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7/31/2019 A Study on Indian IPO's
1/67
SUMMER INTERNSHIP PROJECT
On
A Study on Indian IPOs
Submitted By
Udit Bubna
Roll No. 201168
FMG XX
Under the Guidance of
Prof. Vinay Asthana
FORE School of Management
FORE School of Management, New Delhi
B-18 Qutab Institutional Area
New Delhi
7/31/2019 A Study on Indian IPO's
2/67
Pa
e | 2
7/31/2019 A Study on Indian IPO's
3/67
SU
MMER
A
FORE
INTE
tudy o
Su
U
Roll
Under
Prof.
FORE Sc
School of
B-18 Quta
Ne
NSHI
On
n Indi
mitted B
it Bubna
No. 20116
MG XX
he Guidan
Vinay Ast
hool of Ma
Managem
Institutio
w Delhi
P PR
n IPO
8
ce of
ana
nagement
nt, New D
al Area
JECT
s
lhi
Pa
e | 3
7/31/2019 A Study on Indian IPO's
4/67
Pa
e | 4
7/31/2019 A Study on Indian IPO's
5/67
This isinternshIndian IGraduat
This Rehas earlwas car
Date: 1
Place:
to certify tip at SharPOs towe Diploma
port is theier compriried out un
2/06/2012
elhi
hat Mr. Ukhan Ltdrds part f
in Manage
result of hied any oter my ove
CE
it Bubna,and has sulfillmentment (FM
s own worer report,
rall supervi
TIFICAT
Roll No.bmitted thf the req--20) 2011
k and to thmonograpsion.
01168, his projectirements f-2013.
e best ofh, disserta
In
s completeport entitor the aw
y knowleion or boo
r. Vinay A
ternal Fac
Pa
d his suled A Sturd of the
ge no partk. This pr
thana
lty Guide
e | 5
mery onPost
of itoject
-
7/31/2019 A Study on Indian IPO's
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A projesuggestwould nto acknshare th
I would(Profesthis projvaluablcomplet
I would
Singh,his valuand erBranch,
AcknowSharekproject,
I am alsfor provi
Finally Ifinancia
ct is nevions, revieot have bewledge aleir experie
like to exsor, FORect and m
insightsed.
like to ex
Asst. Mable time adite sugghas been
ledgementan Ltd., Jespecially
o sincerelyding their
wish to exl support.
r a workw, contribn possibl
l those pernces.
ress my sSchool oke it a suand guid
ress my
ager Salend guidedstions. Tuperb und
are alsohandewalahe discus
thankful telp and a
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incere indf Managecess. I wonce witho
eep sens
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all the favice when
ncere ack
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ividual raork invol
e contributho helpe
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uld also liut which
of gratitu
han Ltd),benefitedhere of lence and t
ll the other providinmarket.
ulty membver it was
owledgem
ntther it ising manyion of som
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to my meiving me te to thankthis proje
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Jhandewalgreat deaarning inaining.
r staff meinformati
ers of FOneeded.
ent to my
a combinpeople. Tpeople. It
complete
tor Prof.he opportuMr. Asthat would
ndustry gu
a , New Dl from his iSharekhan
mbers ann at vario
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arents for
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tion of iis projectis my plehis project
inay Astnity to woa for provave not
ide, Mr. J
elhi, whocisive an, Jhande
executivus point o
f Manage
their moral
Udit Bubn
e | 6
eas,alsosureand
anak onidingeen
ipal
pentlysisalan
s inf the
ent
and
a
7/31/2019 A Study on Indian IPO's
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The proIndia frofocusesIPO. TmoneyIPOs isyears.
In orderreferreddifferentreturnsunderstnumber
periods.time. Thlast 5 y
The IPconsistBankingreturnsresultshalf dec
The prSecondwere taSecondnew issthe Sec
The otconductsurveyprefereaffect t
comparExpectasome in
The lastthe anal
ect on Am 2007 toon the rethe initialose fromsued has
to write th. The perftime fram
were calcnding theof IPOs
The findie maximuars.
s were alnt performSector wrom Publihows that
ade.
ject enligry Marketen and frry markete. The rendary Ma
er part oed to knoas overwces towareir decisi
d with ttions andteresting fi
part of theysis of the
Extudy on In2011. Duriurns fromart of therimary Maeclined w
is report vrmance o
es of Opeulated froIPO markgiving pos
gs show treturns f
so segreging Industrre found tSector IPPublic Se
tens the rperformanm each inwas chosults show tket for alm
the repothe investelming ass the typen to inve
e secondactual resdings.
report deProject.
ecutidian IPOsng this perthese IPOproject talrket sinceile the m
rious resethe IPOs
ing Day, 1the issu
t at differeitive retur
hat numbeom IPOs
ted accorin last 5be mosts and Pri
ctor IPOs
eaders ofces. In orddustry 1 cn. The rethat Primarost all the I
t deals wor behavioit collectedof IPOs,
t in Prima
ary datalts of IPO
ls with Co
eSu focuses oiod 240 IPs and alsoks about t1993 till 2ney raised
arch papewas evalMonth, 6
e price ofnt time ints and ne
r of IPOsere seen
ing to diffears on thonsistentvate Sectohave bee
the comper to compmpany fr
urns wereMarket s
ndustries.
ith the Prwhile inv90 respohe returnsry Market.
analysis ts perform
clusions,
marn the perfs were ianalyzes
he Primar10. The trfrom the
s, books aated on tMonths, 1an IPO.rvals. The
gative ret
giving posduring the
erent indubasis of tivers. Th
r IPOs lauperformi
rison betare the mam Primarythen analyare has b
imary Datsting in anses. The rexpectedThe resul
find annce. This
ecommen
rmance ofsued in Ininvestor b
Market ind showshave incr
nd onlinee basis oYear and
The analyproject alrns durin
itive returninitial 6 mo
tries to finheir returnproject al
nched in lg consiste
een Primrkets 5 diffMarket wed from ten perfor
. An onliIPO. Thesults sho
over a yeat of the s
deviatioanalysis w
dations an
Pa
IPOs issuia. This prhavior toIndia an
that numbeased ove
atabasesthe retur
May 2012.is will heo analyzedifferent
s declinesnths of iss
d out the. IT Sectoo analyzest 5 years.ntly well in
ry Marketerent Induile otherse listing ding better
e surveyresponse ts the inver & factorsrvey was
in Inveill give re
Findings
e | 7
ed inojectardsthe
er ofr the
eres atThe
lp inthe
time
withe in
mostandthe
Thelast
andtriesfromy ofthan
wasthe
storsthatalso
torsders
from
7/31/2019 A Study on Indian IPO's
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Conte
ACKNOW
EXECUTIV
CHAPTERINTRODU
1.1PRO
1.2COM
1.3OBJ
1.4RELE
CHAPTERLITERATU
CHAPTERMETHOD
3.1RESE
3.2DAT
3.3SAM
3.4DAT
3.6FIEL
3.7LOC
3.8UNI
CHAPTERSECONDA
4.1FUN
4.2SUM
4.3ANA
4.4IND
4.5IND
4.6SEC
4.7COM
4.7.
4.7.
4.7.
4.7.
4.7.
