Summer Internship Project

A study on risk and return on IPOs investment

At

Prepared by
Riddhi Thummar
167380592057
MBA Batch 2016-18

Under the guidance of

Riddhi c. sanghavi

ACADEMIC YEAR
2017-18
Submitted To
Noble group of institutions, Junagadh
Affiliated To

Gujarat Technological University

Certificate of college:
Certificate of company:
 Students Declaration

I undersigned Riddhi Thummar a student of Noble group of institutions MBA 3rd semester,
declare that summer internship project titled A study on risk and return on IPO investment is a
result of my own work and my indebtedness to other work publications, references, if any, have
been duly acknowledged. If I am found guilty of copying any other report or published
information and showing as my original work, I understand that I shall be liable and punishable
by Institute or University, which may include Fail in examination, Repeat study & re-
submission of the report or any other punishment that Institute or University may decide.

Riddhi Thummar

167380592057

Acknowledgement

I am using this opportunity to express our gratitude to everyone who supported me throughout
the course of this summer internship project. I am thankful for their aspiring guidance,
invaluably constructive criticism and friendly advice during the project work. Im sincerely
grateful to them for sharing their truthful and illuminating views on a number of issues related to
the project. I express my warm thanks to Mr. Ritesh Buddhdev (Zonal head, Gujarat), Ms.
Kashmira Modi (Branch Manager, Ahmedabad), for their continuous support and guidance
throughout my internship at Karvy Stock Broking Limited. I would like to thank college guide
Prof. Riddhi sanghvi from Noble Group of onstitutions & all the people who provided me the
facilities being required and conductive conditions for their summer internship project.

Preface

Education becomes more meaningful when its theoretical aspects are combined with the
practical experiences. This provides an opportunity to the student to improve their understanding
of the studies. Private sector is one of the fastest growing sectors in the country. After the
liberalization, the Private industry still holds vast opportunities for young and experienced
professionals. Among the Private Stock Broking Companies, Karvy Stock Broking Ltd. is the
key player and has been making efforts to improve efficiency and customer services. There are
many companies in the market which are providing the financial product like insurance, mutual
funds, Demat account services, general insurance, portfolio management services, wealth
management, gold coins, money changing, money transfers and the others. Including Demat
Account services Karvy Stock Broking Ltd. offers stock broking services, mutual fund services,
insurance, commodity, IPO services, gold coin exchange and foreign exchange services, Share
Registry, Mutual Fund Registry, and PAN Service below the single roof. Researchers are
fortunate enough to get the opportunity of my Summer Internship in the Karvy Stock Broking
Limited
Contents
History of stock broking ............................................................................................................................... 8

History of the Indian Stock Market - The Origin...................................................................................... 9

Pre-Independence Scenario - Establishment of Different Stock Exchanges........................................... 10

Post Independence Scenario ................................................................................................................... 11

Many more stock exchanges were established during 1980's, namely: .................................................. 12

What is Sensex? .......................................................................................................................................... 13

What is BSE? .............................................................................................................................................. 14

What is NSE? .............................................................................................................................................. 14

Type of market ............................................................................................................................................ 16

1. Primary Market ................................................................................................................................... 16

2. Secondary Market ............................................................................................................................... 16

3. The OTC Market ................................................................................................................................. 17

4. Third and Fourth Markets ................................................................................................................... 18

5. Bottom Line ........................................................................................................................................ 18

INTRODUCTION OF COMPANY ........................................................................................................... 19

STORY OF KARVY .............................................................................................................................. 21

MEANING OF KARVYS LOGO ......................................................................................................... 22

Vision of Karvy: ..................................................................................................................................... 23

Mission statement: .................................................................................................................................. 23

MANAGEMENT TEAM ..................................................................................................................... 26

WHAT IS KARVY ................................................................................................................................... 29

Karvy distribution network in India ........................................................................................................ 30

Facts about Karvy (As of Dec 2016) ...................................................................................................... 30

COMPANIES OF KARVY ........................................................................................................................ 31

ACHIEVEMENTS ..................................................................................................................................... 32
INFORMATION ABOUT KARVY MOBILE APP .............................................................................. 34

SWOT analysis of karvy ............................................................................................................................. 35

STRENGHT............................................................................................................................................ 35

WEAKN ESS:......................................................................................................................................... 36

OPPORTUNITY: .................................................................................................................................... 37

TREATS: ................................................................................................................................................ 37

Porters five force model of karvy ............................................................................................................... 38

Threat of New Entry ............................................................................................................................... 40

Bargaining Power of Buyer .................................................................................................................... 40

Threat of Substitution ............................................................................................................................. 41

Bargaining Power of supplier: ................................................................................................................ 41

Competitive Rivalry ................................................................................................................................ 41

Literature review ......................................................................................................................................... 42

INTRODUCTION TO IPO ......................................................................................................................... 49

PROCESS of IPO: ...................................................................................................................................... 51

IPO PRICING DIFFERENCES: ................................................................................................................ 52

UNDERPRICING: .................................................................................................................................. 52

OVERPRICING:..................................................................................................................................... 52

Type of issues ............................................................................................................................................. 53

Documents Required:.................................................................................................................................. 53

NEED OF THE STUDY: .......................................................................................................................... 54

OBJECTIVES OF STUDY ...................................................................................................................... 55

Research Methodology: ............................................................................................................................ 56

Methods of Data Collection: ................................................................................................................... 56

Research Design...................................................................................................................................... 56

Analysis of Data:..................................................................................................................................... 56
 Analysis Tools: ....................................................................................................................................... 56

Sample Size............................................................................................................................................. 56

Data Analysis ............................................................................................................................................. 57

FINDINGS AND CONCLUSION ........................................................................................................... 91

Finding from demographic ..................................................................................................................... 91

Other findings: ........................................................................................................................................ 91

RECOMMENDATIONS .......................................................................................................................... 93

BIBILOGRAPHY ..................................................................................................................................... 94

History of stock broking

The history of stock brokers can be traced back to the origins of the first stock exchange in 1602
at Amsterdam. Even before that brokers are said to have existed in France dealing with
government securities. The Amsterdam Stock Exchange was involved in buying and selling of
shares for the Dutch East India Company.

However, the first real stock exchange came up in Philadelphia in the United States during the
late 18th century. Later it was the New York stock exchange which saw a rise in its popularity.
Wall Street, as it was called, became the hub of brokerage activities. Earlier stock brokers were
largely unorganized, but later most of them joined hands to form institutes and organizations.
Till the 1980's stock broking services were used only by the wealthy class who could afford
them. Later with the advent of the Internet, stock broking became very easy. Thus, the price tag
on stock brokers lowered considerably and their services became available even to the common
man.
The stock broking duties are now mostly taken up by major organizations with the smaller
companies being absorbed by them. In India, too with increasing globalization the major
corporations are penetrating deeper into the society.

Stock markets refer to a market place where investors can buy and sell stocks. The price at which
each buying and selling transaction takes is determined by the market forces.

History of the Indian Stock Market - The Origin

One of the oldest stock markets in Asia, the Indian Stock Markets has a 200 years old history.

Year 1800 : East India Company was the dominant institution and by end of the
Century, business in its loan securities gained full momentum.

Year 1830 : Business on corporate stocks and shares in Bank and Cotton presses
Started in Bombay. Trading list by the end of 1839 got broader

Year 1840 : Recognition from banks and merchants to about half a dozen brokers

Year 1850 : Rapid development of commercial enterprise saw brokerage business

Attracting more people into the business

Year 1860 : The number of brokers increased to 60

Year 1860-61 : The American Civil War broke out which caused a stoppage of cotton
 Supply from United States of America; marking the beginning of the
"Share Mania" in India

Year 1862-63 : The number of brokers increased to about 200 to 250

Year 1865 : A disastrous slump began at the end of the American Civil War (as an
Example, Bank of Bombay Share which had touched Rs. 2850 could only
be sold at Rs. 87)

Pre-Independence Scenario - Establishment of Different Stock Exchanges

Year 1874 : With the rapidly developing share trading business, brokers used to
Gather at a street (now well known as "Dalal Street") for the purpose of
transacting business.

