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Category: Merchant Banking


There are now  857 posts on my blog , so I do some re-posting of them because  may be the subject is so interesting or you can sayblog that I cannot generate new ideas on daily basis 🙂

 

Recalling the movie Other People’s Money . as I was more curious to know about the heated debate in US whether Private Equity to be termed as Hero or Villan. Those of you who has seen the Wall street series and remember Gordon Gekko,a character resembling popular culture for unrestrained greed (with the signature line, “Greed, for lack of a better word, is good”), often in fields outside corporate finance. In the Indian market PE have limited presence.

Let us try to understand Private Equity (PE) :    Continue reading

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The world’s largest spirits company Diageo Plc decided to hike its stake in United Spirits (USL), a company it acquired in 2012 and blogtry to take its stake to 55%.

Diageo has launched an open offer on Tuesday morning to acquire an additional 26% in the company. Currently Diageo holds 29% stake in the company via one of its international arms Relay BV and has been trying to gradually acquire more shares in Vijay Mallya’s flagship distillery from the open market.

The motive of the offer, if successful, aimed at better strategic control, will give Diageo a higher direct ownership in the business. Tender offer in the Indian market is a rare phenomenon comparing to the global markets.  Continue reading

The Lehman Method

Although Lehman brothers is no more in existence but it has provided many strategies to the Investment banking space that are blogstill in use and may be used more vibrantly in the markets.

One of them is the most famous Straight Line Pitch – “Straight line is an impulse selling at its most aggressive and there have been hundreds of thousands schooled and steeped in its traditions over the years”.

Since its beginning in the water street and madison avenue branches of the Shearson Lehman, the straight line has been taught and retaught a million times during countless boardroom meetings and brokerage firm training  sessions. Continue reading

WhatsApp Facebook’s Deal

 Last weekend I have been reading lot of literature and news about the deal between Facebook and Whatsapp. Most of the people bloghave challenged it on the Value and Pricing Perspectives. Have taken some extracted thoughts from prof Aswath Damodaran and they looks very interesting:

Following in the footsteps of my favorite baseball general manager, Billy Beane, its time to play some Moneyball, where we let the data drive our actions, rather than our intellects. Here is what I take out of these numbers:

  1. If you are an investor, stop trying to explain price movements on social media companies, using traditional metrics – revenues, operating margins and risk. You will only drive yourself into frenzy. Continue reading

I do not know how people can be so insane about Candy crush that Candy Crush Saga, made its pitch to potential investors for its bloginitial public offering couple of days back, revealing in a U.S. Securities and Exchange Commission filing just how good its business has been. By the way I don’t like the Candy crush invite on Facebook.

Every month, millions of people download King’s free apps, only to pay up for little digital trinkets that help them make progress in its games. People managing huge investment funds are probably just as hooked as the rest of us on those blinking jelly beans.

The way people changing taste social network and IT gaming companies en-cashing the opportunities, Facebook and Whats-app is a different story in line would put up with details soon.  Continue reading

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