A study on IPO investemt

1. Title of the Project
A study on Equity analysis and Investment by salaried
individuals in Dombivli area.
Summer Project submitted to
H & G H Mansukhani Institute of Management
in partial fulfilment of the requirements for
Master in Management Studies
By
NINATH ASHOK SURVE
Roll No: 42
Specialization: Finance
Batch: 2022 - 2023
Under the guidance of
Krishika Chandwani Mam

2. A study on Equity analysis and Investment by salaried
individuals in Dombivli area.
Project submitted to
H & G H Mansukhani Institute of Management
in partial fulfilment of the requirements for
Master in Management Studies
By
NINATH ASHOK SURVE
Roll No: 42
Specialization: Finance
Batch: 2022 – 2023
Under the guidance of
Krishika Chandwani Mam
H. & G. H. Mansukhani Institute of Management
Ulhasnagar
January 2022

3. Student’s Declaration
I hereby declare that this report is submitted in partial fulfilment
of the requirement of MMS Degree of University of Mumbai to H.
& G. H. Mansukhani Institute of Management. This is my original
work and is not submitted for award of any degree or diploma or
for similar titles or prizes.
Name: NINATH ASHOK SURVE
Class: SYMMS
Roll No. : 42
Place: Ulhasnagar
Date: 14-01-2022

4. Certificate
This is to certify that the project submitted in partial fulfilment for
the award of MMS degree of University of Mumbai to H & G H
Mansukhani Institute of Management is a result of the bonafide
research work carried out by Mr Ninath Ashok Surve under my
supervision and guidance, no part of this report has been submitted
for award of any other degree, diploma or other similar titles or
prizes. The work has also not been published in any
journals/Magazine
Date
Place
External Guide Director

5. Faculty Guide
Executive Summary
1 Introduction
1.1 Meaning of Equity Analysis
1.2 Rationale of the study
1.3 Historical background of Equity Analysis
1.4 Types of Equity Analysis
1.5 Benefits of Equity Analysis
1.6 Structure of Equity Analysis
2 Review and literature
3 Research methodology
3.1 Problem definition
3.2 Objective of study
3.3 hypothesis
3.4 Scope of the study
3.5 Data source
3.6 Coverage area
3.7 Research design
3.8 Technique and tools
3.9 sample size
3.10 limitation
4 Data analysis and interpretation
5 Findings
6 Suggestions
7 Conclusions
8 Bibliography
9 Questionnaire

6. CHAPTER NO 1
1. Introduction.
1.1. Introduction to the topic.
An initial public offering (IPO) refers to the process of offering shares
of a private corporation to the public in a new stock issuance. An IPO
allows a company to raise capital from public investors. The transition
from a private to a public company can be an important time for private
investors to fully realize gains from their investment as it typically
includes a share premium for current private investors. Meanwhile, it
also allows public investors to participate in the offering.
Before an IPO, a company is considered private. As a pre-IPO private
company, the business has grown with a relatively small number of
shareholders including early investors like the founders, family, and
friends along with professional investors such as venture
capitalists or angel investors.
An IPO is a big step for a company as it provides the company with
access to raising a lot of money. This gives the company a greater
ability to grow and expand. The increased transparency and share
listing credibility can also be a factor in helping it obtain better terms
when seeking borrowed funds as well.
When a company reaches a stage in its growth process where it
believes it is mature enough for the rigors of SEC regulations along
with the benefits and responsibilities to public shareholders, it will
begin to advertise its interest in going public.
Typically, this stage of growth will occur when a company has reached
a private valuation of approximately $1 billion, also known as unicorn
status. However, private companies at various valuations with strong
fundamentals and proven profitability potential can also qualify for an
IPO, depending on the market competition and their ability to meet
listing requirements.
IPO shares of a company are priced through underwriting due
diligence. When a company goes public, the previously owned private
share ownership converts to public ownership, and the existing private

