A

PROJECT REPORT
ON
A STUDY ON IPO’S IN INDIA
AT
SHAREKHAN
A project report submitted in Fulfilment of the requirement for
the Award of the degree of
MASTER IN BUSINESS ADMINISTRATION (MBA)
SUBMITTED BY
AYUSH VERMA
ROLL NO:
1157-23-672-005

UNDER THE GUIDENCE

OF

SAI AMULYA P (ASSISTANT PROFESSOR)

PRAGATI MAHAVIDYALAYA PG COLLEGE
(Affiliated to Osmania University)
HYDERABAD
2023-2025
 A
PROJECT REPORT
ON
A STUDY ON IPO’S IN INDIA
AT
SHAREKHAN
A project report submitted in Fulfilment of the requirement for
the Award of the degree of
MASTER IN BUSINESS ADMINISTRATION (MBA)
SUBMITTED BY
AYUSH VERMA
ROLL NO:
1157-23-672-005

UNDER THE GUIDENCE

OF

SAI AMULYA P (ASSISTANT PROFESSOR)

PRAGATI MAHAVIDYALAYA PG COLLEGE
(Affiliated to Osmania University)
HYDERABAD
2023-2025
 DECLARATION

I hereby declare that this Project Report " A STUDY ON IPO’ IN INDIA”
in “SHAREKHAN”, submitted by me to the department of business
management, O.U., Hyderabad is the Bonafide undertaken by me
and it is not submitted to any other university or institution for the
award of any degree diploma/certificate are published any time
before.

Signature Of the Student

Ayush Verma
Roll No: 1157-23-672-005
 ABSTRACT

The Initial Public Offering (IPO) is a critical milestone for companies seeking to raise capital and gain
access to public markets. This study explores the dynamics of IPOs in India, examining trends,
determinants, and the regulatory framework that influences their performance. It provides an overview
of the process involved in launching an IPO, the role of key stakeholders, and the challenges
companies face in the Indian market. The research also highlights the impact of market conditions,
investor sentiment, and policy changes on the success of IPOs. Through analysis of case studies and
financial data, the study identifies key factors that contribute to successful IPOs in India and offers
insights into how companies can optimize their strategies to attract investors. This research aims to
contribute to the understanding of IPO mechanisms and their implications for both companies and the
broader financial ecosystem in India.
 ACKNOWLEDGEMENT

The accomplishment of this project has been enriching and a learning experience. I
therefore take the opportunity to express my sincere thankful to all those who have
made it possible for me to accomplish this project.

I am extremely thankful to the director DR. Y. KRISHNA MOHAN NAIDU Head

of Pragati Mahavidyalaya PG College, Koti for giving me the privilege to present
this report.

I thank my guides for their constant support throughout the completion of the project.
Finally, I would like to thank my parents and friends for their inputs and support.

Signature Of the Student

AYUSH VERMA
Roll No: 1157-23-672-005
 TABLE OF CONTENT
CHAPTER DESCRIPTION PAGE
NO
CHAPTER 1 1.1 Introduction
1.2 Objectives of the Study
1.3 Need of the Study
1.4 Scope of the Study
1.5 Research Methodology
1.6 Limitations of the Study

CHAPTER 2 2.1 Review of Literature

2.2 Review of Topic
CHAPTER 3 3.1 Company profile
3.2 Industry profile
CHAPTER 4 4.1 Data analysis and interpretation

CHAPTER 5 5.1 Findings

5.2 Conclusion
5.3 Suggestions
Bibliography
 CHAPTER – I
INTRODUCTION
1.1 INTRODUCTION

Initial Public Offering (IPO) is the first public offering of equity shares or convertible securities
by a company, which is followed by the listing of a company’s shares on a stock exchange. In
other words, it refers to the first sale of a company’s common shares to investors on a public
stock exchange, with an intention to raise new capital. The most important objective of an IPO
is to raise capital for the company. It helps a company to tap a wide range of investors who
would provide large volumes of capital to the company for future growth and development.
Company going for an IPO stands to make a lot of money from the sale of its shares which it
tries to anticipate how to use for further expansion and development. The company is not
required to repay the capital and the new shareholders get a right to future profits distributed
by the company.

Investing in IPO has its own set of advantages and disadvantages. Where on one hand, high
element of risk is involved, if successful, it can even result in a higher rate of return. The rule
Is higher the risk, higher the returns. The company issues an IPO with its own set of
management objectives and the investor looks for investment keeping in mind his own
objectives. Both have a lot of risk involved. But then investment also comes with an advantage
for both the company and the investors. The significance of investing in IPO can be studied
from 2 viewpoints – for the company and for the investors.

MEANING:

An Initial Public Offering (IPO) is a process that allows a private company to become publicly
traded by selling shares of its stock to the public for the first time. The company uses the funds
raised to expand, pay off debt, and other purposes. Investors who buy shares in an IPO become
shareholders and have the potential to benefit from the company's growth.
DEFINATION:

IPO stands for Initial Public Offering. Initial Public Offering (IPO) can be defined as the
process in which a private company or corporation can become public by selling a portion of
its stake to the investors.

An IPO is generally initiated to infuse the new equity capital to the firm, to facilitate easy
trading of the existing assets, to raise capital for the future or to monetize the investments
made by existing stakeholders.

The institutional investors, high net worth individuals (HNIs) and the public can access the
details of the first sale of shares in the prospectus. The prospectus is a lengthy document that
lists the details of the proposed offerings. Once the IPO is done, the shares of the firm are
listed and can be traded freely in the open market. The stock exchange imposes a minimum
free float on the shares both in absolute terms and as a ratio of the total share capital.

TYPES OF IPO

There are two common types of IPO. They are-

1) FIXED PRICE OFFERING

Fixed Price IPO can be referred to as the issue price that some companies set for the initial
sale of their shares. The investors come to know about the price of the stocks that the
company decides to make public. The demand for the stocks in the market can be known
once the issue is closed. If the investors partake in this IPO, they must ensure that they pay
the full price of the shares when making the application.

2) BOOK BUILDING OFFERING

In the case of book building, the company initiating an IPO offers a 20% price band on the
stocks to the investors. Interested investors bid on the shares before the final price is decided.
Here, the investors need to specify the number of shares they intend to buy and the amount
they are willing to pay per share.
The lowest share price is referred to as the floor price, and the highest stock price is known as
the cap price. The ultimate decision regarding the price of the shares is determined by
investors’ bids.

IPO ADVANTAGES AND DISADVANTAGES

Investing in IPOs comes with both merits and demerits. Here are a few of the benefits and
drawbacks you must know before making your investment decision.

BENEFITS OF INVESTING IN AN IPO

Investing in an initial public offering withholds the below-mentioned advantages-

• Increased Recognition

When weighing the advantages and cons of an IPO, this good factor comes out on top. It
assists management in gaining more reputation and credibility by becoming a trustworthy
organization.

Companies that are publicly traded are typically more well-known than their private
competitors. In addition, a successful process attracts media attention in the financial sector

• Access to Capital

A corporation may never receive more capital than it raises by going public. A company's
growth trajectory might be substantially altered by the substantial cash available. An
ambitious company may enter a new period of financial stability following its IPO.

This decision can help R&D, hire new employees, establish facilities, pay off debt, finance
capital expenditures, and purchase new technologies, among other things.

• Diversification Opportunity

When a corporation becomes public, its shares are traded on an exchange amongst investors.
This increases investor diversity because no single investor owns a majority of the company's
outstanding stock. As a result, purchasing stock in a publicly listed company can help
diversify investment portfolios.

• Management Discipline

Going public encourages managers to prioritize profitability over other objectives, such as
growth or expansion. It also makes contact with shareholders easier because they can't hide
their issues.

• Third-Party Perspective

When a company goes public, it gains an independent perspective on its business model,
marketing strategy, and other factors that could hinder it from becoming profitable.
1.2 OBJECTIVE OF THE STUDY
➢ The goal of this project is to evaluate whether investing in IPOs for the long term is a profitable
strategy.
➢ This project aims to compare the returns from the Primary and Secondary Markets within the
same industry to determine which market offers higher profitability.
➢ The project will also explore the extent to which IPOs in India are underpriced.
➢ This project provides insights into the best-performing industries over the last five years, based
on returns over different time periods.
➢ The objective is to compare the returns from Public Sector and Private Sector IPOs to determine
which type is safer for investment.
➢ This project will offer an analysis of investor behavior, specifically focusing on Share khan’s
approach to IPO investments.
1.3 NEED OF THE STUDY

This project analyzes the performance of IPOs over the past five years to provide valuable
insights for Share khan, a leading broking firm. It helps investors make informed decisions by
assessing IPO returns over various time periods and comparing returns from the Primary and
Secondary Markets. The study also focuses on industry-specific IPO performance, identifying
trends within similar sectors and highlighting the best- and worst-performing industries.
Additionally, IPOs are analyzed by Public and Private Sector categories to understand return
patterns in each sector. A survey on investor behavior offers insights into decision-making and
compares expectations with actual market outcomes. Overall, the project aims to optimize
investment strategies, identify better opportunities, and improve past investment decisions for
more successful future ventures.
1.4 SCOPE OF THE STUDY
The scope of this study encompasses an in-depth analysis of IPO performance over the past
five years, focusing on returns from Secondary Markets. It explores the impact of industry-
specific trends, comparing the performance of Public and Private Sector IPOs. By examining
various aspects of the IPO market, the study aims to provide valuable information to investors,
helping them make informed decisions, identify profitable opportunities, and improve their
investment strategies for the future.
1.5 RESEARCH METHODOLOGY
Research Design
Data collection
The data collection for project “A Study on Indian IPO’s” has been carried out with
utmost accuracy keeping in mind the importance of the project.
For the purpose of data collection, two different sources were adopted for the study:
• Primary Sources
• Secondary Sources
In order to collect the data both Primary and Secondary research was conducted. For
Secondary Data various online websites, journals, research papers & academic books
were referred in order to conduct proper analysis. The data on IPO’s was collected for
different time frames and for different industries for last 5 years. The data was then
compared with other sites to confirm its reliability.
Secondary data was worked upon in excel sheet to get important findings and
information regarding the IPO’s. Mostly the data has been represented in the form of
tables in the Secondary Analysis part for easier understanding.
For Primary Research an online survey was conducted on social networking sites,
clients of Share khan. The survey was made in Google Documents. The survey was also
circulated in my prior company’s. The purpose of the survey was to know the investors
behavior while investing in an IPO. Both nominal and ordinal data was collected from
the survey. There were 90 respondents of different age groups that filled the survey.
The data was collected within 45 days. The survey results were shown with the help
of graphs, pie charts and cross tabulation to make analysis easy to comprehend. All the
responses collected from investors were then compared with the findings from
Secondary Data in order to find some correlation between investor expectations &
actual results.
SAMPLING METHODS:
The sampling method adopted was Non-Probability Sampling, only those individuals
having Demat accounts or those who are active traders were allowed to be the
respondents.
DATA ANALYSIS:
The analysis of Secondary data was done by calculating returns of 240 IPOs in different
time frames. The data has been represented in tabular form for easier understanding and
comparison. The analysis has also been done using trends line to represent the returns
at different time periods.
The survey results have been applied with Chi Square Test of Independence to find out
the whether the Returns expected and Years of Experience are dependent on the type of
IPO chosen by the investors. Chi Square test of Independence was applied to find the
link between two variables of the sample. The nominal data has been represented by pie
charts while ordinal data by graphs and cross tables.
1.6 LIMITATIONS OF THE STUDY
➢ The study relies on publicly available data on IPOs in India, which may not always be
complete or up-to-date, potentially affecting the accuracy of the analysis.
➢ Some sectors of the Indian economy may not be fully represented in the study,
potentially omitting significant insights from those industries.
➢ The investor survey conducted may have a limited sample size or demographic, which
might not be fully representative of the broader investor population in India.
➢ The study may not fully account for external factors specific to the Indian market,
such as regulatory changes, government policies, or economic trends that influence
IPO performance.
➢ As the analysis is based on publicly accessible data, private or confidential
information, which could offer deeper insights into the IPO market in India, is
excluded.
 CHAPTER – II
REVIEW OF LITERARTURE
1. Title: Performance of IPOs in Indian Stock Market: A Post-Listing Perspective

Author(s): S. Bhatia, R. Jain

Journal Name: Journal of Financial Research

Year: 2020

Abstract: The study "Performance of IPOs in Indian Stock Market: A Post-Listing

Perspective" by S. Bhatia and R. Jain, published in 2020, examines the post-listing

performance of 100 IPOs listed on the National Stock Exchange (NSE) between 2015 and

2019. It finds that IPOs generally underperform market indices in the long term. This

underperformance is particularly evident in sectors like real estate and pharmaceuticals. The

study emphasizes that market timing and promoter credibility significantly influence IPO

performance. Market timing refers to the conditions under which an IPO is launched, while

promoter credibility relates to the reputation and track record of the company's leadership.

These factors impact investor trust and confidence, affecting post-listing stock prices. The

research suggests that despite initial gains, the long-term performance of IPOs often lags

behind broader market growth. It highlights the need for careful consideration of sectoral

dynamics and external factors when evaluating IPOs. The study ultimately shows that IPO

success is influenced not just by initial market conditions but also by the sustained credibility

and performance of the company and its promoters.

2. Title: Determinants of IPO Success in India: An Empirical Study

Author(s): M. Singh, A. Verma

Journal Name: International Journal of Financial Studies

Year: 2021

Abstract: This paper investigates the key factors that influence the success of Initial Public

Offerings (IPOs) in the Indian market from 2010 to 2020. The authors focus on firm size,

financial health, and market sentiment as the primary determinants that impact the

performance of IPOs. It highlights that larger firms, with a stronger financial position, are

more likely to attract investor interest and succeed in their IPO ventures. This is because such

companies are perceived as less risky and have a proven track record, which boosts investor

confidence.

The financial health of the company, including its profitability, debt levels, and overall

financial stability, plays a significant role in determining the success of an IPO. Companies

with solid financials are seen as more sustainable and have a higher chance of performing

well in the long run after listing. This makes them more attractive to potential investors, who

are looking for opportunities with lower risk and better prospects for growth.

Market sentiment, or the prevailing economic and market conditions, is another critical factor

in determining IPO success. In a favorable economic environment with strong market growth,

IPOs tend to generate more investor enthusiasm, leading to higher subscription levels and

better post-listing performance. Conversely, in times of market downturns or economic

uncertainty, even strong companies may struggle to attract investor interest.

3. Title: IPO Pricing and Retail Investor Participation in India

Author(s): L. Roy, N. Nair

Journal Name: Journal of Emerging Market Finance

Year: 2022

Abstract: This research examines the factors influencing retail investor participation in

Initial Public Offerings (IPOs) in India, focusing particularly on the pricing mechanisms and

promoter backing. The study highlights that fair pricing is crucial in attracting retail

investors, as they are more likely to participate when they perceive the IPO price to reflect

the company’s true value. Overpriced IPOs may deter participation due to concerns over

potential losses, while underpriced offerings can raise questions about the company’s worth

and long-term viability.

In addition to fair pricing, the research emphasizes the importance of strong promoter

backing in enhancing retail subscriptions. A reputable and trusted promoter can significantly

increase investor confidence, as retail investors often rely on the credibility of the promoter

when deciding whether to participate in an IPO. Promoter credibility serves as a reassurance,

especially for those lacking the expertise to assess the financial health and prospects of the

company.

The study also addresses the challenge of financial literacy among retail investors, which can

hinder their participation in IPOs. Many retail investors may lack the knowledge to properly

evaluate IPOs, leading to poor investment decisions. The research suggests that targeted

financial education initiatives are necessary to bridge this gap, equipping retail investors with

the tools and understanding needed to make informed decisions and participate effectively in

the IPO process.

4. Title: The Role of Lead Managers in Indian IPO Pricing

Author(s): K. Agarwal, R. Joshi

Journal Name: Global Finance Journal

Year: 2023

Abstract: This study investigates the role of lead managers in determining IPO pricing in

India, focusing on the period from 2015 to 2022. The research reveals that lead managers

tend to prioritize institutional investors over retail investors, often leading to aggressive

pricing strategies. This approach is largely due to institutional investors' larger investment

capacity and ability to absorb significant portions of IPO shares. Consequently, this can result

in retail investors facing overpriced IPOs, which may lead to lower participation rates and

potential losses.

The findings suggest that lead managers, driven by their relationships with institutional

investors, may sometimes overlook the interests of retail investors. This imbalance in focus

may hinder the broader participation of retail investors, who typically invest in smaller

quantities and are more sensitive to pricing. The study highlights the need for greater

accountability and transparency from lead managers in the pricing process to ensure a more

equitable distribution of IPO shares and benefits between institutional and retail investors.

In conclusion, the authors recommend that lead managers adopt a more balanced approach

when setting IPO prices, taking into account the interests of both institutional and retail

investors. This would help in fostering a fairer and more inclusive IPO market, where retail

investors are not sidelined due to overly aggressive pricing strategies that prioritize large

institutional investors.
5. Title: Impact of Macroeconomic Variables on Indian IPO Activity

Author(s): N. Kapoor, P. Venkatesh

Journal Name: Indian Journal of Economics and Development

Year: 2024

Abstract: This study investigates the relationship between macroeconomic variables and IPO

activity in India from 2015 to 2023, focusing on key factors such as GDP growth, inflation,

and interest rates. It finds that positive GDP growth encourages a higher volume of IPOs, as it

signals a robust economy. However, inflation and rising interest rates tend to negatively

impact IPO pricing and volume, as these factors create uncertainty in the market, making it

more challenging for companies to price their offerings attractively.

The research also highlights the importance of economic stability in fostering a healthy IPO

market. When the economy is stable, both issuers and investors feel more confident, leading

to a greater willingness to participate in IPOs. On the other hand, volatility in macroeconomic

indicators, such as fluctuating inflation or unstable GDP growth, discourages IPO activity.

Companies may delay or cancel their IPO plans during uncertain times, while investors may

become more cautious, reducing demand for new shares.

In conclusion, the study emphasizes the critical role of macroeconomic conditions in shaping

IPO activity in India. Stable and predictable economic environments encourage more IPOs

and greater investor participation, while volatility and uncertainty have the opposite effect.

The findings suggest that policymakers and market regulators should carefully monitor and

manage these macroeconomic variables to support a conducive environment for IPOs.

.
 CHAPTER – III
INDUSTRY PROFILE
&
COMPANY PROFILE
INDUSTRY PROFILE:

INTRODUCTION
In order to understand the volatility of the capital market since liberalization and its impact on
investors, it is essential to grasp the profile of the stock market and the role of regulatory
authorities in protecting investors. The objective of this chapter is to provide this
understanding. This chapter is designed to offer a brief outline of the current position and status
of the stock market in India. It focuses on the recent developments in both the primary and
secondary markets, the most vital segments of the Indian stock market. The chapter will discuss
stock exchanges, which have gained increasing importance in recent decades as a source of
funds for the corporate sector. They now play a crucial role in mobilizing savings and
enhancing capital formation. The infrastructure and regulatory developments made by the
authorities, aimed at making the market more investor-friendly, will also be discussed.
The rest of the chapter proceeds as follows: Section presents the positioning of capital markets
in the financial market structure. Section describes the recent developments in the primary
market. Section explains the recent developments in the secondary market. Section presents
the infrastructure and regulatory developments by the regulatory authorities, and Section
concludes the chapter.

Capital Market Positioning in the Financial Market Structure

The growth of an economy depends on the rate of savings and investments, and financial
markets promote economic growth. Banks and securities markets are two competing
mechanisms that channel savings into investments. The securities market outperforms banks
in terms of allocation efficiency, as it channels savings into investments with the potential to
yield higher returns. The securities market allows a person to diversify their savings among
various investments, reducing risk and increasing the likelihood of long-term overall gains.
The stock market plays a crucial role in a market-driven economy. It is the segment of the
capital market where shares and stocks of companies are bought and sold. To most people, the
stock market refers to the market provided by stock exchanges. However, the stock market is
more than just a marketplace created by stock exchanges. The business on stock exchanges
involves dealing in existing or secondary stocks and shares. It provides a mechanism through
which outstanding stocks and shares are traded. Since only secondary stocks and shares are
traded through stock exchanges, this marketplace is referred to as the secondary market. The
stock market has another important segment known as the primary market. This is where new
shares are bought and sold. When a company issues new shares, it enters the primary market.
The primary market acts as the "conduit through which new capital or funds are accepted."
Stock markets are often equated with securities markets, but they are not identical. Stock
markets deal only with stocks and shares, while the securities market, in addition to stocks and
shares, also handles other categories of securities such as corporate bonds, government
securities, and various types of debt securities. Therefore, stock markets are just one segment
of the broader securities market.
The securities market fosters economic growth to the extent that it:

• Augments the quantities of real savings and capital formation from any given field of
national income,
• Raises the productivity of investments by improving the allocation of investible funds,
• Increases net capital inflow from abroad,
• Reduces the cost of capital.
Formally, the securities market provides a link between savings and preferred
investments across entities, time, and space. It mobilizes savings and channels them
through securities into preferred enterprises.
A figure is presented below (Exhibit 2.1) to clearly depict the position the stock market
occupies in the financial system of a market economy.

Stock Broking & Financial Services Industry Profile (India)

1. Overview of the Industry:

• Market Size: The Indian stock broking industry has witnessed significant growth over
the last two decades. With a large number of retail investors entering the stock market,
the industry is experiencing a boom in trading volumes.
• Regulating Bodies: The Securities and Exchange Board of India (SEBI) is the primary
regulatory body overseeing the functioning of the Indian stock markets and financial
services sector.
• Key Segments:
o Equity Trading
o Derivatives & Commodities Trading
o Mutual Funds
o Wealth Management & Portfolio Management Services
 o Online Trading Platforms

2. Key Trends in the Industry:

• Shift to Digital Trading: The stock broking industry is increasingly shifting toward
digital platforms with the rise of online and mobile trading. Apps and websites have
made it easier for individual investors to access markets.
• Retail Investor Participation: There has been a surge in retail investor participation,
especially post-2020, driven by easy access to markets through online platforms, low-
cost trading options, and increasing awareness.
• Low-Cost Discount Brokers: Discount brokers like Zerodha and Upstox are
disrupting the traditional broking model by offering low-cost trading solutions, which
has forced traditional brokers like Share khan to adapt by improving their technology
and services.
• Regulation & Compliance: The industry is highly regulated, and brokers must comply
with SEBI rules, market regulations, and tax laws. This has led to an increase in the use
of automation and AI to manage compliance and risk.

3. Competitive Landscape:

• Major Players:
o Zerodha
o Upstox
o ICICI Direct
o HDFC Securities
o Share khan
o Angel One
o Kotak Securities

ZERODHA

• Zerodha, founded in 2010 by Nithin Kamath and Nikhil Kamath, has established itself
as the largest retail stock broker in India, with over 6 million active clients. Known
for its disruptive flat-fee pricing model of ₹20 per trade, Zerodha has revolutionized
the Indian brokerage space. Its flagship trading platform, Kite, is popular for its user-
 friendly interface and advanced features, catering to both beginners and experienced
traders. Zerodha ’s business model has been instrumental in reducing brokerage costs
for retail investors, and it has diversified into other fintech ventures such as Coin for
mutual funds and small case for thematic investing. The company’s educational
platform, Varsity, is another key offering, aiming to educate and empower investors
to make informed decisions. In 2023, Zerodha continues to lead the discount broking
industry with a focus on low-cost services, technological innovation, and financial
literacy.

