Emergence of Initial Public Offers as an Investment Avenue

MBA Business Finance Management Dissertation Ideas, Economics Projects Topics Thesis Ideas and Abstracts in PDF, DOC, PPT

Emergence of Initial Public Offers as an Investment Avenue

Postby Anup V » Tue Aug 07, 2012 11:09 pm

As nowadays IPO’s have become a good investment avenue for investors So, I have done the project Titled “Emergence of IPO as an investment avenue” at Angel Broking Ltd. a very well known stock broking firm. The project was carried out in the Pune office of Angel Broking Ltd. which is located at Kalyani Nagar. The duration of the project was two months.Any sector that produces goods or services is called as real sector. For producing goods or services finance is required. Hence for real sector, financial system is required. Financial System is a backbone of any economy. The financial sector plays an important role in the economy of any nation. A well-regulated and well-developed financial sector is vital to achieving the most basic need of efficient allocation of scarce resources. In any market economy, the banking and financial system plays a key role in mobilizing a society's savings and in channeling these savings into productive uses and investments. In providing an efficient and rigorous process for intermediating the flow of a society's savings into productive uses, the banking and financial system is one of the core determinants of the pace of a country's economic development and increase in the standards of living of its citizens.

Furthermore, the banking and financial system must facilitate transactions in an economy by ensuring that they can be effected safely and swiftly on an ongoing basis. The significance of the financial system for an economy arises from at least three major sources. First, it performs various transformation functions relating to intermediation of funds in the economy. Secondly, it provides the mirror image of the underlying real economy and the basic macro-economic balances. Thirdly, it is one industry whose basis of operation is underpinned in public trust.

Objective of the Project

The objectives of carrying out study are as follows:-

1. To be well versed with concept of IPO.

2. Aspects of IPO from Company’s & Investor’s point of view.

3. Factors affecting IPO listing Price.

4. Comparison between IPO’s of two companies from the same sector for feasible investment decision.

Concept of IPO

1 IPO is an acronym for (Initial Public Offering).

2 The Initial Public Offering or IPO market as it is known, received a new lease of life in FY99.

3 An IPO is when a company makes either a fresh issue of securities or an offer for sale of its existing securities to the public for the first time. It refers to first sale of stock by a company to a public.


5 For a company to offer IPOs, they need to hire a corporate lawyer as well as an investment banker to underwrite the offer. The actual sale of the shares is generally offered by stock exchange or by regulators. When the company starts to offer IPOs, they are usually required to reveal financial information about the company so that investors know whether the companies a good investment or not.

6 This paves the way for listing in stock exchange in the first case, & trading of the issuer’s securities in the second.

7 With high profile issues like Hughes Software and TV-18 opening at more than 3 and 10 times their issue price respectively, investors are flocking to the IPO market like never before. Companies, which had earlier shied away from the capital market, are now returning with a vengeance to satiate the appetite of investors.
Anup V
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