Empherical Study Title FINAL

CRITICAL ANALYSIS OF IPOs FAILURE
A study cond ucted for finding reason

Subm it te d i n par tia l fulf il lment of t he re quireme nt of t he Po st Gra dua te Di plo ma i n B usi ne ss Mana geme nt
By
Dhire ndra Kr . Si ng h Ni ti n Gos wam i Pi y us h Kr . T ul si an V i pi n Si ng h
Under the Guidance of (Prof. Swati Basu Ghose)
M.S. Ramaiah Institute Of Management M S Ramaiah Nagar, MSRIT POST, B A NGA LORE 560 054
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Certificate of Guide
Certified that this dissertation is based on an original project study conducted by Mr. Dhirendra Kr. Singh, Mr. Nitin Goswami, Mr. Piyush Kr. Tulsian, Mr. Vipin Singh under my guidance. This has not formed a basis for the award of any other Degree/Diploma by any University.
Place : Bangalore Date : ____________
GUIDES SIGNATURE (SWATI BASU GHOSE)
STUDENT DECLARATION
I declare that the project titled Critical Analysis of IPOs failure is an original project done by us and no part of the project is taken from any other project or materials published or otherwise submitted earlier to any other college or University.
STUDENTS SIGNATURE
Acknowledgements
Every work needs concentration, dedication and appreciation but only those are not enough to achieve any goal. Some guidance, some assistance and cooperation of few people play a vital role. We express our gratitude to our project guide who helped us at every inch of this report work. We take the opportunity to express our sincere thanks & profound attitude to the management and the faculties at M.S. Ramaiah Institute of Management and specially to our Project Guide Prof. Swati Basu Ghose for giving us continuous support and valuable suggestion in context of our Empirical Study. We also express our sincere thanks to our colleagues who came up
with ideas which helped us in making this study more effective.

As we know that research work needs hard work, keen insight and long patience with scholarly vision based on constant operations. It also need inspiration from the project guide and we again want to thank our guide for motivating us for conduction brief study on Rural India which helped us in knowing Rural India take on IPO.
Dhirendra Kumar Singh Nitin Goswami Piyush Kumar Tulsian Vipin Singh
LIST OF CONTENTS
Sr No.
Contents Acknowledgement Executive Summary Body of Project Firms are going for I P O Risk of firms associated with IPO Book Building Process Conclusion on Book Building Process Grading of IPO Number of IPO in 2009-10 Responses Of Questionnaire Conclusion -Reasons why IPO Fails Rural India Reason why Rural India dont Invest Suggestion and Recommendation Appendix Bibliography
Page No. 4 6-7 8 9-11 12 13-22 23-24 25-31 32-95 96-100 101-110 111-116 117-120 121-135 136-138 139
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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
EXECUTIVE SUMMARY
Indian Stock Markets are one of the oldest in Asia. Its history dates back to nearly 200 years ago. In 1935, the stock market activity improved, especially in South India where there was a rapid increase in the number of textile mills and many plantation companies were floated. In today scenario the term which make buzz in Indian market is IPO. 22 IPOs were issued in 2009 and still many more to go before financial year 2009-10 gets over. IPO sold shares worth about Rs 20000 crore to the public shareholders in 2009-10. 60-70 number of IPOs are expected to come in 2010-2011 and the revenue generated will be much more. Every year No. of Investors looses their money in share market and much of the reason for lost is their investment in IPO due to various speculative rumors and over decorative balance sheets of such IPO companies. Our main objective of empirical study is to find the reason why IPOs fails and for that finding we have studied various different aspects associated with IPOs. Starting our study with various process of pricing IPO, which results in over-pricing and under pricing of IPOs. We had studied different processes to go in depth of IPO and to find the reason where problem really resides. We had made suggestion regarding IPO pricing process which will help companies to price their IPO in such a way that it dont fails in long run. Then we had taken Grading system of IPO under our study. Most of the people ignore it and due to its ignorance companies take its advantage and investor losses their investment. We had discussed various Grading firm and their process, it will give information to investor about grading process and how to consider Grading of IPO a step of evaluation before Investment in IPO. We had studied details of various 22 different companies whose IPO came in market in year 2009 and recorded their volumes of next 3 trading days to issue date. Their issue price at BSE and NSE were also mentioned in study.
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Though most of them seems doing pretty good because of favorable market condition and FII cash inflow but situation was not same in year 2008 when majority of IPO failed miserably. Further in study we have included Reasons why IPO Fails in which we have covered four main reasons related to pricing, grading, accounting and psychological. Due to our special interest in Rural India we had included our sub objective to find the Role of Rural India in IPO and try to figure out reasons why Rural India dont invest in IPOs. Our special thanks to our project guide who been motivating force through out the project . We had made conclusion on base of all surveys, study, details and research we had done during our Empirical Study. In our conclusion we had designed four different classes of IPO, this is an original model which we tried to present to reader in most simple way to understand. Following which we made our suggestions to Investors about the factors to be watch before investing in IPO.
Because smart investment will not only save investor from loss but will also save IPO from failing.
BODY OF THE PROJECT

We think our study is possibly of greatest interest to potential investors, but also to anybody that would be affiliated with the firm - an auditor, an underwriter, the lawyers who consult with the firm, employees or executives who might consider joining that firm . So we think there are many constituents with a vested interest in the firm that would have a heightened sense of interest in the company's failure risk. Financial accounting plays an important role in assessing IPO failure risk, and basing their study on this approach, they developed failure prediction models for high-tech and old economy' or non-tech IPOs. Followed up with Grading system and various accounting changes which companies make to make their IPO popular. We are trying to go in depth of IPOs and to figure out all the process associated with IPO pricing to IPO issuing. In the study we try to predict failure rather than success of new listings. "It's unrealistic to expect that one can predict beyond five years of the date that the company goes public, so looking longer than that does not really make sense. And not a lot of companies frankly fail within just a few years of going public because it's such a high hurdle to pass, just to go through the public offering process, that they're not that weak that they're going to fail within just a few years."
Firms are going for IPO

Making a public offering of stock ("going public") is a financing option for Well-established small firms. In addition to its potential of generating large amounts of growth capital, public offerings also provide a way for owners to profit more immediately from their success and help overcome some of the tax issues faced when passing the business to the next generation. When business owners speak of going public, they are usually talking about an initial public offering (IPO), in which stock is registered with the Bombay Stock Exchange (BSE) or National Stock Exchange (NSE)and offered to the public through an investment banker or brokerage firm . Brief introduction of IPO goes as follow : "An initial public offering (IPO) is the first sale of a corporation's common shares to public investors. The main purpose of an IPO is to raise capital for the corporation." The decision to take a company public in the form of an Initial Public Offering (IPO) should not be considered lightly. There are several advantages and disadvantages to being a public company, which should thoroughly be considered. This empirical study will discuss the advantages and disadvantages of conducting an IPO and will briefly discuss the steps to be taken to register an offering for sale to the public. The purpose of this empirical study is to provide a thumbnail sketch of the process. Other than raising capital, the reasons for IPOs which we found were: 1. Liquidation of the shares of the company so that the founders and the rest of the existing shareholders will be able to "cash out" and trade their shares for cash or other traded stocks (referred to as "exit event"). 2. Increased Capital. A public offering will allow a company to raise capital to use for various corporate purposes such as working capital, acquisitions, research and development, marketing, and expanding plant and equipment.
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3. Expansion of the company into new territories or markets may require the company to become public, not only by means of more funding, but also by regulatory or marketing reasons. Being public is associated with credibility and accountability. 4. Expansion of the company either by acquisition or merger. Getting more money into the company allows the company to have more money to finance takeovers or mergers with other companies. Moreover, being public will allow the company to merge with private companies who want to become public without going through IPO (referred to as "reverse merger"). 5. Leveraging future sales or business to create extra value for the company. In some cases, it is possible for a company to gain more money by pushing up the price of its traded shares more than by actual sales or business events. In the "happy dot com days" companies would buy other companies just because it created a good hype to their stock, even though the acquired company was closed shortly after that. 6. Valuation. Public trading of a company's shares sets a value for the company that is set by the public market and not through more subjective standards set by a private valuator. This is helpful for a company that is looking for a merger or acquisition. It also allows the shareholders to know the value of the shares. There are numerous disadvantages to going public. - Time and Expense : Conducting an IPO is time consuming and expensive. A successful IPO can take up to a year or more to complete and a company can expect to spend several hundreds of thousands of dollars on attorneys, accountants, and printers. In addition, the underwriter's fees can range from 3% to 10% of the value of the offering. Due to the time and expense of preparation of the IPO, many companies simply cannot afford the time or spare the expense of preparing the IPO. - Disclosure : The Securities and Exchange Commission (SEC) disclosure rules are very extensive. Once a company is a reporting company it must provide information regarding compensation of senior management,
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transactions with parties related to the company, conflicts of interest, competitive positions, how the company intends to develop future products, material contracts, and lawsuits. In addition, once the offering statement is effective, a company will be required to make financial disclosures, public companies required to file quarterly statements containing unaudited financial statements and audited financial statements annually. These statements must also contain updated information regarding nonfinancial matters similar to information provided in the initial registration statement. This usually entails retaining lawyers and auditors to prepare these quarterly and annual statements. In addition, a company must report certain material events as they arise. This information is available to investors, employees, and competitors. - Decisions based upon Stock Price : Management's decisions may be effected by the market price of the shares and the feeling that they must get market recognition for the company's stock. - Regulatory Review : The Company will be open to review by the Securities and Exchange Commission (SEC) to ensure that the company is making the appropriate filings with all relevant disclosures. - Falling Stock Price : If the shares of the company's stock fall, the company may lose market confidence, decreased valuation of the company may effect lines of credits, secondary offering pricing, the company's ability to maintain employees, and the personal wealth of insiders and investors. - Vulnerability : If a large portion of the company's shares are sold to the public, the company may become a target for a takeover, causing insiders to lose control. A takeover bid may be the result of shareholders being upset with management or corporate raiders looking for an opportunity. Defending a hostile bid can be both expensive and time consuming. Once a company has weighed the advantages and disadvantages of being a public company, if it decides that it would like to conduct an IPO it will have to retain a lead underwriter to sell the securities, an attorney to assist in the preparation of a registration statement, and auditors to prepare financial statements.
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Risk of firm associated with IPO
The question of why IPO firms fail is also of great interest. Do these firms run out of cash? Are these firms faced with a precipitous decline in sales? Are credit constraints responsible for the failure? Does increased competition adversely impact or squeeze the firms gross margins? Is a negative shock likely to affect all firms in the same industry? Answering the aforementioned questions of why IPO firms fail would then help to identify corresponding failure prediction variables such as an IPO firms cash burn rate, growth rate, debt maturity, intensity of product market competition, and overall industry risk. Firms are going public now that are riskier than they used to be in the past. They are exhibiting lower levels of profitability and often negative profitability when they go public and that was much less common in past decades. Much of their value resides in future growth prospects rather than past realizations of success, so the characteristics of the firms that are going to public markets and the willingness of shareholders in the public markets to fund those types of firms have really changed over the decades For the purpose of the study, we did not include internet firms as they may have distorted the results, especially given the internet bubble of the late 90s which burst so dramatically in March 2000. Technically we define hightech firms to be any firm that has R&D expenses that are greater than 5% of sales or total assets. Hedge funds and portfolio managers have shown interest in their failure prediction model, Companies made statement by saying "What we did was devise a hedge strategy of going long in firms with low failure risk and short in firms that had high failure risk and we document that we could have earned significant abnormal returns from such a hedged trading strategy based on our model.
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BOOK BUILDING PROCESS
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SEBI guidelines, 1995 defines book building as a process undertaken by which a demand for the securities proposed to be issued by a body corporate is elicited and built up and the price for such securities is assessed for the determination of the quantum of such securities to be issued by means of a notice, circular, advertisement, document or information memoranda or offer document. Book building process is a common practice used in most developed countries for marketing a public offer of equity shares of a company. However, book building is a transparent and flexible price discovery method of initial public offerings (IPOs) in which price of securities is fixed by the issuer company along with the Book Running Lead Manager (BRLM) on the basis of feedback received from investors as well as market intermediaries during a certain period.
History of Book Building Process

The abolition of the Capital Issue Control Act, 1947 has brought a new era in the primary capital markets in India. Controls over the pricing of the issues, designing and tenure of the capital issues were abolished. The issuers, at present, are free to make the price of the issues. Before establishment of SEBI in 1992, the quality of disclosures in the offer documents was very poor. SEBI has also formulated and prescribed stringent disclosure norms in conformity to global standards. The main drawback of free pricing was the process of pricing of issues. The issue price was determined around 60-70 days before the opening of the issue and the issuer had no clear idea about the market perception of the price determined. The traditional fixed price method of tapping individual investors suffered from two defects: (a) delays in the IPO process and (b) under-pricing of issue. In fixed price method, public offers do not have any flexibility in terms of price as well as number of issues. From experience it can be stated that a majority of the public issues coming through the fixed price method are either under-priced or over-priced. Individual investors (i.e. retail investors), as such, are unable to distinguish good issues from bad one. This is because the issuer Company and the merchant banker as lead
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manager do not have the exact idea on the fixed pricing of public issues. Thus it is required to find out a new mechanism for fair price discovery and to help the least informed investors. Thats why, Book Building mechanism, a new process of price discovery, has been introduced to overcome this limitation and determine issue price effectively. Public offers in fixed price method involve a pre issue cost of 2-3% and carry the risk of failure if it does not receive 90% of the total subscription. In Book Building such cost and risks can be avoided because the issuer company can withdraw from the market if demand for the security does not exist. Malegam Panels Recommendations: The introduction of book-building in India in 1995 was on account of the recommendations of an expert committee appointed by SEBI under Chairmanship of YH Malegam to review the (then) existing disclosure requirements in offer documents. Two of the terms of reference being the basis of pricing the issue and whether substantial reduction was possible in the time taken for processing applications by SEBI. The committee has submitted its report with several recommendations and the SEBI accepted the same in November 1995. The book-building route should be open to issuer companies, subject to certain terms and conditions. Some of them are presented below: 1. The option should be available only to issues exceeding Rs. 100 crore; 2. The book-building issuer companies could either reserve the securities for firm allotment or avail themselves of the book-building process; 3. Draft prospectus to be submitted to SEBI could exclude information about the offer price; 4. A book runner to be nominated from among the lead merchant bankers, charged with specific responsibilities and the name is to be submitted to the SEBIs approval. 5. The requirement of 25 percent of the securities to be offered to the public will be continued.
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However, there were no takers for the 100 percent book-building facility. Based on suggestions made by leading merchant bankers, the following amendments were made to the guidelines in 1999: 1. The issuer may be allowed to disclose either the issue size or the number of securities to be offered to the public; 2. Allotment should be in demat mode only; and 3. Reservation of 15 percent of issue amount for individual investors need to the public at a fixed price. Book Building and Fixed Price Option in the IPOs A company may raise capital in the primary capital market through initial public offers (IPOs), rights issues and private placement. IPOs, the largest sources of funds in the primary capital market, to the company are basically an invitation by a company to the public to subscribe to its securities offered through prospectus. In fixed price process in IPOs, allotments of shares to all investors are made on proportionate basis. Institutional investors normally are not interested to participate in fixed price public issues due to uncertainty of allotment and lack of opportunity cost. On the other, they like to participate largely in book built transactions as in this process the costs of public issue and the time taken for the completion of the entire process are much lesser than the fixed price issues. In Book Building the price is determined on the basis of demand received or at price above or equal to the floor price whereas in fixed price option the price of issues is fixed first and then the securities are offered to the investors. In case of Book Building process book is built by Book Runner Lead Manager (BRLM) to know the everyday demand whereas in case of fixed price of public issues, the demand is known at the close of the issue.
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Book Building Process
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Steps involved in Book Building Process
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According to the SEBI, a public issue through Book Building route should consist of two portions: (a) The Book Building portion and (b) The fixed price portion. The fixed price portion is conducted like normal public issues (conventionally followed earlier) after the book built portion during which the issue price is fixed after the bid closing date. Basically, an issuer company proposing to issue capital through book building shall comply with the guidelines prescribed by SEBI. However, the main theme of SEBI guidelines regarding book building can be presented at a glance in the following manner: 1. 75% Book Building process: Under this process 25% of the issue is to be sold at a fixed price and the balance 75% through the Book Building process.
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2. Offer to public through Book building process: The process specifies that an issuer company may make an issue of securities to the public through prospectus in the following manner: a. 100% of the net offer to the public through book-building process, or b. 75% of the net offer to the public through book-building process and 25% of the net offer to the public at the price determined through book building process
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Limitations of Book Building Mechanism

