[ FOR THE PARTIAL FULFILLMENT OF Post graduation Diploma in management DEGREE] Dissertation final project A feasibility study on the

basis of IPO Pricing as an Investment indicator UNDER THE FACULTY OF FINANCE DEPARTMENT RESEARCH GUIDE
Prof. Dr Amarjeet Singh Khalsa SUBMITTED BYNitesh Bhawsar

ACKNOWLEDGEMENT
At the very outset I would like to thanks prof. Amarjeet Khalsa for the time and effort he devoted in explaining me the project and for providing me the opportunity to do this research project report. I would also like to thanks to my parents, friends and all those who have been associated with my project directly and indirectly.

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NITESH BHAWSAR
IPER PGDM

CONTENTS 1. Conceptual overview5

1.1 Introduction of IPO 6 1.2 Advantages and disadvantage of IPO 7 1.3 Types of issues 8

2. Research methodology.11
2.1 Objective of my research. 12 2.2 Collection of data. 12 2.3 Significance. 13 2.4 Limitations....13

3. Theoretical Background...14
3.1 Classification of issues15 3.2 Types of Offer Documents (ODs)...16 3.3 Guide to understand an Offer Document17 3.4 Pricing of an Issue...19 4.5 Parameters to judge an IPO.20 3.6 IPO scam..21 3.7 Intermediaries involved in the Issue Process ..................28 3.8 IPO Grading.28 3.9 Sebi Norms...31 3.10 Marketing of IPO...32 3.11 Largest IPO in India and world..34 2|Iper Pgdm

3.12 Top and worst IPO performers ( 21 June 2010).40

4. Data Analysis.44 5. Findings and Conclusions.129

Bibliography..133

DECLARATION I Nitesh Bhawsar student of Post Graduate Diploma in Management (PGDM), Institute of Professional Education & Research, and Bhopal hereby declare that I have completed this Dissertation on A study on the basis of IPO Pricing feasibility as an Investment indicator in the academic year June 2011. The Information submitted is true and original to the best of my knowledge.

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NITESH BHAWSAR

Chapter -1 Conceptual overview

INTRODUCTION As we all know IPO INITIAL PUBLIC OFFERING is the hottest topic in the current industry, mainly because of India being a developing country and lot of growth in various sectors which leads a country to ultimate success. And when we talk about countrys growth which is dependent on the kind of work and how much importance to which sector is given. And when we say or talk about industries growth which leads the economy of country has to be balanced and given proper finance so as to reach the levels to fulfill the needs of the society. And industries which have massive outflow of work and a big portfolio then its very difficult for any company to work with limited finance and this is where IPO plays an important role. This report talks about how IPO helps in raising fund for the companies going public, what are its pros and cons, and also it gives us detailed idea why companies go public. How and what are 4|Iper Pgdm

the steps taken by the companies before going for any IPO and also the role of (SEBI) Securities and Exchange Board of India the BSE and NSE , what are primary and secondary markets and also the important terms related to IPO. It gives us idea of how IPO is driven in the market and what are various factors taken into consideration before going for an IPO. And it also tells us how we can more or less judge a good IPO. Then we all know that scams have always been a part of any sector you go in for which are covered in it and also few recommendations are given for the same. It also gives us some idea about what are the expenses that a company undertakes during an IPO. IPO has been one of the most important generators of funds for the small companies making them big and given a new vision in past and it is still continuing its work and also for many coming years.

Initial public offer (IPO): When an unlisted company makes either a fresh issue of securities or offers its existing securities for sale or both for the first time to the public, it is called an IPO. This paves way for listing and trading of the issuers securities in the Stock Exchanges. An initial public offering, or IPO, is the first sale of stock by a company to the public. A company can raise money by issuing either debt or equity. If the company has never issued equity to the public, it's known as an IPO. An IPO is the first sale of stock by a company to the public. A company can raise money by issuing either debt or equity. If the company has never issued equity to the public, it's known as an IPO. Companies fall into two broad categories: private and public. A privately held company has fewer shareholders and its owners don't have to disclose much information about the company. Anybody can go out and incorporate a company: just put in some money, file the right legal documents and follow the reporting rules of your jurisdiction. Most small businesses are privately held. But large companies can be private too. Did you know that IKEA, Domino's Pizza and Hallmark Cards are all privately held? It usually isn't possible to buy shares in a private company. You can approach the owners about investing, 5|Iper Pgdm

but they're not obligated to sell you anything. Public companies, on the other hand, have sold at least a portion of themselves to the public and trade on a stock exchange. This is why doing an IPO is also referred to as "going public." Public companies have thousands of shareholders and are subject to strict rules and regulations. They must have a board of directors and they must report financial information every quarter. In the United States, public companies report to the Securities and Exchange Commission (SEC). In other countries, public companies are overseen by governing bodies similar to the SEC. From an investor's standpoint, the most exciting thing about a public company is that the stock is traded in the open market, like any other commodity. If you have the cash, you can invest. The CEO could hate your guts, but there's nothing he or she could do to stop you from buying stock. The first sale of stock by a private company to the public, IPOs are often issued by smaller, younger companies seeking capital to expand, but can also be done by large privatelyowned companies looking to become publicly traded. In an IPO, the issuer obtains the assistance of an underwriting firm, which helps it determine what type of security to issue (common or preferred), best offering price and time to bring it to market. IPOs can be a risky investment. For the individual investor, it is tough to predict what the stock will do on its initial day of trading and in the near future since there is often little historical data with which to analyze the company. Also, most IPOs are of companies going through a transitory growth period, and they are therefore subject to additional uncertainty regarding their future value. Primary and Secondary markets In the primary market securities are issued to the public and the proceeds go to the issuing company. Secondary market is term used for stock exchanges, where stocks are bought and sold after they are issued to the public.

PRIMARY MARKET
The first time that a companys shares are issued to the public, it is by a process called the initial public offering (IPO). In an IPO the company offloads a certain percentage of its total shares to the public at a certain price. Most IPOS these days do not have a fixed offer price. Instead they follow a method called BOOK BUILDIN PROCESS, where the offer price is placed in a band or a range with the highest and the lowest value (refer to the newspaper clipping on the page). The public can bid for the shares at any price in the band specified. Once the bids come in, the company evaluates all the bids and decides on an offer price in that range. After the offer price is fixed, the company allots its shares to the people who had applied for its shares or returns them their money. SECONDRY MARKET Once the offer price is fixed and the shares are issued to the people, stock exchanges facilitate the trading of shares for the general public. Once a stock is listed on an exchange, people can start trading in its shares. In a stock exchange the existing shareholders sell their shares to anyone who is willing to buy them at a price agreeable to both parties. Individuals cannot buy or sell shares in a stock exchange directly; they have to execute their transaction through authorized members of the stock exchange who are also called STOCK BROKERS. IPO ADVANTAGES AND DISADVANTAGES

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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 memorandum 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 memorandum is to provide a thumbnail sketch of the process. The reader should understand that the process is very time consuming and complicated and companies should undertake this process only after serious consideration of the advantages and disadvantages and discussions with qualified advisors. Advantages of going public 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. Liquidity Once shares of a company are traded on a public exchange, those shares have a market value and can be resold. This allows a company to attract and retain employees by offering stock incentive packages to those employees. Moreover, it also provides investors in the company the option to trade their shares thus enhancing investor confidence. Increased Prestige Public companies often are better known and more visible than private companies, this enables them to obtain a larger market for their goods or services. Public companies are able to have access to larger pools of capital as well as different types of capital. 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. Increased wealth The founders of the company often have the sense of increased wealth as a result of the IPO. Prior to the IPO these shares were illiquid and had a more subjective price. These shares now have an ascertainable price and after any lockup period these shares may be sold to the public, subject to limitations of federal and state securities laws. Disadvantages of 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. 7|Iper Pgdm

 Disclosure The SEBI disclosure rules are very extensive. Once a company is a reporting company it must provide information regarding compensation of senior management, transactions with parties related to the company, conflicts of interest, competitive positions, how the company intends to develop future products, material contracts, and lawsuits Act requires public companies 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 SEBI 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

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Chapter -2
Research Methodology

OBJECTIVE OF MY RESEARCH
To analyze ipos of last five years and try to analyze its performance To analyze on the basis of p/e ratio and compare p/e to industry p/e To analyze EPS, RONW, NAV AND BOOK VALUE to the industry peers and then check how these indicators impact on stock price To find financial and non financial indicators that can be used to decide about investing in IPO,s by retails investors To using all the financial and non financial parameter which give us investment decision in ipo 9|Iper Pgdm

Through this research we will come to know that financial and non financial indicators works or not in investment decision. COLLECTION OF DATA Primary data primary data collection methods involve individuals collecting data for themselves using means such as interviews as well as questionnaires. The main feature of primary data collection is that the information that is collected is unique to the individual and his or her research, and is not seen by anyone else until after it has been published. A number of different methods of collecting primary data are used including questionnaires, interviews, focus group interviews, observations, case-studies, diaries, critical incidents as well as portfolios. Secondary data Secondary data is the data that have been already collected by and readily available from other sources. Such data are cheaper and more quickly obtainable than the primary data and also may be available when primary data can not be obtained at all. Advantages of Secondary data 1. It is economical. It saves efforts and expenses. 2. It is time saving. 3. It helps to make primary data collection more specific since with the help of secondary data, we are able to make out what are the gaps and deficiencies and what additional information needs to be collected. 4. It helps to improve the understanding of the problem. 5. It provides a basis for comparison for the data that is collected by the researcher. Disadvantages of Secondary Data 1. Secondary data is something that seldom fits in the framework of the marketing research factors. Reasons for its non-fitting are:A) Unit of secondary data collection-Suppose you want information on disposable income, but the data is available on gross income. The information may not be same as we require. B) Class Boundaries may be different when units are same. I using the secondary data of last 5 years of IPO came from Jan 2006 to April 2011 Using various financial tools ratios , subscription pattern and recommendation of brokerage house For the research I take 30 companies in these I take a only above 800 cr size of IPO Use credit rating of ICRA, CARE, CRISIL to analyze IPO,s SIGNIFICANCE It will help in investment decision for retail investors Financial indicators will help for retail investors for analysis of IPO LIMITATIONS Time constant

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 The trend of last five year IPO may or may not reflect the performance due to volatility of market Small sample of IPO take a those IPO which have issue size is more then 800 Crore, so its also reduces the numbers of IPOs Take only IPO of price band not a fixed price of price band. Credit rating is available for those IPO,s which are came after 2008

Chapter-3
Theoretical background

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CLASSIFICATION OF ISSUES

Initial public offer (IPO): When an unlisted company makes either a fresh issue of securities or offers its existing securities for sale or both for the first time to the public, it is called an IPO. This paves way for listing and trading of the issuers securities in the Stock Exchanges. (A) Further public offer (FPO) or Follow on offer: When an already listed company makes either a fresh issue of securities to the public or an offer for sale to the public, it is called a FPO. (b) Rights issue (RI): When an issue of securities is made by an issuer to its shareholders existing as on a particular date fixed by the issuer (i.e. record date), it is called an rights issue. The rights are offered in a particular ratio to the number of securities held as on the record date. (c) Bonus issue: When an issuer makes an issue of securities to its existing shareholders as on a record date, without any consideration from them, it is called a bonus issue. The shares are issued out of the Companys free reserve or share premium account in a particular ratio to the number of securities held on a record date. (d) Private placement: When an issuer makes an issue of securities to a select group of persons not exceeding 49, and which is neither a rights issue nor a public issue, it is called a private placement. Private placement of shares or convertible securities by listed issuer can be of two types: 12 | I p e r P g d m

(i) Preferential allotment: When a listed issuer issues shares or convertible securities, to a select group of persons in terms of provisions of Chapter XIII of SEBI (DIP) guidelines, it is called a preferential allotment. The issuer is required to comply with various provisions which interalia include pricing, disclosures in the notice, lockin etc, in addition to the requirements specified in the Companies Act. (ii) Qualified institutions placement (QIP): When a listed issuer issues equity shares or securities convertible in to equity shares to Qualified Institutions Buyers only in terms of provisions of Chapter XIIIA of SEBI (DIP) guidelines, it is called a QIP.

Types of Offer Documents (ODs)

Offer document is a document which contains all the relevant information about the company, promoters, projects, financial details, objects of raising the money, terms of the issue etc and is used for inviting subscription to the issue being made by the issuer. Offer Document is called Prospectus in case of a public issue or offer for sale and Letter of Offer in case of a rights issue. (i) Draft offer document: is an offer document filed with SEBI for specifying changes, if any, in it, before it is filed with the Registrar of companies (ROCs). Draft offer document is made available in public domain including SEBI website, for enabling public to give comments, if any, on the draft offer document. (ii) Red herring prospectus is an offer document used in case of a book built public issue. It contains all the relevant details except that of price or number of shares being offered. It is filed with RoC before the issue opens. (iii) Prospectus is an offer document in case of a public issue, which has all relevant details including price and number of shares being offered. This document is registered with RoC before the issue opens in case of a fixed price issue and after the closure of the issue in case of a book built issue. (iv) Letter of offer is an offer document in case of a Rights issue and is filed with Stock exchanges before the issue opens. (v) Abridged prospectus is an abridged version of offer document in public issue and is issued along with the application form of a public issue. It contains all the salient features of a prospectus. (vi) Abridged letter of offer is an abridged version of the letter of offer. It is sent to all the shareholders along with the application form. (vii) Shelf prospectus is a prospectus which enables an issuer to make a series of issues within a period of 1 year without the need of filing a fresh prospectus every time. This facility is available to public sector banks /Public Financial Institutions.

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(viii) Placement document is an offer document for the purpose of Qualified Institutional Placement and contains all the relevant and material disclosures. Guide to understand an Offer Document This subsection attempts to inform the structure of presentation of the content in an offer document. The basic objective is to help the reader to navigate through the content of an offer document. (a) Cover Page Under this head full contact details of the Issuer Company, lead managers and registrars, the nature, number, price and amount of instruments offered and issue size, and the particulars regarding listing. Other details such as Credit Rating, IPO Grading, risks in relation to the first issue, etc are also disclosed if applicable. (b) Risk Factors Under this head the management of the issuer company gives its view on the Internal and external risks envisaged by the company and the proposals, if any, to address such risks. The company also makes a note on the forward looking statements. This information is disclosed in the initial pages of the document and also in the abridged prospectus. It is generally advised that the investors should go through all the risk factors of the company before making an investment decision. (c) Introduction Under this head a summary of the industry in which the issuer company operates, the business of the Issuer Company, offering details in brief, summary of consolidated financial statements and other data relating to general information about the company, the merchant bankers and their responsibilities, the details of brokers/syndicate members to the Issue, credit rating (in case of debt issue), debenture trustees (in case of debt issue), monitoring agency, book building process in brief, IPO Grading in case of First Issue of Equity capital and details of underwriting Agreements are given. Important details of capital structure, objects of the offering, funds requirement, funding plan, schedule of implementation, funds deployed, sources of financing of funds already deployed, sources of financing for the balance fund requirement, interim use of funds, basic terms of issue, basis for issue price, tax benefits are also covered. (d) About us Under this head a review of the details of business of the company, business strategy, competitive strengths, insurance, industryregulation (if applicable), history and corporate structure, main objects, subsidiary details, management and board of directors, compensation, corporate governance, related party transactions, exchange rates, currency of presentation and dividend policy are given. (e) Financial Statements Under this head financial statement and restatement as per the requirement of the Guidelines and differences between any other accounting policies and the Indian 17Accounting Policies (if the Company has presented its Financial Statements also as per 14 | I p e r P g d m

either US GAAP/IFRS) are presented. (f) Legal and other information Under this head outstanding litigations and material developments, litigations involving the company, the promoters of the company, its subsidiaries, and group companies are disclosed. Also material developments since the last balance sheet date, government approvals/licensing arrangements, investment approvals (FIPB/RBI etc.), technical approvals, and indebtedness, etc. are disclosed. (g) Other regulatory and statutory disclosures Under this head, authority for the Issue, prohibition by SEBI, eligibility of the company to enter the capital market, disclaimer statement by the issuer and the lead manager, disclaimer in respect of jurisdiction, distribution of information to investors, disclaimer clause of the stock exchanges, listing, impersonation, minimum subscription, letters of allotment or refund orders, consents, expert opinion, changes in the auditors in the last 3 years, expenses of the issue, fees payable to the intermediaries involved in the issue process, details of all the previous issues, all outstanding instruments, commission and brokerage on, previous issues, capitalization of reserves or profits, option to subscribe in the issue, purchase of property, revaluation of assets, classes of shares, stock market data for equity shares of the company, promise visvis performance in the past issues and mechanism for redressal of investor grievances is disclosed. (h) Offering information Under this head Terms of the Issue, ranking of equity shares, mode of payment of dividend, face value and issue price, rights of the equity shareholder, market lot, nomination facility to investor, issue procedure, book building procedure in details along with the process of making an application, signing of underwriting agreement and filing of prospectus with SEBI/ROC, announcement of statutory advertisement, issuance of confirmation of allocation note("can") and allotment in the issue, designated date, general instructions, instructions for completing the bid form, payment instructions, submission of bid form, other instructions, disposal of application and application moneys, , interest on refund of excess bid amount, basis of allotment or allocation, method of proportionate allotment, dispatch of refund orders, communications, undertaking by the company, utilization of issue proceeds, restrictions on foreign ownership of Indian securities, are disclosed. (i) Other Information This covers description of equity shares and terms of the Articles of Association, material contracts and documents for inspection, declaration, definitions and abbreviations, etc.

