Capital Market is divided into two division; Primary Market and Secondary Market. Primary Market and its components are briefly described in this presentation.
Capital Market is divided into two division; Primary Market and Secondary Market. Primary Market and its components are briefly described in this presentation.
The Initial Public Offering (IPO), Why do companies go public, Mergers and acquisitions, Expensive, Reporting responsibilities, Loss of control,Private Placement.
Venture capital in India is a big action by the Indian government in the term of industry development. Venture capital having more problem and also denoted what will be scenario of Venture capital in future !!
What is Equity Market
How to understand trading in Equity market
How to invest in Equity Market
How to trade in Equity Market
How to earn in Equity Market
The Initial Public Offering (IPO), Why do companies go public, Mergers and acquisitions, Expensive, Reporting responsibilities, Loss of control,Private Placement.
Venture capital in India is a big action by the Indian government in the term of industry development. Venture capital having more problem and also denoted what will be scenario of Venture capital in future !!
What is Equity Market
How to understand trading in Equity market
How to invest in Equity Market
How to trade in Equity Market
How to earn in Equity Market
This book provides basic information about the stock market to the beginners. Your all doubts have been cleared after reading this book related to the stock market investment.
White Paper on IPO This study includes the definition, types, procedures, regulatory aspects and various terms associated with issue of initial public offerings (IPOs) in Indian stock market.
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
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What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
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Latino Buying Power - May 2024 Presentation for Latino CaucusDanay Escanaverino
Unlock the potential of Latino Buying Power with this in-depth SlideShare presentation. Explore how the Latino consumer market is transforming the American economy, driven by their significant buying power, entrepreneurial contributions, and growing influence across various sectors.
**Key Sections Covered:**
1. **Economic Impact:** Understand the profound economic impact of Latino consumers on the U.S. economy. Discover how their increasing purchasing power is fueling growth in key industries and contributing to national economic prosperity.
2. **Buying Power:** Dive into detailed analyses of Latino buying power, including its growth trends, key drivers, and projections for the future. Learn how this influential group’s spending habits are shaping market dynamics and creating opportunities for businesses.
3. **Entrepreneurial Contributions:** Explore the entrepreneurial spirit within the Latino community. Examine how Latino-owned businesses are thriving and contributing to job creation, innovation, and economic diversification.
4. **Workforce Statistics:** Gain insights into the role of Latino workers in the American labor market. Review statistics on employment rates, occupational distribution, and the economic contributions of Latino professionals across various industries.
5. **Media Consumption:** Understand the media consumption habits of Latino audiences. Discover their preferences for digital platforms, television, radio, and social media. Learn how these consumption patterns are influencing advertising strategies and media content.
6. **Education:** Examine the educational achievements and challenges within the Latino community. Review statistics on enrollment, graduation rates, and fields of study. Understand the implications of education on economic mobility and workforce readiness.
7. **Home Ownership:** Explore trends in Latino home ownership. Understand the factors driving home buying decisions, the challenges faced by Latino homeowners, and the impact of home ownership on community stability and economic growth.
This SlideShare provides valuable insights for marketers, business owners, policymakers, and anyone interested in the economic influence of the Latino community. By understanding the various facets of Latino buying power, you can effectively engage with this dynamic and growing market segment.
Equip yourself with the knowledge to leverage Latino buying power, tap into their entrepreneurial spirit, and connect with their unique cultural and consumer preferences. Drive your business success by embracing the economic potential of Latino consumers.
**Keywords:** Latino buying power, economic impact, entrepreneurial contributions, workforce statistics, media consumption, education, home ownership, Latino market, Hispanic buying power, Latino purchasing power.
2. PRIMARY MARKET
Primary Market is a market wherein corporates
issue new securities for raising funds generally for
long term capital requirement.
For our purposes, think of the primary market as
being synonymous with an Initial Public Offering
(IPO).
3. INTRODUCTION
The companies that issue their shares are called
Issuers and the process of issuing shares to public
is known as Public Issue.
Entire process involves various intermediaries like
Merchant Banker, Bankers to the Issue,
Underwriters, and Registrars to the Issue etc .
