SEBI intervenes to protect investor interests, proposes stricter regulations for Start-up IPOs “Too much of anything is the beginning of a mess” 2021 is turning out to be the paramount year for tech-savvy start-up IPOs. With debatable valuations, over-optimistic investors and buoyant markets, we saw a loss making Zomato’s stellar opening (although a desperate contingency […]
Start-up IPO frenzy – The Watchdog is back in Action Read More »
Be it the local Kirana shop, the Autowala or the vegetable vendor, Forgot your wallet, just ‘Paytm karo’ No Change, just ‘Paytm karo’ Be it Demonetization, Digitization, or the Pandemic, India, moving towards a digital economy, Going cashless, just ‘Paytm karo’ The phrase ‘Paytm karo’ is imprinted in the minds of the Indian consumers when
The Paytm IPO – A Speculative bet or a Prudent investment Read More »
“Arriving there is what you are destined for. But do not hurry the journey at all…” Never had someone imagined that these few lines of a poem (Ithaka) can be the inspiration behind a successful business start-up, a unicorn valued more than USD 7 billion and the first profitable one to raise an IPO. Most
The Start-up IPO Hustle – Nykaa\’s dream debut Read More »
Start-ups have become an inevitable part of our lives. Our day begins with grocery delivery from Big Basket to travelling to work in an Ola, making payments through Paytm, Mobikwik, etc.; ordering food from Swiggy or Zomato to check the latest shopping trend on Flipkart, Nykaa, etc. As Indians, we take pride in the rise
The Journey: Start-up to a Unicorn to a Public Limited Read More »
Entrepreneurs of start-up companies often forego their salaries and sweat out to make the company work. There is often a doubt of whether a company can issue shares without consideration – or cash consideration. It is well established that a promoter or shareholders may bring in cash or other forms of asset to start or
Can companies issue shares to employees without cash? Read More »
Let us simply picture a company as a cash-based entity. Cash flows into the company in the form of revenue as it sells its products and services, and cash flows out as it pays its cash operating expenses such as salaries and taxes (except for interest expense which is a financing expense and not an
Understanding Free Cash Flows Read More »
Valuation during Covid-19 brings a new set of challenges for the valuers and analysts. While assessing the value of businesses, the valuers must keep in mind that while most businesses have been hit negatively, some businesses have benefitted from the pandemic as well. Some of the key factors impacting business value includes, dependence of business
Valuation during Covid-19 Read More »
Companies often have multiple businesses across different segments. A company may require to \”hive off\” one of its businesses/segments, with a set of assets and liabilities assigned to them. Companies may have to sell off a segment or the undertaking as a whole. This sale is called a slump sale and does not require identification
New Valuation rules for Slump Sale Read More »
Valuers and Analysts often need to evaluate the BSE Sensex return for a variety of reasons. From assessing their portfolio returns to assessing the Market Rate of Return while assessing the Cost of Equity under Capital Asset Pricing Model (CAPM) among others. Here is how Sensex has performed over the years since it started. Date
BSE Sensex Returns Read More »
Did you know? As per a recent study conducted by Harvard Business School, VC selects 1 out of 101 prospective start-ups. Here are a few insights on how VC’s actually work: Referrals play an important role when it comes to pitching your idea to an investor. More than 30% of deals come colleagues or work
How Venture Capitalists Make Decisions? Read More »