CKPIM Business Review

06

Authors: Dr. Neetu Prakas

The concept of intellectual capital is becoming popular at global level in recent era. Various forward-looking companies have started measuring and Intellectual capital of a firm is, its possession of knowledge, applied experience, organizational technology, customer relationships and professional skills that provides it with a competitive edge in the market. It is the intellectual material - knowledge, information, intellectual property and experience that can be put to use to create wealth. Intellectual capital is nothing, but the combined intangible assets that enables a company to function in a passionate way and simply we can call it as "packaged useful information". If these intangible resources, such as knowledge as well as professional skills of the employees, organizational technology, research and development are not properly identified and utilized, it may cause to the failure of the business. The importance of financial assets in the determination of a company's market value is decreasing fast, and it is equally recognized that non-financial (or intangible) assets are now the main drivers of performance and market value.

11

Authors: Dr. Sanjay P Sawant Dessai

The robust economic growth achieved by the Indian Economy in the post reform period attracted lot of interest from foreign institutions which stimulated strong performance of the Indian Capital market. This has led to large influx of primary issues, as promoters wanted to take advantage of booming market. With Indian economy is slowing down for last three years and the surge in gold prices, it is imperative to know the performance of Indian IPOs which came in market during this period. The paper deals with the analysis of performance of Initial public offers which were offered to public through Bombay Stock Exchange, inbetween July 2010 to June 2013 are studied. Sector wise performance of these IPOs that is appreciation in price over and above issue price in secondary market over a period from six to thirty-six months is studied.

14

Authors: Dr.Janki Mistry

One way for a company to change its capital structure is through Share Repurchase. In this type of restructuring, the equity of the company gets cancelled or reduced and hence the proportionate debt increases. This alters the capital structure of the company. Any type of restructuring activity basically is aimed at increasing the shareholders’ wealth or improving the financial status of the company. This study strives to understand the implications of repurchases through open market offers on the share prices. It has been found that repurchases lead to increase in abnormal returns to share holders post announcement of the offer.