ANALYSIS OF PUBLIC ISSUES

Vivaswan Pathak29/7/2012

What are public issues

• Simply , issue of stock for sale to the public.

Intermediaries Merchant BankerUnderwriter

BankerRegistrarBrokers

Stock ExchangeSEBI

• Coal India 1

• Reliance Power2

• ONGC3

Biggest IPO’s in India

Analysis of select companies

• Coal India• Reliance Power• Reliance Petroleum• Tata Steel• Engineers India • ONGC

CRITICAL ANALYSIS

Book Building Method

Book Building refers to the collection of bids from investors, based on a floor price, which is indicated before the opening of the bidding process. The issue price is fixed after the bid closing date.The process is undertaken by the underwriter.

Price band in the book building process refers to the band within which the investors can bid. The spread between the floor and the cap of the price band

should not be more than 20%

Summary

• The book-building process , though effective has some limitations , it is not perfect.

• The investment in any public issue should be done by after thorough analysis of the ipo rating and company fundamentals.

• FPO and IPO are not the only way of raising money , but they are the only methods by raising from common man ( retail investors)

Resources

• Investopediawww.investopedia.com

• The Indian Financial System , Markets , Institutions and Services by Bharati V. Pathak

THANK YOU