4. The Primary Market is, hence,
The market that provides a channel for the issuance of
new securities by issuers (Government companies or
corporates) to raise capital.
The securities (financial instruments) may be issued at
face value, or at a discount / premium in various forms
such as equity, debt etc.
They may be issued in the domestic and / or
international market.
5. FEATURES OF PRIMARY MARKET
The securities are issued by the company directly to
the investors.
The company receives the money and issues new
securities to the investors.
The primary markets are used by companies for the
purpose of setting up new Ventures/ business or for
expanding or modernizing the existing business
Primary market performs the crucial function of
facilitating capital formation in the economy
6. ADVANTAGES OF IPO
Enlarging and diversifying equity base
Enabling cheaper access to capital
Creating multiple financing opportunities, equity
convertible debt, cheaper bank loans, etc
Increasing exposure , prestige and public image
Attracting and retaining better management and
employees through liquid equity participation
7. DISADVANTAGES OF IPO
Requirement to disclose financial and business
information
Meaningful time , effort, and attention required of
seniour mangement
Loss of control and stronger agency problems due to
new shareholders
Significant legal, accounting and marketing costs,
many of which are ongoing
8. HOW DOES IT WORK?
Preparation and Filing of Offer Document:
(i) A company wanting to raise capital from the public is required
to prepare an offer document giving sufficient information and
disclosures, which enables (potential) investors to make an
informed decision. Accordingly, the offer document is required to
contain details about the company, its promoters, the project,
financial details, objects of raising the money, terms of the issue etc.
(ii) The issuer company engages a SEBI registered merchant banker
to prepare the offer document. Besides, due diligence in preparing
the offer document, the merchant banker is also responsible for
ensuring legal compliance. The merchant banker facilitates the
issue in reaching the prospective investors (marketing the issue).
9. (iii) The draft offer document thus prepared is filed with SEBI and
is made available on SEBI’s website
(http://www.sebi.gov.in/SectIndex.jsp?sub_sec_id=70) along with its
status of processing (http://www.sebi.gov.in/PMDData.html)
Company is also required to make a public announcement about the
filing English, Hindi and in regional language newspapers.
(iv) The Indian regulatory framework is based on a disclosure regime.
SEBI reviews the draft offer document and may issue observations on
the draft offer document .
(v) SEBI’s observations on the draft offer document are forwarded to
the merchant banker, who incorporates the necessary changes and
files the final offer document with SEBI, Registrar of Companies
(ROC) and stock exchange(s). This is made available on websites of
the merchant banker, stock exchange(s) and SEBI.
10. Opening of the Issue:
(vi) After completing legal formalities, the issuer company issues advertisements
in English, Hindi and regional language news papers and the issue is open to
public for subscription.
(vii) If the prospective investor is interested in subscribing to the shares of the
issuer company based on what is disclosed in the offer document, he can apply
for its shares (or debentures) before the issue closes, by duly filling up the
application form and making the payment.
(viii) The entire back office operation of the public issue, including processing of
application forms, despatch of refunds, allotment of securities, is handled by the
Registrar to the Issue (RTI) on behalf of the issuer company.
(ix) It is to be noted that only one application per PAN is allowed in any issue. If
investor makes more than one application, all the applications are liable to be
rejected. The RTI matches applicant’s name in the application form and verifies
it against the PAN, demat account details (DP ID and Demat A/c No) and also
weeds out duplicate applications.
11. Allotment and Listing:
(x) The issue then closes (investor cannot apply beyond the closing date) and the
shares are allotted to the applicants proportionally or on lottery basis, if there is
oversubscription. The merchant banker and RTI finalize the ‘basis of allotment’.
This is approved by the stock exchange officials and the basis of allotment is made
available in the website of the RTI. The issuer company issues advertisements in
English, Hindi and regional language news papers about the issue price and basis
of allotment.
(xi) Upon allotment, investor will receive demat credit within 12 days. The
despatch of refund cheques, instructions for unblocking amount in bank account
(for ASBA) and instructions for electronic credits of refund money, is given by the
RTI within 12 days of the close of the issue.
