Performance of Ipo

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EXECUTIVE SUMMARY Towards the fulfillment of project program, a study was conducted at Stock Holding Corporation of India Ltd., Bangalore. The corporate exposure learning program involved in the study of Investors Perception on IPO’s and to analyze the selected IPO’s in the year 2006. Among various modes of raising fresh capital, the equity issue started gaining momentum in India during early 1980’s. It reached the peak during early 1990’s. Many companies made public issue during the year 2006. These companies raised funds by placing a high premium on the issue. Today most of these companies are trading not up to the expectation. The main objective of this study is to know the perception of the investors investing…show more content…
And this year could be a record-buster, according to market watchers.

One reason is the Bombay Stock Exchange 's benchmark Sensex Index, which delivered a nearly 50% return last year and is up about 2.2% so far in 2007. In all, some 150 companies will list this year and raise an estimated $10 billion, according to Delhi-based Prime Database, which tracks IPO activity. Encouraged by the general investor enthusiasm for new issues—not to mention an economy expected to hit a growth rate of almost 10% in 2007—more than 30 companies have already filed or received approval from the Securities and Exchange Board of India to raise $6.3 billion.

Last year 's IPO activity, even with a market crash in the Sensex in late spring, was extremely robust despite worries by some that the Indian stock rally had run its course. Yet when stock prices resumed their march upward later in the year,
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