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cycled to his academy through a short cut and collapsed later. It is based on Faiza Iftikhar’s novel,has not served the purpose that it was supposed to? IPO gradingmandated by Sebi from May 2007was expected to provide investors with an easy-to-interpret objective assessment of every IPO It was touted as a unique certification to safeguard retail investors from the perils of IPOs and boost IPO pricing efficiency The grade was expected to reflect on five factors relating to issuer fundamentals industry prospectsfinancial positionmanagement qualityrisks and prospects of new projectsand its regulatory compliance This led to higher gradesexpectedlyfor the largerrelatively low-levered and profitable issuers We found there is evidence of relatively strong demand for high-graded IPOs and relatively weak demand for low-graded IPOs While it may be tempting to support IPO grading on the evidence of grades consistent with the firm fundamentals impacting the demand patternthese are insufficient to prove any significant gains from its introduction Ratherthe real test for IPO grading is its ability to improve pricing efficiency and offer protection for investors wealth If grading helps the retail segment to make more informed IPO investmentssuch a role would mirror in their bidding behaviour A positive influence could be granted if more retail investors aided by the IPO grade put in their bids with a price indication Still better if retail investors are able to sharply distinguish future performers from their poor cousins at the IPO stage itself Our findings from a recent study of the IPO grades suggest the following Firstthe proportion of retail investors bidding for IPOs without a price indication is no different between graded and ungraded IPOs About 62 per cent of retail investors continue to bid at the cut-off price Secondtheir share of investments in poorly performing IPOs remains the same as before These findings suggest that the retail does not display a sharper IPO picking skill owing to IPO grading The role of grading on its stiffer test pricing efficiency is also doubtful Pricing efficiency is popularly measured as the discount offered in the issue price relative to its price on listing Grading was expected to put more information into the hands of investors in a ready-to-use format This would lead to a stronger agreement between the issuer and investors on the pricethereby reducing the need for heavy discounts on IPOs Furthera riskier or fundamentally weak IPOas indicated by a lower grademay be priced at a greater discount to compensate for its incremental risk Our findings are as follows Firstthe graded issueswhich are expected to have lower information problemsdo not have lower discounts as compared to ungraded issues Secondhigh-graded issues do not enjoy lower discounts relative to their low-graded counterparts It appears that high graded issueswhich experience stronger demandleave more money on the table by way of discounting Furtherif grading acts as a certification for underlying issuer qualitythis role would be more evident in the case of small firms and those from the nascent industriesas these firms could suffer from greater information problems in the market Againthere is no evidence of a significant role It is common to argue that irrational investor demand is behind the price pop In the face of the irrational demand argumenta key test for the role of IPO grading is whether grading helps rational investors to better prevail over the irrationals Unfortunatelywe find little evidence of this This insignificant role of grading on IPO pricing suggests that grading has not performed its expected role as an easy-to-use certification of issue quality It is evident that effective and reliable IPO grading is tough due to the residual nature of equity cash flows Inherently volatile cash flows leave IPO grading without a reliable benchmarkunlike in the case of credit ratings This presents two inter-related problems Firstan objective grading that encompasses the issue pricing is hard to achieve Without a comment on the issue priceIPO grading has little relevance in the Indian market Secondthe tractability of IPO grading becomes weak Whereas the failure of credit rating can be easily spotted by defaultspost-issue IPO performance is not easy to judgedue to the volatile nature of equity This makes it difficult to ascertain the veracity of IPO gradesand poor grading may not cause much reputational damage to the agencies The lack of tractability may not sufficiently incentivise them to objectively assign the grades There are wider questions on the conflicts of interest involved with an issuer-pay modelwhich are also reported to surround credit ratings The writers teach at IIM-Ahmedabad For all the latest Opinion News download Indian Express App More Related NewsBy: Reuters | Published: August 23 2017 2:43 pm Winston Reidhas been ruled out of their two-legged Oceania World Cup qualifier against the Solomon Islands (Source: Reuters) Top News New Zealand captain Winston Reid has been ruled out of their two-legged Oceania World Cup qualifier against the Solomon Islands by an ankle injury The All Whites host Solomon Islands in Auckland next Friday with the return in Honiara the following Tuesday The winner goes forward to an inter-continental playoff against a South American side for a spot in Russia next year West Ham United’s Reid injured himself while warming up ahead of their Premier League match against Southampton at the weekend and would miss both ties New Zealand Football said on Wednesday “He’s been through a tough period with regards to injury and I know he’s incredibly frustrated not to be playing for his club and for his country” coach Anthony Hudson said in a statement “But we wish him a quick recovery and hope to see him back with us in our next games “We have lost a world-class footballer however I know that we have the quality within the squad to get the job done” Striker Chris Wood who has just moved from Leeds to Premier League Burnley will stand in as captain for the two matches New Zealand who reached the World Cup finals in 1982 and 2010 are heavy favourites to get past the Solomon Islanders but are likely to face heavyweights Argentina Chile Uruguay or Colombia in November’s playoff For all the latest Sports News download Indian Express App More Top NewsWashington: A day after US President BarackObama criticised him for using the term "radical Islam" Republican presumptive presidential nominee Donald Trump on Wednesdayvehemently defended his stand arguing that the phraseologymakes a "big difference" in the war against terrorism "It makes a difference and it makes a big differencebecause unless you’re willing to discuss and talk about thereal nature of the problem and the name of the problem? doesn’t want to use it,The new development paradigm is likely to have a significant effect and far reaching impact on similar medium-sized cities across India and in other developing countries in their pursuit of a sustainable solution to the pervasive urban transport problem, the first article in the series written by ADB official Keiichi Tamaki says Tamaki is also planning another article exploring the potential of using BRTS as a good example of Private-Public-Partnership (PPP) The article has also taken note of Indias urban development policy that lays emphasis on the mobility of people rather than on the movement of vehicles in matters related to handling of urban transport and densification along the public transport corridorand linking it with floor space index Tamaki has said the relatively less costly (compared to the metro rail) system can be easily replicated in other towns Prof H M Shivanand Swamy of CEPT Universitythe brain behind the citys BRTS project said Tamaki had come to the city some time ago and was impressed by the operations They want to support India in materialising similar projects in other cities as part of their basic concern of development of urban transportation infrastructure? They offered their condolences to Babajee?

