Noted economist & management guru Professor Arindam Chaudhuri during an interview with Mid-day, in New delhi. Arindam Chaudhuri is an eminent author, an authoritative speaker & a transformational leader.
Friday, January 1, 2010
Thursday, December 17, 2009
And the race begins...
As Mahindra Holidays’ success inspires more companies to hit the primary market, investors too are fastening their seat belts for a joy ride, says Deepak R. Patra
The brave one wins! And it’s proven once again with the Initial Public Offer (IPO) of Mahindra Holidays and Resorts India Ltd. Strangled by the year long carnage at Dalal Street when the primary market was left high and dry, it came as the first IPO of the financial year 2009-10 breaking a four-month lull. Though market was stirred by the post election developments, no body was sure about the IPOs future; many questions were passing through the minds. While analysts were thinking over the possibilities of the IPO getting fully subscribed, investors were cautiously thinking whether to invest or not? But then, Mahindra Holidays’ bravery paid off. It ended up being almost 10 times over subscribed. However, this success of Mahindra Holidays has given rise to a million dollar question; is the primary market reviving thick and fast??
“Well, it’s a tough question to answer at this point of time,” says Prithvi Haldea, Founder-Managing Director, PRIME. Certainly, considering it’s just the first of the lot, it’s tough to predict the future outcomes, but the question remains, why did the company pick up this time to hit the market? “In September 2008 we had filed the draft prospectus with the Securities and Exchange Board of India (SEBI) and were waiting for the right time.
Post-election we could see a window of opportunity and just decided to cash on it,” explains Ramesh Ramanathan, MD, Mahindra Holidays’ and Resorts India Ltd. However, the company derived courage to launch the IPO from its stronger fundamentals and business model based on both growth and annuity. And of course, their past experience as Ramanathan further adds, “As such we are not completely new in the primary market. Earlier we had successfully accomplished Tech Mahindra IPO.”
Whatever may be the reason, but this IPO has seen the primary market revive for sure. More for the fact that with the launch of the IPO the grey market in Ahmedabad, which in general is considered as a litmus test for IPOs, has witnessed some movements almost after a year. Market men feel that the movements will start gathering momentum as new IPOs come in. Even though investors are still very cautious about investing, one cannot deny the fact that gradually now they are coming out of their shells. At least, the Qualified Institutional Buyers (QIBs) seem to be returning to the market. In Mahindra holidays’ IPO, the QIB portion was over subscribed by almost 13 times (bids received for 71,303,160 shares as against an offer of 5,559,165 shares), the highest among all the categories. Active participation of the QIBs certainly means that things will turn for good from here on.
Perhaps corporate India too is banking on the same fact. As many as 19 companies have already filed their Draft Red Herring Prospectus (DRHP) with the market regulator SEBI and are raring to hit the market soon. This includes a few big ticket IPOs too like NHPC Ltd. (issue size Rs.2500 crore), Adani Power Ltd. (Rs.2200 crore) and Oil India Ltd. (Rs.1400 crore). Combined together 19 companies, which have received a nod from SEBI, will be raising a whopping Rs.8900 crore from the market. But then that’s not all, while near about 20 applications are pending with SEBI for approval, many more like BSNL, Pradip Overseas, John Energy et al are evaluating their options to float IPOs, which seriously means the draught is set to be over as a new season of IPOs have just kick started with that of the Mahindra Holidays’. However, as per Prithvi Haldea, “Companies will remain cautious for sure as issue expenses with a failed IPO is too big a cost.”
Meanwhile, the investor community seem to be gearing up for the show. As per the data available with National Securities Depository Ltd. (NSDL) and Central Depository Services Ltd. (CDSL) during April and May nearly 1.84 lakh new demat accounts have been opened. And the momentum is picking up fast indicating that investors too are prepared to participate in the upcoming IPOs. But then, both parties must not forget, fundamentals will be the key for both parties.
Deepak R. Patra
For More IIPM Info, Visit below mentioned IIPM articles.