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Pricing of an Issue
(a) Who fixes the price of securities in an issue? Indian primary market ushered in an era of free pricing in 1992. SEBI does not play any role in price fixation. The issuer in consultation with the merchant banker on the basis of market demand decides the price. The offer document contains full disclosures of the parameters which are taken in to account by merchant Banker and the issuer for deciding the price. The Parameters include EPS, PE multiple, return on net worth and comparison of these parameters with peer group companies. (b) What is the difference between Fixed price issue and Book Built issue? On the basis of Pricing, an issue can be further classified into Fixed Price issue or Book Built issue. Fixed Price Issue: When the issuer at the outset decides the issue price and mentions it in the Offer Document, it is commonly known as Fixed price issue. Book built Issue: When the price of an issue is discovered on the basis of demand received from the prospective investors at various price levels, it is called Book Built issue. For more explanation on Book Built Issues please refer to the section titled Understanding Book Building 5. Understanding Book Building: (a) What is book Building? Book building is a process of price discovery. The issuer discloses a price band or floor price before opening of the issue of the securities offered. On the basis of the demands received at various price levels within the price band specified by the issuer, Book Running Lead Manager (BRLM) in close consultation with the issuer arrives at a price at which the security offered by the issuer, can be issued. (b) What is a price band? The price band is a band of price within which investors can bid. The spread between the floor and the cap of the price band shall not be more than 20%. The price band can be revised. If revised, the bidding period shall be extended for a further period of three days, subject to the total bidding period not exceeding thirteen days. (c) How does Book Building work Book building is a process of price discovery. A floor price or price band within which the bids can move is disclosed at least two working days before opening of the issue in case of an IPO and atleast one day before opening of the issue in case of an FPO. The applicants bid for the shares quoting the price and the quantity that they would like to bid at. After the bidding process is complete, the cutoff price is arrived at based on the demand of securities. The basis of Allotment is then finalized and allotment/refund is undertaken. The final prospectus with all the details including the final issue price and the issue size is filed with ROC, thus completing the issue process. Only the retail investors have the option of bidding at cutoff.

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Parameters to judge an IPO

Good investing principles demand that you study the minutes of details prior to investing in an IPO. Here are some parameters you should evaluate:Promoters Is the company a family run business or is it professionally owned? Even with a family run business what are the credibility and professional qualifications of those managing the company? Do the top level managers have enough experience (of at least 5 years) in the specific type of business? Industry Outlook The products or services of the company should have a good demand and scope for profit. Business Plans Check the progress made in terms of land acquisition, clearances from various departments, purchase of machinery, letter of credits etc. A higher initial investment from the promoters will lead to a higher faith in the organization. Financials Why does the company require the money? Is the company floating more equity than required? What is the debt component? Keep a track on the profits, growth and margins of the previous years. A steady growth rate is the quality of a fundamentally sound company. Check the assumptions the promoters are making and whether these assumptions or expectations sound feasible. Risk Factors The offer documents will list our specific risk factors such as the companys liabilities, court cases or other litigations. Examine how these factors will affect the operations of the company. Key Names Every IPO will have lead managers and merchant bankers. You can figure out the track record of the merchant banker through the SEBI website. Pricing Compare the companys PER with that of similar companies. With this you can find out the P/E Growth ratio and examine whether its earning projections seem viable. IPO SCAMS YES BANK Ltd. CASE The modus operandi adopted in manipulating the YES Bank Ltd (YBL)'s initial public offering (IPO) allotment involved opening of over 7,500 benami dematerialised accounts. These accounts were with the National Securities Depository Ltd (NSDL) through Karvy Stockbroking Ltd (Karvy-DP). Of the 13 erring entities, the chief culprits identified by SEBI were Ms Roopalben Panchal and Sugandh Estates and Investments Pvt Ltd. While Ms Panchal opened 6,315 benami DP accounts, another entity Sugandh opened 1,315 benami accounts. Each of these accounts applications were made for 1,050 shares, paying application money of Rs 47,250 each. By applying for small lots (1,050 shares through each accounts), they misused the retail allotment quota stipulated for IPOs. The shares allotted in IPO to the benamis of Ms Panchal and Sugandh would have otherwise gone to genuine retail applicants. The IPO of YBL opened on June 15, 2005 and its shares were listed on the BSE and the NSE on July 12, 2005. 17 | I p e r P g d m

It was observed that Ms Panchal had transferred 9,31,600 shares to various entities in seven offmarket transactions on July 11 - a day prior to the listing and commencement of trading on the stock exchanges. In order to get an allotment of 9,31,600 shares, Ms Panchal would have had to apply for crores of shares involving many crores of rupees in application money. However, Ms Panchal's name did not appear in the list of top 100 public issue allottees. Thus, it was suspected that Ms Panchal must have made multiple applications or that other applicants were acting as a front for her. Ms Panchal had applied for only 1,050 shares in the YES Bank IPO, paying the application money of Rs 47,250. And she did not receive any allotment in the IPO. On July 6, Ms Panchal received 150 shares each from 6,315 allottees through off-market transactions aggregating 9,47,250 YBL shares. Curiously, as per the dematerialised account data furnished by NSDL, of the above 6,315 entities as many as 6,221 entities have a same address in Ahmedabad. There are three more addresses of locations in Ahmedabad, which have been linked to Ms Panchal. All the 6,315 entities have their bank accounts with Bharat Overseas Bank and demat accounts with KarvyDP. By applying for the maximum possible number of shares per applicant while being categorised as retail applicant and by putting in large number of applications in the lot of 1,050 shares, Ms Panchal and her associates (real or fictitious) have attempted to corner the maximum possible number of shares in the IPO allotment. This tantamounts to an abuse of IPO allotment process, the SEBI order said. A similar modus operandi was adopted by Sugandh, which received 150 shares each from 1,315 dematerialised accounts aggregating 1,97,250 shares in off market transactions. According to SEBI findings, Ms Panchal and others booked profits to the tune of about Rs 1.70 crore on the day of the listing of YES Bank shares.

SEBI unearths another IPO scam in IDFC SEBI on Thursday 12 Jan 06 unearthed yet another abuse of IPO norms in the IDFC's initial public offering (IPO) where a few investors opened over 14,000 dematerialised accounts to corner large number of shares of the company. This is the second such incident, after a similar such violations were detected in the YES Bank's IPO. SEBI said in IDFC's IPO too four investors opened as many as 14,807 dematerialized accounts with Karvy-DP and "strangely", all these account holders have their bank accounts with Bharat Overseas Bank Ltd, Ahmedabad. SEBI order said: "further probe is required for examining the systemic fault, if any, of the registrar Karvy-RTI i.e. Karvy Computer Shares P Ltd, and the lead managers Kotak Mahindra Capital Company Ltd, DSP Merrill Lynch Ltd and SBI Capital Markets Ltd in identifying and weeding out the benami applications." Reference is being made to the RBI to examine the role of BhOB, HDFC Bank, Indian Overseas Bank, ING Vysya Bank and Vijaya Bank in opening the bank accounts of these benami entities and apparently funding them.
th

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According to SEBI, Karvy-DP, which was also named in the YES Bank IPO case, has not adhered to `Know-your-Client' norms, as per the reports of inspection submitted by NSDL and CDSL on the DP. Also, some of the documents collected by CDSL during the course of inspection show that Karvy-DP has obtained letters purportedly issued by the banks' concerned such as BhOB as proof of identity and proof of address of the person for the purpose of opening dematerialised accounts. "It is seen that one branch manager has on the same date signed as authorized signatory of different branches of the bank. This raises a doubt as to the authenticity of the bank documents obtained by Karvy-DP for opening dematerialised accounts," the SEBI order by its Whole-time Director Mr G. Anantharaman said. SEBI also banned four investors (in whose names the multiple accounts were opened) viz., Ms Roopalben Nareshbhai Panchal (who was also named in the YES Bank IPO scam), Sugandh Estates & Investments P Ltd, Mr Purshottam Ghanshyam Budhwani and Mr Manojdev Seksaria from doing any kind of transactions in the securities market, till further directions. Another 35 firms were also barred from participating in the IPOs in the future, till further orders, the SEBI order said. SEBI bars Karvy, 23 other entities Alleged involvement in IPO allotment scam In the dock Ban on several entities including HDFC Bank, IDBI Bank, ING Vysya Bank and Motilal Oswal Securities from opening fresh demat accounts. The regulator also pulled up NSDL and CDSL for `grave management lapses'. Description SEBI on Thursday 27th April 2006 came down heavily on stock market intermediaries by banning several entities including Karvy group of companies, Pratik DP and Indiabulls Securities, for their alleged involvement in the IPO allotment scam. SEBI has also barred several entities including HDFC Bank, IDBI Bank, ING Vysya Bank and Motilal Oswal Securities from opening fresh demat accounts. In an interim order issued today after the second round of investigations, the capital market regulator has banned 24 entities from buying and selling securities till further orders. Common address SEBI also said 15 Depository Participants at National Securities Depository Ltd (NSDL) including Kotak Securities, Citibank, ICICI Bank, Bank Paribas and IndusInd Bank had more than 500 demat account holders sharing the common address. It asked NSDL to conduct inspection on whether all the demat account holders are genuine. NSDL has also been asked to check whether the Know Your Customer norms of SEBI have been duly complied with and take action against suspect accounts on verification. Analysts felt the SEBI order was akin to capital punishment for the entities involved in the securities market scam. "In view of the detailed findings, Karvy DP and Pratik DP prima facie do not appear to be fit to deal in securities market as SEBI-registered intermediaries. Appropriate quasi-judicial proceedings are being initiated against the two DPs," the 252-page order issued late in the evening said. 19 | I p e r P g d m

SEBI said the other business groups of Karvy appear to have acted in concert in the gamut of IPO manipulations. "I further direct Karvy Stock Broking Ld, Karvy Computer Share PVT Ltd, Karvy Investor Services and Karvy Consultants not to undertake fresh business as registrar to the issue and share transfer agent," Mr G Anantharaman, Whole-Time Member, SEBI, said. NSDL, CDSL pulled up The regulator also pulled up NSDL and CDSL for `grave management lapses'. The findings revealed "contributory negligence" on the part of the depositories and their managements. "The promoters of NSDL and CDSL are directed to take all appropriate actions including revamping of management which clearly has allowed matters to come to such a sorry pass," the order said. The order, to be treated as a `show-cause notice', has given 15 days time to the parties named for filing objections. IPO scam: HDFC Bank, 2 others fined The Reserve Bank of India on Monday 27 th Feb 2006 fined HDFC Bank, IDBI and ING Vysya Bank for violation of Know Your Customer norms and other irregularities in relation to the recent IPO scam. HDFC Bank has been slapped with the highest penalty of Rs 25 lakh; ING Vysya Bank - Rs 10 lakh and IDBI Ltd Rs 5 lakh. This is the second time HDFC Bank has been fined for violation of KYC norms. In January, the bank was imposed a penalty of Rs 5 lakh. According to an RBI release, these banks have been fined, "for violation of regulations on KYC norms, for breach of prudent banking practices and for not adhering to its directives/guidelines relating to loans against shares/ IPO." Salient Features of IPO scam Modus operandi Current account opened in the name of multiple companies on the same date in the same branch of a bank Sole person authorized to operate all these accounts who was also a Director in all the companies Identity disguised by using different spelling for the same name in different companies Multiple accounts opened in different banks by the same group of joint account holders Huge funds transferred from companies accounts to the individuals account which was invested in IPOs Loans/ overdrafts got sanctioned in multiple names to bypass limit imposed by RBI Loans sanctioned to brokers violating guidelines Multiple DP accounts opened to facilitate investment in IPO Large number of cheques for the same value issued from a single account on the same day Multiple large value credits received by way of transfer from other banks Several accounts opened for funding the IPO on the request of brokers, some were in fictitious names Refunds received got credited in brokers a/cs 20 | I p e r P g d m

 Margin money provided by brokers through single cheque Nexus between merchant banker, brokers and banks suspected Operational deficiencies Factors that facilitated the scam Photographs not obtained Proper introductions not obtained Signatures not taken in the presence of bank official Failure to independently verify the identity and address of all joint account holders Directors identity/ address not verified Customer Due Diligence done by a subsidiary Objective of large number of jt. account holders opening account not ascertained Purpose of relationship not clearly established Customer profiling based on risk classification not done Poor monitoring and reporting system due to inadequate appreciation of ML issues Absence of investigation about use and sources of funds Unsatisfactory training of personnel No system of fixing accountability of bank officials responsible for opening of accounts and complying with KYC procedures Ineffective monitoring and control Measures to prevent scams An analysis of IPO scam clearly brings out the laxity on the part of banks to scrupulously implement the KYC/AML guidelines issued from time to time. It also raises serious concerns about the integrity of the systems & systemic risks. While scams may still happen despite best of preventive measures, it should not undermine the efforts being made to insulate the financial sector from money laundering. It is going to be a long fight with constant need to improve and innovate new strategies. It is important to understand that the risks banks run as a result of non-compliance with regulatory and statutory guidelines can cause severe reputational and financial damage to individual banks and the Indian banking system as a whole Need for comprehensive operational framework implementing important aspects of KYC instructions e.g. Documentation procedure for opening of all types of customer accounts; Clarity in understanding of risk classification of accounts and proper customer profiling 21 | I p e r P g d m

 Ongoing monitoring of medium and high risk accounts Enhanced due diligence in respect of accounts with beneficial ownership, non-face to face transactions, group companies, high risk businesses and wire transfers etc. Prompt reporting of cash and suspicious transactions to Principal Officer by branches An effective audit machinery Good understanding of regulatory and statutory prescriptions in letter and spirit Clear demarcation of duties and responsibilities Violations to be dealt with sternly

Intermediaries involved in the Issue Process

(a) Which are the intermediaries involved in an issue? Intermediaries which are registered with SEBI are Merchant Bankers to the issue (known as Book Running Lead Managers (BRLM) in case of book built public issues), Registrars to the issue, Bankers to the issue & Underwriters to the issue who are associated with the issue for different activities. Their addresses, telephone/fax numbers, registration number, and contact person and email addresses are disclosed in the offer documents. (i) Merchant Banker: Merchant banker does the due diligence to prepare the offer document which contains all the details about the company. They are also responsible for ensuring compliance with the legal formalities in the entire issue process and for marketing of the issue. (ii) Registrars to the Issue: They are involved in finalizing the basis of allotment in an issue and for sending refunds, allotment etc. (iii) Bankers to the Issue: The Bankers to the Issue enable the movement of funds in the issue process and therefore enable the registrars to finalize the basis of allotment by making clear funds status available to the Registrars. (iv) Underwriters: Underwriters are intermediaries who undertake to subscribe to the securities offered by the company in case these are not fully subscribed by the public, in case of an underwritten issue.

