise the quantity or price in the

bid using the form for changing/revising the bid that is available along with

the application form. However, the entire process of changing of revising

the bids shall be completed within the date of closure of the issue.

How long will it take after the issue for the shares to get listed ?

The listing on the stock exchanges is done within 7 days from

the finalization of the issue. Ideally, it would be around 3 weeks after the

closure of the book built issue. In case of fixed price issue, it would be

around 37 days after closure of the issue.

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Intermediaries :

Merchant Bankers to the issue or Book Running Lead

Managers (BRLM), syndicate members, Registrars to the issue, Bankers

to the issue, Auditors of the company, Underwriters to the issue,

Solicitors, etc. are the intermediaries to an issue. The issuer discloses the

addresses, telephone/fax numbers and email addresses of these

intermediaries. In addition to this, the issuer also discloses the details of

the compliance officer appointed by the company for the purpose of the

issue.

Role of a Registrar :

The Registrar finalizes the list of eligible allottees 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 matters till the basis of allotment is finalized, dispatch security

certificates and refund orders completed and securities listed.

Role of Bankers :

Bankers to the issue, as the name suggests, carries out all the

activities of ensuring that the funds are collected and transferred to the

Escrow accounts. The Lead Merchant Banker shall ensure that Bankers

to the Issue are appointed in all the mandatory collection centers as

specified in DIP Guidelines. The LM also ensures follow-up with bankers

to the issue to get quick estimates of collection and advising the issuer

about closure of the issue, based on the correct figures.

E-IPO/FPO :

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A company proposing to issue capital to public through the on-

line system of the stock exchange for offer of securities can do so if it

complies with the requirements. The appointment of various

intermediaries by the issuer includes a prerequisite that such

members/registrars have the required facilities to accommodate such an

online issue process.

TERMINOLOGY.

Earning Per Share (EPS) :

EPS plays major role in investment decision. EPS is calculated

by taking the net earnings if the companies and dividing it by the

outstanding shares.

That is EPS = NPAT – Pref. Shares Dividend -------------------------------------------------- No. of Equity Shares.

Example: If company A had earnings of Rs. 1000 crores and 100 shares

outstanding, then its EPS becomes 10 (Rs. 1000/100 = 10).

You should go buy company A with an EPS of Rs. 10. But it’s

again not advisable to make your investment decision based on only

single tool analysis.

Price Earnings Ratio ( P/E ratio) :

P/E Ratio is again one of the most important ratio on which

most of the traders and investors keep watch.

The P/E Ratio tells you whether the stock’s price is high or low

relative to its earnings. The high P/E suggests that investors are

expecting higher earnings growth in the future compared to companies

with a lower P/E. But, the P/E Ratio doesn’t tell us the whole story of the

company.

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That is P/E Ratio = Market Price per share ----------------------------------

EPS

Example : A company with a share of Rs. 40 and an EPS of 8 would have

a P/E Ratio of 5 (Rs. 40/8 = 5).

The P/E Ratio gives an idea of what the market is willing to pay

for the companies earning. The higher the P/E the more the market is .

willing to pay for the companies earning. Some investors say that a High

P/E Ratio means the stock is over priced on the other side it also indicate

the market has high hopes for such company future growth and due to

which market is ready to pay high price.

On the other side, a low P/E of high growth stocks may

indicate that the market has ignored these stocks which are also known

as value stocks. Many investors try to finding low P/E Ratio stocks of high

value growth companies and make investments in such stocks which may

prove real diamonds in future.

Profitability Ratio :

Profitability and management efficiency of a firm is judged

mainly by the following profitability ratio:

Net Profit Ratio (%) = Net Profit --------------- X 100 Net Sales

Market Capitalization :

The market value of a Quoted company, which is calculated by

multiplying its current share price (market price) by the no. of shares in

issue, is called as market capitalization. Example : Company A has 120

million shares in issue. The current market price is Rs. 100. The market

capitalization of co. A is Rs. 12000 million.

23


Market Capitalization = Market Price of Share X No.of Equity Share.

TOP 10 IPOs/FPOs OF YEAR 2007

Sr. No.

Name of IPOs/FPOs

Issue Price

Market Price on

Dated 11/01/08

Profit/ Loss

11/01/08

High 11/01/08

Low 11/01/08

Face Valu

e

1Orbit

Corporation Ltd.

110 920.5 736.82% 933.0 880.0 10

2Everonn

Systems India Ltd.

140 1010.55 621.82% 1050.0 991.8 10

3MIC

Electronics Ltd.

150 881.5 487.67% 895.0 798.0 10

4Allied Digital Services Ltd.

190 959.55 405.03% 1010.1 959.55 10

5Gremarch

Infrastructure86 398.5 363.37% 421.95 398.5 10

6Global

Broadcast News.

250 1141.55 356.62% 1180.0 1125.0 10

7Pyramid Saimira Theatre.

100 451.45 351.45% 479.9 444.0 10

8Allied

Computers International

12 45.15 276.25% 50.0 45.0 10

24


9Religare

Enterprices Ltd.

185 642.35 247.22% 657.7 632.0 10

10Vishal Retail

Ltd.270 915.9 239.22% 940.0 874.0 10

TOP PERFORMING IPOs/FPOs

ISSUE INFORMATIONS

Sr. No.

Name ofIPOs/FPOs

Listing Date

Issue Open

Issue Close

Price Band

Issue Size

1Orbit

Corporation Ltd.

12/04/2007

20/03/0723/03/0

7108 - 117

9,10,00,000

2Everonn

Systems India Ltd.

1/08/2007 5/07/0711/07/0

7125-140 5,00,00,000

3MIC

Electronics Ltd.

30/05/2007

30/04/07 8/05/07 129-150 5,10,00,000

4Allied Digital Services Ltd.

25/07/2007

2/07/07 5/07/07 170-190 4,52,24,350

5Gremarch

Infrastructure11/04/200

78/03/07

19/03/07

72-86 5,90,00,000

6Global

Broadcast News.

8/02/2007 15/01/0718/01/0

7230-250

10,50,00,000

7Pyramid Saimira Theatre.

5/01/2007 11/12/0618/12/0

688-100 8,44,40,000

8Allied

Computers 23/11/200

719/10/07

23/10/07

12 5,00,00,000

25


International

9Religare

Enterprices Ltd.

21/11/2007

29/10/07 1/11/07 160-185 7,57,61,020

10Vishal Retail

Ltd.4/07/2007 11/06/07 13/6/07 230-270

11,00,00,000

TOP PERFORMING IPOs/FPOs

ISSUE INFORMATIONS

Sr. No.

Name of IPOs/FPOs

Market Lot

Listing @

Lead Manager Registrar

1Orbit

CorporationLimited.

50 SharesBSE & NSE

Edelweiss Capital Ltd.

Intime Spectrum Registry Ltd.

2Everonn Systems

India Limited.

50 SharesBSE & NSE

Centrum Capital Ltd

Cameo Corporates

Services Ltd.

3MIC Electronics

Limited.45 Shares

BSE & NSE

Edelweiss Capital Ltd.


