The Analysis of the Initial and Post Issue Performance of Initial Public Offerings (IPOs) in Indian Stock Market
|
|
- Ralf Higgins
- 6 years ago
- Views:
Transcription
1 The Analysis of the Initial and Post Issue Performance of Initial Public Offerings (IPOs) in Indian Stock Market ar nh,ukfyfll vkwiq nh bfuf'k;y,.m ikslv b';q ijiqksjesal vkwiq bfuf'k;y ifcyd vkwiqfjaxl (vkbz-ih-vks-) bu bf.m;u LVkWd ekdszv el THESIS Submitted to Kumaun University, Nainital Es t For the award of the Degree of DOCTOR OF PHILOSOPHY (Ph.D.) In Commerce Under the supervision of: Research Scholar: Dr. B.D. Kavidayal Ajay Kumar Chauhan Professor Department of Commerce DSB Campus, Kumaun University Nainital, Uttrakhand
2 [2]
3 [3]
4 PREFACE Indian capital market has witnessed a drastic development as a result of economic liberalisation in the country since This includes abolishing the regulated regime under the Controller of Capital Issues (CCI) and establishing the Securities and Exchange Board of India (SEBI) as the market monitor in The technological advancements in the stock market, improved trading process, strict regulatory controls, enlarged investor base has brought a new environment of stock investment in India, likely to develop in the future also. Investors perceive Indian capital market, whether local or global, as a new investment opportunity to earn high returns. The research statistics have proven that in the Indian financial markets, equity instruments provide higher returns in long period as compared to other traditional forms of investments such as fixed deposits and gold etc. Thus there has been a continuous increase in the tendency of investors to make investments in equity by taking more risk in order to earn superior returns from the stock market. Capital market is considered as the best opportunity to fulfill the dreams of retail investors. As the Indian economy is considered as one of the highest developing economy in the world, the investors expect the good returns in view of that. The funds from different class of investors including Foreign Institutional Investors, qualified institutional investors and retail investors is expected to increase in the future in the Indian stock market. Along with the developments in the secondary market, the primary market has also shown the tremendous improvement in recent years. Initial public offering (IPO), also referred to simply as a "public offering", going public or "flotation" is when a company issues equity 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. For the individual investor, although 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, yet they are very popular among the investors. In last few years a large number of IPOs have come in the market and have been successful in attracting the investor s attention and funds. The history of IPO under pricing in Indian stock market made IPO investment at the time of issue relatively safer for the investors also the companies perceive it as a reasonably reliable source of raising of [4]
5 funds in a scenario of highly volatile interest rates in the economy. At the end, the both entities are seems to be in the win-win position. This study is an effort to analyze the initial returns provided by Initial Public Offerings (IPO s) over and above the benchmark index S & P CNX Nifty after the issue on the listing day as well as the performance of IPO s in terms of the long term returns up to the period of one to five years after the listing of the issue using event study methodology and to identify the different factors that explains the return behavior of IPOs in different time periods of the emerging Indian economy. The study includes the IPO of the companies, which offer public issue as the Initial Public Offerings (IPOs) during the period Jan 2000 to Dec 2010 through National stock exchange (NSE). The data used for the study is secondary in nature and collected from the CMIE database PROWESS and the official website of National stock exchange. The analysis is done using the software SPSS and MS Excel. It is found that the frequency of IPOs is high in bullish period i.e. most of the companies prefer to come with IPOs when the market sentiments are good. The average age of the firm issuing IPOs is found to be 15 years. The most of the IPOs are from the private companies which belong to the manufacturing and services industries. The average return provided by the IPOs on the listing day is percent and the cumulative average abnormal return (CAAR) of the IPOs is found to be percent. It is also found that the returns on the listing day as well as abnormal returns on the application funds are positive and are 2.07 percent and 4.20 percent respectively. The weighted average return on the invested capital (application money) on the listing day is found to be the 4.46 percent. The results in the study support the anomalies of underpricing of IPOs in short run in Indian stock market. Applying the multiple regressions model it is found that the returns of the IPO on the listing are highly influenced by the subscription and the behavior of the Index during the same period and are not influenced by the factors such as promoter s holding, age, issue size and the time delay. The results of the long term performance (without adjusting the market returns) indicate that the IPOs gives negative returns in the next four years after the listing. If an investor buys the stocks on the listing day he/she has to hold for many years (at least five) to make good returns. Abnormal returns are calculated after adjusting the market returns in the returns provided by the IPOs after the listing. The results indicates that the abnormal returns provided by 259 IPOs after [5]
