Source : The Economic Times
Dated : 15/12/2006

Indians are turning out to be preferred acquirers for investment bankers in the West with a sell mandate. Indian corporates are being seen as job creators as against private equity investors who are seen as asset strippers.

Speaking to ET, I-Sec managing director S Mukherji said that one of the biggest investment banking opportunities for the company was cross-border acquisitions. “Right now, most investment bankers in the West have sell mandates. On the buy side are private equity investors,

Chinese and Indian corporates. Indian corporates are turning out to be preferred buyers because most of the Indian acquisitions overseas have done well, and there is a very good feedback about them.”

The reason why overseas sellers prefer Indian acquirers is that employment tends to go up after an Indian acquisition since Indian corporates use the company as a platform for overseas expansion.

A lot of Indians are buying front-end to move up the value chain. They are buying loss-making businesses and making them profitable. According to Mr Mukherji, he expects to see action in overseas expansion in auto components, textiles, pharma, pulp and paper, iron ores and engineering. In addition, Indian corporates are actively looking for acquiring global FMCG brands.

On the retail broking side, I-Sec sees a huge opportunity as the share of equities improves significantly in household savings. “From just about 1%, equities have grown to account for 6% of the household savings.

Given the size, even a 1% increase is a massive amount,” said Mr Mukherji. I-Sec already has a sizeable chunk of the online broking market. Of the 1.9 million registered online broking account holders in the country, ICICI Direct has close to one million.

“As of now, only 0.7% of India’s population is demat-enabled, which means there is a huge potential waiting to be tapped in the retail brokering segment. As the leader with one million online broking customers, we intend to capitalise on this large untapped market and expand our retail broking business,” said Mr Mukherji. He added that considering that internet broking services are turning to be a commodity, advice will be the major differentiation. The company plans to leverage its capabilities in research for this purpose.

I-Sec has inherited a sizeable retail broking business following the merger of group company ICICI Web Trade with I-Sec’s broking subsidiary. This new business unit is expected to contribute a third of the company’s revenues, with investment banking and bond trading also contributing equally. I-Sec, which is already into IPO distribution, is planning to convert the first time equity subscribers into internet account holders.

Are you missing CNBC when you are in the office or out of your house.An easy way to get the complete CNBC on your PC!!!

Yup!!! CNBC(Asia) is now available on a Podcast.

What is PodCasting?

“A podcast is a multimedia file that is distributed by subscription (paid or unpaid) over the Internet using syndication feeds, for playback on mobile devices and personal computers[1]. Like ‘radio‘, it can mean both the content and the method of broadcast. The latter may also be termed podcasting. The host or author of a podcast is often called a podcaster.

Though podcasters’ Web sites may also offer direct download or streaming of their content, a podcast is distinguished from other digital audio formats by its ability to be downloaded automatically using software capable of reading feed formats such as RSS or Atom

Want to know more about PodCasting,than check out the Wiki

Simple steps to get CNBC Podcast:

1. Download any player(capable of playing Podcast) from the internet like Apple iTunes

2. Go to CNBC Asia-PodCasts

3. Now,if you have iTunes installed in your PC,than just click on “Subscribe with iTunes” or click on “Subscribe to Podcasts” to get the complete listing of the podcasts under that particular category.(Click on the image to enlarge)

4. Now you are all set the listen to the Podcast of your choice.Click on “GET” to listen to a particular podcast.Experience the joy of listening to the interviews of your favourite CEO’s on the internet through CNBC PodCast(Click on the image to enlarge).

Source : The Economic Times
Dated : 10/12/2006

Cairn India Ltd will on Monday open India’s biggest ever initial public offering (IPO) that will put the company among the top 25 listed corporates ahead of the recently-listed Reliance Petroleum Ltd.

“Our issue of 328.79 million equity shares in the price band of Rs 160 to 190 opens on December 11,” CIL CEO Rahul Dhir told reporters here.

Cairn will garner at least Rs 5,260 crore and a maximum of Rs 6,247 crore. If it exercises an option to retain over-subscription of up to 4.9 crore shares, the proceeds would be a minimum of Rs 6,050 crore and a maximum of Rs 7,184 crore. The issue closes on December 15.

The IPO will be bigger than NTPC’s issue that garnered Rs 5,368 crore, Tata Consultancy Services’ Rs 4,990 crore, ICICI’s Rs 3,528 crore, Reliance Petroleum’s Rs 2,790 crore and Jet Airways’ Rs 1,942 crore public issues.

The IPO is 18.6 per cent of the fully diluted post-issue equity capital of Rs 176.43 crore. At the upper band, the company could touch a market capitalisation of Rs 33,500 crore, higher than RPL’s Rs 29,180 crore on the BSE.

Cairn, whose Rajasthan oil discovery was the largest find in more than two decades, has already done a pre-IPO placement of 209 million shares, majority of which was picked by Petronas of Malaysia.

Dhir said Cairn plans to begin production from Mangla, Bhagyam and Aishwariya fields, the first three of the 19 discoveries in the Rajasthan block that established ultimate reserve of 3.6 billion barrels, in the first half of 2009. Initial production will be about 100,000 barrels per day, peaking to 150,000 bpd in 2010.

“The peak production will last for four years but we can keep the output at 150,000 bpd for another six years through enhanced oil recovery (EOR) project,” Dhir said. He said Cairn plans to invest 1.2-billion dollar in developing the three fields in the Rajasthan block and another 150-million dollar in exploration.

The company has already tied-up a credit line of 850 million dollars and 600 million dollars from the IPO proceeds would be retained by Cairn India. Cairn Energy Plc of UK will retain 69.5 per cent in Cairn India after the IPO.