22 | I p e r P g d m

IPO GRADING 1. What is IPO Grading? IPO grading is the grade assigned by a Credit Rating Agency (CRAs) registered with SEBI, to the initial public offering (IPO) of equity shares or any other security which may be converted into or exchanged with equity shares at a later date. The grade represents a relative assessment of the fundamentals of that issue in relation to the other listed equity securities in India. Such grading is generally assigned on a fivepoint point scale with a higher score indicating stronger fundamentals and vice versa as below. IPO grade 1 Poor fundamentals IPO grade 2 BelowAverage fundamentals IPO grade 3 Average fundamentals IPO grade 4 Aboveaverage fundamentals IPO grade 5 Strong fundamentals IPO grading has been introduced as an endeavor to make additional information available for the investors in order to facilitate their assessment of equity issues offered through an IPO. 2. I am an issuer. By when am I required to obtain the grade for the IPO? IPO grading can be done either before filing the draft offer documents with SEBI or thereafter. However, the Prospectus/Red Herring Prospectus, as the case may be, must contain the grade/s given to the IPO by all CRAs approached by the company for grading such IPO. 3. Who bears the cost of the IPO grading process? The company desirous of making the IPO is required to bear the expenses incurred for grading an IPO. 4. Is grading optional? No, IPO grading is not optional. It is mandatory. Any issuer who decides to offer shares through an IPO, is required to obtain a grade for the IPO from at least one Credit Rating Agency. 5. Can the issuer reject an IPO grade? IPO grade/s cannot be rejected. Irrespective of whether the issuer finds the grade given by the rating agency acceptable or not, the grade has to be disclosed as required under the DIP Guidelines. However the issuer has the option of opting for another grading by a different agency. In such an event all grades obtained for the IPO will have to be disclosed in the offer documents, advertisements etc. 6. Will IPO grading delay the process of issue? IPO grading is intended to run parallel to the filing of offer document with SEBI and the consequent issuance of observations. Since issuance of observation by SEBI and the grading process, function independently, IPO grading is not expected to delay the issue process. 7. What are the factors that are evaluated to assess the fundamentals of the issue while arriving at the IPO grade? The IPO grading process is expected to take into account the prospects of the industry in which the company operates, the competitive strengths of the company that would allow it to address 23 | I p e r P g d m

the risks inherent in the business and capitalize on the opportunities available, as well as the companys financial position. While the actual factors considered for grading may not be identical or limited to the following, the areas listed below are generally looked into by the rating agencies, while arriving at an IPO grade a. Business Prospects and Competitive Position i. Industry Prospects ii. Company Prospects b. Financial Position c. Management Quality d. Corporate Governance Practices e. Compliance and Litigation History f. New ProjectsRisks and Prospects It may be noted that the above is only indicative of some of the factors considered in the IPO grading process and may vary on a case to case basis. 8. Does IPO grading consider the price at which the shares are offered in the issue? No. IPO grading is done without taking into account the price at which the security is offered in the IPO. Since IPO grading does not consider the issue price, the investor needs to make an independent judgment regarding the price at which to bid for/subscribe to the shares offered through the IPO. 9. Where can I find the grades obtained for the IPO and details of the grading process? All grades obtained for the IPO along with a description of the grades can be found in the Prospectus. Abridged Prospectus, issue advertisement or any other place where the issuer company is making advertisement for its issue. Further the Grading letter of the Credit Rating Agency which contains the detailed rationale for assigning the particular grade will be included among the Material Documents available for Inspection at the Registered office of the Company. 10. Does an IPO grade, which indicates above average or strong fundamentals mean I could subscribe safely to the issue? An IPO grade is NOT a suggestion or recommendation as to whether one should subscribe to the IPO or not. IPO grade needs to be read together with the disclosures made in the prospectus including the risk factors as well as the price at which the shares are offered in the issue. 11. How do I interpret the IPO Grades? The grades are allocated on a 5point scale, the lowest being Grade 1 and highest Grade 5. 12. How does IPO Grading help in deciding about investing in an IPO? IPO Grading is intended to provide the investor with an informed and objective opinion expressed by a professional rating agency after analyzing factors like business and financial prospects, management quality and corporate governance practices etc. However, irrespective of the grade obtained by the issuer, the investor needs to make his/her own 24 | I p e r P g d m

independent decision regarding investing in any issue after studying the contents of the prospectus including risk factors carefully. 13. What is the role of SEBI in IPO grading exercise? SEBI does not play any role in the assessment made by the grading agency. The grading is intended to be an independent and unbiased opinion of that agency. 14. Will IPO Grading given by CRAs be a parameter for SEBI to issue its observations? The grading is intended to be an independent and unbiased opinion of a rating agency. SEBI does not pass any judgment on the quality of the issuer company. SEBIs observations on the IPO document are entirely independent of the IPO grading process or the grades received by the company. 15. Which credit rating agencies are registered with SEBI? As on date, the following five credit rating agencies are registered with SEBI. The same can be accessed at http://www.sebi.gov.in/investor/addcra.html SEBI NORMS

SEBI has come up with Investor Protection and Disclosure Norms for raising funds through IPO. These rules are amended from time to time to meet the requirement of changing market conditions. Disclosure Norms : Risk factor The company / merchant banker must specify the major risk factor in the front page of the document Issuers Responsibility It is the absolute responsibility of the issuer company about the true and correct information in the prospectus. Merchant banker is also responsible for giving true and correct information regarding all the documents such as material contracts, capital structure , appointment of intermediaries and other matters. Listing Arrangement It must clearly state that once the issue is subscribed where the shares will be listed for trading. Disclosure Clause It is compulsory to mention this clause to distinctly inform the investors that tough the prospectus is submitted and approved by SEBI it is not responsible for the financial soundness of the IPO. Merchant Bankers Responsibility Disclosure Clause the Lead Manager has to certify that disclosures made in the prospectus are generally adequate and are in conformity with the SEBI guidelines. 25 | I p e r P g d m

 Capital Structure The company must give complete information about the Authorised capital , Subscribed Capital with top ten shareholders holding pattern, Promoters interest and their subscription pattern etc. Also about the reservation in the present issue for promoters, FIIs, Collaborators, NRIs etc. Then the net public offer must be stated very clearly. 24 Auditors Report The Auditors have to clearly mention about the past performances, cost of project, means of finance, receipt of funds and its usage prior to the IPO. Auditor must also give the tax-benefit note for the company and investors.

Investor Protection Norms Pricing of Issue The pricing of all the allocations for the present issue must follow the bid system. The reservation must be disclosed for different categories of investors and their pricing must be specifies clearly. Minimum Subscription If the company does not receive minimum subscription of 90% of subscription in each category of offer and if the issue is not underwritten on the underwriters are unable to meet their obligation, then fund so collected must be refunded back to all applicants. Basis of Allotment In case of full subscription of the issue, the allotment must be made with the full consultation of the concerned stock exchange and the company must be impartial in allotting the shares. Allotment/Refund Once the allotment is finalized, the refund of the excess money must be made within the specifies time limits otherwise the company must pay interest on delayed refund orders. Dematerialisation of Shares As per the provisions of the Depositories Act, 1996, and SEBI Rules, now all IPO will be in Demat form only. Listing of Shares It is mandatory on the part of the promoters that once the IPO is fully subscribed, and then the underlying shares must be listed on the stock exchange. This provides market and exit routes to the investors.

MARKETING OF IPO The role of marketing, and particularly promotion, in the pricing and trading of securities is fairly limited.
PRELIMINARY REQUIREMENTS

The company has to complete all legal requirements , appoint all intermediaries and once they get SEBI card (approval) . the process of marketing of IPO can commence.
TIMING OF IPO

This is most important factor for the success of IPO. If , secondary market is depressed, if there is political unrest, if serious international problems are prevailing then it is considered to be negative factors for timing of IPOs. If these factors are favorable then the Company must find 26 | I p e r P g d m

out about the timing of other prestigious IPOs. Normally in good times many companies are crowding at the same time. A question of Timing Timing the issue is crucial as it determines the success or failure of an issue to a great extent. During 1995-96, primary market boom, there was a period during which there were two to three issues in a day. This is a dangerous situation. The ideal time for marketing an issue is a boom in the secondary market, peaceful sociopolitical-economic environment and at least two days gap between two issues. GENERAL PROCEDURE FOR MARKETING OF IPO PRESS CONFERENCE Promoters and Lead Managers call for press conference in each major investment center. Reporters are briefed about the issue . They carry it as news-item in their papers. INVESTORS CONFERENCE The prospective investors are called by invitation. The promoters and lead managers give presentations. They reply to the questions of the investors to boost their confidence. ROAD-SHOW This is like the investors conference but normally is done abroad for marketing ADR/GDR Issues. It is an expensive process and requires a lot of legal compliances. The company has to observe the rules of the concerned country. However, road shows are becoming more and more popular in India. NEWSPAPER ADVERTISEMENT The company releases statutory advertisements in leading newspapers. The company has to publish abridges prospectus in leading newspapers. It is the responsibility of the promoters to ensure that the issuing company and their group companies should not release any commercial advertisement, which may influence the investors decision for investment.

LARGEST IPO IN INDIA AND WORLD India's initial public offer (IPO) market has emerged as the eighth largest in the world. The year 2007 saw 105 public offerings raising Rs 39,387.72 crore (Rs 393.877 billion). Accodring to some estimates, the total value of public issues in 2008 could be as high as Rs 75,000 crore (Rs 750 billion). Top ten IPOs in India 1) Coal India ltd. IPO SIZE 15000 Crore Year of issue - 2010 The Government has announced that it will be fixing the price of Coal India Ltds (CIL) initial public offering (IPO) at the upper end of the price band at Rs. 245 per share.This decision was taken yesterday in view of the high demand the IPO witnessed.The IPO of Coal India was oversubscribed by more than 15.28 times. The Coal India. IPO issue recieved bids for almost US$ 53 billion worth of equity shares as against issue size of US$ 3.5 billion.This is one of the biggest IPOs to ever hit the Indian Capital Markets . The portion for Qualified institutional 27 | I p e r P g d m

buyers (QIBs) for whom there was a reservation of 50 per cent of the shares has been oversubscribed by as much as 24.7 times.The retail segment saw more than 16.45 lakh applications received, which is a new record and the highest that any PSUs IPO has so far attracted.The government has has stated that the amount of Rs. 15,200 crore that it will mop from this disinvestment will be utilised for infrastructure and development programmes in the rural areas of India. Coal India Limited is the holder of the worlds largest coal reserves and also the largest producer.It is ranked as one of the lowest cost coal mining firms in the world. The issue price of Coal India is far lower than what its global peers are valued at and this has prompted the huge retail and FII interest in the company. Experts and analysts expect Coal India to list above Rs 300 on its day of listing. In the grey market the shares are already trading and deals are being made at a premium of Rs 30 Rs 40 per share. Some experts believe Coal Indias fair value is at least Rs 316 per share as coal prices are unlikely to come down in India.This assessment of fair value of Rs 316 is based on the Discounted Cash Flow valuation. At an issue price of Rs 245 per share , Coal India will enjoy a valuation of more than US$ 35 billion, which will make it the seventh highest among Indias listed firms. 2) Relaince Power ltd. IPO size: Rs 11,700 crore Year of issue: 2008 Anil Dhirubhai Ambani Group-promoted Reliance Power Ltd's Rs 11,700 crore (Rs 117 billion) initial public offering has set many a record: it started off with a bang on January 15 with the share sale -- India's biggest-ever -- getting fully subscribed within a minute of opening. The Reliance Power IPO of 26 crore (260 million) equity shares is worth $3 billion. Most of the bids came at Rs 450, the upper end of the price band, making it the country's largest IPO with estimated proceeds of Rs 11,700 crore. The Qualified Institutional Bidder (QIB) portion was subscribed 17.5 times and high net worth investor (HNIs) segment was subscribed 6.7 times. The company was offering the equity shares at a price band of Rs 405-450 per share. The bidding for allotment of shares in the IPO was to close on January 18. 3) Oil and natural gas Corporation (ONGC) IPO size: Rs 9,500 crore Year of issue: 2004 ONGC's public offering opened on March 5, 2004. The IPO was oversubscribed within half an hour of its opening, with estimated proceeds of Rs 9,500 crore (Rs 95 billion). Till the Reliance Power IPO was launched, the ONGC offering was the largest IPO by any company ever in the Indian capital markets with 142.59 million shares being sold through the book-building route in a price band of Rs 680-750. 4) DLF LTD. 28 | I p e r P g d m

IPO size: Rs 9,188 crore Year of issue: 2007 DLF Universal's IPO hit the markets on June 11, 2007 and closed on June 14. Although scheduled for June 2006, the IPO ran into rough weather with minority investors create a furore with 'chating' allegations against the company. DLF managed to settle this issue and filed a new prospectus with the Securities and Exchange Board of India. The Sebi approval for the same was received soon after. DLF Universal priced its IPO between Rs 500 and Rs 550. It was earlier expected to price the issue around Rs 600. The issue raised about Rs 9,188 crore (Rs 91.88 billion). The IPO was oversubscribed a modest 3.45 times. 5) Cairn India Ltd. IPO size: Rs 5,788 crore Year of issue: 2006 Cairn, the oil and gas exploration company, entered the Indian capital market with a public issue of 328,799,675 equity shares of Rs 10 each at a premium decided through a 100 per cent bookbuilding process. The share was issued in a price band of Rs 160-Rs 190. The construction and development work for the oil major's Rajasthan oil field was partly funded by the IPO. The company raised about Rs 5,788 crore (57.88 billion) through the IPO. 6) Tata Consultancy Services ltd. (TCS) IPO size: Rs 5,420 crore Year of issue: 2004 India's largest IT comapny, Tata Consultancy Services Ltd, offered 5.54 crore (55.4 million) equity shares of Re 1 each, including a fresh issue of 2.27 crore (22.7 million) shares, in its initial public offering through a book-building route. The Rs 5,000-crore (Rs 50 billion) IPO opening coincided with the birth centenary of JRD Tata, who was at the helm of the Tata group for over four decades before Ratan Tata took charge. The issue also comprised an offer for sale of 3.26 crore (32.6 million) shares by Tata Sons Ltd and certain other shareholders of TCS, and a further greenshoe option by Tata Sons for 831,000 shares each. The company raised about Rs 5,420 crore (Rs 54.20 billion) through the IPO. 7) NTPC Ltd. IPO size: Rs 5,368 crore Year of issue: 2004 The National Thermal Power Corporation offered a public issue of equity shares of Rs 10 each by offering 865,830,000 equity shares in a price band of Rs 52 to Rs 62. The issue was made through 100 per cent book building process. The offer was made for 10.5 per cent of NTPC's enlarged capital. The issue raised about Rs 5,368 crore (Rs 53.68 billion) at the top end of the price band. Post offer, the government's stake in NTPC reduced to 89.5 per cent. The issue opened on October 7, 2004 and closed on October 14. 8) Reliance Petroleum ltd. 29 | I p e r P g d m

IPO size: Rs 2,700 crore Year of issue: 2006 Reliance Petroleum opened for bidding on April 13, 2006. The price band was fixed at Rs 57 to Rs 62 and the bidding closed on April 20, 2006. This was the second time in the market for the petrochem major, after 1993 when it first came out with an IPO. The company offered 45 crore (450 million) equity shares for subscription. Retail investors could bid for up to 1,600 shares at the upper end of the price band and they needed to pay only Rs 16 per share at the time of bidding. The balance amount was to be payable on allotment. The company raised Rs 2,700 crore (Rs 27 billion) through the IPO. 9) Idea Cellular ltd. IPO size: Rs 2,443 crore Year of issue: 2007 The company fixed the price band between Rs 65 and Rs 75 per Rs 10-share. The premium was decided through a 100 per cent book-building process. The issue opened for subscription on February 12, 2007 and closed on February 15, 2007. The company raised Rs 2,443 crore (Rs 24.43 billion) through the IPO. 10) Jet Airways ltd. IPO size: Rs 1,899 crore Year of issue: 2005 The initial public offer by Jet Airways met with overwhelming response on the very first day -February 18, 2005. The issue was fully subscribed within five minutes of opening and was oversubscribed 4.4 times. The issue received a total 7.5 crore (75 million) bids for the 1.72 crore (17.2 milllion) shares on offer at a price band of Rs 950-1,125. The The Qualified Institutional Bidder (QIB) category was oversubscribed almost eight times. Of the total shares, 60 per cent had been reserved for this category of buyers, while 90 per cent of the bids came in at Rs 1,125 per share, the top end of the price band. The company raised Rs 1,899 crore (Rs 18.99 billion) through the IPO. WORLDS LARGEST IPO,s 1) Agricultural bank of China ltd. IPO size - $22.1 billion Year of issue 2010 ABC was the last of the "big four" banks in China to go public. In 2010, A shares and H shares of Agricultural Bank of China were listed on the Shanghai Stock Exchange and the Hong Kong Stock Exchange respectively. Each share was set to cost between 2.7RMB and 3.3RMB per share. H shares were set to cost between HK$2.88 and HK$3.48 per share.The final share price for the IPO launch was issued on July 7, 2010. On completion in August 2010 it became the world's biggest initial public offering (IPO) surpassing the one set by Industrial and Commercial Bank of China in 2006 of US$21.9 billion. 2) Industrial and commercial bank of China IPO Size $21.9 billion 30 | I p e r P g d m

Year of issue 2006 ICBC was simultaneously listed on both the Hong Kong Stock Exchange and Shanghai Stock Exchange on 27 October 2006. It was the world's largest IPO at that time valued at US$21.9 billion, surpassing the previous record US$18.4 billion IPO by Japan's NTT DoCoMo in 1998. In 2010, AgBank broke ICBC's IPO record when it raised $22.1 billion. China's largest commercial bank was also the first company to debut simultaneously on both the Hong Kong and Shanghai stock exchanges. 3) American International Assurance IPO Size $ 20.5 billion Year of Issue- 2010 It is an insurance company based in Hong Kong. It has offices in Asia-Pacific region including Australia, China , India, Macau , Vietnam, Malaysia, South Korea , Singapore. AIA was planned to be listed in Hong Kong Stock Exchange in April 2010. However, in March 2010, Prudential plc, a United Kingdom-based financial services company, announced that it will buy AIA for $35.5 billion. The purchased later fell through, and AIA held an IPO later in October 2010 raising $20.51 billion, the third largest ever IPO. 4) NTT DoCoMo IPO Size- $18.4 billion Year of issue- 1998 It is predominant mobile phone operator in Japan . The issue was oversubscribed by 3 times. It is largest IPO ever in Japan. It is alo listed at LSE , NYSE, Stock Exchanges. They are having employees more than 21500 in year 2005. Total assets is more than $ 65 billion as of year 2009 .

