Media reports suggest that SEBI plans to pull another rabbit out of the hat - an auction-based pricing of initial public offerings (IPOs). This is something that has long been advocated by data aggregators on behalf of companies. The move is being packaged as one that will bring ‘more transparency and efficiency’ to the sale of shares. But, in fact, companies will extract the highest possible...

The stupendous wealth of the Essar group is created out of public money. It is the story of two brothers who turned into major industrialists by repeatedly raising public money, using existing listed companies to spawn new ones, spinning them off and raising money again or getting listed entities to provide guarantees to raise funds in their unlisted private companies. A combination of...

Who are the investors that Essar Steel is dumping and why do they feel short-changed? Well, listen to this story. Hemendra Shah (name changed) bought Essar Steel shares in 1992 at Rs150. As its fortunes slid, the company made two rights issues at Rs60. Two years ago, as part of capital restructuring, it reduced every 100 shares owned by an investor to 60. This means that investors actually...