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Let me take this opportunity to comment on the current financial crisis. The major reason behind what has happened is our quest for high growth combined with our reluctance to logically question the reason for the high growth. This is also true for the financial crisis that gripped India after the Harshad Mehta scam.

The Singh family, promoters of Ranbaxy Laboratories, in a surprise move sold their controlling stake to Daiichi. Now this act of the Singh family is just what it is - a stake sale. However, Malvinder Singh, CEO of Ranbaxy has explained this move as a pioneering move and as such I am forced to comment.

My interest in the stock market arose at the time of Reliance Power IPO. That was the first time that I commented on the stock market. At that time, I started reading Udayan Mukherjee’s column in HT. I liked his writing style.

Even though, I had finance as one of my specialization in MBA, I have been a little confused with the how heavily the Realinace Power IPO has been oversubscribed. I do nor remember exact numbers but I remember the IPO was at around Rs. 450 and the market was expecting it to be listed at Rs. 900-1000. Hence the frenzy to take part in the IPO by everybody. This suggests that either the company is stupid to sell its shares at Rs. 500 or the market is stupid to buy it at Rs. 1000 on listing. One can think of a 5-10% variation but almost 100% variation is beyond my understanding.