Top ipo performers ( 21 june 2010)

Company CMP
256.7

Issue Price
70

List Price
80

List Date
11-Mar-11

Chg (%)
220.9

Fineotex Chem

C Mahendra Exp Gallantt Ispat Aanjaneya Life. Midvalley Enter Gravita India

243.1

110

111

20-Jan-11

119

87.9

50

48.9

11-Oct-10

79.8

377

234

229.45

27-May-11

64.3

118.8

70

73

27-Jan-11

62.7

346.6

125

218.75

16-Nov-10

58.4

31 | I p e r P g d m

Lovable Lingerie

393.55

205

261.5

24-Mar-11

50.5

Sudar Garments Coal India Prakash Steelage

105.55

77

74

11-Mar-11

42.6

390.25

245

287.75

4-Nov-10

35.6

145.2

110

118.55

25-Aug-10

22.5

Guj Pipavav Port

63.8

46

56.25

9-Sep-10

13.4

Power Grid Corpn

101.15

90

95

25-Nov-10

6.5

Power Fin.Corpn.

171

203

27-May-11

Top bottom ipo performer (21june 2011)

Company CMP
18.3

Issue Price
130

List Price
130

List Date
10-Mar-11

Chg (%)
[85.9]

AcroPetal Tech.

Sea TV Network Tirupati Inks Bajaj Corp Gyscoal Alloys Aster Silicates Shilpi Cable

17.7

100

120

14-Oct-10

[85.3]

8.1

43

53.95

1-Oct-10

[85.0]

113.65

660

730

18-Aug-10

[84.4]

12.56

71

76.6

27-Oct-10

[83.6]

22.9

118

127.7

28-Jul-10

[82.1]

15.3

69

78.35

8-Apr-11

[80.5]

Midfield Indus.

36.7

133

159.4

4-Aug-10

[77.0]

32 | I p e r P g d m

Cantabil Retail Servalaksh.Paper

32.15

135

133.8

12-Oct-10

[76.0]

8.24

29

30

12-May-11

[72.5]

Microsec Fin

38.4

118

135.1

5-Oct-10

[71.6]

Commercial Eng.

36

127

122.8

18-Oct-10

[70.7]

VMS Indus.

15.05

40

43.95

14-Jun-11

[65.8]

SKS Microfinance Ravikumar Distll Orient Green Indosolar Prestige Estates Parabolic Drugs Technofab Engg.

378.65

985

1,036.00

16-Aug-10

[63.5]

24.35

64

64

27-Dec-10

[62.0]

17.95

47

45.7

8-Oct-10

[60.7]

14.55

29

29.75

29-Sep-10

[51.1]

123.15

183

251

27-Oct-10

[50.9]

38.65

75

76

1-Jul-10

[49.1]

142.8

240

265

16-Jul-10

[46.1]

Omkar Spl.Chem. Ramky Infra PTC India Fin MOIL Tecpro Systems Sanghvi Forg.

54.5

98

95

10-Feb-11

[42.6]

262.35

450

450

8-Oct-10

[41.7]

16.65 330.85

28 375

28 551

30-Mar-11 15-Dec-10

[40.5] [40.0]

242.2

355

399.4

12-Oct-10

[39.4]

52.2

85

85

23-May-11

[38.6]

A2Z Maintenance

243.95

400

390

23-Dec-10

[37.4]

33 | I p e r P g d m

BS Transcomm Para. Print. Electrosteel St.

118.85

248

190

27-Oct-10

[37.4]

22.25

35

35

9-May-11

[36.4]

8.37

11

12.35

8-Oct-10

[32.2]

Pun. & Sind Bank Claris Lifescien Career Point SCI Ashoka Buildcon

100.95

120

146.1

30-Dec-10

[30.9]

158.95

228

224.4

20-Dec-10

[29.2]

329.05 99.45

310 140

461 136.9

6-Oct-10 15-Dec-10

[28.6] [27.4]

250

324

333.55

14-Oct-10

[25.0]

Eros Intl.Media Va Tech Wabag Hindustan Media Innoventive Ind. Oberoi Realty Muthoot Finance Engineers India Tata Steel Future Ventures Shekhawati Poly. Bedmutha Indus. RPP Infra Proj.

161.85

175

213.35

6-Oct-10

[24.1]

1,268.10

1,310.00

1,655.00

13-Oct-10

[23.4]

133.5

166

170

21-Jul-10

[21.5]

88.15

117

110

13-May-11

[19.9]

230.9

260

280

20-Oct-10

[17.5]

153.65

160

180

6-May-11

[14.6]

272.1

290

315

12-Aug-10

[13.6]

559.15

610

630.15

2-Feb-11

[11.3]

8.64

10

9.5

10-May-11

[9.1]

30.3

30

32.5

12-Jan-11

[6.8]

111.5

102

114.4

14-Oct-10

[2.5]

73.1

75

75

6-Dec-10

[2.5]

34 | I p e r P g d m

35 | I p e r P g d m

Chapter 4

Data analysis

These are the list of some slected ipo on which we doing a research these all company selected on raised amount of ipo issue. These all company issue size is more then 800 crore rs.

Isuuer company
1 2 3 4 5 6 7 8 9 1 0 11 MOIL Limited IPO Coal India Limited IPO Prestige Estates Projects Ltd IPO Oberoi Realty Limited IPO SKS Microfinance Ltd IPO SJVN Ltd (Satluj Jal Vidyut Nigam Ltd) IPO Jaypee Infratech Limited (JIL) IPO D B Realty Limited IPO JSW Energy Limited IPO Indiabulls Power Limited IPO Oil India Limited IPO
36 | I p e r P g d m

1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 0 2 1 2 2 2 3 2 4 2 5 2 6 2 7

NHPC Limited IPO Rural Electrification Corporation Limited (REC) IPO IRB Infrastructure Developers Limited IPO Reliance Power Limited (REPL) IPO Mundra Port and Special Economic Zone Ltd IPO Power Grid Corporation of India Limited IPO Puravankara Projects Limited IPO Central Bank of India IPO Omaxe Limited IPO Housing Development and Infrastructure Ltd IPO Spice Communications Limited IPO DLF Limited IPO Idea Cellular Limited IPO Power Finance Corporation Limited (PFC) IPO Cairn India Ltd IPO Parsvnath Developers Limited IPO

PARSVNATH DEVELOPERS LIMITED Parsvanath Developers 37 | I p e r P g d m

Parsvanath Developers Limited (Parsvnath) is a real estate development company. The Company has operations in 30 cities and nine states in India. Parsvnath has a diversified portfolio of real estate development projects. As of March 16, 2006, the Company was engaged in the development of 12 integrated townships, 19 residential projects, 20 commercial complexes, including shopping malls and multiplexes, and a hotel. In addition, it has completed 14 projects, including six housing projects and eight commercial complexes. As of March 1, 2006, the Company directly owned or held development rights for 63.84 million square feet of saleable area. As of March 16, 2006, one of Parsvnath's important projects was Parsvnath Exotica at Gurgaon, Haryana. It is a residential complex, which has a total saleable area of approximately 2,178,530 square feet. Parsvnath have successfully raised the standards for the industry as is evident from their pioneering achievement of being the first Real Estate Company to have been awarded with NAREDCO - ICRA DR 2 - Rating, ISO 9001, 14001 & OHSAS 18001 Certification. QUALITIATIVE FACTORS Ability to identify emerging markets and assess the potential of a location One of the key factors in real estate development sector is the ability to assess the potential of a location after evaluation of its demographic trends. Our ability to evaluate such trends has enabled us to identify locations which are relatively untapped and gain the first mover advantage in such locations. Our experience in the real estate sector enables us to develop a vision which drives our acquisition strategy. Marketing network Our marketing is structured in consideration of the nature of the project and the customer base at which the project is targeted. Our sustained and structured marketing over the cycle of the project results in wide exposure of our products to the target audience. Brands such as Big Bazaar and Spencers have outlets in shopping malls developed by us. We believe that the presence of such well known brands large retail outlets ensures confidence among potential customers. Diversified business model We have a number of diverse projects in 37 cities and 13 states of India and are not restricted to any one segment or geographical region of the market. Our commercial buildings, malls and multiplexes are customized to cater to the demographics of the specific locality. Further, our residential complexes are directed at both the high income and the economy segment. Timely and cost efficient completion of projects We have evolved a project monitoring system which is leveraged by us to ensure disciplined completion of our projects. Our track record for timely completion has given us confidence which is reflected in our agreements with our customers which includes a clause stating that we will deliver possession to them at the stipulated time or else pay a penalty linked to the period of the delay based on the committed period of completion. Transparent and efficient system of procuring materials

38 | I p e r P g d m

We have established a transparent and efficient system for procuring best quality of materials at reasonable prices. We maintain a "just-in-time" inventory to reduce storage costs and thereby ensure the flexibility to take advantage of changes in market conditions for materials required by us. Our financial position. We believe our financial position will enable us to finance our plans. As of March 31, 2006, we had a debt to equity ratio of 1.17. Our ability to give timely delivery of projects to our customers also translates into timely receipts of receivables by us reducing our dependence on external sources for funding of our projects. Organized and professionally managed company. We are a professionally managed company with qualified and experienced professionals in the senior management. In order to expedite the decision making process and to facilitate speedy implementation of the real estate projects, we have adopted a model in which critical functions like project conceptualization, planning, procurement and project monitoring are managed from our corporate office and key support functions such as obtaining regulatory approvals, premarketing and marketing are the responsibility of our representatives at the local level. This model enables us to maintain a balance between the customization of our projects to cater to the demographics of a location while maintaining our standards of quality and efficiency. QUALITATIVE FACTORS

CALCULATE P/E OF PARSVNATH DEVELOPERS Eps= 7.21 Share price= 300 P/e = 41.60

39 | I p e r P g d m

Peer group P/E (i) Highest 133.4 (ii) Lowest 2.7 (iii) Peer group Average 22.4

If above graph the p/e of parsvnath is more then industry p/e and other two company but less then mahindhra, so the stock is expensive in comparision of majority stocks

The eps of parsvnath is more then any company it indicate the company earn more then any company through shares The book value of parsvnath is less in comparision of industry peers, and its share price is 310 that means the share is overvalued If we talking about the ronw of parsvnath Return on net worth is more in comparison of industry peers The rating of parsvnath is above average which is given by the credit agencies. So its a good stock for investment Listing day results listing Open Close Gain/lose 300 270 263 (12.3) %

INTERPRETATION- Parsvnath have a strong fundamentals and good financial track track and p/e ,eps, book value all are good and indicates that investors should invest in this project but at the day of listing the not gave good returns. Parsvnath listed at 300 but open at 270 and close at 263. CAIRN INDIA LLIMITED CAIRN INDIA LIMITED Cairn Energy PLC is public oil and gas exploration and Production Company based in Edinburgh, Scotland. Cairn India Limited is a newly incorporated Indian company and has been promoted by Cairn Energy PLC, a crude oil and natural gas exploration and production company trading on the main market of the London Stock Exchange. At the completion of the Reorganisation, the Company will acquire the Subsidiaries which hold all of the ownership and operated interests in 40 | I p e r P g d m

Cairn Energy PLCs Indian crude oil and natural gas development and production assets and the majority of its Indian crude oil and natural gas exploration assets. Upon the Companys acquisition of the Subsidiaries, Cairn aim to be a leading participant in the Indian crude oil and natural gas industry. We estimate the total gross proved plus probable (2P) reserves attributable to the fields in production or under development in which Cairn India has interests to be 754 mmboe and its net working interest in these 2P reserves to be 472 mmboe. Most of the 2P reserves are estimated to be contained in the Rajasthan Block which is currently subject to significant appraisal and development activity. In addition to proved plus probable reserves, Cairn estimate the gross contingent resources attributable to these fields to be 414 mmboe. Outside of the Rajasthan Block Cairn estimate the total gross 2P reserves attributable to the fields in production or under development in which Cairn India has interests to be 122 mmboe and on a net working interest basis Cairn estimate these same reserves to be 30 mmboe. In addition, a further 157 mmboe of gross contingent resource has been identified in fields outside of Rajasthan, with most of this gross contingent resource (143 mmboe) estimated to be contained in the deep water Block KG-DWN-98/2. Qualitative Factors Internal Factors At the completion of the Reorganisation, the Company will acquire the Subsidiaries which hold all of the ownership and operated interests in Cairn Energy PLCs Indian crude oil and natural gas development and production assets and the majority of its Indian crude oil and natural gas exploration assets. On the Companys acquisition of the Subsidiaries, we aim to be a leading participant in the Indian crude oil and natural gas industry. We estimate the total gross 2P reserves attributable to the fields in production or under development in which Cairn India has interests to be 754 mmboe and its net working interest in these 2P reserves to be 472 mmboe. We have interests ranging from 40% in the Lakshmi and Gauri oil and gas fields to 22.5% in the Raava oil and gas field. We have a 70% interest in the development area in the Rajasthan Block. As at 30 June, 2006 we estimated our net working interest, proved and probable reserves, to be 472 mmboe. We have a seven year tax holiday from corporate tax in respect of each eligible unit in the Rajasthan Block, commencing from 1 April in the tax year during which commercial production from that unit begins. We have a significant portfolio of exploration and appraisal acreage in eastern, western and northern India. We were awarded five new exploration blocks in India as part of NELP V in 2005. We are also actively participating in NELP VI. We have a long and proven exploration expertise in India, having made 29 hydrocarbon discoveries since 1994. In 2004, Cairn India made the largest onshore crude oil discovery in India since 1985 when it discovered the Mangala field in Rajasthan. Since then, Cairn India has made 17 additional discoveries in the Rajasthan Block and continues to undertake exploration work which may lead to future discoveries.

41 | I p e r P g d m

External Factors India is the second most populous country in the world with a population of approximately billion. Rapid economic growth in India has led to a significant increase in demand for crude oil and natural gas. We are likely to benefit from the high demand for oil in India because this demand cannot be met by current domestic production capacities as India fulfils only 20% of its oil and natural gas requirements from oil and natural gas production within India. We expect a gross plateau production rate from the Rajasthan Block of approximately 150,000 bopd. India is a net importer of crude oil and natural gas. In 2005, India consumed 115.7 million tonnes of crude oil, yet it produced only 36.2 million tonnes. Similarly, in 2005, India consumed 36.6 billion cubic metres of natural gas but produced only 30.4 billion cubic metres (Source: BP Statistical Review of World Energy, June 2006). Adjusted Earnings per Share The Company was incorporated on 21 August, 2006 and does not have a financial track record which reflects the operations of Cairn India. The following table lays down a pro forma computation of earnings per share for the Company based on the earnings of the three material subsidiaries of Cairn India Holdings Limited which are CEA, CEHL, CEIH and the post-Issue equity share capital (number of shares) of the Company.