7. shareholders’ shares become worth the public trading price. Share
underwriting can also include special provisions for private to public
share ownership.
Generally, the transition from private to public is a key time for private
investors to cash in and earn the returns they were expecting. Private
shareholders may hold onto their shares in the public market or sell a
portion or all of them for gains.
Meanwhile, the public market opens up a huge opportunity for millions
of investors to buy shares in the company and contribute capital to a
company’s shareholders' equity. The public consists of any individual
or institutional investor who is interested in investing in the company.
Overall, the number of shares the company sells and the price for
which shares sell are the generating factors for the company’s new
shareholders' equity value. Shareholders' equity still represents shares
owned by investors when it is both private and public, but with an IPO
the shareholders' equity increases significantly with cash from the
primary issuance
An IPO comprehensively consists of two parts. The first is the pre-
marketing phase of the offering, while the second is the initial public
offering itself. When a company is interested in an IPO, it will
advertise to underwriters by soliciting private bids or it can also make
a public statement to generate interest.
The underwriters lead the IPO process and are chosen by the company.
A company may choose one or several underwriters to manage
different parts of the IPO process collaboratively. The underwriters are
involved in every aspect of the IPO due diligence, document
preparation, filing, marketing, and issuance.

8. 1.2. RATIONALE OF THE STUDY:
My study based on the fact rather than pure assumptions about the IPO
schemes cater for different category of people and give clear
understanding about schemes and break the myth about the IPO that
only few selected institutional investor and AMCs are benefited. And
rest is loser and expense ratio are hidden and entry load is low and exit
load is very high. Every investor has equal awareness about IPO
whether belong to tire two cities or metros. Picture is quite different all
myth about the IPO are came out of rather serious research. So, my
research tries to answer those entire questions arise in mind of common
investor about the subject.
1.3. HISTORICAL BACKGROUND OF IPO
The term initial public offering (IPO) has been a buzzword on Wall
Street and among investors for decades. The Dutch are credited with
conducting the first modern IPO by offering shares of the Dutch East
India Company to the general public.
Since then, IPOs have been used as a way for companies to raise capital
from public investors through the issuance of public share ownership.
Through the years, IPOs have been known for uptrends and
downtrends in issuance. Individual sectors also experience uptrends
and downtrends in issuance due to innovation and various other
economic factors. Tech IPOs multiplied at the height of the dot-com
boom as start-ups without revenues rushed to list themselves on the
stock market.
The 2008 financial crisis resulted in a year with the least number of
IPOs. After the recession following the 2008 financial crisis, IPOs
ground to a halt, and for some years after, new listings were rare.
More recently, much of the IPO buzz has moved to a focus on so-
called unicorns, start-up companies that have reached private
valuations of more than $1 billion. Investors and the media heavily
speculate on these companies and their decision to go public via an
IPO or stay private.

9. THE FIRST IPO:
The first modern IPO occurred in March 1602 when the Dutch East
India Company offered shares of the company to the public to raise
capital. The Dutch East India Company (VOC) became the first
company in history to issue bonds and shares of stock to the general
public.
Where IPOs are first sold?
The Dutch are credited with conducting the first modern IPO by
offering shares of the Dutch East India Company to the general public.
Since then, IPOs have been used as a way for companies to raise capital
from public investors through the issuance of public share ownership.
Modern ipo:
The first modern IPO occurred in March 1602 when the Dutch East
India Company offered shares of the company to the public to raise
capital. ... In other words, the VOC was officially the first publicly
traded company, because it was the first company to be ever actually
listed on an official stock exchange.
IPO INDUSTRY IN INDIA:
The Indian primary market was buzzing throughout the year. 63
companies collectively raised ₹1, 18,704 crore (USD 15.4 billion)
through IPOs during 2021. This is the highest amount of money raised
through IPOs in a calendar year.
1.4. Types of IPO
Fixed Price Issue
Under the fixed price issue, the company sets a fixed price at which
all their shares will be offered to the investors. To make this happen, a
company hires a merchant banker, an entity that will appraise and
reduce the level of risk for a company.
The merchant banker finds out the total current value of a company
along with its future prospectus. Apart from finding, they also make a
risk overview of all the investments and how it would reimburse the
investors when they face such enormous risk.

10. After studying and going through extensive research, they determine
the price of a particular share that should be fixed in order to raise
considerable capital for their company.
In this type of IPO, all investors know the price of a particular share
decided by the company before the company enters into public. They
pay the total fixed price while subscribing to the IPO of a specific
company.
Book Building Issue
In the book building issue, the price is released during the process of
IPO. The company sets no fixed price in this process, but there are
two different price bands.
The lowest price band is known as the “floor price,” and the highest
price band is known as the “cap price.” However, investors interested
in buying the shares have to make a bid within a demanding time
before the company sets the price.
However, the bidding is done within the range of 20% set by the
company or within a price band. Also, the company needs to clarify
the number of shares they wish to sell to the investors.
In the end, the final price depends entirely on the bids the company
obtains from the investors.
1.5. Benefits of IPO’s
Fundraising
The most often cited advantage of an initial public offering is money.
In 2016, the median proceeds received from an initial public offering
were $94.5 million, and many offerings bring in hundreds of millions
of dollars. For example, in 2016, the largest IPO—ZTO Express—
netted $1.4 billion. The proceeds from an IPO provide ample
justification for many companies to go public even without looking at
the other benefits, especially considering the many investment
opportunities available because of the new capital. These funds can
benefit a growing company in countless ways. Companies may use an
initial public offering to finance research and development, hire new
employees, build buildings, reduce debt, fund capital expenditure,

11. acquire new technology or other companies, or to bankroll any
number of other possibilities. The money provided by an IPO is
significant, and can transform the growth trajectory of a company.
Exit Opportunity
Every company has stakeholders who have contributed significant
amounts of time, money, and resources with the hopes of creating a
successful company. These founders and investors often go for years
without seeing any significant financial return on their
contributions. An initial public offering is a significant exit
opportunity for stakeholders, whereby they can potentially receive
massive amounts of money, or, at the very least, liquefy the capital
they currently have tied up in the company. As stated in the previous
paragraph, initial public offerings often raise nearly $100 million (or
even more), which makes them very attractive to founders and
investors who often feel that it is time to receive financial
compensation for years of “sweat equity1.” It is, however, important
to note that in order for founders and investors to receive liquidity
from an IPO, they will have to sell their shares of the now-public
company on a secondary exchange2 (e.g., New York Stock
Exchange). Shareholders do not immediately receive liquidity from
the proceeds of an IPO.
Publicity And Credibility
If a company hopes to continue to grow, it will need increased
exposure to potential customers who know about and trust its
products; an IPO can provide this exposure as it thrusts a company
into the public spotlight. Analysts around the world report on every
initial public offering in order to help their clients know whether to
invest, and many news agencies bring attention to different companies
that are going public. Not only do companies receive a great deal of
attention when they decide to go public, but they also receive
credibility. To complete an offering, a company must go through
intense scrutiny to ensure what they are reporting about themselves is
correct. This scrutiny, combined with many individuals’ tendencies to

12. trust public companies more, can lead to increased credibility for a
company and its products.
Reduced Overall Cost Of Capital
A major obstacle for any company, but especially younger private
companies, is their cost of capital. Before an IPO, companies often
have to pay higher interest rates to receive loans from banks or give
up ownership to receive funds from investors. An IPO can lessen the
difficulty of receiving additional capital significantly. Before a
company can even begin its formal IPO preparation process, it must
be audited according to PCAOB3 standards; this audit is normally
more scrutinizing than any prior audits, and fosters greater confidence
that what a company is reporting is accurate. This increased assurance
will likely result in lower interest rates on loans received from banks,
as the company is perceived as being less risky. On top of lower
interest rates, once a company is public, it can raise additional capital
through subsequent offerings on the stock exchange, which is usually
easier than raising capital through a private funding round.
Stock As A Means Of Payment
Being a public company also allows for the use of publicly traded
stock as a means of payment. While a private company has the ability
to use its stock as a form of payment, private stock is only valuable if
a favourable exit opportunity arises. Public stock, on the other hand,
is essentially a form of currency that can be bought and sold at a
market price at any moment, which can be helpful when
compensating employees and acquiring other businesses. For a
company to thrive, it must hire the right employees. The ability to pay
employees with stock or offer stock options allows a company to be
competitive when trying to hire top-tier talent, even if the base
monetary salary is lower than what competitors are offering.
Additionally, acquisitions are often an important way for companies
to continue to grow and stay relevant. However, acquiring other
companies is normally very expensive. When a company is public, it