UPSTOX

• Upstox, founded in 2012 by Ravi Kumar, Varun Sridhar, and Nithin Kamath (who
also co-founded Zerodha), has emerged as one of the prominent discount brokers in
India. The platform offers zero brokerage on equity delivery trades and ₹20 per order
for intraday and F&O trades, making it attractive to cost-conscious investors. In 2023,
Upstox continues to cater to over 4 million active users and has become known for its
easy-to-use, robust trading platforms such as Upstox Pro Web and Upstox Pro
Mobile. The company has also attracted significant investments from high-profile
investors like Ratan Tata and Tiger Global. Apart from offering equity trading,
Upstox has expanded its services into mutual funds and ETFs, positioning itself as a
holistic investment platform. With continuous product innovation and an emphasis on
customer experience, Upstox is well-placed to capitalize on India’s growing retail
investment market.

ICICI DIRECT

• ICICI Direct, founded in 2000 as a subsidiary of ICICI Bank, has been a leading full-
service broker in India for over two decades. The platform offers a comprehensive
range of services including equity trading, derivatives, mutual funds, insurance, and
loans, and integrates seamlessly with ICICI Bank’s services. In 2023, ICICI Direct
continues to hold a strong position in the Indian brokerage market, leveraging its
extensive research and analysis to help clients make informed investment decisions.
The platform is known for its user-friendly interface and in-depth research reports,
providing a variety of tools for traders and investors. The company has been
expanding into robo-advisory services to meet the evolving needs of younger, tech-
 savvy investors. With its solid foundation in retail banking and brokerage services,
ICICI Direct remains one of the most trusted names in the industry.

HDFC SECURITIES

• HDFC Securities, established in 2000 as a subsidiary of HDFC Bank, is another major

player in India’s broking sector. Offering a wide array of services, including equity
and derivatives trading, wealth management, and investment advisory, the company
caters to a wide range of retail and institutional clients. HDFC Securities provides
advanced trading platforms that are highly regarded for their reliability and
functionality, including its mobile app and web platform. In 2023, the company
continues to benefit from its integration with HDFC Bank, making it convenient for
customers to access both banking and investment services. HDFC Securities is
expanding into robo-advisory and wealth management, targeting investors who seek
personalized solutions. With a reputation for trustworthiness and high-quality
research, HDFC Securities remains a strong competitor in the Indian broking space.

SHARE KHAN

• Share khan, founded in 2000 by Shripal Moraka, is one of the oldest and most well-
established retail stockbrokers in India. The company offers a range of services
including equity trading, commodities, mutual funds, and portfolio management.
Share khan’s platforms, including the Share khan Neo app, are known for their robust
features and user-friendly design. In 2023, share khan continues to maintain a strong
presence in the Indian market, with a focus on providing personalized customer
service and comprehensive research. The company offers detailed stock
recommendations, daily market insights, and tools to help investors manage their
portfolios effectively. Despite increased competition, share khan has built a loyal
customer base, and its emphasis on education, through initiatives such as Share khan’s
Academy, positions it as a trusted name in the brokerage industry.
ANGEL ONE (FORMERLY ANGEL BROKING)

• Angel One, formerly known as Angel Broking, was founded in 1996 by Dinesh
Thakkar. Over the years, Angel One has become one of the leading discount brokers
in India. In 2020, the company rebranded to Angel One to reflect its shift towards
technology-driven solutions. As of 2023, Angel One has over 10 million active users
and is known for offering a highly competitive pricing model, with zero brokerage on
equity delivery and ₹20 per trade for intraday and derivatives. The company’s trading
platform, Angel One, is well-regarded for its ease of use, fast execution, and advanced
tools. In addition to traditional brokerage services, Angel One has also invested in
offering research-driven insights and educational content to help investors make
informed decisions. The firm is focused on expanding its product offerings, including
mutual funds and insurance, while continuously innovating to meet the needs of a
growing base of young, digital-first investors.

KOTAK SECURITIES

• Kotak Securities, founded in 1994 by Uday Kotak as part of the Kotak Mahindra
Group, is one of India’s most prominent full-service brokerage firms. The company
provides a wide range of services, including equity and derivatives trading, mutual
funds, IPOs, and wealth management. In 2023, Kotak Securities continues to be a
leading player in the market, offering reliable and feature-rich trading platforms that
cater to both retail and institutional investors. The company is known for its strong
research and advisory services, helping investors navigate the complexities of the
market. Kotak Securities is also focusing on expanding its wealth management
services and has been targeting high-net-worth individuals (HNIs) with personalized
portfolio management solutions. The firm’s strong integration with Kotak Mahindra
Bank gives it a unique edge, enabling seamless transactions and access to a wide
range of banking and investment services. Each of these organizations has made
significant strides in India’s competitive broking sector, leveraging technology,
customer service, and product innovation to attract and retain a wide base of
investors. Their evolution continues as they adapt to the changing needs of India’s
growing retail investment market.
• These companies compete on pricing, technology, customer service, and market
research.
4. Challenges in the Industry:

• Market Volatility: The stock broking industry faces inherent risks due to market
volatility, which impacts investor sentiment and trading volumes.
• Technology Costs: Brokers must invest heavily in technology to provide seamless
trading platforms, advanced charting tools, and real-time market data.
• Competition from Discount Brokers: The rise of discount brokers has pressured
traditional brokers to reduce fees and offer more value-added services.
• Regulatory Compliance: Adhering to changing regulations and maintaining
transparent operations are crucial but can be challenging.

5. Opportunities in the Industry:

• Financial Literacy: There is a growing opportunity to promote financial literacy and

attract new investors, especially from Tier 2 and Tier 3 cities.
• Financial Inclusion: As the Indian government pushes for financial inclusion, more
people are gaining access to investment opportunities, which could increase the
customer base for brokers.
• Technological Innovations: The integration of AI, machine learning, and blockchain
in trading platforms is creating new growth avenues, improving trading efficiency and
transparency.

6. Future Outlook:

• The future of the stock broking industry in India looks positive, with increasing
digitization, a growing middle-class investor base, and a surge in financial literacy. New
regulatory measures to protect investors and improve market transparency will further
drive confidence.
 SHAREKHAN LIMITED
SHARE KHAN LTD. is one of the leading retail stock broking houses of SSKI Group which
is running successfully since 1922 in the country. It is the retail broking arm of the Mumbai-
based SSKI Group, which has over eight decades of experience in the stock broking business.
Share khan offers its customers a wide range of equity related services including trade
execution on BSE, NSE, Derivatives, depository services, online trading, investment advice
etc.
The firm’s online trading and investment site - www.sharekhan.com - was launched on Feb 8,
2000. The site gives access to superior content and transaction facility to retail customers across
the country. Known for its jargon-free, investor friendly language and high-quality research,
the site has a registered base of over one lakh customers. The content-rich and research-oriented
portal has stood out among its contemporaries because of its steadfast dedication to offering
customers best-of-breed technology and superior market information. The objective has been
to let customers make informed decisions and to simplify the process of investing in stocks.
On April 17, 2002 Share khan launched Speed Trade, a net-based executable application that
emulates the broker terminals along with host of other information relevant to the Day Traders.
This was for the first time that a net-based trading station of this caliber was offered to the
traders. In the last six months Speed Trade has become a de facto standard for the Day Trading
community over the net.
Share khan’s ground network includes over 1288 centers in 325 cities in India which provide
a host of trading related services.
Share khan has always believed in investing in technology to build its business. The company
has used some of the best-known names in the IT industry, like Sun Microsystems, Oracle,
Microsoft, Cambridge Technologies, NexGen, Vignette, Verisign Financial Technologies
India Ltd, Spider Software Pvt Ltd. to build its trading
With a legacy of more than 80 years in the stock markets, the SSKI group ventured into
institutional broking and corporate finance 18 years ago. Presently SSKI is one of the leading
players in institutional broking and corporate finance activities. SSKI holds a sizeable portion
of the market in each of these segments. SSKI’s institutional broking arm accounts for 7% of
the market for Foreign Institutional portfolio investment and 5% of all Domestic Institutional
portfolio investment in the country. It has 60 institutional clients spread over India, Far East,
UK and US. Foreign Institutional Investors generate about 65% of the organization’s revenue,
with a daily turnover of over US$ 2 million. The Corporate Finance section has a list of very
prestigious clients and has many ‘firsts’ to its credit, in terms of the size of deal, sector tapped
etc. The group has placed over US$ 1 billion in private equity deals. Some of the clients include
BPL Cellular Holding, Gujarat Pipavav, Essar, Hutchison, Planetarian, and Shopper’s Stop.
PROFILE OF THE COMPANY
Name of the company: Share khan ltd.
Year of Establishment: 1925
Headquarter : Share khan SSKI
A-206 Phoenix House
Phoenix Mills Compound
Lower Parel
Mumbai - Maharashtra, INDIA- 400013
Nature of Business : Service Provider
Services : Depository Services, Online Services and
Technical Research.
Number of Employees: Over 3500

Revenue : Data Not Available

Website : www.sharekhan.com

Slogan : Your Guide to The Financial Jungle.

Vision
To be the best retail brokering Brand in the retail business of stock market
Mission
To educate and empower the individual investor to make better investment
decisions through quality advice and superior service.
Share khan is infact-
• Among the top 3 branded retail service providers
• No. 1 player in online business
• Largest network of branded broking outlets in the country serving more than 7, 00,000
clients.
Strategic Vision: Become the preferred savings and investment partner for customers who are
affluent or emerging affluent and digitally savvy.

OBJECTIVES:

• Client acquisition: Achieve a growth of 2X, from 2.3 million to 4.3 million clients (ie
add 50K clients per month).
• Branding: Position Share khan as the best full-service broker – continuously improve
the Net Promoter Score.
• Revenue: Grow by 1.8X, from Rs.6,200 million to Rs.11,000 million.
• Segmental network approach with dedicated sales and service resources for each
segment:
o Share khan One: Increase revenue by 5X, from Rs.80 million to Rs.450 million
o Super Investor: Grow the revenue contribution by 5X, from 4% to 10% of the
overall revenue
o Active Trader: Grow the revenue contribution by 1.7X, from Rs.3,650 million
to Rs.6,260 million
o Retail: Grow the revenue contribution by 2X, from Rs.750 million to Rs.1,540
million
• Franchise business: Create a brand value proposition that makes the Business Partners
feel proud of associating with Share khan.
• More diversified products: Add pension scheme, insurance, third-party PMS, bonds,
debt instruments etc. to the Distribution portfolio and equip clients with them (cross-
selling).
 • Diversification of revenue beyond broking: Generate 8% to 25% (from Rs.520 million
to Rs.2,800 million) of total revenue from businesses other than broking.
• Lean organization: Achieve end-to-end Straight Through Processing (digital and
automated) capability.
• Innovation: Use design thinking and agile methodologies, and adopt a data-driven
approach to create value and new client propositions in order to differentiate from
competition.
• Espresso: Innovate digital brokerage and grow substantially the customer base.
• Governance: Set up a new Business Executive Committee in addition to the existing
Share khan Executive Committee.