4Allied digital

Services Limited.

35 SharesBSE & NSE

Anand Rathi Securities Ltd.


5Grmarch

Infrastructure.70 Shares

BSE & NSE

RR Financial Consultants Ltd.


6Global

BroadcastNews.

25 SharesBSE & NSE

ICICI & Kotak Mahindra Ltd.


7Pyramid Saimira

Theatre.60 Shares

BSE & NSE

Canara Bank & Keynote

Corporate Services Ltd.

Cameo Corporates

Services Ltd.

12 Shares BSE CIL Securities Bigshare Services

26


8Allied Computer

InternationalLtd.

Ltd. Pvt. Ltd.

9Religare

Enterprises Limited.

35 SharesBSE & NSE

ENAM Financial Consultants Pvt.Ltd & Citigroup Global Market India Pvt. Ltd.

Karvy Comutershare

Pvt. Ltd.

10Vishal Retail

Limited.25 Shares

BSE & NSE

ENAM Financial

Consultants Pvt.Ltd.


* INTRODUCTION ABOUT COMPANY . *

1). ORBIT CORPORATION LTD.:-

Orbit Corporation Limited is a Mumbai based real estate

construction and development company with primary focus on

redevelopment of existing properties. Orbit specializes in developing,

designing and managing “Build to suit” high-end residential and

commercial properties.

Orbit Corporation Limited also engages in real estate activities

through Orbit Constructions & Realtors Private Limited, Orbit Buildcon &

Realty Private Limited and Orbit Housing Private Limited.

The director of the company is

27


Objects of the Issue:

The objects of the Issue are to achieve the benefits of listing on the

Stock Exchanges and to raise capital to

1. Advances towards acquisition cost of new projects that we

propose to develop/ redevelop.

2. Project development cost of the existing projects.

3. Investment in wholly owned subsidiaries.

MARKET CHART OF ORBIT CORPORATION LTD.

Price Data on Listing Day 12- 04- 2007

Open Price Rs. 113.00

High Price Rs. 137.60

Low Price Rs. 110.15

Close Price Rs. 128.20

Volume 14577737

Price Data As On 11-01-2008





Volume 85216

Market Chart of Scrip :

28


Orbit Corporation Ltd.

0

200

400

600

800

1000

1200

Months

Valu

e (R

s.)

FINANCIAL HIGHLIGHTS

EPS information: (Quarterly)

P/E Ratio Information (Quarterly)

Months P/E Ratio

Jun-2007 82.89

Sep-2007 137.63

Dec-2007 173.75

Note: (March-2007 Data is not available because, it is listed on 12/04/2007)

Net Sales Information (Quarterly)

Months Value (Rs. in Cr.)

Mar-2007 30.89

Jun-2007 45.19

Sep-2007 13.11

Months Value (Rs.)

Mar-2007 2.86

Jun-2007 3.29

Sep-2007 3.8

Dec-2007 5.41

29


Dec-2007 72.56

Net Profit Information (Quarterly)


Mar-2007 7.77

Jun-2007 11.93

Sep-2007 1.85

Dec-2007 19.62

Profitability = Net Profit ----------------- X 100

Net Sales = 19.62 ---------- X 100 72.56

= 27.04 %

Market Capitalization = 3338.65 Rs. in Cr.

ORBIT CORPORATIOM LTD.

2.863.29

3.80

5.41

0

1

2

3

4

5

6

VA

LUE

IN (R

S.)

Mar-07 Jun-07 Sep-07 Dec-07

MONTHS

EPS CHART

82.89

137.63

173.75

0

20

40

60

80

100

120

140

160

180

VA

LUE

Jun-07 Sep-07 Dec-07

MONTHS

P/E RATIO CHART

30


30.89

45.19

13.11

72.56

0

10

20

30

40

50

60

70

80R

S. I

N C

RO

RE

S


MONTHS

NET SALES CHART

7.77

11.93

1.85

19.62

02468

101214161820

RS

.IN C

RO

RE

S


MONTHS

NET PROFIT CHART

From the above charts of EPS and P/E Ratio it can be seen

that the EPS as well as the P/E Ratio is showing an increasing trend

continuously. The Profitability of the company is 27.04% and the EPS is

Rs. 5.41. the P/E Ratio is 173.75. So, by seeing the Profitability of the

company the investment can be done. The increasing P/E Ratio also

states that the it will give good returns in the future if the investment is

done in this company.

2). EVERONN SYSTEMS INDIA LIMITED :-

Everonn Systems India Limited is Knowledge Management,

Education and Training Company. Everonn provides its services in

Creating Educational and Training Content, Designing and executing

large learning initiatives and setting up the needed infrastructure for

learning and training.

Everonn has Virtual and Interactive Learning classroom networks

across India. Everonn does business through 2 strong Business Units,

31


Institutional Education and Infrastructure Services (IE & IS) and Virtual

and Technology Enabled Learning Solutions (ViTELS).


The objects of the Issue are to achieve the benefits of

listing on the Stock Exchanges & to raise capital for,

1. Capital expenditure for Institutional Education and IT

infrastructure Services,

2. Capital expenditure for Virtual and Tech Enabled learning

solutions,

3. Working Capital Requirements,

4. Brand Building exercise for the Company,

5. Funding the proposed Mergers & Acquisitions activity, and

6. To invest in the proposed Subsidiary to Retail Educational

aids, tools and other products.

MARKET CHART OF EVERONN SYSTEMS INDIA LTD.






Volume 7177641

Price Data As On 11- 01- 2008



32




Volume 325669


Everonn systems India Ltd.

0.00

200.00

400.00

600.00

800.00

1,000.00

1,200.00

1,400.00

Months

Val

ue (

Rs.

)



Months Value (Rs.)

Mar-2007 3.97

Jun-2007 0.44

Sep-2007 1.87

Dec-2007 2.92


Months P/E Ratio

Sep-2007 354.17

Dec-2007 378.37

Note: (March-2007 & June-2007 Data is not available because, it is listed on

33


1/08/2007)




Mar-2007 4.08

Jun-2007 0.61

Sep-2007 2.59

Dec-2007 4.05


Net Sales = 4.05 ---------- X 100 29.14

= 13.90 %


EVERONN SYSTEMS INDIA LTD.

3.97

0.44

1.87

2.92

0

0.5

1

1.5

2

2.5

3

3.5

4

VA

LUE

IN (R

S.)


MONTHS

EPS CHART

354.17

378.37

340345350355360365370375380

VA

LUE

Sep-07 Dec-07

MONTHS

P/E RATIO CHART

Months Value ( Rs. in Cr.)

Mar-2007 14.35

Jun-2007 8.86

Sep-2007 22.74

Dec-2007 29.14

34


14.35

8.86

22.74

29.14

0

5

10

15

20

25

30

RS.

IN C

RO

RES


MONTHS

NET SALES CHART

4.08

0.61

2.59

4.05

00.5

11.5

22.5

33.5

44.5

RS

. IN

CR

OR

ES


MONTHS

NET PROFIT CHART

The Profitability of this company is 13.90 % and the EPS is Rs.

