Performance of Ipo

The equity market, although heavily depressed since 2007, provided a much needed safety valve to shift financing away from debt to equity, especially considering the underdeveloped

In order to succeed in any business, it is extremely important to understand the stock market. In this assignment we were asked to follow the stock market continuously for four months and understand the market. The stock market is a global marketplace, where goods and services are traded in the form of equities.

The first facet of determining IPO pricing, is understanding rates of growth, both in real and nominal terms, is imperative in

* Capital raised in an IPO can be used to pay off debt and thus reduce the interest costs and enhance the company’s debt to equity ratio

* Analyze the factors that influence investment decisions at different stages in an investor’s life cycle, and make a recommendation at which stage the average investor should consider financial investments. Provide support for your recommendation.

Major stock market indices globally are trading near the high levels of 2007-2008. Some countries like India have surpassed the previous highs of 2008, and are trading comfortably higher (^BSE, Jan 2008: 20,000 approx.; May 2016: 25,000

It would be advisable for such a company to generate expansion funds by going public since this increases the equity ratio and reduces the debt and liquidity ratios (Alrafadi, & Md-Yusuf, 2011).

in the five-day period surrounding the expiration of the quiet period of 1.64% and a significantly

(1) According to the case, global IPO activity during the first quarter of 2012 fell to $14.3 billion, which was dramatically down from $46.6 billion during the first quarter of 2011. In addition, we can see in Exhibit 5 that IPO activity in US have dropped sharply since the second quarter of 2011. Number of deals dropped from 383 in the second quarter of 2011 to 157 in the first quarter of 2012.

public offering (IPO). Fundraising recovered from 2002’s nadir of $12 billion, but comparisons to the

An initial public offering is the decision by a company to sell its stock to the public for the first time. In some cases, this process is described as a transaction with which an investment banking company generates investment capital though making the company to go public. One of the most critical aspects within an initial public offering is significant public interest because investment bankers generate huge fees depending on the amount of capital raised. Consequently, the interest of investment bankers is usually attracted by large or well-recognized companies. Initial public offerings are sometimes characterized with huge gains on the first day but they tend to flop when the financial market is cold.

The Bank went on to cross-sell and up-sell its products aggressively, growing into India’s second largest bank. But ICICI was not only looking at banking. In 1993, the company set-up ICICI Securities and Finance Company Limited in a joint venture with JP Morgan, and the same year, it set up ICICI Asset Management Company. This was the just the beginning; several mergers, acquisitions and joint ventures followed

The global financial crisis of 2008 was the most severe financial crisis that the world had experienced since The Great Depression of 1930s. Due to the recession, the Foreign Institutional Investors (FII’s) had disinvested in the Indian market to meet their commitments abroad. This had lead to an increase in the supply of shares in the stock market without a similar rise in demand to offset it. The present study is aimed at showing that this lack of demand for shares in the stock market is one of the reasons for the stock prices to fluctuate in India. In India

An interesting feature of IPO markets is that they are very sensitive to stock market conditions. IPO volume soars following bull markets and contracts during bear markets. This means that IPO activity exhibits waves in tandem with stock market cycles. The organic link between the level of IPO activity and market conditions is strong. In the US, there were almost 1,000 IPOs during the dot-com boom years of 1999-2000, whereas there were less than 150 IPOs in 2001 after the internet bubble burst and less than 60 IPOs in 2008 when the financial crisis hit.

The Earth is a closed system with finite resources which can be utilized; However polarized views of the limit in the functional availability of non-renewable resources exist between the Cornucopians and Neo-Malthusians. Regardless of the disparity between the views of the Cornucopians and Neo-Malthusians, both ideologies are valid in their rationalization and their arguments are augmented with strong supporting arguments drawn from historical facts. Despite arguments being drawn from a shared history the Cornucopians and Neo-Malthusians have developed conflicting views that share no commonalities. In essence the Cornucopians may be described as optimist or idealists whereas the Neo-Malthusians would be considered pessimists or realists.