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.
The Japanese have always loved fresh fish. But the water close to Japan has not held many fish for decades. So to feed the Japanese population, fishing boats got bigger and went farther than ever. The farther the fishermen went, the longer it took to bring the fish. If the return trip took more time, the fish were not fresh. To solve this problem, fish companies installed freezers on their boats. They would catch the fish and freeze them at sea. Freezers allowed the boats to go farther and stay longer. However, the Japanese could taste the difference between fresh and frozen fish. And they did not like the taste of frozen fish. The frozen fish brought a lower price. So, fishing companies installed fish tanks. They would catch the fish and stuff them in the tanks, fin to fin. After a little thrashing around, they were tired, dull, and lost their fresh-fish taste. The fishing industry faced an impending crisis! But today, they get fresh-tasting fish to Japan .
How did they manage? To keep the fish tasting fresh, the Japanese fishing companies still put the fish in the tanks but with a small shark. The fish are challenged and hence are constantly on the move. The challenge they face keeps them alive and fresh!
Have you realized that some of us are also living in a pond but most of the time tired and dull? Basically in our lives, sharks are new challenges to keep us active. If you are steadily conquering challenges, you are happy. Your challenges keep you energized. Don’t create success and revel in it in a state of inertia. You have the resources, skills and abilities to make a difference. Put a shark in your tank and see how far you can really go
forwarded by Augustin :)