Industry P/E* a) Highest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40.1 b) Lowest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.4 c) Industry Average . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25.14 Listing day Listing Open close gain/loss

190 140 137.5 (27.3)% 42 | I p e r P g d m

POWER FINANCE CORPORATION LIMITED Power Finance Corporation Limited (PFC) a leading power sector public financial institution and a non banking financial company providing fund and non-fund based support for the development of the Indian power sector. They perform a major role in channelising investment into the power sector and function as a vehicle to develop power sector in India. PFC clients include state power utilities, central power sector utilities, power departments, private power sector utilities (including independent power producers), joint sector power utilities, power equipment manufacturers and power utilities run by local municipalities. These clients are involved in all aspects of the generation, transmission and distribution and related activities in the power sector in India. Few financial facts: 1. As of March 31, 2006, PFC have made cumulative sanctions of Rs. 940,520.90 million and cumulative disbursements of Rs. 617,990.10 million to power sector projects.In fiscal 2005. 2. PFC made a profit after tax of Rs. 9,705.31 million and in fiscal 2006, their net profit was Rs. 9,754.33 million. 3. In fiscal 2005, PFC had total assets of Rs. 311,455.45 million and net worth of Rs. 59,974.96 million. In fiscal 2006, we had total assets of Rs. 374,896.05 million and our net worth was Rs.65,055.45 million. QUALITATIVE FACTORS Factors external to us Huge requirement of funds for investment in Power Sector: Historically, the power industry in India has been characterized by energy shortages. The GoIs mission of Power for all by 2012, estimated that Indias installed generation capacity should be 200,000 MW by the end of its Eleventh Five Year Plan in 2012 compared to 124,287 MW as on March 31, 2006. This will require huge requirement of funds for investment in Power Sector. Factors internal to us Leading provider of power finance in the country: We are a leading power sector public financial institution and a non banking financial company providing fund and non-fund based support for the development of the Indian power sector. In the government's ninth plan period (fiscal 1998 to fiscal 2002), our disbursements, excluding short term loans, were Rs. 135,844.51 million against a total expenditure in the power sector of Rs. 1,195,760.00 million resulting in a share of 11.36% for this period. In the government's tenth plan period (fiscal 2003 to fiscal 2007) our disbursements, excluding short term loans, for the first four year period were Rs. 281,649.45 million against estimated expenditure of Rs. 1,228,390.00 million in the power sector (as per Planning Commissions tenth plan mid-term appraisal) for the same period resulting in a share of 22.93% for this period. As of March 31, 2006, we have made cumulative sanctions of Rs. 940,520.90 million and cumulative disbursements of Rs. 617,990.10 million to power sector projects. Exclusive focus on financing the power sector: We were founded with the sole objective of, and our focus continues to be on, extending finance to and promoting Indian power projects and related activities. We have developed extensive power sector knowledge and have the capacity to 43 | I p e r P g d m

appraise and extend financial assistance for a wide variety of projects. We also have the skills and the expertise to provide solutions to various problems faced by power sector utilities and provide assistance to our clients in their reform and restructuring programs. Established relationship with the Government: We play a pivotal role in the GOIs plans for the growth and development of the Indian power sector and implementation of its policies and programs including the implementation of the Electricity Act. Well developed client base: We have a well developed client base which includes state power utilities, central power sector utilities, power departments, private power sector utilities (including independent power producers), joint sector power utilities, power equipment manufacturers and municipal run power utilities. These clients are involved in all aspects of the generation, transmission and distribution and related activities in the power sector in India. Healthy asset quality: Despite significant exposure to State Power Utilities (which have been making cash losses) our asset quality has remained healthy over a long period of time primarily on account of our recovery mechanism which in addition to primary security like charge on assets and irrevocable state government guarantees and payment of obligations through default escrow accounts. Competitive Cost of Funds: Given our relationship with the GoI we have been able to source foreign currency loans from agencies such as the World Bank, ADB and KfW (Kreditanstalt fuer Wiederaufbau). These sources enable us to raise long term funds at competitive costs, which supplement the funds available from commercial sources and broaden the maturity profile of our debt. Nodal agency for development of UMPPs: We have been designated as the nodal agency by the GoI for the development of five UMPPs, each with a capacity of 4,000 MW and above. Competent and committed workforce: We have a highly competent and committed work force. The members of our management team and professional staff have a variety of professional qualifications and come from a diverse set of backgrounds including power generating companies, engineering companies, leading commercial banks and lending institutions, finance companies and regulatory bodies. Our managers and professional staff have domestic and international expertise and domain knowledge in areas such as project finance, corporate lending, structured finance and law. Recognition / Awards conferred: Within 10 years of commencement of operations in 1988, we have been conferred Mini Ratna status by the GoI India in 1998-99 which provides us considerable operational freedom and autonomy in decision making. Further, in recognition of our performance and our consistent achievement of targets negotiated under the Memorandum of Understanding we enter into with the Government on an annual basis, the Government has rated our performance as Excellent, continuously from fiscal 1994 to fiscal 2004. For fiscal 2005, we had Very Good rating.

44 | I p e r P g d m

Price/Earning (P/E) ratio in relation to issue Price of Rs [] a. For the year ended March 31, 2006 EPS is Rs 8.25. b. P/E based on year ended March 31, 2006 is [] c. Industry P/E -There are no listed companies of comparable size in the Indian power finance sector. Hence, there is no industry P/E. Comparison with Industry Peers: There are no listed companies of comparable size in the Indian power finance sector. Hence, this comparison is not possible EPS Power finance corporation 8.25 RETURN ON NETWORTH% 13.06

Parameters P/E RONW EPS

INDUSTRY BENCHMARKS No industry for comparision, therefore no industry p/e

10.30 13.06 8.25

P/E RATIO Share price=85 Eps=8.25 p/e=10.30 Credit rating agency Crisil, care, icra, fitch etc rating

Listing day Listing Open close Gain/loss

85 104 111.55 31.2% 45 | I p e r P g d m

IDEA CELLULAR LIMITED IDEA CELLULAR Idea Cellular Limited, an Aditya Birla Group company is a leading mobile operator in India and currently operates in 11 Circles. Following the growth opportunities in the Indian telecommunications market, Idea Cellular is among fastest growing mobile operator. Idea Cellular provide mobile services in 11 Circles in India, namely the metropolitan Circle of Delhi, the category A Circles of Andhra Pradesh, Gujarat and Maharashtra, the category B Circles of Haryana, Kerala, Madhya Pradesh, Rajasthan, Uttar Pradesh (East) and Uttar Pradesh (West) and the category C Circle of Himachal Pradesh. More facts: 1. For the financial years 2005 and 2006, Idea's gross revenues were approximately Rs. 22.68 billion and Rs. 29.73 billion, respectively. 2. Idea Recently got license for the Mumbai and Bihar Circles. Quantitative factors Some of our key competitive strengths: Attractive existing footprint; Operations in 11 Circles in India; Original licensee in seven of the Established Circles, providing incumbency advantages; Market leader in two of, and established positions in the remainder of, the Established Circles; Critical mass of 10.36 million subscribers as at September 30, 2006; Strong distribution channels; High quality network structure; A national brand; Part of the Aditya Birla Group. Quantitative factors FY 2006 Idea cellular eps 0.35 nav 3.03 p/e 214 RONW 10.14

46 | I p e r P g d m

Peer Group P/E Industry P/E a) Highest b) Lowest c) Industry Average idea cellular p/ e calculation eps= 0.35 share price= 75 p/e = 214 Financial parameters analysis

Telecommunications 43.6 17.4 37.6

The p/e of idea cellular in comparision of industry p/e is much high and also high in comparision of other companies like mtnl, reliance, vsnl etc . it shows the stock of idea is expensive in comparision of other stocks The eps of idea cellular is 0.35 which is too less is comparision of industry peers it means the earning of per share is too less of idea cellular The return on netwoth of idea is more in comparision of mtnl, reliance, vsnl but less then the bharti airtel so it is average in performance of eps The NAV of idea cellular is less in comparision of all industry peers its shows the size of the assest of the company is small in campare to other peers Listing day Listing Open close Gain/lose 75 92.4 85.55 14 % 47 | I p e r P g d m

DLF LIMITED DLF LIMITED Incorporated in 1946, DLF Limited is a real estate development company based in India. DLF is the largest Indian company in terms of the area of completed residential and commercial developments. DLFs main area of operation is Delhi and surrounding areas. DLF is in almost each and every area of real estate development including identification and acquisition of land, planning, execution, marketing and maintenance of the projects. DLF's major line of business includes: Residential business - DLF builds and sells a wide range of properties including houses, duplexes and apartments of varying sizes, with a focus on the higher end of the market. Commercial business - DLF builds and sells or lease commercial office space, with a focus on properties attractive to large multinational tenants. Retail business - DLF develop and manages leases based shopping malls, which in many cases include multiplex cinemas. DLF is now focusing on more infrastructure, SEZs(special economic zones) and hotel projects. Few more facts: Developed approximately 220 million square feet, including approximately 195 million square feet of plots, 17 million square feet of residential properties, 6 million square feet of commercial properties and 2 million square feet of retail properties. Land Reserves of approximately 10,255 acres. for the three years ended March 31, 2006, 2005 and 2004, DLF's consolidated total income was Rs. 12,420 million, Rs. 6,260 million and Rs. 5,266 million, respectively, and consolidated net profit was Rs. 1,917 million, Rs. 865 million and Rs. 538 million, respectively

Peer group P/E* (i) Highest 365.8 48 | I p e r P g d m

(ii) Lowest 9.6 (iii) Peer group Average 49.9 Dlf p/e calculation Eps= 12.84 Share price= 550 p/e= 42.83 EPS DLF LIMITED 12.84 RONW 17.52 BOOK VALUE

Financial parameters analysis The p/e of dlf is near to industry p/e that shows the company stock is not too expensive or cheap and the highest p/e is 253 of mahindhra gesco The eps of dlf here is 12.84 and it is mid between others peers , somit is average stock for the investment purpose The returns is 17.52 that is good in comparision of other company , there is other two company which have more then dlf rest of have a less then dlf so its also a good indication for investment The nav of of dlf is more then approx all company . company have large assest size in compare of other company Credit rating agency Crisil, care, icra, fitch etc Listing day Listing Open close Gain /lose rating

550 582 570.05 3.6%

49 | I p e r P g d m

SPICE COMMUNICATION Incorporated in 1997, Spice Communications Limited (or Spice Telecom) is a cellular services provider in the states of Punjab and Karnataka in India. Spice Telecom has around 14.26% market share in these states. Spice total billable subscribers as on December 31, 2006 were 1.86 million comprising approximately 1.41 million pre-paid subscribers and approximately 0.45 million post-paid subscribers. In three years ended June 30, 2004, 2005 and 2006, Spice telecom's total income was Rs. 5,544 million, Rs. 6,430.59 million and Rs. 6,804.53 million, respectively. Malaysias incumbent service provider Telekom Malaysia (TM) holds a 49%, while industrialist and Modi group chairman B K Modi owns the remaining 51% stake in Spice Communications. QUALITATIVE FACTORS Strong Player in our circle of operation. As of December 31, 2006, we were the second largest operator in Punjab, with approximately 1.75 million subscribers and the sixth largest operator in Karnataka, with approximately 0.70 million subscribers. For the two circles combined we were the fourth largest operator in December 2006 based on subscribers with a market share of 14.26%. Strong Strategic Investor in TM. TMs investment in our Company in March 2006 provided us with an opportunity to leverage the operational and strategic expertise of a major regional telecommunications player. TM is a leading telecommunications company based in Malaysia, with a strong presence in the Asia-Pacific region, including investments in Sri Lanka, Bangladesh, Indonesia, Cambodia, Singapore and Pakistan. Vibrant and well-recognised brand name. The Spice brand is well-recognised in our target markets. We position our brand as innovative, youthful and high-performing to appeal to the savvy and technologically advanced youth in these affluent states. Experienced Management Team. Our management team includes senior executives who have experience working in the Indian wireless communications market since the commercialisation of wireless services in 1995. As a result, our management has extensive experience with planning and implementing strategies in the fast-changing Indian cellular market. We believe our management strength will be crucial in the implementation of our future growth plans. QUANTITATIVE FACTORS EPS RONW PE BOOK VALUE 50 | I p e r P g d m

SPICE COMMUNICATION

(0.87)

52.87

17.85

Industry P/E Telecommunications a Highest 47.2 b Lowest 21.3 c Industry Average 41.0 spice p/ e calculation eps =-0.87 share price= 46 p/e 52.87

PEERS COMPARISION

The p/e of spice communication is 52.8 which is more then industry p/e and and other players its shows the the stock is expensive in comparision of industry peers The eps of spice communication is very less is comparision of peers group it shows the earning on per share is very much less on per share

51 | I p e r P g d m

The NAV of spice comm. is -2.1 that shows there is no value of assest and company have a to much I debt so its a bad indicators as a invest purpose Credit rating agency rating Crisil, care, icra, fitch etc Listing day Listing Open close Gain/lose

46 55.75 60.65 31.84%

HOUSING DEVELOPMENT INFRASTURURE LIMITED Incorporated in 1996, Housing Development and Infrastructure Ltd (HDIL) is a a real estate development company based in Mumbai. HDIL is part of the Wadhawan Group (formerly known as the Dheeraj Group) and operates in Mumbai Metropolitan Region. HDIL Real Estate Development business includes construction and development of residential projects, commercial and retail projects, Slum Rehabilitation and Development. HDIL has Large Land Reserves in the Mumbai Metropolitan Region. As of December 31, 2006, they had approximately 112.4 million square feet of Land Reserves. To expend its business by location HDIL is looking for projects in other locations, including Kochi and Hyderabad. HDIL is planning to enter into hotel projects, special economic zone developments and mega-structure complexes, which are large-scale mixed-use retail, commercial and residential developments. Qualitative Factors We believe the following business strengths allow us to successfully compete in the real estate sector: Large Land Reserves in the Mumbai Metropolitan Region; Strong in-house development capabilities and project execution skills; Experienced and established participant in Slum Rehabilitation Schemes; Established reputation for quality projects and construction; and Experienced management and employees

52 | I p e r P g d m

Industry P/E* i. Highest : 249.1 ii. Lowest : 3.3 iii. Industry Composite : 50.4 calculation of p/e eps 30.45 share price = 500 p/e = 16.42 Financial parameters analysis The p/e of hdil is 16.42 and industry average is 50.4 that shows the share of hdil is very chep and and hdil is the only company have a least p/e. The eps of hdil is at the top in comparision of other peers group where as the p/e of that company is so less means the stock is so cheap and here the the eps is at good high that shows the company have agood earning and good stock for the investment purpose. The return on netwoth is also more then the other two peers and less then two peers that means it give a avergage retun on euity to their shareholders Here NAV is her very less in comaparision of all peers company, above all eps, ronw, p/e is good but here nav is too less. It shows the company have more liability or may be company have too much expenditure or company have very less assests Credit rating agency rating Crisil, care, icra, 53 | I p e r P g d m

fitch etc Listing day Listing Open close Gain/lose

500 441.39 434.47 (13.1) %

At the time of listing company shares close at 434. That means at that particular day company not give a good returns and its eps, ronw, and p/e says its a good investment only nav is very less. OMAXE LIMITED Incorporated in 1989, Omaxe Limited is a real estate development and construction company with operations in 30 cities and 9 States in India. Omaxe Limited is involve in residential and commercial real estate development projects ranging from integrated townships, group housing and retail and other commercial properties, hotels, information technology and bio-tech parks to special economic zones. Omaxe's operations span across all aspects of real estate development, from the identification and acquisition of land, to the planning, execution and marketing of projects. As of September 30, 2006 Omaxe had completed more than 120 construction projects and had access to land reserves of approximately 3,052 acres. As of September 30, 2006, Omaxe had 46 current residential and commercial projects consisting of 19 group housing projects, 13 integrated townships, 13 shopping malls and commercial complexes and 1 hotel. On November 21, 2006, Omaxe entered into a joint venture with Azorim International Holdings Limited, which is part of a leading Israeli real estate development group. The joint venture is for the construction and development of project Omaxe Forest, an ultra-luxury group housing development in Faridabad. Omaxe's revenues have grown from Rs. 1,455.56 million in Fiscal 2003 to Rs. 8,193.18 million in Fiscal 2006, at a CAGR of 77.89% and profit after tax and minority interest increased from Rs. 49.72 million in Fiscal 2003 to Rs. 1,207.31 million in Fiscal 2006, at a CAGR of 189.58%. QUALITIATIVE FACTORS Ability to identify, acquire and consolidate land One of our key strengths is our ability to identify suitable tracts of land for our developments and to acquire and consolidate land. We have an in-house project research team consisting of 23 employees who are involved in gathering relevant market data, assessing the potential of a location after evaluating its demographic trends and in identifying relevant government schemes and incentives. Extensive land reserves As of September 30, 2006, we had access to land reserves of approximately 3,052 acres (including approximately 540 acres of land belonging to joint ventures and collaborations in

54 | I p e r P g d m

respect of which our economic interest is approximately 74% calculated on a weighted average basis in relation to such land). Experience in the construction industry with a track record for quality of construction and for timely delivery of projects We have been in the construction and contracting business for 17 years and have a high level of technical expertise in executing our projects. As of September 30, 2006 we had completed more than 120 construction projects in such capacity. We understand the intricacies of project planning and dealing with execution related issues like raw material procurement, labour, suppliers and other third parties Ability to identify emerging trends in customer requirements and strong marketing network. We have a strong marketing network of more than 800 business associates. Our marketing is structured in consideration of the nature of the project and the customer base at which the project is targeted. Our sustained and structured marketing over the cycle of the project results in wide exposure of our products to the target audience. We have a diversified business within the real estate sector. Our real estate business has diversified across geographical locations and in different real estate projects that we are involved in. We have projects and land reserves in 30 cities and 9 states of India. As of September 30, 2006, we had 46 current residential and commercial projects consisting of 19 group housing projects, 13 integrated townships, 13 shopping malls and commercial complexes and 1 hotel. Emphasis on innovation We were one of the first developers to conceptualize and develop theme malls in northern India. Our theme based projects include: Wedding Malls: Wedding malls are intended to be one-stop shops for all wedding related arrangements and will include shops and outlets selling wedding wear, jewellery, floral decorations and other wedding related accessories. 51 House 2 Home will include shops selling interior design-ware, furniture and other residential accessories to set-up and furnish a home. We are currently developing a House 2 Home mall at Gurgaon. NRI City that we are developing in Greater Noida is a mini-township in close proximity to the NCR and provides a choice of residential housing from apartments to individual plots with world-class amenities. Nile at Gurgaon is a residential project incorporating Egyptian style architecture but with modern amenities and conveniences.