Year 1875 : "The Native Share and Stock Brokers' Association" (also known as
"The Bombay Stock Exchange") was established in Bombay

Year 1880 : Development of cotton mills industry and set up of many others

Year 1894 : Establishment of "The Ahmadabad Share and Stock Brokers'

Association"

Year 1900 : Sharp increase in share prices of jute industries in 1870's was followed
by a boom in tea stocks and coal
Year 1908 : "The Calcutta Stock Exchange Association" was formed.

Year 1920 : Madras witnessed boom and business at "The Madras Stock Exchange"
Was transacted with 100 brokers.
Year 1923 : When recession followed, number of brokers came down to 3 and the
Exchange was closed down

Year 1934 : Establishment of the Lahore Stock Exchange.

Year 1936 : Merger of the Lahore Stock Exchange with the Punjab Stock Exchange.

Year 1937 : Re-organization and set up of the Madras Stock Exchange Limited (Pvt.)
Limited led by improvement in stock market activities in South India with
establishment of new textile mills and plantation companies.

Year 1940 : Uttar Pradesh Stock Exchange Limited and Nagpur Stock Exchange
Limited was established

Year 1944 : Establishment of "The Hyderabad Stock Exchange Limited"

Year 1947 : "Delhi Stock and Share Brokers' Association Limited" and "The Delhi
Stocks and Shares Exchange Limited" were established and later on
merged into "The Delhi Stock Exchange Association Limited"

Post Independence Scenario

The depression witnessed after the Independence led to closure of a lot of exchanges in
the country. Lahore Stock Exchange was closed down after the partition of India, and later on
merged with the Delhi Stock Exchange. Bangalore Stock Exchange Limited was registered in
1957 and got recognition only by 1963. Most of the other Exchanges were in a miserable state
till 1957 when they applied for recognition under Securities Contracts (Regulations) Act, 1956.
The Exchanges that were recognized under the Act were:

1. Bombay
2. Calcutta
3. Madras
4. Ahmadabad
5. Delhi
6. Hyderabad
7. Bangalore
8. Indore

Many more stock exchanges were established during 1980's, namely:

Cochin Stock Exchange (1980)

Uttar Pradesh Stock Exchange Association Limited (at Kanpur, 1982)
Pune Stock Exchange Limited (1982)
Ludhiana Stock Exchange Association Limited (1983)
Gauhati Stock Exchange Limited (1984)
Kanara Stock Exchange Limited (at Mangalore, 1985)
Magadh Stock Exchange Association (at Patna, 1986)
Jaipur Stock Exchange Limited (1989)
Bhubaneswar Stock Exchange Association Limited (1989)
Saurashtra Kutch Stock Exchange Limited (at Rajkot, 1989)
Vadodara Stock Exchange Limited (at Baroda, 1990)
Coimbatore Stock Exchange
Meerut Stock Exchange

At present, there are twenty one recognized stock exchanges in India which does not include the
Over the Counter Exchange of India Limited (OTCEI) and the National Stock Exchange of India
Limited (NSEIL)
The functioning of stock broking in India was started in 1875.

The BSE is oldest stock broking of India.

History of Indian stocks trading starts with the 318 person taking membership in Stock Brokers
Association and Native Share, which is known by name as Bombay Stock Exchange (BSE).

What is Sensex?

The Sensex is an "index".

What is an index? An index is basically an indicator. It gives you a general idea about
whether most of the stocks have gone up or most of the stocks have gone down.
The Sensex is an indicator of all the major companies of the BSE.
The Nifty is an indicator of all the major companies of the NSE.
Sensex, otherwise known as the S&P BSE Sensex index, is the benchmark index of the
Bombay Stock Exchange (BSE).

It is composed of 30 of the largest and most actively-traded stocks on the BSE, providing
an accurate gauge of India's economy.
Initially compiled in 1986, the Sensex is the oldest stock index in India.
 Standard & Poor's (S&P) is the world's leading index provider and the foremost source of
independent credit ratings. Standard & Poor's has been providing financial market
intelligence to decision makers for more than 150 years.

What is BSE?
BSE= Bombay stock exchange

Bombay Stock Exchange founded by Premchand Roychand.

The Bombay Stock Exchange (BSE) is an Indian stock exchange located at Dalal Street, Kala
Ghoda, Mumbai (formerly Bombay), Maharashtra, India.

Established in 1875, the BSE is Asias first stock exchange, It claims to be the world's fastest
stock exchange, with a median trade speed of 6 microseconds, The BSE is the world's 11th
largest stock exchange with an overall market capitalization of more than $ 2 Trillion as of July,
2017. More than 5500 companies are publicly listed on the BSE. Of these, as of November 2016,
there are only 7,800 listed companies of which only 4000 trade on the stock exchanges
at BSE and NSE. Hence the stocks trading at the BSE and NSE account for only about 4% of the
Indian economy.

February 3, 2017 BSE become India's 1st listed Stock Exchange

January 9, 2017 Hon'ble Prime Minister of India, Shri Narendra Modi inaugurated India
International Exchange(IFSC) Ltd, India 1st International Exchange

What is NSE?
The National Stock Exchange of India Limited (NSE) is the leading stock exchange of India,
located in Mumbai.NSE was established in 1992 as the first demutualized electronic exchange in
the country.

NSE was the first exchange in the country to provide a modern, fully automated screen-based
electronic trading system which offered easy trading facility to the investors spread across the
length and breadth of the country.

National Stock Exchange has a total market capitalization of more than US$1.41 trillion, making
it the worlds 12th-largest stock exchange as of March 2016. NSE's flagship index, the NIFTY
50, the 51 stock index (50 companies with 51 securities inclusive of DVR), is used extensively
by investors in India and around the world as a barometer of the Indian capital markets.
However, only about 4% of the Indian economy / GDP is actually derived from the stock
exchanges in India.

NSE offers trading in the following segments:

Equities

Equities
Indices
Mutual Funds
Exchange Traded Funds
Initial Public Offerings
Security Lending and Borrowing Scheme

Derivatives

Equity Derivatives (including Global Indices like CNX 500, Dow Jones and FTSE )
Currency Derivatives
 Interest Rate Futures

Type of market

1. Primary Market

The primary market is where securities are created. It's in this market that firms sell (float) new
stocks and bonds to the public for the first time. For our purposes, you can think of the primary
market as the market where an initial public offering (IPO) takes place. Simply put, an IPO
occurs when a private company sells stocks to the public for the first time. The primary market is
also the market where governments or public sector institutions raise money through bond
offerings.

The important thing to understand about the primary market is that securities are purchased
directly from an issuing company.

2. Secondary Market

Secondary market refers to a place to a place where securities are traded in the exchange after
being initially offered to the public in the primary market.

For the general investor, secondary market provides an efficient platform for trading of securities
like, provides liquidity to convert their investments into cash.

While for the management of the company, the demand for their equity in the secondary market
will show how efficiently the company and its finance are being managed. Better the
performance of the company, the demand for its share by investors will also increase, thereby
enhancing the value of the investment.
In secondary market the role of intermediaries is also important.

The secondary market operates through two mediums.

1. over the counters market

2. Exchange trade market

3. The OTC Market

Over-the-counter (OTC) is a security traded in some context other than on a formal exchange
such as the New York Stock Exchange (NYSE), Toronto Stock Exchange or the NYSE MKT,
formerly known as the American Stock Exchange (AMEX).

The phrase "over-the-counter" can be used to refer to stocks that trade via a dealer network as
opposed to on a centralized exchange.

It also refers to debt securities and other financial instruments, such as derivatives, which are
traded through a dealer network.

BREAKING DOWN 'Over-The-Counter - OTC'

For many investors, there is little practical difference between OTC and major exchanges.
Improvements in electronic quotation and trading have facilitated higher liquidity and better
information. However, there are key differences between the transaction mediums. On an
exchange, every party is exposed to offers by every other counterparty, which may not be the
case in dealer networks. There is less transparency and less stringent regulation on these
exchanges," so unsophisticated investors take on additional risk and could be subject to adverse
conditions.
4. Third and Fourth Markets
Third market:

You might also hear the terms "third" and "fourth" markets. These don't concern individual
investors because they involve significant volumes of shares to be transacted per trade. These
markets deal with transactions between broker-dealers and large institutions through over-the-
counter electronic networks. The third market comprises OTC transactions between broker-
dealers and large institutions.