6 one year from listing are percent, abnormal returns provided by 226 IPOs after two year from listing are percent, abnormal returns provided by 210 IPOs after three year from listing are percent, abnormal returns provided by 129 IPOs after four year from listing are percent and after five years the abnormal returns increases to percent. This poor performance of Indian IPOs in long term indicates the fundamental anomaly of underperformance of IPOs in long term. This anomaly is not only exists in India but also found to be present in almost all stock markets. For the first time in the world, the Indian stock market regulator, Securities and Exchange Board of India (SEBI), introduced the system of IPO grading and made it mandatory for the companies going public since May This is done in order to decrease the information asymmetry between the retail investors and qualified institutional buyers (QIBs) and to protect the wealth of retail investors from the investments in low quality Initial Public Offerings (IPOs). IPO grades, which are based on the fundamentals of the companies and are supposed to indicate quality signals about the future prospects of the company s performance and hence ensure better returns from the investments in quality IPOs. This is done to help the majority of investors so that they can make wise investments. The effort is also made in the study to investigate the relevance of IPO grading on the under pricing, long term returns, liquidity and the P/E ratio of the companies. For the purpose of the study, 83 IPOs are selected, which came after May 2007 through National Stock Exchange (NSE) and possess IPO grades at the time of issue. The IPO s of different IPO grades have been analyzed in terms of underpricing, liquidity, P/E ratio and long term returns using t-test and regression analysis. The results indicate that the QIBs consider IPO grading significantly and hence also affects the overall subscription of the IPO. The listing day liquidity of higher graded IPOs is low but commands better liquidity in the long term. Long term performance of the higher graded IPO is better than lower graded IPO s. However, the IPO Grading in not relevant in explaining the Listing Day returns. Also the IPO grading has no impact on the subscription behavior of retail investors. [6]
7 ACKNOWLEDGEMENTS This work of mine would not seen the light of the day had the blessings, cooperation, encouragement, guidance, precious time and views of good many not have been there with me all along in bringing out it and therefore my heart knows no bounds in acknowledging so indispensable. At first I would thank providential powers who bestowed on me the incessant inspiration and sustained strength in the form of life blood to carry out this project. I am heartily thankful from the heart s bottom to my supervisor, Dr. B D Kavidayal, Professor, Department of Commerce, DSB Campus, Kumaun University, Nainital whose able guidance, high standard commitments, rigorous approach, stimulating support and encouragement, beyond repayment, from the initial to the final level enabled and motivated me to complete the thesis and develop an understanding of the subject. I am also thankful to Prof. B. D Awasthi, Head, Department of Commerce and other members of Commerce department for having given me the opportunity to pursue Doctoral Programme at the Department and for the support during the period of research. My heartfelt thanks, gratitude and regards are due to Dr. Keval Badhani, Associate Professor, Department of Commerce who has obliged me by readily extending scholastic hand, unflinching co-operation and motivation whenever required. I am also indebted to the officials of National Stock exchange, SEBI, and other institutions for providing the valuable information in their official website that helps in conducting the research work. I am indebted to my mother and father, who have been the lifelong source of inspiration in my endeavors and other family members. I would be remiss if I failed to thank my gracious wife Vartika Chauhan who extended exceptional support and encouragement. I would like to thank all the librarians, respondents and individuals whose contribution directly or indirectly resulted in this thesis being materialized as the thesis sought assistance from analysis of experts, academic works and reports etc. Place: (Ajay Kumar Chauhan) [7]
8 CONTENTS Chapteriszation Topic Name Page No. Certificate Preface Acknowledgements CHAPTER-1: Initial Public Offerings (IPOs) In Indian Stock Market Capital Market Primary market in India Initial Public Offerings (IPOs) Different kinds of issues Offer Documents (ODs) Issue Requirements Pricing of an Issue (IPO) Book Building Process Categories of Investors Intermediaries involved in the Issue Process The Offer Document SEBI s Role in an Issue IPO Grading in India New Provisions in Initial Public Offerings (IPO) Basis of Allocation/Basis of Allotment The Market Index (S&P CNX NIFTY) Statement of the problem 39 Chapter-2: Review of the Literature, Objective and Research Methodology Review of the literature Research Methodology Rationale of the study Statement of the problem Objective of the study Research design Sampling 62 [8]
9 2.4.2 Description of the variables Data Collection Statistical tools to be used Hypothesis to be tested Software used 69 Chapter- 3: Performance of Initial Public Offerings (IPOs) in Short Run and in Long Term in Indian Stock Market Frequency distribution of Initial Public Offerings (IPOs) Age profile of the companies came with IPOs Ownership group Industry Profile of the companies came with IPOs Returns of IPOs on the listing day Categories wise returns Abnormal Returns of IPOs on the listing day using Event study methodology Returns on the application money Long term performance of IPOs over the market 93 Chapter- 4: Factors Contributing IPO Performance Correlation between the subscription, the return on the 102 listing day and the abnormal return. 4.2 Subscription and the returns Factors influencing the short term return of IPOs on 104 the listing day 4.4 Significance of IPO Grading in Indian Stock Market Frequency Distributions of the IPO 111 Grading of the Companies 4.5 IPO grading and category wise subscription IPO grading and the underpricing (short term returns of IPOs) IPO grading and the long term performance of IPOs IPO Grading and liquidity on the listing day Impact of IPO grading on IPO performance Criticism of IPO Grading 120 [9]
10 CHAPTER-5: Conclusions and Suggestions 123 Bibliography 135 Appendix 142 List of companies [10]
11 LIST OF TABLES Table No. Title of the Table Page No. Table 1.1 Industry wise classification of capital raised 8 Table 1.2 Table 1.3 Listing criteria for companies on the cash market segment of NSE Difference between Book building issue and fixed price issue Table 3.1(a) Number of IPOs in different years 75 Table 3.1(b) Frequency of IPOs indifferent scenarios 77 Table 3.2 Table 3.3 Table 3.4 Frequencies of the companies issuing IPOs with respect to different age group Frequency of companies that belongs to the different ownership groups Frequency of companies that belongs to different industries Table Descriptive statistics of the return on the listing day 84 Table Independent Sample T test 86 Table 3.6(a) Age group and returns 87 Table 3.6(b) Issue size and returns 87 Table 3.6(c) Ownership groups and returns 87 Table 3.6(d) Promoter s holding after the issue and returns 88 Table Abnormal returns 89 Table Independent sample t test between fixed issue and book building issue Table 3.8 Descriptive statistics of returns on the application money on the listing day 93 Table 3.9(a) Long term performance of IPOs 95 Table 3.9(b) Long term market adjusted performance of IPOs. 96 Table 3.9(c) Independent sample T test 100 [11]