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Peer group P/E (i) Highest 305.60 (ii) Lowest 5.20 (iii) Peer group Average 51.40 Omaxe p/e calculation Eps= 8.04 Share price= 310 p/e= 38.55 The p/e of omaxe is 38 and industry average is 51 that is less there others two peers have very high p/e and rest of others near average that means its a average price of stock not expensive and not too cheap The eps of omaxe limited is average not too high and too less in comparision of others peers , so company have a average earning in comparison of others peers. The return on netwoth is high in comparision all peers expect kulkarni . so here shareholders gets a good return on equity . The book value of omaxe share is very less in comparision of others peers company comparing too market value that is 300 it shows the share is too much overvalued. Credit rating agency rating Crisil, care, icra, fitch etc Listing day Listing Open

310 400 56 | I p e r P g d m

close Gain/lose

349.95 12.88

There is great performance see at a first date 12% returs at the time of closing the share was overvalued to see its overvalued nobody will invest in that copany but when we see its others parameters then investors come to know why the comy is good its netwoth is very high good eps good p/e. so its very important to analyse all the parameters INTERPRETATIONCENTRAL BANK OF INDIA Incorporated in 1911, Central Bank of India is the first Indian commercial bank which was wholly owned and managed by Indians. Central Bank of India branches are spread in 27 out of 28 States as also in 4 out of 7 Union Territories in India. Central Bank of India holds a very prominent place among the Public Sector Banks on account of its network of 3194 branches and 267 extension counters at various centers throughout the length and breadth of the country. Central Bank of India has over 25 million account holders. CBI plans to expand significantly the number of branches to 1,000 under central banking solution(CBS) so as to cover approximately 80% of the business by the close of financial year ending March 2008 (FY 2008). Also, the bank has set a target to increase its ATMs to 500 from 261 (end March 2007) by end of this fiscal. Qualitative Factors 1. 2. 3. We are a public sector banking institution in India and service over 25 million customers across India. As at March 31, 2007, we had 3,194 branches in India spread over 27 states and three union territories. Our advances increased by 38.18% to Rs. 517,954.67 million as at March 31, 2007 from Rs. 374,834.81 million as at March 31, 2006. As at March 31, 2007, housing and retail loans constituted 10.68% of our total outstanding credit. Our total deposits increased by 24.51% from Rs. 664,826.48 million as of March 31, 2006, to Rs. 827,762.77 million as of March 31, 2007. Our net NPAs to net advances ratio declined from 2.59% as of March 31, 2006 to Rs. 1.70% as of March 31, 2007. EPS (Rs.) P/E Return On Book Value Per Average Net Share (Rs.) Worth (%) [] 15.07 77.25 57 | I p e r P g d m

4. 5.

Central Bank

13.11

EPS (Rs.)

P/E

Return On Book Value Per Average Net Share (Rs.) Worth (%)

Peer Group Bank of Baroda Bank of India Canara Bank Union Bank of India Peer Group (Simple) Average 26.8 22.3 33.5 16.2 24.7 10.1 9.9 7.9 8.2 9.03 12.5 21.3 18.8 19.2 17.95 235.7 117.9 197.8 93.7 161.275

Industry P/E Highest: 17.7 Lowest: 4.9 Average: 10.4 Calculation of p/e Eps= 13.11 Share price = 102 p/e= 7.7 Financial parameters analysis The p/e of central bank is very less in comaprision of all others peers group that shows the company have a cheap stock but only p/e cannot says how the comp will perform in future. Here eps of central bank is less to all others peers bank.

Credit rating agency Crisil, care, icra, fitch etc Listing day

rating

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Listing Open close Gain/lose

102 110.68 98.17 3.75

Overall its was a good investment too see all its financial parametes very less p/e that means the stock is so much expensive good book value, and good returns on share At the day of listing also stock gave a 3.75% returns PURVANKARA PROJECT LIMITED Incorporated in 1986, Puravankara Projects Limited is one of the leading real estate development companies in India. Puravankara operations span all aspects of real estate development, from the identification and acquisition of land, to the planning and execution and marketing of the projects. The residential properties that Puravankara develop consist of apartment complexes, villas and townhouses. Puravankara's commercial projects include retail and office premises. Puravankara's projects are spread over Bangalore, Kochi, Chennai, Coimbatore, Hyderabad, Mysore, Colombo and the United Arab Emirates ("U.A.E"). Puravankara have completed 12 residential projects and one commercial project covering approximately 3.18 million sq.ft of Saleable Area. Puravankara currently have 12 residential projects and one commercial project under construction covering approximately 10.45 million sq ft. of Developable Area or 10.02 million sq ft. of saleable Area. As of December 15, 2006, Puravankara's Land Assets aggregate approximately 31.07 million sq. ft. Qualitative Factors We believe that we have an established brand name in the Indian real estate market owing to our commitment to quality and timely delivery of our projects. We have a strong and experienced management team, led by our Promoter. We also have access to an extensive land bank aggregating approximately 33.48 million square feet of land situated in various locations, including Bangalore, Chennai, Kochi and Coimbatore. Our partnership with Keppel Investment Mauritius Private Limited, a subsidiary of the Singapore based Keppel Land Limited (which is a subsidiary of Keppel Corporation Limited, a company that is majority owned by Temasek Holdings, the investment arm of the Singapore Government) is also another factor affecting the demand for our Equity Shares. Industry P/E* i. Highest : 156.5 ii. Lowest : 2.0 iii. Industry Average : 26.84 p/e calculation 59 | I p e r P g d m

eps= 6.8 share price = 450 p/e= 66.17 calculate P/e , at the time of listing Financial parameters analysis

Financial parameters analysis

Credit rating agency Crisil, care, icra, fitch etc Listing day Listing Open close Gain/lose

rating NIL

450 399 361.75 (19.6)%

If we talk about the purvankara limited its p/e was average that means the stock is not too expensive or cheap but the eps was very shows there is very less earning on share, ahead it the return on networth was good and book value was very less that tell the share was overvalued But finally at the day of listing the the compay gave 19% return on share.

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POWER GRID CORPORATION Incorporated in 1989, Power Grid Corporation of India Limited (PGCIL) is Indian government owned, public sector enterprise. PGCIL is in the business of transmission of electric power in India. It owns and operates a large network of transmission lines and infrastructure that constitutes most of Indias interstate and inter-regional electric power transmission system and carries electric power across India. As of March 31, 2007 PGCIL owned and operated 59,461 circuit kilometers of electrical transmission lines and 104 electrical substations. In Fiscal 2006, PGCIL transmitted approximately 279 billion units of electricity, representing approximately 45% of all the power generated in India. PGCIL is also into the consultancy business and has provided transmission-related consultancy services to more than 90 clients in over 200 domestic and international projects. PGCIL is also into the telecommunications business and own and operate a fiber-optic cable network for telecom business in India. As on March 31, 2007 PGCIL has over 19,000 kilometers long fiber-optic cable network connecting over 60 Indian cities, including all major metropolitan areas. PGCIL have been designated a Mini-Ratna Category-I public sector undertaking and in fiscal 2006, generated a total income of Rs. 35,543.14 million with profit after tax of Rs 9204.19 million. Transmission and transmission-related activities constituted 93.88% of total income, with the balance came from consulting and telecommunication businesses. Peers comparision We believe none of the listed companies in India are in the business of power transmission. Hence, comparative data for the peer group/industry is not available. The issue price of Rs. [] per Equity Share has been determined by us in consultation with the BRLMs, on the basis of the demand from investors for the Equity Shares through the Book building process and is justified based on the above accounting ratios. For further details see Risk Factors on page x and the financials of the Company including profitability and return ratios, as set out in the Auditors Report on page 138 for a more informed view. eps Power grid 2.76 ronw 9.41 NAV 28.31

p/e calculation eps= 2.76 share price= 52 p/e= 18.8 Financial parameters analysis

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PARAMETERS P/E EPS RONW Listing Open close Gain/lose 52 85 100.65 93.5%

Industry benchmark No comp for comparision

Company 18.8 2.76 9.41

There is no peers comparision because it is a huge company and nobody other company can compete with power gried well the eps, ronw, nav were ok, At the day of listing the company gave 93% returns.

MUNDRA PORT AND SPECIAL ECONOMIC ZONE LIMITED Mundra Port and Special Economic Zone Limited is developer and operator of the Mundra Port, a leading sea port located in Kutch Gujrat. Mundra Port is Adani Group promoted company and has exclusive right to develop and operate Mundra Port and related facilities for 30 years starting from February 17, 2001. Mundra Port provides port services for bulk cargo, container cargo, crude oil cargo and value-added port services, including railway services. Promoter of Mundra Port, Adani Group is a diversified group with around Rs 16,000 crore turnover. Incorporated in 1988, Adani Group is involve in businesses like commodities trading, coal mining, power trading, power generation, real estate development, agro processing and logistics, shipping and port operations. In April 12, 2006 Mundra Port received approval as a developer of a multi-product SEZ at Mundra and the surrounding areas, which will be the first port based multi product SEZs in India. Mundra SEZ will provide integrated infrastructure including world-class Industrial, Business, and Social infrastructure like development of Industrial plots, Commercial and Residential buildings, Schools, Colleges, Hospital, Entertainment, Sports and Recreation facilities. Mundra Port's income has grown at a compound annual growth rate of 51.2% from Rs. 1,676.7 million in fiscal 2004 to Rs. 5,797.4 million in fiscal 2007. Companys net profit in fiscal 2006 was Rs. 737.5 million and in fiscal 2007 was Rs. 1,931.2 million. Qualitative Factors We believe the following business strengths allow us to compete successfully in the port industry: Our natural and location advantages, including a deep water draft that enables us to accommodate larger vessels that require a deep water berth, and protection from severe weather that enables us to handle cargo throughout the year Proximity to the northern interior of India and major maritime trade routes which provides us a 62 | I p e r P g d m

strategic position to service the significant population of the landlocked north and northwest regions of India which generates significant port traffic Land with port back-up area and infrastructure which provides us sufficient resources for future expansion, and SEZ advantages Access to rail, road and pipeline network that provides us with a competitive advantage over competing ports in attracting larger volumes of cargo Strategic arrangements and established customer relationships with certain companies Experienced management team that has demonstrated the ability to manage significant expansion plans and capital expenditures while maintaining our recent income and profit growth p/e calculations eps= 5.36 share price = 440 p/e = 82 Financial parameters analysis PARAMETERS P/E EPS RONW Industry benchmark Company 82 5.36 26.08

Comparison with Industry Peers There are no listed comparables in the Indian port and SEZ industry. Credit rating agency Rating Crisil, care, icra, NIL fitch etc Listing day Listing Open close Gain/lose

440 154 192.34 (56.28)%

Mundra port p/e says that the stock is expensive but without peers we cannot says anything that how much it is expensive , its eps is less and gave a good returns finally at the listing day company gave huge loss to their investors the stock close more then below 50%

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RELIANCE POWER Reliance Power Limited (REPL), a Reliance Anil Dhirubhai Ambani (ADA) Group company is in the business of developing, constructing and operating power projects. The Reliance ADA group is one of the biggest business group in India involve in business like telecommunications (Reliance Communications), financial services (Reliance Capital), media and entertainment (Adlabs Films), infrastructure, energy (Reliance Energy REL, Reliance natural resources RNRL, Reliance Energy Transmission and Reliance Energy Trading) and other sectors. Reliance Power Limited is currently developing 13 medium and large sized power projects with a combined planned installed capacity of 28,200 MW across various geographic locations in India. First project of Reliance Power is expected to go onstream in 2009. Company intend to sell the power generated by these projects under a combination of long-term and short-term PPAs to state-owned and private distribution companies and industrial consumers.

Financial parameters analysis

Credit rating agency Crisil, care, icra, fitch etc

rating 4

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Listing day Listing Open close Gain/lose

450 516.53 351.23 (21.94)%

The public issue size of reliance power is 10000 crore which is largest upto 2009. Company had a good netwoth ok eps and less nav company came with huge issue size because their objective was to provide power in india at large quantity their fundamental are also very to see that investor invest money in that stock but after all at the day of listing company close at below 20%, at the time of listing it reaches at 516 but its not justified for the returns IRB INFRASTRUTURE Incorporated in 1998, IRB Infrastructure Developers Limited is in infrastructure development business which involves construction, development and operation of infrastructure development projects. IRB Infrastructure Developer is an established infrastructure company in the roads sector in India and have a large portfolio of completed and operational BOT projects in the Indian road infrastructure sector. IRB's construction business complements infrastructure development business and involves engineering, procurement and construction work for construction projects on a contractual basis, including in the roads sector. IRB is one of the leading Private Developers in the Western India & having large number of operating toll road projects. IRB has executed Road Construction works on BOT and funded basis for the Clients like MORST&H, NHAI, MSRDC, PWD, World Bank, Asian Development Bank, of around 1200 kms length, so far. IRB executed one of the early BOT Project viz. 'Thane Bhiwandi By-Pass Road' & the prestigious 'Mumbai - Pune Expressway & NH 4 BOT Project'. Qualitative factors The information presented in this section for the years ended March 31, 2005, 2006 and 2007 is derived from our unconsolidated audited restated financial statements and consolidated audited restated financial statements for March 31, 2007. Investors should evaluate the Company taking into consideration its earnings and based on its consolidated growth strategy. Some of the qualitative factors which may form the basis for computing the Issue Price are as follows: Diversified portfolio across road infrastructure sector at various geographic locations. Ability to meet pre-qualification credentials. Extensive experience and strong track record. Professionally managed company. Experienced management and a qualified employee base. Integrated execution capabilities with in-house construction and management capabilities

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Industry P/E a) Highest 131.9 times b) Lowest 2.9 times c) Industry Average 32.0 times P/e calculation Eps= 3.5 Share price= 220 P/e= 62.8 Financial parameters analysis

Credit rating agency Crisil, care, icra, fitch etc Listing day Listing Open

rating 4

220 170.05 66 | I p e r P g d m

close Gain /lose

189.05 (13.63)

To see the fundamental and credit rating investor should invest in this stock every thing is positive in financials like its book value not overvalued and not undervalued its p/e is very near to industry p/e, yes eps is less in comparision of peers and return on netwoth is also average. At the day of listing stock not gave good returns and its shares close below 13%.

RURAL ELECTRIFICATION CORPORATION LIMITED Incorporated in 1969, Rural Electrification Corporation Limited (REC) is one of the leading public financial institutions in Indian power infrastructure. They are engaged in the financing and promotion of transmission, distribution and generation projects throughout India. REC provides funding to their clients and assist them in formulating and implementing various types of power project-related schemes. Clients include public sector power utilities at the central and state levels and private sector power utilities. Additionally, they fund power projects for their joint sector clients. Their financial products primarily include long-term loans, shortterm loans, bridge loans and debt refinancing. REC currently administer grants and provide loans as the nodal agency for the RGGVY, which is primarily aimed at the electrification of all villages in India. REC provides loan assistance to SEBs/State Power Utilities for investments in rural electrification schemes through its Corporate Office located at New Delhi and 17 field units (Project Offices), which are located in most of the States. The GoI has rated their performance as Excellent continuously from Fiscal 1994 through Fiscal 2006. They have also been ranked among the top ten public sector undertakings in India by the Ministry of Heavy Industries and Public Enterprises for Fiscal 2000, Fiscal 2002 and Fiscal 2005. QUALITATIVE FACTORS Our business is profitable and our financial position strong; Our overall cost of funds is competitive; We have extensive experience and knowledge in Indian power sector finance, particularly in the area of transmission and distribution; We employ a pro-active approach to client relationships; and We occupy a key strategic position in the GoIs plans for inclusive growth

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INDUSTRY P/E There is only one company for the comparision for rural electrification is power finance corporation so take its p/e as a industry benchmark The P/E ratio of PFC is 16.9. p/ e calculation eps= 8.77 share price= 105 p/e= 11.9 Financial parameters analysis

Credit rating agency Crisil, care, icra, fitch etc

rating 3

Listing day Listing Open close Gain/lose

105 125 121.2 15.41%

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Rural electrification is one of the of best stocks in india at the time of listing also its gave a positive returns of 15.41%. one of the reason of positive returns is this is the govt undertaking company and its fiancials and fundamentals are also very strong. NHPC LIMITED 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. NHPC have developed and constructed 13 hydroelectric power stations and their total installed capacity is currently 5,175 MW. This includes two power stations with a combined capacity of 1,520 MW, constructed and operated through our Subsidiary, NHDC. Company's power stations and hydroelectric projects are located in the North and North East of India, in the states of Jammu & Kashmir, Himachal Pradesh, Uttarakhand, Arunachal Pradesh, Assam, Manipur, Sikkim and West Bengal. Company generated 14,813.16 MUs of electricity in Fiscal 2008. Presently, They are engaged in the construction of 11 additional hydroelectric projects, which are expected to increase total installed capacity by 4,622 MW. Further eight projects, including one joint venture project, with an anticipated capacity of 5,751 MW, are currently awaiting sanction from the CCEA. NHPC have obtained ISO 18001:2000, ISO 9001:2000 and ISO 14001:2004 certifications from the Bureau of Indian Standards We believe the following business strengths allow us to successfully compete in the power generation and supply sector: Established track record in implementing hydroelectric projects; Long term power purchase agreements with our customers; Strong operating performance; Competent and committed workforce; and Strong in-house design and engineering team

EPS

BOOK VALUE

RONW%

P/E

69 | I p e r P g d m

NHPC LIMITED Industry P/E (i) Highest: 1,496.5 (ii) Lowest: 10.7 (iii) Peer Group Average: 21.2 p/ e calculation eps= 0.97 share price= 36 p/e= 37.11 Financial parameters analysis

0.97

6.30

37.11

Credit rating agency Crisil, care, icra, fitch etc Listing day Listing Open close GAIN/LOSS

rating 3

36 39 36.7 0.20%

Nhpc is also a govt undertaking company at the day of listing company not impress to their investor one one reason may be the financial of the company is not good just to except p/e ratio. Well afterall all company not close at negative that goofd thing for investors.

OIL INDIA LIMITED 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. OIL has over 1 lakh sq km of PEL/ML areas for its exploration and production activities, most of it in the Indian North East, which accounts for its entire crude oil production and majority of gas 70 | I p e r P g d m

production. Rajasthan is the other producing area of OIL, contributing 10 per cent of its total gas production. Presently, OILs exploration activities are spread over onshore areas of Ganga Valley and Mahanadi. OIL also has participating interest in NELP exploration blocks in Mahanadi Offshore, Mumbai Deepwater, Krishna Godavari Deepwater, etc. as well as various overseas projects in Libya, Gabon, Iran, Nigeria and Sudan. Qualitative Factors Factors Internal to the Company _ We are the second largest national oil and gas company in India as measured by total proved plus probable oil and natural gas reserves and production (Source: DGH). As of March 31, 2009, our unaudited estimated independent proved plus probable crude oil reserves were approximately 575.40 million barrels (which include certain reserves attributable to condensate from non-associated gas reservoirs) and our independent proved plus probable natural gas reserves were approximately 63.41 billion cubic meters (which include certain reserves attributable to fuel gas consumption). _ All of our estimated independent proved plus probable oil reserves, as well as 93.66% of our estimated independent natural gas reserves, are located onshore in the Upper Assam basin in the states of Assam and Arunachal Pradesh. Additionally, we have independent natural gas reserves in the Jaisalmer basin in the state of Rajasthan. _ We have been present in the India oil and gas exploration and production industry for over five decades and count among our achievements the creation of a fully automated crude oil pipeline. Factors External to the Company _ The significant growth of India's economy over the past decade has led to increases in domestic energy consumption. During the five year period ended March 31, 2009, the CAGR of consumption of petroleum products was has grown significantly from 107,751 thousand metric tons for fiscal 2004 to 133,400 thousand metric tons (provisional figure) for fiscal 2009. (Source: PPAC, June 2009) _ Crude oil demand is projected to increase to about 1,393 million barrels per year by 2012. Gas demand is expected to reach 330 million standard cubic meters per day by 2012, which represents a CAGR of 10% for the period between 2005 and 2012. Increased use of gas for power generation, petrochemicals, fertilizers and city gas distribution are expected to drive demand growth in the country (Source: Investment Commission of India). _ India is a net importer of crude oil and natural gas. There is currently a mismatch between the demand and supply for both natural gas and crude oil in India, with the demand for both sources of energy outweighing the domestic production. In 2008, India daily consumed 1051.90 million barrels of crude oil but produced only 279.40 million barrels. Similarly, India consumed 41.40 billion cubic meters of natural gas but produced only 30.60 billion cubic meters (Source: BP Statistical Review of World Energy, 2009). INDUSTRY PEERS COMPARISION

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Industry p/e Highest 37.3 Lowest 7.3 Industry Composite* 17.7 p/e calculation eps= 104.24 share price= 1050 p/e= 10.07 Financial parameters analysis

Credit rating agency Crisil, care, icra, fitch etc Listing day Listing Open close Gain/lose

rating 4

1050 1019 1140 8.57%

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Oil india limited is one of the largest oil producers in india when I see its financial then nowheee its peers group in comparision. To see its strong fundamentals every one invest in this company its returns on netwoth is much high to its peers eps is also high, crdit rating is 4. At the day of listing company gave 8.57 % returns and I thing its good returns at the first day day and those who are invest in that company he was haapy to invest in these stock.

INDIA BULLS POWER LIMITED 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. Indiabulls Power Ltd has five thermal power projects under development, which will have a combined installed capacity of 6,615 MW. These projects include: 1. Amravati Phase-I (1320 MW) 2. Amravati Phase-II (1320 MW) 3. Nasik (1335 MW) in Maharashtra 4. Bhaiyathan Thermal Power Project (1320 MW) & 5. Chhattisgarh Power Project (1320 MW) in the State of Chhattisgarh. Indiabulls is also developing four medium size Hydro Power Projects in Arunachal Pradesh aggregating to 167 MW. Indiabulls has also entered into MoUs with the Govt. of Madhya Pradesh and Jharkhand for setting up of 2640 MW & 1320 MW Thermal Power Projects. QUALITATIVE FACTORS 1. We are managed by a team of professionally qualified people. All the three promoters are engineers from the Indian Institute of Technology, New Delhi. 2. Consolidated Net worth of our Company, as of March 31, 2004 was Rs. 1023.19 million. 3. Consistent growth in net profits at a CAGR of 118.31% for the last 2 years. Operating profits grew at a CAGR of 166.39% and revenues grew at CAGR of 132.97% over the last 2 years. 4. We grew from 1 location and 310 clients in the year 2000 to 70 offices, 55 cities, 606 employees and 32,359 retail clients spread across the country. 5. Diversified product offering: equity, debt & derivatives brokerage, mutual funds, commodities, IPO distribution, insurance products and research services. 6. We have Rs. 1760 million of sanctioned credit facilities from 9 leading banks and financial institutions

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7. Indiabulls Securities Limited has PR1+ rating for unsecured short term borrowing program, which was increased from Rs. 200 million to Rs. 320 million on May 5, 2004, and A+ rating for medium to long term unsecured borrowing program of Rs. 200 million. The Rating to the Company has been assigned by Credit Analysis Research Limited. 8. For Financial Year 2003-04 EBITDA was Rs. 365.39 million and Profit Before Tax was Rs. 308.97 million 9. Our distinct set of competitive advantages which are as follows: _ Diverse Branch Network of 70 branches in 55 cities. _ Bouquet of financial products and services _ Advanced technology team of 27 people comprising of several engineers that delivers market leading product innovation _ Strong sales and marketing teams of 476 Relationship Managers with continuous reinvestment and training _ Strong cross selling opportunities amongst 32,359 clients as on April 30, 2004 _ Strong and experienced promoters _ Leading product innovation and marketing strategies _ Well capitalised player, with strong banking relationships and credit ratings _ Ability to combine people and technology in unique ways _ Strong market presence and increased market share leads to a virtuous cycle of growth and profitability _ One of the leading players with professional and entrepreneurial management in the retail financial market.

Calculation of p/ earning Eps= 0.05 Share price= 45 p/e= 900 Financial parameters analysis agency rating Crisil, care, icra, 3 fitch etc Listing day Listing Open

45 44.95 74 | I p e r P g d m

close Gain/lose

39.25 (12.7)%

To see the stock financial I am saying its not good financial because its share are overvalued there is no eps no RONW so how the copany can give good returns and it was happen at the first day compny stock close at 12% below the share price. JSW ENERGY LIMITED 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. JSW Energy Ltd is an established energy company with 560 megawatts of operational generating capacity and 3,090 MW of generating capacity in the construction or implementation phase. JSW Energy plans to foray in all areas of power Generation, Transmission, Distribution and Trading. Currently company is working on power solutions in the States of Karanataka, Maharashtra, Rajasthan and Himachal Pradesh. JSW is expanding their generation capacity by an additional 2,385 MW through construction and implementation of four new power plants in Maharashtra, Rajasthan and Himachal Pradesh. Each project is planned to be strategically located either near an available fuel source, load centre or infrastructure facilities. Raj WestPower Limited (RWPL), promoted by JSW Energy is a Rs.5000 crore project at Bhadresh, District Barmer. The project plans to generate 1080 MW (8 x 135MW) of power which will be supplied to the distribution companies (Discoms) in Rajasthan. In Maharashtra under implementation is a 1200 MW (4 x 300 MW) Power Project located at Jaigarh, District Ratnagiri, Maharashtra. JSW Energy has also marked its entry into Himachal Pradesh. JSW Energys is setting up Hydro Power Project at Kutehar, River Chamba., which will generate 260 MW Power valued at Rs.1700 crore. JSW has been engaged in power trading activities since June 2006. The Central Electricity Regulatory Commission, or CERC, has granted us a F category license which is the highest license category available to trade power in India.

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Industry P/E a. Highest : 95.60 b. Lowest : 9.10 c. Industry Composite : 22.20 calculation of p/e eps= 5.04 share price= 115 p/e= 22.8 Financial parameters analysis

Credit rating agency Crisil, care, icra, fitch etc Listing day Listing Open close Gain/lose

rating 4

115 102 100.75 (12.39)

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At the day of listing share close at 12% below the share price there is reason behind it its financial are not good the share are overvalued , there is very less earning on per share price, returns on equity is also so less in all this conditions its very difficult to gave the positive returns of the company. DB REALITY LIMITED DB Realty Limited (DBRL) is a real estate development company focusing on residential, commercial, retail and other projects, such as mass housing and cluster redevelopment in and around Mumbai. Today, the Group is one of India's top Real Estate developers, with presence in Commercial, Residential, Hospitality, Retail, IT Parks and Gated communities. Its existing product portfolio ranges from upscale buildings, lavish villas and some of the most elite malls in the country. As of August 31, 2009, DB Realty have ten Ongoing Projects, aggregating approximately 18.61 million square feet of Saleable Area, nine Forthcoming Projects, aggregating approximately 20.17 million square feet of Saleable Area and six Upcoming Projects, aggregating approximately 22.11 million square feet of Saleable Area. They are jointly promoted by Mr. Vinod K. Goenka and Mr. Shahid U. Balwa, whose families have been in the real estate and allied businesses for more than 25 years and 95 years, respectively. DB's significant shareholders also include IL&FS Trust Company Limited, IIRF Holdings VI Limited, Trinity Capital (Eleven) Limited, Bollywood Mauritius Holdings and Walkinson Investments Limited Qualitative Factors We believe the following business strengths allow us to successfully compete in the real estate sector: 1) Strong Presence in Mumbai 2) Land Identification at Attractive Pricing and Strategic Locations 3) Strong Parentage Proving Access to Experience and Capabilities 4) Development Capabilities and Project Execution Skills 5) Good Relationships with Investors, Leading Banks and Financial Institutions, Contractors and Architects 6) Development of Projects through the Joint-Venture Model 7) Experienced and Professional Management

DB REALITY Industry P/E*

266.95

28.49

1094.39

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Highest 112.90 Lowest Nil Industry Composite 32.10 Calculation of p/e Eps= 266.95 Share price= 486 p/e=1.8 Financial parameters analysis

Credit rating agency Crisil, care, icra, fitch etc Listing day Listing Open close Gain/lose

rating 2

486 430 455.4 (6.29)

The financial are very good after all the credit rating give 2 rating means poor fundamental. If we leave the credit rating every one will say that the company have good financial and strong competetiors of dlf, ackruti and unitech . the company is emerging very fast and its project is spread in overall mumbai At the day of listing company not give a good return and disappoint to its investors and its share price close at below 6.29% JAYPEE INFRATECH LIMITED Qualitative Factors Some of the qualitative factors which form the basis for computing the price are: Ability to leverage the Jaypee Groups technical capabilities, project management expertise and execution skills; Strength of the Jaypee Greens brand; Integrated development with real estate projects being developed alongside an expressway; Strong regional growth prospects; Large and mostly contiguous land reserves among three parcels in the NCR acquired at the YEAs acquisition cost and with significant land use flexibility; Single state location of the entire Yamuna Expressway; and 78 | I p e r P g d m

Strong and experienced management team, well-trained workforce and streamlined operating processes. Comparison with other listed companies There is no listed comparable infrastructure company with large real estate exposure as the Company

EPS JAYPEE INFRATECH p/e calculation eps= 2.8 share price= 117 p/e= 41.7 Financial parameters analysis Credit rating agency Rating Crisil, care, icra, 3 fitch etc Listing day Listing Open close Gain/lose 2.8

RONW 21.42

BOOK VALUE 43.41

P/E 41.7

117 93 91.3 (21.9)

At the day of listing investors not happy with the stock because its close below 21% of its share price. Its financial are good we cant compare its financial because there is no peers of that king of huge size . . SJVN LIMITED Incorporated in 1988, Satluj Jal Vidyut Nigam Ltd (formerly Nathpa Jhakri Power Corporation Limited - NJPC) is a hydroelectric power generation company, originally established as a joint venture of the Government of India ( GOI ) and the Government of Himachal Pradesh (GOHP) to plan, investigate, organize, execute, operate and maintain Hydro-electric power projects. The present authorized share capital of SJVN is Rs 7000 crores. 79 | I p e r P g d m

The Nathpa Jhakri Hydro Electric Power Station NJHPS ( 1500 MW ) was the first project undertaken by SJVN for execution. The 1500 MW NJHEP has been designed to generate 6612 MU of electrical energy in a 90% dependable year with 95 % machine availability. It is also providing 1500 MW of valuable peaking power to the Northern Grid. Out of the total energy generated at the bus bar, 12 percent is supplied free of cost to the home state i.e. Himachal Pradesh. From the remaining 88% energy generation, 25% is supplied to HP at bus bar rates. Balance power has been allocated to the beneficiary states / UTs of Northern Region by Ministry of Power, Government of India. SJVN is currently constructing the 412 MW Rampur Hydro Electric Project in the state of Himachal Pradesh. SJVN is also implementing three hydro projects (252 MW Devsari, 60 MW Naitwar Mori and 51 MW Jakhol Sankri) in the state of Uttarakhand. Further, SJVN has also been allocated Luhri Hydro Electric Project (775 MW) and Dhaulasidh HEP (66 MW) in the state of Himachal Pradesh for preparation of Detailed Project Report and subsequent execution. Further, SJVN is entering into a Joint Venture for the implementation of 1500 MW Tipaimukh HE Project in Manipur with an equity participation to the extent of 26%. Qualitative Factors We believe the following strengths will allow us to successfully compete in the power sector: Experience in hydroelectric power project development Established track record of operational excellence Stable revenue stream through long-term power purchase agreements with state electricity boards Ability to capitalize on performance-based incentives under the current tariff regime Established reputation for good corporate governance and environmental and social responsibility Existing committed work force Strong cash position to support project development and operations Power Generation Industry P/E