4.8ANA
CHAPTERPRIMARY
5.1SUR
5.2CRO
5.2.
5.3CRO
5.3.
5.4CRIT
ts
EDGMENT.....SUMMARY......................TION.............
ECTBACKGROU
PANYBACKGRO
CTIVEOFTHEST
VANCEOFTHES
....................EREVIEW.........................LOGY............ARCH
METHOD
COLLECTION...
PLESELECTION..
ANALYSIS.......
EXPERIENCE....
LEOFTHESTUD
ERSEOFSTUDY.
....................YDATAANA
DSGENERATEDB
MARYOFRETUR
LYSISOF
IPOSR
STRYWISEDIST
STRYWISEANA
ORWISEANALY
PARINGRETURNReturnAnalyReturnAnalyReturnAnalyReturnAnalyReturnAnalyLYSIS&DISCUSSI
....................DATAANALYSEYRESULTS&A
STABULATION
ApplyingChiSTABULATION
ApplyingChiERIAFORINVESTI
.....................
.....................
.....................
.....................
D....................
ND..................
DY.................
UDY................
.....................
.....................
.....................
.....................
LOGY...............
.......................
.......................
.......................
.......................
......................
.......................
.....................
YSIS..............IPOS............
SOFIPOSINL
ETURNSAT
VARYI
IBUTIONOFIPO
LYSISOFIPOS...
SIS...................
INPRIMARYM
isofAutomoisofITCompisofTelecomisofConstrucisofBankingONOFPRIMARY
.....................
IS..................NALYSIS............
FEXPERIENCEIN
SquareTestofFEXPECTEDRET
SquareTestofNGINIPOS......
.....................
.....................
.....................
.....................
.......................
.......................
.......................
.......................
.....................
.....................
.....................
.....................
.......................
.......................
.......................
.......................
.......................
.......................
.......................
.....................
.....................
.......................
ST5YEARS.......
NGTIMEFRAME
S....................
.......................
.......................
RKET&SECOND
ileCompanieniesinIndia..unicationsC
tionCompaniCompaniesinSECONDARYM
.....................
.....................
.......................
INVESTING&PRIndependencRNSANDPREFEIndependenc.......................
.....................
.....................
.....................
.....................
......................
......................
......................
......................
.....................
.....................
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......................
......................
......................
.....................
.....................
......................
......................
.....................
......................
......................
......................
ARYMARKET....inIndia...............................
mpaniesinInsinIndia.......India..............ARKET.............
.....................
.....................
......................
EFERREDSECTOR.....................RREDSECTOR...............................................
.....................
.....................
.....................
.....................
.......................
.......................
.......................
.......................
.....................
.....................
.....................
.....................
.......................
.......................
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.......................
.......................
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dia........................................
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.......................
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.......................
.......................
.......................
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.......................
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......................
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.......................
.......................
.......................
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......................
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.......................
.......................
.......................
.......................
.......................
.......................
.......................
.......................
.......................
.......................
.......................
.......................
.......................
......................
......................
.......................
.......................
.......................
.......................
.......................
.......................
Pa
.....................
.....................
.....................
.....................
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.....................
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e | 8
......6
......7
.....12
.....12......12
......14
......16
......16
.....18
.....18
.....20
.....20......
20
......20
......21
......21
......21
......22
......22
.....23
.....23......23
......24
......25
......26
......27
......29
......31
......31
......33
......35
......37
......39
......41
.....42
.....42......42
......43
......43
......44
......45
......46
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5.5EXTE
CHAPTER6.1MAJ
6.2CON
6.3SUG
6.4LIMI
REFERENC
APPENDIC
APPENDI
APPENDI
RNALFACTORS
....................
ORFINDINGS.....
CLUSION...........
GESTIONS..........
ATIONS...........
ES..................ES..................XA:LISTOF240
XB:SURVEYQU
FFECTINGSTOCK
.....................
.......................
.......................
.......................
.......................
.....................
.....................
IPOS.............
STIONNAIRE......
MARKET..........
.....................
.......................
.......................
.......................
.......................
.....................
.....................
.......................
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.....................
.......................
.......................
.......................
.......................
.....................
.....................
.......................
.......................
.......................
......................
.......................
.......................
.......................
.......................
......................
......................
.......................
.......................
Pa
......................
.....................
......................
......................
......................
......................
.....................
.....................
......................
......................
e | 9
......48
.....50......50
......51
......51
......52
.....53
.....54......54
......64
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List of
FIGURE1:
FIGURE2:
FIGURE3:FIGURE4:
FIGURE5:
FIGURE6:
FIGURE7:
FIGURE8:
FIGURE9:
FIGURE1
igures
PIECHARTOF
LINECHARTO
LINECHARTO
LINECHARTO
LINECHARTO
LINECHARTO
PIECHARTOF
PIECHARTOF
GRAPHOFDIF
:GRAPHFOR
PUBLICSECT
FAUTOSECT
FITSECTORCFTELECOMM
FCONSTRUCTI
FBANKINGC
TOTALSAMPL
GENDERDIST
FERENTAGEG
CRITERIAFORI
RANDPRIVAT
RCOMPANIES
OMPANIES....
NICATIONSC
ONCOMPANIE
MPANIES......
SIZE...........
RIBUTIONOFS
OUPSOFSA
NVESTINGINI
ESECTORIPO
..................
...................MPANIES.....
S................
...................
...................
AMPLE.........
PLESIZE......
PO'S...........
'S...............
...................
...................
...................
...................
...................
...................
...................
...................
...................
....................
....................
....................
....................
....................
....................
....................
....................
....................
....................
Pag
....................
....................
....................
....................
....................
....................
....................
....................
....................
....................
| 10
....29
....32
....34
....36
....38
....40
....42
....42
....42
....46
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List of
TABLE1:
TABLE2:
TABLE3:
TABLE4:
TABLE6:
TABLE7:
TABLE8:
TABLE9:
TABLE10:
TABLE11:
TABLE12:
TABLE13:
ables
UNDSGENER
UMMARYOF
O.OFIPOS
AST5YEARSI
ETURNSFRO
ETURNSFRO
ETURNSFRO
ETURNSFRO
RETURNSFRO
CROSSTABUL
CROSSTABUL
LISTOF240I
TEDBYIPO'S
ETURNSOFIP
IVINGRETUR
POINDUSTRY
AUTOMOBIL
ITSECTORIN
TELECOMMU
CONSTRUCTI
MBANKINGS
ATIONOFEXP
ATIONOFEXP
PO'SISSUEDI
OVERYEARS.
O'SINLAST5
SATDIFFERE
WISE...........
SECTORINP
PRIMARYAN
NICATIONSSE
NSECTORIN
CTORINPRIM
RIENCEININV
CTEDRETUR
LAST5YEAR
...................
YEARS.........
TTIMEFRAM
...................
IMARYANDS
SECONDARY
TORINPRIM
PRIMARYAND
ARYANDSEC
ESTINGANDP
SIN1YEARA
S.................
...................
...................
ES..............
...................
CONDARYM
MARKET.......
RYANDSECO
SECONDARY
NDARYMAR
REFERREDSEC
NDPREFERRE
...................
....................
....................
....................
....................
RKET............
....................
DARYMARKE
ARKET.........
ET...............
TOR..............
SECTOR.......
....................
Pag
....................
....................
....................
....................
....................
....................
T.................
....................
....................
....................
....................
....................
| 11
....23
....24
....25
....27
....31
....33
....35
....37
....39
....43
....44
....54
7/31/2019 A Study on Indian IPO's
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Introd
1.1Pro
Initialsecuritistock eto invesimportatap acompan
make afurtherand the
Investinhigh eleThe rul
Is highemanage
objectivadvantacan be
Advant
9 T
9 T
9 It
9ac
ction
jectBack
ublic Offs by a cochange. Inors on a pt objectivide rangey for futur
lot of monxpansionnew share
g in IPO hment of ris
r the risk,ment obje
s. Both hge for bottudied fro
ges for Co
he cost ofanks for mhe compa
helps theapital Venhen a co
ppreciatioompany.
round
ring (IPO)pany, wh
other worublic stockof an IPOof invest
e growth
y from theand develholders get
s its own sis involve
higher thetives and
ave a lotthe comp2 viewpo
mpany
an Initial Pany years.y need no
companyures etc inpany sellsof the sha
CH
is the firsich is follos, it refersexchange,is to raisers who wnd develo
sale of itspment. Tha right to f
et of advad, if succe
returns. The investo
f risk invony and thints for th
blic Offer
require p
to tap widorder to raits stock pre price du
PTER
public offed by th
to the firstwith an intcapitalforould provipment. C
shares whie companuture profit
tages andsful, it can
he compar looks for
lved. But tinvestorse compan
is low as c
ying back
range ofise huge aublicly, thee to marke
1
ering of elisting of
sale of a cention to rthe comp
de largempany go
ch it tries tis not re
s distribut
disadvanteven resu
y issuesinvestmen
hen invest. The signiand for th
mpared t
he Capital
investors lmount ofre is also tt factors n
uity sharea companompanysise new cny. It helpolumes ofing for an
o anticipatuired to rd by the c
ges. Whelt in a high
n IPO witt keeping i
ment alsoicance of ie investors
costs of b
Raised.
ike FIIs,oney.e possibilit directly r
Pag
or conves sharesommon spital. Thea compacapital tIPO stan
how to uspay the cmpany.
e on oner rate of re
its own sn mind his
comes witnvesting in.
orrowing it
etail Inve
y forlated to th
| 12
rtibleon aaresmosty tothe
s to
e forpital
and,turn.
et ofown
h anIPO
from
tors,
7/31/2019 A Study on Indian IPO's
13/67
Advant
9
l
9 Tt
The pricfailure oan IPOgeneratsufficieIPO invinstituti
Underpbetweegeneratresult inprice. Hcould h
Overprithan thedifficultin sellinextent.
IPO Ma
The Inditill 2009offers. Iyear. IPPoliticalgoing th
ges for Inv
ne of the lw price wostly IPOhe speculan long te
ing of an If the IPO iand an att
interest it capital foolves thenal invest
ricing is othe Initialadditionasignifican
owever, uve been r
cing is whmarket isor underw
g all the o
ket in Indi
an IPO m-2010 441
the yearO marketInstability
rough diffi
estors
crative thiich is benare unde
tive investrm gains.
O is a versue. Therempt shou
the markr the comunderwriters.
ne of theoffer Pric
l interest ingains forder pricinised had t
en a particwilling to priters to kefered shar
rket is one8 compan2007-2008in India haand Globult times,
ngs about Ificial for inpriced.rs are inte
y critical aare many
ld be madt and at tany. Thes arrangi
ost comand first
the stockinvestors
also rese shares
lar stock iay. It is mep their ples then it
of the proies haveRs. 42595s alwaysl Issues.oney rais
PO is thatestors to t
rested onl
pect andfactors the to reache same tirocess forg share p
on waysdays closhen it firsho havelts in losseen offere
s made avre risky thdge to sel
is likely to
ising maraised Rs.crore wereen volatilDuring 20d through
companyap the initi
in the sho
as a direct need toan IPO pe, it shouldeterminiurchase c
f pricing aing price.becomeseen allocof signific
d at the hi
ilable to tn under p
l shares.lose its m
kets for th176449 craised hi
e pertaini08-09 wheIPO in Indi
enerally ofl rise in pr
rt-term pot
impact one considerice that isd be highg an opti
ommitment
n IPO, it iUnderpricepublicly trated sharent amounher rate
e public atricing. Asven if theyrketable v
investors.rore throuhest amog to Econn the gloa was only
Pag
fers it at aice of stoc
ntial rathe
the succeed while prlow enounough toal price fos from le
the differd IPO helded. Thisat the offof capital
a greaterresult it ware succe
alue to a
Since 199gh initial pnt in anymic Condal marketRs. 2082
| 13
ery, as
r
ss oricingh to
raiser theding
ences toightringthat
priceill bessfulreat
3-94ubliciven
ition,wasrore
7/31/2019 A Study on Indian IPO's
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declineCoal In
In India
also whmoney2006 ununder-p
1.2Co
ShareksuccessSSKI GSharekexecutiadvice
The firFeb 8,customlanguagcustomonline trIndia, S
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o cannotrom retailder-pricingricing was
panyBa
an is onefully sinceoup, whican offers in on BSEtc.
s online t000. Thers acrosse and higrs. The nading currarekhan a
an has aly has usstems, OFinancial
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7/31/2019 A Study on Indian IPO's
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Litera
Over thIPOs.(1969)underpduringperformin an IPto an alnamed
the mVaidyastudy oexchan
Benvenbe reduand uncompetinumber
positivelinformatfirm and
In the Ievaluat1991 toThiripal1995. Kshort-te
Saurabevaluatinitial punderp
ureRev
years mhere haveeported urformance975 to 1
ed as comand reta
ready listeMoney lef
ney theathan (2055 firms le in India.
iste andced if diffeinformedtive outcoof uninfor
y related tion producgross pro
dian contd the perfMay 1995aju studyakati (199m under p
Ghosh (s the stocblic offerinrformance
ew
ny studiesstudies rder pricinby using84, he shared to thning it for t
firm. Pat on table
firm coul09) foundisted on N
pindt (19rentiation iinvestors.e in IPO
med inves
the incretion whileeed from I
xt Shah (rmance ofstating 10ere more) who res
ricing is 36
005) Thek returns ags from 1in the long
CH
have beelated to tto the ex
a sampleowed that
already lihe next thrde and V, this tells
generataverage uational St
9) suggestdone pri
Saundersarket res
tors. Che
se in thenegativelyPO.
1995) &IPO. Whil.6% retur
related to tearched 5.6% while l
post offerind operati90 to 200run of the
PTER
conductee under ptent of 11f 1526 cin the lonsted firms.ee yearsidyanathathat higher
throughderpricingck Excha
ed a modr to the al(1990)
ulted frommanur (
number ofrelated to
adhusooShah stu
s in IPO ohe long ter00 IPOs fong term o
ng performg perform. He docu
Banking In
2
on the pricing of t
, Jay R.mpanies tg run IPORitter alsoould give l
(2009) ethe amou
higherof 22% oge (herea
l by whichlocation ofupportedsmall num993) prop
investorsthe proba
anan anied 2056
ver short-tm returnsrom 1993ver pricing
ance of Iance of thmented thdustry sha
rformancee IPO ReiRitter (199hat wentfirms sigcommenteower returplained tht of under
ffer pricethe day
ter NSE),
level of ushares bethat undeber of infoosed that
f the IPOility of bei
Thiripalrtocks listirm. Madhrom the IPto 1996 dis 40.8%.