12 Table 4.1(a) Correlation between the subscription, the returns on the listing day and the abnormal return 103 Table 4.2 Subscription wise returns 103 Table Simple regression models 106 Table Table Table Multiple regression model with abnormal return as a dependent variable Independent sample t test between IPOs and other similar company after one year of listing. Frequency distribution of the IPO grading of the companies Table IPO grades and the age of the companies 112 Table IPO grading and subscription in different categories 113 Table 4.6 IPO grading and listing day returns 115 Table 4.7 IPO grading and long term returns 117 Table 4.8 IPO grades, liquidity and price to book value ratio on the 118 listing day Table 4.9 Impact of IPO grading on different output variables 120 [12]
13 LIST OF FIGURES Figure No. Title of the Figure Page No. Figure 1.1 Resources mobilized from the primary market (Rs. in Crores) Figure 1.2 Types of issues 10 Figure 1.3 Life cycle of an IPO 30 Figure 3.1(a) Number of IPOs in different years 75 Figure 3.1(b) The behavior of the market index (S & P CNX NIFTY) during the period Jan 2000 Dec 2010 Figure 3.1(c) Number of IPOs in different scenarios 78 Figure 3.2(a) Figure 3.2(b) Frequency distribution of the age of the companies came with IPOs Frequencies of the companies issuing IPOs according to the age group Figure 3.5 Frequency distribution of the returns on the listing day. 85 Figure 3.7 Frequency distribution of the abnormal returns on the listing day. Figure 3.9(a) Long term performance of the IPOs 97 Figure 3.9(b) Market adjusted returns of IPOs in long run 98 Figure Figure Frequency distribution of the IPO grading of the companies IPO grading and subscription in different categories of investors Figure 4.6 IPO grading and listing day returns 116 Figure 4.7 IPO grading and long term returns Figure 4.8 IPO grading, list price to book value ratio and liquidity on the listing day 119 [13]
14 List of Abbreviations ASBA BHAR BRLM BSE CAAR CAR CC CCI CCIL CDSL CM CM CMIE CRAs CRISIL DIP DPs ECS NEFT EFT ELSS EPS ETFs FDI FDRs FDs FIBV FIIs FIs FPO GDP Applications supported by blocked amount Buy and Hold Abnormal Rate of Return Book Running Lead Manager The Stock Exchange, Mumbai Cumulative Average Abnormal Return Cumulative Abnormal Return Clearing Corporation Controller of Capital Issues Clearing Corporation of India Limited Central Depository Services (India) Limited Clearing Member Segment Capital Market Segment of NSE Centre for Monitoring Indian Economy Credit Rating Agencies Credit Rating Information Services of India Limited Disclosure and Investor Protection Depository Participants Electronic Clearing Service National Electronic Funds Transfer Electronic Fund Transfer Equity Linked Saving Schemes Earning Per Share Exchange Traded Funds Foreign Direct Investment Foreign Deposit Receipts Fixed Deposits International World Federation of Stock Exchanges Foreign Institutional Investors Financial Institutions Further Public Offer Gross Domestic Product [14]
15 IPO IRDA IISL IRDA MFs NIIs NSE OCBs OD PAN PSU PUEC QIB QIP RBI RI RIIs ROC RTGS S&P SAD SEBI SEO VC WR Initial Public Offer Insurance Regulatory and Development Authority India Index Services & Products Limited Insurance Regulatory and Development Authority Mutual Funds Non-Institutional Investors National Stock Exchange Overseas Corporate Bodies Offer Document Permanent Account Number Public Sector Unit Paid Up Equity Capital Qualified Institutional Buyers Qualified Institutional Placement Reserve Bank of India Right Issue Retail Individual Investor Registrar of Companies Real Time Gross Settlement Standard and Poor s Seasonal Affective Disorder Security and Exchange Board of India Seasoned Equity Offerings Venture Capitalist Wealth Relative [15]
SHORT RUN & LONG RUN PERFORMANCE OF IPO & FPO INDIAN STOCK MARKET
Abstract SHORT RUN & LONG RUN PERFORMANCE OF IPO & FPO INDIAN STOCK MARKET By Bhakti Mulchandani (Chandni Gerelani) Now-a-days, Initial Public Offer (IPO) has become one of the preferred investments for
More informationUNDERPRICING OF INITIAL PUBLIC OFFERINGS: AN INDIAN EVIDENCE
Available online at : http://euroasiapub.org/current.php?title=ijrfm, pp. 44~49 Thomson Reuters Researcher ID: L-5236-2015 UNDERPRICING OF INITIAL PUBLIC OFFERINGS: AN INDIAN EVIDENCE Sahil Narang 1, Assistant
More informationA STUDY ON FOREIGN DIRECT INVESTMENT INFLOWS INTO INDIA
A STUDY ON FOREIGN DIRECT INVESTMENT INFLOWS INTO INDIA A thesis submitted to BHARATHIDASAN UNIVERSITY for the award of the degree of DOCTOR OF PHILOSOPHY IN ECONOMICS By G. PANNEERSELVAM [Reg. No. 014973/Ph.D.2/Economics/Part-Time/July
More informationDoctoral Thesis submitted In partial fulfillment of the requirements for the award of the degree of DOCTOR OF PHILOSOPHY MANAGEMENT. K.
Evaluation of Investment Performance and Perception of Investors in Bengaluru and its Sub-Urban Area with respect to Equity Linked Savings Scheme Plans of Indian Mutual Funds Doctoral Thesis submitted
More informationIFLR India Awards "Team of the Year" in the Indian Investment Banks category. Primary and Secondary Issuance Process
IFLR India Awards 2011 - "Team of the Year" in the Indian Investment Banks category Primary and Secondary Issuance Process May 2012 Table of Contents Section 1 Section 2 Capital Markets Overview Trends
More informationFOREIGN DIRECT INVESTMENT IN INDIA: TRENDS, IMPACT, DETERMINANTS AND INVESTORS EXPERIENCES
FOREIGN DIRECT INVESTMENT IN INDIA: TRENDS, IMPACT, DETERMINANTS AND INVESTORS EXPERIENCES by: MANPREET KAUR Department of Management Studies Submitted in fulfillment of the requirements of the degree
More informationAcknowledgement. I am extremely thankful to Mr.D.Shyjan, Lecturer in the Department, for his timely help at various stages of the study.
Acknowledgement I express my heartfelt thanks to my supervisor Dr.C.Krishnan, Selection Grade Lecturer, Government College, Kodencherry, Calicut, for invaluable advice, kind help, and constant and whole-hearted
More informationTo study Influence of IPO Rating on demand in Indian IPO market in special context to Retail Investors.
