The primary market is in a deep slumber

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The primary market is in a deep slumber. Even the renewed indications of a global meltdown have just started creeping in. So the simplest thing for the companies planning to dive into the capital markets now is to wait and watch, feels Gyanendra Kashyap...

Samat is literally terrified at the mere mention of an IPO (Initial Public Offering); and why not, his euphoric success in terms of gains from IPOs has dampened like never before. Little did he realise the strong correlation between the primary and secondary market – as the secondary market tanks the primary market goes in for a long slumber. Like anyone else he too was taken in by the fact that the 2007 success story of IPOs (wherein 3 out of every 10 gave returns of more than 100%, 3 eroded the shareholders wealth and the remaining gave returns much higher than the benchmark index) will continue in 2008. To add to the greed of Samat and his ilk, the January sell out of the largest IPO, Reliance Power, which sucked Rs.100 billion out of the market within minutes, laid a solid foundation for bullish expectation from the market in the future to come. But unfortunately, the bullishness started and ended there. What happened to Emaar MGF and Wockhardt’s fund raising plans thereafter is well known. Well, the secondary market which was at its meteoric heights early on in the year has so far tanked over 30% and moving parallel the primary market offerings have also witnessed a sharp decline (35 in first 7 months of 2008 as compared to 65 for the same period in 2007).

Meanwhile, one can see a few gladiators marching ahead to reverse the situation. But, the question remains, will the forthcoming big IPOs be able to woo institutional as well as retail investors and help the market get going? Samat who has burnt his fingers avers, “Capital markets and investor sentiments determine the success of an IPO; as compared to last year the public markets today are not so receptive to IPOs.” Sounds logical indeed!

The non receptiveness of the market was very much evident during the Emaar MGF IPO process, wherein despite two rounds of price cut and a deadline extension it failed to attract investors and finally had to withdraw the IPO from the market. A very similar story holds true for Wockhardt. Both the companies moved out of the market citing the adverse market conditions. The fact that IPOs just do not happen in a free fall corrective market is reflected by the retardation in the number of listings (75, 96, 112 and now 35 respectively in 2005, 2006, 2007 and 2008 year to date).

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Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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The banking revolution begins now!

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But issues like security & inter-operability need to be addressed first

Banking is all set to don a new face with mobile convergence...
Navin Thangiah, Director, Market Development,mChek


The mobile phone has revolutionised the way we interact with each other; everyone and everything is just a phone call or an SMS away. Consumers are now demanding the same convenience and instant access in other aspects of life; ‘anywhere, anytime’ has become the norm. Businesses have realised this trend and are exploring ways to satisfy this demand.

The mobile phone is today our personal ‘smart’ device and our mobile number has become our primary identity. One of the first applications of this is in the field of ‘identity management’; use of the mobile phone as a personal authentication and authorisation device. This is at the core of most mobile wallets, a mobile application residing on the consumers mobile and accessible only with a PIN that is created by the user on his phone and hence known only to the consumer. A financial and transactional layer is then built on top of this platform. The transactional layer comprises of various financial instruments like a credit card, debit card, bank account that the consumer can ‘add’ to his mobile application and use as the source of funds for transactions. The transactional layer enables the application to interact with a common payment network that allows the money to be sent to the biller’s account.

While the concept is simple there are many practical issues like security, inter-operability and simplicity that need to be addressed before choosing the right solution. In fact, mChek solution is now focusing on building a simple secure platform that can work across banks and operators without influencing their existing relationship with their respective consumers.

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Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
IIPM Programme :- SUPERIOR COURSE CONTENTS
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IIPM INTERNATIONAL - NEW DELHI, GURGAON & NOIDA
IIPM - Admission Procedure
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IIPM’s 36th Glorious Year of Academic Excellence
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HP LaserJet M1522n MFP

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Technical Specification

Print speed (black, normal quality, A4) Up to 23 ppm; Print quality (black, normal quality) Up to 600 x 600 dpi (1200 dpi effective output); Maximum output capacity (sheets) Up to 125; Duplex print options Manual (driver support provided).
PRICE: Rs.21,599
WARRANTY: 1 year limited warranty

A number of features like the 2-line LCD text display, alphanumeric buttons, navigational buttons plus 2 LEDs (setup, up, ok, down, back, cancel) along with copy buttons (start copy, reduce/enlarge, lighter/darker, quality, number of copies) and 2 scan buttons (start scan, scan to) makes this printer sparkle. The product is embedded with software like HP Toolbox FX, HP LaserJet Scan, TWAIN 1.9 or WIA scanner drivers, Readiris PRO text recognition software. The printer consumes 410 watts of maximum (active/printing), 325 watts maximum (active/copy or scan), 10.5 watts maximum (ready/sleep). All these features not just make the print quality awesome, but also with the sort of speed it can print pages at, this printer is just the right choice for business entities.

Marketers’ delight: For corporates, it is certainly the right choice. One time investment and one can simply forget all print-out related problems as this is one answer to all those problems

Tester’s Note: Pros – The printer has a user friendly interface (ease-of-use) and spectacular print speeds. Con – The copy mode for graphic/visual is a real letdown as most people buying a multi-functional printer intend to use it at least in part as a photocopier.