13. has the option to issue shares of its stock as a means of payment,
rather than using millions of dollars of cash.
1.6. Structure of IPO:
Step 1: Hiring Of An Underwriter Or Investment Bank
To start the initial public offering process, the company will take the
help of financial experts, like investment banks. The underwriters
assure the company about the capital being raised and act as
intermediaries between the company and its investors. The experts will
also study the crucial financial parameters of the company and sign an
underwriting agreement. The underwriting agreement will usually have
the following components:
Step 2: Registration For IPO
This IPO step involves the preparation of a registration statement along
with the draft prospectus, also known as Red Herring Prospectus
(RHP). Submission of RHP is mandatory, as per the Companies Act.
This document comprises all the compulsory disclosures as per the
SEBI and Companies Act. Here’s a look at the key components of
RHP:
[ Definitions: It contains the definitions of the industry-specific terms.
Risk Factors: This section discloses the possibilities that could impact
a company’s finances.
Use of Proceeds: This section discloses how the money raised from
investors will be used.
Industry Description: This section details the working of the company
in the overall industry segment. For instance, if the company belongs
to the IT segment, the section will provide forecasts and predictions
about the segment.
Business Description: This section will detail the core business
activities of the company.

14. Management: This section provides information about key
management personnel.
Financial Description: This section comprises financial statements
along with the auditor's report.
Legal and Other Information: This section details the litigation against
the company along with miscellaneous information.]
This document has to be submitted to the registrar of companies, three
days before the offer opens to the public for bidding. Alongside, the
submitted registration statement has to be compliant with the SEC
rules. Post-submission, the company can make an application for an
IPO to SEBI.
Step 3: Verification by SEBI:
Market regulator, SEBI then verifies the disclosure of facts by the
company. If the application is approved, the company can announce a
date for its IPO.
Step 4: Making An Application To The Stock Exchange
The company now has to make an application to the stock exchange for
floating its initial issue.
Step 5: Creating a Buzz By Roadshows
Before an IPO opens to the public, the company endeavors to create a
buzz in the market by roadshows. Over a period of two weeks, the
executives and staff of the company will advertise the impending IPO
across the country. This is basically a marketing and advertising tactic
to attract potential investors. The key highlights of the company are
shared with various people, including business analysts and fund
managers. The executives adopt various user-friendly measures, like
Question and Answer sessions, multimedia presentations, group
meetings, online virtual roadshows, and so on.
Step 6: Pricing of IPO
The company can now initiate pricing of IPO either through Fixed Price
IPO or by Book Binding Offering. In the case of Fixed Price Offering,
the price of the company’s stocks is announced in advance. In the event

15. of Book Binding Offering, a price range of 20% is announced,
following which investors can place their bids within the price bracket.
For the bidding process, the investors have to place their bids as per the
company’s quoted Lot price, which is the minimum number of shares
to be purchased. Alongside, the company also provides for IPO Floor
Price, which is the minimum bid price and IPO Cap Price, which is the
highest bidding price. The booking is typically open from three to five
working days and investors can avail the opportunity of revising their
bids within the stipulated time. After completion ofthe bidding process,
the company will determine the Cut-Off price, which is the final price
at which the issue will be sold.
Step 7: Allotment of Shares
Once the IPO price is finalised, the company along with the
underwriters will determine the number of shares to be allotted to each
investor. In the case of over-subscription, partial allotments will be
made. The IPO stocks are usually allotted to the bidders within 10
working days of the last bidding date.