To study Influence of IPO Rating on demand in Indian IPO market in special context to Retail Investors. Mrs. Amita Jadhav (Research Scholar, The Indian Institute of cost and Management Studies and Research
More informationISSUE STRUCTURE. The key common terms and conditions of the Bonds are as follows: COMMON TERMS FOR ALL SERIES OF THE BONDS
ISSUE STRUCTURE The CBDT has, by the CBDT Notification, authorised our Company to raise the Bonds aggregating to ` 10,00,000 lakhs. Pursuant to the CBDT Notification and the Prospectus Tranche-1, our Company
More informationIPO Performance and IPO Grading in Indian Markets: An Empirical Study ( )
IPO Performance and IPO Grading in Indian Markets: An Empirical Study (2008-2012) Dr. H. N. Shivaprasad* Mr. Kallanagouda** 1. IPO Grading -Meaning and Importance SEBI is the first market regulator to
More informationICICI Prudential Life Insurance Company Limited - Track Record
Name of the issue: ICICI Prudential Life Insurance Company Limited 1 Type of issue (IPO/ FPO) Initial Public Offer ("IPO") 2 Issue size (Rs crore) 6,056.79 3 Grade of issue alongwith name of the rating
More informationFrequently Asked Questions on Further Fund Offer (FFO) BHARAT 22 ETF. An open-ended Exchange Traded Fund investing in S&P BSE Bharat 22 Index
The information contained herein is solely for private circulation for reading/understanding of registered Advisors/ Distributors and should not be circulated to investors/prospective investors. Frequently
More informationRisk Management in the Australian Stockmarket using Artificial Neural Networks
School of Information Technology Bond University Risk Management in the Australian Stockmarket using Artificial Neural Networks Bjoern Krollner A dissertation submitted in total fulfilment of the requirements
More informationFrequently Asked Questions on New Fund Offer of BHARAT 22 ETF
Frequently Asked Questions on New Fund Offer of BHARAT 22 ETF 1. What is BHARAT 22 ETF? Government of India (GOI), as part of its disinvestment programme, approved the setting up of Exchange Traded Fund
More informationTRACK RECORD OF THE PUBLIC ISSUES. HDFC Standard Life Insurance Company Limited. 2. Issue Size (Rs. Cr) INR 8, Cr.
TRACK RECORD OF THE PUBLIC ISSUES Name of the Issue: HDFC Standard Life 1. Type of Issue (IPO/FPO) IPO 2. Issue Size (Rs. Cr) INR 8,695.00 Cr 3. Grade of issue along with name of the rating agency Name
More informationCHAPTER-4 RESEARCH METHODOLOGY
CHAPTER-4 RESEARCH METHODOLOGY 4.1 Introduction to Problem Statement 4.2 Approaches to the Problem 4.3 Research Questions 4.4 Research Design 4.5 Sample Design 4.6 Period of Study 4.7 Data Analysis 4.8
More informationInfluence of Macroeconomic Indicators on Mutual Funds Market in India
Influence of Macroeconomic Indicators on Mutual Funds Market in India KAVITA Research Scholar, Department of Commerce, Punjabi University, Patiala (India) DR. J.S. PASRICHA Professor, Department of Commerce,
More informationAn Empirical Investigation of Short-Run Performance of Ipos in India
An Empirical Investigation of Short-Run Performance of Ipos in India Himanshu Puri Abstract Initial Public Offering (IPO), is a way for companies to go public and meet its financing needs. IPOs are known
More informationMutual Fund Industry in India. December 23, 2013 Sandesh Kirkire CEO Kotak Mutual Fund
Mutual Fund Industry in India December 23, 2013 Sandesh Kirkire CEO Kotak Mutual Fund A View of Indian Mutual Fund Industry Total industry AUM with break-up across Equity, Debt & Gold Money Market Rs.
More informationMr. Kedar Mukund Phadke 1, Dr. Manoj S. Kamat 2 ABSTRACT
IMPACT OF IPO GRADING ON LISTING RETURNS AT THE NATIONAL STOCK EXCHANGE (NSE) IN INDIA Mr. Kedar Mukund Phadke 1, Research Scholar Assistant Professor National Institute of Construction Management and
More informationPerformance Analysis of Initial Public Offering in Indian Context
Performance Analysis of Initial Public Offering in Indian Context ABSTRACT Initial Public Offering (IPOs) is a company's first offering of equity to public. Initial Public Offer is a major source of capital
More informationSEBI (ISSUE OF CAPITAL AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2009 [Previously SEBI (Disclosure and Investors Protection) Guidelines 2000]
SEBI (ISSUE OF CAPITAL AND DISCLOSURE REQUIREMENTS) REGULATIONS, 2009 [Previously SEBI (Disclosure and Investors Protection) Guidelines 2000] Payel Jain Academy of Financial Services Pvt. Ltd PUBLIC OFFER-
More informationReliance Nippon Life Asset Management Limited - Track Record
Name of the issue: Reliance Nippon Life Asset Management Limited 1 Type of issue (IPO/ FPO) Initial Public Offer ("IPO") 2 Issue size (Rs crore) 1,542.24 3 Grade of issue along with name of the rating
More informationOFFER PROCEDURE PART B. General Information Document for Investing in Public Issues
OFFER PROCEDURE PART B General Information Document for Investing in Public Issues This General Information Document highlights the key rules, processes and procedures applicable to public issues in accordance
More informationIRFC Public Issue of Tax Free Bonds
INDIAN RAILWAY FINANCE CORPORATION LIMITED Issue opening on 25 Feb 2013 HIGHLIGHTS OF TAX BENEFITS Interest from these Bonds do not form part of total income as per provisions of Section 10 (15) (iv) (h)
More informationVolume-3, Issue-6, November-2016 ISSN No:
VOLATILITY AND MUTUAL FUND RETURNS: A STUDY OF INDIAN EQUITY DIVERSIFIED SCHEMES Kalava Ramesh Research Scholar, School of Management Studies University of Hyderabad India kalavaramesh@uohyd.ac.in Dr.