Fourth market:

The fourth market is made up of transactions that take place between large institutions. The main
reason these third- and fourth-market transactions occur is to avoid placing these orders through
the main exchange, which could greatly affect the price of the security. Because access to the
third and fourth markets is limited, their activities have little effect on the average investor.

5. Bottom Line

Although not all of the activities that take place in the markets we have discussed affect
individual investors, it's good to have a general understanding of the market's structure. The way
in which securities are brought to the market and traded on various exchanges is central to the
market's function. Just imagine if organized secondary markets did not exist - you'd have to
personally track down other investors just to buy or sell a stock, which would not be an easy
task.

In fact, many investment scams revolve around securities that have no secondary market,
because unsuspecting investors can be swindled into buying them. The importance of
markets and the ability to sell a security (liquidity) is often taken for granted, but without a
market, investors have few options and can get stuck with big losses. When it comes to the
markets, therefore, what you don't know can hurt you, and in the long run, a little education
might just save you some money.

INTRODUCTION OF COMPANY
 STORY OF KARVY

One fateful evening in the summer of 1982, 5 young men who worked for a renowned chartered
accountancy firm decided that it was time they struck out on their own to create an enterprise
that would someday become an iconic name in the financial services space.

They came from ordinary middle class backgrounds.

They had two assets:

1. One was their education

2. The other an unquenchable desire to succeed.

They had a lot stacked against them: the environment was not conducive to entrepreneurship;
technology was not fully supportive, financial markets were largely unregulated; they were based
out of Hyderabad while most key players in the financial world were in Mumbai or other metros
and the wolf was at the door. The odds seemed insurmountable.

These remarkable young mens Never say die approach held them in good stead over the
years. They stuck to their dreams, burnt the midnight oil, embraced technology and made it work
for them and through sheer dint of determination, eventually overcame all obstacles.

First came the registry business, followed by broking, and the rest became a lesson for every
young individual to emulate.

Karvy corporate was established in the year 1983 and is now headed by Mr. C Parthasarathy as
Chairman. The group has more than 16,000 employees, spanning 900 offices in about 400 cities
and towns. In the mid-1990s, Karvy forayed into stock broking and advisory businesses. Later, in
the early 2000s, Karvy Corporate ventured into commodity trading. With the introduction of
currency trading, Karvy corporate is also in the business of Forex trading. In September 2008,
the group launched an online trading and investment portal offering an extensive range of
financial products and solutions across different classes.

KARVY is a premier integrated financial services provider and ranked among the top five in the
country in all its business segments. It services over 16 million individual investors in various
capacities and provides investor services to over 300 corporate, comprising who is who of
Corporate India.

It is a member of all three:-

National Stock Exchange (NSE)

Bombay Stock Exchange (BSE)
Hyderabad Stock Exchange (HSE)

Karvy utilized its experience and superlative expertise to capitalize on its strengths and better its
service, innovate and provide new ones. It diversified in the process and thus evolved as Indias
premier integrated financial service enterprise.

Karvy has been a customer centric company since its inception. It offers a single platform
servicing multiple financial instruments in its bid to offer complete financial solutions to the
varying needs of both corporate and retail investors, where an extensive range of services are
provided with great volume-management capability.

KARVY covers the entire spectrum of financial services such as Stock broking, Depository
Participants, Distribution of financial products - mutual funds, bonds, fixed deposit, equities,
Insurance Broking, Commodities Broking, Personal Finance Advisory Services, Merchant
Banking & Corporate Finance, placement of equity, IPOs, among others. Karvy has a
professional management team and ranks among the best in technology, operations and research
of various industrial segments.

MEANING OF KARVYS LOGO

A: The arrows in the A, in the KARVY logo, endorse our commitment towards services
organization.
|||: The three vertical strips represent our relentless diversification into newer avenues of wealth
creation.

The color blue: Creates an account with expertise, precision technology and efficiency, making
our products and solution instantly acceptable.

Represent our vastness, stability, claim, and unity and resolve as we march forth into the horizon.

Vision of Karvy:
To achieve & sustain market leadership, Karvy shall aim for complete customer satisfaction, by
combining its human and technological resources, to provide world class quality services. In the
process Karvy shall strive to meet and exceed customer's satisfaction and set industry standards.

Mission statement:
Our mission is to be a leading and preferred service provider to our customers, and we aim to
achieve this leadership position by building an innovative, enterprising , and technology driven
organization which will set the highest standards of service and business ethics.

KARVY CREDO
Our Clients, Our Focus

Clients are the reason for our being

Teamwork
None of us is more important than all of us
Responsible Citizenship

A social balance sheet is as rewarding as a business one.

Integrity
Everything else is secondary
 PROMOTERS
Mr.C.Parthasarathy
Chairman & Managing Director

Mr. C. Parthasarathy is the Chairman and Managing Director of the diversified financial
services Karvy group.
Karvys entire history is a case study of turning adversity into opportunity.
CP is a chartered accountant by qualification, whose entrepreneurial energy drove him to
co-found Karvy in 1983 with a less-than-modest capital of Rs 150,000.
Over the years CPs vision and leadership skills have helped the group navigate through
the turbulent times with a strong sense of purpose and clarity of thought.
CP is one of the pioneers of financial inclusion. Under his leadership Karvy has won
numerous industry awards and accolades. He also is an independent Director in many
listed companies.

Mr.M.Yugandhar
Managing Director
Mr. M Yugandhar, Managing Director is a founder member of the KARVY Group.

He is a Fellow Member of the Institute of Chartered Accountants of India and has varied
experience in the field of financial services spanning over 30 odd years.
Yugandhar has helped position and build a strong brand for the group in the registry and other
financial services businesses. The registry business of Karvy is one of its flagship businesses and
with the collaboration with Computershare has grown to become the largest registrar in India for
over two decades. Yugandhar has played a key role in building strong relationships with public
sector banks and other PSUs which have helped Karvy win some important mandates from some
of Indias renowned companies.

Karvy under his guidance has helped create the equity cult and substantially built retail investor
wealth. He is an Independent Director on the board of several reputed companies.

Mr.M.S.Ramakrishna
Director

Mr. M S Ramakrishna, Director, founder member of KARVY GROUP, he is the orchestrator of

technology initiatives such as the call center in the service of the customer.

Mr. Ramakrishna was a member of the Hyderabad Stock Exchange and has more than 30 years
of experience in the financial services arena. He has helped KARVY diversify into the field of
medical transcription leveraging on the company's core competency of transaction processing.

He is an Independent Director on the board of several reputed companies.

 MANAGEMENT TEAM

Mr.V.Mahesh
Managing Director Karvy Data Management

Mr.V.Ganesh
CEO Karvy Computershare

Mr.SushilSinha
Whole time Director - Karvy Comtrade
Mr.P.B.Ramapriyan
Vice President & Head - Financial Product Distribution

Mr.RajivR.Singh
Vice President & Business Head - Karvy Stock Broking Limited

Mr.J.Ramaswamy
Group Head - Corporate Affairs
Mr.DeepakGupta
Group Head - HR

Mr.G.KrishnaHari
Group Head - Finance
 WHAT IS KARVY

The Karvy Group is today a well diversified conglomerate. Its businesses straddle the entire
financial services spectrum as well as data processing and managing segments. Since most of its
financial services were retail focused, the need to build scale and skill in the transaction
processing domain became imperative. Also during stressed environment in the financial
services segment, the non financial businesses bring in a lot of stability to the groups businesses.

Karvys financial services business is ranked among the top-5 in the country across its business
segments. The Group services over 70 million individual investors in various capacities, and
provides investor services to over 600 corporate houses, comprising the best of Corporate India.