Retail investors are not free from certain disadvantages compared to institutional investors in Book Building, which does not provide an appropriate price discovery mechanism. It is the main reason why small investors have stayed away from the market. It needs changes to make it more suitable to the Indian context and the conditions prevailing in the Indian capital market. In the IPOs through the Book-Building route, it would be difficult to find dubious issues of the kind that put off investors. The book-building system has various limitations. Some of them are as are as follows: 1. Book-building is appropriate for mega issues only. In the case of the potential investors, the companies can adjust the attributes of the offer according to the preferences of the potential investors. It may not be possible in big issues since the risk-return preference of the investors cannot be estimated easily; 2. The issuer company should be fundamentally strong and well known to the investors; 3. The book-building system works very efficiently in matured market conditions. In such circumstances, 4. The investors are aware of the various parameters affecting the market price of the securities. But, such conditions are not commonly found in practice; 5. There is a possibility of price rigging on listing as promoters may try to bail out syndicate members.
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Green Shoe Option

In most of the cases, it is experienced that IPO through Book Building method in India turns out to be overpriced or underpriced after their listing of them and ultimately the small investors become a net looser. If the IPO is overpriced it creates a bad feeling in investors mind as initial returns to them may be negative at that point of time. On the other side, if the prices in the open market fall below the issue price, small investors may start selling their securities to minimize losses. Therefore, there was a vital need of a market stabilizer to smoothen the swings in the open market price of a newly listed share, after an initial public offering. Market stabilization is the mechanism by which stabilizing agent acts on behalf of the issuer company, buys a newly issued security for the limited purpose of preventing a declining in the new securitys open market price in order to facilitate its distribution to the public. It can prevent the IPO from huge price fluctuations and save investors from potential loss. Such mechanism is known as Green Shoe Option (GSO) which is an internationally recognized for market stabilization. So, GSO can rectify the demand and supply imbalances and can stabilize the price of the stock. It owes its origin to the Green ICICI Bank has, used Green Shoe Option in first time in case of its public issue through the book building mechanism in India. As such, such important mechanism i.e. GSO in the system of initial public offerings (IPOs) using book building method was recognized by SEBI in India through its new guidelines on 14.08.2003 . In case an initial public offer of equity shares is made by an issuer company through the book building mechanism, the Green Shoe option (GSO) can be used by such company for stabilizing the post listing price of its shares, subject to the guidelines prescribed by SEBI.
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Our Conclusion on Book Building Process

Book Building process aims at fair pricing of the issue which is supposed to emerge out of offers made by various investors. One question may arise whether book building is the right mechanism for fair pricing discovery in IPOs? The answer may be in the negative because a floor price is fixed for the Book Building below which no bid can be accepted. Since investors participate through Book Building process in making fair pricing of IPOs where there is no ceiling price, there should not be any floor price. In addition to this, unlike international market, India has not reached the stage of development of the institutional framework to experiment with the book building process because retail investors (i.e. individual investors) are still now an integral part of Indian capital market. If the interests of the small investors are not safeguarded appropriately, this may be very dangerous to the primary capital market.
History Flash Back

Although only two book built issues Hughes software and HCL Technologies have given proper returns to the shareholders in 1999 and Maruti Udyog in 2003 but the other four book built issues of Shree Ram a Multitech, Cadila, Cinevista and Mascot system were trading at huge discounts to their issue price ranging between 35-50%.
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GRADING OF
IPO
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Grading of Initial Public Offerings (IPOs) is a service aimed at facilitating assessment of equity issues offered to the public. The Grade assigned to any individual IPO is a symbolic representation of rating agencys assessment of fundamentals of the issuer concerned relative to other listed securities. IPO Grades are assigned on a five-point point scale, where IPO Grade 5 indicates the highest grading and IPO Grade 1 indicates the lowest grading, i.e a higher score indicates stronger fundamentals. An IPO Grade is not an opinion on the price of the issue, pre- or post-listing.
Credit Analysis & Research Ltd. (CARE)
Credit Analysis & Research Ltd. (CARE) is a full service rating company that offers a wide range of rating and grading services across sectors. CARE has an unparallel depth of expertise. CARE Ratings methodologies are in line with the best international practices. CARE Ratings has completed over 3656 rating assignments having aggregate value of about Rs 7141 billion (as at September 2007), since its inception in April 1993. CARE is recognized by Securities and Exchange Board of India (Sebi), Government of India (GoI) and Reserve Bank of India (RBI) etc. CARE Ratings: The ratings division of CARE has over a decade long experience in rating debt instruments/Enterprise ratings covering the full spectrum of Universe comprising:

Industrial Companies Service companies Infrastructure companies

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Banks Financial Institutions (FIs) Non-Bank Finance companies(NBFCs) Public Sector Undertakings (PSUs) State Government Undertakings Municipal Corporations Structured Finance Transactions Securitization Transactions SMEs SSI Micro Finance Institutions
Services offered by CARE are

Corporate Governance ratings IPO grading Mutual Fund Credit quality Ratings Insurance Claims Paying Ability Ratings Issuer Ratings Grading of Construction entities Grading of Maritime training institutes LPG/SKO Ratings
CARE Ratings has been recognized by statutory authorities and other agencies in India for rating services. The authorities/agencies include: Securities and Exchange Board of India (Sebi), Reserve Bank of India (RBI), Director General, Shipping and Ministry of Petroleum and Natural Gas (MoPNG), Government of India (GoI), National Housing Bank (NHB), National Bank for Agriculture and Rural development (NABARD), National Small Scale Industries Commission (NSIC). CARE Ratings has also been recognized by RBI as an Eligible Credit Rating Agency (ECRA) for Basel II implementation in India. CARE Rating Process
The rating assigned is communicated to the client along with a detailed rationale.
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The ratings accepted by the clients are published and then monitored on a continuous basis over the life of the instrument. CARE has a comprehensive in-house data base which facilitates surveillance of the various industries and companies operating in these industries. Each rating is reviewed formally at least once a year, when analysts meet the issuers management. A review can also be triggered by a major development in the company or in the industry, which may have a significant bearing on the creditworthiness of the company. As a part of the review exercise, actual financial performance is analyzed in the light of the estimates made earlier and deviations are examined. CARE puts the rating under Credit Watch, when any event or deviation from the expected trend has occurred or is expected and additional information is necessary to take rating action. The rating may be retained, upgraded or downgraded based on the changed prospects for the issuer. A rating change is at the absolute discretion of CARE, without concurrence of the client.
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CRISIL (Credit Rating Information Services of India Limited)

In keeping with its pioneering work in the field of rating and grading services, Credit Rating Information Services of India Limited (CRISIL) has launched its IPO grading service. IPO grading is a globally unique concept introduced into the Indian market under the aegis of the Securities and Exchange Board of India (SEBI). The CRISIL IPO Grading is designed to provide investors an independent, reliable and consistent assessment of the fundamentals of new public issues. This offering may be especially useful to retail investors who are seeking to invest in companies that are unknown in the equity markets. CRISIL has played a central role in the conceptualization and development of the idea of IPO grading and believes that a grading provided by an independent entity would be a significant addition to the presently available tools for assessing the investment attractiveness of IPO offerings. The CRISIL IPO Grading includes an assessment of business and financial prospects, management quality and corporate governance; and reflects CRISILs unique understanding of these issues, particularly corporate governance. CRISIL IPO Grading are assigned by CRISIL Research, the research business of CRISIL. It deploys industry experts to assign the CRISIL IPO Grading. CRISIL Research pioneered the concept of industry research in India and its 16-year track record has enabled it to develop significant sector knowledge and expertise. CRISIL Research works independently from CRISIL Ratings. These two divisions in CRISIL do not share any confidential information provided to them by their respective clients. IPO Grade Assessment

5/5 4/5 3/5 2/5 1/5
Strong fundamentals Above average fundamentals Average fundamentals Below average fundamentals Poor fundamentals
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ICRA
ICRAs Grading of Initial Public Offerings (IPOs) is a service aimed at facilitating assessment of equity issues offered to the public. The Grade assigned to any individual IPO is a symbolic representation of ICRAs assessment of the fundamentals of the issuer concerned on a relative grading scale. IPO Grades are assigned on a five-point point scale, where IPO Grade 5 indicates the highest grading and IPO Grade 1 indicates the lowest grading, i.e a higher score indicates stronger fundamentals. An IPO Grade is not an opinion on the price of the issue, pre- or post-listing. The Grading Process: ICRA starts the IPO Grading process on receipt of a formal request from the issuer company. ICRA then sends a questionnaire seeking information on the companys existing operations as well as proposed project(s). This is followed by site visits and discussions with the key operating personnel of the company concerned. Apart from officials of the company, ICRA also meets its bankers, auditors, merchant bankers, and appraising authority (if any). If the case so merits, ICRA also obtains the views of independent expert agencies on critical issues like , for instance, the technology proposed to be used . Once all the required information has been obtained, ICRAs team of analysts presents a detailed Grading Report to ICRAs Rating Committee which then assigns the Grade. Usually, the assignment of Grade takes three to four weeks after all the necessary information has been provided to ICRA. Once the Grade is assigned, the issuer company is required to disclose the same and also publish it in the Red Herring Prospectus (RHP), which is filed with the Securities and Exchange Board of India (SEBI) and other statutory authorities . ICRA does not carry out any unsolicited Grading; the process involves the full co-operation of, and interaction with, the issuer company concerned. IPO Grading are a one-time exercise, not subject to subsequent surveillance.
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Grading Methodology: The emphasis of the IPO Grading exercise is on evaluating the prospects of the industry in which the company operates , the companys competitive strengths that would allow it to address the risks inherent in the business and effectively capitalise on the opportunities available as well as the companys financial position. In case the IPO proceeds are planned to be used to set up projects, either greenfield or brownfield, ICRA evaluates the risks inherent in such projects, the capacity of the companys management to execute the same, and the likely benefits accruing from the successful completion of the projects in terms of profitability and returns to shareholders. Due weightage is given to the issuer companys management strengths and weaknesses and issues , if any, from the corporate governance perspective. Accordingly, ICRAs IPO Grading methodology examines the following key variables: ICRAs IPO Grading Scale

ICRAs five -point IPO Grading scale is as follows: ICRA IPO Grade 5: Strong fundamentals ICRA IPO Grade 4: Above-average fundamentals ICRA IPO Grade 3: Average fundamentals ICRA IPO Grade 2: Below-average fundamentals ICRA IPO Grade 1: Poor fundamentals
What an ICRA IPO Grade Is Not:

It is NOT a recommendation to buy sell or hold the securities Graded It is NOT a comment on the valuation or pricing of the IPO Graded It is NOT an indication of the likely listing price of the securities Graded It is NOT a certificate of statutory compliance
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Number of IPO in 2009-2010
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Incorporated in 1995, D B Corp Ltd is one of the leading print media companies in India, publishing 7 newspapers, 48 newspaper editions and 128 sub-editions in three languages (Hindi, Gujarati and English) in 11 states in India. Company's flagship newspapers are Dainik Bhaskar, Divya Bhaskar and Saurashtra Samachar have a combined average daily readership of 15.5 million readers making them one of the most widely read newspaper groups in India. Objects of the Issue: The objects of the Issue are to achieve the benefits of listing on the Stock Exchanges & to raise capital to: 1. Setting up new publishing units; 2. Upgrading existing plant and machinery; 3. Enhancing brand image through sales and marketing; 4. Reducing existing working capital loans; 5. Prepaying existing term loans; and 6. Achieving the benefits of listing. Issue Detail: Issue Open: Dec 11, 2009 - Dec 15, 2009 Issue Type: 100% Book Built Issue IPO Issue Size: 18,175,000 Equity Shares of Rs. 10 Issue Size: Rs. 385.31 Crore Face Value: Rs. 10 Per Equity Share Issue Price: Rs. 185 - Rs. 212 Per Equity Share Market Lot: 30 Shares
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Minimum Order Quantity: 30 Shares Listing At: BSE, NSE
D B Corp Ltd IPO Grading / Rating CARE has assigned an IPO Grade 4 to D B Corp Ltd IPO. This means as per CARE, company has above average fundamentals. CARE assigns IPO grading on a scale of 5 to 1, with Grade 5 indicating strong fundamentals and Grade 1 indicating poor fundamentals. Bidding Status (IPO subscription detail): Number of Times Issue is Subscribed (BSE + NSE) Qualified Retail Non Institutional Individual As on Date & Time Institutional Total Buyers Investors Investors (QIBs) (RIIs) 7,633,500 1,817,500 5,452,500 14,903,500 Shares Offered / Reserved Day 1 - Dec 11, 2009 17:00 IST 3.7986 0.5220 0.0179 2.0200 Day 2 - Dec 14, 2009 17:00 IST 4.4664 0.7380 0.2008 2.4500 Day 3 - Dec 15, 2009 17:00 IST 68.5217 26.1732 3.4209 39.5400 IPO Listing Detail Listing Date: BSE Script Code: NSE Symbol: Listing In: Sector: ISIN: Issue Price: Face Value: Wednesday, January 06, 2010 533151 DBCORP 'B' Group Media and Entertainment INE950I01011 Rs. 212.00 Per Equity Share Rs. 10.00 Per Equity Share
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Listing Day Trading Information Issue Price: Open: Low: High: Last Trade: Volume: BSE Rs. 212.00 Rs. 250.00 Rs. 235.50 Rs. 274.60 Rs. 265.90 19,917,851 NSE Rs. 212.00 Rs. 254.00 Rs. 250.55 Rs. 274.70 Rs. 265.90 32,223,215
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Incorporated in 1990, Godrej Properties Limited (GPL) is one of the leading real estate development companies in India based in Mumbai, Maharashtra. Godrej Properties currently have real estate development projects in 10 cities in India, which are at various stages of development. Company's business focuses on residential, commercial and township developments. Godrej Properties parent company, Godrej Industries Limited, currently holds 80.26% of their equity share capital. Godrej Industries Limited is the listed flagship company of the Godrej group of companies. Objects of the Issue: The objects of the Issue are to achieve the benefits of listing on the Stock Exchanges & to raise capital to: 1. Acquisition of land development rights for Forthcoming Projects; 2. Construction of their Forthcoming Project; 3. Repayment of loans; and 4. General Corporate Purposes. Issue Detail: Issue Open: Dec 09, 2009 - Dec 11, 2009 Issue Type: 100% Book Built Issue IPO Issue Size: 9,429,750 Equity Shares of Rs. 10 Issue Size: Rs. 462.06 Crore Face Value: Rs. 10 Per Equity Share
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Issue Price: Rs. 490 - Rs. 530 Per Equity Share Market Lot: 13 Shares Minimum Order Quantity: 13 Shares Listing At: BSE, NSE Godrej Properties Ltd GPL IPO Grading / Rating ICRA has assigned a 'ICRA IPO Grade 4' [Grade Four] to the proposed IPO issue of Godrej Properties Ltd (GPL). 'ICRA IPO Grade 4' indicates above average fundamentals. ICRA assigns IPO grades on a scale of Grade 5 to Grade 1, with Grade 5 indicating strong fundamentals and Grade 1 indicating poor fundamentals Bidding Status (IPO subscription detail): Number of Times Issue is Subscribed (BSE + NSE) Qualified Retail Non Institutional Individual As on Date & Time Institutional Total Buyers Investors Investors (QIBs) (RIIs) 3,960,505 942,975 2,828,925 7,732,405 Shares Offered / Reserved Day 1 - Dec 09, 2009 17:00 IST 2.3907 0.0074 0.0206 1.2300 Day 2 - Dec 10, 2009 17:00 IST 2.4261 0.0543 0.0833 1.2800 Day 3 - Dec 11, 2009 17:00 IST 7.4494 0.4090 0.3753 4.0000 IPO Listing Detail Listing Date: BSE Script Code: NSE Symbol: Listing In: Sector: ISIN: Issue Price: Face Value: Tuesday, January 05, 2010 533150 GODREJPROP B Group Real Estate INE484J01019 Rs. 490.00 Per Equity Share Rs. 10.00 Per Equity Share
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Incorporated in 1994, JSW Energy Limited (JSWEL) is a group company of Jindal South West (JSW) group headed by Mr.Sajjan Jindal. The JSW Group has a presence in the steel, power, cement, software, and infrastructure sectors. Other companies in JSW are JSW Steel Ltd, Jindal South West Mining Ltd, JSW Port, Jindal Praxair Oxygen Company Limited (JPOCL) and investment companies. JSWEL is the first Independent Power Producer (IPP) to be set up in the state of Karnataka. The company has set up 2 units of 130 MW each and both units are generating power using Corex gas and coal. Objects of the Issue: The objects of the Issue are to achieve the benefits of listing on the Stock Exchanges & to raise capital to: 1. To partially finance construction and development of the Identified Projects aggregating to 2,790 MW in capacity; 400 KV transmission project and mining venture. 2. Repayment of corporate debt; and 3. General Corporate Purposes. Issue Detail: Issue Open: Dec 07, 2009 - Dec 09, 2009 Issue Type: 100% Book Built Issue IPO Issue Size: Equity Shares of Rs. 10 Issue Size: Rs. 2,700.00 Crore
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Face Value: Rs. 10 Per Equity Share Issue Price: Rs. 100 - Rs. 115 Per Equity Share Market Lot: 60 Shares Minimum Order Quantity: 60 Shares Listing At: BSE, NSE JSW Energy Ltd IPO Grading / Rating CARE has assigned a 'CARE IPO Grade 4' [Grade Four] to the proposed IPO issue of JSW Energy Ltd (JSWEL). 'CARE IPO Grade 4' indicates above average fundamentals. CARE assigns IPO grades on a scale of Grade 5 to Grade 1, with Grade 5 indicating strong fundamentals and Grade 1 indicating poor fundamentals. Bidding Status (IPO subscription detail) : Number of Times Issue is Subscribed (BSE + NSE) Qualified Non Retail Institutio Institutio Individual nal Total nal Investors Buyers Investors (RIIs) (QIBs) 119,631,92 26,982,12 80,946,371 227,560,415 1 4 2.3633 2.7710 2.8846 0.0064 0.0548 0.1510 0.0185 0.0566 0.4040 1.2500 1.4800 1.6800
As on Date & Time Shares Offered / Reserved Day 1 - Dec 07, 2009 17:00 IST Day 2 - Dec 08, 2009 17:00 IST Day 3 - Dec 09, 2009 17:00 IST
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IPO Listing Detail Listing Date: BSE Script Code: NSE Symbol: Listing In: Sector: ISIN: Issue Price: Face Value: Monday, January 04, 2010 533148 JSWENERGY B Group INE121E01018 Rs. 95.00 Per Equity Share Rs. 10.00 Per Equity Share
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Incorporated in 1995, MBL Infrastructures Ltd is engaged in the construction and maintenance of roads and highways, industrial infrastructure projects and other civil engineering projects for various government bodies and other clients. MBL has executed and undertaken a number of projects in the states of West Bengal, Madhya Pradesh, Uttarakhand, Orissa, Maharashtra, Rajasthan, Assam, Uttar Pradesh, Bihar, Delhi, Andhra Pradesh, Chattisgarh, Jharkhand, Haryana and Karnataka. MBL is also engaged in steel trading and waste management (ferrous scrap and slag recycling) at major steel plants. Objects of the Issue: The objects of the Issue are to achieve the benefits of listing on the Stock Exchanges & to raise capital to: 1. Investment in Capital Equipments; 2. Investment in Joint Ventures and BOT Projects; 3. Margin Money for Working Capital Requirements; 4. General Corporate Purposes; 5. Issue Expenses. Issue Detail: Issue Open: Nov 27, 2009 - Dec 01, 2009 Issue Type: 100% Book Built Issue IPO
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Issue Size: 5,700,000 Equity Shares of Rs. 10 Issue Size: Rs. 102.60 Crore Face Value: Rs. 10 Per Equity Share Issue Price: Rs. 165 - Rs. 180 Per Equity Share Market Lot: 35 Shares Minimum Order Quantity: 35 Shares Listing At: BSE, NSE MBL Infrastructures Ltd IPO Grading / Rating ICRA has assigned an IPO Grade 2 to MBL Infrastructures Ltd IPO. This means as per ICRA, company has below average fundamentals. ICRA assigns IPO grading on a scale of 5 to 1, with Grade 5 indicating strong fundamentals and Grade 1 indicating poor fundamentals Bidding Status (IPO subscription detail): Number of Times Issue is Subscribed (BSE + NSE) Qualified Non Retail Employ Institutio Institut Individua ee nal ional l Total Reserva Buyers Investo Investors tions (QIBs) rs (RIIs) 840,000 1,960,000 1,960,000 100,000 4,860,000 0.0000 0.6791 3.3493 0.5325 0.9487 2.6459 0.0305 0.0511 0.3963 0.0973 0.1117 0.1376 0.1100 0.4600 1.9700
As on Date & Time Shares Offered / Reserved Day 1 - Nov 27, 2009 17:00 IST Day 2 - Nov 30, 2009 17:00 IST Day 3 - Dec 01, 2009 17:00 IST
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IPO Listing Detail Listing Date: BSE Script Code: NSE Symbol: Listing In: Sector: ISIN: Issue Price: Face Value: Monday, January 11, 2010 533152 MBLINFRA B Group of Securities Const/Bldg Material INE912H01013 Rs. 180.00 Per Equity Share Rs. 10.00 Per Equity Share
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Incorporated in 1939, Cox and Kings (India) Ltd is one of the Indias largest tour and travel operator. Company design travel packages for both individuals and groups for their domestic and international travel. Cox provides end to end travel solutions including land, air and cruise bookings, hotel bookings, in-transit arrangements, local sightseeing, visa, passport and medical insurance assistance and such other destination management services. They also provide value added services viz., customising travel plans for NRI customers, travel arrangements for Trade Fairs, providing private air charter services, etc. Objects of the Issue: The objects of the Issue are to achieve the benefits of listing on the Stock Exchanges & to raise capital to: 1. Repayment of Loans; 2. Acquisitions & Other Strategic Initiatives; 3. Investment in Overseas Subsidiaries; 4. Investment in Corporate Office & Upgrading our existing Operations; 5. General Corporate Purposes; 6. Meeting Fresh Issue related Expenses. Issue Detail: Issue Open: Nov 18, 2009 - Nov 20, 2009
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Issue Type: 100% Book Built Issue IPO Issue Size: 18,496,640 Equity Shares of Rs. 10 Issue Size: Rs. 610.39 Crore Face Value: Rs. 10 Per Equity Share Issue Price: Rs. 316 - Rs. 330 Per Equity Share Market Lot: 20 Shares Minimum Order Quantity: 20 Shares Listing At: BSE, NSE Cox and Kings (India) Ltd IPO Grading / Rating CARE has assigned an IPO Grade 4 to Cox and Kings (India) Ltd IPO. This means as per CARE, company has above average fundamentals. CARE assigns IPO gradings on a scale of 5 to 1, with Grade 5 indicating strong fundamentals and Grade 1 indicating poor fundamentals Bidding Status (IPO subscription detail): Number of Times Issue is Subscribed (BSE + NSE) Qualified Retail Non Institutional Individual Employee As on Date & Time Institutional Total Buyers Investors Reservations Investors (QIBs) (RIIs) 6,403,840 2,744,496 6,403,824 200,000 15,752,160 Shares Offered / Reserved Day 1 - Nov 18, 2009 17:00 IST 1.0766 0.8304 0.0491 0.0001 0.6000 Day 2 - Nov 19, 2009 17:00 IST 1.6039 3.8492 0.1669 0.0515 1.3900 Day 3 - Nov 20, 2009 17:00 IST 9.9514 10.6975 0.9813 0.1076 6.3100
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IPO Listing Detail Listing Date: BSE Script Code: NSE Symbol: Listing In: Sector: ISIN: Issue Price: Face Value: Friday, December 11, 2009 533144 COX&KINGS 'B' Group of Securities INE008I01018 Rs. 330.00 Per Equity Share Rs. 10.00 Per Equity Share
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Incorporated in 1994, Astec LifeSciences Limited is engaged in business of Agrochemicals and Pharmaceuticals. Company is primarily involved in the production of active ingredients and intermediates for agrochemicals and pharmaceutical segment. Hexaconazole, Tebuconazole, Metalaxyl and Propiconazole are some of their key products in agrochemical segment which are generally used in crop protection and Dicap is one of the key Pharmaceutical intermediate which is used in manufacture of antifungal agents. Objects of the Issue: The objects of the Issue are to achieve the benefits of listing on the Stock Exchanges & to raise capital: 1. Expansion of our existing manufacturing facilities at Mahad, Maharashtra; 2. Expansion of our existing Research and Development facility at Dombivli, Maharashtra; 3. Meeting Registration expenses; 4. Meeting long-term working capital requirements; 5. General Corporate Purposes; 6. Issue Expenses. Issue Detail: Issue Open: Oct 29, 2009 - Nov 04, 2009 Issue Type: 100% Book Built Issue IPO Issue Size: 7,500,000 Equity Shares of Rs. 10
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Issue Size: Rs. 61.50 Crore Face Value: Rs. 10 Per Equity Share Issue Price: Rs. 77 - Rs. 82 Per Equity Share Market Lot: 75 Shares Minimum Order Quantity: 75 Shares Listing At: BSE, NSE
Astec LifeSciences Limited IPO Grading / Rating CARE has assigned an IPO Grade 2 to Astec LifeSciences Limited IPO. This means as per CARE, company has below average fundamentals. CARE assigns IPO gradings on a scale of 5 to 1, with Grade 5 indicating strong fundamentals and Grade 1 indicating poor fundamentals Bidding Status (IPO subscription detail):
Number of Times Issue is Subscribed (BSE + NSE) Retail Qualified Non Individual Employee Institutional Institutional Total Investors Reservations Buyers (QIBs) Investors (RIIs) 3,700,000 1,110,000 2,590,000 100,000 7,500,000 0.2798 0.0000 0.3957 0.0000 0.2700 0.5220 0.0000 0.4473 0.0270 0.4100 0.5220 0.0000 0.4956 0.1763 0.4300 0.6072 2.9997 2.3579 0.5010 1.5600
As on Date & Time
Shares Offered / Reserved Day 1 - Oct 29, 2009 17:00 IST Day 2 - Oct 30, 2009 17:00 IST Day 3 - Nov 03, 2009 17:00 IST Day 4 - Nov 04, 2009 17:00 IST
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IPO Listing Detail Listing Date: BSE Script Code: NSE Symbol: Listing In: Sector: ISIN: Issue Price: Face Value: Wednesday, November 25, 2009 533138 ASTEC B Group of Securities INE563J01010 Rs. 82.00 Per Equity Share Rs. 10.00 Per Equity Share
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Incorporated in 2007, Den Networks Limited is one of the largest national cable television companies in India engaged in the distribution of analog and digital cable television services. They launched their digital cable television services in February 2008 under the brand Digitelly. Den Networks currently provide cable television services in the National Capital Region of Delhi and the states of Uttar Pradesh, Rajasthan, Maharashtra, Gujarat, Karnataka, Haryana, Madhya Pradesh and Kerala. Objects of the Issue: The objects of the Issue are to achieve the benefits of listing on the Stock Exchanges & to raise capital: 1. To invest in the development of cable television infrastructure and services; 2. To invest in the development of cable broadband infrastructure and services; 3. To invest in acquisition of content and broadcasting rights; 4. To repay certain loans availed by the Company; 5. Fund expenditure for general corporate purposes. Issue Detail: Issue Open: Oct 28, 2009 - Oct 30, 2009 Issue Type: 100% Book Built Issue IPO Issue Size: 20,000,000 Equity Shares of Rs. 10 Issue Size: Rs. 390.00 Crore
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Face Value: Rs. 10 Per Equity Share Issue Price: Rs. 195 - Rs. 205 Per Equity Share Market Lot: 30 Shares Minimum Order Quantity: 30 Shares Listing At: BSE, NSE Den Networks Ltd IPO Grading / Rating ICRA has assigned an IPO Grade 3 to Den Networks Ltd IPO. This means as per ICRA, company has Average fundamentals. ICRA assigns IPO gradings on a scale of 5 to 1, with Grade 5 indicating strong fundamentals and Grade 1 indicating poor fundamentals Bidding Status (IPO subscription detail):
Number of Times Issue is Subscribed (BSE + NSE) Qualified Retail Non Institutional Individual Employee As on Date & Time Institutional Total Buyers Investors Reservations Investors (QIBs) (RIIs) Shares Offered / Reserved 9,454,980 1,975,000 5,925,000 250,000 17,604,980 Day 1 - Oct 28, 2009 17:00 IST 0.2484 0.0003 0.0345 0.0000 0.1500 Day 2 - Oct 29, 2009 17:00 IST 0.3387 0.1558 0.0494 0.0126 0.2200 Day 3 - Oct 30, 2009 17:00 IST 1.0004 4.1244 0.0963 0.6809 1.0400
IPO Listing Detail Listing Date: BSE Script Code: NSE Symbol: Listing In: Sector: ISIN: Issue Price: Face Value: Tuesday, November 24, 2009 533137 DEN B Group of Securities INE947J01015 Rs. 195.00 Per Equity Share Rs. 10.00 Per Equity Share
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Incorporated in 2007, Indiabulls Power Limited is a power project development company. Company develops and intends to operate and maintain power projects in India. The Company is a subsidiary of IBREL (Indiabulls Real Estate), a part of the Indiabulls Group and listed on the BSE and the NSE. IBREL is one of the largest real estate development companies in India. It focuses on construction and development of properties, project management, investment advisory and construction services. Objects of the Issue: The objects of the Issue are to achieve the benefits of listing on the Stock Exchanges & to raise capital: 1. To part finance the construction and development of the 1,320 MW Amravati Power Project Phase I; 2. Funding equity contribution in the Companys wholly owned subsidiary, IRL, to part finance the construction and development of the 1,335 MW Nashik Power Project; and 3. General corporate purposes. Issue Detail: Issue Open: Oct 12, 2009 - Oct 15, 2009 Issue Type: 100% Book Built Issue IPO Issue Size: 339,800,000 Equity Shares of Rs. 10 Issue Size: Rs. 1,529.10 Crore Face Value: Rs. 10 Per Equity Share
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Issue Price: Rs. 40 - Rs. 45 Per Equity Share Market Lot: 150 Shares Minimum Order Quantity: 150 Shares Listing At: BSE, NSE
Indiabulls Power Ltd IPO Grading / Rating CRISIL has assigned an IPO Grade "3/5" (pronounced "three on five") to Indiabulls Power Ltd IPO. This means as per CRISIL, company has average fundamentals. CRISIL assigns IPO gradings on a scale of 5 to 1, with Grade 5 indicating strong fundamentals and Grade 1 indicating poor fundamentals.L Bidding Status (IPO subscription detail): Number of Times Issue is Subscribed (BSE + NSE) Qualified Retail Non Institutional Individual As on Date & Time Institutional Total Buyers Investors Investors (QIBs) (RIIs) 142,716,000 33,980,000 101,940,000 278,636,000 Shares Offered / Reserved Day 1 - Oct 12, 2009 17:00 IST 10.8642 2.0041 0.3747 5.9500 Day 2 - Oct 14, 2009 17:00 IST 16.2126 2.9824 0.5212 8.8600 Day 3 - Oct 15, 2009 17:00 IST 40.4942 5.7636 1.0913 21.8400
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IPO Listing Detail Listing Date: BSE Script Code: NSE Symbol: Listing In: Sector: ISIN: Issue Price: Face Value: Friday, October 30, 2009 533122 IBPOW B Group of Securities Power - Generation and Supply INE399K01017 Rs. 45.00 Per Equity Share Rs. 10.00 Per Equity Share
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Thinksoft Global Services Limited was incorporated on June 8, 1998 as Relliant Global Services (India) Private Limited in Bangalore, Karnataka.
Thinksoft is a Banking, Financial Services and Insurance (BFSI) focused software testing enterprise. Thinksoft operates as a specialist and niche player in the financial and insurance software testing space. Company's service in the area of testing and business requirements assurance includes functional testing, performance testing, test automation and Requirements Documentation services. Objects of the Issue: The objects of the Issue are to achieve the benefits of listing on the Stock Exchanges & to raise capital: 1. To establish new testing center; 2. To meet issue expenses; 3. To get the shares listed on Stock Exchanges. Issue Detail: Issue Open: Sep 22, 2009 - Oct 01, 2009 Issue Type: 100% Book Built Issue IPO Issue Size: 3,646,000 Equity Shares of Rs. 10 Issue Size: Rs. 45.58 Crore Face Value: Rs. 10 Per Equity Share Issue Price: Rs. 115 - Rs. 125 Per Equity Share
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Market Lot: 50 Shares Minimum Order Quantity: 50 Shares Listing At: BSE, NSE
Thinksoft Global Services Ltd IPO Grading / Rating ICRA has assigned an IPO Grade 2 to Thinksoft Global Services Ltd IPO. This means as per ICRA, company has Below average fundamentals. ICRA assigns IPO gradings on a scale of 5 to 1, with Grade 5 indicating strong fundamentals and Grade 1 indicating poor fundamentals.
Bidding Status (IPO subscription detail): Number of Times Issue is Subscribed (BSE + NSE) Qualified Retail Non Institutional Individual Institutional Total Buyers Investors Investors (QIBs) (RIIs) 1,823,000 546,900 1,276,100 3,646,000 0.0000 0.0000 0.0319 0.0100 0.0000 0.0037 0.0960 0.0300 0.0000 1.0985 1.2954 0.6200 0.0000 1.1354 1.3225 0.6300 0.2057 2.2782 1.3459 0.9200 0.2057 2.3794 1.3788 0.9400 0.3100 6.0528 4.3064 2.5700
As on Date & Time Shares Offered / Reserved Day 1 - Sep 22, 2009 17:00 IST Day 2 - Sep 23, 2009 17:00 IST Day 3 - Sep 24, 2009 17:00 IST Day 4 - Sep 25, 2009 17:00 IST Day 5 - Sep 29, 2009 17:00 IST Day 6 - Sep 30, 2009 17:00 IST Day 7 - Oct 01, 2009 17:00 IST
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IPO Listing Detail Listing Date: BSE Script Code: NSE Symbol: Listing In: Sector: ISIN: Issue Price: Face Value: Monday, October 26, 2009 533121 THINKSOFT 'B' Group of Securities IT INE201K01015 Rs. 125.00 Per Equity Share Rs. 10.00 Per Equity Share
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Incorporated in 2004, Euro Multivision Limited (EML) is the second largest company engaged in the manufacturing of CD and DVD's. EML's manufacturing unit is situated at Taluka Bhachau, Kutch, Gujarat.
Company started with set up a plant for the manufacture of Compact Disc Recordables (CDRs) and Digital Versatile Disc Recordables (DVDRs). In 2005, Company added five manufacturing lines having an installed capacity of 720 Lac units of CDRs and 72 Lac units of DVDRs a year. In the year of 2006-07 company expanded the capacity by adding another 5 manufacturing lines with total installed capacity of CDRs to 1800 Lac units a year. These 10 manufacturing lines are interchangeable and convertible to manufacture DVDR and also compatible for manufacturing of pre recorded CD's and DVD's. EML is a part of EURO group which was promoted by Shri Nenshi Shah Objects of the Issue: The objects of the Issue are: 1. To setup photovoltaic solar cell manufacturing unit; 2. Listing of securities on Stock Exchanges; 3. General Corporate Purposes. Issue Detail: Issue Open: Sep 22, 2009 - Sep 24, 2009 Issue Type: 100% Book Built Issue IPO
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Issue Size: 8,800,000 Equity Shares of Rs. 10 Issue Size: Rs. 66.00 Crore Face Value: Rs. 10 Per Equity Share Issue Price: Rs. 70 - Rs. 75 Per Equity Share Market Lot: 90 Shares Minimum Order Quantity: 90 Shares Listing At: BSE, NSE
Euro Multivision Limited IPO Grading / Rating CARE has assigned an IPO Grade 3 to Euro Multivision Limited IPO. This means as per CARE, company has average fundamentals. CARE assigns IPO gradings on a scale of 5 to 1, with Grade 5 indicating strong fundamentals and Grade 1 indicating poor fundamentals. Bidding Status (IPO subscription detail):
Number of Times Issue is Subscribed (BSE + NSE) Qualified Retail Non Institutional Individual Employee As on Date & Time Institutional Total Buyers Investors Reservations Investors (QIBs) (RIIs) Shares Offered / Reserved 4,300,000 1,290,000 3,010,000 200,000 8,800,000 Day 1 - Sep 22, 2009 17:00 IST 0.0000 1.0786 0.2771 0.0000 0.2500 Day 2 - Sep 23, 2009 17:00 IST 0.6351 2.6103 0.4052 0.0018 0.8300 Day 3 - Sep 24, 2009 17:00 IST 1.2348 3.7807 1.8934 0.3119 1.8100
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IPO Listing Detail Listing Date: BSE Script Code: NSE Symbol: Listing In: Sector: ISIN: Issue Price: Face Value: Thursday, October 15, 2009 533109 EUROMULTI 'B' Group of Securities IT - Peripherals INE063J01011 Rs. 75.00 Per Equity Share Rs. 10.00 Per Equity Share
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Incorporated in 1997, Pipavav Shipyard Limited is currently constructing the Pipavav Shipyard, located on the west coast of India adjacent to major sea lanes between the Persian Gulf and Asia. Upon completion of construction, the Pipavav Shipyard will be capable of ship construction and repairs for a range of vessels of different sizes and types, as well as the fabrication and construction of products such as offshore platforms, rigs, jackets and vessels (but excluding subsea pipelines) for oil and gas companies. Objects of the Issue: The objects of the Issue are to achieve the benefits of listing on the Stock Exchanges & to raise capital: 1. Construction of facilities for shipbuilding, ship repair and the Offshore Business; 2. Margin for working capital; and 3. For general corporate purposes. Issue Detail: Issue Open: Sep 16, 2009 - Sep 18, 2009 Issue Type: 100% Book Built Issue IPO Issue Size: 85,450,225 Equity Shares of Rs. 10 Issue Size: Rs. 495.61 Crore Face Value: Rs. 10 Per Equity Share
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Issue Price: Rs. 55 - Rs. 60 Per Equity Share Market Lot: 110 Shares Minimum Order Quantity: 110 Shares Listing At: BSE, NSE
Pipavav Shipyard Limited IPO Grading / Rating CARE has assigned an IPO Grade 3 to Pipavav Shipyard Limited IPO. This means as per CARE, company has average fundamentals. CARE assigns IPO gradings on a scale of 5 to 1, with Grade 5 indicating strong fundamentals and Grade 1 indicating poor fundamentals
Bidding Status (IPO subscription detail):

Number of Times Issue is Subscribed (BSE + NSE) Qualified Retail Non Institutional Individual Employee As on Date & Time Institutional Total Buyers Investors Reservations Investors (QIBs) (RIIs) Shares Offered / Reserved 35,637,185 8,485,022 25,455,068 600,000 70,177,275 Day 1 - Sep 16, 2009 17:00 IST 2.8264 7.5346 0.8828 0.0352 2.6700 Day 2 - Sep 17, 2009 17:00 IST 3.9836 9.4302 1.1040 0.4264 3.5700 Day 3 - Sep 18, 2009 17:00 IST 10.6300 14.8152 2.8958 0.7768 8.2500
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IPO Listing Detail Listing Date: BSE Script Code: NSE Symbol: Listing In: Sector: ISIN: Issue Price: Face Value: Friday, October 09, 2009 533107 PIPAVAVYD B Group Shipping INE542F01012 Rs. 58.00 Per Equity Share Rs. 10.00 Per Equity Share
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Incorporated in 1959, Oil India Ltd is a premier Indian National Oil Company, engaged in the business of exploration, development and production of crude oil and natural gas, transportation of crude oil and production of LPG. Oil india also provides various E&P related services and holds 26% equity in Numaligarh Refinery Limited. Oil India Limited is second largest oil and gas company in India as measured by total proved plus probable oil and natural gas reserves and production. Objects of the Issue: The objects of the Issue are to achieve the benefits of listing on the Stock Exchanges & to raise capital: 1. Exploration and appraisal activities; 2. Development activities in producing fields; 3. Purchase of capital equipments and contracts for facilities; 4. Diversification of existing business in downstream activities. Issue Detail: Issue Open: Sep 07, 2009 - Sep 10, 2009 Issue Type: 100% Book Built Issue IPO Issue Size: 26,449,982 Equity Shares of Rs. 10 Issue Size: Rs. 2,777.25 Crore Face Value: Rs. 10 Per Equity Share Issue Price: Rs. 950 - Rs. 1050 Per Equity Share Market Lot: 6 Shares
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Oil India Ltd IPO Grading / Rating CRISIL has assigned an IPO Grade "4/5" (pronounced "four on five") to Oil India Ltd IPO. This means as per CRISIL, company has above average fundamentals. CRISIL assigns IPO gradings on a scale of 5 to 1, with Grade 5 indicating strong fundamentals and Grade 1 indicating poor fundamentals Bidding Status (IPO subscription detail):
Number of Times Issue is Subscribed (BSE + NSE) Qualified Retail Non Institutional Individual Employee Institutional Total Buyers Investors Reservations Investors (QIBs) (RIIs) 14,427,263 2,404,544 7,213,631 2,404,544 26,449,982 2.3154 0.0022 0.0518 0.0076 1.2800 2.5549 0.0089 0.1373 0.0671 1.4400 7.1810 0.0370 0.3096 0.1404 4.0200 53.8324 10.4770 1.7642 0.2670 30.8200
As on Date & Time Shares Offered / Reserved Day 1 - Sep 07, 2009 17:00 IST Day 2 - Sep 08, 2009 17:00 IST Day 3 - Sep 09, 2009 17:00 IST Day 4 - Sep 10, 2009 19:00 IST
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IPO Listing Detail Listing Date: BSE Script Code: NSE Symbol: Listing In: Sector: ISIN: Issue Price: Face Value: Wednesday, September 30, 2009 533106 OIL 'B' Group of Securities Oil and Gas INE274J01014 Rs. 1,050.00 Per Equity Share Rs. 10.00 Per Equity Share
Listing Day Trading Information Issue Price: Open: Low: High: Last Trade: Volume: BSE Rs. 1,050.00 Rs. 1,019.00 Rs. 1,019.00 Rs. 1,156.00 Rs. 1,140.55 8,737,957 NSE Rs. 1,050.00 Rs. 1,096.00 Rs. 1,090.00 Rs. 1,156.70 Rs. 1,141.20 19,748,012
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Incorporated in 1993, Globus Spirits Limited is amongst the leading players in the Alcohol industry in North India. They are in the business of manufacturing, sales and marketing of Indian Made Foreign Liquor (IMFL), Industrial Alcohol and Country Liquor. Globus Spirits major brands are Samurai Gold, Hannibal Rum, White Lace Gin & White Lace Duet Gin.Globus Spirits owns two modern distilleries which are situated at: Objects of the Issue: The objects of the Issue are to achieve the benefits of listing on the Stock Exchanges & to raise capital for: 1. Installation of a Multi-Pressure Distillation Plant to produce quality Extra Neutral Alcohol (ENA) of 35,000 Litres per day from both Molasses and Grain at Behror Unit in Rajasthan; 2. Installation of a Multi-Pressure Distillation Plant to produce quality Extra Neutral Alcohol (ENA) of 35,000 Litres per day from Grain at Samalkha Unit in Haryana; 3. Installation of a High-Pressure Boiler and BackPressure Turbine; 4. Brand development for marketing IMFL brands in 10 more States/Union Territories; 5. Acquisition of Canteen Stores Department (CSD) registered IMFL Brands; 6. Revamping of existing storage/bottling capacity at Samalkha Unit, Haryana and modernization of Bottling Section at Behror Unit, Rajasthan;
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7. Meet expenses of the Issue in order to achieve the benefits of listing on the Stock Exchanges. Issue Detail: Issue Open: Aug 31, 2009 - Sep 02, 2009 Issue Type: 100% Book Built Issue IPO Issue Size: 7,500,000 Equity Shares of Rs. 10 Issue Size: Rs. 75.00 Crore Face Value: Rs. 10 Per Equity Share Issue Price: Rs. 90 - Rs. 100 Per Equity Share Market Lot: 70 Shares Minimum Order Quantity: 70 Shares Listing At: BSE, NSE
Globus Spirits Limited IPO Grading / Rating CARE has assigned an IPO Grade 3 to Globus Spirits Limited IPO. This means as per CARE, company has average fundamentals. CARE assigns IPO gradings on a scale of 5 to 1, with Grade 5 indicating strong fundamentals and Grade 1 indicating poor fundamentals
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Bidding Status (IPO subscription detail): Number of Times Issue is Subscribed (BSE + NSE)
As on Date & Time Qualified Retail Non Institutional Individual Employee Institutional Buyers Investors Reservations Investors (QIBs) (RIIs) Total
Shares Offered / Reserved Day 1 - Aug 31, 2009 17:00 IST Day 2 - Sep 01, 2009 17:00 IST Day 3 - Sep 02, 2009 17:00 IST PO Listing Detail Listing Date: BSE Script Code: NSE Symbol: Listing In: Sector: ISIN: Issue Price: Face Value:
3,725,000 0.1879 0.3758 0.8590
1,117,500 0.0000 0.0000 4.7604
2,607,500 0.0409 0.1296 1.0264
50,000 0.0000 0.4844 0.9632
7,500,000 0.1100 0.2300 1.5000
Wednesday, September 23, 2009 533104 GLOBUSSPR 'B' Group of Securities Breweries and Distilleries INE615I01010 Rs. 100.00 Per Equity Share Rs. 10.00 Per Equity Share
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Incorporated in 1998, Jindal Cotex Limited is in the business of manufacturing of Acrylic, Polyester, and Polyester-Viscose, Polyester Cotton, combed and carded yarns, which are appropriate for apparels, suitings & knitted fabrics. Jindal Cotex has installed capacity of 23,472 spindles for acrylic, cotton blended and polyester yarns. Company manufacture and sell yarns under the trade name 'JINDAL'. Objects of the Issue: The objects of the Issue are to achieve the benefits of listing on the Stock Exchanges & to raise capital: 1. Setting up a new facility for manufacturing of Cotton Yarn, Yarn Dyeing and Garments; 2. Investment in Subsidiaries - Jindal Medicot Limited and Jindal Specialty Limited. Issue Detail: Issue Open: Aug 27, 2009 - Sep 01, 2009 Issue Type: 100% Book Built Issue IPO Issue Size: 11,250,000 Equity Shares of Rs. 10 Issue Size: Rs. 84.38 Crore Face Value: Rs. 10 Per Equity Share Issue Price: Rs. 70 - Rs. 75 Per Equity Share Market Lot: 90 Shares
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Jindal Cotex Limited IPO Grading / Rating Brickwork has assigned an IPO Grade 3 to Adani Power Limited IPO. This means as per Brickwork, company has average fundamentals. Brickwork assigns IPO gradings on a scale of 5 to 1, with Grade 5 indicating strong fundamentals and Grade 1 indicating poor fundamentals

Number of Times Issue is Subscribed (BSE + NSE) Qualified Retail Non Institutional Individual Employee Institutional Total Buyers Investors Reservations Investors (QIBs) (RIIs) 5,375,000 1,612,500 3,762,500 500,000 11,250,000 0.2411 0.3688 0.2289 0.0000 0.2400 0.2411 1.1205 0.3989 0.0000 0.4100 0.4349 1.3429 0.6534 0.0209 0.6200 0.6555 5.9341 3.0891 0.0301 2.2000
As on Date & Time Shares Offered / Reserved Day 1 - Aug 27, 2009 17:00 IST Day 2 - Aug 28, 2009 17:00 IST Day 3 - Aug 31, 2009 17:00 IST Day 4 - Sep 01, 2009 17:00 IST
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IPO Listing Detail Listing Date: BSE Script Code: NSE Symbol: Listing In: Sector: ISIN: Issue Price: Face Value: Tuesday, September 22, 2009 533103 JINDCOT B Group Textile - Composite Mills INE904J01016 Rs. 75.00 Per Equity Share Rs. 10.00 Per Equity Share
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` Incorporated in 1975, NHPC Limited (Formerly known as National Hydroelectric Power Corporation Ltd.) is a Govt. of India's Enterprise. NHPC is a hydroelectric power generating company dedicated to the planning, development and implementation of an integrated and efficient network of hydroelectric projects in India. They execute all aspects of the development of hydroelectric projects, from concept to commissioning. Issue Detail: Issue Open: Aug 07, 2009 - Aug 12, 2009 Issue Type: 100% Book Built Issue IPO Issue Size: 1,677,374,015 Equity Shares of Rs. 10 Issue Size: Rs. 6,038.55 Crore Face Value: Rs. 10 Per Equity Share Issue Price: Rs. 30 - Rs. 36 Per Equity Share Market Lot: 175 Shares Minimum Order Quantity: 175 Shares Listing At: BSE, NSE
NHPC Limited IPO Grading / Rating ICRA has assigned an IPO Grade 3 to NHPC Limited IPO. This means as per ICRA, company has average fundamentals. ICRA assigns IPO gradings
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on a scale of 5 to 1, with Grade 5 indicating strong fundamentals and Grade 1 indicating poor fundamentals. Bidding Status (IPO subscription detail):
Number of Times Issue is Subscribed (BSE + NSE) Qualified Retail Non Institutional Individual Employee Institutional Total Buyers Investors Reservations Investors (QIBs) (RIIs) 981,263,799 163,543,966 490,631,900 41,934,350 1,677,374,015 6.0057 0.0062 0.0952 0.0002 3.5400 6.1474 0.1521 0.4929 0.0689 3.7600 9.4851 2.4331 1.2507 0.2229 6.1600 29.1608 56.7074 3.8730 0.5697 23.7400
As on Date & Time Shares Offered / Reserved Day 1 - Aug 07, 2009 17:00 IST Day 2 - Aug 10, 2009 19:00 IST Day 3 - Aug 11, 2009 17:00 IST Day 4 - Aug 12, 2009 17:00 IST
IPO Listing Detail Listing Date: BSE Script Code: NSE Symbol: Listing In: Sector: ISIN: Issue Price: Face Value: Tuesday, September 01, 2009 533098 NHPC 'B' Group of Securities Power INE848E01016 Rs. 36.00 Per Equity Share Rs. 10.00 Per Equity Share
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Incorporated in 1996, Adani Power Limited (APL), is a power project development company. Company operates and maintains power projects across India. Adani Power Limited is a part of Adani Group, a leading business group in India. Currently Adani group has presence in coal mining; coal trading, shipping, power generation, power transmission and power trading. Adani Power has four thermal power projects under various stages of development, with a combined installed capacity of 6,600 MW. In addition they are also planning to develop two thermal power projects at Dahej and Kawai with a combined installed capacity of 3,300 MW. Objects of the Issue: The objects of the Issue are to achieve the benefits of listing on the Stock Exchanges & to raise capital: 1. To part finance the construction and development of Mundra Phase IV Power Project, for 1,980 MW; 2. Funding equity contribution in our subsidiary Adani Power Maharashtra Limited to part finance the construction and development cost of power project for 1,980 MW at Tiroda, Maharashtra; 3. General corporate purposes. Issue Detail: Issue Open: Jul 28, 2009 - Jul 31, 2009 Issue Type: 100% Book Built Issue IPO
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Issue Size: 301,652,031 Equity Shares of Rs. 10 Issue Size: Rs. 3,016.52 Crore Face Value: Rs. 10 Per Equity Share Issue Price: Rs. 90 - Rs. 100 Per Equity Share Market Lot: 65 Shares Minimum Order Quantity: 65 Shares Listing At: BSE, NSE Adani Power Limited IPO Grading / Rating ICRA has assigned an IPO Grade 3 to Adani Power Limited IPO. This means as per ICRA, company has average fundamentals. ICRA assigns IPO gradings on a scale of 5 to 1, with Grade 5 indicating strong fundamentals and Grade 1 indicating poor fundamentals Bidding Status (IPO subscription detail):
Number of Times Issue is Subscribed (BSE + NSE) Qualified Retail Non Institutional Individual Employee Institutional Total Buyers Investors Reservations Investors (QIBs) (RIIs) 123,333,869 29,365,203 88,095,609 8,000,000 248,794,681 7.4500 2.1164 0.0563 0.0000 3.9600 8.7040 2.1402 0.1984 0.0080 4.6400 12.9306 2.1682 0.5483 0.0246 6.8600 39.4757 8.6204 2.9680 0.1114 21.6411
As on Date & Time Shares Offered / Reserved Day 1 - Jul 28, 2009 17:00 IST Day 2 - Jul 29, 2009 17:00 IST Day 3 - Jul 30, 2009 17:00 IST Day 4 - Jul 31, 2009 17:00 IST
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IPO Listing Detail Listing Date: BSE Script Code: NSE Symbol: Listing In: Sector: ISIN: Issue Price: Face Value: Thursday, August 20, 2009 533096 ADANIPOWER 'B' Group of Securities Power - Generation and Supply INE814H01011 Rs. 100.00 Per Equity Share Rs. 10.00 Per Equity Share
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Incorporated in 2001, Raj Oil Mills Ltd is in the business of manufacturing and processing of coconut, groundnut, mustard, and soya bean oil. Raj Oil Mills is the oldest (founded in 1943) and the most successful oil production company in India. Company's products are sold under three brands i.e Cocoraj, Guinea and Raj. These brands are in existence for more than 5 decades. Objects of the Issue: The objects of the Issue are to achieve the benefits of listing on the Stock Exchanges & to raise capital: For setting up of facilities at Manor, district Thane; Refinery of 200 TPD which can process Sunflower, Soyabean, Groundnut, Palm, Cotton Seed oils. Crushing unit of 200 TPD for Groundnut and Copra. Palm Fractionation unit of 100 TPD and Vanaspati Ghee of 50 TPD. Ayurvedic and Cosmetic unit of 5 TPD. In house Blow Moulding Plant for PET Bottles. For setting up of Crushing unit of 200 TPD for Sesame and Mustard at Bagru, district Jaipur; To meet margin money for Working Capital Requirements; For Brand Promotion and Expansion of Marketing & Distribution Network; For setting up of Research and Development facilities; Issue Related Expenses & get the shares listed on the Stock Exchanges.
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Issue Detail: Issue Open: Jul 20, 2009 - Jul 23, 2009 Issue Type: 100% Book Built Issue IPO Issue Size: 9,500,000 Equity Shares of Rs. 10 Issue Size: Rs. 114.00 Crore Face Value: Rs. 10 Per Equity Share Issue Price: Rs. 100 - Rs. 120 Per Equity Share Market Lot: 50 Shares Minimum Order Quantity: 50 Shares Listing At: BSE, NSE
Raj Oil Mills Ltd IPO Grading / Rating ICRA has assigned an IPO Grade 2 to Raj Oil Mills Ltd IPO. This means as per ICRA, company has Below average fundamentals. ICRA assigns IPO gradings on a scale of 5 to 1, with Grade 5 indicating strong Bidding Status (IPO subscription detail): Number of Times Issue is Subscribed (BSE + NSE) Qualified Retail Non Institutional Individual Institutional Total Buyers Investors Investors (QIBs) (RIIs) 4,750,000 1,425,000 3,325,000 9,500,000 0.0000 0.0000 0.0080 0.0000 0.0000 0.0000 0.0245 0.0100 0.0000 1.4808 0.0606 0.2400 0.7543 3.9764 0.7668 1.2400
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IPO Listing Detail Listing Date: BSE Script Code: NSE Symbol: Listing In: Sector: ISIN: Issue Price: Face Value: Wednesday, August 12, 2009 533093 RAJOIL B Group Food Products INE294G01018 Rs. 120.00 Per Equity Share Rs. 10.00 Per Equity Share
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Incorporated in 2003, Excel Infoways Ltd is an ISO 27001:2005 certified Company. Excel Infoways Limited is a leading customer contact centre providing Voice Based Services in the areas of Collections, Telemarketing and Customer Care. Excel Infoways offer a range of customer care services including outbound sales and Marketing, voice, email response, real-time chat, knowledge management, eCRM architecture. Objects of the Issue: The objects of the Issue are to achieve the benefits of listing on the Stock Exchanges & to raise capital to: 1. Setting up New Facilities; 2. Strategic Invesments / Joint Ventures; 3. General Corporate Purpose; 4. Issue Related Expenses. Issue Detail: Issue Open: Jul 14, 2009 - Jul 17, 2009 Issue Type: 100% Book Built Issue IPO Issue Size: 5,667,000 Equity Shares of Rs. 10 Issue Size: Rs. 48.17 Crore Face Value: Rs. 10 Per Equity Share Issue Price: Rs. 80 - Rs. 85 Per Equity Share Market Lot: 80 Shares Minimum Order Quantity: 80 Shares
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Excel Infoways Limited IPO Grading / Rating CARE has assigned an IPO Grade 1 to Excel Infoways Limited IPO. This means as per CARE, company has Poor fundamentals. CARE assigns IPO gradings on a scale of 5 to 1, with Grade 5 indicating strong fundamentals and Grade 1 indicating poor fundamentals

Number of Times Issue is Subscribed (BSE + NSE) Qualified Retail Non Institutional Individual Institutional Total Buyers Investors Investors (QIBs) (RIIs) 2,833,500 850,050 1,983,450 5,667,000 0.0000 0.1098 0.1208 0.0600 0.0000 0.3875 0.1263 0.1000 0.1729 1.0512 0.2121 0.3200 0.4896 5.3072 2.6438 1.9700
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IPO Listing Detail Listing Date: BSE Script Code: NSE Symbol: Listing In: Sector: ISIN: Issue Price: Face Value: Monday, August 03, 2009 533090 EXCELINFO 'B' Group of Securities IT Enabled Services INE688J01015 Rs. 85.00 Per Equity Share Rs. 10.00 Per Equity Share
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Incorporated in 1996, Mahindra Holidays and Resorts India Limited (MHRIL) is a part of the US$ 6.7 billion Mahindra group. MHRIL is Indias number one holiday brand offering quality family holidays with a range of services. The companys flagship brand Club Mahindra Holidays, has a fast growing customer base of over 79,000 members and 23 beautiful Resorts at some of the most exotic spots in India and abroad. Mahindra's resorts at Goa, Coorg, Munnar, Manali, Binsar Kumbhalgarh and Dharamshala are recipients of the RCI Gold Crown Award for the year 2008-2009. Objects of the Issue: The objects of the Issue are to achieve the benefits of listing on the Stock Exchanges & to raise capital to: 1. Expansion of existing resorts & setting up new projects; 2. General Corporate purposes. Issue Detail: Issue Open: Jun 23, 2009 - Jun 26, 2009 Issue Type: 100% Book Built Issue IPO Issue Size: 9,265,275 Equity Shares of Rs. 10 Issue Size: Rs. 277.96 Crore Face Value: Rs. 10 Per Equity Share Issue Price: Rs. 275 - Rs. 325 Per Equity Share Market Lot: 20 Shares
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Mahindra Holidays and Resorts India Ltd IPO Grading / Rating FITCH has assigned an IPO Grade 4 to Mahindra Holidays and Resorts IPO. This means as per FITCH, company has Above average fundamentals. FITCH assigns IPO gradings on a scale of 5 to 1, with Grade 5 indicating strong fundamentals and Grade 1 indicating poor fundamentals Bidding Status (IPO subscription detail):
Number of Times Issue is Subscribed (BSE + NSE) Qualified Retail Non Institutional Individual Institutional Total Buyers Investors Investors (QIBs) (RIIs) 5,559,165 926,527 2,779,582 9,265,274 0.3216 0.0108 0.0279 0.2000 0.6337 0.0151 0.0666 0.4000 1.0930 1.2718 0.2533 0.8600 12.8262 11.0060 3.3578 9.8000
As on Date & Time Shares Offered / Reserved Day 1 - Jun 23, 2009 17:00 IST Day 2 - Jun 24, 2009 17:00 IST Day 3 - Jun 25, 2009 17:00 IST Day 4 - Jun 26, 2009 17:00 IST
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IPO Listing Detail Listing Date: BSE Script Code: NSE Symbol: Listing In: Sector: ISIN: Issue Price: Face Value: Thursday, July 16, 2009 533088 MHRIL 'B' Group of Securities Tourism / Hotels Resorts INE998I01010 Rs. 300.00 Per Equity Share Rs. 10.00 Per Equity Share
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Incorporated in 1994, Rishabhdev Technocable Limited is in the business of cable manufacturing and trading. Company is BS EN ISO 9001:2000 certified by BSI, UK and also IS 694:1990, IS: 1554:1988 Part 1: 1988 by Bureau of Indian Standards. Objects of the Issue: The objects of the Issue are to achieve the benefits of listing on the Stock Exchanges & to raise capital to: 1. Expansion cum modernization of existing manufacturing facilities (Unit I) at Daman; 2. Setting up of new facilities (Unit II) at Daman for manufacturing Electrical Control Cables; 3. Setting up of new facilities (Unit III) at Silvassa for manufacturing Power cables; 4. Margin Money for working capital Requirements; 5. To meet Public Issue Expenses; 6. General Corporate purposes. Issue Detail: Issue Open: Jun 04, 2009 - Jun 09, 2009 Issue Type: 100% Book Built Issue IPO Issue Size: 6,854,500 Equity Shares of Rs. 10 Issue Size: Rs. 22.62 Crore Face Value: Rs. 10 Per Equity Share Issue Price: Rs. 29 - Rs. 33 Per Equity Share Market Lot: 200 Shares
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Minimum Order Quantity: 200 Shares Listing At: BSE Bidding Status (IPO subscription detail):
Number of Times Issue is Subscribed (BSE + NSE) Qualified Retail Non Institutional Individual Institutional Total Buyers Investors Investors (QIBs) (RIIs) 3,427,250 1,028,175 2,399,075 6,854,500 0.0000 0.8761 0.0094 0.1347 0.0000 2.3414 0.0722 0.3800 0.0000 3.1220 0.9602 0.8000 0.2263 12.1516 16.6322 7.7600
As on Date & Time Shares Offered / Reserved Day 1 - Jun 04, 2009 17:00 IST Day 2 - Jun 05, 2009 17:00 IST Day 3 - Jun 08, 2009 17:00 IST Day 4 - Jun 09, 2009 17:30 IST
IPO Listing Detail Listing Date: BSE Script Code: NSE Symbol: Listing In: Sector: ISIN: Issue Price: Face Value: Monday, June 29, 2009 533083 'B' Group of Securities Engineering - Power Cables INE685F01019 Rs. 33.00 Per Equity Share Rs. 10.00 Per Equity Share
Listing Day Trading Information Issue Price: Open: Low: High: Last Trade: Volume: BSE Rs. 33.00 Rs. 42.00 Rs. 25.85 Rs. 47.00 Rs. 27.20 25,318,301
Rs. 33.00
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Incorporated in 2001, Edserv Softsystems Limited is in the business of weblearning, software development staffing solutions. Edserv came with an objective of providing niche training solutions, customised software solutions, and placement consulting on contract as well as permanent basis to both Corporate and Institutional clients. The company successfully provided staffing solutions to premier clients during 2002 to 2004 viz., TI Group, TVS Group, Office Tiger, KSB Pumps, Infosys Technologies, HCL Technologies, Shasun Chemicals, Hexaware Technologies, Ashok Leyland, Seshasayee Paper & Boards among others. Objects of the Issue: The objects of the Issue are to achieve the benefits of listing on the Stock Exchanges & to raise capital to: 1. Content Development; 2. Establishment of HEAL laboratories; 3. Establishment of Regional HEADS offices; 4. Development and Implementation of centralized LAMPS Portal Engine; 5. Issue Related Expenses; 6. Promotional, Trademark, copyright IP rights Expenses. Issue Detail: Issue Open: Feb 05, 2009 - Feb 09, 2009 Issue Type: 100% Book Built Issue IPO Issue Size: 3,973,908 Equity Shares of Rs. 10
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Issue Size: Rs. 23.84 Crore Face Value: Rs. 10 Per Equity Share Issue Price: Rs. 55 - Rs. 60 Per Equity Share Market Lot: 100 Shares Minimum Order Quantity: 100 Shares Listing At: BSE, NSE Edserv Softsystems Ltd IPO Grading / Rating CARE has assigned an IPO Grade 1 to Edserv Softsystems IPO. This means as per CARE, company has Poor fundamentals. CARE assigns IPO gradings on a scale of 5 to 1, with Grade 5 indicating strong fundamentals and Grade 1 indicating poor fundamentals. Bidding Status (IPO subscription detail): Number of Times Issue is Subscribed (BSE + NSE)
As on Date & Time Qualified Retail Non Institutional Individual Employee Institutional Buyers Investors Reservations Investors (QIBs) (RIIs) Total
Shares Offered / Reserved Day 1 - Feb 05, 2009 17:00 IST Day 2 - Feb 06, 2009 17:00 IST Day 3 - Feb 09, 2009 17:00 IST
1,886,954 0.0000 0.0000 1.0776
566,086 0.0000 0.0000 3.1048
1,320,868 0.0017 0.0088 1.0223
200,000 0.0000 0.0000 0.0390
3,973,908 0.0000 0.0000 1.3000
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IPO Listing Detail Listing Date: BSE Script Code: NSE Symbol: Listing In: Sector: ISIN: Issue Price: Face Value: Monday, March 02, 2009 533055 EDSERV B Group Education and Training INE889J01019 Rs. 60.00 Per Equity Share Rs. 10.00 Per Equity Share
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Internals, Columns & Columns Internals High Pressure Vessels, Distillation / Fractionating Columns / Towers, Mixing Tanks (Agitated), Fluid Bed Dryers and Custom Built Equipments. Company serves verity of industries including cement, dairy, refinery, pharmaceutical, petrochemical, power and chemical. Objects of the Issue: The objects of the Issue are to achieve the benefits of listing on the Stock Exchanges & to raise capital: 1. Setting up of a manufacturing workshop at Umbergaon, Gujarat; 2. General Corporate Purposes. Issue Detail: Issue Open: Feb 03, 2009 - Feb 06, 2009 Issue Type: 100% Book Built Issue IPO Issue Size: 5,500,000 Equity Shares of Rs. 10 Issue Size: Rs. 41.25 - 44.00 Crore Face Value: Rs. 10 Per Equity Share Issue Price: Rs. 75 - Rs. 80 Per Equity Share Market Lot: 75 Shares Minimum Order Quantity: 75 Shares Listing At: BSE, NSE
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Gemini Engi-Fab IPO Grading / Rating CARE has assigned an IPO Grade 2 to Gemini Engi-Fab IPO. This means as per CARE, company has below average fundamentals. CARE assigns IPO gradings on a scale of 5 to 1, with Grade 5 indicating strong fundamentals and Grade 1 indicating poor fundamentals.
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Responses of
Questionnaire
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Statement of Research Problem

The study intends to investigate the reason of failure of IPO in Indian share market, particularly in Bombay Stock Exchange and National Stock Exchange. Specifically, the study seeks to: 1. 2. 3. 4. Analyse the investors behaviour towards IPOs in Market. Inclusion of IPOs in portfolio. Identify the reasons of failure of IPOs Identify the reasons affecting investment in IPOs.
Objective of Research Problem

To find the reasons of IPOs failure in Indian Market.
Methodology of Data Collection

Data collection is simply how information is gathered. There are various methods of data collection such as personal interviewing, telephone, mail and the Internet. Depending on the survey design, these methods can be used separately or combined. We have used Personal Interviewing, Telephone and Internet for data collection. As our most of our respondents were investors and brokers therefore time was a constraint.
Tools for Data Collection

Primary Data Collection : Questionnaire Secondary Data Collection : Books, Published Research Journals, Websites.
Sample Size : 60 .
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Question 1 : Have you included IPOs in yours or your clients portfolio? We got mixed bag of answers for this question. As number of investors and portfolio managers were hesitating and were not comfortable in disclosing their strategy towards investment. Still we manage to get response of 60 Investors and portfolio manager. Majority of which responded NO . During questionnaire we have observed hesitation of investors in investing money in IPO. And those who invested in IPO have done solely due to golden history of company and following the market rumors.
45 % 55 %
Yes No
Question 2 : What was the size of Investment in IPO ? We tried to know the investment of individual in IPO through this particular question. Our sole aim was to find out confidence level of investors in IPO. But this one was the toughest nut to break . As investors werent cooperative in telling their investment size which resulted in minimum response to this particular Question. Investors did not disclose their amount of investment to us.
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Question 3 : Does 2009 IPOs gave returns according to your expectations ? This was one of the most negatively answered for IPOs in 2008. But investors were pretty happy with the performance of 2009 IPOs. Majority of Investors have not faced lost in 2009 IPOs but in 2008 IPOs they had faced heavy lost which resulted sum zero situation for portfolios.
35 Yes 65 No
Question 4 : If not invested in IPO. What was the reason ? Various reasons were given and most of them conclude on one thing that Investor dont have trust on IPO which are coming in market and they want to wait and watch the market performance of IPO, then they might invest. Other reason told by them was of account decoration done by IPO issuing company which results in over pricing of IPO . Few of investor raised question on genuineness of IPO Grading system and shown their disbelief in grading system of IPO.
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Question 5 : Generally what are your clients response towards investment in IPO ? Investor responded strongly on this question. Responses were in favor as clients wants to buy IPO at lower price and want to yield profit long run but after 2008 market collision everyone on Dalal Street is very cautious about IPO. Still majority of clients are ready to take risk and are in favor of IPO investment. But still there are many bad experience of investors and clients associated with 2008 IPOs.
Question 6 : What risks you associate with IPOs? Risk associated with IPO are many but main four types of risks told us as follow by investors : -
25
25 Aggressive pricing IPO grading system 10 Accounting Practise Other 40
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CONCLUSION
Reasons why IPO FAILS
Its almost a mathematical impossibility to imagine that, out of the thousands of things for sale on a given day, the most attractively priced is the one being sold by a knowledgeable seller to a less-knowledgeable buyer, Warren Buffett reportedly said on IPOs.
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Aggressive Pricing OF IPO

The companies that debuted with high valuations compared to their listed peers failed miserably. A company which has a nascent business and asking for a valuation 60-100 times its latest annual earnings is almost robbery, but have happened. In order to support such a pricing, it will have to more than double its earnings every year on consistent basis. This is well high impossible in best of circumstances, not surprisingly most of these high fliers fail to deliver. Most of the IPOs in our sample however failed to deliver simply because they were priced too aggressively. Besides the company specific reasons, the common factor among them was their high price to earnings (P/E) multiple that they were asking. At a P/E of 140x, PVR would have to grow at least 70-80% to justify such rich valuations. However given the unreasonable valuations and too much expectation built into the price, these stocks were the first ones to be slaughtered at the hint of first trouble in the market. Other cases which we had figured out during our Empirical study were of Reliance Power and Mundra Port. In Jan 08, Reliance Power raised Rs 11,700 crore from the market at More Pictures five digit earnings multiple and no revenue from operations. It is yet to generate any revenues form electricity. For the year ended March 09 it had other income of Rs 360 crore. There are some who were battered by the economic circumstances. Like in case of Jet Airways, which was the only listed airliner. With Rs 400 crore
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profit in its first year of listing, the stock was reasonably priced at 26 times its trailing year earnings. But within two years of its IPO, its finances were shattered due to a price war and record high crude oil prices. It is still struggling. During our study we came across few IPOs which money for investors, like the public sector companies, which usually dont price aggressively. Public sector units such as Power Finance Corp (13.2x) and Rural Electrification (15x) were reasonably priced. Undergarments maker Page Industries (27x), and Tulip Telecom (13.9x) were attractively priced and have returned at least 38 %daily annualized returns. Besides pricing, their business model was very unique. Business model of companies like Page Industries made a unique exception and made profit for its investor in long run. They raised funds for expanding their business and not setting up a business from scratch, so their gestation time to generate returns was very low. While it is may not be appropriate to paint all the IPOs with the same brush, we suggest that investors should be cautious that the majority are over-priced and may choose the ones that are priced at a discount to their listed peers, or wait for the market to arrive at a price, possibly lower than the IPO one.
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ISSUES ON EVALUATING THE ACCOUNTING CHARACTERISTICS OF IPO FIRMS

The companies that debuted with high valuations compared to their listed peers failed miserably. A company which has a nascent business and asking for a valuation 60-100 times its latest annual earnings is almost robbery, but have happened. In order to support such a pricing, it will have to more than double its earnings every year on consistent basis. This is well high impossible in best of circumstances, not surprisingly most of these high fliers fail to deliver.
Two major issues arise from our empirical study for treatment of IPO firms accounting numbers. First, the prior IPO literature shows that the accounting properties of IPO firms are different from other firms and that these properties are likely to be endogenous to the decision to raise outside capital. For example, Accounting numbers such as accrued sales may be systematically overstated in the periods surrounding the IPO. Prior studies attempt to determine whether managers manipulate reported accounting numbers in the periods surrounding an IPO. On the other hand, life cyclerelated operating characteristics can also affect the accounting properties of IPO firms. Prior studies investigate this hypothesis and suggest that the accounting properties of IPO firms are not the result of manipulation, but rather are endogenous to a firms decision to seek outside capital and reflect a firms growth characteristics surrounding the IPO date.
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Taken as a whole, we suggests that simple accounting variables, such as raw sales, SG&A expenses, or R&D expenses, may not capture the more complex and interesting accounting properties of IPO firms. This has direct implications for the process of selecting candidate forecasting variables as well as for enhancing our understanding of how and why these accounting variables may be successful in predicting IPO failures.
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IPO grading system fails to produce desired results

Perceived as the quality gauge for public issues, grading of initial public offers has failed to make a major impact either on the investment rationale of retail investors, or the wealth created by the underlying companies postlisting. In fact, the higher the grade of an IPO, the poorer has been its performance in the market. Companies such as Reliance Power, Edelweiss Capital and Gammon Infrastructure, which were rated four out of five (meaning above average fundamentals), have posted losses in the range of 46 to 56 per cent. And, nine out of 10 which were similarly graded lost more than 40 per cent, according to a report from SMC Capitals. During 2007 and 2008, the boom years for IPOs, investors hardly took cognizance of ratings assigned to a particular company. And that was the reason why some of the companies with even absolutely low ratings managed to gather stellar subscription figures. Despite opposition from several quarters, the Securities and Exchange Board of India had made it mandatory for all IPOs to be graded by rating agencies from April 2007 onwards. After a company gets Sebi approval for an IPO, it has to rope in rating agencies such as ICRA, Crisil, Fitch and CARE to get the issue graded. According to Sebi guidelines, an IPO grade cannot be rejected. Irrespective of whether the issuer finds the grade acceptable or not, the grade has to be disclosed as required under the DIP guidelines. However, the issuer has the option of getting its issue graded by another rating agency. "Investors have completely ignored IPO grading. In my view, equity as an instrument cannot be graded. It is a risky asset class and one needs to
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capture a lot of other factors apart from the ones listed in the draft red herring prospectus. "Though India is the first country to introduce IPO grading, it has not served its basic purpose," said Prithvi Haldea, managing director, Prime Database. Recently, Sebi chairman CB Bhave had said that the regulator would review the IPO grading concept as it had gained some experience after receiving both positive and negative responses on the move. Though there was a view that Sebi should scrap it, experts said that the regulator would bring in some changes to the way grading was being done rather than doing away with it. "Grading has not really caught on with retail investors as it was intended to be. Retail investors still get carried away by the herd syndrome. Rating agencies are mainly concerned with vetting the DRHP. "They do not evaluate it as an investment proposition. Pricing of the issue is an important part, which is not covered by rating agencies while grading an IPO," said Kavita Shah, senior vice- president, Collins Stewarts Inga. The IPO scenario in 2009, with barely one issue in the first quarter, reflects the economic slowdown that has set in about four months back. Long-term investors would have benefited from their investments only in IPOs that hit the market in 2004, which gave returns of about 60 per cent in the last five years to March 17, 2009 (marked-to market),
Comparative analysis between 2004-2009 .

During the period under review, The benchmark BSE Sensex gained 2,991 points or 51 per cent from 5,872.48 at January 1, 2004, to 8,863.82 on March 17, 2009. The number of IPOs that continue to give positive returns have fallen gradually - from nine in 2004 to three in 2008. In 2009, only one issue entered the market Chennai-based Edserv Softsystems, a web-learning, IT consulting and resource deployment company. Priced at Rs 60, Edserv listed on the bourses on March 2 and rose
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to Rs 147.90 on the following day. However, since then it has continued to slide. It closed at Rs 34.20 on March 17. The highest number of IPOs was seen in 2007 at 103, followed by 2006 with 79 companies raising funds from the primary market. Of these, only six and eight stocks, respectively, are in the positive now. But IPOs of 2008 and 2007 are trading at the highest discount to their issue prices 56.27 per cent and 44.39 per cent, respectively, . IPOs of 2006 are trading at a loss of 19.03 per cent, while that of 2005 are trading at 25.19 per cent loss. It shows that none have given positive returns to investors (marked-to-market as on March 17). However, pharma and healthcare sectors showed some kind of resilience when compared to the Sensex. IPOs from pharma and healthcare players that hit the market during 2008 fell 8.33 per cent and 32.16 per cent, respectively. However, compared to the 52.45 per cent fall in the Sensex during 2008, these stocks performed better. During 2008, however, investors in banking IPOs suffered a huge loss of 89.96 per cent, followed by those in retail, manufacturing and textiles sectors, all of which recorded losses of over 80 per cent. None of the major sectors that raised funds in 2007 gave positive returns at the current prices. Analysis of the performance of IPOs that hit the market in 2006, 2007 and 2008 shows that the pricing of IPOs was more reasonable in 2006 than in the later two years.
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Psychological Factors
Lower level of Profitability Firms are going public now that are riskier than they used to be in the past. They are exhibiting lower levels of profitability and often negative profitability when they go public and that was much less common in past decades. Much of their value resides in future growth prospects rather than past realizations of success, so the characteristics of the firms that are going to public markets and the willingness of shareholders in the public markets to fund those types of firms have really changed over the decades. This results in lack of trust in IPO coming in Market. Investor look at the profitability of IPO and find himself standing no where near profit in near future. Low Offering Price Risk We find that if a firm goes public with a low offering price, that's an indication of a higher failure risk firm, and if a firm is more mature when it goes public that's an indication of a lower failure risk firm because they have the history behind them and knowledge of operations. If they're heavily leveraged financially speaking, they're much higher risk, more likely to fail. If they have spent very heavily on R&D before going public, if they're a high tech firm, they have a lower risk of failure." Low Offering Price do not attract investor but they carry higher risk of doubt in back of investor head.
Lack of Trust in Capital Market Common person lacks trust in capital market because of everyday news about fraud and scam on Dalal Street. Lack of common person leads to lack of fund flow in Capital market which also directly results in failure of
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Investment in IPO. Lack of trust of Investor in any new company will obviously be lower than listed companies. Speculator dont look much into accounts of IPO companies but they play complete on speculations and for that they use their past experience or experience of others. And there is no such experience in IPO of anyone so even Speculators draws their hands off from IPO due to lack of trust. Whereas Hedge funds rejects IPO because of the requirement to bring to public some of the fund information in the course of issuing an IPO. And this is done despite many benefits that an IPO can bring, such as additional funds to manage or possibility to get some additional cash for the fund shareholders. We will suggest to most investors to never borrow and invest, whether for an IPO or in stocks. If you have a huge portfolio of stocks and some have run up significantly in a short period of time, investor might consider selling a small portion of a stock for subscribing to an IPO which has attractive valuations and growth prospects. But, remember, the chances of allotment of an over-subscribed issue are remote and any allotment would be negligible.
Wait for Cooling down Following old myths No one wants to loose money, therefore not everyone is ready to take risk on something new in market. During year 2009 its been noticed that many IPO failed in beginning but later gained the trust of market. This simply shows that investors dont invest big on IPO at initial stage of opening but later after looking at performance of IPO, they invest into IPO. Which leads to price fall of IPO on issue date and following days.
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RURAL INDIA
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India's economy is growing presently at the rate of 10 per cent per annum. This means that we will double up all the inputs in seven years. Thus, by 2011, we will double the consumption of petroleum products, electricity, food and other commodities to keep this growth rate. Last year we imported about Rs 85,000 crore worth of petroleum products. India will also require about 140,000 mw of installed electricity capacity by 2010 at an estimated outlay of Rs 5.5 trillion. Thus, financial outlay needed for the energy sector alone is staggering and to maintain "India shining" it is necessary that we produce as much as possible, energy and liquid fuels internally. There are about 60 per cent of rural households, which do not have electricity, and without the basic amenities in rural India the progress of the country will be hampered. A sustainable energy development programme can create all-round development. One of the possible ways to do it is the increased use of land based renewable energy resource like biomass. This will help rural development and create tremendous wealth in these areas. With rural India shining, India will automatically shine!
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WOMEN OF RURAL INDIA

Women the word sounds so powerful. Since eternity, women have played a role more important than men and that is no exaggeration. The world would not have been the same lovely adorable and liveable place without wonderful contribution so selflessly made by women. It has been said that, you teach a female and you build up a nation and truth cant be closer than that. Women have always carried the burden of being a wife, mother, sister all on their own and we need not to explain how magnificently they have carried this position. Today women are equally competent behind the veils and outside world. They are more confident and one can find them in every possible sphere of humans life. No male bastion is untouched by females and thats a wonderful sign of strides made by women. Urban women in India always had more advantages and opportunities than women residing in rural places. Better education, better economic resources, and more availability of required things for urban women and yet rural women have made rapid improvements despite lacking in basic facilities. No, India is yet to attain the state of complete women empowerment but signs of gradual improvement are definitely there. India in last few decades has remained more of a maledominated society. Women used to command acute power and importance in our ancient culture. The proof of this fact can be found in all the scriptures and even our mythological stories. We worship Goddess Durga, Lakshmi, Saraswati and many others. That shows how Indian civilization had revered the female form. The social fabric has acquired completely new dimensions. Thanks to the efforts of government, NGOs, social welfare organizations and many such institutions, there has been a drastic improvement. Many private corporate bodies have also taken a keen interest in improving the economic status of women and the results are extremely encouraging. We completely
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subscribe to this belief and steps are on its way to further improve the condition of rural women in India.
Empowering Rural India

A new situation is emerging in India. Very rarely in history have we come across such a constellation: an ascending economic trajectory, rising foreign exchange reserves, reducing inflation rates, global recognition of technological competence, energy of 540 million youth, umbilical connectivitys of 20 million people of Indian origin abroad, and the interest shown by developed countries to invest in our engineers and scientists, including in new R&D centers. Governments have been emphasizing economic development by ensuring growth rates of seven-eight per cent annually, enhancing the welfare of farmers and workers and unleashing the creativity of entrepreneurs, scientists, engineers. This opportunity must be fully utilized to bridge the rural-urban divide, using knowledge as a tool. As such, we would like to focus Empowering Rural India. The notable steps taken by the Government of India for Empowering Rural India are as follows
The allocation for Rural Infrastructure Development Fund to be raised to Rs.12, 000 crore from Rs.10, 000 crore A separate window for rural roads will continue, with a corpus of Rs.4, 000 crore An additional irrigation potential of 2,400,000 hectares to be created, including 900,000 hectares under the Accelerated Irrigation Benefit Programme The National Agricultural Insurance Scheme of India to continue for the 2007-08, with an allocation of Rs 500 crore A weather-based crop insurance scheme will be introduced To connect 66,800 habitations with population over 1000, with all modern metal roads
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Total investment of Rs.1, 74,000 crore envisaged under Bharat Nirman, investment on rural roads estimated to be at Rs.48, 000 crore Rs.1, 800 crore has been allocated for a water recharging scheme that will offer a 100% subsidy to small Indian farmers and 50% to other farmers to encourage them to recharge water A special plan is being implemented over a period of three years in 31 suicide-prone districts in four states, involving a total amount of Rs.16, 979 crore. Of this, around Rs.12, 400 crore will be spent on water-related schemes To address the problem of poor availability and quality of certified seeds, the integrated oilseeds, oil palm, pulses and maize development program will be expanded with more focus on scaling up the production of breeder, foundation and certified seeds Government will fund the expansion of the Indian Institute of Pulses Research, Kanpur Government to offer other producers to double production of certified seeds within a period of three years The Indian Agriculture Technology Management Agency, now in place in 262 districts, will be extended to another 300 districts The amount of fertilizer subsidy has been increased from Rs.17, 253 crore to Rs.22, 452 crore The budget has also allotted Rs.12, 000 to the National Rural Employment Guarantee Scheme Amount of Rs.2, 800 crore has been allocated for the Sampoorna Gramin Rozgar Yojana To facilitate a corpus of Rs.8000 crore to Rural Infrastructure Development Fund (RIDF) To construct additional 1,46,000 Km of new rural roads and repair and modernize 1,94,000 Km of existing rural roads Allocation for promoting self -employment among the rural poor, has been increased from Rs.1, 200 crore to Rs.1, 800 crore NABARD to issue government-guaranteed rural bonds to the extent of Rs.5, 000 crore with suitable tax exemptions A 31% hike in allocation towards the Bharat Nirman programme for upgrading rural infrastructure, from Rs.18, 696 crore to Rs.24, 603 crore, and a proposed Rs.225, 000 crore for farm credit
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A Special Purpose Tea Fund to rejuvenate tea production. Financial mechanisms for re-plantation and rejuvenation will also be implemented for coffee, rubber, spice, cashew and coconut plantations To add to clean drinking water facility along adopt proper sewage mechanism To engage faster electrification and telecommunication process Increase number of rural health centres, with special focus on mother and child health care
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Conclusion
Why Rural India do not invest in IPO.
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Not a risk taker

Rural population is risk averse, they dont want to take risk of capital market . During our Empirical study we came across few Rural investor and from their story we concluded that majority of rural population do not prefer to take risk for adverse returns. IPO is most riskiest security traded on Stock exchange how can one expect rural population to Invest .
Conservative
Rural population is not only risk averse but they are also conservative in investment . Rural population never consider share market as preference for making investment because its been tradition and belief of their society for long time. Rural population is conservative and they do not want to change their approach towards share market. During our Empirical study we had face number of problems in convincing people that we are no promoting Share market, we just want to know why they dont invest in Share market ? Investment in IPO is a far talk.
Lack of Access to Proper Information

No information related to IPOs or Share market reaches rural India on time and in proper manner. IPOs and other stocks are still unknown to majority of Rural Indians. On interviewing them we realized that majority of them dont even know what is Stock market. Most of them known it as a place to gamble. Rural India dont have access to proper information about any stock or IPO. Even companies also dont make any effort to pass information to Rural India about their Initial Public Offering.
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Alternative Investment Option

Rural India have many other option where they invest their money and still can make lot of profit out of those investment, without even taking higher risk or having prior knowledge of Share Market. Alternative Investment Options are Lands, Building, Farms, Crops and many more.
No Technology
For Investment in IPO or stock market one need to have access to technology like computer, internet for update stock price and news about new IPO. But rural India dont have access to any such technology large in number. Still majority of villages in rural India dont know how to operate computer and use Internet. Which makes it impossible for them to invest in IPO and Stock market . Even access to Television dont let them invest in share market because for that individual need to have DEMAT account.
Lack of Financial Organization. No Financial Inclusion

Lack of financial organization makes situation worst at rural India disabling them to all access to stock market. Lack of financial organization like retail banks results in deprive of bank account and DEMAT account to rural population. Without DEMAT account no person can invest in Share market . Which lead to ignorance of Rural population in IPO investment. For opening of DEMAT account , PAN card is required and majority of rural population dont have PAN card because they dont pay taxes . So here SEBI rules and regulation plays a spoil sport in investment.
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No Encouragement to Banking Services

Banking system is not forced to open bank branches in rural India . Rural India belief that saving money in Bank is not safe and this conservatism is really discouraging for investment in IPO because no IPO investment is possible with out DEMAT account which is only possible through banks. Therefore encouragement and believe to be made in banking system.
Lack of knowledge about Financial Market.

Rural India hardly have any knowledge about financial market. Basic information like share, sensex, IPO are still unknown to them. Then how can one expect rural population to invest into something of which they dont possess knowledge . Information of financial market is to imparted for encouragement of investment in India market.
No Consistent income.
Above all rural India do not have consistent income which results in lack of interest and lack of funds to invest in IPO and share market. Income in rural population is seasonal which lead to money crisis at house hold . In this condition one can not expect Rural India to invest in IPO.
These are the reasons which we came across during our Empirical study by interviewing the rural population across Bangalore city.
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Suggestions
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Classes of IPOs
During our empirical study we found need of classifying IPO into category that will help investors and other readers to know more about IPO and about their nature. After studying and interviewing so many investors we conclude that There are four classes of IPO's: 1. Story Teller - Everything is aligned for these guys to get great hype. They may be well known and growing, unknown but with a great story of potential growth, also runs but in a hot sector, or for some other reason on everyone's radar. These are almost assured to open at a price well above their initial listing, and they often take a good pop after that. They can make good volatility plays for traders and short term investors, and sometimes provide great long term holds. Once they peak, they can provide great shorts, but the initial short pile on leads to short covering and price appreciation, so be sure to wait for the peak. 2. Breath Takers - Yeah, their financial model is ok, they're profitable in a reasonable market, but really, why bother? Given the high risk of failure, these sorts of plays don't usually compensate for those risks. 3. Dogs - Their financial model doesn't work, they don't know why they need the money or they are just trying to give your money to their original investors . The stocks of these guys are often manipulated in the aftermarket by the big players, and once that ends they can provide good shorts. 4. Gladiators - Old companies with proven financial models that for some well defined business reason need the public capital markets. These can provide reasonable long term holds, and often do a slow rise. They are not hyped and because of that they may not be on much analyst radar for a while, providing buying opportunities.
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Factors to watch before investing in IPOs

We always wanted to make our empirical study helpful for Investors and Corporate. Therefore we have developed few Factors which are to be watched before investing in IPOs which will develop trust of Investors in IPO and will result in success of IPO . Further we suggest reading the offer document carefully (though always remember it is still a sellers document). A bridged prospectus is too difficult to read. If investor has a problem, investor should demand a full copy of the prospectus from the company or from the lead managers. Their email IDs is given in the abridged prospectus. If they do not provide, send a complaint to Sebi. Prospectus is a huge like a ocean of words that is too much to read, so we suggest to concentrate on key issues and try finding answers to the following questions.
Is this an IPO or an FPO? In IPOs, initial public offers, company decides the price and the collective secondary market discovers the true price post-listing after more information inflows/analysis. In FPOs, follow on public offers, the price is already discovered; gains/losses can only be marginal; no new information for the market to analyze/process.
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Is this a fixed-price or a book-building issue? The methodology, classes of investors and issue pricing are totally different. There is no book or price discovery in a fixed-price issue. There are no reservations for FIIs/HNIs in a fixed-price issue; 50% of the issue is reserved for small investors (in book building, it is 35%). Fixed-price issues are typically small. Issues in 2004-05 (Rs in crore) No. of Issue Issues Amount 10 19 378.82 21,052.74
Issue Type Fixed Price Book Building
Average size of Issue 37.88 1,108.04
Is this a good promoter? Get to know the promoter thats the key. If the promoter is okay, almost all other factors will automatically get taken care of. If there is any foreign collaboration of repute, it helps. What is the promoters background and experience? Experience in the same business/industry (promoting individuals/ promoting companies)
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Is the promoter a liability or an asset? Are there any material defaults/ litigations against the company or its promoters? Persons/Companies that have not been compliant with laws of the land reflect a worrisome mindset. If you find too many defaults/litigations of a material nature or even one of a very serious nature, a the issue. Criminal proceedings against the promoters. We suggest to check out record of past defaults of companies/ individuals at www.watchoutinvestors.com. What is the status of the issuing company? Holding company Main company How has been the performance of the company? Number of years in the business Size of the company Growth rate Market share and growth
Are the financials, specially the recent ones, reliable? Many resort to window dressing; high sales often lie in sundry debtors, profits could be because of a very high other income or unusual income. Beware of bloated previous years financials; amazing how almost every company performs so exceedingly well in the year and quarter preceding the issue! Look at aging of sundry debtors (and earlier write-offs).
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Look for changes in accounting policies (depreciation etc.), in financial year. Look if there are any significant Notes to the Accounts. Look if there are any significant qualifications by the auditors. What to look for in the Balance Sheet? Fixed assets Investments Loan and advances What are the key financial parameters/ ratios to look at? Earnings per share (EPS) EPS measures the earnings a company makes for each share in existence. It is calculated by taking a companys net earnings and dividing them by the number of shares in issue. A higher EPS is regarded as better than a low EPS as it means investors are earning bigger profits for every share they own. Investors look not only at the current EPS but also at estimates of future EPS to get an idea of the profits they will earn in future years. Price Earnings ratio (P/E)

The ratio you will see mentioned more than any other is the Price Earnings Ratio, which you will often see represented as P/E. The P/E measures whether a company is cheap or expensive. It is calculated by dividing a companys share price by its earnings per share (profits after tax divided by the number of shares in issue). As a rule, the higher the P/E, the faster its earnings are growing but if the P/E is high compared with other companies in the same sector, it could also mean the shares are overvalued. This ratio enables any business to be compared with another, although in reality investors tend to compare companies against
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those in the same industry sector or against the P/E on the entire market. Investors look not only at P/Es based on the past years earnings but also at estimates of future P/Es, also known as prospective P/Es. This gives investors an idea as to how fast a companys earnings are expected to grow in the future and, therefore, whether their shares are worth buying or not. PEG ratio
If you are investing in growth companies it is worth looking at a companys PEG ratio. This ratio, which shows a companys P/E relative to its earnings growth rate, is worked out by taking the prospective P/E ratio and dividing this number by the prospective EPS growth. The lower the PEG ratio, the better value a companys shares are. Return on capital
This ratio helps investors assess how hard a company is making its assets work. It is calculated by taking profits before interest and tax are removed and dividing this figure by the capital employed. Broadly speaking, the higher the return on capital, the more successful a company is. EBITDA and EV
EBITDA is a profit key ratio that looks at the Earnings Before Interest, Tax, Depreciation and Amortisation. It is used to assess the operative profitability of a company. You can use this ratio to analyse companies that reinvest heavily in their businesses by taking the Enterprise Value and dividing it by EBITDA.
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How are the cash flows? Is it negative? What is the dividend track record?
No relevance in the case of IPOs What is the promoters attitude towards shareholder rewards, in case of listed group companies?
Dividend policy Bonus issues Rights issues De-listing of group companies Past public issue pricing
How has been the performance of the group companies?

Number of years in the business Size of the companies Growth rates Market shares and growth Financials
How significant are the related party transactions?

Is it a family business? Do group companies constitute the main clientele? Is most raw materials sourced from group companies? Extent of related party financial transactions? Is there any conflict of interest among group companies? Are there companies in the group doing the same business?
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Who is on the Board of Directors?

Family-controlled or broad-based Independent directors Key directors-in terms of experience and connections Compliance of Clause 49 of the Listing Agreement on Corporate Governance
What are the products/ services of the company?

Old economy/ new economy? Cyclical? Flavour of the season? Upstream/ downstream? Market outlook? Be concerned about your own exposure to a particular industry.
What about technology?
Do not bother too much about this.
What about customers?

Over dependence on one or a few customers? Too many fixed priced, long-term contracts etc?
What is the size of the issue?
A large issue ensures better allotment as also better liquidity.
What will be the public float after the issue?
This is critical as public float finally determines the liquidity.
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What is the promoters holding after the issue? A small post-issue stake does not inspire much confidence Is the price justified?
Do not be guided by par premium parameters In Justification of Issue Price, look whether P/E has been calculated on recent period EPS or on weighted average of 2-3 years. Look at the peer group prices, but do not rely entirely on it. Industry low/ average/ high figures of P/E are deceptive; there are no two similar companies, each is unique. What has been the capital build up?
Previous public issues/rights issues/overseas issues/preferential issues. To whom, when, at what price? Is there any venture capital/private equity fund investment in the company? Who invested, when, at what price, for what stake? How does the offer price compare with price of allotments made to them? Are these now funds exiting fully or partially in this offer? Partial exit or no exit is more confidence building; VCs are expecting a higher secondary market exit price. In 2004-05, there were two such companies where VCs exited partially, NDTV and UTV. What are the objects of the issue?
Finance a new project (new/diversification)? Undertake expansion Augment working capital? Repay debt? (to promoters?) Do acquisitions? Fund subsidiaries? Open branches?
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For general corporate purposes? Exit to promoters/others (offer for sale); No fund inflows into the company? What are the components of the project cost?
Any oddities in the components of the project cost? Comparison of cost of projects of two similar companies difficult as there would rarely be two exactly similar projects. What has been the utilisation of existing capacity?
Is the present capacity fully/ substantially being used? How is the company financing the objects of the issue?
Is entire cost being funded by the present issue? Is company committing any internal accruals to the project? Is appraisal of any relevance? Good, if appraised but not a critical factor Are there any further capital raising plans?
This may lead to a dilution of your earnings. What is the time frame of deployment of issue proceeds?
Is it immediate or is it spread over next 2-3-4 years? If most of it is for later deployment, why money being raised now? Stretched deployment has its own hazards! What are the key risk factors?
Lawyers are now listing out too many risk factors to crowd out significant ones (e.g. communal India, South Asia conflict zone etc.)
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Sebi insists on too many irrelevant risk factors (e.g. First-generation entrepreneurs, rented premises etc.) Identify critical internal risk factors; likely impact on the company family disputes? Identify critical external risk factors; likely impact on the company - Dependence on airport infrastructure? - Future prospects of the principal? (stock exchange) - Over dependence on one industry? (for raw materials or customers) Are any major government approvals pending?
Some of these may have a major bearing on the company/project - Intermediary registration with SEBI? - NBFC approval from RBI? - Banking approval from RBI? - Pollution Control approval from PCB? - Licenses to run cinema halls? Is the industry highly regulated? Are there any significant trademark/ brand/ copyright issues?
This could be a problem area in many ways. Does the company own these? Recent case of Jet Airways and how it was resolved before the issue. Serious litigation by others can hurt the company. Where is the company listing?
Apply only if the company is listing at BSE/NSE. If a company is listing only at regional exchanges, you will have no exit, as almost all regional exchanges are lying closed.
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Is the company/ group company already listed abroad?

Will have better disclosures Will have better corporate governance Is there any special reservation for shareholders of the company/group companies?
A reservation increases the chances of allotments What is the record of investor complaints in listed entities?
Type of complaints Aging of complaints Number of complaints What additionally should one look for in an FPO?
Take a close look at the data of share prices/volumes in the recent period. What should one look out for in case the company has any listed group company?
Take a close look at the details of the share prices/volumes in the recent period over at least last one year Besides offer document, should one look at other sources of information?
Business channels, financial newspapers and the regular media. You will often find issues being discussed, graded etc. Just one example: Capital market rating of Shoppers Stop: 45/100 with the header Buyers Beware.
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If Investor get an allotment, how much and when should they sell?
There is no perfect answer. Exit depends upon your investment policy. Best is to set a target. If you treat IPOs as a pure trading opportunity sell upon listing if profits are available. If you are convinced about a company, do not sell in panic if it lists below the offer price If you invest in an IPO not to buy a trading instrument but to own a part of that business, then hold on.
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Appendix
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Questionnaire
Name : Age : Designation : _______________________________ ____ ______________________
Question 1 : Have you included IPOs in yours or your clients portfolio?

o o
Yes No
Question 2 : What was the size of Investment in IPO ? ________ Question 3 : Does IPO gave returns according to your expectations ?
o o
Yes No
Question 4: If not invested in IPO. What was the reason ? ________ Question 5 : Generally what are clients response towards investment in IPO ?
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Question 6 : What are the risks you associate with IPOs ? 1. 2. 3. 4. Aggressive pricing IPO grading system Psychological Factors Other _____________
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Bibliography
Website
www.bse.com www.investopedia.com/ipo http://knowledge.insead.edu/contents/Demers.cfm http://iporatings.in/2008/01/01/credit-rating-agency-icra-india/ http://www.icra.in/files/pdf/FAQs-IPOGrading.pdf www.money control. Com http://content.icicidirect.com/ULFiles/UploadFile_20051118114011.asp
Books
Going Public by James S. Arkebauer Investment analysis and Portfolio Management by Prasana Chandra Financial Management by I M Pandey IPO markets : Perspectives and Experiences by Vandana Shajan
Papers
Building the IPO Order Book: Underpricing and Participation Limits With Costly Information
by
Ann E. Sherman, Sheridan Titman .
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CRITICAL ANALYSIS OF IPOs FAILURE

A study cond ucted for finding reason

Under the Guidance of (Prof. Swati Basu Ghose)

Place : Bangalore Date : ____________

GUIDES SIGNATURE (SWATI BASU GHOSE)

with ideas which helped us in making this study more effective.

BODY OF THE PROJECT

Firms are going for IPO

Risk of firm associated with IPO

BOOK BUILDING PROCESS

History of Book Building Process

Book Building Process

Steps involved in Book Building Process

Limitations of Book Building Mechanism

Green Shoe Option

Our Conclusion on Book Building Process

History Flash Back

Credit Analysis & Research Ltd. (CARE)

Industrial Companies Service companies Infrastructure companies

Services offered by CARE are

CRISIL (Credit Rating Information Services of India Limited)

5/5 4/5 3/5 2/5 1/5

What an ICRA IPO Grade Is Not:

Number of IPO in 2009-2010

Minimum Order Quantity: 30 Shares Listing At: BSE, NSE

As on Date & Time

Bidding Status (IPO subscription detail):

Minimum Order Quantity: 6 Shares Listing At: BSE, NSE

3,725,000 0.1879 0.3758 0.8590

1,117,500 0.0000 0.0000 4.7604

2,607,500 0.0409 0.1296 1.0264

50,000 0.0000 0.4844 0.9632

7,500,000 0.1100 0.2300 1.5000

Minimum Order Quantity: 90 Shares Listing At: BSE, NSE

Bidding Status (IPO subscription detail):

Bidding Status (IPO subscription detail):

Minimum Order Quantity: 20 Shares Listing At: BSE, NSE

1,886,954 0.0000 0.0000 1.0776

566,086 0.0000 0.0000 3.1048

1,320,868 0.0017 0.0088 1.0223

200,000 0.0000 0.0000 0.0390

3,973,908 0.0000 0.0000 1.3000

Statement of Research Problem

Objective of Research Problem

Methodology of Data Collection

Tools for Data Collection

25 Aggressive pricing IPO grading system 10 Accounting Practise Other 40

Aggressive Pricing OF IPO

ISSUES ON EVALUATING THE ACCOUNTING CHARACTERISTICS OF IPO FIRMS

IPO grading system fails to produce desired results

Comparative analysis between 2004-2009 .

WOMEN OF RURAL INDIA

Empowering Rural India

Not a risk taker

Lack of Access to Proper Information

Alternative Investment Option

Lack of Financial Organization. No Financial Inclusion

No Encouragement to Banking Services

Lack of knowledge about Financial Market.

Factors to watch before investing in IPOs

Issue Type Fixed Price Book Building

Average size of Issue 37.88 1,108.04

How has been the performance of the group companies?

How significant are the related party transactions?