Highest : 317.3 Lowest : 11.2 80 | I p e r P g d m

Industry Composite : 21.2 Calculation of p/e Eps= 1.85 Share price= 26 p/e= 14

Financial parameters analysis The p/e of sjvn is less then industry average and less then others peers

Credit rating agency Crisil, care, icra, fitch etc Listing day Listing Open close Gain/lose

rating 4

26 28 25.05 (3.6)%

It is government undertaking company and has a tied up with himachal Pradesh govt. its financial are excellent credit rating are also good in its peers group company have a best financial after all at the day of listing its below 3.6% SKS MICROFINANCE Qualitative Factors We believe the following business strengths allow us to successfully compete in the microfinance sector: Market Leadership Superior asset quality Expertise in microfinance Diversified Sources of Revenue Pan-India rural distribution network Scalable operating model Access to multiple sources of capital and emphasis on asset and liability management Experienced management team and board of directors 81 | I p e r P g d m

Comparison with other listed companies We believe that none of the listed companies in India are engaged exclusively in the business of microfinance. EPS SKS MICROFINANCE 8.94 RONW 12.04 BOOK VALUE P/E

p/e calculation eps= 8.94 share price= 985 p/e = 110 Financial parameters analysis Credit rating Agency rating Crisil, care, icra, 4 fitch etc Listing day Listing Open Close Gain/lose

985 1036 1088 10.4%

This is the first microfiance company which come with their ipo and its share price is also so much expensive sks is the largest micro finance company and has a huge network in over the india that;s why agency give a 4 creditrating to the ipo. Well at the day of listing company gave 10% gains to their investors OBEROI REALITY LIMITED Oberoi Constructions is a real estate developer focused on premium developments in Mumbai. Group have completed 32 projects covering approximately 4.979 million square feet of saleable area spread across the city of Mumbai. The Oberoi Realty group currently manages a portfolio spanning across Residential, Office Space, Retail, Hospitality and Social Infrastructure properties in Mumbai. Oberoi develop residential, office space, retail, hospitality and social infrastructure projects in mixed-use and single-segment developments. currently they have eight Ongoing and 19 Planned projects, which we expect to provide a total Saleable Area of approximately 21,316,528 square feet. 82 | I p e r P g d m

Qualitative Factors Competitive strengths 1. Strong presence in Mumbai; 2. Established brand and reputation; 3. Strong project pipeline providing near term cash flow visibility; 4. Cash flow stability from our rental properties; 5. Strong and stable management team with proven ability; 6. Financial strength; 7. Our proven execution capabilities; and 8. Scalability due to outsourcing model.

Industry P/E* Highest 391.20 Lowest 2.80 Industry Composite 38.50 p/e calculation eps= 8.49 share price= 260 p/e=30.62 Financial parameters analysis

Credit rating agency Crisil, care, icra, fitch etc

rating 4

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Listing day Listing Open close Gain/lose

260 280 282.2 7.6%

The company have a excellent financials and good credit rating and at the day of listing company shares close at 7.6 % that shows the company have have strong fundamentals. PRESTIGE ESTATE LIMITED Incorporated in 1986, Prestige Estates Projects Ltd is a Bangalore based company involve in real estate development. Prestige Estates is south Indias largest real estate development company. Company has completed 142 real estate projects of approximately 27.09 million sq. ft. Company has a diversified portfolio of real estate development projects including residential (including apartments, villas, plotted developments and integrated townships), commercial (including corporate office blocks, built-to-suit facilities, technology parks and campuses and SEZs), hospitality (including hotels, resorts and serviced accommodation) and retail (including shopping malls) segments of the real estate industry. Company has established a strong brand image, have a successful track record of execution and a diversified portfolio of real estate projects Qualitative Factors Some of the qualitative factors which form the basis for computing the prices are: Strong execution track record and capability Diversified portfolio of real estate projects Strong brand name Experienced management team Partnership with CRIDF Strong client base

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Peer Group P/E: a. Highest: 32.9 b. Lowest: 27 c. Peer Group Average: 29.95 p/e calculation eps= 2.95 share price= 183 p/e= 62 Financial parameters analysis

Credit rating agency Crisil, care, icra, fitch etc Listing day Listing Open close Gain/lose

rating 3

183 190 192.55 5.2 %

At the day of listing its shares close at above 5.2% to analyse company financial its good somewhere I foundin some thing I found some deficiency but its overall good stock and should invest in COAL INDIA LIMITED Coal India Limited is the largest coal producing company in the world, based on raw coal production of 431.26 million tons in fiscal 2010. Coal India produce non-coking coal and coking coal of various grades for diverse applications. As of March 31, 2010, Coal India operated 471 mines in 21 major coalfields across eight states in India, including 163 open cast mines, 273 underground mines and 35 mixed mines (includes both open cast and underground mines). They also operated 17 coal beneficiation facilities with an aggregate designed feedstock capacity of 39.40 million tons per annum. Company intend to develop an additional 20 coal beneficiation facilities with an aggregate additional proposed

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feedstock capacity of 111.10 million tons per annum. Besides this, They provided 85 hospitals and 424 dispensaries. The Indian Institute of Coal Management (IICM) operates under CIL and imparts multi disciplinary management development programs executives. Coal India's major consumers are the power and steel sectors. Others include cement, fertiliser, brick kilns etc. QUALITATIVE FACTORS The largest coal producer and one of the largest reserve holders in the world Well positioned to capitalize on the high demand for coal in India Track record of increasing productivity and cost efficient operations Robust financial position with a strong track record of financial performance Strong capabilities for exploration, mine planning, research and development Experienced senior management team and large pool of technically skilled employees EPS COAL INDIA 15.56 RONW 23.60 BOOK VALUE 24.67 P/E

p/e calculation eps= 15.56 share price= 245 p/e= 15.74 Financial parameters analysis Credit rating agency Rating Crisil, care, icra, 5 fitch etc Listing day Listing Open close Gain/lose

245 287.75 342.35 39.5%

This is company where every investor can invest the money with close eyes because this kind of opportunity is come very less in the year this is the one of the favorate ipo of every one . coal india is come with 15000 crore of ipo that is largest till date more then excellent fundamentals and superb fianancils. Every thing is ok in this company very good price band for investors

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And finally investor make money at the first day stocks close with 40% in first day. PARAMETERS P/E EPS RONW Industry benchmark No industry in comparision Company 15.74 15.56 23.60

COMPARISON WITH INDUSTRY PEERS: We are a coal mining company and there is no other listed peer in India with which we can be compared with MOIL LIMITED Incorporate in 1896, MOIL Limited (Manganese Ore India Limited) is India based producer of manganese ore, primarily used to make ferro-alloys for steel production. MOIL is a 'Mini Ratna' PSU, owned by Government of India and under the administrative control of the Ministry of Steel. MOIL Limited is the largest producer of manganese ore by volume in India. MOIL operate seven underground mines (Kandri, Munsar, Beldongri, Gumgaon, Chikla, Balaghat and Ukwa mines) and three opencast mines (Dongri Buzurg, Sitapatore/Sukli, and Tirodi) to produce more then 1,093,363 tonnes of manganese ore. In addition to high, medium and low grade manganese ore, company produces manganese dioxide and chemical grade manganese ore. The major competitive strengths of the company are: 1. Largest producer of manganese ore in India with access to significant reserves; 2. Well positioned to capture the growth potential of the Indian steel industry; 3. Track record of growth and efficient operations; 4. Strategic location of the mines and 5. Strong capabilities for exploration, mine planning and research development. Qualitative Factors 1. Largest producer of manganese ore in India with access to significant reserves 2. Well positioned to capture the growth potential of the Indian Steel Industry 3. Track record of growth and efficient operations 4. Strategic location of our mines provides us with competitive advantages 5. Strong track record of financial performance 6. Strong capabilities for exploration, mine planning and research development 7. Experienced senior management and large pools of skilled manpower

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Mining Industry P/E i) Highest: 225.0 ii) Lowest: 4.3 iii) Industry Composite: 22.5 p/e calculation eps= 27.72 share price= 375 p/e= 13.52 The p/e of moil india is less in comparision of industry peers and industry average The eps of moil India is more then industry peers its give a indication that whether the share is expensive but it gives a earning on share. Credit rating agency Crisil, care, icra, fitch etc Listing day Listing Open close Gain/loss rating 5

375 551 466.5 24.4 %

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In year 2010 is the good year for investor who invest money in ipo , numbers of good ipos came and gave a good returns Like that moil India is also gave 25% returns at the first day. Credit rating was 5 and financial parameters are also excellent .

The following are the list of companies and detail of their p/e is above and below the industry average
s.no p/e below or above industry p/e below industry p/e- profit no industry peers above industry pp/e below industry p/e- profit no industry peers below industry p/e- loss no industry peers below industry p/e -loss above industry p/e -loss no industry peers below Industry p/e -profit above industry below industry p/e- profit above industry p/e no industry peers no industry peers above industry p/eabove industry p/e- loss below industry p/e- profit below.profit below. Loss above.profit below. Profit above.profit no industry peers no industry peers above.industry peers- loss results ( in profit or loss) % 24% 39.50% 5.20% 7.60% 10.40% -3.6 -21.9 -6.29 -12.39 -12.7 8.57% 0.2 15.41 -13.63 -21.94 -56.28 93.50% -19.6 3.75 12.88 -13.1 31.84 3.6 14 31.2 -27.3 -12.3

Companies
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 MOIL Limited IPO Coal India Limited IPO Prestige Estates Projects Ltd IPO Oberoi Realty Limited IPO SKS Microfinance Ltd IPO SJVN Ltd (Satluj Jal Vidyut Nigam Ltd) IPO Jaypee Infratech Limited (JIL) IPO D B Realty Limited IPO JSW Energy Limited IPO Indiabulls Power Limited IPO Oil India Limited IPO NHPC Limited IPO Rural Electrification Corporation Limited (REC) IPO IRB Infrastructure Developers Limited IPO Reliance Power Limited (REPL) IPO Mundra Port and Special Economic Zone Ltd IPO Power Grid Corporation of India Limited IPO Puravankara Projects Limited IPO Central Bank of India IPO Omaxe Limited IPO Housing Development and Infrastructure Ltd IPO Spice Communications Limited IPO DLF Limited IPO Idea Cellular Limited IPO Power Finance Corporation Limited (PFC) IPO Cairn India Ltd IPO Parsvnath Developers Limited IPO

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List of the IPOs with their credit rating given by different agency and their results s.no

Companies
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 MOIL Limited IPO Coal India Limited IPO Prestige Estates Projects Ltd IPO Oberoi Realty Limited IPO SKS Microfinance Ltd IPO SJVN Ltd (Satluj Jal Vidyut Nigam Ltd) IPO Jaypee Infratech Limited (JIL) IPO D B Realty Limited IPO JSW Energy Limited IPO Indiabulls Power Limited IPO Oil India Limited IPO NHPC Limited IPO Rural Electrification Corporation Limited IPO IRB Infrastructure Developers Limited IPO Reliance Power Limited IPO Mundra Port and Special Economic Zone Ltd IPO Power Grid Corporation of India Limited IPO Puravankara Projects Limited IPO Central Bank of India IPO Omaxe Limited IPO Housing Development and Infrastructure Ltd IPO Spice Communications Limited IPO DLF Limited IPO Idea Cellular Limited IPO Power Finance Corporation Limited (PFC) IPO Cairn India Ltd IPO Parsvnath Developers Limited IPO

credit rating by care, icra, crisil 5 5 3 4 4 4 3 2 4 3 4 3 3 4 4 Not available Not available Not available Not available Not available Not available Not available Not available Not available Not available Not available Not available

results ( in profit or loss 24% 39.50% 5.20% 7.60% 10.40% -3.6 -21.9 -6.29 -12.39 -12.7 8.57% 0.2 15.41 -13.63 -21.94 -56.28 93.50% -19.6 3.75 12.88 -13.1 31.84 3.6 14 31.2 -27.3 -12.3

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Chapter -5

Finding & conclusion

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In above data analysis i made a chart of all companies and their p/e of above and below industry average and what happen in the day of listing I found those companies have p/e below industry average they give a gains at the day of listing and those have a p/e above industry average they majority of them got loss.
below p/e industry p/e profit loss 10 8 2 above p/e 9 5 4

Here the analyses of ipo which got a credit rating from 1 to 5 in this analysis found that most of ipo who got a 3 credit rating they are most successful below 1 got majority of loss above 4 rating got 55 % success and 45% loss. Overall the credit rating agency majority of the decision and their rating are rights and investors can do believe on that rating this ratings are feasible.
credit rating profit 1 to 2 3 4-to 5 grand total loss 3 5 1 2 4 total ipo 1 5 9 15

My objective is to make this project was to analyze the financial indicators a which is give in the section of IPO prospectus of on the basis of pricing in that section there are given EPS, RONW, P/E ratio, BOOK VALUE and NAV I analyze near about 30 IPOs in that IPO I analyze these financial parameters with their industry peers company. After analyze these parameters I also check the day when stock was listing and it gave profit or loss..

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In every company I found different results like in one company the p/e was good EPS was good, but the RONW was bad and at the day of listing the company gave loss, vis a vis profit also. In many company I found some parameters are good and excellent and others are ok but at the day of listing company not gains and investor suffered loss. In the case of power grid there is no peers but the company was huge and govt undertaking and at the day of listing it gave 90% return. So its very difficult to say about these kind of company which is new in sectors and which have other company in comparison will give us a good returns or not.. Yes we can say the company will give us 100% positive returns how much dont know but it will give us a positive returns at the first day. These kinds of company have a too much strong fundaments and strong financial excellent credit rating. These kind of company like coal India, MOIL history says these company gave always positive returns because every investor want to purchase these kind of stock which have good fundamental and these fundamental increase the demand of share when demand was high these stock perform well and gave good return and then very less people sell these shares it and prices continue goes up. Well in my research project I saw 50% company gave positive results and 50% gave negative results its all depend on company and its fundamental. Investors have a perception that in Govt Company is a safe place for investing that why they increase its demand in market. But these is not a true many good private sector company also gave a fantastic returns. Credit rating is also now a good parameters to see about the investment decision, some credit agency like care, crisil , icra gave their own rating on the ipo after analyzing the financial parameters. Most of the time their forecasting is right. These are list of all those companies on which I anlyse the basis of issue pricing and price performance and find which companies gave how much return on the first at the closing of NSE. I analyse all the parameters of these companies like P/E,EPS, RONW,BOOK VALUE, NAV, AND CREDIT RATING.. Companies MOIL Limited IPO
gain/loss % 24% 93 | I p e r P g d m

Coal India Limited IPO Prestige Estates Projects Ltd IPO Oberoi Realty Limited IPO SKS Microfinance Ltd IPO SJVN Ltd (Satluj Jal Vidyut Nigam Ltd) IPO Jaypee Infratech Limited (JIL) IPO D B Realty Limited IPO JSW Energy Limited IPO Indiabulls Power Limited IPO Oil India Limited IPO NHPC Limited IPO Rural Electrification Corporation Limited (REC) IPO IRB Infrastructure Developers Limited IPO Reliance Power Limited (REPL) IPO Mundra Port and Special Economic Zone Ltd IPO Power Grid Corporation of India Limited IPO Puravankara Projects Limited IPO Central Bank of India IPO Omaxe Limited IPO Housing Development and Infrastructure Ltd IPO Spice Communications Limited IPO DLF Limited IPO Idea Cellular Limited IPO Power Finance Corporation Limited (PFC) IPO Cairn India Ltd IPO Parsvnath Developers Limited IPO

39.50% 5.20% 7.60% 10.40% -3.6 -21.9 -6.29 -12.39 -12.7 8.57% 0.2 15.41 -13.63 -21.94 -56.28 93.50% -19.6 3.75 12.88 -13.1 31.84 3.6 14 31.2 -27.3 -12.3

In my research I found very different results and this is very important as anvestors point of view, those ipo comes of govt undertaking companies they are 95% success i.e at the day of listing close at above the share price like power grid gave 92 % in first day, coal india 40% moil 24%. Their financial are good I not denied for that but in private companies those finnacila are good from all side after all they not succeed this are happen in 30% companies.
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Bibliography BooksPandey I.M- financial management, vikas publication house, 12th print, 9TH edition

Websiteswww.Chittorgarh.com www.Moneycontrol.com www.sebi.in www.Yahoofinance www.Bseindia.com www.Nseindia.com

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