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COVER STORY
Key to IPO Investing: Look Beyond Listing Gains
-- Rachana Baid and Dhiren Gokani
The Securities and Exchange Board of India has been focussing a lot on primary market reforms and
has outlined measures like grading by credit rating agency, ASBA, anchor investor concept, etc., to
protect the retail investors. Investors, on their part, must treat IPOs as genuine long-term investments and
must not just gamble on them. They should invest only after taking into account the company's
fundamentals and must not just aim to make listing gains.
© 2009 IUP. All Rights Reserved.
COVER STORY
Are IPOs Creators of Wealth?
-- Ishwara P
Although the primary market has been witnessing a resurgence of late on the back of many IPOs
hitting the market and good participation from institutional investors, the failure of many of the new issues
to deliver returns on listing due to aggressive pricing and poor retail participation could halt the activity
in the market.
© 2009 IUP. All Rights Reserved.
REAL ESTATE
Real Estate Investment Trust: A Prospective Investment Avenue
-- Malay K Mohanty and Prasanna K Baral
With liberalization and globalization, the real estate sector is emerging as a new investment
destination for the investors. In line with the Asian countries, the Indian market regulator, SEBI, is proposing to
set up a REIT (Real Estate Investment Trust). The article identifies the advantages of REIT as an
investment avenue for small investors and its role in channelizing the money of small investors in
immovable property.
© 2009 IUP. All Rights Reserved.
COMMODITY
NELP: Time to Relook?
-- Ameena Parveen
There is no doubt that the initiative taken by the Government of India in framing the National
Exploration Licensing Policy (NELP) has facilitated the entry of private players into the Indian Oil and Gas
industry which is, in turn, contributing to India's growth story by reducing mounting import bills and
subsidies given to the various sectors, like fertilizer, power, etc. However, the dismal participation by
various private and foreign players in the recent eighth round of auctions under NELP, despite their active role
in the road shows before the auction, signals a wake up call to the policy makers to rework on the NELP.
© 2009 IUP. All Rights Reserved.
INDUSTRY
The Collapse of Lehman Brothers: Lessons to be Learnt
-- Ishita Chaudhuri
The collapse of the investment banking giant, Lehman Brothers, on September 15, 2008, marked
the beginning of a serious global economic downturn. Many more bankruptcies followed and millions
lost their jobs. This article traces the events that led to the collapse of the investment bank and analyzes
the lessons that have been learnt from the debacle.
© 2009 IUP. All Rights Reserved.
RESEARCH ANALYSIS
Evaluation of Systematic Risk in Select Pharmaceutical Companies
-- Ramachandra Reddy and M Syam Babu
Systematic risk is the risk that affects a security or portfolio due to its relationship with the market.
Systematic risk cannot be reduced through portfolio diversification since this risk is associated with
the overall market sentiments, rather than the performance of a few stocks. This article calculates
the systematic risk of the shares of a sample of ten pharmaceutical companies and compares the
relationship between the stock returns and the market returns.
© 2009 IUP. All Rights Reserved.
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