O from Be Indian Bt there waes.
Pag
& relevanlly and Ha1) documublic in Uificantly ud that inves as compe phenompricing gr
. Pandef listing ina leading
der pricinween infor pricingrmed and lunderprici
and the cg a high
ju (1997)g from Jasoodanan
O from 19cumented
nking Indnks that
s no signif
| 18
e oftfieldnted.S.A.der-
stingarednonater
andtheirtock
canmedis aargeg is
st ofalue
alsouaryand2 tothat
stryade
icant
7/31/2019 A Study on Indian IPO's
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In Indiafrom that very
due toSahooIPO isspricingare buywho bomonths.shows tIPOs thto the e
One ofVellamIndia bsharessharesprice. Hissue, iperform
many cominvestors.igh rates,
market forPrabinaued betweas 46.55
ing througght the sFew of t
e similar ft hit thetent of 72.
the latestl Collegetween 20fter a moere tradi
e also stahis study
ance of the
panies unAs a resulgiving goo
es of deRajib (201en 2002
in thesesubscript
ares on lie studies
indings likearket bet
34%.
studies iof Engin4 and 20th, 1 Yeag below thed the beit was moIPOs was
er price tt on the lisd returns, t
and and0) on Indi2006. T
hares. Thiion offer asting dayconductedKrishnaeen 1992
this regering an8. The st& 3 Year
e issue prist return frre than 55mixed in
eir issue iting day thhe prices
supply. An IPO marey studiestudy als
e earningf IPO arebefore Seurti andand 1994
rd is bytechnolo
udy wass. He docce & 100om an IP% returnsis analysis
order toe share pritable dow
study wasket 2010, i92 IPOssuggeste
positive reearnings
shadev Sumar (20emonstrat
.C.Johngy; he stone by amented thhares wecomes i
from the I.
et maximce of the c
after few
conducten which thand repo
d that thosturns, butnegative rhoo & Pra2) workinge that the
Sasi Kumdied 275 Ialyzing that out of 2e trading
the firstO. Howev
Pag
m subscriompaniesdays of tr
by Seshy analyzeted that uinvestors
those inveturns up tbina Rajibon a sam
under prici
ar, ProfePOs issue prices o75 shares,bove the ionth afte
er the lon
| 19
ptionpending
devthenderwho
storso 12alsole of
ng is
sor,d inthe165
ssuer the
run
7/31/2019 A Study on Indian IPO's
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Metho
3.1Res
The resof IPOSecondSome rAll IPOMonth,IPOs
applied
The reswhich tThis willdividedprofitabl
Primarinvestinqualitatisurvey
to invesasked twill help
3.2Dat
The datutmost
For the
In orderSecondwere redifferentcompar
ology
earchMe
earch A Ss issuedary Datasearch paperforma
6 Months,ere calcul
to have m
earch alsoey belonghelp in kn
on the basie to invest.
Researcin an I
e, as it wn attempt
t their morank the fin getting i
aCollecti
a collectioccuracy k
purpose of
rimary Soecondary
to collectry Data verred in otime framd with oth
hodology
tudy on Irom 2007as collect
pers werence were1 Year, 5ted from
re in depth
includes sand thenwing the
s of Public
h was alO. The
ill help inwas made
ey in an Iactors thatnsights int
n
for projeeping in m
data colle
rcesources
the data brious onli
der to cones and for sites to
CH
dian IPOto 2011.
ed from valso referrnalyzed oears and
the Issue
analysis.
egregatingtudying thest perforSector &
o conducturvey focegregatinto find out
PO & whiaffect theithe inves
t A Studind the im
tion, two d
oth Primare websiteuct propedifferent i
onfirm its
PTER
has beeDuring t
rious webd so as t
n the basithe pricesPrice & t
the IPOstrends ining indus
rivate Sec
ed to finused mor
differentthe criteri
h type ofinvestme
ors buying
y on Indiortance of
ifferent so
and Sec, journals,
r analysis.ndustrieseliability.
3
carried oe periodites in ordprovide sof return
as on Maen some
on the bathe returnry in last 5or, so as t
out theon qua
aspects othat inve
IPO do tht decisiondecisions.
n IPOsthe projec
rces were
ndary resresearchThe dataor last 5
ut to find t240 IPOer to comome insigh
on Openi02,2012.
statistical
sis of diffes from diffyears. Thfind whic
investorstitative dainvestortors consi
y prefer.on IPOs.
has been.
adopted fo
arch wasapers & an IPOs wears. The
Pag
e performwere is
lete the rets on the tng Day, afThe returneasures
rent industrent indusIPOs aresector is
behaviorta ratherehavior. Iered impo
hey wereThe respo
arried out
r the study
conductedcademic bas collectedata was
| 20
anceued.port.opic.ter 1s onere
ry tories.alsoore
hilethan
thertant
alsonses
with
:
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Secondinformattables i
For Pri
clientsDocumThe purBoth nresponwithincross tainvestorsome c
3.3Sa
The sahavingrespondselectea resultamongmethodwere 90
3.4Dat
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The surthe wheof IPOthe linkby pie c
3.6Fiel
For thefrom th
ry dataion regardthe Seco
ary Rese
f Sharekhnts. The spose of theminal anents of dweeks. T
bulation tos were therrelation b
pleSelec
pling metdemat acents. As. Due to pthe findinoreians, pwas used..
aAnalysi
lysis oftime fra
nding andt the retur
ey resultsther the Rhosen bybetween tharts while
dExperie
purpose ofpeople. T
as workeing the IPdary Anal
arch an o
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ordinalfferent aghe surveymake analn comparetween inv
ion
od adoptounts ora resultucity of ti
gs are limieers, relati. The surv
econdaryes. Thecomparis
ns at differ
have beeturns expthe investo variableordinal dat
nce
selling Dehis activity
d upon is. Mostly
sis part for
nline surv
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e groups tesults werysis easy td with theestor expe
d was Nothose whvery perse and res
ted to thees and py was co
data wasdata hasn. The annt time pe
applied wcted andrs. Chi Ss of the sa by graph
mat Accouwas perfor
excel sthe dataeasier un
y was co
n e-mail ited in myhe investocollectedhat fillede shown wo comprehfindings ftations &
Probabilare acti
on did nources thesmall regiofessionalducted wi
done bybeen repralysis hasriods.
ith Chi Sqears of E
uare testmple. Thes and cros
nts we wemed for 1
eet to geas been rerstandin
ducted o
. The surrior comprs behaviofrom thehe surveyith the helend. All thom Seconctual resul
ity Samplie traders
have ansample won only. T. As a rethin 2 we
calculatingesented ialso been
are Test operiencef Indepennominal d
s tables.
e requiredeek in dif
t importaepresente.
