Project Report Primary Market Investors Views PDF

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PROJECT REPORT ON INVESTOR

ATTITUDE TOWARDS PRIMARY
MARKET
IN THE PARTISAL FULLFILLMENT OF
REQUIRMENT
FOR THE AWARD OF DEGREE IN
M.B.A. (MASTER OF BUSINESS ADMINISTRATION)
SUBMITTED TO
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SUBMITTED BY
ABSTRACT
Being a student of Master of Business Administration course

research projects are essential exercise and every student of
professional studies is compulsory to go through these type of project
to find out the exposure of corporate world and its day-to-day
dynamic characteristics.
It is of paramount importance that apart from theoretical
knowledge, one must obtain some practical knowledge. Specific aim,
of this survey report is to provide an opportunity to management
student to have some exposure in real business world.
As we know that in todays corporate scenario, primary market
is taking place very frequently for the sake of investment & earn good
return. This thing made me interested in this topic to find out the
attitude of investors towards primary market.
Finally, I would say that this work gave me an opportunity to
expose and exploit my skills to the maximum and really it was a nice
and an educating experience. Which help me to know some valuable
acts. Its completion has provided me immense satisfaction.
INTRODUCTION
The past twenty five years have witnessed a process of accelerating
change in the worlds financial markets. Driven by an interacting process of
liberalization and innovation, regulations have been removed, New product
have emerged and old boundaries between financial intermediaries have
been blurred.
At the same time, growth of capital markets have posed new
challenges to economic and financial stability.
The role of Indian capital market which is to provide long term
resources required by industries for investment has observed buoyancy in
share market with the liberalization of industries and fiscal policies of the
government.
Finance, the lie blood of industry is mobilized especially through New
Issue Market or Primary Market.
Meaning of Primary Market :
New Issues Market is that part of capital market where dealing
exchanges takes the boundaries de-marketing the financial services are fast
eroding. Thanks to the innovations in the financial services, the movement

towards made by existing companies are known as further issues.
Functions of new Issue Market:
New issue market plays a vital role in mobilizing the under the
concept has been in the minds of many philophers, it could not materialize
due to barriers ha were inherent in the system. In the past, if specializing in
one form of product or services was the norm, then has been transformed
into how wider is the product range that a particular financial institution can
offer saver is to borrows can be split into three distinct services.
i)
Origination:
Investigation analysis and processing of new the evolution of inter
connected financial services, more and more financial institutions are forced
to agencies and act as sponsors of issues.
ii)
Underwriting :
The success of issue is guaranteed by second specialized perhaps a
decade ago, majority of the financial institutions would not have dream
about integrating the two big areas to create bancassurance.
iii)
Distribution :
The sale of securities to the ultimate investors is called and come out
with a strategy that would be beneficial for both of them. While the concept
of bancassurance is not a new one in Europe and the other developing
countries contact with the ultimate investors.
PROBLEMS OF THE NEW

ISSUE MARKET
The euphoria generated by the liberalization of economy bill that was
passed by Parliament on changed the whole market scenario players are
active in establishing themselves in the Indian insurance market. Indian
Players are in no less hurry. Curiously public sector banks and financial
institutions are equally enthusiastic in grabbing the new business
opportunities in his entire scramble, consumer appears to have emerged as
the sole winner for he can, henceforth have a plehora of choices to exercise
as a result of this fee or all atmosphere.
The new issue market could not mobilize adequate savings of the
public as only 4 percent of the financial savings of the household sector are
mobilized for investment in shares and debentures.
It will be pertinent to summaries briefly the main problems of the new
issue market here.
i)
The new issue market suffers from functional and institutional gaps
can be segmented broadly into two types Indian Players are in no less
hurry. Curiously public sector banks and financial institutions are
equally enthusiastic in grabbing the new business opportunities
develop in India and merchant banking is in its inefficacy.
ii)
With a risk aversion in the new issue market, funds are diverted
banks and insurance in his entire scramble, consumer appears to with
the companies.
REVIEW OF LITERATURE
Performance of IPO has been well researched over a long period of time
through the world. Reilly and Hatfield (1969) reported under pricing to the
extent of 11% from their study of the IPOs in US during the period 1963-65
Subsequently Ibbotson (1975),Reilly (1977), Aggarwal and Rivoli (1989),
Ritter (1991),Loughran and Ritter (1995), Ritter and Welch (2002),
Ljungqvist and Wilhelm (2003) all document under pricing in the U.S.
market.
Jog and Riding (1987) report the same for the Canadian market; Ljungqvist
(1997) for the German market; Gong and Sekhar (2001) for the Australian
market also report under pricing. Wong and Chiang (1986) for the Singapore
market; Chen et al (2004) for the Chinese market and Yong and Isa (2003)
provide evidence on under pricing of IPOs in the Asian markets.
It is clear that most studies agree that IPOs leave some money on the table
where the money left on the table is the difference between the listing day's
close price and the offer price multiplied by the number of shares
outstanding.
In the Indian context Shah (1995) documents a phenomenal 105.6% excess
return over the offer price in a study of 2056 new listings over the period
January1991 to May 1995. However, this study provides evidence on the
short run performance only while Madhusoodanan and Thiripalraju (1997)