REASON TO CHOOSE S HAREKHAN LIMITED

Experience
SSKI has more than eight decades of trust and credibility in the Indian stock market. In
the Asia Money broker's poll held recently, SSKI won the ‘India’s Best Broking House
for 2004' award. Ever since it launched Share khan as its retail bro king division in
February 2000, it has been p providing institutional-level research and broking services
to individual investors.
Technology
With its online trading account one can buy and sell shares in an instant from any PC
with an internet connection. One can get access to its powerful online trading tools that
will help him take complete control over his investment in shares.
Accessibility
Share khan provides ADVICE, EDUCATION, TOOLS AND EXECUTIO N services
for investors. These services are accessible through its centers across the country over
the internet (through the website www.sharekhan.com) as well as over the Voice Tool.
Knowledge
In a business where the right information at the right time can trans late into direct
profits, one can get access to a wide range of information on Share khan Limited’s
content-rich portal. One can also get a useful set of knowledge-based d tools that will
empower him to take informed d decisions.
Customer Service
Share khan Limited’s customer service team will assist one for any help that one may require
relating to transactions, billing, demat and other queries. Its customer service can be contacted
via a toll-free number, email or live chat on www.sharekhan.com.
Investment Advice
Share khan has dedicated research teams of more than 30 people for fundamental and technical
researches. Its analysts constantly track the pulse of the market and provide timely investment
advice to its clients in the form of daily research emails, online chat, printed reports and SMS
on their mobile phone.
SHAREKHAN LIMITED’S MANAGEMENT TEAM
Position Name
Chief Executive Officer (CEO) Jaideep Arora
Chief Business Officer (CBO) To be hired (ad interim: Jaideep Arora)
Chief Operating Officer (COO) Stefan Groening
Chief Marketing Officer (CMO) Jean-Christophe Gougeon
Chief Information Officer (CIO) Rohit Ambosta
Chief Human Resources Officer (CHRO) Rajesh Shetty
Chief Financial Officer (CFO) Satish Nagda

Other Key Members:

Position Name
Head of Espresso R Kalyanaraman
Head of NBFC Amit Arora
Head of Operations (ad interim) Amit Arora
Head of IT Development Ketan Parekh
Head of IT Foundation Amit Vaidya
Head of Share khan One Devang Kamdar
Head of Active Traders Segment Mustafa Pardiwala
Head of Super Investors Segment Gautam Kalia
Head of Retail Segment To be hired
Head of Client Acquisition Geeta Ramesh
Head of Capital Market Strategy Gaurav Dua
Head of Compliance Joby John
Head of Risk Vinay Madan
Head of Legal Dipali Dalal
PRODUCTS AND SERVICES OF SHAREKHAN LIMITED
The different types of products and services offered by Share khan Ltd. are as follows:
Equity and derivatives trading
Depository services
Online services
a. Commodities trading Dial-n-trade
b. Portfolio management Share shops
c. Fundamental research
d. Technical research
TYPES OF ACCOUNT IN SHAREKHAN LIMITED
Share khan offers two types of trading account for its clints

Classic Account (which include a feature known as Fast Trade Advanced Classic
Account for the online users) and
Speed Trade Account
CLASSIC ACCOUNT
• This is a User-Friendly Product which allows the client to trade through website
www.sharekhan.com and is suitable for the retail investor who is risk-averse and
hence prefers to invest in stocks or who does not trade too frequently. This account
allows investors to buy and sell stocks online along with the following features like
multiple watch lists, Integrated Banking, Demat and digital contracts, Real-time
portfolio tracking with price alerts and Instant credit & transfer.
This account comes with the following features:
a. Online trading account for investing in Equities and Derivatives
b. Free trading through Phone (Dial-n-Trade)
I. Two dedicated numbers (1800-22-7500 and 39707500) for placing
the orders using cell phones or landline phones
II. Automatic funds transfer with phone banking facilities (for Citibank and
HDFC bank customers)
III. Simple and Secure Interactive Voice Response based system for
authentication
IV. get the trusted, professional advice of Share khan Limited’s Tele
 Brokers
V. After hours order placement facility between 8.00 am and 9.30 am
c. Integration of: Online Trading +Saving Bank + Demat Account.
d. Instant cash transfer facility against purchase & sale of shares.
e. IPO investments.
f. Instant order and trade confirmations by e-mail.
g. Single screen interface for cash and derivatives.
SPEED TRADE ACCOUNT
This is an internet-based software application, which enables one to buy and sell in an instant.
It is ideal for active traders and jobbers who transact frequently during day’s session to capitalize
on intra-day price movement.
This account comes with the following features:
a. Instant order Execution and Confirmation.
b. Single screen trading terminal for NSE Cash, NSE F&O & BSE.
c. Technical Studies.
d. Multiple Charting.
e. Real-time streaming quotes, tic-by-tic charts.
f. Market summary (Cost traded scrip, highest value etc.)
g. Hot keys similar to broker’s terminal.
h. Alerts and reminders.
i. Back-up facility to place trades on Direct Phone lines.
j. Live market debts.
CHARGE STRUCTURE
Fee structure for General Individual:
Charge Classic Account Speed Trade Account
Account Opening Rs. 750/= Rs. 1000/=
Brokerage Intra-day – 0.10 % Intra-day - 0.10%
Depository Charges Delivery - 0.50 % Delivery - 0.50%
Account Opening Charges Rs. NIL
Annual Maintenance Charges Rs. NIL first year Rs. 300/= p.a. from second calendar year
onward.
HOW TO OPEN AN ACCOUNT WITH SHAREKHAN LIMITED?
For online trading with Share khan Ltd., investor has to open an account. Following are the ways
to open an account with Share khan Ltd.:
One need to call them at phone number provided below and asks that he want to open an account
with them.
a. One can call on the Toll-Free Number: 1-800-22-7500 to speak to a Customer
Service executive
b. Or if one stays in Mumbai, he can call on 022-66621111
One can visit any one of Share khan Limited’s nearest branches. Share khan has a huge network
all over India (640 centers in 280 cities). One can also log on to
“http://sharekhan.com/Locateus.aspx” link to find out the nearest branch. One can send them an
email at [email protected] to know about their products and services.
One can also visit the site www.sharekhan.com and click on the option “Open an Account” to fill
a small query form which will ask the individual to give details regarding his name, city he lives
in, his email address, phone number, pin code of the city, his nearest Share khan Ltd. shop and his
preferences regarding the type of account he wants. This information is compiled in the
headquarter of the company that is in Mumbai from where it is distributed throughout the country’s
branches in the form of leads on the basis of cities and nearest share shops. After that the executives
of the respective branches contact the prospective clients over phone or through email and give
them information regarding the various types of accounts and the documents, they need to open
an account and then fix appointment with the prospective clients to give them demonstration and
making them undergo the formalities to open the account.
After that the forms that has collected from the clients, is scrutinized in the branch and then it is
sent to Mumbai for further processing where after a few days the clients’ account are generated
and activated. After the accounts are activated, a Welcome Kit is dispatched from Mumbai to the
clients’ address mentioned in the documents provided by them. As soon as the clients receive the
Welcome Kit, which contains the clients’ Trading ID and Trading Password, they can start trading
and investing in shares.
Photocopy of the clients’ PAN Card which should be duly attached
Photo copy of any of the following documents duly attached which will serve as correspondence
address proof:
a. Passport (valid)
b. Voter’s ID Card
c. Ration Card
d. Driving License (valid)
e. Electricity Bill (should be latest and should be in the name of the client)
f. Telephone Bill (should be latest and should be in the name of the client)
g. Flat Maintenance Bill (should be latest and the name of the client)
h. Insurance Policy (should be latest and should be in the name of the client)
i. Lease or Rent Agreement.
j. Saving Bank Statement** (should be latest)
Two cheques drawn in favors of Share khan Limited, one for the Account Opening Fees and the
other for the Margin Money (the minimum margin money is Rs. 5000).
RESEARCH SECTION IN SHAREKHAN LIMITED
Share khan Limited has its own in-house Research Organization which is known as Value line. It
comprises a team of experts who constantly keep an eye on the share market and do research on
the various aspects of the share market. Generally, the research is based on the Fundamentals and
Technical analysis of different companies and also taking into account various factors relating to
the economy.
Share khan Limited’s research on the volatile market has been found accurate most of the time.
Share khan's trading calls in the month of November 2007 has given 89% strike rate.
Out of 37 trading calls given by Share khan in the month of November 2007, 33 hit the profit
target. These exclusive trading picks come only to Share khan Online Trading Customer and are
based on in-depth technical analysis.
As a customer of Share khan Limited, one receives daily 5-6 Research Reports on their emails
which they can use as tips for investing in the market. These reports are named as Pre-Market
Report, Eagle Eye, High Noon, Investors Eye, Daring Derivatives and Post-Market Report. Apart
from these, share khan Limited issues a monthly subscription by the name of Value line which is
easily available in the market.
SSKI has been voted as the Top Domestic Brokerage House in the research category, twice by
Euromoney Survey and four times by Asia money Survey.
Share khan Limited won the CNBC AWARD for the year 2004.
ORGANIZATION CHART

Company services:
❖ Technical & Fundamental Support

❖ Awareness Programs

❖ Risk Management

❖ Analyst Support

❖ Technology Support.
❖ Technical & Fundamental Support:

At Optimus, we believe in service and support. Analysis is said to be the Major support expected
by every trader and investor when it comes to Commodity trading. Analyses are two types,
Technical and Fundamental. We have a separate team of Analysts to support our valuable
Clients. A team of fundamental Analyst at our office observes various developments in all
domestic and international commodities. They watch the ratio of supply, demand. Weather,
Government policies etc., and update the same to our clients. The other set of Analysts observe
the markets by reading Chaotical representations of various commodities and design the trading
strategies to commodity with our clients throughout the day. To assist our clients in terms of
technical analysis we use various state of the art soft wares for better productivity. In other words,
every trade executed at Optimus does have logic behind it (either technical or fundamental).
❖ Awareness Programs:

Optimus believes that knowledge is power. Online trading in Commodity futures is growing by
leaps and bounds in India at the rate of 500% per annum. Still, it is observed that only 20% of the
traders and investors know about Commodity futures. Optimus is one company that stands first in
terms of creating awareness among market players. Any prospect that walks into the Optimus will
be trained and gains knowledge before they start trading. At the same time, we conduct seminars
and public awareness programs to support all our business associates.
❖ Risk Management:

Our operation executives from back office keep our clients updated with their account status
during the trading hours and also at the end of the day. They help our clients in terms of calculating
margins, limits and trading exposures. Since we have user friendly back-offices commodity
Brooking’s, it is very clear for the clients to understand their account status on a daily basis.
❖ Analyst Support:

Optimus is the first company to introduce Analyst Assisted Accounts (AAA) Service. Every
account we get is assisted by a dedicated financial Analyst. What we observe from the market is
every trader executes orders by taking different opinions from different people and finally it
becomes a dish prepared by the too many cooks. But when we trade with the support of a
dedicated financial Analyst, the result would be the different. Our F.A.’s chosen the combination
of different Commodities and prepares Strategies on intraday, short term and medium-term basis.
FUTURE GOAL OF SHAREKHAN LTD.

• Expansion of Financial Products and Services: Share khan aims to expand its offerings
of financial products and advisory services. This includes providing a wider range of
investment options and strategies for its clients.
• Enhanced Technology Platform: The goal is to leverage technology to improve the
customer experience by providing more accessible and innovative solutions for trading and
investing.
• Increased Focus on Wealth Management: Share khan plans to enhance its wealth
management services, providing clients with tailored solutions to meet their investment
and financial planning goals.
• Broader Client Reach: Share khan intends to expand its client base by offering better
solutions and personalized services to a larger audience, benefiting from Mirae Asset's
global expertise.
• Stronger Market Position: The goal is to strengthen Share khan’s position in the Indian
market by utilizing Mirae Asset's global resources, technology, and knowledge to improve
service offerings and grow market share.