Besides the Rajasthan block, Cairn India has 22.5 per cent stake in the offshore Ravva field, which is currently producing around 50,000 barrels of oil per day. It also operates Lakshmi and Gauri oil and gas fields in Cambay basin.

Source : Economic Times Network
Dated : 10/12/2006

Infosys Technologies, the country’s second biggest software services exporter, just clinched yet another unique distinction.

It became the first Indian corporate to be included in a global index when NASDAQ announced that it had chosen the company to be a part of the NASDAQ-100 Index effective market opening on Monday, December 18, 2006.

This comes at a time when Infosys is celebrating its silver jubilee anniversary. It now joins the ranks of Google, Microsoft, Oracle, Apple, Intel and Yahoo which form part of the NASDAQ-100.

On the NASDAQ, the Infy scrip closed at $55.03 (up 0.7%) on Friday with volumes of 2.07 million shares although on the National Stock Exchange(NSE) in India the scrip closed lower by 1.27% at Rs 2,195.55. At the time of ranking, Infosys ADS had a market capitalisation of $5.6 billion on the NASDAQ. On the NSE Infy ended on Friday with a market capitalisation of Rs 1.21 lakh crore.Besides Infosys, the other two stocks to be added to the NASDAQ-100 include Level 3 Communications Inc and Vertex Pharmaceuticals.

The NASDAQ-100 comprises of the 100 largest non financial stocks listed on the NASDAQ. Infosys, Level 3 and Vertex come in place of JDS Uniphase Corporation, Lincare Holdings Inc and Urban Outfitters Inc.

“The NASDAQ-100 Index is one of the world’s most recognised benchmarks that owes this distinction to its components-companies that are leaders in a diverse range of industries,” said John L Jacobs, executive vice-president of NASDAQ.
The inclusion of stocks into the NASDAQ-100 happens on the basis of a re-ranking exercise which is carried out each December.

“We are delighted to hear about the inclusion in the NASDAQ-100 Index. Companies like ours are helping corporates worldwide to effectively compete in a flat world,” said V Balakrishnan, CFO.

The Infosys inclusion comes after the company launched its third sponsored ADS issue which saw the floating stock increase in the international market (NASDAQ). Currently close to 20% of the Infosys stock is available on the NASDAQ.

As a part of the index, the Infy scrip will now be included in the NASDAQ-100 Index Tracking Stock, an exchange traded fund (ETF). The NASDAQ-100 along with NASDAQ Financial-100 Index were launched way back in January 1985.

It was 9th of December,2006(06:30 PM) and I was very much delighted to be present at the inauguration of the book “The High Performance Entrepreneur” by Subroto Bagchi,COO of Mindtree Consulting at the Crossword book store,Indiranagar,Bangalore.

Along with Mr Bagchi,was also present at the occasion.

Now it was a big surprise!!!Guess what,Mrs Sudha Murthy(wife of Mr Narayan Murthy) was also present to convey her best wishes to Mr Bagchi.

There was no speech by Mr Bagchi but instead there was a small movie in which he showed the interviews of the three entrepreneurs about whom he has mentioned in his book.They are

  1. V.G.Siddartha,MD of Cafe Coffee Day
  2. Captain Gopinath,MD of Air Deccan
  3. Dr Kiran Mazumdar Shaw,MD of Biocon

They shared their experiences as an entrepreneur and also the various problems they encountered(in the process of being an entrepreneur), before they became successful(no one is very successful).

A small conversation with Mr Bagchi:

My Question:
How does a person decide when to start?
I think you are still 32/33(I laugh -:) I am only 26…He apologizes) , “As you might have read the first chapter in my book which mentions the same thing.It is your inner gut feeling which would tell you that it is the right time to start.But your vision should not be short sighted but you should strive to build a successful organization”.
“Entrepreneurs not only create wealth for themselves but also create jobs,which in turn contribute to the Indian Economy”

My Question:
“I have very few friends and if you see all the great organizations(eg. Google,Infosys,Microsoft etc) have been founded by a group of people(mainly friends).So,can a single person be successful to create a great organization”?
Laughs……”Yes,what you have told is correct.Most of the successful organizations have been built by people(but not friends) , who come from different domains(eg Technical,Finance,Management etc) and which will help you to make a great team and would help to grow your organization to greater heights.”
Just like you , I also have very few friends and it is not these friends who would help you to build a great organization.I dont go to bars,dont play golf,dont go to parties.Hence,I have less friends but I have a big friend circle in the business domain.These are the friends(who come from the same field) with whom you can team and start your organization.

The “India Business Leader Of the Year” awards is a celebration of Indian entrepreneurship.It is one of the most premier honor for India’s business leaders.

The winners in different categories are given below:

The CNBC-TV18 Outstanding Business Leader of the Year
KV Kamath, MD & CEO, ICICI Bank
The CNBC-TV18 Indian Businesswoman of the Year
Kiran Mazumdar Shaw, Chairman & MD, Biocon
The First Generation Entrepreneur of the Year
Kishore Biyani, MD, Pantaloon Retail
The Indian Global Achiever Award
Lakshmi Mittal,Chairman Mittal Steel
Lifetime Achievement Award
NR Narayana Murthy, Chief Mentor, Infosys
Social Enterprise of the Year
Elaben Bhatt, Founder , SEWA
Most Outstanding Contribution to the Cause of Indian Business
M Damodaran, Chairman, SEBI
Most Promising Entrant into the Big League
Tulsi Tanti, Chairman, Suzlon Energy
The India Business Leader of the Year
Anand Mahindra, VC & MD, M&M
India Innovator of the Year
Uday Kotak, VC & MD, Kotak Mahindra Bank
The India Corporate Citizen of the Year
Cipla India
The Talent Management Award
Ranbaxy Laboratories