social n
ey wasny and Mwhile invesurvey. T. The dataof graphsresponse
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| 21
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The solhelpedResearget the
3.7Loc
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| 22
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Secon
4.1Fu
The ab2010. Ocomparbecaus
aryDat
dsGener
ve table sne can ead to the 9people h
Analysis
tedbyIP
Tabl
ows the nily interpr
0s but theave starte
Years
1993-9
1994-9
1995-9
1996-9
1997-9
1998-9
1999-0
2000-01
2001-0
2002-0
2003-0
2004-0
2005-0
2006-0
2007-0
2008-0
2009-1
CH
s
1: Funds Ge
. of IPOst that sincfunds raibelieving
IP
APTE
nerated by IP
issued ane 2000 theed by thethat inve
Issued
692
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1357
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52
18
51
114
7
6
21
23
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's over Year
funds rosno. of IPhave inc
ting mon
Amount(cror
786
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343
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246
s
e from theissues h
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9
4
9
6
4
5
2
6
Pag
since 19ve reduc
ny folds man be a
| 23
3 tod asainlyood
7/31/2019 A Study on Indian IPO's
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investmbecausas majoimproveNovem
15000 c
4.2Su
Mea
Medi
Standar
Maxim
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The ab
be seenThe avday. Thlowest ffor all tnumbertotally dsome re
ent opportof a glob
r investmein 2010
er 2010 I
rores.
maryof
O
n
an
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um 2
um -
ve table s
that averarage reture currentom any ot
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nity. Duril slowdowts banks
2011 mdias bigg
eturnso
Table 2:
eningDay
5.45
0.09
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7.08
ows the a
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are givingthe openin
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g the yea. Peopleround there IPOs
est IPO ti
IPOsin
Summary of
1 Month
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erage retu
from IPOear of issuoks worseriod. It ca1 year t
negative rday as it
time fram
r 2009 IPtarted havworld lostwere issull date CO
ast5Yea
eturns of IP
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-25.31
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rns from th
eep on dee is -23.0as averaalso be in
e medianturns to thshows tha.
s in Indiaing negatiillions of dd and mAL India
s
's in Last 5 Y
s 1
-2
-4
72
34
-9
e IPO on
reasing wi% while it
ge returnterpreted tis -46.10e investormore tha
dried upe views oollars. As tre fundsas issue
ears
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ifferent tim
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Pag
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urrently
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e frames, i
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| 24
denrketsd to. In
early
can
riod.ning19%lowum
on isiving
7/31/2019 A Study on Indian IPO's
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4.3An
Time P
Openin
After 1
AfterMont
After 1
Curre
The abYearperiodthem arlisting dthere w50% ret
It hasTherehighestreturn osharesinto act.
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than thlong rusituatiovolatile.situatio
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tly 6
ve table s& as onore are th
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Only 44 c.
OsRetur
Table 3: No.
ill 10%
. %
14
8
5
3
3
ows the ray 2012.shares gi
egative rete years sh34 shares
that maxithan 50%ed to anyday mainl
e is better
rpreted th
performanmuch une companmpanies a
nsatVar
of IPOs givin
10% to 3
No.
35 1
31 1
14 5
10 4
8 3
turns of thAs you caving negatiurns, therares givinand curre
um returof the shther time-
y becausereflected i
t the short
ce in the lertainty as perfor
re able to
ingTime
g Returns at
R
0% 30
% No..58 19.92 13
.83 10
.17 14
.33 5
e IPO fromobserve
ve returns,is an incmore tha
tly there o
s on sharares givinperiod. Thof under pn the long
term perf
st 5 yearsbout theance as aive some
Frames
ifferent Tim
eturns
to 50%
%
7.92
5.4
4.17
5.83
2.08
Openingrom the laout of 240
rease of50% retu
nly 25 sha
es were gpositiveshares a
ricing of shrun as the
rmance of
or so. Thiarket, poresult sha
returns to t
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30 1
43 17
28 11
25 10
ay, 1 Most columnIPOs curr7 (32%) srns were ares giving
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re more likares by thn the mar
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No..17 119.5 146.92 161
.67 182.42 196
th, 6 Montlonger theently 81.67hares frolso reducionly more
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ely to givecompany.
et forces
as been b
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| 25
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%
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60.83
67.08
75.83
81.67
s, 1time% of
theg asthan
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etter
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7/31/2019 A Study on Indian IPO's
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35
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o
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anking
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oodProcessin
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ubber
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iversified
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ompanies36 comp
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| 26
erenies
6
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4.5Ind
Industry
Auto
Agro
Banking
Brewerie
Castings
Cement
Ceramic
Chemica
Construc
Distilleri
Edible O
Electrica
Enginee
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Food Pr
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ils
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4
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24
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17
ofIPOs
ble 4: Last 5
ofies
O
1
-1
3.
-9
-4
11
-2
1
4.
-1
-4
2
7.
4.
4
-2
-6
-1
3
-7
-1
-1
-1
-3
-1
6
-7
-6
1
1
Years IPO In
p Day 1
.19 -2
0.57 -3
72 6.
.25 -1
2.3 -5
3.26 1
1.82 -2
.59 2
45 0.
7.39 -2
1.01 -5
.29 -1
68 -3
75 1.
.33 6
9.13 -5
.99 -9
.04 -7
.01 31
.41 0.
2.5 -2
2.89 -1
7.23 -2
5.31 -3
4.85 -1
.33 -1
7.01 -7
.15 -9
.51 -2
.09 7.
ustry Wise
Month 6
4.89 -
0.67 -
16 2
1.20 3
7.23 -
5.65 4
6.15 -
.49 8
45 2.
1.44 -
4.34 -
3.71 -
.8 -
61 -1
.33 -
6.09 -
.03 -
.64 3
.95 8.
42 1
6.63 -
3.07 -1
9.31 -
5.05 -
0.77 -
7.5 -
5.96 -
.51 -
7.5 -
64 -1
onths1
5.78 -
.55 -
.32 1
.80 6
6.12 -
.63 -
8.21 -
.2 4
52 -
1.88 -
2.65 -
5.57 -
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8.69 -
3 -
8.35 -
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.4 6
28 1
.35 -
5.38 -
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9.24 8
4.49 -
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Pag
Year C
1.75 -
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9.45 2
6.20 7
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.09 -
.73 5.
7.69 -
3.98 -
2.62 -
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| 27
urrent
1.88
.23
.23
3.95
3.03
1.58
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Printing
Retail
Rubber
Shipping
SteelTelecom
Textiles
Transpo
Diversifi
The abThereIPOs wIT secto
There hChemicirrespecvery hichemicCompadifferentJubilant
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IndustriTeleco
negativcomplet
In the laInstabiliseen th
munications
t
d
ve table sere 240 IPere issuedr (24) and
ave beenls, IT an
tive of timh returnsls, coatinies weretime fra
Food, Gra
struction se as this inarket. Theome returas both in
t returns f. The pattare very
s likemunicatio
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1
1
1
1
96
21
1
16
hows the sOs belongby Constrhen the te
some conDiversifi
, marketmainly dus, dyes,best amones. Someita India &
ector has idustry is hshare prics in initialustries ar
r all mostern in all teager as
Personals were w
en time frg of Paten
many comon, Inflatioheir share
-1
-2
-2
-2
2-1
1.