IIPM fights meltdown, places 2300 students By Education Mail Bureau
Delhi/ NCR B- Schools get better By Swati Sharma
Event at IIPM
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IIPM set to beat economic slowdown
IIPM Admission Detail
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The brave one wins! And it’s proven once again with the Initial Public Offer (IPO) of Mahindra Holidays and Resorts India Ltd. Strangled by the year long carnage at Dalal Street when the primary market was left high and dry, it came as the first IPO of the financial year 2009-10 breaking a four-month lull. Though market was stirred by the post election developments, no body was sure about the IPOs future; many questions were passing through the minds. While analysts were thinking over the possibilities of the IPO getting fully subscribed, investors were cautiously thinking whether to invest or not? But then, Mahindra Holidays’ bravery paid off. It ended up being almost 10 times over subscribed. However, this success of Mahindra Holidays has given rise to a million dollar question; is the primary market reviving thick and fast??
“Well, it’s a tough question to answer at this point of time,” says Prithvi Haldea, Founder-Managing Director, PRIME. Certainly, considering it’s just the first of the lot, it’s tough to predict the future outcomes, but the question remains, why did the company pick up this time to hit the market? “In September 2008 we had filed the draft prospectus with the Securities and Exchange Board of India (SEBI) and were waiting for the right time.
Post-election we could see a window of opportunity and just decided to cash on it,” explains Ramesh Ramanathan, MD, Mahindra Holidays’ and Resorts India Ltd. However, the company derived courage to launch the IPO from its stronger fundamentals and business model based on both growth and annuity. And of course, their past experience as Ramanathan further adds, “As such we are not completely new in the primary market. Earlier we had successfully accomplished Tech Mahindra IPO.”
Whatever may be the reason, but this IPO has seen the primary market revive for sure. More for the fact that with the launch of the IPO the grey market in Ahmedabad, which in general is considered as a litmus test for IPOs, has witnessed some movements almost after a year. Market men feel that the movements will start gathering momentum as new IPOs come in. Even though investors are still very cautious about investing, one cannot deny the fact that gradually now they are coming out of their shells. At least, the Qualified Institutional Buyers (QIBs) seem to be returning to the market. In Mahindra holidays’ IPO, the QIB portion was over subscribed by almost 13 times (bids received for 71,303,160 shares as against an offer of 5,559,165 shares), the highest among all the categories. Active participation of the QIBs certainly means that things will turn for good from here on.
Perhaps corporate India too is banking on the same fact. As many as 19 companies have already filed their Draft Red Herring Prospectus (DRHP) with the market regulator SEBI and are raring to hit the market soon. This includes a few big ticket IPOs too like NHPC Ltd. (issue size Rs.2500 crore), Adani Power Ltd. (Rs.2200 crore) and Oil India Ltd. (Rs.1400 crore). Combined together 19 companies, which have received a nod from SEBI, will be raising a whopping Rs.8900 crore from the market. But then that’s not all, while near about 20 applications are pending with SEBI for approval, many more like BSNL, Pradip Overseas, John Energy et al are evaluating their options to float IPOs, which seriously means the draught is set to be over as a new season of IPOs have just kick started with that of the Mahindra Holidays’. However, as per Prithvi Haldea, “Companies will remain cautious for sure as issue expenses with a failed IPO is too big a cost.”
Meanwhile, the investor community seem to be gearing up for the show. As per the data available with National Securities Depository Ltd. (NSDL) and Central Depository Services Ltd. (CDSL) during April and May nearly 1.84 lakh new demat accounts have been opened. And the momentum is picking up fast indicating that investors too are prepared to participate in the upcoming IPOs. But then, both parties must not forget, fundamentals will be the key for both parties.
Deepak R. Patra
For More IIPM Info, Visit below mentioned IIPM articles.
IIPM fights meltdown, places 2300 students By Education Mail Bureau
Delhi/ NCR B- Schools get better By Swati Sharma
Event at IIPM
Detail of all IIPM branches
IIPM set to beat economic slowdown
IIPM Admission Detail
IIPM - Admission Procedure
IIPM, GURGAON
Thursday, October 29, 2009
DEATH-ON-SALE!
The media also crashes in on the party. You simply have to look around at all the ratings-boosting coverage of MJ’s death for current evidence. TIME magazine has been particularly quick on the uptake. While the figures for their recent special commemorative issue on Jackson are still not available, a similar special issue on Princess Diana’s death by TIME sold more than 1.1 million copies. Natmags is releasing a commemorative 132-page Michael Jackson tribute magazine and a total of 200,000 copies of the glossy A4 title will be on sale for a month, priced at £2.99 per copy.
