Investment Banking

Unit-3: Public Issue Management

3. 6: Analysis of Offer Document, IPO Grading, Final Pricing and Investment Decision
Group project-----Case Study: Tijaria Polypipes Ltd.
FMG 23
Maximum Marks: 100..Submission: February 16, 2016
Weightage: 20%
A. This case study is in continuation to the case study on uniform basis of justification of issue
pricing of IPO of Tijaria Polypipes Ltd. (TPL) which opened on 27th September, 2011 with
a public offer of 1, 00, 00,000 equity shares of Rs.10 each at a price of Rs.60/- each
aggregating to Rs.6000.00 lacs. The case was covered in unit 3.5.
B. Download the final offer document of the company from SEBIs website.
C. Learning Objectives
1. To examine the eligibility of a company to float the issue as per SEBI norms.
2. To have a broad view of the contents of the offer document and to continue to learn the
disclosure norms prescribed by the SEBI for providing information in the offer document to
enable the prospective investors take a well-informed investment decision.
3. To analyze the offer document and the IPO grading/Research report and put valuation on the
companys share after taking into account the qualitative factors.
4. To review the valuation in the light of the price behaviour in the stock market on and after listing.
5. To compare the price performance of the IPO vis--vis BSE Sensex/BSE 500/BSE IPO index.
D. Analysis Required
1. Determine the eligibility of Tijaria Polypipes Ltd. to float IPO as per the present day
SEBI norms.
2. Continue to analyze and evaluate the case in the light of other information available in the
prospectus/IPO grading/research report, review your pricing decision (in unit 3.5) and finally
determine what the price should be? Be brief and to the point.
Page 1 of 2, Investment Banking, FMG 23, Group Project: Tijaria Polypipes Ltd. - Analysis of Offer Document, IPO Grading, Final Pricing and
Investment Decision, Developed by Dr. Ambrish Gupta.

3. Prepare the statement of justification of premium determined by you as per the SEBI norms.
Show all the supporting quantitative information /statements as well. Give qualitative factors as
well in bullet points. Suggest what further disclosures you would like to be included in the
statement and why. Do include them.

And, only after having carried out the above analysis:

E. Further Analysis Required
1. Track the share prices of the company from the websites of BSE/NSE. Find out whether your
judgment led to gains or losses to the investors. Calculate the total gain/loss to the investors as on
listing, after one year of listing, after two years and as on date.
2. Calculate the total gain/loss to the investors as on listing and as on date in relation to the actual
issue price.
3. Compare the price behavior of TPL with the BSE Sensex/BSE 500/ BSE IPO index. Analyze
and opine which comparison is the best.
F. State what you have learnt through this case.
.

Page 2 of 2, Investment Banking, FMG 23, Group Project: Tijaria Polypipes Ltd. - Analysis of Offer Document, IPO Grading, Final Pricing and
Investment Decision, Developed by Dr. Ambrish Gupta.