16. Chapter no 2
2. Literature Review:
Market for new issues is characterised by high degree of
uncertainty and informational asymmetry. New firms contemplating
to enter primary market with an initial public offering
faces the challenge to condense the uncertainty associated with a new
issue because this intensify the risk factor while information
asymmetry prevent investor to rationally evaluate the various
investment alternatives. Therefore, a prospective issuer must find a
way to convince its potential investors that issue is a good investment.
Many researcher investigating
the efficacy of these certification mechanism have discovered some
commonly used certification mechanism to signal the quality of IPO.
As per cost of information acquisition theory an effective certification
should allow issuer to reduce the under-pricing by lowering the
Information accumulation cost for investors and informational
asymmetry by signalling the fundamental value of firm. These
certifications can take several forms, like pre-public offering
Track record of firm, underwriters reputation, venture capital
participation, auditor quality, group affiliation, lock-up agreement,
management quality to name few. Beatty and Ritter
(1986), Carter and Manaster (1990), Carter, Dark and Singh (1998)and
Titman and True man (1986) studied the role of underwriter’s
reputation in IPO under-pricing and asserted that investment
community perceive underwriter’s reputation as an effective signal of
quality of IPOs therefore IPOs managed by renowned underwriters
observe less under-pricing than other IPOs.Beatty and Ritter (1986),
particularly, emphasized that underwriters have their reputational

17. capital at stake while pricing an issue which acts as an impetus for them
to ensure under-pricing equilibrium. In another study to investigate the
role of venture capital (VC) backing in IPO under-pricing Barry et al.
(1990) reported that presence of Venture capitalist
send positive signals about the quality of IPO. Additionally, their
empirical finding suggests that number of VCs, size of their ownership
in IPO issuing firm, and span of their service as board member acts as
a quality signal and reduces the level of under-pricing. This may,
partially, be because of their expertise in evaluating the prospects
of any venture that approaches them for funding and therefore IPOs
of firms backed by VCs appears to be a
relatively safe investment. Consistent with Barry’s findings Paul
A. Gompers (1996) and
Megginson and Weiss (1991)reported IPOs backed by experienced and
established venture capital funds are relatively less under-priced.
Contrary to these findings Lee and Wahal (2004) reported venture
capital backed IPO exhibit greater first day return than IPO without
Venture capital funding. Dewenter, Novaes and Pettway (2001)
studied the potential external conflict of interest between group
firms and outside investor. Using the IPO under-pricing as a measure
of trade-off between complexity and visibility of these groups they
compared the level of initial return for Japanese keiretsu group firms
with independent Japanese firms. Results support
significantly higher initial return for groups firm than independent
firms. Marisetty and Subrahmanyam (2010) asserted that IPOs that
are affiliated to business group, foreign business group and
government- affiliated firm experience greater under-pricing than
independent firms. In another study, Deb and Marisetty (2010)
reported that, in India, firm with high quality business group
affiliation receive higher grade and greater retail subscription. Yet
group affiliation does not necessarily reduce under-pricing as the
same is not priced. Hence, the overall results remain
inconclusive. Investigating the impact of lock-up agreements on
under-pricing the Goergen, Khurshed and Renneboog (2009) studied
that in countries belonging to same continent might observe varying
impact of VC lock-up agreement. For France new market, IPOs lock

