What’s going on with Indian IPOs? Poor demand, increased competition for retail investment or bad news from companies that went before?
Whatever the reason, fundraising via initial public offerings in the 2012-13 year has been rather flat in India. Companies raised just over Rs60bn ($1.1bn) via IPO in the fiscal year just ended – that’s an increase of only 4 per cent year-on-year, according to stock exchange data seen by the Press Trust of India. Read more
A new alliance in the fast-moving world of stock exchange partnerships: the venerable Bombay Stock Exchange (BSE) has teamed up S&P Dow Jones Indices – and is marking the deal by giving its indices the prefix S&P. Read more
The MCX-SX. Is it a dangerous chemical compound? A state of the art camera? Or a new type of heavy artillery? No, it’s India’s new stock exchange.
Beyond its slight tongue-twister of a name, though, will the MCX-SX offer anything of value? Read more
India’s SKS Microfinance fell as much as 14 per cent in early trading on Tuesday after the Bombay Stock Exchange relegated 74 companies to trade-to-trade settlement, a regulatory procedure that requires buyers and sellers to settle the trade after each transaction.
Analysts said the stocks had dropped because trade-to-trade settlement slowed down a stock’s trading momentum because each trade has to be individually settled. It is also a way for the exchanges to keep an eye on stocks whose volatility they suspect may have been manipulated. Read more
Following in the footsteps of the upstart rival Multi Commodity Exchange, the Bombay Stock Exchange – Asia’s oldest bourse – plans an IPO next year.
The bourse’s listing will be the first such since the Securities and Exchanges Board of India passed a rule in April allowing the practice, subject to certain constraints, including that they list on a different exchange and that 51 per cent of the company be publicly held. Read more
India’s economy has taken quite a beating over the last year or so – not just in the dismal statistics, but in sentiment reflected in analysts’ reports and the media.
But a few reports released recently seem to suggest that, at least as far as equity markets are concerned, maybe it’s not so bad after all. Or, more likely, the bad has been priced in – and it’s going to get better. Read more
The Tata Group’s incoming head, Cyrus Mistry, made his first major hire on Tuesday in the form of Madhu Kannan (pictured left), head of the Bombay Stock Exchange.
As the FT reported, for Tata, Kannan will bring emerging market expertise and, at 38, a relatively young perspective to the fusty halls of Bombay House as Mistry’s new right hand man. But Kannan leaves behind him a bourse that, while vastly improved from when he joined it in 2009, still has a long way to go to become the globally-integrated – and relevant – stock exchange he envisioned and India needs. Read more