2.92, the P/E Ratio is 378.37. Though all the charts are showing

decreasing price in the month of June but after June it is continuously

increasing which is good for the investors to invest.

3). MIC ELECTRONICS LIMITED :

Incorporated in 1988, MIC Electronics Limited is a global leader

in the design, development & manufacturing of LED Video Displays,

high-end Electronic and Telecommunication equipment and development

of Telecom software.

Business Lines

MIC's business is divided broadly into three parts:

35


Media Group, primarily responsible for the development,

production and sales of video displays, text, and graphic

animation displays and display services including lease/rental of

LED video walls etc.

InfoTech Group provides telecom software solutions in areas of

Telecom Network Management, Telecom Switch Access and

Computer Telephony domains.


1. Setting up additional facility for manufacture of LED Video

Modules at Cherlapally, Hyderabad and Roorkee;

2. Investment in LED video display systems to be used for

rental/leasing business;

3. Investment on Design & Development of 3D Stereoscopic

Displays; & Market Development – Domestic & Overseas;

MARKET CHART OF MIC ELECTRONICS LTD .

Price Data on Listing Day 30-05-2007





Volume 14524591




36




Volume 18585


MIC Electronics Ltd.

0

200

400

600

800

1000

1200

Months

Val

ue

(Rs.

)



Months Value (Rs.)

Mar-2007 3.61

Jun-2007 8.98

Sep-2007 4.89

Dec-2007 6.81


Months P/E Ratio

Jun-2007 41.96

Sep-2007 108.10

Dec-2007 147.28

37





Mar-2007 59.47

Jun-2007 114.45

Sep-2007 75.43

Dec-2007 78.24



Mar-2007 3.23

Jun-2007 18.08

Sep-2007 9.84

Dec-2007 13.70


Net Sales = 13.70 ---------- X 100 78.24

= 17.51 %


MIC ELECTRONICS LTD .

38


3.61

8.98

4.89

6.81

0123456789

VA

LUE

IN (R

S.)


MONTHS

EPS CHART

41.96

108.1

147.28

0

20

40

60

80

100

120

140

160

VA

LUE


MONTHS

P/E RATIO CHART

59.47

114.45

75.43 78.24

0

20

40

60

80

100

120

RS

. IN

CR

OR

ES


MONTHS

NET SALES CHART

3.23

18.08

9.84

13.7

02468

101214161820

RS

. IN

CR

OR

ES


MONTHS

NET PROFIT CHART


6.81. The P/E Ratio is 147.28; According to the ranks given it stands 5th

which can be considered as moderate. The investment here can be done

on the basis of EPS which is much higher or attractive for the investment.

39


4). ALLIED DIGITAL SERVICE :

Incorporated in 1995, Allied Digital Services Limited IT

Infrastructure management and Technical Support Services

outsourcing Company. ADSL deliver strategic, personalized, full-service

Technical Support services solutions to its global, large and medium

enterprises and service providers.

Allied Digital has its unique direct presence at 92 locations in 25

states catering to more than 450 cities countrywide through its human

resource of more than 1050 personnel. Its offerings address various

business verticals – BFSI, Telecom, Retail, Aviation, Manufacturing,

Energy, e-Governance and Hospitality to name a few. Company was

awarded 'Most Comprehensive Solutions Provider' by Data Quest (DQ)

this year.



Stock Exchanges & to raise capital for

1. Setting up of a new Corporate Office,

2. Upgradation and Expansion of Existing Infrastructure,

3. Setting up of new Strategic Business Units,

4. Financing Working Capital Requirements.

40


MARKET CHART OF ALLIED DIGITAL SERVICES LTD .








Volume 11231528





Volume 35607

41


Allied Digital Services Ltd.

0

200

400

600

800

1000

1200

Months

Va

lue

(R

s.)



Months Value (Rs.)

Mar-2007 6.05

Jun-2007 7.09

Sep-2007 5.89

Dec-2007 10.18


Months P/E Ratio

Sep-2007 64.02

Dec-2007 80.16

Note: (March-2007 & June-2007 Data is not available because, it is listed on

25/07/2007)



Mar-2007 52.01

Jun-2007 65.15

Sep-2007 70.81

Dec-2007 79.29

42




Mar-2007 7.64

Jun-2007 9.05

Sep-2007 10.18

Dec-2007 12.10


Net Sales = 12.10 ---------- X 100 79.29

= 15.26 %


ALLIED DIGITAL SERVICES LTD.

6.05 7.095.89

10.18

0

2

4

6

8

10

12

VA

LUE

IN (R

S.)


MONTHS

EPS CHART

64.02

80.16

0102030405060708090

VA

LUE

Sep-07 Dec-07

MONTHS

P/E RATIO CHART

43


52.01

65.1570.81

79.29

0

10

20

30

40

50

60

70

80R

S. I

N C

RO

RE

S


MONTHS

NET SALES CHART

7.649.05

10.1812.1

0

5

10

15

RS

. IN

CR

OR

ES


MONTHS

NET PROFIT CHART


10.18 which is the highest among the top 10 companies. The Price

Earning Ratio is 80.16 which can be considered as less risky for the

investors to invest.

5). GREMARCH INFRASTRUCTURE :

Gremach Infrastructure Equipments & Projects Limited is in the

business of providing rental of construction /earthmoving machineries

to medium / large construction companies who are engaged in the

business of constructing/building of roads, airports, power projects,

institutional & industrial complexes, multiplexes and residential

buildings and other related infrastructural activities chiefly catering to

Public Sector undertakings, private sector, and various national &

international government aided projects.

44


In addition to renting Gremach owned equipments, Gremach also

hire equipments owned by other parties and rent to our own clients. In the

past over 65% of Gremach total rental incomes are derived from

equipments, which are exclusively owned by third parties.



Stock Exchanges and to raise capital to Acquire Ports, Mining and other

Road Construction Equipments.

MARKET CHART OF Gremarch Infrastructure Ltd.

Price Data on Listing Day 11-04 -2007



Low Price Rs. 80.70


Volume 10344625





45



Volume 42556


Gremarch Infrastructure

0

100

200

300

400

500

600

Months

Val

ue

(Rs.

)



Months Value (Rs.)

Mar-2007 4.97

Jun-2007 2.66

Sep-2007 6.01

Dec-2007 6.16


Months P/E Ratio

Jun-2007 71.88

Sep-2007 44.68

Dec-2007 57.02


46




Mar-2007 30.21

Jun-2007 34.74

Sep-2007 54.33

Dec-2007 55.16



Mar-2007 4.16

Jun-2007 4.06

Sep-2007 9.14

Dec-2007 9.38


Net Sales = 9.38 ---------- X 100 55.16

= 17.00 %


GREMARCH INFRASTRUCTURE LTD.

4.97

2.66

6.01 6.16

0

1

2

3

4

5

6

7

VA

LUE

IN (R

S.)


MONTHS

EPS CHART

71.88

44.68

57.02

0

10

20

30

40

50

60

70

80

VA

LUE


MONTHS

P/E RATIO CHART

47


30.21 34.74

54.33 55.16

0

10

20

30

40

50

60R

S. I

N C

RO

RE

S


MONTHS

NET SALES CHART

4.16 4.06

9.14 9.38

0

2

4

6

8

10

RS

. IN

CR

OR

ES


MONTHS

NET PROFIT CHART


6.16. The P/E Ratio is 57.02, this P/E Ratio states that the investment can

be done in the company means it posses the least risk for the investment.

6). GLOBAL BROADCAST NEWS:

Global Broadcast News Limited (GBN) operates one of India’s

leading 24-hour English language news and current affairs channel,

‘CNN-IBN’. CNN-IBN was launched in December, 2005 and has

consistently been ranked as India’s No. 2 English language news

channel.

48


Global Broadcast News Limited has also share subscription cum

shareholders agreement with the Gupta family, BK Fincap Private Limited

and others and has acquired significant equity shareholding in BK Fincap

Private Limited which is the holding company of Jagran TV Private

Limited, which owns Channel 7, a 24-hour Hindi language news and

current affairs channel.

GBN is also part of the TV 18 group, which owns and operates

some of India’s leading business channels and internet portals such as

CNBC-TV18, Awaaz, South Asia World, www.moneycontrol.com and

www.commoditiescontrol.com, etc.


The Company intends to use the Net Proceeds for the following

purposes:

1. Further investment for expansion into Hindi news genre;

2. Repayment of a loan of our company;

3. General corporate purposes; and

4. Avail of the benefits of listing of our Equity Shares on the

Stock Exchanges.

MARKET CHART OF Global Broadcast News Ltd.






Volume 13080245.



49





Volume 2990.


Global Broadcast News

0

200

400

600

800

1000

1200

1400

Months

Va

lue

( R

s.)



Months Value (Rs.)

Mar-2007 1.04

Jun-2007 - 1.31

Sep-2007 - 2.38

Dec-2007 - 3.1


Months P/E Ratio

Mar-2007 514.13

Jun-2007 - 688.66

Sep-2007 - 401.32

Dec-2007 - 378.06

50




Mar-2007 27.98

Jun-2007 22.00

Sep-2007 25.57

Dec-2007 23.50



Mar-2007 2.78

Jun-2007 - 3.51

Sep-2007 - 6.36

Dec-2007 - 8.29


Net Sales = - 8.29 ---------- X 100 23.50

= - 35.28 %


GLOBAL BROADCAST NEWS.

51


1.04

-1.31

-2.38-3.1

-3.5-3

-2.5-2

-1.5-1

-0.50

0.51

1.5V

ALU

R IN

(RS

.)


MONTHS

EPS CHART

514.13

-688.66-401.32

-378.06

-800

-600

-400

-200

0

200

400

600

VA

LUE


MONTHS

P/E RATIO CHART

27.98

22.0025.57

23.5

0

5

10

15

20

25

30

RS

. IN

CR

OR

ES


MONTHS

NET SALES CHART

2.78

-3.51

-6.36-8.29

-10

-8

-6

-4

-2

0

2

4

RS

. IN

CR

OR

ES


MONTHS

NET PROFIT CHART

The Profitability of this company is -35.28 % and the EPS is

Rs. -3.1. The P/E Ratio is -378.06. From the above information it can be

concluded that it is not advisable to invest in this because all the three

that is the P/E Ratio , EPS as well as the Profitability is in negative. So, it

proves to be very risky to do such investment.

52


7). PYRAMID SAIMIRA THEATRE LTD :

Pyramid Saimira Theatre Limited (PSTL) is currently India’s

largest Theatre Chain Company, operating over 136 screens. PSTL is

also involved in file production and have produced around 10 films.

PSTL’s Digital theatres also function as delivery medium for other

entertainment content, as well as educational centers including video

conferencing, virtual class rooms etc. One can see Cricket match live,

have refresher course, say medical entrance exam in these theatres.

Objects of the Issue:1. To create a theater chain having a tie up with theaters and

multiplexes on long lease and invest in infrastructure up-

gradation of the theatres.

2. To convert theaters in to digital exhibition system by installing

Digital Projectors, Servers, VSAT terminals and such other

audio & video equipments as needed.

3. To invest in a central network operating system control center

which will enable Service Provisioning for and including

Convert Conversion, Transmission, Rights management,

Theater management & Networked collection / revenue

management.

53


MARKET CHART OF Pyramid Saimira Theatre Ltd.






Volume 16969613






Volume 55480


Pyramid Saimira Theatre

0

100

200

300

400

500

600

Months

Val

ue

( R

s.)



54


Months Value (Rs.)

Mar-2007 2.06

Jun-2007 5.66

Sep-2007 5.34

Dec-2007 3.55


Months P/E Ratio

Mar-2007 120.95

Jun-2007 59.59

Sep-2007 64.98

Dec-2007 141.21



Mar-2007 67.57

Jun-2007 122.71

Sep-2007 144.19

Dec-2007 231.42



Mar-2007 5.84

Jun-2007 16.01

Sep-2007 15.11

Dec-2007 29.87


Net Sales = 29.87 ------------- X 100 231.42

= 12.91 %


55


PYRAMID SAIMIRA THEATRE

2.06

5.66 5.34

3.55

0

1

2

3

4

5

6

VA

LUE

IN (R

S.)


MONTHS

EPS CHART

`

130.95

59.59 64.98

141.21

0

20

40

60

80

100

120

140

160

VA

LUE


MONTHS

P/E RATIO CHART

67.57

122.71144.19

231.42

0

50

100

150

200

250

RS

. IN

CR

OR

ES


MONTHS

NET SALES CHART

5.84

16.01 15.11

29.87

0

5

10

15

20

25

30

RS

. IN

CR

OR

ES


MONTHS

NET PROFIT CHART


3.55. Also the P/E Ratio of the company is 141.21. So, by looking at the

Profitability as well as the P/E Ratio and the EPS it can be stated that the

company will not given higher returns but moderate returns will be given

by the company.

56


8). ALLIED COMPUTERS INTERNATIONAL LTD :

Incorporated in 2002, Allied Computers International (Asia) Ltd is in

the business of assembling and marketing of laptop computers. ACi

undertakes services and maintenance contracts for all brands of laptop

computers.

ACi has two divisions: assembling of laptop/notebook computers,

and chip level repairs of motherboard, screen, digital versatile disc (DVD)

and hardware of all brands of laptops. In addition, ACi has a software

division that is developing software related to hardware used to perform

reverse engineering and fault diagnosis of populated printed circuit boards

(PCBs), together with explorations of security-enhanced applications by

use of biometric technology.



Stock Exchanges & to raise capital

1. To Set up Global Laptop, TFT and other equipment Service Centre at

Vasai, Dist. Thane, Mumbai.

57


MARKET CHART OF Allied Computer International Ltd.

Price Data on Listing Day 23 -11- 2007



Low Price Rs. 21.00


Volume 27422665




Low Price Rs. 45.00


Volume 314588


Allied Computers International Ltd.

0

10

20

30

40

50

60

70

80

Months

Val

ue

( R

s.)