18. up agreement acts as a substitute to under-pricing whereas German new
market observe more under-pricing, for feeble VC lock up agreement.
Many researcher have also studied the role of auditor’s quality in
signalling the IPO quality.Beatty (1989), Michaely and Shaw (1995),
Albring, Elder and Zhou (2007) and Titman and
Trueman (1986) reported that Initial public offering with high quality
auditors experience lower under-pricing.
Hence, we can summarize that a) not all forms of certification help in
lowering under-pricing as some might cause under-pricing to increase,
certifications forms varies in their degree of effectiveness , among all,
underwriter’s reputation and venture capital investment appears to be
more effective. However, an interesting question that arise in this
context is that, does the level of under-pricing is an appropriate measure
of effectiveness of certification mechanism?
Hopkins and Ross (2014) in their study investigated the explanatory
power of private equity backing as determinant of expected under-
pricing. Their results, however, revealed that due to multiplicity of
factors influencing the expected under-pricing and inability to account
them all the under-pricing cannot be called an appropriate measure
of certification effectiveness especially when other factors cannot not
be controlled. Latest studies, for instance, on IPO
under-pricing talks about the behavioural biases in IPO pricing which
must be taken care offMoreover, Hopkins and Ross (2014) found that
the driving force behind the under-pricing is
informational asymmetry between issuer and its broker and not
because of informational asymmetry between issuer and investors.

19. Chapter no 3
3. Research Methodology
3.1. Problem definition
To analyze the preference of IPO’S investment by Salaried individuals
3.2. Objective
1. To study the preference of IPO over other avenues of salaried
individuals of Dombivli.
2. To study the awareness of IPO investments in salaried individuals of
Dombivli.
3. To study if demographic factors have an impact on preference of IPO
investments by investors of Dombivli.
3.3. Hypothesis
H1: There is significant difference between age and preference IPO
H0: There is no significant difference between age and preference of
IPO
H2: There is significant difference between gender and preference of
IPO
H0: There is no significant difference between gender and preference
of IPO
3.4. Scope of study

20. The scope of the study is limited to understanding the procedural issues
pertaining to making an IPO and Listing it with stock exchange(s).
Further the scope is expanded to the extent of the hurdles that the
procedures and regulatory environment may create while the company
gears up for making an Initial Public Offer.
The scope of the study is to track out the investor’s preferences,
priorities and the awareness towards IPO. It is limited to investors
residing in Dombivli area. Due to time constraints only few investors
are considered. Others might have different view or preference.
3.5. Data source
Both primary and secondary sources were being used for data
collection. Structured Questionnaire was administered for primary
data collection while unstructured interviews with the executives,
company websites, journals and news papers formed the sources for the
collection of the secondary data
3.6. Coverage of area
1. Study will be conducted in Dombivli.
2. And mainly focus on salaried individuals.
3.7. Research design
Research design is descriptive and analytical.
Descriptive research
Descriptive research is a type of research that describes a population,
situation, or phenomenon that is being studied. It focuses on answering
the how, what, when, and where questions If a research problem, rather
than the why.

21. This is mainly because it is important to have a proper understanding
of what a research problem is about before investigating why it exists
in the first place.
Analytical Research
Analytical research is a specific type of research that involves critical
thinking skills and the evaluation of facts and
relative to the research being conducted. A variety of people including
students, doctors and psychologists use analytical research during
studies to find the most relevant information.
3.8.Technique and tools
Statistical tools is used to analyse the data like chi- square.
3.9.Sample size
The research has been conducted in Dombivli area with 100
respondents.
3.10. Limitations
1. Chances oferror in information collection because many of investors
may have not given actual answers to the questionnaire.
2. Since the researcher selected 100 sample size it is not sufficient to
cover opinion of entire population.
3. The lack of knowledge of customers about the financial instruments
can be a major limitation

22. Chapter no 4
4. Data analysis and interpretation
1.Age.
Interpretation:
It is observed that majority of investors are of between 20-40 ages.

23. 2. Gender.
Interpretation:
It is observed that majority of investors are male which is 54.5% and 45.5% is
female investors.

24. 3. Occupation
Interpretation:
It is observed that out of 101 responses 6.9% are of business man, 61% are
salaried investors, 20.8% are of professionalinvestors, 10.9% are other investors.
As we see here majority of investors are from salaried sector.

25. 4. Have Respondent ever invested money in IPO
Interpretation
It is observed that out of 101 responses, 75.2% are invested money
in IPO and 24.8% are not invested money in IPO.

