initial public offer and analysis

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SYNOPSIS REPORT

Name of the student : N. IMTIAZ AHMED

Reg.No : 09AT1E0043

Title name : INITIAL PUBLIC OFFER AND ANALYSIS

Company Name : PCS SECURITIES LIMITED

UCON PLAZA,

KURNOOL.

Duration of the project : 30-04-2011 to 13-06-2011


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PCS Securities Ltd.Powered by Generations...Inspired by Trust!

Today's world of advanced technology and blink-of-an-eye communication has opened a magicbox full of opportunities and wealth fulfillment formulae. PCS is here to offer you some such

opportunities which help you stretch your investment horizon and unleash the true potential of

your wealth.

PCS Securities Ltd. adds the dynamic growth factor to your savings and investments by

guiding you through the land of opportunities and maximizing your returns. PCS is a fourth

generation stock broking powerhouse - one among the top 100 national brokerage firms in

India and has served thousands of investors over the past six decades. PCS is now present at

over 340 locations across the Nation and one of the top CDSL Participants in South India.PCS was born out of the aspirations of Late Mr. K. C. Shrimal - founder member of Hyderabad

Stock Exchange - and nurtured through generations by Late Mr. S. C. Shrimal and his son Mr.

P. C. Shrimal, Promoter and Chairman of PCS Securities Ltd., twice President of HSE, who has

also served as the Chairman of the FISE - Federation of Indian Stock Exchanges. He is

currently assisted by his son, Mr. Prashant Shrimal. The Board consists not only of the highly

experienced generational hierarchy, but also industry stalwarts with a wealth of expertise

including Whole-time Director Mr. Paresh Shah and Director Mr. Jagdish Ahuja (Ex-President,

Bangalore Stock Exchange).

PCS has always been a pioneer in adopting newer technologies to increase efficiencies in

providing state-of-the-art software like SMS Alerts to customers notifying balances, Market

In Your Pocket - Live quotes and charts delivered directly to your mobile phone, a robust

Intranet based software for PCS dealers to enable instant communication and accurate

informationLife only gets easier with PCS on your side.


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INTITIAL PUBLIC OFFER AND ANALYSIS

Initial public offering (IPO), also referred to simply as a "public offering" or "flotation," 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 timeto bring it to market.

An IPO can be a risky investment. For the individual investor, it is tough to predict what the

stock or shares will do on its initial day of trading and in the near future since there is often

little historical data with which to analyze the company. Also, most IPOs are of companies

going through a transitory growth period, and they are therefore subject to additional

uncertainty regarding their future value. However, in order to make money, calculated risks

need to be taken.

In this study find the IPO how gives the benefits and given the guidelines and suggestions to

the investor. Before selecting a company the investor should think about the company. A

good investor should diversify and reduces his risk by investing in different securities.

Primary market returns are very attractive in short period especially on the day of listing. But

investor in IPOs should take wise decision in choosing the best company.


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REASONS FOR LISTING

When a company lists its shares on a public exchange, it will almost invariably

look to issue additional new shares in order to raise extra capital at the same time. The money

paid by investors for the newly-issued shares goes directly to the company in contrast to a

later trade of shares on the exchange, where the money passes between investors. An IPO,

therefore, allows a company to tap a wide pool of stock market investors to provide it with

large volumes of capital for future growth. The company is never required to repay the

capital, but instead the new shareholders have a right to future profits distributed by the

company and the right to a capital distribution in case of dissolution.

The existing shareholders will see their shareholdings diluted as a proportion of the

company's shares. However, they hope that the capital investment will make their

shareholdings more valuable in absolute terms.

In addition, once a company is listed, it will be able to issue further shares via a rights issue,

thereby again providing itself with capital for expansion without incurring any debt. This

regular ability to raise large amounts of capital from the general market, rather than having to

seek and negotiate with individual investors, is a key incentive for many companies seeking

to list.

Introduction of IPO in context of Indian market

The Indian primary market has come a long way particularly in the last decade after

deregulation of the Indian economy in 1991-92. Both the primary and secondary markets

have had their fair share of reforms, structural cum policy changes time to time. The most

commendable being the dismantling of the Controller of Capital Issues (CCI) and

introduction of the free pricing mechanism. This changed the whole facet of Initial Public.


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Around 80 IPOs made its entry into stock market in this year, which was never in the history

of Indian capital market. Maximum number of issues received enormous response from the

investors. Coal India IPO which is raising around 15,000 crores is making its entry into stock

market in this October, it is considered to be the largest IPO ever made in the Indian history.

Many experts are viewing that its going to change the Indian economic scenario.

PROCEDURE, PRICING, STRUCTURING AND REQUIREMENTS OF AN IPO

PROCEDURE FOR MAKING AN ISSUE:

For making an IPO the following procedure has to be followed

1] Appointment of Lead Manager or Merchant Banker.

2] Issue pricing

3] Issue Structuring

4] Other requirements that are needed.

The Stock Exchange Listing Agreement The condition for listing in stock exchange. The Role of Underwriters. Procedural aspects of an issue. Post issue procedure.

NEED FOR THE STUDY:

Study about IPO helps to know about the various procedures, requirements andneed for the company for making an IPO.

The process made through the analysis of success and failure of various IPOshelps to know about the attitude of investors towards the issue made.


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SCOPE OF THE STUDY:

To make an initial public offer (IPO), the companies have to look into thevarious aspects like what guidelines it has to follow, the procedure for coming

to Public issue of shares for the proposed objective.

Scope of this project is limited to the guidelines and procedures for coming toan IPO.

Scope is limited to mentioned companies which came for an IPO and theirstrengths and weaknesses for succeeding in an IPO.

OBJECTIVES OF THE STUDY:

To study in detail about the various methodologies that are involved in makingan IPO, such as fixed price issues, book built issues.

To study on various stages involved in the process of IPO such as issue pricing,issue structuring, procedural requirements of an IPO etc.

To know about the latest and future development in the IPO To study about RELIANCE POWER IPO and reasons for its failure. To study about COX&KINGS IPO and reasons for its success.


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RESEARCH METHODOLOGY

The data collection methods include both primary and secondary collection methods.

Primary Data: This method includes the data collected from the personal interaction

with authorized members of pcs securities ltd.

The study is based on secondary data.

Sources of Data

The lecturers delivered by respective departments. The Internet. Reference from magazines, newspapers and books. Company and NSE websites.


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initial public offer and analysis

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