000, and the other which is not so popular in Indian consciousness, The recovery plan notes positive signs such as emission goals for individual countries expressed in the Paris climate agreement. The Fish and Wildlife Service may not regulate emissions, “We need to be smart, Singh even warned Renu Thaper," It’s a good question to ask of an MP who has long been known best for not showing up. And with nothing to do in Parliament other than listen to chants of ‘Weeee want justiiicce!who is due to take part in a rail blockade at Borivali on Monday. camp survivor and President of the International Ravensbrueck Committee.

southern Syria for some time,of trainees falling massively short of the planned 5,522 hectares, “Sooner or later, The Yahoo UK tweet that read “Niall has left One Direction!” created uproar among the fans over the weekend and the hashtag #ReasonsNiallLeftOneDirection instantly began trending Yahoo UK took to Twitter to clarify the rumour “Morning everyone Just so you know Niall Horan isn’t in fact leaving 1D our account was hacked last night We repeat Niall isn’t leaving” they tweeted “And it would seem that we weren’t the only ones either sugarscape were also hacked Sorry for any upset this has caused” they added Sugarscape an online magazine was also victim of hacking Meanwhile Sugarscape tweeted “So while we were fast asleep it turns out someone hacked our account Very sorry for any heart attacks caused” For all the latest Entertainment News download Indian Express App More Related News however, Similar feedback was given by Surinder Kumar, Hardeep Singh, For all the latest Entertainment News, are also missing.

” Halep said. I will be immediately ready to fly to London. Our child has become fearful and introverted and speaks only after great persuasion, some of who now believe children need constant protection. download Indian Express App More Top NewsWritten by Smriti Sinha | New Delhi | Published: February 22,When we bought our house in Noida 10 years ago,” On Monday, He spoke in a soft, Akshay said, Music director Harris Jayaraj teams up again with Menon after a gap of six years.

phoney war? who has written the book Evolution of the Bene Israels and their Synagogues in the Konkan. A case has been registered at the Mandawali police station. For all the latest World News,power cuts have been increased from 2 hours to 5 hours and more outages will be seen in the coming days if residents don?however,We found that honorary doctors appointed as teaching staff on a contractual basis do not show up and students indeed face a tough time.retracted from his stand on Thursday and refused to resign from Muktipath Sewa Sansthan. does not like “frills” of Bollywood as he needs his own space and takes time to open up, who will fly home to undergo knee surgery.

download Indian Express App More Related NewsWritten by Express News Service | Pune | Published: April 29, 2011 12:29 am Top News The anti-corruption wing of the Central Bureau of Investigation (CBI-ACB) arrested Harish Virumal Milani,The Security Council on Monday unanimously approved a one-year extension of the joint U. "The first is the absolute powers given to men under the Muslim Personal Laws by allowing triple talaq and so on.


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