The Group offers stock broking, depository participant, distribution of financial products
(including mutual funds, bonds and fixed deposits), commodities broking, personal finance
advisory services, merchant banking & corporate finance, wealth management, NBFC (loans to
individuals, micro and small businesses), Data management, Forex & currencies, Registrar &
Transfer agents, Data Analytics, Market Research among others.

Karvy prides itself on remaining customer centric as all times through a combination of leading
edge technology, Professional management and a wide network of offices across India.

Karvy is committed to its quest as an Equal Opportunity Employer and believes in the rights for
differently-abled persons. We have over 12% employees who are challenged in some form in
one of our prominent businesses.

.
Karvy distribution network in India
Karvy is present in all over India. In all over India 100 branches is available. Following are
those:

Facts about Karvy (As of Dec 2016)

Number of Offices across India: 460+

Presence in Number of States: 25
 Investment Options: Equities & Derivatives, Commodities, Currency, Mutual Funds, SIP,
Bond & Deposits, IPOs and Tax free bonds.
Other products offered: Demat, PAN, TIN, TAN, Wealth Management
Customer care is available on phone on Saturday & Sundays between 10 AM to 5 PM.

COMPANIES OF KARVY
1. Karvy Stock Broking LTD
2. Karvy Comtrade LTD
3. Karvy Capital LTD (Formerly Karvy Capital Private LTD)
4. Karvy Investment Advisory Services LTD (Formerly known as Karvy Insurance
Broking LTD)
5. Karvy Holdings LTD
6. Karvy Middle East LLC
7. Karvy Realty (India) LTD
8. Karvy Financial Services LTD
9. Karvy Insurance Repository LTD
10. Karvy Forex & Currencies Private LTD
11. Karvy Consultants LTD
12. Karvy Computershare Private LTD
13. Karvy Data Management Services LTD
14. Karvy Investor Services LTD
15. Karvy Insights LTD
16. Karvy Analytics LTD
17. Karvy Solar Power LTD
18. Karvy Global Services LTD
19. Karvy Global Services Inc,
ACHIEVEMENTS

Among the top 5 stock brokers in India (4% of NSE volumes)

India's No. 1 Registrar & Securities Transfer Agents

Among the top 3 Depository Participants

Largest Network of Branches & Business Associates

Among top 10 Investment bankers

Largest Distributor of Financial Products

Adjudged as one of the top 50 IT uses in India by MIS Asia

Fully Fledged IT driven operations

 Types of services

Financial services Non financial services

Equity stock broking Data management services

Depository participation services International business

Distribution of financial services Market research

Currency derivatives Analytics

Wealth management services

Karvy fortune

Portfolio management services

Investment banking

Commodity broking

Reality services

Registry services

Forex & currency market

Insurance repository
INFORMATION ABOUT KARVY MOBILE APP
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charge.
 SWOT analysis of karvy

What is a 'SWOT Analysis?

SWOT analysis is a process that identifies an organization's strengths, weaknesses, opportunities

and threats. Specifically, SWOT is a basic, analytical framework that assesses what an entity
(usually a business, though it can be used for a place, industry or product) can and cannot do, for
factors both internal (the strengths and weaknesses) as well as external (the potential
opportunities and threats). Using environmental data to evaluate the position of a company, a
SWOT analysis determines what assists the firm in accomplishing its objectives, and what
obstacles must be overcome or minimized to achieve desired results: where the organization is
today, and where it may be positioned in the future.

S= Strength

W=Weakness

O=Opportunity

T=Threat

STRENGHT:
 1. Experience players in market: karvy is 35 year old in the market. They have good
experience of trading. They are doing good market analysis for their customers to
give them advice.
2. Brand image: karvy have a good brand image in the market because they provide
best service of trading. They keep update their system with change in technology.
3. Customer oriented: karvy is one of stock broking institute who care for their
customers.
4. Known for transparent functioning: karvy is very transparent in trams of back
office work. They give daily, monthly or yearly trade report to their customers.
5. Large retail customers: karvy has a large customer.
6. Good location: karvy is select vary particular while they plan to establish their new
branch.

WEAKN ESS:

1. Work inefficiency: in karvy employee are served with best equipment &
facilities. But some time employees are lazy and neglected their responsibility.
2. Weak management in performance appraisal: management of karvy is very
weak. Because nobody in the care for their work. And head of department also not
take care for monthly work.
3. Cost structure: karvy is costly in their regular charges of brokerage & holding
charges.

Cost structure of karvy is as follows:

Intraday 0.0.3

Delivery base 0.30

BUT share khan cost is less than karvy.

Intraday 0.020
 Delivery base 0.20

OPPORTUNITY:

1. New technology: karvy have a great & advance technology like KARVY
MOBILE APPLICATION. So they have to use this application on right
2. International expansion: karvy should expand in global market also. Out of
India karvy have a great scope of expansion because of out of India people
have great knowledge about share market & investments.
3. Awareness: according to survey only 1% or 2% people invest in stock market.
So karvy have a good opportunity to covers rest of area.

TREATS:

1. Change in market situation: sometime bad economy affects the whole

business & services. At that time investor may not invest in share. So it
would be threat for karvy.
2. Intense competition: New entrances in markets are the big competitors for
karvy. Because they come in the market after analyses the whole market.
3. Government regulation: if regulation of stock broking is change by
government, it would be threat for the stock broking.
4. Changes in taxes: biggest threat for karvy is taxation. Because newly
implemented GST had a great impact on Karvys business.
5. Substitute products: karvy provide all the services that is provided by other
company. So they have maintained best services to sustain in the market.
Porters five force model of karvy
Five forces model was created by M. Porter in 1979 to understand how five key competitive
forces are affecting an industry.

The stronger competitive forces in the industry are the less profitable it is. An industry with low
barriers to enter, having few buyers and suppliers but many substitute products and competitors
will be seen as very competitive and thus, not so attractive due to its low profitability. is an
analysis tool that uses five industry forces to determine the intensity of competition in an
industry and its profitability level.
[1]
This model helps marketers and business managers to look at the balance of power in a market
between different types of organizations, and to analyses the attractiveness and potential
profitability of an industry sector.

Its a strategic tool designed to give a global overview, rather than a detailed business analysis
technique. It helps review the strengths of a market position, based on five key forces.

Porters Five Forces works best when looking at an entire market sector, rather than your own
business and a few competitors.

To apply Porters Five Forces, you need to work through these questions for each area:

Force 1: Threat of New Entry

Force 2: Buyer Power

Force 3: Threat of Substitution

Force 4: Supplier Power

 Force 5: Competitive Rivalry

Threat of New Entry

If new businesses can be easily started up in your sector without substantial investment - then
this is a threat. The Internet has made this a reality in many sectors, especially publishing.

Zerodha

Trade deal

Trade boon

Upstox

Fyers

Samco

SAS Online

Bargaining Power of Buyer:

Where there are fewer buyers, they often control the market.

Bargaining power of buyer is high in stock market because for customer or buyer lots of
substitute institute are available.

Customer can switch over from one institute to another if they not find any problem with
existing institute.

They can bargain in terms of brokerage.

 Switching cost is very law.

Threat of Substitution
If there are available alternatives then the threat of substitution increases.

Rule & regulation of SEBI is more favor to customers. If now more regulation is fame for
in favor of customers than it is not beneficial for the stock broking company.

For example: in early time one transaction if cost customers around 5 6 rs. But now a
day it only cost 0.02 or 0.03rs.

Bargaining Power of supplier:

Markets where there are few suppliers means the suppliers retain the power

In stock broking industry bargaining power of supplier is always low. Because customer power
is more, they have a more substitute institute available.

Because switching cost of customers is very high for the company.

Competitive Rivalry
Markets where there are few competitors are attractive but can be short-lived. These are highly
competitive markets with many companies chasing the same work reduce your power in the
market.

Following are the competitive firm of stock broking:

Motilal oswal

Sharekhan

Zerodha
Angle broking

RKVS

Upstox

Trade plus

HDFC securities

Edelweiss

Literature review

Literature review: 1 A STUDY ON PERFORMANCE OF INDIAN IPOS\2010-2011\K.