More informationRURAL ELECTRIFICATION CORPORATION LIMITED (A Government of India Undertaking)
RURAL ELECTRIFICATION CORPORATION LIMITED (A Government of India Undertaking) HIGHLIGHTS OF TAX BENEFITS Interest from these Bonds shall not be included in total income of any person as per provisions
More informationRURAL ELECTRIFICATION CORPORATION LIMITED (A Government of India Undertaking) HIGHLIGHTS OF TAX BENEFITS
RURAL ELECTRIFICATION CORPORATION LIMITED (A Government of India Undertaking) HIGHLIGHTS OF TAX BENEFITS Interest from these Bonds shall not be included in total income of any person as per provisions
More informationThe issue offers yield ranging from % to % depending upon the series applied for and category of investor
INVESTMENT RATIONALE The issue offers yield ranging from 12.25 % to 12.6184% depending upon the series applied for and category of investor Opportunity to invest in a subsidiary of Religare Enterprises
More informationCHAPTER I THE ISSUES, METHODOLOGY AND OBJECTIVES OF THE STUDY
CHAPTER I THE ISSUES, METHODOLOGY AND OBJECTIVES OF THE STUDY 1.1 INTRODUCTION Investment means parking of savings in some avenue that would yield considerable returns in the future. Savings could be kept
More informationSEBI in its recent board meeting introduced some dynamic proposals in the
2015] SEBI S NEW INITIATIVES : TIMELINE REDUCTION OF PUBLIC-ISSUE 31 [2015] 131 SCL 31 (Mag.) SEBI S NEW INITIATIVES : TIMELINE REDUCTION OF PUBLIC-ISSUE, START-UP LISTING, RECLASSIFICATION OF PROMOTERS
More informationLong run performance of initial public offerings in India
Long run performance of initial public offerings in India Madhuri Malhotra Loyola Institute of Business Administration, India N. Premkumar Madras School of Economics, India Key Words Initial Public Offer,
More informationA STUDY ON INITIAL PERFORMANCE OF IPO S IN SINDIA DURING COMPARISON OF BOOK BUILDING AND FIXED PRICE MECHANISM
A STUDY ON INITIAL PERFORMANCE OF IPO S IN SINDIA DURING 2015-16 - COMPARISON OF BOOK BUILDING AND FIXED PRICE MECHANISM Dr. P. Roopa Assistant Professor, Sree Vidyanikethan Institute of Management, Tirupati
More informationNTPC Public Issue of Tax Free Bonds
HIGHLIGHTS OF TAX BENEFITS NTPC LIMITED (A Government of India Enterprise) Interest from these Bonds do not form part of total income as per provisions of Section 10 (15) (iv) (h) of Income Tax Act, 1961
More informationPerformance Evaluation of Banking Sector Fund in India
DOI : 10.18843/ijms/v5i3(2)/17 DOIURL :http://dx.doi.org/10.18843/ijms/v5i3(2)/17 Performance Evaluation of Banking Sector Fund in India Dr. Ashok Kumar, Assistant Professor, IMSAR, MDU Rohtak, India.
More informationINITIAL PUBLIC OFFERINGS (IPOs) REGULATIONS & PROCESS
INITIAL PUBLIC OFFERINGS (IPOs) REGULATIONS & PROCESS Options for Raising Funds Fund Raising Options Debt Equity Hybrid In India From Banks & FIs Public issue of Bonds/Debentures IPO FPO Rights Issue Various
More informationInternational Journal of Marketing & Financial Management (IJMFM)
International Journal of Marketing & Financial Management (IJMFM) ISSN: 2348 3954 (Online) ISSN: 2349 2546 (Print) Available online at : http://www.arseam.com/content/volume- 2issue-5-june-2014 Email us:
More informationSTOCK PRICE, LIQUIDITY, OWNERSHIP, AND FIRM PERFORMANCE: EVIDENCES FROM MINIMUM PUBLIC SHAREHOLDING REGULATION IN INDIA
COVER PAGE STOCK PRICE, LIQUIDITY, OWNERSHIP, AND FIRM PERFORMANCE: EVIDENCES FROM MINIMUM PUBLIC SHAREHOLDING REGULATION IN INDIA A THESIS SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE
More informationInternational Journal of Computing and Business Research (IJCBR) ISSN (Online) : INVESTORS PERCEPTION ON INITIAL PUBLIC OFFER (IPO)
INVESTORS PERCEPTION ON INITIAL PUBLIC OFFER (IPO) MAHAVIR SINGH 1 ABSTRACT The present study attempts to examine the Investors Perception on Initial Public Offer (IPO). The study explains that investing
More informationCHAPTER: 5 SOURCES OF DOMESTIC EQUITY FUND, VARIOUS ROUTES OF CAPITAL ISSUES FOR INDIAN COMPANIES AND CHANGE IN THEIR REGULATIONS
CHAPTER: 5 SOURCES OF DOMESTIC EQUITY FUND, VARIOUS ROUTES OF CAPITAL ISSUES FOR INDIAN COMPANIES AND CHANGE IN THEIR REGULATIONS 5,1 SOURCES OF DOMESTIC EQUITY CAPITAL 5.1.1 Equity shares 5.1.1.1 Equity
More information2 The Decision to Go Public: Does Business Group Affiliation Matter?
2 The Decision to Go Public: Does Business Group Affiliation Matter? Suja Sekhar C., Jijo Lukose P. J. 2 1. Introduction Business Groups (BG) are a dominant organizational form in many parts of the world
More informationSHORT RUN PERFORMANCE OF INITIAL PUBLIC OFFERINGS IN INDIA
CHAPTER 5 SHORT RUN PERFORMANCE OF INITIAL PUBLIC OFFERINGS IN INDIA It is a pervasive feature of markets, the world over, those investors who subscribed to initial public offerings, on the offer day,
More informationA COMPARATIVE ANALYSIS OF HDFC EQUITY FUND AND SBI MAGNUM EQUITY FUND FOR THE PERIOD OF 2010 TO G. RAVI KUMAR Dr V.