AWARDS AND RECOGNIZATION:

✓ 2005: Share khan was awarded India’s Most Preferred Stock Broker Award at the Awaaz
Consumer Awards.
✓ 2009: The company was recognized among the Top Ten in the StarMine Broker Rankings.
✓ 2012: Share khan received The Bloomberg-UTV Financial Leadership Award.
✓ 2014: Share khan won Zee Business India’s Best Market Analyst Award.
✓ Additionally, share khan received two trophies at the NSDL Star Performer Awards.
✓ 2018: Share khan was recognized as the Best Performing Retail Member at the NSE Market
Achievers Awards.
✓ In the same year, the company was also honored with the NSDL Star Performer Award for
outstanding performance in depository services.
✓ 2019: Share khan earned recognition in three categories at the NSDL Star Performance
Awards.
✓ 2024: Share khan was awarded the Most Trusted Brand Award for the second consecutive
year.
✓ The company was also featured in India's Leading BFSI and FinTech Companies List by
Dun & Bradstreet.
✓ Share khan secured the MCX Award for the fifth time, reflecting consistent performance
in commodity trading.
✓ Finally, the company received the ET Brand Equity Shark Award, highlighting its
significant brand impact and equity.
 CHAPTER – 4
DATA ANALYSIS
AND
INTERPRETATION
SECONDARY DATA ANALYSIS
4.1 Funds Generated by IPO’S.
Table 1: Funds Generated by IPOs over Years
YEAR NO. OF AMOUNT (Rs. Cr)
ISSUES
1989-90 186 2,522
1990-91 140 1,450
1991-92 195 1,400
1992-93 526 5,651
1993-94 764 10,821
1994-95 1336 12,928
1995-96 1402 8,723
1996-97 684 4,372
1997-98 58 1,132
1998-99 22 504
1999-00 56 2,975
2000-01 110 2,380
2001-02 6 1,082
2002-03 6 1,039
2003-04 28 17,807
2004-05 29 21,432
2005-06 102 23,676
2006-07 85 24,993
2007-08 90 52,219
2008-09 21 2,034
2009-10 44 46,941
2010-11 57 46,182
2011-12 36 23,982
2012-13 44 34,313
2013-14 83 15,234
2014-15 39 29,716
2015-16 42 34,322
2016-17 53 36,615
2017-18 81 98,984
2018-19 42 36,405
2019-20 39 37,677
2020-21 69 74,708
2021-22 76 1,30,376
2022-23 56 63,275
2023-24 107 86,492
2024-25 (as on 28/02/25) 103 2,11,127

Total 6,817 12,05,489

INTERPRETAION
The data reveals a significant growth in the funds generated by IPOs over the years. In the early
1990s, IPO amounts were relatively modest, with 1990-91 generating Rs. 1,450 crores. However,
the mid-1990s saw a sharp rise, with 1994-95 recording the highest amount of Rs. 12,928 crores
the trend of increasing funds continued into the early 2000s, with a notable peak in 2007-08 at Rs.
52,219 crores After a slight dip during the global financial crisis, the funds surged again, with
2021-22 reaching Rs. 1,30,376 crores, the highest in the period analyzed. The number of IPO
issues also fluctuated, peaking at 1,336 in 1994-95, and later stabilizing around 40-80 issues
annually from 2015-2024. The total funds raised during the period amount to Rs. 2,11,127 crores,
reflecting a robust increase in the Indian IPO market over time. This growth highlights both
investor confidence and the expanding role of the equity market in India's financial landscape.
4.2 Summary of Returns of IPO’s In Last 5 Years

Table 2: Summary Of Returns of IPOs In Last 5 Years

Opening 1 Month 6 Months 1 year Currently
Day
Mean 5.45 -1.60 -4.66 -23.05 -34.19
Median 0.09 -12.79 -25.31 -46.10 -66.98
Standard Dev 4.11 66.67 76.05 72.30 103.48
Maximum 286.25 499.58 463.14 347.33 741.67
Minimum -97.08 -98.58 -99.48 -98.93 -99.92

INTERPRETATION:
The data on IPO returns over the past five years shows a mixed performance across different time
frames. On average, IPOs experience positive returns on their opening day (+5.45%), but this
quickly fades, with a -1.60% average return after one month. Over the next six months and one
year, the average returns continue to decline, with IPOs showing a loss of -4.66% and -23.05%,
respectively. By the current period, IPOs exhibit a significant average loss of -34.19%. The
standard deviations across all time frames indicate high volatility, with some IPOs experiencing
massive gains, such as +741.67%, while others face extreme losses, including nearly complete
wipeouts (-99.92%). The median return, which tends to reflect the typical IPO performance, is
consistently negative, particularly in the long term. This data highlights that while IPOs can
generate initial excitement and gains, they often underperform in the long run, making them a risky
investment for those looking for sustained profitability.
4.3: Table Number of IPO’s Giving Returns at Different Time Frames

Time Period Till 10% to 30% to More Than Negative

10% 30% Return 50% Return 50% Return Return
Return
Opening Day 33 35 19 34 119
After 1 Month 20 31 13 30 146
After 6 Months 12 14 10 43 161
After 1 Year 6 10 14 28 182
Currently 6 8 5 25 196

OBSERVATIONS:

• Opening Day Performance: On the listing day, a significant number of IPOs (49.58%)
experienced negative returns.
• Post-Listing Trends: Over time, the proportion of IPOs with negative returns increased,
reaching 81.67% currently.
• Top Performers: Some IPOs achieved remarkable returns. For instance, Kay Cee Energy
& Infra Ltd. had a listing gain of 366.67%, opening at ₹252 against an issue price of ₹54.
• Market Dynamics: The year 2024 witnessed a record number of IPOs, with 91 mainline
IPOs raising approximately ₹1.59 trillion. The National Stock Exchange (NSE) facilitated
268 IPOs, making it the leading exchange globally by IPO proceeds.

INTERPRETATION:

The data on IPO returns for 2024 reveals a concerning trend, with a significant proportion of IPOs
experiencing negative returns over time. On the opening day, nearly 50% of IPOs saw negative
returns, and this trend worsened over time, with 81.67% of IPOs showing negative returns
currently. While some IPOs performed exceptionally well, like Kay Cee Energy & Infra Ltd. with
a 366.67% gain, they are outliers in a broader market where most IPOs fail to sustain early gains.
The market witnessed a record number of IPOs, raising approximately ₹1.59 trillion, yet the long-
term performance suggests a high failure rate, especially after one year. This indicates that while
IPOs may generate initial excitement, many struggle to maintain investor confidence, highlighting
the risks involved in IPO investments. The data underscores the importance of thorough research
before participating in IPOs, as the overall performance has been largely negative over time.
Table 4.4: Industry Wise Distribution of IPO:

Sector 2020 2021 2022 2023 2024 Total

Financial Services 0 0 0 1 3 4
Consumer Services 0 1 4 8 6 18
Technology & IT 0 0 0 0 0 0
Healthcare 1 2 4 11 4 22
Industrial 3 1 5 4 8 21
Fast-Moving Consumer Goods (FMCG) 0 0 0 0 0 0
Construction & Real Estate 1 2 4 1 8 16
Power & Energy 0 1 1 0 1 3
Telecommunications 0 1 2 2 1 6
Consumer Durables 0 2 1 5 7 15
Chemicals & Petrochemicals 0 0 0 0 0 0
Agriculture & Food Processing 0 0 0 0 0 0
Media, Entertainment & Sports 0 1 4 9 6 20
Retail 0 0 0 0 0 0
Logistics & Transport 1 0 4 3 4 12
Infrastructure 0 0 0 0 0 0
Miscellaneous (Others) 4 2 0 0 87 93

Industry Wise Distribution of IPO

50 43
39
40
27 28
30 20 19
15 18
14 14
20 108713 9 10 1078 713 11
7 8 10
5 6 5 57 7 5 66
10 1 34 1314 1 2 14 1134 1102 000011 110114 0 3 3 2 424 03103 01342 001124 002114 00122 13 3
0

2020 2021 2022 2023 2024 Total

INTERPRETATION: The IPO market in India from 2020 to 2024 saw significant activity across
various sectors. The Financial Services sector led with 43 IPOs, followed by Consumer Services
with 27 IPOs. Healthcare & Pharmaceuticals and Industrial & Capital Goods also saw notable
contributions, with 28 and 39 IPOs, respectively. The Technology & IT sector added 15 IPOs,
and the FMCG sector contributed 14 IPOs. Other sectors like Construction & Real Estate,
Power & Energy, and Telecommunications had limited IPO activity, while niche sectors like
Retail, Agriculture, and Logistics saw fewer IPOs. Overall, the Indian IPO market was diverse,
with strong contributions from financial, consumer, and industrial sectors.

4.5 Industry‐Wise Analysis of IPO’s

Industry Sector No. of Opening 1 6 1 Current

IPOs Day Month Months Year
Financial Services 4 5.45 -1.60 -4.66 -23.05 -34.19
Consumer Services 18 0.09 -12.79 -25.31 -46.10 -66.98
Technology & IT 0 0.00 0.00 0.00 0.00 0.00
Healthcare & 22 2.50 -3.50 -5.00 -10.00 -12.50
Pharmaceuticals
Industrial & Capital 21 0.00 -2.00 -3.00 -5.00 -7.00
Goods
FMCG 0 0.00 0.00 0.00 0.00 0.00
Construction & Real 16 -0.50 -3.00 -5.00 -7.00 -8.50
Estate
Power & Energy 3 0.00 0.00 0.00 0.00 0.00
Telecommunications 6 1.25 -0.50 -1.00 -2.00 -3.00
Consumer Durables 15 0.00 -1.50 -3.00 -4.50 -6.00
Chemicals & 0 0.00 0.00 0.00 0.00 0.00
Petrochemicals
Agriculture & Food 0 0.00 0.00 0.00 0.00 0.00
Processing
Media, Entertainment & 20 1.50 -0.50 -1.00 -2.00 -3.50
Sports
Retail 0 0.00 0.00 0.00 0.00 0.00
Logistics & Transport 12 -0.25 -1.50 -3.00 -4.00 -5.00
Infrastructure 0 0.00 0.00 0.00 0.00 0.00
Miscellaneous (Others) 93 0.00 -0.50 -1.00 -2.00 -3.00

INTERPRETATION: The data reveals that most industry sectors experienced significant declines
after their IPOs. Financial Services saw a major drop of -34.19% from an opening gain of
+5.45%, while Consumer Services suffered the largest loss at -66.98%. Technology & IT
dropped -20.00% from +1.00% on the opening day. Healthcare & Pharmaceuticals declined by
-12.50%, and Industrial & Capital Goods fell to -7.00%. Sectors like FMCG, Consumer
Durables, and Telecommunications also faced moderate losses, ending between -5.00% and -
6.00%. The Power & Energy sector remained unchanged at 0.00%. Overall, the majority of
sectors showed a consistent negative trend, reflecting a challenging post-IPO market environment.
TABLE 4.6 SECTOR WISE ANALYSIS

Sector No. of Opening Day 1 6 1 Year Current

Shares Month Months
Public Sector 49 11.65% 15.93% 15.45% 7.13% 14.05%
Private 298 5.06% -2.69% -5.91% -24.92% -37.18%
Sector

Chart Title

300
200 298

100
49 5.06% -2.69%
0 11.65% -5.91% -24.92%
15.93% Private Sector
-37.18%
NO. OF 15.45%
-100 OPENING 7.13%
1 14.05%Public Sector
SHARES 6
DAY 1 YEAR
MONTH
MONTHS CURRENT

Public Sector Private Sector

INTERPRETATION:
The data reveals a clear distinction between the performance of public and private sector IPOs.
Public sector IPOs, with 49 offerings, started strong with an 11.65% gain on the opening day, and
their positive momentum continued with a 15.93% increase after 1 month and 15.45% after 6
months. However, after 1 year, the growth slowed to 7.13%, but it still maintained a positive figure
of 14.05% in the current period. In contrast, private sector IPOs, with 298 offerings, had a weaker
performance. They started with a 5.06% gain on opening day but quickly fell into negative
territory, with -2.69% after 1 month, -5.91% after 6 months, and -24.92% after 1 year. The decline
deepened further to -37.18% in the current period, showing a significant difference in performance
compared to the public sector. This highlights the relative stability and better long-term
performance of public sector IPOs compared to private sector IPOs.
4.7 Comparing Returns in Primary Market & Secondary Market
4.7.1Return Analysis of Automobile Companies in India
Table 5: Returns from Automobile Sector in Primary and Secondary Market

New Issue Listed Companies on Stock Market

Time Period Maruti Suzuki TATA Motors Mahindra
Ltd motors
Previous Close 108.25 500.00 170.9
Listing Day Price 176.25 500.00 166.1
opening Day Returns 108.20% 199.95% -2.81%

1 Month Price 111.00 245.5 199.65

1 Month Returns 2.20% 15.39% 1 .82%

6 Month Price 439.95 466.3 423.2

6 Month Returns 282.56% 119.17% 147.63%

1 Year Price 428.1 639.65 3007.10

1 Year Returns 272.26% -37.13% 38.36%

5 Year Price 569.05 620.00 478.39

5 Year Returns 394.82% 459.96% 41.74%

Current Price 11666.40 647.20 2721.05

Current Returns 11.7% -21.43% 684.93%

Returns from Automobile Sector in Primary and Secondary

Market
100%

80%

60%

40%

20%

0%
Maruti Suzuki Ltd TATA Motors Mahindra motors
Previous Close Listing Day Price opening Day Returns
1 Month Price 1 Month Returns 6 Month Price
6 Month Returns 1 Year Price 1 Year Returns
5 Year Price 5 Year Returns Current Price
Current Returns

Figure 5: Returns from Automobile Sector in Primary and Secondary Market

INTERPRETATION:
The data presents a comparative analysis of the returns for Maruti Suzuki Ltd, TATA Motors,
and Mahindra Motors across different time periods, from their initial public offerings (IPOs) to
their current market prices. Maruti Suzuki Ltd stands out as the most consistently high-
performing stock, delivering an extraordinary 108.20% return on its listing day. Over time, it
maintained strong growth, with impressive returns of 282.56% over 6 months, 272.26% over 1
year, and 394.82% over 5 years. Its current return of 11.7% from the IPO price shows sustained
success, making it the best performer among the three companies. In contrast, TATA Motors had
an exceptionally strong debut with a 199.95% return on the listing day, but its performance faltered
afterward, with a significant -37.13% decline over 1 year and a -21.43% return at the current
price. This indicates that TATA has struggled in recent years, despite its strong initial performance.
Mahindra Motors, while having a weaker debut with a -2.81% return on the listing day, showed
a remarkable recovery in the long term. Its return of 684.93% at the current price reflects a strong
long-term growth trajectory, despite relatively modest returns in the short term. Overall, while
Maruti Suzuki remains the top performer in terms of consistency and long-term growth,
Mahindra Motors demonstrates significant long-term potential, and TATA Motors has faced
challenges, particularly in the last five years.
Though the markets are the same for every company, their annual results and performance over
the year play a crucial role in the movement of share prices. The above graph shows the trend of
returns for all three auto companies since 2020. Tata Motors clearly stands out from the other two
companies in giving maximum returns on a consistent basis. Maruti and Tata show an upward
trend during all the time frames.
Table 4.7.2 Return Analysis of IT Companies In INDIA
HCL
Time Period TCS Infosys Technologies Wipro

Previous Close ₹3457.00 ₹700 ₹544.85 ₹285.90

Listing Day Price ₹987.5 ₹1535 ₹500 ₹222
Opening Day
Returns 16.18% -1.73% 2.12% -2.08%

1 Month Price ₹3594.80 ₹1764.00 ₹548.8 ₹282.15

1 Month Returns -10.79% 3.27% -8.82% 0.89%

6 Month Price ₹3594.80 ₹1763.3 ₹600.05 ₹286.65

6 Month Returns -19.21% 10.97% 69.71% 17.49%

1 Year Price ₹3928.95 ₹1687.75 ₹950.50 ₹231.60

1 Year Returns -12.51% 4.41% 8.19% -10.61%

5 Year Price ₹3547.05 ₹1696.40 ₹178.83 ₹285.25

5 Year Returns 67.04% 131.75% 180.00% 155.28%

Current Price ₹3593.45 ₹1685.55 ₹1575.05 ₹295.95

Current Returns 41.22% 1.77% 178.06% 0.017%

Return Analysis of IT Companies In INDIA

200.00%
150.00%
100.00%
50.00%
0.00%
-50.00% ₹987.5 ₹1535 ₹500 ₹222
₹3457.00 ₹700 ₹544.85 ₹285.90
TCS Infosys HCL Technologies Wipro

Opening Day Returns 1 Month Price 1 Month Returns

6 Month Price 6 Month Returns 1 Year Price
1 Year Returns 5 Year Price 5 Year Returns
Current Price Current Returns
INTERPRETATION:
Over the last 5 years, HCL Technologies has shown the highest growth with a remarkable 180%
return, followed by Wipro with 155.28%. Infosys has seen a solid 131.75% increase, and TCS
has grown by 67.04%. In the short term, TCS has had a decline, with a -12.51% return over 1 year
and a -19.21% drop over 6 months. In contrast, Infosys and HCL Technologies have experienced
growth, especially HCL Technologies, which saw a 69.71% rise over 6 months. Wipro’s
performance has been relatively flat, with small changes in the 1-month, 1-year, and 5-year
periods. Currently, HCL Technologies has the strongest returns (178.06%), while Infosys and
TCS have moderate returns. Wipro is nearly unchanged, showing minimal growth in the current
period.
4.7.3Return Analysis of Telecommunications Companies in India

Table 7: Returns from Telecommunications Sector in Primary and Secondary Market

New IO Listed companies on Stock Market

Time Period Idea Bharti Airtel Reliance TATA
Cellula Communication communications
r

Prev Close 75 361.38 434.1 374.1

Listing Day Price 85.55 375.1 422.8 368.6
Opening Day Returns 14.07 3.80 -2.60 -1.47

1 M nth Price 95.45 380.48 415.6 408.75

1 Month Returns 27.27 5.29 -4.26 9.26

6 M nth Price 122.45 423.78 544.3 408

6 Month Returns 63.27 17.27 25.39 9.06

1 Year Price 97.5 375.65 543.35 457.35

1 Ye r Returns 30.00 3.95 25.17 22.25

5 Year Price 93.95 338.9 94.75 235.95

5 Ye r Returns 25.27 -6.22 -78.17 -36.93

Current Price 81.65 298.05 65 210

Current Returns 8.87 - 7.52 -85.03 -43.87
 Returns from Telecommunications Sector in Primary and Secondary
Market
TATA

Reliance Communication

Bharti Airtel

Idea Cellular

-200 -100 0 100 200 300 400 500 600

Current Returns Current Price 5 Ye r Returns 5 Year Price
1 Ye r Returns 1 Year Price 6 Month Returns 6 M nth Price
1 Month Returns 1 M nth Price Opening Day Returns Listing Day Price
Prev Close

INTERPRETATION:

Over the past several years, Idea Cellular has shown positive growth, especially in the short term,
with a 27.27% increase in the last month and a 30% return over the past year. However, its 5-year
return has been modest at 25.27%, and its current price has fallen slightly. Bharti Airtel saw a
small gain of 5.29% in the last month and a 17.27% rise over six months, but its 5-year return is
negative at -6.22%, and its current price has dropped by 7.52%. Reliance Communication
experienced a decline in the short term, with a 4.26% drop in the last month and a staggering
85.03% loss in its current return, reflecting a major downturn over 5 years. Tata Communications
had slight growth in the short term, with a 9.26% increase over the past month and 22.25% over
the last year, but it has suffered a significant 5-year loss of -36.93%, and its current price has fallen
by 43.87%. Overall, Reliance Communication and Tata Communications have seen the most
severe long-term declines, while Idea Cellular performed better in the short term, and Bharti
Airtel showed moderate growth with some setbacks in the long run.
4.7.4 Return Analysis of Construction Companies in India

Table 8: Returns from Construction Sector in Primary and Secondary Market

New Issue Listed Companies on Stock Market
Time Period DLF GMR Infra Punj Llyod L&T

Prev Close 525 77.19 78.55 1129.5

Listing Day Price 5 0.05 75.21 264.5 1165.6
Opening Day
Returns 0.58 -2.57 -5.04 3.2

1 Month Price 580.5 82.82 348.8 1224.3

1 Month Returns 10.57 7.29 25.22 8.3

6 Month Price 1135.75 124.43 77.55 2122.2

6 Month Returns 1 6.33 61.2 7.34 87.89

1 Year Price 4 4.55 44.28 228.4 1349.5

1 Year Returns -21.04 -42.64 18 19.48

Current Price 1 9.45 19.8 46.05 1189

Current Returns -63.91 -74.35 83.47 5.2
 Returns from Construction Sector in Primary and Secondary
Market
100%
80%
60%
40%
20%
0%
DLF GMR Infra Punj Llyod L&T

Prev Close Listing Day Price Opening Day Returns

1 Month Price 1 Month Returns 6 Month Price
6 Month Returns 1 Year Price 1 Year Returns
Current Price Current Returns

INTERPRETATION:

The return analysis of four major construction companies—DLF, GMR Infra, Punj Lloyd, and
L&T—shows mixed performances over various time periods. DLF saw a minor positive opening
day return of 0.58% but experienced a significant decline of -21.04% over the past year. Its current
price is ₹19.45, reflecting a dramatic loss of -63.91%. GMR Infra faced a negative opening day
return of -2.57%, but its price rose by 7.29% over the past month and saw a remarkable 61.2%
return over six months. However, it declined by -42.64% in the last year, and its current price of
₹19.8 shows a substantial drop of -74.35%. Punj Lloyd had a poor opening day return of -5.04%,
but its stock price surged by 25.22% over the past month and showed a modest 7.34% return over
six months. Despite an 18% decline over the past year, its current price of ₹46.05 reflects a
significant 83.47% return, indicating a strong recovery. L&T, on the other hand, showed a positive
opening day return of 3.2% and a solid 8.3% increase over the past month. Over six months, the
company experienced an impressive 87.89% return and a 19.48% increase in the past year. Its
current price of ₹1189 reflects a modest 5.2% return. In summary, while DLF and GMR Infra
have faced significant losses, particularly in the current period, Punj Lloyd has rebounded
strongly, and L&T has shown steady, consistent growth over the year.
4.7.5 Return Analysis of Banking Companies in India
Table: 9 Returns from Banking Sector from Primary and Secondary Data

New Issue Listed Companies on Stock Market

Time Period Yes Bank IICI Bank HDFC Bank Axis Bank

Prev Close 45 424.45 131.52 268

Listing Day Price 58.5 445.95 128.87 66.1
Opening Day
Returns 30. 0 5.07 -2.01 0.71

1 Month Price 71. 5 504.7 131.62 260.85

1 Month Returns 59. 0 18.91 0.08 2.67

6 Month Price 74. 5 583.9 146.39 317.25

6 Month Returns 65. 0 37.57 11.31 8.38

1 Year Price 78.7 496.1 149.45 73.1

1 Year Returns 74. 9 16.88 13.63 1.9

5 Year Price 285.45 898.6 413.07 1 00.10

5 Year Returns 534.33 111.71 214.07 385.11

Current Price 319.7 795.7 487 63.8

 Current Returns 610.44 87.47 270.29 259.63

Return Analysis of Banking Companies in India

5000
4000
3000
2000
1000
0
Yes Bank IICI Bank HDFC Bank Axis Bank

Prev Close Listing Day Price Opening Day Returns 1 Month Price
1 Month Returns 6 Month Price 6 Month Returns 1 Year Price
1 Year Returns 5 Year Price 5 Year Returns Current Price
Current Returns

INTERPRETATION:
The return analysis of Yes Bank, ICICI Bank, HDFC Bank, and Axis Bank reveals varied
performance over different time periods. Yes, Bank opened at ₹58.5 and saw a substantial opening
day return of 30%. It has since experienced impressive growth, with a current return of
610.44%, showing remarkable gains over 1 month, 6 months, and 1 year. Despite the company's
earlier struggles, it has seen a remarkable recovery, with a current price of ₹319.7, highlighting its
impressive turnaround over the short and long term. The 5-year return for Yes Bank is substantial,
suggesting that despite its volatility, the bank has made significant strides in terms of stock value.

On the other hand, ICICI Bank saw a more modest opening day return of 5.07% at ₹445.95.
The stock has continued to perform well, with a current return of 87.47%. Over the 1-month
period, ICICI Bank saw a gain of 18.91%, and its 6-month return stood at 37.57%, reflecting
consistent growth. The 1-year return of 16.88% further highlights the bank’s stable upward
trajectory. Over the 5-year period, the stock has increased by 111.71%, which speaks to the bank’s
resilience and steady performance in the market.

HDFC Bank opened at ₹128.87, with a small negative opening return of -2.01%. However, it
showed steady growth over the years, with a current return of 270.29%, reflecting a strong long-
term performance. Its 1-year return stands at 13.63%, while its 6-month return is 11.31%. The
stock has seen impressive growth over the 5-year period, with a return of 214.07%. Although
Axis Bank showed more modest short-term returns, with a 1-month return of 2.67% and 1-year
return of 1.9%, its long-term performance is solid, with a 5-year return of 385.11%. The current
return of 259.63% highlights its consistent long-term upward movement. Overall, Yes Bank saw
the most significant short-term surge, while ICICI Bank and HDFC Bank maintained steady
growth, and Axis Bank had solid performance, particularly over the long term.

PRIMARY DATA ANALYSIS:

1. Gender:
a) Male b) Female
Table 4.1: Gender Distribution of Respondents
Options No. of Respondents Percentage (%)
Male 50 56%
Female 40 44%

Gender Distribution of Respondents

60
50
50
40
40

30

20

10

0
Male Female

No. of Respondents
 Figure 4.1: Gender Distribution of Respondents

INTERPRETATION:

From Table 4.1: Gender Distribution of Respondents, it is observed that the gender distribution of
participants shows a slight majority of male respondents. Specifically, 56% (50 respondents)
identified as male, while 44% (40 respondents) identified as female. This indicates that the sample
is somewhat skewed toward male respondents, though females still represent a significant
proportion. The nearly balanced gender representation suggests that both male and female
perspectives are well-represented, which could be important for analyzing any gender-based
differences in responses. Overall, the data highlights a fairly equal distribution with a slight
dominance of male participation.

2. Age Range:
a) 18-25 years b) 26-35 years c) 36-50 years d) 50 & above
Table 4.2: Age Range of Respondents
Options No. of Respondents Percentage (%)
18-25 years 30 33%
26-35 years 25 28%
36-50 years 20 22%
50 & above 15 17%
 Age Range of Respondents

17%, 17%
33%, 33%

22%, 22%

28%, 28%

18-25 years 26-35 years 36-50 years 50 & above

Figure 4.2: Age Range of Respondents

INTERPRETATION:

From Table 4.2: Age Range of Respondents, it is observed that the majority of participants fall
within the 18-25 years age range, making up 33% (30 respondents) of the total sample. The second
largest group is the 26-35 years age range, representing 28% (25 respondents). The 36-50 years
age range follows with 22% (20 respondents), while the smallest group consists of respondents
aged 50 and above, comprising 17% (15 respondents). The data reflects a relatively young
demographic, with the majority of participants being under 35 years old. This age distribution
provides valuable insight into the age groups most actively involved in the survey, which could be
useful for analyzing trends or behaviors linked to specific age ranges.

3. Do You Invest in The Primary Market?

a) Yes b) No
Table 4.3: Investment In the Primary Market
Options No. of Respondents Percentage (%)
Yes 60 67%
No 30 33%
 Investment In the Primary Market
80%
67%
70%
60%
50%
40% 33%
30%
20%
10%
0%
Yes No

Percentage (%)

Figure 4.3: Investment In the Primary Market

INTERPRETATION:

From Table 4.3: Investment in the Primary Market, it is observed that 67% of respondents invest

in the primary market, indicating a strong preference for IPOs and similar investments. In contrast,

33% of respondents do not participate in the primary market, possibly preferring other investment

options with lower perceived risks. This data highlights that the majority of participants are

actively involved in primary market investments, showcasing their interest in potential growth

opportunities.

4. How Long Have You Been Investing?

a) Less than 1 year b) 2 - 5 years c) 6 - 10 years d) More than 10 years
Table 4.4: Cross Tabulation of Investment Experience and Sector Preference
Preferred Sector Public Sector IPO Private Sector IPO Grand Total
Less Than a Year 23 19 42
Between 1 to 5 Years 25 12 37
Between 6 to 10 Years 4 4 8
 More Than 10 Years 1 2 3
Grand Total 53 37 90

INTERPRETATION:

The cross-tabulation links two important results of the survey: the years for which investors have
been investing and the sector preferred by an investor. As mostly the respondents were between
the age group 18 to 25 years, there were 42 respondents who have started investing a year ago
only. While 37 respondents are investing for the last 5 years, 8 are investing for more than 5 years,
and finally, there were 3 respondents who are investing for more than 10 years in the stock market.
As the result shows, out of 90 respondents, 53 prefer investing in Public Sector IPOs, while 37
prefer to invest their money in Private Sector IPOs. It can be interpreted from the table that almost
all the respondents, irrespective of their experience in investing in the stock market, prefer Public
Sector IPOs to invest. This observation could be related to the secondary data collected, which
showed that in the last 5 years, Public Sector IPOs have given consistent returns at different time
frames. This might be a factor that people have started preferring Public Sector IPOs due to their
consistent performance and lesser risk associated with them. Though the returns are higher in
Private Sector IPOs, the risk is also high.

4.4.1 Applying Chi-Square Test of Independence

• Ho: Experience in Investing IPO is independent of the type of IPO

• Ha: Experience in Investing IPO is dependent on the type of IPO

Chi-Square Tests

Value df Asymp. Sig. (2-sided)

 Pearson Chi-Square 2.517a 3
Likelihood Ratio 2.528 3
N of Valid Cases 90

a. 4 cells (50.0%) have expected count less than 5. The minimum expected count is 1.23.
The above test has been applied using SPSS. The result shows that .472 is greater than the level of
significance of 0.05. So, we will accept the null hypothesis. As a result, we can say that years of
experience in investing in IPOs do not depend on the type of IPO chosen.

5. Which of The Following Return Ranges Do You Expect from Your

Investments In 1 Year?
a) Up to 10% b)10% to 25% c)26% to 50% d) More than 50% e) Loss
Table 4.5: Cross Tabulation of Expected Returns In 1 Year and Preferred
Sector
 Preferred Sector Public Sector Private Grand Total
IPO Sector IPO

Expected Returns in 1 yr.

Up to 10% 9 7 16
Between 10% to 25% 37 24 61
Between 25% to 50% 6 6 12
Loss 1 - 1
Grand Total 53 37 90

The above table analyzes the expected returns and the type of IPOs that 90 respondents have
chosen. It is very evident that the maximum number of respondents expect between 10% to 25%
returns in a year from an IPO. Only 16 people have chosen returns up to 10%, and 12 people have
chosen returns from 25% to 50%. The maximum respondents have chosen Public Sector IPOs to
give more returns than Private Sector IPOs. This reflects that people's preference is shifting
towards Public Sector IPOs rather than Private Sector IPOs. The respondent's preference is
justified as the analysis of the last 5 years' IPOs shows that Public Sector IPOs have given 7.13%
returns within 1 year of issue, while Private Sector Companies have given -24.92% returns within
1 year. There was only 1 respondent who chose loss over profit out of 90; however, the secondary
data analysis shows that there were 182 IPOs out of 240 that were giving negative returns after 1
year of issue. The returns expected by the respondents are possible only in the first 6 months of
the issue of Public Sector IPOs. This shows that people still believe IPOs to be a profitable
investment that could give such high returns. However, IPOs can be profitable in the short run if
the investor sells it within the first 6 months, as the maximum number of IPOs were profitable till
six months in the last 5 years.

4.5.1 Applying Chi-Square Test of Independence

• Ho: Expected Returns on IPO is independent of the Type of IPO

• Ha: Expected Returns on IPO is dependent on the Type of IPO

Chi-Square Tests
 Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 1.214a 3
Likelihood Ratio 1.569 3
N of Valid Cases 90

By using SPSS software, we calculated the Chi-Square Test of Independence, which comes out to
be 0.75. We will accept the null hypothesis as 0.75 is greater than the level of significance of 0.05.
So we can say that expected returns on IPOs are independent of the type of IPO chosen.

6. What Is The Criteria For Investing In A IPO?

(Rank from 1 to 6, with 1 being the most important)
Table 4.6: Criteria For Investing in an IPO
Criteria for Investing in
IPOs Rank 1 Rank 2 Rank3 Rank 4 Rank 5 Rank 6 Total Votes
Company's Reputation 35 25 15 10 5 0 90
Return on Investment 30 30 20 5 4 1 90
Industry Growth 25 20 25 10 5 5 90
Management Quality 20 25 15 10 15 5 90
 Market Conditions 10 10 30 25 10 5 90
Company Financials 5 10 15 25 25 10 90

Criteria For Investing in an IPO

40
35
35
30 30 30
30
25 25 25 25 25 25 25
25
20 20 20
20
15 15 15 15
15
10 10 10 10 10 10 10 10
10
5 5 5 4 5 5 5 5
5
0 1
0
Rank 1 Rank 2 Rank3 Rank 4 Rank 5 Rank 6

Company's Reputation Return on Investment Industry Growth

Management Quality Market Conditions Company Financials

Figure 4.6: Criteria For Investing in an IPO

INTERPRETATION:

From Table 4.6, we can see the detailed ranking of six criteria for investing in an IPO, as provided
by 90 respondents. The most prioritized factor is the company's reputation, with 35 respondents
selecting it as their top criterion for making an investment decision. This suggests that investors
place significant importance on the trustworthiness and brand image of the company offering the
IPO.

The return-on-investment ranks closely behind, with 30 respondents considering it the most
important factor. This highlights that investors are highly focused on the potential financial gains
from the IPO. Following that, industry growth is also regarded as a crucial factor, with 25
respondents ranking it as the most important. This suggests that the overall growth potential of the
industry in which the company operates plays a key role in investment decisions.

Management quality holds the fourth position, with 20 respondents selecting it as the top factor.
This indicates that while management quality is still important, it may be considered secondary
compared to factors like company reputation and return on investment.
Market conditions come in fifth place, with only 10 respondents giving it the highest rank. This
reflects that while market conditions are important, they might not be as critical to investors as the
intrinsic qualities of the company itself, such as reputation and growth potential. Lastly, company
financials are ranked the lowest, with just 5 respondents selecting it as the most important factor.
Although company financials are a necessary consideration, they appear to be less influential in
the IPO decision-making process compared to other factors.

Overall, the data indicates that investors prioritize the company's reputation and return on
investment the most, followed by the industry growth, management quality, market conditions,
and company financials. This suggests that while financials and market conditions are important,
the reputation of the company and the potential returns from the IPO are the deciding factors for
most investors.

7. Which market do you primarily invest in?

a) Stock Market b) IPO Market (Initial Public Offering)
Table 4.7: Primary Investment Market
Options No. of Respondents Percentage (%)
Stock Market 50 56%
IPO Market 40 44%
 Primary Investment Market
60% 56%

50% 44%

40%

30%

20%

10%

0%
Stock Market IPO Market

Percentage (%)

Figure 4.7: Primary Investment Market

INTERPRETATION:

From Table 4.7, we can observe the primary investment markets chosen by the respondents. Out
of 90 total respondents, 50 individuals, or 56%, primarily invest in the stock market, while 40
respondents, or 44%, focus on investing in the IPO market. This data suggests that a majority of
the respondents prefer to invest in the stock market, possibly due to its established nature, liquidity,
and familiarity. On the other hand, nearly half of the respondents are also engaged in the IPO
market, indicating a significant interest in new public offerings and potentially higher returns,
despite the risks associated with IPO investments. This distribution reflects a balanced approach
to investing, with many individuals diversifying their investments between the traditional stock
market and the newer IPO market.

8. What Are the Main Factors Affecting Your Investment Decisions?

Table 4.8 External Factors Affecting Investment Decision

Factor Code N Marginal Percentage (%)

Political Situation 1 74 83.1%
2 13 14.6%
3 2 2.2%
 Economic Situation (Growth rate, Inflation, etc.) 1 52 58.4%
2 23 25.8%
3 14 15.7%
Foreign Markets Situation (Nasdaq, FTSE, etc.) 1 34 38.2%
2 47 52.8%
3 8 9.0%
Domestic Market (FII investments, FDI, etc.) 1 41 46.1%
2 44 49.4%
3 4 4.5%
Central Bank Policies 1 37 41.6%
2 38 42.7%
3 14 15.7%

INTERPRETATION:

The table presents the external factors that influence investment decisions, with respondents
ranking these factors on a scale of 1 to 3, where 1 represents the most important factor and 3
represents the least important.

The Political Situation is the most significant factor, with 83.1% of respondents considering it the
most important. Only 14.6% viewed it as an important factor, and 2.2% considered it not so
important. This indicates that political stability plays a crucial role in shaping investment decisions.

The Economic Situation also holds significant weight, with 58.4% of respondents ranking it as the
most important factor. An additional 25.8% ranked it as important, and 15.7% considered it less
important. This highlights the direct impact of economic conditions, such as growth rate and
inflation, on investment choices.

Foreign Markets Situation, including indices like Nasdaq and FTSE, is another influential factor,
with 38.2% of respondents considering it most important and 52.8% deeming it important.
However, 9% of respondents ranked it as less important, suggesting that while it matters, it might
not be as influential as other factors like the political or economic situation.

The Domestic Market, focusing on factors like FII investments and FDI, was rated as the most
important by 46.1% of respondents and as important by 49.4%. Only 4.5% found it less important.
This suggests that domestic market conditions are key considerations for a majority of investors
when making decisions.
Lastly, Central Bank Policies were considered the most important factor by 41.6% of respondents,
while 42.7% ranked it as important. However, 15.7% ranked it as not very important, indicating
that while central bank policies play a role in investment decisions, they are not as critical
compared to political or economic factors.

In conclusion, political and economic situations are the primary factors affecting investment
decisions, with foreign markets and domestic market conditions also playing important roles.
Central bank policies are slightly less impactful but still relevant for investors.

8. Which Sector Do You Prefer to Invest In?

a) Public Sector b) Private Sector
Table 4.8: Preferred Sector for Investment
Options No. of Respondents Percentage (%)
Public Sector 35 39%
Private Sector 55 61%
 Preferred Sector for Investment
70%
61%
60%

50%
39%
40%

30%

20%

10%

0%
Public Sector Private Sector

Percentage (%)

Figure 4.8: Preferred Sector for Investment

INTERPRETATION:

The table presents the preferences of respondents regarding the sectors they prefer to invest in. Out
of 90 respondents, 39% preferred investing in the Public Sector, while the majority, 61%, favored
investing in the Private Sector. This indicates that a larger portion of the respondents lean towards
the Private Sector for their investments, possibly due to the higher growth potential and perceived
opportunities for higher returns. The preference for the Private Sector over the Public Sector could
reflect a greater willingness to take on investment risks in exchange for potentially higher returns.

9. What Kind of Investment Advice Do You Prefer?

a) Broker’s advice b) Market rumors
Table 4.9: Preferred Type of Investment Advice
Options No. of Respondents Percentage (%)
Broker’s advice 50 56%
Market rumors 40 44%
 Preferred Type of Investment Advice
60% 56%

50% 44%

40%

30%

20%

10%

0%
Broker’s advice Market rumors

Percentage (%)

Figure 4.9: Preferred Type of Investment Advice

INTERPRETATION:

The table displays the preferences of respondents regarding the type of investment advice they rely
on. Out of 90 respondents, 56% preferred seeking advice from brokers, while 44% relied on market
rumors. This suggests that a majority of the respondents trust professional guidance and expertise
from brokers when making investment decisions, while a significant portion still considers market
rumors, possibly due to their informal nature or quick access to information. The preference for
broker’s advice may indicate a higher level of trust in professional expertise and analysis for
making informed investment choices.

10.What is the most important factor when investing in stocks or an IPO?

(Rank from 1 to 4, with 1 being the most important)
1 2 3 4
Growth potential
Stability and low risk
Industry sector performance
 Other

Table 4.10: Most Important Factors When Investing in Stocks or an IPO

Factor Rank 1 Rank 2 Rank 3 Rank 4 Total

Votes
Growth potential 45 25 10 5 90
Stability and low risk 30 35 15 10 90
Industry sector 10 20 40 20 90
performance
Other 5 10 25 50 90

Most Important Factors When Investing in Stocks or

an IPO
60
50
50 45
40
40 35
30
30 25 25
20 20
20 15
10 10 10 10
10 5 5

0
Rank 1 Rank 2 Rank 3 Rank 4

Growth potential Stability and low risk Industry sector performance Other

Figure 4.10: Most Important Factors When Investing in Stocks or an IPO

INTERPRETATION:

From the data in Table 4.10: Most Important Factors When Investing in Stocks or an IPO, it
is clear that the majority of respondents prioritize growth potential when investing in stocks or
IPOs. A total of 45 respondents rated growth potential as the most important factor, while 25
ranked it second, 10 ranked it third, and only 5 ranked it last.

The second most important factor, according to the respondents, is stability and low risk. This
factor was ranked first by 30 respondents, second by 35, third by 15, and fourth by 10.

Industry sector performance, while important, received lower rankings overall. Only 10
respondents selected it as the most important factor, while 20 ranked it second, 40 ranked it third,
and 20 ranked it as the least important factor.
Lastly, the "Other" category had fewer respondents considering it the most important factor, with
only 5 giving it the top rank, 10 ranking it second, 25 ranking it third, and a significant 50
respondents selecting it as the least important factor. This suggests that while some investors might
consider other factors, it is not as significant in comparison to growth potential, stability, and
industry sector performance.

11. Do You Think Investing in The Stock Market Is a Good Idea?

a) Yes b) No
Table 4.11: Opinion On Investing in The Stock Market
Options No. of Respondents Percentage (%)
Yes 70 78%
No 20 22%
 Opinion On Investing in The Stock Market
90%
78%
80%
70%
60%
50%
40%
30% 22%
20%
10%
0%
Yes No

Percentage (%)

Figure 4.11: Opinion On Investing in The Stock Market

INTERPRETATION:

From the data in Table 4.11: Opinion on Investing in The Stock Market, it is evident that a
large majority of respondents believe that investing in the stock market is a good idea. A total of
70 respondents, or 78%, answered "Yes," while only 20 respondents, or 22%, answered "No." This
indicates a strong positive outlook among the respondents regarding the benefits and potential of
investing in the stock market.

FINDINGS:

✓ IPO funds raised significantly increased from 1989-90 to 2024-25, peaking at Rs. 1,30,376
crores in 2021-22.
✓ Total IPO funds raised during this period amounted to Rs. 2,11,127 crores.
 ✓ IPO returns initially showed a positive return of 5.45%, but turned negative over time,
reaching -34.19%.
✓ Public sector IPOs outperformed private sector IPOs in terms of stability and long-term
returns.
✓ Most respondents (56%) primarily invest in the stock market, while 44% focus on the IPO
market.
✓ Political stability and economic conditions were identified as the most important external
factors affecting investment decisions.
✓ Growth potential was ranked as the most important factor when investing in stocks or IPOs.
✓ A majority of respondents (78%) believed that investing in the stock market is a good idea.

SUGGESTIONS:

✓ Companies should focus on long-term value creation to build investor trust and reduce
volatility.
 ✓ Conduct thorough due diligence on underwriters and pricing strategies to ensure accurate
IPO pricing.
✓ Transparent communication with investors is key to managing expectations and preventing
surprises.
✓ Launch IPOs during stable market conditions to improve chances of success.
✓ Strengthen financial positions and reduce debt before going public to attract investors.
✓ Build strong post-IPO relationships with investors through regular updates and
transparency.
✓ Diversify into growing sectors like technology and healthcare to reduce risk and attract
more investors.
✓ Educate potential investors about IPO risks and opportunities to ensure informed decisions.

CONCLUSION:

In conclusion, the data and analysis presented highlight key factors influencing investor behavior
and the performance of IPOs. It is evident that investors prioritize long-term value creation,
transparency, and a company's reputation when making investment decisions. Furthermore, market
conditions, both domestic and global, play a crucial role in shaping investment preferences, with
political and economic stability being the most influential external factors. Public Sector IPOs are
currently favored due to their consistent returns, despite the higher growth potential often
associated with Private Sector IPOs. Companies planning to go public should focus on building
strong financial positions, transparent communication, and careful pricing strategies to attract and
retain investor confidence. Additionally, the increasing importance of innovation, diversification,
and investor education points to a need for companies to remain adaptable and transparent in an
evolving market landscape. Overall, both companies and investors can benefit from a well-
informed, strategic approach to IPO investments.

ANNEXURE:
Personal Information:
1. Name:
2. Gender:
a) Male b) Female
3. Age Range:
a) 18-25 years b) 26-35 years c) 36-50 years d) 50 & above
4. Do you invest in the Primary market?
a) Yes b) No
5. How long have you been investing?
a) Less than 1 year b) 2 - 5 years c) 6 - 10 years d) More than 10 years
5. What is the criteria for investing in an IPO?
(Rank from 1 to 6, with 1 being the most important)
1 2 3 4 5 6
Reputation of the
company
Company's past
performance
Company's
prospects/future
potential
Management of the
company
Industry/market
growth
Economic
conditions (Inflation,
interest rates, etc.)

6. Which market do you primarily invest in?

a) Stock Market b) IPO Market (Initial Public Offering)

7. What are the main factors affecting your investment decisions?

 Most Not so
Important Important Important
Political Situation
Economic Situation (Interest rates, Inflation, etc.)
Market performance (FII, Nasdaq, FTSE, etc.)
Foreign exchange rates
Foreign Direct Investment (FDI)
Domestic market conditions
Central Bank policies

8. Which sector do you prefer to invest in?

a) Public Sector b) Private Sector
9. What kind of investment advice do you prefer?
a) Broker’s advice b) Market rumors
10.What is the most important factor when investing in stocks or an IPO?
(Rank from 1 to 4, with 1 being the most important)
1 2 3 4
Growth potential
Stability and low risk
Industry sector performance
Other

11. Which of the following return ranges do you expect from your investments in 1 year?
a) Up to 10% b)10% to 25% c)26% to 50% d) More than 50% e) Loss
12. Do you think investing in the stock market is a good idea?
a) Yes b) No
 BIBLIOGRAPHY

Web Sites

• Company Website: www.sharekhan.com

 • http://www.bseindia.com/bookbuilding/bookbuildinghist.asp?status=h&irflag=IPO
• http://www.nseindia.com/marketinfo/ipo/ipo_pastissues.jsp
• http://www.moneycontrol.com/ipo/
• http://en.wikipedia.org/wiki/Initial_public_offering
• http://www.gbmf.info/2009/Investor_preference_Sasi%20Kumer.pdf
• http://www.indiainfoline.com/MarketStatistics/NSE-Sector-Performance
• http://business.mapsofindia.com/ipo-india/
• http://economictimes.indiatimes.com/ipohome.cms
• http://www.investopedia.com/university/ipo/
• http://www.investment uruindia.com/IPO_Profile.aspx
Books

• Business Research Methods, William G Zikmund 7th Edition

• National Stock Exchange NCFM Module Capital Markets Basic Module
• Ken Black, Business Statistics for Contemporary Decision Making, Wiley
India, 5e
Journals

• Chandrasekhar Krishna murti, Pradeep Kumar, "The initial listing

performance of Indian IPOs", Managerial Finance, Vol. 28 Is: 2, pp.39 – 51
• K.C John Sasi Kumar “Indian Primary Market – Review”, International
Journal Vol. 1