(xii) The shares of the company are then listed on the stock exchange within 12
working days of the close of the issue. Listing of shares (or debentures) in stock
exchange enables the investor to buy securities from or sell securities to other
investors (secondarymarket).
(xiii) The complete contact details of all the intermediaries involved in an issue
namely merchant banker, RTI, banker to the issue etc. are available in the offer
document. In case the investor needs any clarification they can contact them.
12. DIFFERENT TYPES OF ISSUE
i. Public issue: When a company raises funds by selling (issuing) its shares (or debenture /
bonds) to the public through issue of offer document (prospectus), it is called a public
issue.
a) Initial Public Offer: When a (unlisted) company makes a public issue for the first time
and gets its shares listed on stock exchange, the public issue is called as initial public offer
(IPO).
b) Further public offer: When a listed company makes another public issue to raise capital,
it is called further public / follow-on offer (FPO).
ii. Offer for sale: Institutional investors like venture funds, private equity funds etc., invest
in unlisted company when it is very small or at an early stage. Subsequently, when the
company becomes large, these investors sell their shares to the public, through issue of
offer document and the company’s shares are listed in stock exchange. This is called as offer
for sale. The proceeds of this issue go the existing investors and not to the company.
iii. Issue of Indian Depository Receipts (IDR): A foreign company which is listed in stock
exchange abroad can raise money from Indian investors by selling (issuing) shares. These
shares are held in trust by a foreign custodian bank against which a domestic custodian
bank issues an instrument called Indian depository receipts (IDR), denominated in `.
13. (iv) Others -
a) Rights issue (RI): When a company raises funds from its
existing shareholders by selling (issuing) them new shares /
debentures, it is called as rights issue. The offer document for
a rights issue is called as the Letter of Offer and the issue is
kept open for 30-60 days.
b) In a Bonus Issue, the company issues new shares to its
existing shareholders. As the new shares are issued out of the
company’s reserves (accumulated profits), shareholders need
not pay any money to the company for receiving the
new shares.
14. Methods for Determining the Offer
Price
Issue Type Offer Price Demand Payment Reservations
Fixed Price
Issue
Price at which the
securities are offered and
would be allotted is made
known in advance to the
investors
Demand for the
securities offered is
known only after the
closure of the issue
100 % advance
payment is required
to be made by the
investors at the time
of application.
50 % of the shares
offered are reserved
for applications
below Rs. 1 lakh and
the balance for
higher amount
applications.
Book Building
Issue
A 20 % price band is
offered by the issuer
within which investors are
allowed to bid and the
final price is determined
by the issuer only after
closure of the bidding.
Demand for the
securities offered ,
and at various
prices, is available
on a real time basis
on the BSE website
during the bidding
period..
10 % advance
payment is required
to be made by the
QIBs along with the
application, while
other categories of
investors have to pay
100 % advance
along with the
application.
50 % of shares
offered are reserved
for QIBS, 35 % for
small investors and
the balance for all
other investors.
15. In a Book Building issue the issuer company mentions the minimum and maximum
price (price band) at which it will sell (issue) its shares. Thus the offer document
(in this case, called the Red Herring Prospectus) contains only the price band
instead of the price at which its shares are offered to the public.
Within this price band the investor can choose the price at which the investor are
willing to buy the shares and also the quantity. As this process is similar to bidding
in an auction, the application form for book built issue is also known as the bid
form.
At times the issuer may revise the price band (revision of price band) which has to
be accompanied with news paper advertisement.
Bids by various investors are entered into the stock exchange system through the
broker’s (also called syndicate member) terminal. The list of the bid received from
investors at various price bands is known as the ‘book’ and can be seen in the
website(s) of the stock exchange for each investor category.
Based on the total demand in the ‘book’, the cut off price is then decided by the
issuer and merchant banker.
16. After the allotment, a public advertisement is issued,
giving details of the issue price as well as a table showing
the number of securities and the amount payable by
successful bidders.
The merchant banker in a book built public issue is
known as Book Running Lead Managers (BRLM) and
the issues is kept open for 3‐7 working days, and is
extendable by 3 days in case of a revision in the price
band by the issuer
17. How to Read Offer Document
The offer documents lists out the facts, details and promise of the issuer
company.
Sample
Cover Page
You will find the following information in the cover page:
• full contact details of the issuer company
• full contact details of the lead managers and registrar to the issue,
• Details of the issue
o nature of the instrument
o number of security offered
o price of the security
o amount of instrument offered
o and issue size
• proposed listing details
• Credit Rating / IPO Grading
• Risks in relation to the first issue, etc
18. Risk Factors
Under this head the management of the issuer company gives its view on the
Internal and external risks envisaged by the company and the proposals, if any,
to address such risks. This information is disclosed in the initial pages of the
document and also in the abridged prospectus. The investor should read the
risk factors before taking investment decision.
Introduction
The following information / details are available in this section.
• A summary of the industry in which the issuer company operates
• The brief details of the business of the issuer company
• Summary of consolidated financial statements and other data on general
information about the issuer company
• The details of merchant bankers and their responsibilities
• The details of brokers (syndicate members) to the Issue
• In case of debt issue
o credit rating
o details of debenture trustees
• details of monitoring agency for issue size exceeding Rs.500 cr
19. Book building process in brief
IPO Grading in case of first Issue of equity capital
Details of underwriting Agreements
Details of capital structure
objects of the offer
funds requirement
funding plan
schedule of implementation
funds deployed
sources of financing of funds already deployed
sources of financing for the balance fund requirement
interim use of funds
Basic terms of issue
Basis for issue price
Tax benefits
20. About us
The following information / details are available in this section.
• Details of the business of the company
• Business strategy
• Competitive strengths
• Insurance
• Industry‐regulation (if applicable)
• History
• Corporate structure
o main objects
o subsidiary details
o management and board of directors
o compensation
o corporate governance
• Related party transactions
• Exchange rates & currency of presentation
• Dividend policy
Financial Statements
Under this head Summary Restated Financial Statements for the last five
financial statements and stub period are disclosed which includes Balance Sheet,
Profit and Loss Account, Cash Flow Statement, Notes to accounts, financial
ratios, Related Party Disclosures etc
21. Legal and other information
The following information / disclosures are available in this
section.
• Details of litigations involving
the company
the promoters of the company
its subsidiaries
and group companies
Other regulatory and statutory disclosures
The following disclosures are available in this section.
• Authority for the Issue
• Prohibition by SEBI
• Eligibility of the company to enter the capital market
• Disclaimer statement by the issuer and the lead manager
• Disclaimer in respect of jurisdiction
22. Offering information
The following information / details are available in this
section.
• Terms of the Issue
• Mode of payment of dividend
• Face value and issue price
• Rights of the equity shareholder,
Market lot
• Nomination facility to investor
• Issue procedure
o book building procedure in details
o process of making an application
• Signing of underwriting agreement
• Filing of prospectus with SEBI / Registrar of Companies
(ROC)
• Announcement of statutory advertisement .etc
23. IPO Grading
IPO grading is the professional assessment of a Credit Rating Agency (CRAs) on
the fundamentals of a company in relation to the other listed equity shares in
India. It is mandatory for the issuer company coming with initial public offer
(IPO) to obtain IPO grading from a Credit Rating Agency and disclose the same
on the cover page of offer document and Application form.
Factors considered in grading
The indicative list of areas that are generally looked into by the CRA while
arriving at an IPO grade includes:
• Business Prospects and Competitive Position
o Industry Prospects
o Company Prospects
• Financial Position
• Management Quality
• Corporate Governance Practices
• Compliance and Litigation History
• New Projects—Risks and Prospects
24. The grades
IPO grade 1: Poor fundamentals
IPO grade 2: Below average fundamentals
IPO grade 3: Average fundamentals
IPO grade 4: Above average fundamentals
IPO grade 5: Strong fundamentals
25. Credit rating
Credit rating is an opinion of a Credit Rating Agency (CRA) on the likelihood of timely
payment of interest and principal (credit risk) on the rated debt instrument.
It is an unbiased, objective, and independent assessment of the issuer's capacity to meet
its financial obligations and is conveyed with alphanumeric symbols.
