To help investors and companies in IPOs, Sebi on Tuesday (23 June) halved the listing time to six days from the date of the public offer and also allowed a larger number of firms to tap the "fast-track" route for raising funds. Currently, the companies are required to list their shares on the stock exchanges within 12 days of the last date of the IPO (Initial Public Offer) process, thus keeping the funds locked in for a longer period of time. The shorter time period, which would come into effect from January 1, 2016, would also help reduce the costs associated with the public offering, Sebi Chairman U K Sinha said after a meeting of the regulator's board. However, investors will have to wait for making the IPO process entirely online in terms of submission of their bids. While Sebi has provided for online submission of bids from terminals of market entities, the same from any computer or mobile will take some time. The Sebi board also decided to allow a larger number of companies to raise funds through a 'fast-track' process. A company with public shareholding worth Rs 1,000 crore can raise funds through FPOs under fast-track mode, down from Rs 3,000 crore requirement earlier. Disclosure norms for start-ups listing in the alternative trading platform would also be diluted, Sinha told reporters after the regulator's quarterly board meeting. For rights issues, the fast-track route can be availed by companies with public shareholding worth as low as Rs 250 crore. Sebi also said that ASBA (Application Supported by Blocked Amount), which refers to an application mechanism for subscribing to IPO with the bid amount blocked in a bank account rather than that being debited, will be applicable to all kinds of investor categories and all IPOs. Sinha said that the number of bank branches with ASBA facility has increased to 95,500 now, from 9,800 when this facility was introduced. "Now all applications can be be ASBA supported and investors would not suffer any loss of interest, while refund of money would not be a problem," Sinha added. He also said that the Sebi board has decided that depository participants and registrars can also receive IPO applications. "In order to help the intermediaries and the system prepare for it, it will be applicable from January 1, 2016. Any IPO ready for subscription as on that date would be through the new mechanism," Sinha said.(PTI)
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To bolster corporate governance at listed companies, Sebi on Tuesday (23 June) cleared a new set of norms for re-classification of promoters, whereby an outgoing promoter would have to forego control and all special rights and dilute stake to 10 per cent to become a public investor. However, an outgoing promoter can continue to hold CEO or other such senior positions for up to three years, if approved by the board as well as shareholders of the company. While tightening the noose on defaulting promoters, the revised regulations would also help those who wish to move out of day-to-day running of the company while remaining invested in the company. Addressing reporters after conclusion of its board meeting here, Sebi Chairman U K Sinha said new regulations have been approved for re-classification of promoters. Under the new norms, the outgoing promoters cannot have more than 10 per cent shareholding. Besides, they cannot be in control of the company directly or indirectly, or special rights, Sinha said. Among others, such a person can remain in the position of managing director at the company only for up to three years. These norms would help put in place a stricter regime to prevent outgoing promoters from continuing to exercise their control on the company through direct or indirect means. In addition, the regulations would have a significant impact on cases involving corporate restructuring that take place due to disputes among members of business families or after settlements between rival corporates, among others. Earlier, the regulatory framework did not prescribe any specific criteria for such re-classification, which Sebi feels is required to lend objectivity to the process of reclassification of promoters of listed companies as public shareholders under various circumstances. Such erstwhile promoters would not exercise, directly or indirectly, any control over the affairs of the company or any of the group firm. However, they would not be debarred from accessing the capital market. The Securities and Exchange Board of India (Sebi), in its draft paper on re-classification of promoters released last December, had proposed that it would be carried out in three scenarios -- open offer, separation agreement and promoter group shareholding less than five per cent in a company. In the draft norms, Sebi had prescribed that such promoters would not be allowed to hold any key management positions. But it has now relaxed this provision by allowing them to hold such positions for up to three years on approval of the company's board. (PTI)