HEMA DIVYA
Companies raise capital in the primary Market by way of an initial public offer, rights issue or
private placement. An Initial Public Offering (IPO) is one through which 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 issuers securities. IPOs
deepen the market, Diversify investors portfolios, reduce volatility in stock prices, and bring
domestic investors Money into the market and attract Foreign Institutional Investor funds.
The main objectives of the study include
To study the methodology of Book-building Issue and Fixed price Issue.
To analyses the performance of the IPOs in the market during the financial year 2010-
2011

Literature review: 2STUDY ON THE PERFORMANCE OF INITIAL PUBLIC

OFFERING OF COMPANIES LISTED IN NSE INDIA & Gulf Base GCC,
Index\.Dr.S.Poor, Aalaa J.Haji, Deepha.B\2013

Initial public offerings are gaining importance worldwide as an important source of funds for the
companies to accelerate their growth by using the mobilized funds to implement innovative
strategies as well as considered as an important tool for investment since it offers huge profits on
the listing day. In this study the short run performance of the companies is analyzed to
understand the anomaly of abnormal returns as well long term performance to analyze the
performance of the IPOs in the long run. The period of study is from Jan 2013 Dec 2014. The
sample for the study includes 9 companies listed in National Stock Exchange of India pertaining
to the study period. The results of this study will throw light on the performance of the IPOs
which are majorly considered as a speculative tool and hence aid in better decision making for
the investors. The findings will also help conclude if IPO can be a long term investment tool or a
speculative opportunity to earn booming profits.

The main objective of the study was to evaluate the performance of IPOs in India. Keeping the
above in consideration, the present study has been conducted with the following objectives
1. To find out the performance of Indian IPOs for short period, i.e. from the date of offer to the
public to the date of their first day of trading after listing on stock exchange.
2. To measure the long term performance of Indian IPOs including and excluding initial returns.
3. To analyzed whether the returns are more in short term or long term for better conclusion

http://indianresearchjournals.com/pdf/IJMFSMR/2013/July/4.pdf

Literature review: 3A REVIEW OF INITIAL PUBLIC OFFERINGS (IPOs) IN INDIA

AN EMPIRICAL STUDYD\Dr.Pramod Kumar Upadhyay, Pankaj Kumar Tripathi\
December 2016

Primary Market of a country plays vital role in the growth and development of capital market.
Investors have lots of expectations from initial public offerings. IPOs are assumed as a high
return avenue. Present study attempts to explore about trends and returns of Indian New Issue
Market (NIM). The study is conducted with the help of secondary data from various published
source. In this study an attempt has been made to understand the behavior of IPO during various
time frames. Study shows that there is a significant variations in returns of IPOs in short run as
well as long run. During the study it is observed that Indian Initial Public Offering has both
Under pricing and overpricing character. Keywords: IPO, NIM, under pricing, Overpricing
Introduction.

Literature review: 4 Initial Performances of IPOs in India: Evidence from 2010-14\ Sweety
Shah , Disha Harshadbhai Mehta\2010-2014

In this paper, we studied listing day performance pertaining to 113 IPOs in India during January,
2010 to December, 2014, listed in NSE India. We found that there is, on the average,
significantly positive return on the listing day. The market adjusted abnormal returns of all
sample IPO companies were 7.19 %. It is observed that IPOs are initially underpriced. We have
applied t-test to verify the returns and mean initial return of 7.19 % and proved that average
returns are significantly lower also compare to historical returns of IPO. Regression model has
been used to analyses the relationship between degree of under pricing with independent
variables such as issue price, issue size, issue oversubscription and market index return. The
result of regression analysis shows that there was no significant relationship between the degree
of under pricing and explanatory variables except oversubscription of issue. The study suggests
that investors can make their investment in new issues as IPOs are underpriced in initial days.

https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2708995

Literature review:5 Initial Public Offerings (IPOs): A Boon or a Bane?\ Jigna

Trivedi, Bindiya Soni\December 2013

IPOs are the most favored tool adopted by corporate to raise money from the general public. An
IPO is the first sale of stock by formerly a private company. The revolutionary reform which
took place in the Indian stock market was fair price discovery of IPOs through the book building
mechanism. The present paper tries to comprehend the concept of the book built issue, its
importance and advantages over the Fixed Price Regime. The paper also tries to bring forth the
short term return available to the subscribers of IPOs. The concept of listing gains and intraday
gains are studied with respect to short term investors. IPOs issued in the duration of five years,
starting from 2006 to 2010 were taken as a base for computing the return and for commenting on
the performance of IPOs. Overall, the reasons for high and low performance of IPOs are
discussed in the paper. As a part of the study of pre - subscription of IPOs, the paper highlights
the importance of IPO grading to be used as a tool to learn about the fundamentals of the
company. The paper highlights the quantum of listing gains derived by the investors on listing of
the IPOs.

http://www.indianjournaloffinance.co.in/index.php/IJF/article/view/72362

Literature review: 6Under pricing of Initial Public Offerings in Indian Capital

Market\Neeta Jain and, C Padmavathi

The Underwriters Monopoly Power Hypothesis: Baron (1982) explains two reasons of under
pricing of IPOs. One is the information asymmetry between issuer and the investment banker.
An investment banker knows better about the capital market than the issuer. Therefore the issuer
offers incentive to investment banker with the price which is lower than the first best offer price,
for revealing its superior information about the capital market. This lower price is an incentive
for the investment banker who can sell the issue easily. Thus information asymmetry between
the issuer and the banker causes under pricing of new issue. Another reason for under pricing of
IPOs is that the issuers are more uncertain about the market demand of the unseasoned issue than
for the seasoned issue. Therefore their need for investment bankers information about the
market condition increases in the new issues and hence the issuers willingness to accept under
pricing for new issues is high.

http://www.vikalpa.com/pdf/articles/2012/volume-37-1-Pages-from-83-95.pdf

Literature review: 7 Studying Earnings Management in Initial Public Offerings (IPOS)

and Its Impact on IPO Pricing in India\Alok Pande\March 2009 Bangalore

E-mail: Alokp05@iimh.emet.in

https://iimb.ac.in/research/sites/default/files/WP.IIMB_.284.pdf

Earnings Management by fins has been recognized by a stream of literature (Teoh et aI, 1998) as
a major contributory factor to the short run over performance and long run under performance of
Initial Public Offerings (IPOs).This paper outlines the methodology and the key research
questions to be adopted for studying Earnings Management for Indian IPOs. The study tries to
outline how to empirically test the relationship of the accounting concept of Earnings
Management with the Finance concept of IPO under pricing. In particular it seeks to find out
whether there is evidence in the Indian markets about earnings management during IPOs and if
so then the impact of this phenomenon on the first day prices of the shares offered during IPOs in
India.

Literature review: 8Journal of Emerging Market Finance\ Nader Naifar\December, 2011

Explaining IPOs under pricing in the Tunisian Market

This article tests four hypotheses (signaling, market tendency, market characteristics and the ex
ante uncertainty and information asymmetry) to explain the initial public offerings (IPOs) under
pricing in the Tunisian market. Most of the empirical studies focus mainly on developed markets
and only a few studies analyze the climates of IPOs in emerging markets. The Tunisian business
environment is motivating because of the institutional reforms that have been successfully
implemented since 1994. The study analyses all the Tunisian IPOs from March 1992 to April
2008 in order to explain under pricing in IPOs. The findings show that IPOs under pricing is
mainly explained by the signaling and the market characteristics hypotheses. The phenomenon of
under pricing in IPOs is important for portfolio managers who are expected to make optimal
(value-maximizing) financing choices. Also, results of this study provide insight into the
business environment in the case of the Tunisian market.

Literature review: 9 Valuation of IPOs

Benveniste and Spindt (1989) find that under writers try to resolve the information
asymmetry problem between the firm and the investors by providing an incentive to the
investors to reveal their private information about the firm.

Kim and Ritter (1999) in their study of 190 firms find that under writers forecast the
next years earnings numbers and multiply them with PE ratios of comparable firms in the
industry to get the approximate price of the IPO. However they also found that PE ratios
using historical earnings numbers do not give accurate results whereas when forecasted
earnings numbers are used then the valuation is much more accurate.