Note: Financial Data is not Available.

58


9). RELIGARE ENTERPRISES LTD :

Religare Enterprises Limited is Ranbaxy Laboratories Limited

promoted financial product and service provider company.Religare

provide its service in three different segments including Retail, Wealth

management and the Institutional spectrum. It offers wide range of

services including equities, commodities, insurance broking, wealth

advisory, portfolio management services, personal finance services,

Investment banking and institutional broking services. Religare’s retail

network spreads across more than 900 locations across more than 300

cities and towns in India.Religare businesses are operated through its 10

subsidiaries. Religare major business includes:

Religare Securities Limited (RSL) - Stock Broker.

Religare Finance Limited (RFL) - Involve in personal credit (such as

loans against shares (LAS), and personal loans), distribution of mutual

funds, wealth management, IPO financing, and corporate finance

services.

Religare Commodities Limited (RCL) - Commodity Broker.

Religare Insurance Broking Limited (RIBL)-Insurance broker to

distribute products and services of life insurance companies, non life

insurance companies and re-insurance businesses.

People who wonder where Religare word came from, it's a Latin word

meaning 'to bind together'.



Stock Exchanges & to raise capital

1. To expand domestic operations and network of branches;

2. To fund retail finance business and to expand financing activity.

59


MARKET CHART OF Reliagare Enterprises Ltd .






Volume 11198090






Volume 55480


Religare Enterprices Limited

0

100

200

300

400

500

600

700

800

Months

Valu

e (

Rs.)

60




Months Value (Rs.)

Dec-2007 0.29


Months P/E Ratio

Dec-2007 404.17

Note: (March-2007, Jun-2007& Sep-2007 Data is not available

because, it is listed on 21/11/2007)



Dec-2007 5.19

Net Profit Information ( Quarterly)


Dec-2007 2.24


Net Sales = 2.24 ---------- X 100 5.19

= 43.16 %


61


RELIAGARE ENTERPRISES LTD.

0.29

0

0.05

0.1

0.15

0.2

0.25

0.3

VA

LUE

IN (R

S.)

DEC-07

MONTH

EPS CHART

404.17

0

100

200

300

400

500

VA

LUE

Dec-07

MONTH

P/E RATIO

5.19

0

1

2

3

4

5

6

RS

. IN

CR

OR

ES

DEC-07

MONTHS

NET SALES CHART

2.24

0

0.5

1

1.5

2

2.5

RS

. IN

CR

OR

ES

DEC-07

MONTHS

NET PROFIT CHART

The above company has been listed in November 2007. So,

not much data is available as well as nothing can be inferred from the

above charts.

62


10). VISHAL RETAIL LTD :

Incorporated in 1986, Vishal Retail Limited is among the leading

retail houses in India based in Delhi. Vishal Retail has around 51

showrooms in 39 cities in India. Vishal stores offer affordable family

fashion at prices to suit every pocket. Vishal Retail also has apparel

manufacturing plant at Gurgaon. It has seven distribution centers and a

fleet of trucks for transportation.

Vishal Retail's total sales was Rs. 2,884.43 million for fiscal 2006,

as opposed to a turnover of Rs. 1,463.12 million for fiscal 2005 and Rs.

881.04 million for fiscal 2004. During the same period our profit after tax

was Rs. 124.74 million, Rs.30.20 million and Rs. 3.82 million,

respectively. Its sales increased between fiscal 2004 and fiscal 2006 at a

CAGR of 80.94% and profit after tax increased between fiscal 2004 and

fiscal 2006 at a CAGR of 471.44%.



Stock Exchanges & to raise capital to

1. Meet the expenses of establishing new retail stores

63


MARKET CHART OF Vishal Retail Ltd.






Volume 11417790






Volume 24618


Vishal Retail Ltd.

0

200

400

600

800

1000

1200

Months

Val

ue

( R

s.)

64




Months Value ( Rs.)

Mar-2007 13.63

Jun-2007 13.52

Sep-2007 6.58

Dec-2007 6.95


Months P/E Ratio

Sep-2007 106.39

Dec-2007 140.72

Note: (March-2007& Jun-2007 Data is not available because, it is listed On 04/07/2007)


Months Value ( Rs. in Cr.)

Mar-2007 200.88

Jun-2007 228.97

Sep-2007 192.58

Dec-2007 301.74



Mar-2007 25.07

Jun-2007 20.25

Sep-2007 14.73

Dec-2007 15.56


Net Sales = 15.56 ---------- X 100 301.74

= 5.16 %


65


VISHAL RETAIL LTD.

13.63 13.52

6.58 6.95

0

2

4

6

8

10

12

14

VA

LUE

IN (R

S.)


MONTHS

EPS CHART

106.39

140.72

020

4060

80100

120140

160

VA

LUE

Sep-07 Dec-07

MONTHS

P/E RATIO CHART

200.88

228.97192.58

301.74

0

50

100

150

200

250

300

350

RS

. IN

CR

OR

ES


MONTHS

NET SALES CHART

25.07

20.25

14.73 15.56

0

5

10

15

20

25

30

RS

. IN

CR

OR

ES


MONTHS

NET PROFIT CHART


6.95 which is the second highest among all the companies mentioned.

The P/E Ratio is 140.72. So, from the above charts it is concluded that

though the EPS has increased for the 2 Quarters but it has decreased in

the last 2. Whereas the P/E Ratio is increasing which proves to be riskier

for the investors.

66


Rank Given on the Basis of PROFITABILITY.

Sr. No. Top 10 IPOs Profitability1 Religare Enterprises. 43.16%2 Orbit Corporation Ltd. 27.04%3 MIC Electronics Ltd. 17.51%4 Gremarch Infrastructure 17.00%5 Allied Digital Services Ltd. 15.26%6 Everonn Systems India Ltd. 13.90%7 Pyramid Saimira Theatre. 12.91%8 Vishal Retail Ltd. 5.16%9 Global Broadcast News. -35.28%

10 Allied Computer International -

Rank Given on the Basis of EPS

Sr. No. Top 10 IPOs EPS (Rs.)1 Allied Digital Services Ltd 10.182 Vishal Retail Ltd. 6.953 MIC Electronics Ltd. 6.814 Gremarch Infrastructure 6.165 Orbit Corporation Ltd. 5.416 Pyramid Saimira Theatre. 3.557 Everonn Systems India Ltd. 2.928 Religare Enterprises. 0.299 Global Broadcast News. - 3.1


Rank Given on the Basis of P\E RATIO

Sr. No. Top 10 IPOs P\E Ratio1 Gremarch Infrastructure 57.022 Allied Digital Services Ltd 80.163 Vishal Retail Ltd. 140.724 Pyramid Saimira Theatre. 141.215 MIC Electronics Ltd. 147.286 Orbit Corporation Ltd. 173.757 Everonn Systems India Ltd. 378.378 Religare Enterprises. 404.179 Global Broadcast News. -


67


RISK MEASUREMENT

BETA :

A measure of the instability, or systematic risk, of a security or a

portfolio in comparison to the market as a whole. Also known as "beta

coefficient". Beta is calculated using regression analysis, and you can

think of beta as the tendency of a security's returns to respond to swings

in the market. A beta of 1 indicates that the security's price will move

with the market. A beta of less than 1 means that the security will be

less volatile than the market. A beta of greater than 1 indicates that

the security's price will be more volatile than the market. The formula

of beta are as follow.