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Abu Dhabi-based Etihad Airways denied a media report on Tuesday (23 June) that it is in discussions with the Indian government to raise its 24 per cent stake in Jet Airways. Citing unnamed government sources, Bloomberg TV India said in a report earlier on Tuesday that Etihad had approached the ministry of civil aviation for permission to buy more of Jet, the country's second-biggest carrier by market share. "We are not in discussions with the government about raising our stake in Jet Airways," an Etihad official said in an emailed statement. Etihad bought a stake in Jet, which has not made an annual profit since 2007, two years ago, giving it a foothold in India's fast-growing aviation industry. Shares in Jet closed up 2.44 per cent on Tuesday against a 0.27 per cent rise in the benchmark .A spokesman for Jet did not immediately respond to a request for comment.(Reuters)
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Currently, there are 14 companies with Sebi approval in the pipeline waiting to raise Rs 6,500 crore, writes Paramita ChatterjeeEven as the GDP growth numbers are projected to improve with better prospects for the economy going forward, the IPO market continues to be sluggish. In the first two months of the current fiscal, as many as 4 IPOs were launched with companies raising Rs 1,880 crore, as per data available with Prime Database, the country's first database dedicated to the capital markets. These are by transport firm VRL Logistics, UFO Moviez India, a digital cinema distribution network and in-cinema advertising platform, the Agra-based PNC Infratech and toll management company MEP Infrastructure Developers. The total number of IPOs in the previous fiscal (2014-15) stood at 8 with companies raising a meagre Rs 2,770 crore. As per market analysts, there are several reasons behind this slow takeoff. While Sebi’s revised eligibility norms have limited potential issuers, greater disclosures and higher due diligence by the investment bankers are taking much longer time,” said Prithvi Haldea, Chairman at Prime Database. Also, the corporate sector is yet to start reporting better numbers and until that happens, the stories would be weak leading to lower valuations, he added. Currently, there are 14 companies with Sebi approval in the pipeline waiting to raise Rs 6,500 crore while another 8 companies are awaiting approval from the market watchdog to raise Rs 2,700 crore. “Despite the positive sentiment in the capital market over the last one year and visible green shoots of recovery, the primary market has not fully revived compared to the secondary market,” said Jagannadham Thunuguntla, Head of Fundamental Research at Karvy Stock Broking Limited. While the market requires a few success stories (great post-listing returns) that would prompt people to look at the IPO market seriously, investors continue to believe that there is still an upside available in the secondary market, where risks are comparatively lower and therefore are putting their money there directly or through the mutual funds. However, going forward, the current fiscal is expected to see a couple of IPOs, if not a not a flurry of them with overall sentiments improving. The current pipeline is very strong and many of these IPOs would be led by private equity firms who are looking at an exit.
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Juvo Online Services Pvt Ltd, has launched www.officejuvo.com, an online commercial peer-to-peer marketplace.Commercial Real Estate has been a long neglected area in the online space and apart from skeletal listing services online, the market is controlled by real estate agents. This leads to lack of transparency and high dependence on brokers and thus escalating finding cost for seekers.It aims to correct this anomaly, by providing verified information to the seekers in a user friendly, image intensive user interface.T. Shrikanth CEO, OfficeJuvo, said, “Finding an office space or a storefront is a real pain. There is no information available and whatever little is available, it is not trustworthy. Our team contacts the owners directly and personally verifies the premises before uploading the information. We not only want to remove the information asymmetry, but also eliminate the real estate agent layer from the transactions and bring down the cost of finding commercial spaces for seekers. Yes, we even want them to save money on site visit costs and of course we don’t charge them anything either.”Office Juvo was test launched in Chennai in February and in a very short span has found immense traction. Today it boasts having the largest database of commercial properties in Chennai, all relevant and verified.The Juvo team which has a combined experience of 35 years in the Internet Space in India and 10 years especially in the property marketplace.