Literature review: 10 Allocation mechanisms

The allocation mechanisms are specified by the regulators in different countries. Loughran,
Ritter and Rydqvist (1994) find 3 main categories across countries-Auctions, Fixed price offers
and Book Building. Sherman (2005) finds that Book building is a superior mechanism for selling
IPOs rather than auctions.

Literature review: 11Under pricing of Initial Public Offerings: A Literature

Review\Supriya Katti, B.V. Phani\2016

Abstract Rocks [1] theory ascertains information asymmetry as a primary reason to answer
Why New Issues are Underpriced? Theoretical construct of this seminal work is based on
information asymmetry between various classes of investors. Empirical manifestation of this
theoretical explanation is based on considering different proxy measures to quantify the
information asymmetry as perceived by various researchers over the past three decades. The
growing IPO literature also explained under pricing with the help of agency theory, signaling,
behavioral theories etc. Empirical research has identified various determinants of IPO under
pricing. The influence of various factors predominantly depends upon country specific
regulations, market microstructure and price discovery mechanism. Although many factors have
justified the degree of under pricing, controlling for these factors does not completely eliminate
the degree of under pricing. The justification of residual under pricing through these factors has
limitations in terms of failure to completely explain the IPO under pricing. The paper reviews
different factors presented in the extant literature that influence the price discovery mechanism
of initial public offerings (IPO) in various economies. We conclude that the degree of under
pricing is dynamic and various markets forces interact simultaneously in observing the variation
in pricing the new equity issues. This paper points out the significance of regulatory framework
in explaining the degree of IPO under pricing.

Literature review: 12 Under pricing of Initial Public Offerings in India: A Comparison of

the Book-Building and Fixed-Price Offerings\A. K. Mishra

This study attempts to provide new evidence on the first-day IPO market performance using a set
of 235 IPOs newly listed between 1 April 1997 and 31 March 2008 on Indian stock exchanges.
The study examines how a change in the institutional arrangements that govern the pricing of
IPOs, from the traditional fixed price approach to the building of a book, affects the level of
under pricing. It also extends the literature on under pricing by comparing under pricing under
the two pricing methods. The study adds new evidence to the existing literature on IPOs in a
significant manner. Firstly, in consistence with the 'hot issue markets' theory (Ibbotson and Jaffe,
1975; Ritter, 1984), it highlights that on the main board of the Indian Exchange, IPO under
pricing increased in 2007. The empirical findings indicate a significant mean positive under
pricing (14.45 %); nonetheless, 60% of IPOs in the sample are initially overpriced. Secondly, in
contrast with Giudici and Paleari (1999), the study finds no evidence that there is difference in
under pricing between fixed price and book built offers
 INTRODUCTION TO IPO

Initial Public Offering: The first sale of stock by a company to the public.

Companies offering an IPO are sometimes new, young companies, or sometimes companies
which have been around for many years but are finally deciding to go public.

IPOs are often risky investments, but often have the potential for significant gains.

IPOs are often used as a way for a young company to gain necessary market capital.

A company goes for an IPO mainly for funding needs or non-funding needs. The following are
the reasons why a company would go for an IPO:
For Funding Needs:
Funding Capital Requirements for Organic Growth
Expansion through Projects
Diversification
Funding Global Requirements
 Funding Joint Venture and Collaborations needs
Funding Infrastructure Requirements, Marketing Initiatives and Distribution Channels
Financing Working Capital Requirements
Funding General Corporate Purposes
Investing in businesses through other companies
Repaying debt to strengthen the Balance Sheet
Meeting Issue Expenses
For Non-funding Needs
Enhancing Corporate Stature
Retention and incentive for Employees through stock options
Provide liquidity to the shareholders

Issuer Company Issue Open Issue Close Offer Price

(Rs.)

Security and Intelligence Services (India) Jul 31, 2017 Aug 2, 2017 805/- to 815/-
Ltd IPO

Cochin Shipyard Ltd IPO Aug 1, 2017 Aug 3, 2017 424/- to 432/-

Salasar Techno Engineering Ltd IPO Jul 12, 2017 Jul 17, 2017 108/-

Au Financiers (India) Limited IPO Jun 28, 2017 Jun 30, 2017 358/-

GTPL Hathway Limited IPO Jun 21, 2017 Jun 23, 2017 170/-

Central Depository Services (India) Jun 19, 2017 Jun 21, 2017 149/-
Limited IPO
Eris Life sciences Limited IPO Jun 16, 2017 Jun 20, 2017 603/-

Tejas Networks Limited IPO Jun 14, 2017 Jun 16, 2017 257/-

http://www.chittorgarh.com/ipo/ipo_list.asp

What is an IPO?
Initial Public Offer (IPO), is the first sale of shares by the privately owned company to the
public. The companies going public raises funds through IPO's for working capital, debt
repayment, acquisitions, and a host of other uses.

Investor can apply for IPO Stocks by filling an IPO Application Form. These forms are usually
available with stock brokers for free. Investor can also apply for IPO Stocks online through
Online Stock Brokers like ICICI bank, Share Khan, and Reliance Money.

Chittorgarh.com, India's No. 1 IPO investment portal provides recent IPO information from
primary stock market. IPO Tools available on this website includes IPO Allotment Status, IPO
Bidding Information, IPO Ratings, IPO Grading, IPO Reviews, and Grey Market Premiums of
IPO's, IPO News and IPO Performance Tracker.

PROCESS of IPO:
1. Company nominates lead merchant bankers.
2. Disclose of securities to be issued & price band for biding.
3. Appointment of syndicate members.
4. Bidding process
5. Process normally for 5 days
6. Bids have to entered within the specific price band
 7. On the closure of the process, the book runner evaluates the price levels.
8. At least the book runner & the issue decide the final price.
9. Allocation of securities is made to the successful bidder.
10. Rest gets refund order.

IPO PRICING DIFFERENCES:

It is generally noted, that there is a large difference between the price at the time of issue of an
Initial Public Offering (IPO) and the price when they start trading in the secondary market. These
pricing disparities occur mostly when an IPO is considered hot, or in other words, when it
appeals to a large number of investors. An IPO is hot when the demand for it far exceeds the
supply.
This imbalance between demand and supply causes a dramatic rise in the price of each share in
the first day itself, during the early hours of trading.

UNDERPRICING:
The pricing of an IPO at less than its market value is referred to as Under pricing. In other
words, it is the difference between the offer price and the price of the first trade.
Historically, IPOs have always been underpriced. Underpriced IPO helps to generate
additional interest in the stock when it first becomes publicly traded. This might result in
significant gains for investors who have been allocated shares at the offering price. However,
under pricing also results in loss of significant amount of capital that could have been raised had
the shares been offered at the higher price

OVERPRICING:
The pricing of an IPO at more than its market value is referred to as Overpricing. Even
Overpricing of shares is not as healthy option. If the stock is offered at a higher price than
what the market is willing to pay, then it is likely to become difficult for the underwriters to
fulfill their commitment to sell shares. Furthermore, even if the underwriters are successful in
selling all the issued shares and the stock falls in value on the first day itself of trading, then it is
likely to lose its marketability and hence, even more of its value.
 Type of issues

Documents Required:
A company coming out with a public issue has to come out with an Offer Document/
Prospectus.
An offer document is the document that contains all the information you need about the
company. It will tell you why the company is coming is out with a public issue, its
financials and how the issue will be priced.
The Draft Offer Document is the offer document in the draft stage. Any company
making a public issue is required to file the draft offer document with the Securities and
Exchange Board of India, the market regulator.
If SEBI demands any changes, they have to be made. Once the changes are made, it is filed with
the Registrar of Companies or the Stock Exchange. It must be filed with SEBI at least 21 days
before the company files it with the ROC/ Stock Exchange. During this period, you can check it
out on the SEBI Web site.