β = n (∑xy) – (∑x) (∑y)

-------------------------------

n ( ∑x² ) – (∑x)²

68


ORBIT CORPORATION LTD.

DATEBSE SENSEX BANCHMAR

K

BSE PRICE

OF ORBIT

X Y XY x² y²

12-4-07 13,113.81127.9

5 - - - - -

30-4-07 13,872.37 1955.7844

452.403

3303.12

333.459

7 2746.1

15-5-07 13,929.33211.2

5 0.41068.3333

33.4216

70.1685

969.444

4

31-5-07 14,544.46 248.24.4160

817.491

177.242

219.501

7305.93

9

15-6-07 14,162.71222.2

5 -2.6247 -10.45527.442

16.8891

1109.31

3

29-6-07 14,650.51272.1

53.4442

622.452

277.331

111.862

9504.10

1

16-7-07 15,311.22 348.34.5098

127.980

9126.18

820.338

4 782.93

31-7-07 15,550.99349.1

51.5659

80.2440

40.3821

62.4522

80.0595

6

14-8-07 15,000.91 492.1 -3.537340.942

3 -144.8212.512

31676.2

7

31-8-07 15,318.60469.7

5 2.1178 -4.5418 -9.6186 4.485120.627

6

14-9-07 15,504.43497.4

5 1.21315.8967

57.1533

51.4716

134.771

7

28-9-07 17,291.10519.2

511.523

64.3823

550.500

5132.79

4 19.205

15-10-07 19,058.67 651.810.222

425.527

2 260.95104.49

8651.63

8

31-10-07 19,837.99 5924.0890

6 -9.1746 -37.51516.720

484.173

2

15-11-07 19,784.89 679.1 -0.267714.712

8 -3.93820.0716

5216.46

8

30-11-07 19,363.19 760.4 -2.131411.971

7 -25.5174.5429

7143.32

2

14-12-07 20,030.83 853.53.4479

912.243

642.215

611.888

6149.90

5

31-12-07 20,286.99943.8

51.2788

310.585

813.537

5 1.6354 112.06

11-01-08 20,827.45 919.92.6640

7 -2.5375 -6.767.0972

8 6.4388

48.127228.45

8761.31

5 392.397632.7

7

∑X ∑Y ∑XY ∑X² ∑Y²

69


β = n (∑xy) – (∑x) (∑y) ------------------------------- n ( ∑x² ) – (∑x)²

= 0.67

Return of Orbit Corporation = 77.27 %

NOTE: Return is calculated on the basis of first 15 days after listing.

EVERONN SYSTEMS INDIA LTD.

DATEBSE SENSEX BANCHMARK

BSE PRICE OF EVERONN.

X Y XY x² y²

01-08-07 14935.77 478.45 - - - - -

14-08-07 15,000.91 611.75

0.43613

27.8608 12.151

0.19021

776.22

31-08-07 15,318.60 633.35 2.1178

3.53085

7.47766 4.4851

12.467

14-09-07 15,504.43 738.25 1.2131

16.5627

20.0922

1.47161

274.32

28-09-07 17,291.10 659.95

11.5236 -10.606 -122.22

132.794

112.49

15-10-07 19,058.67 620.35

10.2224 -6.0005 -61.339

104.498

36.005

31-10-07 19,837.99 591.8

4.08906 -4.6022 -18.819

16.7204

21.181

15-11-07 19,784.89 472 -0.2677 -20.243 5.4185

0.07165

409.79

30-11-07 19,363.19 468.55 -2.1314 -0.7309

1.55793

4.54297

0.5343

14-12-07 20,030.83 753.7

3.44799 60.858

209.837

11.8886

3703.7

31-12-07 20,286.99 1103.4

1.27883

46.3978

59.3348 1.6354

2152.8

11-01-08 20,827.45 1010.55

2.66407 -8.4149 -22.418

7.09728

70.811

34.593

9104.61

291.072

3285.39

57570.

3

∑X ∑Y ∑XY ∑X² ∑Y²

70


β = n (∑xy) – (∑x) (∑y) ------------------------------- n ( ∑x² ) – (∑x)²

= - 1.13

Return of Everonn Systems India Ltd. = 336.43 %


MIC ELECTRONICS LTD.

DATE BSE SENSEX BANCHMARK

BSE PRICE OF MIC

X Y XY x² y²

30-05-07 14,411.38 335.65 - - - - -15-06-07 14,162.71 376.1 -1.7255 12.0512 -20.795 2.97739 145.23229-06-07 14,650.51 376.8 3.44426 0.18612 0.64105 11.8629 0.0346413-07-07 15,272.72 392.65 4.24702 4.20648 17.865 18.0372 17.694431-07-07 15,550.99 379.3 1.82201 -3.4 -6.1948 3.31971 11.559814-08-07 15,000.91 410.4 -3.5373 8.19931 -29.003 12.5123 67.228831-08-07 15,318.60 437.55 2.1178 6.6155 14.0103 4.4851 43.764814-09-07 15,504.43 547.65 1.2131 25.1628 30.525 1.47161 633.16828-09-07 17,291.10 534.65 11.5236 -2.3738 -27.355 132.794 5.6348315-10-07 19,058.67 530.8 10.2224 -0.7201 -7.3611 104.498 0.5185431-10-07 19,837.99 554.9 4.08906 4.54032 18.5656 16.7204 20.614514-11-07 19,929.06 523.05 0.45907 -5.7398 -2.635 0.21074 32.94528-11-07 18,938.87 600.8 -4.9686 14.8647 -73.857 24.6867 220.9614-12-07 20,030.83 820.15 5.76571 36.5097 210.504 33.2434 1332.9531-12-07 20,286.99 1009.4 1.27883 23.075 29.509 1.6354 532.45811-01-08 20,827.45 881.5 2.66407 -12.671 -33.756 7.09728 160.552

38.6156 110.507 120.664 375.552 3225.32

71


∑X ∑Y ∑XY ∑X² ∑Y²

β = n (∑xy) – (∑x) (∑y) ------------------------------- n ( ∑x² ) – (∑x)²

= - 0.52

Return of MIC Electronics Ltd. = 150.73 %


ALLIED DIGITAL SERVICES LTD.


