Most of the large and aggressively priced issues have a provision for a Green Shoe. It is an assurance by the company that it will protect the short term interests of the investors by buying back shares from the open market whenever the stock price goes below the issue price.
ICICI Bank had raised about 12940 Million INR for this purpose and though the stock is more than a 100/- below its issue price the company has till date bought back only a paltry sum of 185 Million INR from the open market. Their crime is aggregated from the fact that a lot of retail and institutional investors are still holding the partially paid share issued to them and they do not have any option/means to convert it to a full share.
The bank is not responsive to its customers, honest to its shareholders and its international investment arm is involved in sub prime lending… no wonder the stock is going down and is showing no signs of recovery.
12 replies on “Green Shoe: ICICI Bank’s fraud”
Good i didnt buy the stock in the ipo
i ve had a bad experience before
still hold 50 odd fully paid shares
?? international investment arm is involved in sub prime lending //
news to me didnt know about it
what do u expect this stock to quote at ??
ICICI bank’s futures are being traded at a 2.5% premium… so I guess market assumes that the stock price will rise. but the Partially paid shares are trading at 6/- discount…. so even the market/experts do not know where it is going
sub prime lending:
ICICI bank exposure is 1.5 billion dollars.
Thank God for being a poor doctor who is as far away from the share market as Tendulkar’s bat to an outswinger!
ya ram you did a right thing… I lost about 20% of my wealth this week 🙁
can u really call it ur wealth?
itsnt urs until u book it
mark to mkt is a feel good thing
just imagine what murthy and premji must hav lost
yes. but i have to consider that i bought most of my shares only last week….neways… i guess the ups and downs are what makes the market so interesting.
i know how u feel
i had bt lots of infosys at 9600, went to 10600 and it crashed to 2600 after the tech boom making me get a shock of my life!
i was expecting a fall and closely looking at us mkts thanks to net and international channels and biz news
like bloomberg us / france 24 and cnbc us
my losses are about 45k this week… so it isn’t that huge as compared to urs… but since i do not have much savings… its a huge impact… but i am still optimistic
watch out, keep ur stop losses or it can be a real agonizing wait it took 5 yrs for me to get back in profit in infy.
yups i know… neways i have decided I will stick with mutual funds… but won’t touch the market till sept first week.. its too volatile for my liking.. the US market is up today… so monday should be the day for profit booking
dont expect mfs to be safe either
my mfs halved in the tech bust
its all about gettin approx timing right and
not being greedy and regular investg and bookg profits
yups I agree and that is why I am not going for SIPs.. but overall in a long term mutual funds usually go up and down with the index… and I am still bullish about indian stock market