The Market is in turmoil. Barring the support on Thursday, on account of a global bounce-back, the benchmark indices looked weak — whether you talk about technicals or look at plain index numbers. Consider the movement of the index since the past couple of weeks. The Nifty has been making new intra-day lows. This indicates weakness. The volumes have also declined considerably from the average. This confirms the downward trend. The DLF IPO, which just managed to scrape through the retail and the non- institutional category, sucked out some liquidity last week. ICICI Bank’s follow-on public offer (FPO) will suck out some more. So, the market faces tough times ahead.
This is the first FPO of the current year. ICICI Bank has raised money through FPOs twice in ’04 and ’05. The stock appreciated 230% and 75% over its FY04 and FY05 FPO prices respectively. So, long-term
investors who had applied for the FPO made good returns on their investment. The upcoming issue looks promising as the bank aims to unlock value by creating a holding company for its non-banking business.
Read more in The Economic Times article.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment