India being emerges as one of the big market for (M&A) Mergers and acquisitions, in the last decade. The market for M&A is expected to grow at a very rapid pace and sooner we may see many hostile bids by the Indian companies, as they are very uncommon in India. Hostile takeovers must be recognized as manifestations of a market for corporate control. Advanced economies regulate M&A activities only from competition angle.
Private equity continuing to invest capital into India Inc, Hope that there would be some hostile takeovers because that is something Indian market badly needs to ensure good value creation for the shareholders.
Few of the cases which I can recall for hostile take over in India are Abishek Dalmia on Gesco and Arun Bajoria on Bombay Dying. Both were medium-sized barons outnumber their bigger peers, and follow quite different paths when it comes to running their businesses – owning substantial stakes in their business and thus less vulnerable to takeover. View full article »
The weekend was adventurous for India; last night PM Mr Modi did the hard selling for India, obviously learning by itself for Investment bankers. The pitch was very strong in the economic sense.
I was reading Traders Guns and money over the weekend and found some interesting jargon and pitches made by the Investment bankers.
Statement: As a Leading dealer with a global platform, we are the major player in the market.
Translation: We have spent a fortune to build this business and are now prepared to spend millions more subsidizing your requirements.
Statement: We have one of the most talented teams in this space.
Translation: Our staff are vastly overpaid and on huge guaranteed bonuses. View full article »
Commodity derivatives markets started in India in 1990s, The National Agriculture Policy, announced by the government in 2000, advocated the development of futures markets so that consumers and producers of commodities could use these contracts to procure commodities at a more rational price than at the Minimum Support Price (MSP) set by the government, which came with a large cost to the exchequer. This set in place a drive of reforms in these markets, following the reform model that had lead to the development of the Indian equity markets previously.
In 2003 commodity futures contracts started trading on electronic exchanges with a nation-wide reach. Counterparty credit risk, that was a serious problem in the older exchanges, was eliminated using netting by novation at clearing houses similar to their more visible equity derivatives cousins. Total traded View full article »
Equity investing is something that can’t be taught or learned in a limited period. It requires time, patience and rules that you can bank on. I shared few principles from the famous book Beating the Street by Peter Lynch few days back. At the end of the book Lynch shared 25 Golden Rules of investing: (Which is interesting because I count 26)
- Investing is fun, exciting, and dangerous if you don’t do any work.
- Your investor’s edge is not something you get from Wall Street experts. It’s something you already have. You can outperform the experts if you use your edge by investing in companies or industries you already understand. View full article »
#Fact : Insurance is not an investment : A good insurance policy is gold when it comes to risk protection.
Unit Linked Insurance Policies (ULIPs) as an investment avenue are closest to mutual funds in terms of their structure and functioning. As is the case with mutual funds, investors in ULIPs are allotted units by the insurance company and a net asset value (NAV) is declared for the same on a daily basis.
Similarly ULIP investors have the option of investing across various schemes similar to the ones found in the mutual funds domain, i.e. diversified equity funds, balanced funds and debt funds to name a few. Generally speaking, ULIPs can be termed as mutual fund schemes with an insurance component.
However it should not be construed that barring the insurance element there is nothing differentiating mutual funds from ULIPs. View full article »