26. 4.1.If Response of question 4 is yes-
a. Where do respondent find them self as IPO investor?
Interpretation
It is observe that out of 83 responses,
7.2% are totally ignorant.
21.7% are Partial knowledge of IPO.
33.7% are Aware only of a specific scheme of IPO.
37.3% are fully aware.

27. b.What Is The Source Of Information Respondent Use Before
Investing In IPO?
Interpretation
It is observe that out of 82 responses,
14.6% are through print media.
19.5% are through electronic media.
31.7% are through friend advice.
34.1% are through expert opinion.

28. 4.2. If Response of question 4 is No-
a. Why don’t respondents are investing in IPO?
Interpretation
It is observe that out of 32 responses,
46.8% are due to the Not aware of IPO.
43.8% are due to the higher risk.
9.4% are don’t have specific reason.

29. 5. How much do respondent invest in IPO
Interpretation
It is observe that out of 100 responses,
39.6% are invest between 0-50000.
23.8% are invest between 50000-100000.
14.9% are invest between 100000-500000.
21.8% are invest above 500000.

30. 6. What do respondent see before investing in IPO
Interpretation
It is observe that put of 100 responses,
35.6% are looking at performance of existing companies.
25.7% are looking at sector performance.
30.7% are looking at premium amount.
7.9% are looking at promoters background.

31. 7. What is the purpose of IPO INVESTMENT?
Interpretation
It is observe that out of 100 responses,
71.3% respondent choose listing gain and 28.7% respondent are
choose Long term gain.

32. 8.What do respondent feel about procedure for IPO’s
Interpretation
It is observe that out of 100 responses,
54.5% are feel Easy.
20.8% are feel Difficult.
8.9% are feel Complicated.
15.8% are feel Lengthy.

33. 9.WHAT DIFFICULTIES DID RESPONDENT FACE AFTER
INVESTING IPO's?
Interpretation
It is observe that out of 100 responses,
16.8% are face Refund problem.
20.8% are face problem of delay in crediting allotted shares to your
DEMAT account.
18.8% are face problem of no clarity in allotment.
43.6% are face none of above problems.

34. 10.IS THE IPO VENUE IMPORTANT FOR YOUR INVESTMENT
DECISION?
Interpretation
It is observe that out of 100 responses,
85.1% respondent thing IPO venue is important for those investment
decision and 14.9% respondent thing IPO venue is not important for
those investment decision.

35. 11.What is a respondent advice to new IPO investor.
Interpretation
It is observe that out of 101 responses,
13.9% are wants to give advice is – Go by only promoters.
14.9% are wants to give advice is – Go by only premium.
21.8% are wants to give advice is –Go by only sector performance
49.5% are wants to give advice is –Go by promoters, premium and
sector performance.

36. Chapter No 5
5. Finding
1. It is observed that out of 100 respondents majority are of from young age
between 20-40.
2. It is observed that out of 100 respondent’s male respondents is same as
compared to female.
3. It is observed that out of100 respondents, As we see here majority of investors
are from salaried sector.
4. It is observed that out of 100 respondents, As we see here majority of investors
are invest in IPO.
5. It is observed that out of 100 respondents, As we see here majority of
Investors Advice is to follow the promoters, premium and sectorperformance.

37. Chapter No 6
6. Suggestion
IPO Company needs to give the training of the Individual Financial
Advisors about the Fund/Scheme and its objective, because they are the
main source to influence the investors.
Before making any investment Financial Advisors should first enquire
about the risk tolerance of the investors/customers, their need and time
(how long they want to invest). By considering these three things they
can take the customers into consideration.
Systematic Investment Plan is one the innovative products launched by
Assets Management Companies very recently in the industry. SIP is
easy for monthly salaried person as it provides the facility of investing
through equated monthly installments.
Though most of the prospects and potential investors are not aware
about the SIP. There is a large scope for the companies to tap the
salaried persons.
As the investors are not willing to invest in IPO unless a minimum
return is assured, it is very essential to educate the investors about
mutual fund that they are market instruments and associated with
market risk hence the guarantee of assured return can’t be offered
IPO should formulate their working policy with the use of modern
technology like computer and tele-communications to render service to
the investors.
IPO are made by investors and investor’s interest ought to be
paramount by setting standard of behaviors and efficiency through
self-regulations and professionalism.

