IMPACT OF IPO/FPO’s PERFORMANCE IN INDIAN CAPITAL MARKET
Major Research Project on “IMPACT OF IPO/FPO’s PERFORMANCE IN INDIAN CAPITAL MARKET.”
Supervised By - Submitted By -
Prof. Dr Mitchell Bharadwaj Ashish Gupta MBA 1st Year(2nd SEM)
CONTENT
S.NO.
TOPIC
PAGE NO.
1.
Introduction
3-4
2.
Method of Pricing of IPO/FPO in India
4
3.
Literature Review
5-7
4.
Rationale of study
8
5.
Objectives
9
6.
Research Methodology
10
7.
Bibliography
11-12
INTRODUCTION Financial capital is one of the most important components of a business. The need for financial capital grows with a growth in the business. At a certain stage, it becomes imperative to raise a large amount of financial capital to expand and sustain the business, and at an affordable cost to the company. An IPO – an acronym for Initial Public Offer – is one of the most popular methods of raising money from the general public and investors.
IPO DEFINITION
An initial public offer, as the name indicates, is the first (initial) instance of a company (called the issuer) offering its commons stock (or shares) to the general public for subscription.
It is a common misconception that only newly formed companies resort to raising money through an IPO. Even long established private companies can access the IPO route to raise capital, and become publicly traded companies as a result. An IPO is considered as a “rite of passage” into the big league of publicly traded stocks. Any company that needs to be listed on a stock exchange has to offer its shares to the public.
In addition to IPO, an already listed and publicly traded company may issue an FPO Follow on Public Offer – to raise further
Supervised By - Submitted By -
Prof. Dr Mitchell Bharadwaj Ashish Gupta MBA 1st Year(2nd SEM)
CONTENT
S.NO.
TOPIC
PAGE NO.
1.
Introduction
3-4
2.
Method of Pricing of IPO/FPO in India
4
3.
Literature Review
5-7
4.
Rationale of study
8
5.
Objectives
9
6.
Research Methodology
10
7.
Bibliography
11-12
INTRODUCTION Financial capital is one of the most important components of a business. The need for financial capital grows with a growth in the business. At a certain stage, it becomes imperative to raise a large amount of financial capital to expand and sustain the business, and at an affordable cost to the company. An IPO – an acronym for Initial Public Offer – is one of the most popular methods of raising money from the general public and investors.
IPO DEFINITION
An initial public offer, as the name indicates, is the first (initial) instance of a company (called the issuer) offering its commons stock (or shares) to the general public for subscription.
It is a common misconception that only newly formed companies resort to raising money through an IPO. Even long established private companies can access the IPO route to raise capital, and become publicly traded companies as a result. An IPO is considered as a “rite of passage” into the big league of publicly traded stocks. Any company that needs to be listed on a stock exchange has to offer its shares to the public.
In addition to IPO, an already listed and publicly traded company may issue an FPO Follow on Public Offer – to raise further
Bibliography: RECENT VIEW OF SEBI(OVERPRICING OF IPO) (SOURCE- THE ECONOMIC TIMES, 1 MAY 2011) 2. Jason Draho (2004) The IPO decision: “why and how companies go public” 3 4. Aggarwal R. K., Krigman and Womack (2002), “Strategic IPO underpricing information momentum and lockup expiration selling” Journal of Financial Economics, 66, 105-137. 5. Hunger, Adrian (2003) “Market Segmentation and IPO-Underpricing: The German Experience” Working Paper, Ludwig-Maximilians-Universität München, Institut für Kapitalmarktforschung und Finanzierung, February. 6. Jegadeesh Narasimhan, Mark Weinstein, Ivo Welch (1993): “An empirical investigation of IPO returns and subsequent equity offerings”, Journal of Financial Economics, 34, 153-75. 7. Kunz, R.M. and Aggarwal, R. (1994), “Why initial public offerings are Underpriced: Evidence from Switzerland”, Journal of Banking and Finance, 705-723. 8. Levis, M. (1995) “Seasoned equity offerings and the short and long –run performance of Initial public offerings in the UK”, European financial Management, 1,125-146. 9. Madhusoodan, T. P. and Thiripalraju M. (1997): “Under pricing in initial public offerings: The Indian evidence”, Vikalpa, 22, 17-30.