-8
21
ector-wiseing to 39ction Secttiles indus
istent perd; returnsonditionsto increa
igments,g the lot
of the bAdvanta.
ssued theighly depes in Const6 months.related to
ll the induhe IPOs icompared
Care,orst perfor
mes. Thes & no ne
panies havn & High.
4.77 -5
2.41 -4
6 -3
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6 -3
8.9 -8
.84 1
returns foifferent inor taking ttry (21).
orming inin these
& recessise in thesoaps, cos their rest perfor
most no. odent on mruction secSimilar peach othe
tries weressued in lo short ru
rinting,ming shar
Pharma Iinvention
e becomeorrowing r
8.14 -
5 -
4.29 -
.21 4
04 -13.44 -
.6 1
8.73 -
.84 3
all the IPustries. Ine count to
ustries inindustriesn. The chemand ofmetics &turn wasing comp
f IPOs buarket condtor declinettern was
r.
seen durist 5 yearterm retur
Pharmaces, as thei
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victims ofates, as a
5.58 -
8.15 -
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.34 4
.26 -8.75 -
.05 -
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.86 1
s issuedthe last 535, it was
last 5 yeahave alw
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the returnitions, supd heavily aalso seen
g the Opesuggests
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ticals,r returns
acing dileof Medical
lobal Sloresult the
Pag
5.93 -
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5 3
9.97 -6.05 -
-1
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7.16 7
in last 5 years maxifollowed b
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s were notliers & liqfter 1 yearin the Ce
ing day &that long
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| 28
8.79
7.7
5.29
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ars.umthe
ent,hereivengro-ifiedwithwas
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7/31/2019 A Study on Indian IPO's
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4.6Sec
Sector-
Sector
Public S
Private
The abthere wSector.
The taband Prihave bhas beeat -37.1their sh
orWise
ise Retur
No.Sha
ctor 16
ector 240
ve pie chre 224 IP
le given aate Sectoen constan declining% while are prices.
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Figure 1: Pi
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O
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rt shows tOs issued
ove analyIPOs. Tht over allwith time.
t the same
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.65%
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he dominain this se
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14
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nce of Pritor as co
erage retuearly favos. While tt returns frSector IP
226
rWise
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15.45%
-5.91%
ate Sectopared to
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or IPO's
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at of Publctor IPOsfrom PrivaSector IP
iving retur
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ast 5 yearsued by P
ic Sector Ias their ree Sector Is are vers of 14.05
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| 29
, asublic
POsurnsPOs
lowon
7/31/2019 A Study on Indian IPO's
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The reconsideas highIPOs.
ult of lastred saferas Private
5 yearslesser vol
Sector IP
clearly favatile. Thous but still
ors the Pgh the retuit is not wo
blic Sectrns from Prth the risk
r IPOs aublic Sectinvolved i
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s they car IPOs arPrivate S
| 30
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4.7Co
4.7.1R
The abMarutiMahindon its lisame In
Over neTATArespecti
Howevewhile Tprices.
O
paringR
turnAnal
Table
ve tableuzuki Ltd
a & Mahinting day
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xt one yeaotors andvely, Marut
r after 5 yTA Motorhe current
Time Peri
Previous C
isting Day
ening Day
1 Month P
1 Month Re
6 Month P
6 Month Re
1 Year Pri
1 Year Ret
5 Year Pri
5 Year Ret
Current P
Current Ret
eturnsin
sisofAut
5: Returns fro
nalyzes tIPO was lra was isas 42.61negative
the returnMahindrai Suzuki Lt
ars from i& Mahindsituation o
N
od M
lose
Price
eturns
rice
urns
rice
urns
ice
rns
ice
rns
ice
urns
rimary
mobileCo
m Automobil
e returnsaunchedued in 90
while thon the sam
s have beained lotshare pri
sue Marutra share pf all the thr
w Issue
aruti Suzuki
115
164
42.61%
197.05
71.35%
439.95
282.56%
428.1
272.26%
569.05
394.82%
1289.45
1021.26
arket&
mpaniesi
e Sector in Pr
from the tn July 9,. This shoreturns f
e day.
n very volf grounde improve
i was givinices haveee scrips l
Liste
Ltd TA
econdary
India
imary and Se
op compa2003, whil
s that theom alread
tile for all to as to gid by more
return ofnot shownoks better
Compani
TA Motors
212.75
209.2
-1.67%
245.5
15.39%
466.3
19.17%
415.6
95.34%
404.55
90.15%
301.4
41.66%
Market
condary Mark
ies in aute IPO ofreturn fro
y listed co
he three ce returnsthan 2 fold
395% fromany improthan befor
s on Stoc
M
1
1
-2
1
1
4
14
5
19
5
21
6
30
Pag
et
mobile sATA MotMaruti S
mpanies i
mpanies,f 95% & 1.
its issueements ine as all of
Market
& M
70.9
66.1
.81%
9.65
.82%
23.2
7.63%
10.7
8.82%
34.3
2.63%
87.6
2.34%
| 31
ctor.rs &zukithe
hile99%
rice,theirhem
7/31/2019 A Study on Indian IPO's
32/67
are giviMahind
Thoughover thshows tLtd cle
consist
200.00
0.00
200.00
400.00
600.00
800.00
1000.00
1200.00
g returns,a giving 41
marketsyear pla
he trend orly stands
nt basis.
OpDa
with Maruti% & 302%
Figur
re same fa crucialreturns foout from
aruti & Ma
y 1M
Maru
giving higrespective
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r every crole in ther all the ththe other
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Auto
tiSuzukiLtd
est returnly.
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s the up
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ectorT
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s of more t
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1Year
end
otors
han 1000
s
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M&M
Pag
, while TA
d performe above g, Maruti Sum return
e time fra
Currently
| 32
A &
anceraphzuki
s on
es,
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4.7.2R
Tim
Pre
Listing
OpeR
1 Mo
1 Mon
6 Mo
6 Mon
1 Y
1 Yea
5 Y
5 Yea
Curr
Curre
The ablisted cwas thetimes ragathere
TCS IPissue prby arou16% asday. Hoare givileader b
turnAnal
T
Period
v Close
Day Price
ing Dayturns
nth Price
h Returns
nth Price
h Returns
ar Price
r Returns
ar Price
r Returns
nt Price
t Returns
ve table smpanies ibiggest I
ising arouhuge res
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g returnsy trading a
sisofITC
able 6: Retur
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T
8
98
16.
102
21.
137
61.
132
55.