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Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
Now IIPM's World-Class Education... for everybody!!
IIPM INTERNATIONAL - NEW DELHI, GURGAON & NOIDA
IIPM - Admission Procedure
IIPM, GURGAON
IIPM : EXECUTIVE EDUCATION
IIPM’s 36th Glorious Year of Academic Excellence
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4Ps Power Brand Awards 2007
When IIPM comes to education, never compromise
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IIPM Ranked No. 1 B-School In Global Exposre - Zee...

ACER Aspire 5920

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Technical Specification

Operating System: Microsoft Windows Vista, Microsoft Windows Vista Ultimate; Processor Name: Intel Core 2 Duo T7300 / 2 GHz; RAM: 2 GB / 4 GB (max); Screen Size: 15.4; Storage Capacity: 200 GB
PRICE: Rs.74,990;
WARRANTY: 1 year

Acer Aspire 5920, though bulky is a great choice for consumers who are looking for a media friendly laptop with a highly portable HD DVD player, which can be plugged into their home theatre systems. The high end features further include HDMI-out, S/PDIF, and Dolby Home Theater sound. The machine also has a long battery life, with storage HD capacity upto 200GB! However, issues like a wobbly display, and too glossy a screen result in distractive reflections and a low native resolution. So what’s the distinguihing feature available at this price point? As per a South Delhi dealer, “It’s the Nvidia 8600m GT video card. Though it’s not the DDR3 version, yet it can be counted amongst the fastest 8xxx GPU.”

Marketers’ delight: It’s a definite yes for movie lovers, with surround sound enhanced capabilities.

Tester’s note: Pros – Dolby 5.1 surround sound. High-quality webcam. Con – Screen resolution poor.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
Now IIPM's World-Class Education... for everybody!!
IIPM INTERNATIONAL - NEW DELHI, GURGAON & NOIDA
IIPM - Admission Procedure
IIPM, GURGAON
IIPM : EXECUTIVE EDUCATION
IIPM’s 36th Glorious Year of Academic Excellence
IIPM Ranked No. 1 B-School In Global Exposre - Zee...
4Ps Power Brand Awards 2007
When IIPM comes to education, never compromise
IIPM is A World of Career
Why Study Abroad When IIPM Gives You 3 global Advantages!
IIPM Ranked No. 1 B-School In Global Exposre - Zee...

The Russian economy faced a trial by fire in 1998, but has been on the rebound since

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There were too many reasons which led to the financial crisis of 1998 in Russia. It wasn’t obviously a one year thing but a long-lasting line of developments, which “prepared” the crisis. It was the absence of well thought out economic policies, weak monetary and fiscal conditions, a full collapse of control mechanism as far as the execution of laws was concerned, and, certainly, the unfavourable external conjuncture with the Asian crisis that led to the downfall of the ailing Russian economy.

It was liberalisation of prices and extrusion of domestically produced goods from the Russian market, which consequently decreased the tax base along with budget revenues, eventually leading the way to the budgetary crisis. Real tax rates were increased, but the collection of taxes was very poor. According to several sources, only 16% of the total enterprises paid taxes in Russia in 1998 with 40% of the economy functioning in shadow. Money laundering was prospering too. Actual inflation figures were intentionally lowered by decreasing social taxes and increasing deferred inflation (currency depreciation, non-payments, increasing of internal and external State debt, et al) which was already out of the State’s control way back in 1995-96. Attempts to curb this inflation with decreasing of money base led to a shortage of cash to serve commodity turnover. This absence of cash to pay taxes & salaries intensified the budgetary crisis and resulted in a flow of non-payments and high volume of barter deals.

Moreover, monetisation of the Russian economy was at 10% of GDP while the common figure for developed countries stood at 70% of GDP. If the State has no revenue, it has to either issue money or issue debt. Russia chose the second variant. The government started to finance budget deficit through borrowing. GKO pyramid started to develop and was promoted with non-residents getting an access to this market, which also fed speculative blowing of Russian stock market (in 1996-1997 it grew by almost 5 times) and further refusals to pay back debts, which the was not possible for the country to service. Privatisation led to the appearance of the institution of private owners, many of which were not effective. It also brought a spike of crime. However, I could not say that everything was done wrong. The situation was difficult and I am sure that in many cases there was no alternative in decision making.

Liberalisation was essential for the transition to market economy. In the result of a deformation of planned communist economy, GDP fell sharply: ~25% cut from GDP was due to a decrease of war production, ~15% cut due to a decrease of the production of consumer goods of low quality, which were previously bought due to the absence of alternative choices. However, on the other hand, the ruble was depreciating in the currency market and its declining demand was partially explained by the fact that companies, for example, could not care less about paying taxes because of the poor State control.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
IIPM - Admission Procedure
IIPM, GURGAON
IIPM : EXECUTIVE EDUCATION
IIPM’s 36th Glorious Year of Academic Excellence
IIPM Ranked No. 1 B-School In Global Exposre - Zee...
4Ps Power Brand Awards 2007
When IIPM comes to education, never compromise
IIPM is A World of Career
Why Study Abroad When IIPM Gives You 3 global Advantages!
IIPM Ranked No. 1 B-School In Global Exposre - Zee...