38. Chapter No 7
7. Conclusion
Running a successful IPO requires complete understanding of the
peculiarities of the Indian Stock Market and also the psyche of the small
investors. This study has made an attempt to understand the financial
behavior of IPO investors in connection with the preferences of Brand
(AMC), Products, and Channels etc. It is observed that many people
have fear of IPO. They think their money will not be secure in IPO.
They need the knowledge of IPO and its related terms. Many of people
do not have invested in IPO due to lack of awareness although they
have money to invest. As the awareness and income is growing the
number of IPO investors are also growing.
Investing in successful Mutual Fund needs comprehensive
understanding of the peculiarities of the stock exchanges and market
movement and also the awareness of the investors. This research paper
has made an effort to recognise the investment behaviour of investors
in connection with the factors impact on the decision making process.
It is witnessed that numerous respondents have fear of IPO. They
believe their money will not be secure in IPO. Investors require basic
knowledge of IPO and its related financial planning terms. Most of the
people do not investing in IPO due to lack of awareness although they
have fund to invest.

39. Chapter No 8
8 BIBLIOGRAPHY
https://www.nseindia.com/products-services/about-initial-public-offerings
https://groww.in/p/initial-public-offering/
https://www.investopedia.com/terms/i/ipo.asp

40. Chapter No 9
9 QUESTIONNAIRE
SURVEY ON INITIAL PUBLIC OFFERING
RESPONDANT NAME
____________________
EMAIL ID
____________________
AGE
_____
GENDER
 Male
 Female
 Other
OCCUPATION
 Salaried
 Business man
 Professional
 Other
HAVE YOU EVER INVESTED YOUR MONEY IN IPO?
 Yes
 No

41. IF YES,
A)WHERE DO YOU FIND YOURSELF AS A IPO INVESTOR?
 Totally ignorant
 Partial knowledge of IPO
 Aware only of a specific scheme of IPO
 Fully aware
B)WHAT IS THE SOURCEOF INFORMATION YOU USE BEFORE
INVESTING IN IPO's?
 Print media
 Electronic media
 Expert opinion
 Friend advice
IF NO,
A)WHY DON'T YOU INVESTING IN IPO?
 Not aware of IPO
 Higher risk
 Not specific reason
HOW MUCH DO YOU INVEST IN IPO's?
 0-50000
 50000-100000
 100000-500000
 Above 500000
WHAT DO YOU SEE BEFORE INVESTING IN IPO's? *
 Promoters background
 Sector performance
 Performance of existing companies
 Premium amount

42. WHAT IS THE PURPOSEOF IPO's INVESTMENT?
 Listing gain
 Long term gain
WHAT DO YOU FEEL ABOUT THE PROCEDUREFOR IPO's?
 Easy
 Difficult
 Complicated
 Lengthy
WHAT DIFFICULTIES DID YOU FACE AFTER INVESTING IPO's?
 Refund problem
 Delay in crediting allotted shares to your DEMAT account
 No clarity in allotment
 None of the above
IS THE IPO VENUE IMPORTANT FOR YOUR INVESTMENT DECISION?
 Yes
 No
WHAT ARE THE BIGGEST CONCERNS YOU SEE IN IPO
CANDIDATES?
 Issuer not having the right management
 Overpricing of stock at IPO
 Too young or too early a stage in a company’s lifecycle
 Not enough preparation for investor communications and meetings
 Listing not conducted at the right time
 Other
WHAT IS YOUR ADVICE TO NEW INVESTOR IN IPO's?
 Go by only promoters
 Go by only premium
 Go by only sectors performance
 Go by all of the above