52
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120
41.
hows thethe sameCompany
d Rs. 350onse in th
ening day50, wheree intra-da
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t Rs. 1322
mpaniesi
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e
S
0
7.5
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8.95
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nalysis ofsector. Tin India,0 crore. E
eir respecti
gave returs the alretrading. I
o compareissue of IP1% respegiving 55
nIndia
tor in Primar
isted Com
Infosys
1562
1535
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1613
3.27%
2162.3
38.43
2271.3
45.41
2096.1
34.19
2391.9
53.13
TCS IPOS IPO was a resultarlier IPOve IPOs.
ns of 16.1dy listed c
t also shothe result
O the situatively fromreturns in
and Second
anies on S
Tec
issued inhighly an
the IPOlike Infos
% as it clompaniess the undof other
tion looksthe issue1 year.
ary Market
ock Market
HCLhnologies
23.85
317
2.12%
348.8
7.70%
326.8
0.91%
425.7
1.45%
307
5.20%
78.05
7.61%
August 20ticipated Ias oversus, Wipro
sed at Rsin the samer-pricingompaniesifferent asate, while
Pag
Wipro
577
565
-2.08%
582.15
0.89%
677.9
17.49
364.35
-36.85
544.5
-5.63%
404.15
-29.96
4 with alrO in 2004scribed bHCL had
. 987.5 frosector de
f TCS scrion the opInfosys &TCS is sti
| 33
eadyas it6.5
also
m itsclinep byningHCLll the
7/31/2019 A Study on Indian IPO's
34/67
In 2009,all the Ibiggest37%, wrespecti
The curgiving tis followthan thcoupleconstan
The ITinvestorthe aboall the c
the modisappo
60
40
20
0
20
40
60
80
, 5 years asector c
loser as itile Wipro
vely.
rent perfore highested by HCother twof years.
tly negativ
sector cos have eare mentionompanies
t consisteinting shar
OpDay
ter the issmpanieshare price
& HCL wa
mance ofreturns as
technologcompanieipro has bduring dif
Fig
mpanies hned hugeed compaare very v
t share gias its ret
1Month
TCS
e of TCSaring Infoplunge donot as v
hese comit share priies which is since theen low perent time
re 3: Line Ch
ave beenmounts bies have blatile in th
ing returnrn was bel
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ITSe
Infosy
IPO & duriys were gn to Rs. 5
latile and
panies in tces increas giving re
issue berforming
frames.
rt of IT Sect
the mostinvesting
een a sucgiven tim
s on regulow zero o
hs 1
torTre
HCLT
ng the gloiving nega28.5 givinheir retur
he year 2ed by mo
turns of 4ause of itcrip in thi
r Companies
profitablein these cessful ovee period.
ar intervalall the oc
ear
d
ech Wi
al slowdotive returnnegative r
s were -5.
12 showse than 50%. TCS relow perfosector as
companiempanies.
r the yearsowever In
while Wiasions.
5Years
ipro
Pag
n the pric. TCS waeturn of ar3% & - 5.
that Infossince 20
turns are lrmance init returns
in Indiahe IPOs
. The trenfosys has
ro has be
Current
| 34
s ofthe
und20%
s is4, it
owerpastere
andof alls foreen
en a
7/31/2019 A Study on Indian IPO's
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4.7.3R
Tim
Pre
Listin
Opening
1 M
1 Mon
6 M
6 Mon
1 Y
1 Ye
5 Y5 Ye
Curr
Curre
The abcompanthe sam
on its lissharesin the st
The reTelecothe coHoweve
turnAnal
Table 7: R
e Period
v Close
Day Price
Day Return
nth Price
th Returns
nth Price
th Returns
ar Price
r Returns
ar Pricer Returns
ent Price
nt Returns
ve tableies like Bhe Industry.
ting day rit issue pri
ock prices
turns bemunicatiopanies exr the situa
sisofTele
turns from T
New I
IdeaCellul
75
85.5
s 14.0
95.4
27.2
122.4
63.2
97.5
30.0
93.925.2
81.6
8.87
nalyzes tarti Airtel,The IDEA
e to Rs. 8ce. Howevof the othe
ame mos compan
cept Bhartiion looks
communic
lecommunic
O
rBha
3
3
3
5 4
1
3
3-
2
-1
e returnsRelianceCellular w
.55 givinger on ther companie
e compaies stocksAirtel weifferent af
ationsCo
tions Sector
Listed C
rti Airtel
1.38
75.1
.80
0.48
.29
3.78
7.27
5.65
.95
38.96.22
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7.52
of New Iommunicaas listed o
14.07% reame days in same
rable aftewere perfe givinger 5 year
paniesin
in Primary an
mpanies o
ReliancCommunic
434.1
422.8
-2.60
415.6
-4.26
544.3
25.39
543.35
25.17
94.75-78.17
65
-85.03
O Ideations & Tn March 0
urns to thot much oindustry.
r 1 yeaorming vigore thanfrom issu
India
d Secondary
n Stock Ma
etions Com
ellular anTA Comm, 2007. T
Investorsf the move
r whenorously in0% retur
e of Idea
Pag
Market
rket
TATAmunication
374.1
368.6
-1.47
408.75
9.26
408
9.06
457.35
22.25
235.95-36.93
210
-43.87
already lunicationse Idea Ce
who bougment was
ll thethe markes after 1ellular IP
| 35
istedfromllular
t theseen
ajort. Allear., as
7/31/2019 A Study on Indian IPO's
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Reliancnegativwas fixethe othe
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The wocompansituatiomajor st
100
80
60
40
20
0
20
40
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80
Commureturns o
d to onlyr compani
ds look si
has beenhroughouties returnReliancepresentati
rst situatioies sharesthe India
ocks are tr
OpDay
icationsf 78.17%s. 75, it ws were str
Figure 4:
milar for a
the most. Howeverercentageommunican of facts.
n for all twere tradiEconomy
ading in th
1Month
Teleco
Id
TATA C36.93 re
s able toggling.
ine Chart of
ll the com
consistentafter 1 Yestarts fallitions due t
he 4 comng at theiris struggliir lowest p
6Mon
munica
ea Airt
ommunicaspectively.ive some
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o 2G Sca
anies walowest levg to stabil
rices.
ths 1
tionsIn
l Relia
ions ranAs the is
returns to i
cations Com
in the giv
all the tims major suring thes
case as t
seen inls in pastize the ma
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dustry
nce TA
into heavyue price fts investor
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e periods,ift in the p5 years s
he compa
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rkets situa
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rend
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, when al. In the cuion, as a r
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| 36
ivingllularn all
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itivell thewas
used
l therrentesult
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4.7.4R
Ti
Pr
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6 M
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e Period
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ar Returns
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cause thahis can alies in Janu
ther indusrom DLFhe initial r
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ns
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41
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nalyzes th007. Man
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ries analynd other c
eturns frowith the ti
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mpact cand down pe
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25
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e returns fIPOs in
phase whied by lomonths a
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is in Amehere wasalso be s
rtaining to
ompanies
n Sector in P
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GMR Infr
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rom the cconstruction construking at thter the lau
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ican Econdecline i
een in Inddeplorable
inIndia
rimary and S
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1
nstructionn sector wtion or ree returnsch of DLF
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ia as majmarket co
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tock Mark
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78.55
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228.4
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83.47
sector aftas launchl estate siven by tIPO.
f a differeike GMR I.58% howmore tha
g other cices of thr construcditions.
Pag
et
et
L&T
1129.
1165.
3.2
1224.
8.3
2122.
87.8
1349.
