Reference no: EM133069056

Please read the case-let given below and analyse for presenting your view point and your analysis by way of questions asked below.

Global companies from noodle makers to semiconductor giants are spending on new plants and machinery in ways they haven't done for years. On the supply side, blockages brought on by the Covid-19 pandemic are forcing businesses to invest in new production facilities; calls for a cleaner environment are spurring spending on electric vehicles, batteries and alternative energy; and the big semiconductor crunch has prompted a wave of investment. With inflation jitters rising, central bank tapering looming and supply chain chaos continuing, the capex surge offers a rare ray of hope for the global economy into 2022 and beyond. It's also a very different dynamic from the last global crisis of 2008, when austerity and weak investment dragged on employment and wages for years to come.
On the demand side, pent up consumer spending is convincing executives that capital is worth outlaying -- a sign that business is buying into the world's economic recovery prospects even as the delta strain casts a shadow. Fuelling it all are low interest rates and bets they'll stay that way. Globally, corporate capital expenditure, or capex, will jump by 13% this year, according to S&P Global Ratings, with growth in all regions and broad sectors -- especially in semiconductors, retail, software and transportation. Economists at Morgan Stanley forecast that global investment will reach 115% and 121% of pre-recession levels by the end of 2021 and end of 2022, a much faster recovery than previous downturns.

"A recovery in business investment is critical for longer-term growth, as capital accumulation is key for lifting productivity growth," said Rob Subbaraman, head of global markets research at Nomura Holdings Inc. "Once the unprecedented global policy stimulus fades, the world needs business investment and structural reforms to sustain growth.

So far this year in India, more than 40 companies have raised more than Rs 70,000 crore through IPO. At the same time, China has banned the initial public offering (IPO) of more than 40 companies. China has put on hold more than 40 IPOs in Shanghai and Shenzhen amid regulatory scrutiny from several middlemen in deals.

According to exchange filings, the Shenzhen Stock Exchange on August 18 suspended more than 30 IPOs, including public share sale plans, by BYD Co. Whereas the Shanghai Stock Exchange has put on hold 8 IPOs targeting the city's tech-focused Star Market from August 19. In view of sweeping disruptions as above and falling premium on IPOs:

1) What is your take on designing the IPOs going forward?

2) What's your base case for the recommendations on pricing the issue?

3) Would 'Reorganisation or Restructuring' outweigh compared to weightage for infusing more capital in long-term large-capital projects?

4) In which sectors do you think the regulatory changes will impact more.

5) What's your advisory on the strategy for souring of funds for entrepreneurs going forward?