Memorial events too are going strong, where fans are ready to pay $50 to vendors for a picture next to a cut out of the King of Pop. Jackson’s funeral, in fact, has been the biggest in entertainment history, even bigger than Diana’s death and at par with the event of Obama’s presidential speech. Jackson’s cremation event was viewed by more than 750 million people. Going by Nielsen data, Princess Diana’s funeral saw 33.25 million viewers, while former President Ronald Reagan’s mid-day funeral drew 20.8 million people only.
Not to be outdone, even merchandise licensees from around the world have successfully tuned into manufacturing and distributing products using celebs who have passed away. In 2008, Elvis Presley Enterprises was sold by Elvis’ daughter, Lisa Marie, for $100 million. It should not come as a surprise therefore if tomorrow it is Michaels’ images and stamps. In the past, Diana dolls had become icons of the Princess after her death. They can still be bought for $188.95 from the Society for the Preservation of History. Franklin Mint’s porcelain portrait plate sells for $29.95 and Solid Silver Memorial Coin for $55.
If we are talking of legendary celebs, we can’t miss out on Marilyn Monroe. More than 40 years after her death, licensing her famous poses and pout have made more than $30 million in fees for Anna Strasberg, the wife of Ms. Monroe’s former acting coach, and her business partner, a professional peddler of dead peoples’ images. Marilyn Monroe’s images alone have pulled in more than $30 million since her death and $8 million in 2007 alone. In 2004, Robert Sillerman (a wealthy American businessman who deals in building and selling media companies) paid Lisa Marie Presley $100 million for an 85% stake in Elvis Presley Enterprises Inc. And not to miss out on the Monroe frenzy to entice potential consumers, Mercedes-Benz still features Monroe (along with James Dean) in some of their ad campaigns.
For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2009
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
IIPM fights meltdown, places 2300 students By Education Mail Bureau
Delhi/ NCR B- Schools get better By Swati Sharma
Event at IIPM
Detail of all IIPM branches
IIPM set to beat economic slowdown
IIPM - Admission Procedure
IIPM, GURGAON
Memorial events too are going strong, where fans are ready to pay $50 to vendors for a picture next to a cut out of the King of Pop. Jackson’s funeral, in fact, has been the biggest in entertainment history, even bigger than Diana’s death and at par with the event of Obama’s presidential speech. Jackson’s cremation event was viewed by more than 750 million people. Going by Nielsen data, Princess Diana’s funeral saw 33.25 million viewers, while former President Ronald Reagan’s mid-day funeral drew 20.8 million people only.
Not to be outdone, even merchandise licensees from around the world have successfully tuned into manufacturing and distributing products using celebs who have passed away. In 2008, Elvis Presley Enterprises was sold by Elvis’ daughter, Lisa Marie, for $100 million. It should not come as a surprise therefore if tomorrow it is Michaels’ images and stamps. In the past, Diana dolls had become icons of the Princess after her death. They can still be bought for $188.95 from the Society for the Preservation of History. Franklin Mint’s porcelain portrait plate sells for $29.95 and Solid Silver Memorial Coin for $55.
If we are talking of legendary celebs, we can’t miss out on Marilyn Monroe. More than 40 years after her death, licensing her famous poses and pout have made more than $30 million in fees for Anna Strasberg, the wife of Ms. Monroe’s former acting coach, and her business partner, a professional peddler of dead peoples’ images. Marilyn Monroe’s images alone have pulled in more than $30 million since her death and $8 million in 2007 alone. In 2004, Robert Sillerman (a wealthy American businessman who deals in building and selling media companies) paid Lisa Marie Presley $100 million for an 85% stake in Elvis Presley Enterprises Inc. And not to miss out on the Monroe frenzy to entice potential consumers, Mercedes-Benz still features Monroe (along with James Dean) in some of their ad campaigns.
For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2009
An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).
For More IIPM Info, Visit below mentioned IIPM articles.
IIPM fights meltdown, places 2300 students By Education Mail Bureau
Delhi/ NCR B- Schools get better By Swati Sharma
Event at IIPM
Detail of all IIPM branches
IIPM set to beat economic slowdown
IIPM - Admission Procedure
IIPM, GURGAON
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