19.4
118
5.2
r the laund during 2ctor wase constru
ce seen ifra, Punjver the re100% ret
untries ase Construion comp
| 37
8
8
5
2
5
h of007-t its
ction
thelyodurnsrns.
well.ctionnies
7/31/2019 A Study on Indian IPO's
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The abtrend isindividumonthsthan 10
Lloyd alrespecti
The curlowestmaterial
In the loas com
100
50
0
50
100
150
ve chart ssimilar fol companof launch% in just
so gave 1vely.
rent positiossible p
s, increase
ng run theared with t
OpDay
Figur
ows the trr all the cies. For alof DLF IP
months, t
07% retur
n for all tices. Thein interest
e was nothe compa
1M
Trends
DLF
5: Line char
ends in froompaniesl the com. This wa
he same t
s, followe
e companmajor rearate & low
much of aies in sec
onth
inCons
GMRIn
of Construct
m Construand no manies the
s the timeend was a
by L&T
ies looksson behinliquidity in
differencendary mar
6Months
ruction
fra Pu
ion Compani
ction Comajor deviabest perfperiod whlso seen i
and GMR
orse as tthis is i
market.
seen in thket.
1Y
Compa
jLlyod
s
anies in laion has brming phan DLF retother co
with 87%
ey are allncrease in
returns fr
ar
nies
L&T
Pag
st 5 years.een seense was afurns waspanies as
& 61% re
trading atprices of
m a new i
Current
| 38
Thefromer 6ore
Punj
urns
theirraw
ssue
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4.7.5R
Tim
Pre
Listin
Opening
1 M
1 Mon
6 M
6 Mon
1 Y
1 Ye
5 Y
5 Ye
Curr
Curre
The abis Yesand Axcalculat
As seegivingforthcoback 74any maBank.
Howevein Banki
turnAnal
Tabl
e Period
v Close
Day Price
Day Return
nth Price
th Returns
nth Price
th Returns
ar Price
r Returns
ar Price
r Returns
ent Price
nt Returns
ve table dank whos
is Bank ad from Jul
in earlier0% returning year a
.89% to insive incre
r after yeang Sector
sisofBan
e 9: Returns f
New Is
Yes B
45
58.
s 30.0
71.5
59.0
74.2
65.0
78.
74.8
285.
534.
319.
610.
picts the rIPO was
re the stoy 13, 2005
companieon its is
s the stocvestors onse in their
s Yes Banare flourish
ingComp
rom Banking
ue List
ank I
0
5
0
5
0
9
5
3
7
4
eturns frolaunchedcks tradinwhen Yes
s, the opeue price.price kepttheir inveprices and
k IPO, situing as thei
aniesinIn
Sector in Pri
ed Compa
ICI Bank
424.45
445.95
5.07
504.7
18.91
583.9
37.57
496.1
16.88
898.6
111.71
795.7
87.47
Bankingn July 13,
in theBank IPO
ning day rThe samon risingtment. Hotheir retur
ation looksr returns h
dia
ary and Sec
ies on Sto
HDFC B
131.5
128.8
-2.01
131.6
0.08
146.3
11.31
149.4
13.63
413.0
214.0
487
270.2
ector in I2005 whilecondaryas listed.
eturns watrend w
nd after 1wever thes were ve
more desive excee
ndary Marke
k Market
nk Axi
2
3
1
1
3
2
dia. The NHDFC B
Market. T
very higs seen foyear the sother bany low as c
rable as alled many ti
Pag
s Bank
268
66.1
0.71
60.85
2.67
17.25
8.38
73.1
1.90
00.10
85.11
63.8
59.63
ew Issuenk, ICICI
he returns
for Yesr Yes Batock was gs did notmpared to
the compmes their i
| 39
tockankare
ankk inivinghowYes
niesnitial
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7/31/2019 A Study on Indian IPO's
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4.8An
The purwas toinvestin
From thConstruthat invMarket.
For all tprice risinvestoritself. D
returnsstill the
Howeverecoverbefore.is neithTelecoit has bSector tas thescompan
On theIndustriRun &the com
lysis&Di
pose of asee that
in some
e results sction Industing in P
he major ies to 50%s can earnring initial
as in Primeturns we
r in long Rwell ands now du
er underpmunicatiocome eq
he IPO hae compaies.
basis ofs that invhort Run.panies. As
scussion
alyzing allhether invther comp
own in abtry, Telecimary Mar
ndustries tof the issuhuge am
six month
ry Market.e always h
un i.e. aftelso the cto marke
riced nors & Constivalent toe alwaysies retur
n overallsting in anHowever ta result thi
fPrimar
the aboveesting in aany in sam
ve tablesmmunicatiket has be
at have bprice with
unt by invcompanie
Though sigher in Ne
r 1 year, smpany inforces th
overpricedruction Se
econdaryad an eds have a
understanIPO has be returnss inferenc
&Secon
Companin IPO ine industry i
of Five Indons Industen more p
een analyin 6 monthesting duris in Secon
ome compw Issue M
cenario loIPO markcompany
. As a retor the retMarket Re over itslways be
ing it haseen morelso depencannot be
aryMar
s in Primrimary M
n Seconda
ustrys i.e.ry & Bankrofitable th
ed it hass of the lang subscriary Mark
anies havrket.
ks little difet showshas startesult it harns of IPOturns. Butontemporn greater
been fourofitable f
d upon thegeneraliz
et
ry and Serket morery Market.
Auto Induing industran investin
been founnch of an Iption or ont struggled
performe
erent as omore reali
to tradebeen s
has declinin Auto Sries in Sethan the
nd from tr an investindividuald for all th
Pag
ondary Mprofitable
try, IT Indwe foun
g in Seco
that thePO. As a rthe listingto give as
really wel
her comptic pricesn the priceen that ie after 1 yctor & Baondary Malready l
e aboveor both inperforman
IPOs.
| 41
rketthan
stry,out
dary
tockesultday
high
l but
niesthanthatIT,
ar &kingrket
isted
ivenonge of
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020
40
60
80
Prima
5.1Sur
Out ofmales.
Ag
1
3
Figur
igure 9: Gra
yDataA
eyResul
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9
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7: Pie Chart
h of differen
nalysis
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re female
leSize
10
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2635Year
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of total samp
age groups
CH
sis
s and 67
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4
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ears
le size
f Sample Siz
PTER
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are
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l responde
maximu
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2
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nts are 90.
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6
Gen
hart of Gende
Pag
ndents
years, as
er
r Distribution
| 42
ere
most
Male
Female
of Sample
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5.2Cro
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BetMo
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5.2.1A
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ss Than aeen 1 to
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Grand To
ss tabulatien investin
ly the resndents wfor last 5
ents who
esult show
prefer to iost all thprefer Pury Data cnsistent re
ht be a fsistent pe
er in Privat
plyingChi
erience in
erience in I
ionofEx
10: Cross Ta
rred Secto
sting
YearYears
0 YearsYears
tal
n links twg & the se
ondents wo have styears, 8 are investin
s that out
nvest theirresponde
lic Sectorollected wturns at dif
ctor that prformancee Sector I
SquareTe
Investing I
Investing I
eriencei
ulation of Ex
rPublicIPO
22
1
5
importanttor preferr
ere betwerted invese investin
g for more
f 90 respo
money innts irrespIPO to inich showerent time
eople havand lesserOs but th
stof
Inde
PO is inde
O is depe
nInvesti
perience in In
SectorI
35
3
results ofd by an in
n the ageing a yearfor more
than 10 ye
ndents 53
rivate Secctive of test. Thisd that in lfra