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Razorfish’s Chief Technology Officer, Ray Velez makes a very simple argument – the advertising and marketing industry is after all an industry. Like any industry, it would seek to do things in cheaper and faster ways, and by that logic, the business is headed to a place where algorithms will take over a massive load of the way work is done. “It does not mean we will not have our jobs,” said Mr Velez, adding, “It just means that our jobs will be a lot more meaningful." Velez foresees four challenges that face the business in its future, and how best to address these. Brand loyalty will become extinctAccording to Mr Velez, due to information overload, the shift to word of mouth and influence of online reviews would be strong once again. Being consumer first would no longer be an option but basic expectation. “Brands need to design products and communication around consumers and cannot have short term sales targets. The future would be about disruptive businesses, and not just advertising,” he said. His advice is to consistently develop the product and make a commitment to being in a beta, constantly testing and improving state. The unconnected world would be connectedThe future will see the next billion come online. Connection will increase across geographies, and for some of these markets the need to educate and enable will arise before advertising. “Let the needs of the unconnected guide the future of the business,” Mr Velez said. Great brand experience will liberate us from screenWe often talk about technology and the role it plays, but for technology to work, it has to be seamless and not stand out. “The internet was about reaching information to people than being connected to a screen. We have to return to the idea of experience and bypass screens altogether,” Mr Velez said. He urged marketers to design for human interface and not screens. “Think like a super computer. Make your company part of a mesh to collaborate with different expertise and create a great experience,” he remarked. In 10 years, your agency will be an algorithm“We work in an industry, and it is all about working faster and cheaper. There is a possibility that algorithm will create a piece of advertising and our goal as marketers is to give people what they want, when they want it and how they want it. We are headed into a future where machines will play a stronger role in achieving that. The important thing from here is how we behave and adapt to the changes so that we play a meaningful role in the future,” Mr Velez summed up.
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The telecom brand of Tata Teleservices, Tata Docomo, has announced an innovatively series of unlimited voice and 3G data combo plans for post paid customers in Karnataka with various price points starting from Rs 350, Rs 899 and Rs 1299 respectively. The 899 plan especially targeted towards the independent working class offers its users the benefit of STD, national roaming and unlimited 3G Data at 2GB speed to choose from along with unlimited local calling throughout the month.Customers opting for the 350 plan can avail unlimited 3G Data (1GB @ peak speed, post that unlimited at throttled speed) 500 national/local minutes along with 350 national/local SMS. Whereas the ones opting for the 1299 plan would be able to avail all the above mentioned services namely unlimited local calling, STD, National roaming, 3000 local and national SMS along with unlimited 3G Data (2GB @ peak speed, post that unlimited at throttled speed ) for an entire month.“These offers targets to the low, moderate as well as high end users in the region and offers a mix of voice and data offers which best suits their needs at the same time . With this unique proposition offer we have taken one more step further to offer our Karnataka customers with tailor made products. To enable good internet experience Tata Docomo provides expansive 3G Network and great value 3G products and offers that addresses“These offers targets to the low, moderate as well as high end users in the region and offers a mix of voice and data offers which best suits their needs at the same time. With this unique proposition offer we have taken one more step further to offer our Karnataka customers with tailor made products.” said Ashok Ghose, Mobility Business Unit Head, Karnataka and Kerala, Tata Teleservices.
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The Hero Group—primarily known for manufacturing motorcycles—will enter the electronics sector by acquiring a majority stake in Mybox Technologies Pvt. Ltd, which makes set-top boxes (STBs) in India, according to an official statement on Monday. It announced the formation of a new company, Hero Electronix, which will spearhead the group's activities in the segment. Suman Kant Munjal, who has been named the chairman of the new company said, "Hero Electronix would add associated business lines to its portfolio over the next few years and grow the vertical "to help India develop a much needed sustainable electronics ecosystem". “The company has lined up investments of Rs.500 crore in the next few years. This will give a huge impetus to the ‘Make in India’ initiative by helping reduce imports of electronics into the country,” Munjal said in a statement. "Hero Electronix sees immense potential in Mybox and its management team. Using its core competence in hardware and embedded systems design, Mybox is strategically focusing on fulfilling the demand of digitisation in India, while simultaneously developing products for the world," Hero Group said in its statement. Mybox is a venture recognised by the government and approved by Department of Scientific and Industrial Research. The $5 billion Brijmohan Lall Munjal-led Hero Group has presence in over a dozen business verticals, with its two-wheeler firm Hero MotoCorp being the flagship. India's electronic goods import grew by 14.85 per cent to $37.19 billion in 2014-15 from $32.38 billion in the previous fiscal. The sector accounts for over 8 per cent in the country's total imports.
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