BSE PRICE

OF ALLIED DIGITAL

X Y XY x² y²

25-07-07 15,699.33 331.8 - - - - -10-08-07 14,868.25 297.65 -5.2937 -10.292 54.4849 28.0236 105.9324-08-07 14,424.87 280.45 -2.9821 -5.7786 17.2321 8.89268 33.39210-09-07 15,596.83 334.6 8.12458 19.3083 156.871 66.0088 372.8125-09-07 16,899.54 363.75 8.3524 8.71189 72.7653 69.7626 75.89710-10-07 18,658.25 394.55 10.4069 8.46735 88.1185 108.303 71.69625-10-07 18,770.89 428.3 0.6037 8.55405 5.16409 0.36445 73.17209-11-07 18,907.60 443.75 0.72831 3.60728 2.62722 0.53043 13.01323-11-07 18,852.87 448.3 -0.2895 1.02535 -0.2968 0.08379 1.051310-12-07 19,930.68 497.55 5.71695 10.9859 62.8062 32.6836 120.6924-12-07 19,854.12 724.7 -0.3841 45.6537 -17.537 0.14756 2084.311-01-08 20,827.45 959.6 4.90241 32.4134 158.904 24.0336 1050.6

29.8858 122.656 601.14 338.834 4002.5

∑X ∑Y ∑XY ∑X² ∑Y²

72


β = n (∑xy) – (∑x) (∑y) ------------------------------- n ( ∑x² ) – (∑x)²

= 1.12

Return of Allied Digital Services Ltd.= 56.66 %


GREMARCH INFRASTRUCTURE.


BSE PRICE OF

GREMARCHX Y XY x² y²

11-04-07 13,183.24 83.95 - - - - -25-04-07 14,217.77 150.2 7.84731 78.916 619.279 61.5803 6227.711-05-07 13,796.16 137.35 -2.9654 -8.5553 25.3695 8.79344 73.19225-05-07 14,338.45 138.3 3.93073 0.69166 2.71874 15.4506 0.478411-06-07 14,083.41 146.7 -1.7787 6.07375 -10.803 3.16382 36.8925-06-07 14,487.72 186.25 2.87082 26.9598 77.3968 8.24163 726.8310-07-07 15,009.88 176.8 3.60416 -5.0738 -18.287 12.9899 25.74425-07-07 15,699.33 177.05 4.59331 0.1414 0.64951 21.0985 0.0210-08-07 14,868.25 176.1 -5.2937 -0.5366 2.84046 28.0236 0.287924-08-07 14,424.87 172.4 -2.9821 -2.1011 6.26554 8.89268 4.414510-09-07 15,596.83 195.25 8.12458 13.2541 107.684 66.0088 175.6725-09-07 16,899.54 266.6 8.3524 36.5429 305.221 69.7626 1335.410-10-07 18,658.25 282.75 10.4069 6.05776 63.0423 108.303 36.69725-10-07 18,770.89 266.5 0.6037 -5.7471 -3.4695 0.36445 33.02909-11-07 18,907.60 301.1 0.72831 12.9831 9.45571 0.53043 168.5623-11-07 18,852.87 299.75 -0.2895 -0.4484 0.12978 0.08379 0.20110-12-07 19,930.68 344.2 5.71695 14.829 84.7769 32.6836 219.924-12-07 19,854.12 339.15 -0.3841 -1.4672 0.56359 0.14756 2.152611-01-08 20,827.45 398.5 4.90241 17.4996 85.7903 24.0336 306.24

47.9881 190.02 1358.62 470.152 9373.4

73


∑X ∑Y ∑XY ∑X² ∑Y²

β = n (∑xy) – (∑x) (∑y) ------------------------------- n ( ∑x² ) – (∑x)²

= 2.52

Return of Gremarch Infrastructure.= 74.65 %


GLOBAL BROADCAST NEWS LTD.


BSE PRICE

OF GBNX Y XY x² y²

08-02-07 14,652.09 510.1 - - - - -23-02-07 13,632.53 630.8 -6.9585 23.662 -164.65 48.4202 559.8909-03-07 12,884.99 501.05 -5.4835 -20.569 112.791 30.0688 423.0923-03-07 13,285.93 549.9 3.11168 9.74953 30.3374 9.68257 95.05311-04-07 13,183.24 575.65 -0.7729 4.68267 -3.6193 0.59741 21.92725-04-07 14,217.77 563.45 7.84731 -2.1193 -16.631 61.5803 4.491611-05-07 13,796.16 672.3 -2.9654 19.3185 -57.287 8.79344 373.225-05-07 14,338.45 896.15 3.93073 33.2961 130.878 15.4506 1108.611-06-07 14,083.41 906.1 -1.7787 1.11031 -1.9749 3.16382 1.232825-06-07 14,487.72 936.3 2.87082 3.33297 9.56836 8.24163 11.10910-07-07 15,009.88 915.15 3.60416 -2.2589 -8.1414 12.9899 5.102625-07-07 15,699.33 867.15 4.59331 -5.245 -24.092 21.0985 27.5110-08-07 14,868.25 894.9 -5.2937 3.20014 -16.941 28.0236 10.24124-08-07 14,424.87 801.7 -2.9821 -10.415 31.0569 8.89268 108.4610-09-07 15,596.83 914.05 8.12458 14.014 113.858 66.0088 196.3925-09-07 16,899.54 973.45 8.3524 6.49855 54.2785 69.7626 42.23110-10-07 18,658.25 914.15 10.4069 -6.0917 -63.396 108.303 37.10925-10-07 18,770.89 876.05 0.6037 -4.1678 -2.5161 0.36445 17.37109-11-07 18,907.60 904.25 0.72831 3.21899 2.34442 0.53043 10.36223-11-07 18,852.87 901.3 -0.2895 -0.3262 0.09443 0.08379 0.1064

74


10-12-07 19,930.68 949.1 5.71695 5.30345 30.3196 32.6836 28.12724-12-07 19,854.12 958.25 -0.3841 0.96407 -0.3703 0.14756 0.929411-01-08 20,827.45 1141.55 4.90241 19.1286 93.7763 24.0336 365.9

37.8849 96.2872 249.683 558.921 3448.5

∑X ∑Y ∑XY ∑X² ∑Y²

β = n (∑xy) – (∑x) (∑y) ------------------------------- n ( ∑x² ) – (∑x)²

= 0.18

Return of Global Broadcast News.= 152.32 %


PYRAMID SAIMIRA THEATRE LTD.


BSE PRICE

OF PYRAMID

X Y XY x² y²

05-01-07 13,860.52 158.2 - - - - -19-01-07 14,182.71 190.15 2.32452 20.196 46.9458 5.40337 407.87708-02-07 14,652.09 441.3 3.30952 132.08 437.122 10.9529 17445.123-02-07 13,632.53 337.7 -6.9585 -23.476 163.357 48.4202 551.12709-03-07 12,884.99 230.35 -5.4835 -31.789 174.313 30.0688 1010.5123-03-07 13,285.93 285.9 3.11168 24.1155 75.0397 9.68257 581.55611-04-07 13,183.24 302.5 -0.7729 5.80623 -4.4878 0.59741 33.712325-04-07 14,217.77 339.55 7.84731 12.2479 96.1134 61.5803 150.01211-05-07 13,796.16 325.75 -2.9654 -4.0642 12.0519 8.79344 16.517725-05-07 14,338.45 334.05 3.93073 2.54797 10.0154 15.4506 6.4921311-06-07 14,083.41 339.4 -1.7787 1.60156 -2.8487 3.16382 2.5649825-06-07 14,487.72 352.55 2.87082 3.87448 11.123 8.24163 15.011610-07-07 15,009.88 320.05 3.60416 -9.2186 -33.225 12.9899 84.981725-07-07 15,699.33 287.65 4.59331 -10.123 -46.5 21.0985 102.48410-08-07 14,868.25 284.8 -5.2937 -0.9908 5.24496 28.0236 0.9816624-08-07 14,424.87 271.6 -2.9821 -4.6348 13.8213 8.89268 21.481710-09-07 15,596.83 317.7 8.12458 16.9735 137.902 66.0088 288.09925-09-07 16,899.54 341.2 8.3524 7.39692 61.782 69.7626 54.714410-10-07 18,658.25 309.65 10.4069 -9.2468 -96.23 108.303 85.502925-10-07 18,770.89 281.2 0.6037 -9.1878 -5.5467 0.36445 84.415509-11-07 18,907.60 285.75 0.72831 1.61807 1.17845 0.53043 2.61814

