Conparative study on financial areas covering Delisting, Takeover and Buyback of securities.

1. COMPARATIVE STUDY ON
FINANCIAL AREAS
Done at
Submitted to – IIPM
Submitted by – PRASHANT MAHARSHI
Batch – ISBE/PGP/SS/2011-13

2. COMPANY PROFILE
• Incorporated on 18th May, 1994 as Pvt. Ltd. Company.
• Converted into Limited Company on 13th June, 1995.
• 100% subsidiary of Interface Financial Services Ltd.
• Corporate member of National Stock Exchange.
• Corporate member of ASE, registered with SEBI.

3. PRODUCTS AND SERVICES
• Online Trading
• Services related to Capital Markets
• Demat Services
• Depository Participants
• IPOs
• Mutual Funds

4. MAJOR COMPETITORS
• Indiabulls
• India Infoline
• Motilal Oswal
• SKS Micro Finance
• Aditya Birla
• Karvy

5. USP OF IBRL
• Financial advisors for new businesses
• Financial advisors for capital markets

6. MY KEY LEARNINGS

7. BUYBACK
1. What is Buyback?
• Process by a company to bring their shares back from the shareholders.
• Where shareholders sell their shares directly to the company.
2. Why it is done?
• To return surplus of cash to shareholders
• To support the share prices during temporary weakness
• To increase promoters holdings
• To prevent from unwelcome takeover bids
• To increase EPS

8. DELISTING
1. What is Delisting?
• Process of removing securities of the listed companies from a stock exchange
permanently.
• Also known as the Reverse Book Building Process.
• After the completion of the process, the securities of that particular company will
no longer be traded on that stock exchange.
2. Why it is done?
• The Company no longer complies with the Listing Requirements of the Exchange.
• The Company becomes a private company.
• Trading volumes on the exchange it wishes to delist are not sufficient to justify
the listing fees.
• The company (usually the legal entity) is being liquidated.
• The company declares a Bankruptcy (for example a company can default on
paying their debt and file for bankruptcy protection).

9. TAKEOVER
1. What is Takeover?
• When an "acquirer" takes over the control of the "target company", it is termed
as Takeover.
• When an acquirer acquires "substantial quantity of shares or voting rights" of the
Target Company, it results into substantial acquisition of shares.
2. Why it is done?
• To gain opportunities of market growth more quickly than through internal
means.
• To seek to gain a more dominant position in a national or global market.
• To acquire the skills or strengths of another firm to complement the existing
business.
• To acquire a speedy access to revenue streams that it would be difficult to build
through normal internal growth.
• To diversify its product or service range to protect itself against downturns in its
core markets.

10. Thank You…