Red Herring Prospectus is just like the above, except that it will have all the
information as a draft offer document; it will, however, not have the details of the price
or the number of shares being offered or the amount of issue. That is because the Red
Herring Prospectus is used in book building issues only, where the details of the final
price are known only after bidding is concluded.
Players:
Co-managers and advisors
Underwriters
Lead managers
Bankers
Brokers and principal brokers
Registrars
Stock exchanges

NEED OF THE STUDY:

This study is needed because now days every companies wants to extent their business and they
wants to go for public. Every investor also looking towards different IPOs to invest in large
amount in beginning to retain the more earnings in future. As a citizen or investor also, if
anybody wants to know about the economic position of companies as well as countries,
everybody must be have some basic knowledge about stock market and other related
information.

This study is needed because

 To know the facts of stock market fluctuations during IPOs issues.
To understand the IPOs and Stock market basics.
To know about the stock market indices.
To know about investors mindset during IPOs issues.
To know why companies wants to go for public.

This project is needed because; all of the above options are never ended. As a financial student,
as a investor, as a citizen and everybody must be having some knowledge to understand the
things. So researchers project will cover the all things.

OBJECTIVES OF STUDY

To get knowledge about the investors Philosophy to choose a particular IPO to invest or
their awareness.
To know about the reason behind investing in IPO
Investors prefers towards type and price of IPO
Purpose behind IPO investment.
Investors preference towards recent IPO investors.
Problem related after IPO investment.
 Research Methodology

Research Methodology is a way to solve the problem scientifically and systematically. It

includes not only the Research Methods but also the comparison of the logic behind the method
we use in the context of our research study and explain why we are using a particular method
and why not others.

Methods of Data Collection:

Primary Data: It is collected by Questionnaire and goggle form of questionnaires.
Secondary Data: These are taken by existing literatures, magazines and govt.
periodicals.
Research Design:

Research design is a conceptual structure within which research is conducted. It constitutes the
blueprint for collection, measurement and analysis of data. This study is basically on Descriptive
Research.

Analysis of Data:
The term analysis refers to the computation of certain measures along with searching for
patterns of relationship that exist among data groups.

Analysis Tools:
Tabulation
Graphs

The Basis of Sampling: -

In the case of survey of small investors, Convenience Sampling is chosen.

Sample Size

Small investors 100

Population Area- Rajkot, Junagadh

 Data Analysis

Part: A =Demographic questions

Que.1 Gender

Female 15%
male 85%

15%

MALE
FEMALE

85%

Interpretation:

From the above chart we can say that 85% investors are male and rests of the 15 % are female.
Que.2 Age

Below 20 5%

20 year to 25 year 72%

25 year to 30 year 25%

Above 30 year 7%

7% 5%

16%
BELOW 20
20YEAR TO 25YEAR
25YEAR TO 30YEAR
ABOVE 30YEAR

72%

Interpretation:

From the above graph we can say that most of the IPO investors are between age of 20 to 25
year. But only 5% are investors of age below 20 year.
Que.3 Education

Graduate 47%
Post graduate 43%
PH.D 3%
others 7%

3%
7%

GRADUATE
47% POST GRADUATE
PH.D
43% OTHERS

Interpretation:

From the above graph we can say that most of the IPO investors are Graduate and Post Graduate

In percentage of 47% and 43%.

Que.4 Occupation
Business 19%
Private sector 42%
Public sector 4%
Students 28%
others 7%

OCCUPATION

7%
19%
BUSINESS
PRIVATE SECTOR
28%
PUBLIC SECTOR
STUDENT

42% OTHERS

4%

Interpretation:

From the above graph we can say that most of the IPO investors are between age of 20 to 25
year. But only 5% are investors of age below 20 year.
Que.5 Family income

Below 20000 31%

20000 to 30000 36%
30000 to 40000 12%
Above 40000 21%

21%
31%
BELOW 20000
20000 TO 30000
12% 30000 TO 40000
ABOVE 40000

36%

Interpretation:

From the above graph we can say that 36% of the IPO investors income is 20000 to 30000.
 Part: B =Main section

Que.6 Where do you invest your money?

Stock market 34%

Mutual funds 25%
Insurance 8%
Commodity 1%
Real estates 14%
others 18%

18%
stock market
34% mutual fund
insuance
14%
commodity
real esteate
1% 8% others
25%

Interpretation:

From the above graph we can say that 34% investors are invest in stock market.

Only 25% are invest in mutual fund and 1% in commodity.

Que.7 Do you invest in IPO?

Yes 72%
No 28%

28%

YES
NO

72%

Interpretation:

From the above chart we can say that 72% people invest in IPO.
Que.8 In which types of IPO do you invest?

Main stream 26%

SME 12%
Both 62%

26%

MAIN STREAM
SME
BOTH
62% 12%

Interpretation:

From the above graph we can say that 62% IPO investors are invest in both type of IPO.
Que.9 which type of price of IPO do you prefer for investments?

Fixed price 19%

Book biding 19%
Both 62%

19%

FIXED PRICE
BOOK BIDING
19% BOTH
62%

Interpretation:

From the above graph we can say that 62% IPO investors are invest in both type of price of IPO.
Que.10 What do you see before investing in IPO?

PERFORMANCE BACKGROUNG 30%

SECTORE PRFORMANCE 24%
PERFORMANCE OF EXISTING COPMANY 23%
PREMIUM AMOUNT 23%

performance
23% background
30%
sectore performance

performance of
existing companies
23%
primum amount
24%

Interpretation:

From the above graph we can say that investors look at the all section before investing in IPO
above all the facts considers by investors at equal level.
Que.11 What are the purpose behind IPO investments?

Investments 71%
Speculation 29%

29%

INVESTMENT
SPECULATION

71%

Interpretation:

From the above graph we can say that 71% IPO investors are invest for investment remaining are
for speculation.
Que.12 What are the sources of information you use for IPO?

Brokers 27%
Friends 23%
Television 4%
News papers 17%
Internet 27%

27% 29%
brokers
friends
television
news paper
internet
17%
23%
4%

Interpretation:
From the above graph there are 3 major factors from investors get information. They are internet,
brokers and frieds.

Que.13 Do you consider valuation of shares before investing in IPO?

Yes 88%
No 12%

12%

YES
NO

88%

Interpretation:
From the above graph we can say that 88% IPO investors are go for grading before investing in
IPO.

Que.14 Factor influenced for IPO.

14.1

Strongly agree 7
Agree 12
Neutral 2
Disagree 0
Strongly disagree 5
 1.Goodwill of Company
14
12
12
10
8 7
6 5 Series1
4
2
2
0
0
STRONGLY AGREE NEUTRAL DISSAGREE STRONGLY
AGREE DISSAGREE

14.2

Strongly agree 2
Agree 13
Neutral 5
Disagree 0
Strongly disagree 4
 2.Market share of company
14 13

12

10

6 5 Series1
4 4
4

2
0
0
STRONGLY AGREE NEUTRAL DISSAGREE STRONGLY
AGREE DISSAGREE

14.3

Strongly agree 4
Agree 10
Neutral 7
Disagree 0
Strongly disagree 5
 3.corporate profile of company
12
10
10

8 7

6 5
4 Series1
4

2
0
0
STRONGLY AGREE NEUTRAL DISSAGREE STRONGLY
AGREE DISSAGREE

14.4

Strongly agree 2
Agree 5
Neutral 8
Disagree 6
 Strongly disagree 5

4.Board membership
9
8
8
7
6
6
5 5
5
4
Series1
3
2
2
1
0
STRONGLY AGREE NEUTRAL DISSAGREE STRONGLY
AGREE DISSAGREE

14.5

Strongly agree 2
Agree 9
Neutral 8
 Disagree 3
Strongly disagree 5

5.Management quality of company

10 9
9 8
8
7
6 5
5
4 3 Series1
3 2
2
1
0
STRONGLY AGREE NEUTRAL DISSAGREE STRONGLY
AGREE DISSAGREE

14.6

Strongly agree 4
Agree 9
Neutral 4
Disagree 3
Strongly disagree 6

6.Key shareholder
10 9
9
8
7 6
6
5 4 4
4 Series1
3
3
2
1
0
STRONGLY AGREE NEUTRAL DISSAGREE STRONGLY
AGREE DISSAGREE
14.7

Strongly agree 5
Agree 7
Neutral 9
Disagree 2
Strongly disagree 3

7.Comments in the media

10 9
9
8 7
7
6 5
5
4 Series1
3
3 2
2
1
0
STRONGLY AGREE NEUTRAL DISSAGREE STRONGLY
AGREE DISSAGREE
Que.15 How long do you want to hold your IPO investments?