A COMPARATIVE ANALYSIS OF HDFC EQUITY FUND AND SBI MAGNUM EQUITY FUND FOR THE PERIOD OF 2010 TO 2015 G. RAVI KUMAR Dr V. MURALI KRISHNA 1 Research Scholar, Bharathiar University, Coimbatore, Tamil Nadu,
More informationMARINE ELECTRICALS (INDIA) LIMITED
MARINE ELECTRICALS (INDIA) LIMITED Our Company was incorporated pursuant to a certificate of incorporation dated December 04, 2007 issued by the Registrar of Companies, Maharashtra Mumbai at Maharashtra
More informationRepco Home Finance Limited. Last updated on 31-Dec Name of the Issue:
Name of the Issue: Repco Home Last updated on 31-Dec-2013 1 Type of Issue (IPO / FPO) IPO 2 Issue Size (Rs. Cr) 270.23 3 Grade of issue along with name of the rating agency Name ICRA Grade 3 4 Subscription
More informationA study on impact of foreign institutional investor on Indian stock market
International Journal of Commerce and Management Research ISSN: 2455-1627, Impact Factor: RJIF 5.22 www.managejournal.com Volume 2; Issue 11; November 2016; Page No. 91-96 A study on impact of foreign
More informationDLF Limited - Track Record
Name of the issue: DLF Limited 1 Type of issue (IPO/ FPO) Institutional Placement Programme ("IPP") 2 Issue size (Rs crore) 1,863.42 3 Grade of issue alongwith name of the rating agency Not Applicable
More informationUNIT 10 FINANCIAL MARKETS
UNIT 10 FINANCIAL MARKETS Introduction : Financial Market is a market for creation and exchange of financial assets like share, bonds etc. It helps in mobilising savings and channelising them into the
More informationIMPACT OF CORPORATE GOVERNANCE DISCLOSURES ON FINANCIAL PERFORMANCE
Inspira-Journal of Commerce, Economics & Computer Science 60 ISSN : 2395-7069, Volume 01, No. 03, July- September, 2015, pp. 60-67 IMPACT OF CORPORATE GOVERNANCE DISCLOSURES ON FINANCIAL PERFORMANCE Dr.
More informationSTUDY THE UNDERPRICING AND PRICING MECHANISMS USED IN IPOS IN BSE
STUDY THE UNDERPRICING AND PRICING MECHANISMS USED IN IPOS IN BSE Prashant Kumar 1, Mukesh Kumar 2 1,2 Research Scholar Department of Business Administration, University of Lucknow, (India) ABSTRACT Initial
More informationA Study on Performance Evaluation of Selected Equity Mutual Funds in India
A Study on Performance Evaluation of Selected Equity Mutual Funds in India PRIYANKA G. BHATT (Research Scholar) School of Management, R. K. University, Rajkot Gujarat (India) PROF. (DR.) VIJAY H.VYAS Head
More informationPERFORMANCE EVALUATION OF INITIAL PUBLIC OFFERINGS WITH REFERENCE TO THE NATIONAL STOCK EXCHANGE OF INDIA
PERFORMANCE EVALUATION OF INITIAL PUBLIC OFFERINGS WITH REFERENCE TO THE NATIONAL STOCK EXCHANGE OF INDIA ABSTRACT RANJITHA.R Dr. NIRMALA JOSEPH # # Vice Principal & Assistant Professor, St. Joseph s College
More informationName of the issuer: PNB Housing Finance Limited (the Company / the Issuer ) 1. Type of issue (IPO/ FPO) Initial Public Offering (IPO)
Name of the issuer: PNB Housing Finance Limited (the Company / the Issuer ) 1. Type of issue (IPO/ FPO) Initial Public Offering (IPO) 2. Issue size (Rs crore / Rs mm) Rs. 3000.00 crores / Rs. 30,000.00
More informationBonanza Portfolio Ltd
Public Issue of Tax Free Secured Redeemable Non-Convertible Bonds issued by HIGHLIGHTS OF TAX BENEFITS In exercise of the powers conferred by item (h) of sub-clause (iv) of clause (15) of Section 10 of
More informationJAKHARIA FABRIC LIMITED CIN: U17200MH2007PLC171939
JAKHARIA FABRIC LIMITED CIN: U17200MH2007PLC171939 Our Company was incorporated as Jakharia Fabric Private Limited on June 22, 2007, under the Companies Act, 1956 with the Registrar of Companies, Mumbai
More informationRating Efficiency in the Indian Commercial Paper Market. Anand Srinivasan 1
Rating Efficiency in the Indian Commercial Paper Market Anand Srinivasan 1 Abstract: This memo examines the efficiency of the rating system for commercial paper (CP) issues in India, for issues rated A1+
More informationGeneral Information Document for Investing in Public Issues
Last updated on, 2014 AMSONS APPARELS LIMITED (CIN: U74899DL2003PLC122266) Our Company was originally incorporated at New Delhi as Amsons Apparels Private Limited on 16 th September, 2003 under the provisions
More informationFurther, the Dividend income is tax free, if the company is liable to dividend distribution tax.
FAQs (Frequently Asked Questions) on RGESS Rajiv Gandhi Equity Savings Scheme (RGESS) 1. What is RGESS? Rajiv Gandhi Equity Savings Scheme (RGESS), is a tax saving scheme announced in the Union Budget
More informationTATA STEEL LIMITED BASIS OF ALLOTMENT
TATA STEEL LIMITED (Originally incorporated on August 26,1907 under the Indian Companies Act, 1882 as' The Tata Iran and Steel Company Limited',; the name of the Company was changed into 'Tata Steel Limited'
More informationVALIANT ORGANICS LIMITED CIN: U24230MH2005PLC151348
VALIANT ORGANICS LIMITED CIN: U24230MH2005PLC151348 Our Company was incorporated as Valiant Organics Private Limited on February 16, 2005 under the Companies Act, 1956 bearing Registration No. 151348 and
More informationReliance Nippon Life Asset Management Limited - Track Record
Name of the issue: Reliance Nippon Life Asset Management Limited 1 Type of issue (IPO/ FPO) Initial Public Offer ("IPO") 2 Issue size (Rs crore) 1,542.24 3 Grade of issue along with name of the rating
More information: ` per share. IPO opens during : Sept 28 Oct 04, 2011 Book Running Lead Manager : Atherstone Capital Markets Ltd.
