Archive for July, 2009

Brokerages plan revised cost structure for MF distribution

Distributors of mutual funds are planning to revise their transaction cost structure to attract investors as the charge for buying units in a mutual fund goes from tomorrow, something they believe will increase sales. :-/ Distributors are now waiting to see whether asset management companies (AMCs) announce distribution commission for various MF schemes and on [...]

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Sanlam joined hands with SMC Global, eyeing India fund launch by Feb.

South African financial services firm Sanlam expects to start mutual fund operations in India by February next year and hopes to break-even in three to five years, a top executive said on Tuesday. The firm, which has joined hands with Indian broking firm SMC Global for asset management and wealth management businesses,  has received an [...]

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Promoter stake reduction could raise Rs.159,000 crore :O

Listed companies could raise over Rs.159,000 crore if Finance Minister Pranab Mukherjee’s proposal to reduce promoter stake in all listed companies to 75 percent becomes a policy , a report released Wednesday said. Of this, state-owned firms alone will contribute as much as Rs.138,000 crore, the report by broking firm SMC Capitals said. Among the [...]

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Indian Govt. disinvestment plans to kick off soon !

Indian Power Firm NHPC Ltd will kick off a $1.25 billion IPO next week in the first share sale by a state company. Since the congress party’s unexpectedly strong re-election in May spurred investors hopes for pro market reforms. Despite opposition from labour groups and leftist parties, the government is forecast by some watchers to [...]

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Venture capitalists have little fancy for Indian start-ups

Dreamy-eyed Indian entrepreneurs, hoping to talk their way into getting venture capital for their start-ups might as well look elsewhere for funding. It doesn’t happen in India, not often anyway, investors and experts in the industry, maintain. Venture capitalists in India only prefer growth-stage companies — firms already up and running that need money for [...]

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Adani IPO fully subscribed on day 1 – sources

Adani Power Ltd’s initial public offering worth up to $623 million was fully subscribed within an hour of opening to investors on Tuesday, three sources involved in the deal said. By 10:36 a.m (0506 GMT) the 301.65 million share offer was subscribed three times, mostly at 100 rupees, or the top end of the price [...]

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Industry Life Cycle

In general, an industry will traverse through 5 stages: 1. Pioneering development: It is characterized by modest sales growth and huge development costs. Consequently, profits are either negligible or are in fact negative. 2. Accelerating Growth: At this point, the industry product is gaining wider acceptance. Hence, it is very likely that demand for this [...]

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Impact of Structural Changes on Economy

First of all, a distinction should be made between cyclical and structural changes. Cyclical changes arise as a result of the economy progressing through the various stages of its business cycle. Structural changes, on the contrary, arise as a result of a major shift in how the economy functions. In particular, there are four main [...]

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BUSINESS CYCLE AND INDUSTRY PERFORMANCE 1

As we all know that different industries perform differently depending on what part of the business cycle the economy is in. Though at present there are signs of stabilization, including a recovery of stock markets, a decline in interest rate spreads, improved business and consumer confidence but the situation still remains uncertain and significant risks [...]

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Sebi steps in to protect minority shareholders

In a market where there are few cases of stocks with differential voting rights (DVRs), last week’s change to the Equity Listing Agreement, at first glance, seems to protect the interests of minority shareholders. Sebi’s step is ostensibly to prevent situations wherein companies come out with follow-on-issues, rights issues or preferential allotments with higher voting [...]

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