Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Spring time returns for IPOs - Views on News from Equitymaster
  • E-MAIL
  • A  A  A
  • Jul 31, 2009

    Spring time returns for IPOs

    With Indian stock markets emerging as one of the best performers in 2009, more and more companies are being emboldened to come out with IPO issues. More so after the success of two big IPOs viz. Mahindra Holidays and Adani Power. As per a leading business daily, in order to fuel their huge expansion plans, IPOs worth Rs 160 bn are being lined up by India Inc for the remainder of the fiscal. It goes without saying that a bulk of the fund raising, Rs 100 bn to be precise, will come from companies from the infrastructure space in the sphere of power, shipping, energy and construction.

    Infact, there could be quite a few names that would be familiar to investors what with the global financial crisis scuttling their previous plans. But now with money once again finding its way into risky asset classes such as equities, companies are making a dash for the IPO markets in a bid to take their businesses to the next level of growth. However, before making a beeline for the same, it would be sensible if investors take a hard look at the fundamentals of the company that is seeking to raise capital. A proven track record should be a pre-requisite especially with complex and large gestation projects such as power and above all, valuations should make sense. Please bear in mind that IPOs like equity investing should be viewed as a platform to earn returns from a long-term perspective and not for making listing gains.

    IMF Chief says recovery not possible in 2009
    So, the stockmarkets globally have been rallying and corporate results are not as bad as they were last year. Does that mean that a recovery is around the corner? The MD of IMF Dominique Strauss-Kahn believes otherwise and is of the opinion that 2009 will still remain a bad year. What's more, he believes that unemployment will continue to pose a problem even when the economy has recovered. So those who were looking for a quick recovery will have to brace themselves for a disappointment. Strauss-Kahn does not have a soft corner for the investment banks and has left no stone unturned in labeling the bonuses that they have received as 'scandalous'.

    Also, while the dollar's status as the world currency has been questioned in recent times, he believes that since the US is still the most powerful economy, dislodging the dollar from its position is not something that the IMF chief envisages in the near future at least. And he is not the only one harboring the opinion. A lot of experts have toed the same line observing that unless an economy emerges that challenges US economic size, dollar would be difficult to remove from its pedestal, its trillion dollar deficits notwithstanding.



    Equitymaster requests your view! Post a comment on "Spring time returns for IPOs". Click here!


    More Views on News

    How to Ride Alongside India's Best Fund Managers (The 5 Minute Wrapup)

    Jun 10, 2017

    Forty Indian investing gurus, as worthy of imitation as the legendary Peter Lynch, can help you get rich in the stock market.

    You've Heard of Timeless Books... Ever Heard of Timeless Stocks? (The 5 Minute Wrapup)

    Aug 19, 2017

    Ever heard of Lindy Effect? Find out how you can use it to pick timeless stocks.

    Why NOW Is the WORST Time for Index Investing (The 5 Minute Wrapup)

    Aug 18, 2017

    Buying the index now will hardly help make money in stocks even in ten years.

    Trump Takes a Beating (Vivek Kaul's Diary)

    Aug 18, 2017

    Donald J Trump, a wrasslin' fan, took a 'Holy Sh*t!' blow on Tuesday.

    How To Read Your Mutual Fund Account Statement Correctly (Outside View)

    Aug 17, 2017

    PersonalFN simplifies the mutual fund account statement for you.

    More Views on News

    Most Popular

    Demonetisation Barely Made Any Difference to Tax Collections(Vivek Kaul's Diary)

    Aug 7, 2017

    The data tells us quite a different story from the one the government is trying to project.

    A 'Backdoor' to Multibaggers: It's Like Investing in Asian Paints Ten Years Ago(The 5 Minute Wrapup)

    Aug 10, 2017

    Don't miss these proxy bets on growing companies or in a few years you will be looking back with regret.

    Should You Invest In Bharat-22 ETF? Know Here...(Outside View)

    Aug 8, 2017

    Bharat-22 is one of the most diverse ETFs offered so far by the Government. Know here if you should invest...

    Signs of Life in the India VIX(Daily Profit Hunter)

    Aug 12, 2017

    The India VIX is up 36% in the last week. Fear has gone up but is still low by historical standards.

    7 Financial Gifts For Your Sister This Raksha Bandhan(Outside View)

    Aug 7, 2017

    Raksha Bandhan signifies the brother-sister bond. Here are 7 thoughtful financial gifts for sisters...

    Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
    Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.

    LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.

    SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.

    Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
    Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407

    Become A Smarter Investor In
    Just 5 Minutes

    Multibagger Stocks Guide 2017
    Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
    We will never sell or rent your email id.
    Please read our Terms


    Aug 18, 2017 (Close)