I P O N O T E Onelife Capital Advisors Ltd. September 27, 2011 Price Band : `100-110 per share Minimum Bid Lot Size : 50 Equity Shares Maximum Bid Lot Size : 1800 Equity Shares IPO opens during : Sept
More informationFor product labelling please refer to slide no 16
For product labelling please refer to slide no 16 Structural bull markets see intermittent correction phases Actively managed Small & Midcap funds vs Indices -11.9% -13.4% -19.4% -34.5% -15.7% Growth of
More informationCHAPTER 7 FINDINGS, CONCLUSION AND RECOMMENDATIONS
177 CHAPTER 7 FINDINGS, CONCLUSION AND RECOMMENDATIONS INTRODUCTION Corporate control, cash flow rights etc are spread across many stakeholders such as managers, shareholders, directors through legal,
More informationCAPITAL MARKETS FINANCIAL INNOVATION & ENGINEERING
CAPITAL MARKETS FINANCIAL INNOVATION & ENGINEERING Sanjay Purao Deputy General Manager Securities and Exchange Board of India 2 May 2011 Securities and Exchange Board of India 1 Amount Raised Year 2008-09
More informationREC Public Issue of Tax Free Bonds
HI GHLI GHTS OF TAX BENEFI TS RURAL ELECTRI FI CATI ON CORPORATI ON LI MI TED ( A Government of I ndia Undertaking) I nterest from these Bonds do not form part of Total I ncome as per provisions under
More informationCONSOLIDATED SCHEME INFORMATION DOCUMENT OF VARIOUS SCHEMES OF ICICI PRUDENTIAL MUTUAL FUND:
CONSOLIDATED SCHEME INFORMATION DOCUMENT OF VARIOUS SCHEMES OF ICICI PRUDENTIAL MUTUAL FUND: Name/ Type of the Scheme ICICI Prudential Monthly Income Plan (Monthly Income is not assured and is subject
More informationTest Objectives. NISM-Series-III-B. Issuers Compliance Certification Examination
Test Objectives NISM-Series-III-B Issuers Compliance Certification Examination 1. Introduction to Indian Capital Market 1.1. Understand the Capital Market Structure in India and Role of Capital Market
More informationNISM Series IX: Merchant Banking Certification Examination. Test Objectives
NISM Series IX: Merchant Banking Certification Examination Test Objectives Chapter 1: Introduction to the Capital Market 1.1 Introduction to the Indian Capital Market 1.1.1 Explain the Capital market structure
More informationCHAPTER 10 Financial Market
CHAPTER 10 Financial Market A financial market refers to a market where the creation and exchange of financial assets (such as shares and debentures) takes place. Allocative Function of Financial Market
More informationCRISIL Independent Equity Research & IPO Grading
CRISIL Independent Equity Research & IPO Grading Empowering Investors Sudhir Nair Head Equities September 10, 2011 Key Messages Equity investment horizon should be long term (> 3 years) Long term investment
More informationTrends of Capital Market in India
Trends of Capital Market in India Jency S M. Phil Scholar, St. Berchmans College, Changanassery, Kottayam, Kerala, India Abstract Capital markets help to channelize surplus funds into productive use. Generally,
More informationINDIA INFRASTRUCTURE FINANCE COMPANY LIMITED A wholly owned Government of India Undertaking
HIGHLIGHTS OF TAX BENEFITS INDIA INFRASTRUCTURE FINANCE COMPANY LIMITED A wholly owned Government of India Undertaking Interest from these Bonds do not form part of total income as per provisions of Section
More informationTANVI FOODS (INDIA) LIMITED U15433TG2007PLC053406
TANVI FOODS (INDIA) LIMITED U15433TG2007PLC053406 Our Company was incorporated as Tanvi Foods Private Limited on March 30, 2007 under the Companies Act, 1956 with the Registrar of Companies, Hyderabad
More informationReliance Nippon Life Asset Management Ltd.
IPO Note: Reliance Nippon Life Asset Management Ltd. Industry: BFSI Recommendation: Subscribe Date: October 23, 2017 Issue Snapshot Company Name Reliance Nippon Life Asset Management Ltd. Issue Opens October
More informationCONSOLIDATED SCHEME INFORMATION DOCUMENT OF: This Product is suitable for investors who are seeking*:
CONSOLIDATED SCHEME INFORMATION DOCUMENT OF: Name/ Type of the Scheme ICICI Prudential Monthly Income Plan (Monthly Income is not assured and is subject to availability of distributable surplus) Open Ended
More informationA STUDY ON BANKERS PERFORMANCE AND BORROWERS PERCEPTION ON EDUCATION LOAN IN TAMIL NADU
A STUDY ON BANKERS PERFORMANCE AND BORROWERS PERCEPTION ON EDUCATION LOAN IN TAMIL NADU A THESIS Submitted to BHARATHIAR UNIVERSITY in partial fulfillment of the requirements for the award of the degree
More informationESOPS 16.1 Meaning Grant Vesting Period Option Trust
16.1 Meaning Employee Stock Option Plans or ESOPs are increasingly being accepted as a reward for Employee Productivity. Earlier, the use of ESOPs was restricted to knowledge-based companies only but now
More informationSYNOPSIS PAPERLESS TRADING IN INDIAN STOCK MARKETS
SYNOPSIS PAPERLESS TRADING IN INDIAN STOCK MARKETS Research Scholar: Joseph George Supervisor: Dr M Thomas John Branch: Commerce INTRODUCTION: The stock exchange is an organized market for the purchase
More informationREC Tax Free Bonds. RURAL ELECTRIFICATION CORPORATION LIMITED (A Government of India Undertaking) HIGHLIGHTS OF TAX BENEFITS COMPANY PROFILE
RURAL ELECTRIFICATION CORPORATION LIMITED (A Government of India Undertaking) HIGHLIGHTS OF TAX BENEFITS Interest from these Bonds do not form part of Total Income as per provisions under section 10 (15)
More informationMUTUAL FUNDS AN AVENUE TO INVESTORS
MUTUAL FUNDS AN AVENUE TO INVESTORS. M.Sudha Madhavi I/C Principal & Associate Professor Saanvi P.G. College for Women Hyderabad-500058 Email : smakella@gmail.com ABSTRACT Mutual funds have become one
More informationSEBI Investor Programme Guide for Mutual Fund Investors
SEBI Investor Programme Guide for Mutual Fund Investors 1. Introduction Different investment avenues are available to investors. Mutual funds also offer good investment opportunities to the investors.