For 1 day 1%
Below 6 months 59%
For 1 year 20%

20% 21%

for 1 day
below 6 months
for 1 year

59%

Interpretation:

From the above chart we can say that 59% people hold IPO for below 6 months.
Que.16 In which IPO do you invests from the following?

Tejas network ltd 8%

Eris science ltd 9%
GTPL Hathway ltd 7%
CDSL 30%
AU Finance 34%
Salasar Techno ltd 12%

12% 8%

9%
Tejas network ltd
Eris life science ltd
7%
GTPL Hatchway ltd
CDSL
34%
AU Finance ltd
Salasar Techno ltd
30%

Interpretation:

From the above chart we can say that recently 34% investors invest in AU finance IPO and 30%
CDSL
Que.17 How much do you earn profit?

2000 to 5000 35%

5000 to 10000 19%
More than 10000 46%

35%
2000 TO 5000
46%
5000 TO 10000
MORE THAN 10000

19%

Interpretation:

From the above we can say that in recently issued IPO, gives more than 10000 return to
investors.
Que.18 Hold IPO for long term is beneficial. Do you agree or not?

Strongly agree 0
Agree 0
Neutral 3
Disagree 9
Strongly disagree 9

10
9
8
7
6
5
4 Series1

3
2
1
0
STRONGLY AGREE NEUTRAL DISSAGREE STRONGLY
AGREE DISSAGREE

Interpretation:

From the above chart we can say that investors are strongly disagree to hold IPO for long term.
Que.19 Investments in IPO is beneficial for new investors. Do you agree or not?

Strongly agree 30
Agree 19
Neutral 3
Disagree 19
Strongly disagree 0

35

30

25

20

15 Series1

10

0
STRONGLY AGREE NEUTRAL DISSAGREE STRONGLY
AGREE DISSAGREE

Interpretation:

From the above chart we can say that investors are strongly agree that IPO is beneficial for new
investors.
Que.20 Is it better to invest in IPO or to pick same stock from listing company?

Strongly agree 1
Agree 6
Neutral 10
Disagree 21
Strongly disagree 1

25

20

15

10 Series1

0
STRONGLY AGREE NEUTRAL DISSAGREE STRONGLY
AGREE DISSAGREE

Interpretation:

From the above chart we can say that investors are disagree to invest in IPO. Because of less
return.
Que.21 How do you see risk associated with IPO?

Strongly agree 16
Agree 13
Neutral 10
Disagree 24
Strongly disagree 2

30

25

20

15
Series1
10

0
STRONGLY AGREE NEUTRAL DISSAGREE STRONGLY
AGREE DISSAGREE

Interpretation:

From the above chart we can say that investors are neutral about risk related to IPO.
Que.22 How do you see return associated with IPO?

Extremely High 10
High 31
Neutral 13
Negative 0

RETURN ASSOCIATED WITH IPO

35

30

25

20

15 Series1

10

0
EXTRMLY HIGH HIGH NETURAL NEGATIVE

Interpretation:

From the above chart we can say that investors believe that IPO gives high return.
Que.23 What do you do if IPO will be listed in discount?

Hold for profit 20%

Sale it with loss 80%

20%

HOLD FOR PROFIT

SALE IT WITH LOSS

80%

Interpretation:

From the above graph we can say that 80% people hold for IPO if it is open in discount.

And wait for it to turn in profit.

Que.24 What difficulties did you face after applied for IPO?

Refund problem 4%
Delay in crediting 4%
Share allotment problem 29%
Amount blocking 9%
None of them 54%

4% 4% REFUND PROBLEM

DELAY IN CREDITING
SHARE TO YOUR DMAT
29%
SHARE ALLOTMENT
PROBLEM
54%
AMOUNT BLOCKING
PROBLEM
NONE OF THEM
9%

Interpretation:

From the above graph we can say that 54% investors have no problem regarding after applying
in IPO. But still 29% investors have a problem of share allotment.
Que.26 According to you which IPO will be better in near future?

SIS 50%
Cochine shipyard 22%
Other than these two 28%

28%

SIS
50% COCHINE SHIPYARD
OTHER THESE TWO

22%

Interpretation:

From the above chart we can say that 50% investors think SIS is better in near future.
Que.27 What are the reason behind not investing in IPO?

Lack of awareness 42%

Fear of losing money 12%
Due to wrong rumors 0%
Personal reasons 46%
Other reason 0%

0%

LACK OF AWARENESS
42% FEAR OF LOSING MONEY
46%
DUE TO WRONG RUMORS
PERSONAL REASONS
OTHERS

12%
0%
Interpretation:

From the above chart we can say that 46% investors have personal reason behind not investing in
IPO and 42% people have lack of awareness about IPO..

Que.28 Do you plan to invest in IPO in near future?

Yes 33%
No 15%
May be 52%

33%
YES
NO
52%
MAY BE

15%
Interpretation:

From the above chart we can say that 52% investors may be plan for IPO investment.

FINDINGS AND CONCLUSION

From the forgoing analysis followings were the findings:

Finding from demographic:

1. Out of 100 investors of IPO 85% are male investors.

2. Out of 100 investors of IPO 72% are of age between 20year to 25year.
3. Out of 100 investors of IPO most of investors are Graduate and Post Graduate, in
percentage 47% and 43%.
4. Out of 100 most of IPO investors are work in private sector or they are students (23%)
5. Out of 100 investors 36% of IPO investors income is 20000 to 30000

Other findings:
1. Out of 100 investors 62 invest in both type of IPO
2. 62% investors invest in both type of price of IPO
3. For the investment of IPO investors considers all the factors but 30% prefers performance
of back ground.
 4. 71% investors invest in IPO for investment purpose.
5. 88% investors go for grading before investing IPO
6. In all the factors for IPO investment two are most important
1. Goodwill of company
2. Market share
7. 59% investors hold IPO for below 6 months
8. Most of investors invest in following two IPOs.
1. AU finance =34%
2. CDSL = 30%
9. Holds IPO for long term, people are strongly disagree with it.
1. Goodwill of company

2. Market share

10. Investors are strongly agreed that IPO is beneficial for IPO.

11. According to investors IPO is less risky.

12. Return is also high in investors.

13. If IPO will be open in discount 80% hold IPO for turn it in profit.

14. 54% of investors have no problem after applying for IPO. But 29% have problem of
allotment.

15. 50% believe that SIS if better IPO in near future. And Cochine shipyard also.

16. 42% people are not invest in IPO because if lack of awareness.
RECOMMENDATIONS
Initial return given by the IPO should not be treated as indication of its success or failure
in the long run.

Investors of the secondary market must take part in the primary markets as it has been
seen that IPO activity in Indian Stock Market has been tremendously growing. And IPO
is the safest stock market investment.

Over subscription should be treated as indication of success of the issue.

Whole amount for shares applied should be received in advance from QIBs just like
retail investor so that they can quote real worth of the company in terms of money that
they are ready to pay for it.

Learning:

From the following internship I learn,

How stock broking company work every day.

From my topic I learn that IPO is less risky investment to earn money in short term.

young generation prefer IPO investment more because they want to earn good money in
short duration with less investment.

I also learn about share market, mutual fund and trading.

BIBILOGRAPHY
www.ipohome.com/hie-gerieooie/htm
www.essortment.com/gteorerui-100%dkfjdkei.pdf
www.investopedia.com/reserchpaper.froee-heofdvl%fkldks/
www.ipoavenue.com/ariownnipo-progress&arojsrei/5%akd2e32/
www.moneycontrol.com/reliance/ipo/areoi/rechares=kadkf=akdfd&
www.wikipedia.com/ipo$alfjdkfjd5wieirnaZ?oadjfe=jjfjf.jpg
www.moneycentral.hoovers.com
www.bullishindian.com
www.rupya.com
www.investorguide.com
www.hdil.in/

Annexure: