1. PRESENTATION
ON
“A Study Of Valuation Of Issue Prices Of
Indian IPOs”
UNDERTAKEN AT
Shree Aditya securities
 Submitted By
Apoorva thakkar

2. About Shree Aditya
Securities
 Shree Aditya Securities is a diversified financial services
group of India , offering a multiple of investment options.
 Mr. Arvin Jain is the founder chairman of shree Aditya
Securities. Aditya Securities incorporated in 1995 at Indore
and it has 18 branches in All over India.
 Shree Aditya Securities Group is a member of the Bombay
Stock Exchange (BSE), National Stock Exchange (NSE) and
the two leading Commodity Exchanges in the country:
NCDEX & MCX.

3.  Share Market
 Trading
 Back Office Work
 Mock Trading
 Tele Calling
 Marketing & sales
LEARNING

4. A
STUDY OF VALUATION OF
ISSUE PRICES OF INDIAN
IPOs

5. WHAT IS AN IPO ?
 Initial Public Offering means the new offer of
shares from a company which was previously
unlisted.
 An initial public offering (IPO), referred to simply
as an "offering" or "flotation", is when a company
(called the issuer) issues common stock or shares
to the public for the first time.
 PRIMARY MARKET
 The primary market is that part of the capital
markets that deals with the issue of new
securities.

6. PURPOSE
 The first sale of stock
by a private company
to the public, IPOs
are often A issued by
smaller, younger
companies seeking
capital to expand
 large privately-owned
companies looking to
become publicly
traded.

7. VALUATION OF IPO’S
IPO valuation
By SEBI
By credit
rating
agencies
By investors

8. Valuation :-
 The Securities &
Exchange Board of
India (SEBI) has
regulatory authority
for stock market.
 SEBI made some
strict norms related
to IPO listing for
investors safety.
 IPO grading can act
as an additional
decision-making tool
for investors.
 A Grading of IPOs in
terms of their
fundamental quality
will enable investors
steer clear of
unsound offers.
By SEBI :- By credit rating agencies :-

9. India’s top 10 IPOs'
 ONGC : 9500 crores
 DLF : 9188 crores
 Cairn India - 5788 crores
 Tata Consultancy Services 5420 crores
 NTPC – 5368 crores
 Reliance Petroleum – 2700 crores
 Idea Cellular – 2443 crores
 Reliance Petroleum – 2172
 Jet Airways – 1899 crores
 Coal India – 2509 crores

10. OBJECTIVE OF THE
REPORT:
To know the process of Valuation of IPOs
To understand the Impact of miss-valuation
on its performance
To know any changes in IPOs before and
after recession
To understand the Benefits to investor from
IPOs or dealing in secondary market
To know regulatory consideration with IPO
Methods of IPO process
To study about IPO ratings, documents,
performance tracker and basis of Allotment.

11. FINDING
 Majority of the respondents strongly agreed to
take IPO as a beneficial tool.
 50% respondents strongly agree that size of IPO is
affected the listing.
 Most of the investors don’t think that Market
situation is always responsible for IPO valuation
and pricing.
 40% of the respondents are agreed that Pricing of
the IPO’s are less dependable on ratings which is
given by credit Rating agencies,

12. LIMITATIONS OF THE STUDY
 The above study is limited only with the valuation of
the IPO’s.
 The study is conducted in Ujjain City only.
 Sample size is too small as the respondent size is
limited up to 50 for this study.
 Data available was not sufficient, there was lack of
availability of data as most of it was confidential for
the companies.
 Language is one of the constraint during
questionnaire filling.

13. CONCLUSION
The research study is found that the listings of IPO
in primary market is given higher return ,but is a
risky instrument and short term investment. The
motive of the study is to check the satisfaction
level of the investor. The study concluded that
investing in IPO is required A small business
interested in going public must apply to the
Securities and Exchange Commission (SEC) for
permission to sell stock to the public. The SEC
registration process is quite complex and requires
the company to disclose a variety of information
to potential investors.