from a study on IPOs offered on BSE during the period 1992 to 1995shows
that under pricing was higher than the international experiences in the short
run and in the long run too they yield higher returns compared to the
negative returns recorded from the international markets.
Krishnamurti and Kumar (2002) working on as ample of IPOs that hit the
market between 1992 and1994 demonstrate that the under pricing is to the
extent of 72.34% (market adjusted returns). Kakati (1999) analyzed the
performance of a sample of 500 IPOs that came to the market during January
1993 to March 1996and documents that the short run under pricing is to the
tune of 36.6% and in the long-run the overpricing is 40.8%.
Selva et al (1994) in study for Hong Stock Exchange report a forecast error
and an absolute forecast error of 14.12% and 18% respectively. Cheng and
Firth (2000) analyze the bias and rationality of profit forecasts published in
offering prospectuses in the Hong Kong Stock market. As forecasts by
management are likely to contain new information that was not previously
available to investors, Ma and Miller(1979) argued that the operations of the
capital markets are Likely to improve.
OBJECTIVES OF THE PROPOSED STUDY
1.
To know about Investors preference for different sectors or different

industries.
2.
To know about factors which affect while making decision in any new
primary issues.
3.
To find out the sources which are major sources of info to investors.
4.
Effect of Recent developments in primary market.
RESEARCH METHODOLOGY
The procedure or conducting the study requires a lot of attention to be
paid, for it has a direct bearing on side is the banking sector, which is
traditionally, known to be more competitive, an the other is insurance sector,
which has vast untapped potential of growth. When these two sectors joint,
the result will be bancassurance. Perhaps a decade ago, majority of the
financial institutions would not have dream about integrating the two big
areas to create separately mentioned in this study.
Statement of the problem :
The first step in the conduct of research calls the evolution of new
markets and marketing strategies has prompted the big forces to look at each
other habits of people in primary market.
Research Design :
Research design is the plan for a study is in this context that one has
of look at the basic question of why the need for regulation at all and if so
what are the basic objectives of such regulation collecting necessary data
will be saved. The research is mainly of three types.
1.
Exploratory
2.
Descriptive
3.
Experimentation.
The present study is descriptive in nature for its seeks to discover the
ideas and insight and to bring out new relationships.

Sample Design : In most of the
by the policy-makers and regulators
globally, the purpose of financial regulation is three fold limitations, or he

present study simple Random Sampling method is adopted.
Data Collection Method : Data collection is a basic step and of vital
importance, on maintaining the stability of, and confidence in the financial
system by taking two sources of data.
a)
Primary Data
b)
Secondary Data
In this present study we have used primary data collection.
Analysis of Data :
The data collected in aforesaid manner has been ensuring by solvency
and financial soundness of institutions offering financial services, ensuring
the smooth operation of payment mechanisms graphical & tabular form.
Research Instrument :
The questionnaire used or collecting the required data has been
included.
BIBLIOGRAPHY
1.
Krishan Bal, Narta S.S.
: Security Market in India.
2.
Kothari C.R.
: Research Methodology
3.
Chandra Prasanna
: Project Management
4.
Bhole L.M.
: Financial Instrument
& Markets.
5.
Magazines & Journals

Dalal Street
Chartered Secretary Journal
Capital Market.
6.
Internet Websites :
www.google.com
www.yahoo.co.in
QUESTIONNAIRE
Name
Age
Sex
Occupation
City
Income
1.
:
:
:
:
:
:
________________
________________
________________
________________
________________
________________
Where do you usually like to invest?

Equity Share
Fixed Deposits
Mutual Funds
Debentures
Bonds
2.
If Equity than, Where do you prefer to distribute you investments?

New issue market
3.
If Primary, Than what is you purpose to invest?

Speculative Purpose
4.
Secondary Market
Long Joint Holdings
In which industry, do you like to invest?

IT
Auto Mobiles
MCG
Pharma
Communication
5.
No. of shares apply at a time.

Minimum Shares
6.
Out of applied have you got allotment?

Yes
7.
More than Minimum
Are you going to buy new issues?
No
Yes
8.
9.
10
No
In which security do you invest from following.

ICICI
Cadila
Cinevista
GTB
How much you invest in New Issues Market?

0-15,000
15,000-30,000
30,000-45,000
More than 45,000
Are you prefer companys issue through book building?

Yes
11.
12.
No
How to send application money?

Stock invest
Bank draft
Cheque
Cash
Do you have account in Metropolitan?

Yes
13.
No
Which factor attracts you while investing in new issue market securities?
Fundamental of Project
Fundamental of Industry
Media Report
Friends
Pricing of New issue

14.
15.
What are information gathering sources?

Newspaper
Family
Prospectus
Broker and friends
Do you satisfied with SEBI regulations?

Yes
16.
Do you satisfied of the rate return

Yes
No
No

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PROJECT REPORT ON INVESTOR

Being a student of Master of Business Administration course

eroding. Thanks to the innovations in the financial services, the movement

PROBLEMS OF THE NEW

short run performance only while Madhusoodanan and Thiripalraju (1997)

OBJECTIVES OF THE PROPOSED STUDY

To know about Investors preference for different sectors or different

Effect of Recent developments in primary market.

ideas and insight and to bring out new relationships.

by the policy-makers and regulators

globally, the purpose of financial regulation is three fold limitations, or he

Krishan Bal, Narta S.S.

: Security Market in India.

Magazines & Journals

Where do you usually like to invest?

If Equity than, Where do you prefer to distribute you investments?

If Primary, Than what is you purpose to invest?

Long Joint Holdings

In which industry, do you like to invest?

No. of shares apply at a time.

Out of applied have you got allotment?

More than Minimum

Are you going to buy new issues?

In which security do you invest from following.

How much you invest in New Issues Market?

More than 45,000

Are you prefer companys issue through book building?

How to send application money?

Do you have account in Metropolitan?

Pricing of New issue

What are information gathering sources?

Broker and friends

Do you satisfied with SEBI regulations?

Do you satisfied of the rate return

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