(Rating category)Description (with regard to the likelihood of meeting the debt
obligations on time)
AAA Highest Safety
AA High Safety
A Adequate Safety
BBB Moderate Safety
BB Inadequate Safety
B High Risk
C Substantial Risk
D Default
57. About the Company
The 148 year old company, Tribhovandas Bhimji Zaveri,
Mumbai’s local jeweller, plans to raise around Rs. 200 crore
through 16.7 million shares.
The company is in the retail jewellery business with 14
showrooms across 5 states mainly in western and central
India.
Around 72% revenue comes from gold jewellery and 25%
from diamonds
58. About IPO
Offer Date 24 – 26 April
Price Band Rs. 120 – 126 per Share
Minimum Application 45 Shares
Reserved for QIB 50%
Reserved for Non Institutional Bidders 15%
Reserved for retail 35%
Total Amount to be raised Rs. 200 Crore
Total No. Of Share on sale 16.7 million
Got BID for 1.62 crore shares
Subscribed by 1.15 times
59. Plans
To finance establishment of new showrooms
To expand this to around 57 showrooms, adding 43 new ones
in India by 2015
To use about Rs. 20 Crore to open 9 new large format
showrooms by the end of fiscal 2013.
To finance working capital requirements
The remaining amount would be used for general corporate
purpose
60. Financial Information
In Rs. Crore FY 10 FY 11 9 Months FY 12
Net Sales 885 1194 1117
% Change 32.3 34.9 NA
Operation Profit 47 87 102
% Change 11 37.2 NA
Net Profit 17 40.4 50.5
% Change 63.5 137.6 NA
62. Day 1 trading
122
120
118
116
114
112
110
108
106
104
Open High Low Close
BSE
NSE
Listing Day Trading Information
BSE NSE
Issue Price: Rs. 120.00 Rs. 120.00
Open: Rs. 115.00 Rs. 115.05
Low: Rs. 110.00 Rs. 110.50
High: Rs. 119.80 Rs. 120.00
Last Trade: Rs. 111.20 Rs. 111.00
Volume: 1,157,892 1,253,983
63. Strength of TBZ
Strong and trusted Brand Name
Focus to develop new design and products by understanding
customer requirement with constant interaction
The company has substantial experience in expanding
operations and managing the launch of new showrooms.
The company has its own manufacturing facilities in Kandivali
with a carpet area of 5,755 sq. ft.
64. Weakness of TBZ
Inventory risk and gold price fluctuation is also high
Working capital situation of the company is not good
Financial performance of the company is also not encouraging
Peers are doing good in compare to TBZ
65. Opportunities for TBZ
Branded retail chains are expanding their presence by creating
growth opportunities in jewellery market
The Indian gold jewellery sector accounted for 61% total domestic
gold demand in 2011
It is expected that domestic industry to grow at a CAGR of 10% –
12% up to 2015 because of:
Higher disposable income
Rising young population with the urge to spend
Higher no. of women investing her saving in gold/diamond
jewellery
Conscious marketing efforts by companies
Steady rise in gold prices across the global market.
66. Threats of TBZ
There is intense competition in the jewellery retailing market
Branded players are also willing to expand
Devaluation of gold may affect the business
The company has not registered its jewellery designs so it could be
duplicated by competitors
The new tax policy where the customer has to give his/ her PAN
number on purchase made above `5 lakh is likely to hinder the
business.
67. Future Strategy of TBZ
The company is planning to add 43 showrooms by end of fiscal
year 2014
It is building additional facility at Kandivali with a carpet area
of Approx. 17739 sq. ft.
Increasing marketing activities to increase footfalls and sales at
showrooms.
Focusing to increase its diamond studded jewellery sales which
will improve its overall profit margin.
68. Conclusion
IPO of TBZ got moderate response because:
The Shares are offered quite expensive in compare to its peers
As it intend to utilize 70% of its raised funds for working capital
needs , this may affect the performance of the company.
The opening of new stores will mount pressure on profitability due
to time taken for break-even of new stores, higher marketing
expenses and working capital requirement
Even though the gross margin in the gold segment is around 10.86
%, while that in the case of diamond jewellery is around 36 %,
company intent to invest in gold business.