75


23-11-07 18,852.87 343.6 -0.2895 20.245 -5.8601 0.08379 409.85910-12-07 19,930.68 309.65 5.71695 -9.8807 -56.487 32.6836 97.627724-12-07 19,854.12 424.95 -0.3841 37.2356 -14.303 0.14756 1386.4911-01-08 20,827.45 451.45 4.90241 6.23603 30.5716 24.0336 38.888

43.5189 179.563 1011.09 575.277 22878.6

∑X ∑Y ∑XY ∑X² ∑Y²

β = n (∑xy) – (∑x) (∑y) ------------------------------- n ( ∑x² ) – (∑x)²

= 1.40

Return of Pyramid Saimira Theatre. = 90.15 %


ALLIED COMPUTER INTERNATIONAL.


BSE PRICE OF ALLIED COMPUTER

X Y XY x² y²

23-11-07 18,852.87 37.7 - - - - -07-12-07 19,966.00 59.9 5.9043 58.886 347.6803 34.8608 3467.620-12-07 19,162.57 71.8 -4.024 19.866 -79.9424 16.1925 394.6804-01-08 20,686.89 55.65 7.9547 -22.49 -178.925 63.2768 505.9411-01-08 20,827.45 45.15 0.6795 -18.87 -12.8201 0.46167 356

10.514 37.391 75.99302 114.792 4724.2

∑X ∑Y ∑XY ∑X² ∑Y²

β = n (∑xy) – (∑x) (∑y) ------------------------------- n ( ∑x² ) – (∑x)²

= 0.02

Return of Allied Computer International.= 399.17 %


76


RELIGARE ENTERPRISES LTD.


BSE PRICE OF RELIGARE

X Y XY x² y²

21-11-07 18,602.62 521.7 - - - - -07-12-07 19,966.00 540 7.32897 3.50776 25.7083 53.7138 12.30420-12-07 19,162.57 513.45 -4.024 -4.9167 19.7846 16.1925 24.17404-01-08 20,686.89 683.05 7.95467 33.0315 262.754 63.2768 1091.1

11-01-08 20,827.45 642.35 0.67946 -5.9586 -4.0486 0.46167 35.505

11.9391 25.664 304.199 133.645 1163.1

∑X ∑Y ∑XY ∑X² ∑Y²

β = n (∑xy) – (∑x) (∑y) ------------------------------- n ( ∑x² ) – (∑x)²

= 2.31

Return of Reliagare Enterprises Ltd..= 191.89 %


77


VISHAL RETAIL LTD.


BSE PRICE

OF VISHAL

X Y XY x² y²

04-07-07 14,880.24 752.2 - - - - -20-07-07 15,565.55 722.45 4.6055 -3.9551 -18.215 21.2107 15.642506-08-07 14,903.03 625.1 -4.2563 -13.475 57.3539 18.1163 181.57521-08-07 13,989.11 620.75 -6.1324 -0.6959 4.2675 37.6069 0.4842606-09-07 15,616.31 641.5 11.6319 3.34273 38.8823 135.301 11.173821-09-07 16,564.23 718 6.07006 11.9252 72.3866 36.8457 142.2105-10-07 17,773.36 741.4 7.29965 3.25905 23.7899 53.2848 10.621419-10-07 17,559.98 706 -1.2006 -4.7748 5.73238 1.44135 22.798205-11-07 19,590.78 699.45 11.5649 -0.9278 -10.73 133.748 0.8607420-11-07 19,280.80 709.3 -1.5823 1.40825 -2.2282 2.50359 1.9831705-12-07 19,738.07 746.7 2.37163 5.2728 12.5052 5.62465 27.802520-12-07 19,162.57 775 -2.9157 3.79001 -11.05 8.50122 14.364204-01-08 20,686.89 925.3 7.95467 19.3935 154.269 63.2768 376.1111-01-08 20,827.45 915.9 0.67946 -1.0159 -0.6903 0.46167 1.03203

36.0905 23.5472 326.274 517.923 806.658

∑X ∑Y ∑XY ∑X² ∑Y²

β = n (∑xy) – (∑x) (∑y) ------------------------------- n ( ∑x² ) – (∑x)²

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= 0.63

Return of Vishal Retail Ltd.= 167.57 %


According to my study the investment done in the securities by the

investors is mainly done only by the image of the company but not on

the basis of the fundamental analysis.

EPS is the money that is left over after a company pays all of its debt

so, higher the EPS the better it is.

A low P/E is generally considered good because it may mean that the

stock price has not risen to reflect its earning power. A high P/E, on

the other may reflect an overpriced stock or decreasing earnings.

A Beta of 1 indicates that the Security’s price will move with the

market. A Beta of less than 1 means that security will be less volatile

than the market. A Beta of greater than 1 indicates that the security

price will be more volatile than the market.

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According to my study most probably, listing price is more compare to

allotment price.

According to my study, compare to year 2005 (61) and 2006 (85), in

this year there are more IPO listed in the year 2007 (110).

The investment in IPO can prove too risky because the investor does

not know anything about the company because it is listed first time in

the market so its performance cannot be measure.

On the other hand it can be said that the higher the risk higher the

returns earned. So we can say that the though risky if investment is

done then it can give higher returns as well.

For example- we can take the example of Reliance

power. The Investors invested in huge amounts with the

faith that they will get good returns but nothing

happened so when the IPO got listed. So one should

think and invest in IPO

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Primary market is more volatile than the secondary market because all

the companies are listed for the first time in the market so nothing can

be said about its performance.

If higher risk is taken, it is always rewarded with the higher returns. So

higher the risk the more the returns rewarded for it.

“We can fairly predict the future, but can’t make it happen as it is.”

Investment management

By Prof. V. Gangadhar & Dr. G. Ramesh Babu,

1st edition, (Amol Publication Pvt. Ltd.), 2003.

Magazine: Capital Market.

Websites

o www.rediff.com

o www.bseindia.com

o www.nseindia.com

o www.moneycontrol.com

o www.arcadiastock.com

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http://www.moneycontrol.com/

http://www.bseindia.com/


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ankita's project on ipo

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