More informationGIAN JYOTI E-JOURNAL, Volume 2, Issue 3 (Jul Sep 2012) ISSN X FOREIGN INSTITUTIONAL INVESTORS AND INDIAN STOCK MARKET
FOREIGN INSTITUTIONAL INVESTORS AND INDIAN STOCK MARKET Dr Renuka Sharma 1 & Dr. Kiran Mehta 2 Abstract The investment made by FIIs in any capital market has grabbed the attention of researchers to identify
More informationREC Tax Free Bonds. RURAL ELECTRIFICATION CORPORATION LIMITED (A Government of India Undertaking) HIGHLIGHTS OF TAX BENEFITS COMPANY PROFILE
RURAL ELECTRIFICATION CORPORATION LIMITED (A Government of India Undertaking) HIGHLIGHTS OF TAX BENEFITS Interest from these Bonds do not form part of Total Income as per provisions under section 10 (15)
More informationNATIONAL INSTITUTE OF SECURITIES MARKETS Established by the Securities and Exchange Board of India
NISM-Series-II-A: Registrars to an Issue and Share Transfer Agents - Corporate Certification Examination Test Objectives Unit 1: Introduction to Securities 1.1 Describe the broad categorization of securities
More informationKARDA CONSTRUCTIONS LIMITED
KARDA CONSTRUCTIONS LIMITED Our Company was incorporated as Karda Constructions Private Limited on September 17, 2007 as a Private Limited Company under the Companies Act, 1956 with the Registrar of Companies,
More information1 Type of Issue (IPO / FPO) IPO 2 Issue Size (Rs. Cr) Source: Prospectus dated March 28, 2016
Name of the Issue: Infibeam Incorporation Limited Last updated on April 12, 2016 1 Type of Issue (IPO / FPO) IPO 2 Issue Size (Rs. Cr) 450.00 Source: Prospectus dated March 28, 2016 3 Grade of issue along
More informationINDIAN CAPITAL MARKET- BY ANMI (India)
INDIAN CAPITAL MARKET- BY ANMI (India) 1) ANMI is a pan India association comprising of the trading members across India like National Stock Exchange (NSE), Bombay Stock Exchange (BSE) and other exchanges
More information1 Type of Issue (IPO/FPO) IPO. 2 Issue Size (Rs. Cr) Grade of issue alongwith name of the rating agency
Name of the Issue: PTC India Financial Services Limited 1 Type of Issue (IPO/FPO) IPO 2 Issue Size (Rs. Cr) 433.48 3 Grade of issue alongwith name of the rating agency Credit Analysis & Research Name ICRA
More informationNISM-Series-XI: Equity Sales Certification Examination
NISM-Series-XI: Equity Sales Certification Examination Test Objectives 1. Overview of Indian Securities Markets 1.1 Know about the Indian Securities Markets Discuss the structure of the Indian Securities
More informationHow do stock prices react to change in dividends?
2016; 2(5): 384-388 ISSN Print: 2394-7500 ISSN Online: 2394-5869 Impact Factor: 5.2 IJAR 2016; 2(5): 384-388 www.allresearchjournal.com Received: 18-03-2016 Accepted: 19-04-2016 Dr. R. Sharmila Associate
More informationIndex Methodology. December About the Index
ITE Shariah Mid Cap 51 Index Methodology Islami Tijara December 2010 ITE Shariah Size-segment Indices ITE Shariah-35 ITE Shariah Mid Cap-51 ITE Shariah Small Cap-81 ITE Shariah-111 ITE Shariah-251 About
More information(a) Bonus/capitalisation issues which represent only book keeping entries.
What are the Chief Functions of the New Issue Market? The main function of the New Issue Market is to facilitate the transfer of resources from savers to users. Conceptually, however, the New Issue Market
More informationTrends in Dividend Behaviour of Selected Old Private Sector Banks in India
7 Trends in Dividend Behaviour of Selected Old Private Sector Banks in India Dr. V. Mohanraj, Associate Professor in Commerce, Sri Vasavi College, Erode Dr. S. Sounthiri, Assistant Professor in Commerce
More informationSolved questions on Indian capital market
Solved questions on Indian capital market 1. In private placement, issuance is done to. (2 marks) (a) more than 50 persons (b) less than 100 persons (c) less than 50 persons (d) less than 10 persons 2.
More informationShabd Braham E ISSN
A Comparative Study on the Financial Performance of Selected Mutual Fund Schemes Shiji Shukla (Asst. Professor) Prof. (Dr.) Babita Kadakia, Principal Idyllic Institute of Managements Indore, Madhya Pradesh,
More informationOVERVIEW OF CAPITAL MARKET
Contents About the author I-5 Preface to second edition I-7 Chapter-heads I-9 1 OVERVIEW OF CAPITAL MARKET 1.1 Introduction 1 1.2 Financial System in India 2 1.3 Financial Markets 4 1.4 Role of securities
More informationNISM-Series-II-A: Registrars to an Issue and Share Transfer Agents -Corporate Certification Examination. Test Objectives
NISM-Series-II-A: Registrars to an Issue and Share Transfer Agents -Corporate Certification Examination Test Objectives Unit 1: Introduction to Securities 3 % 1.1 Describe the broad categorization of securities
More informationFOREIGN INSTITUTIONAL INVESTMENTS (FIIs) IN INDIA
FOREIGN INSTITUTIONAL INVESTMENTS (FIIs) IN INDIA N.NOOKA RAJU* Prof. M. UMA DEVI** *Research Scholar, Dept. of Commerce and Mgt. Studies, Andhra University Visakhapatnam, Andhra Pradesh, India **Department
More information1 Type of Issue (IPO / FPO) IPO. 2 Issue Size (Rs. Cr) Fresh Issue Size (Rs. Cr) Offer for Sale Component (Rs. Cr) 396.
Name of the HEALTHCARE GLOBAL ENTERPRISES LIMITED 1 Type of Issue (IPO / FPO) IPO 2 Issue Size (Rs. Cr) 649.64 - Fresh Issue Size (Rs. Cr) 252.88 - Offer for Sale Component (Rs. Cr) 396.76 Source: Prospectus
More information