BUYBACK & DELISTING


Share repurchase or share buyback refers to the process of company buying back its own share from its shareholders.
If a company is sufficiently matured and quite stable there may not be a scope for redeploying the internal accruals back in business as the ROE may be less than the opportunity cost. Such business may either pay high dividends or resort to buyback. It could also be because of the following:-

- Correction of over-capitalisation.
- Shoring up management stakes.
- Exit mechanism.
Companies Act was amended in 1998 to provide for the share buyback, prior to which only exit optio was to sell shares in open markets.
CASE-
Bajaj Auto ltd. is a unique case in buyback history. It was done with a motive to reduce cross holding in the co. Bajaj Tempo which had 9% shares valued at that time around Rs. 400 crores. In return Bajaj auto would transfer its 23% stake in Bajaj Tempo. 
Problem was in terms of valuing this buyback as Bajaj Tempo holding in Bajaj Auto was close to 7 times to that of Bajaj Auto in Bajaj tempo.


DELISTING:-
It is a process by which co. whose shares are listed on any stock exchange is taken private once again by terminating listing agrement with the stock exchange. AKA "going private".
It is of two types:
a) Voluntary delisting- In this type company by its own will goes for delisting. 
b) Compulsory delisting- In this type a co. is compelled to opt for delisting because of violating terms of agreement with the stock exchange.
In India it is done as per the SEBI Guidelines 2003.
CASE:
Digital Global Soft India(Digital India) was delisted using reverse book building method. Digital India which started in 1998 as a JV between DEC U.S.A. & Hinditron later became subsidiary of Compaq. After H.P. acquired Compaq, Digital India became subsidiary of HP, which announced voluntary delisting so that Digital India could become 100% subsidiary of HP.

Offer was made at Rs. 750 per share which was 50% premium on past 26 weeks average. But most offers wre received for Rs. 850. The final dea size worked out to be Rs. 1418 crore as opposed to 1000 crore makin it the largest exit offer till then in India.

My Time is now!!!!

A student is the most impatient human on this planet. He always explore for the opportunities to launch his career. But in this hurry he falls into various traps. Its not because his thinking is bad but because, he is thinking a lot more than necessary.
The way to go....


The way to go is to keep it as simple as possible. Though it seems that these things are easy to say but hard to follow, Because once a person gets determined he faces hell lot of troubles which are meant to again distract him from his target.
DETERMINATION is the KEY

This is the right time to show your determination and stick to your decision. You are bound to get more troubles but you have to always move and than even if you fail any time the time itself will take care of you.


YOUR TIME IS NOW TO BUILD YOUR CAREER SO AS TO TAKE CARE OF THE ONES YOU LOVE & LIVE!!!!!!!!!!!

CA/CFAs Vs. MBA Finance

The tryst between the CA/CFAs and the MBA Finance seems to be getting worse, with CA/CFA having an edge over the MBA-F.  CA/CFA have in depth knowledge of the subject, as they are more exposed towards it. Whereas an MBA-F student has to diversify in different aspects of the business and hence in terms of knowledge of the finance(2-year course) they face tough competition from the CAs.                                                                     INDUSTRY EXPECTATIONS        
FINANCIAL SERVICES- 
1.Banking
2. Stock market
3. Commodities
4. Debt market
5. Insurance
6. Mutual funds.

CORE FINANCE

 1. Capital budgeting

 2.Capital structure

 3. Working capital managemet                                                                                                                                                                                                                             For the core finance job companies want CAs to take care of the proceedings. They don't generally prefer MBA-F in this area. MBA-F students are employable in area of financial services and for this as well they have to increase their financial base by way of value addition courses like NCFM modules by NSE. So in a way their career is hard but once they get into the corporate world then their 360 degree business knowledge takes them through..... So don't worry ....cheer up :)))))))

strategic finance management

The study of finance keeping in mind the strategic goals of the company for a long term. These days financial management is being reffered to as "strategic financial management" in order to give it a broader scope.
There are various tasks associated with it. They are as under :-

• Capital budgeting
• Risk management
• Financial analysis
• Working capital management
• Foreign exchange & risk management
• Derivatives
• Asset pricing
• Investment banking
• Mergers & Acquisitions

All the aforesaid areas are the seperate fields altogether. One has to develop his insights into various aspects such aspects before he considers himself as the expert in this area of financial excellence.

Finance which is generally considered to be an emotion less subject, but due to the emergence of "SFM" this notion about the finance is undergoing a drastic change.

Finance is slowly converting to phynance i.e. the study about the human. After the big scams like that of stock market by Harshad Mehta or the latest 2G spectrum scam by A Raja has made the impact of human activity very clear.

Next big thing in SFM is the reason behind the organistional structure- why the came up; what the logic behind the big or small size organisation. Various  problems are-:

• Agency problems
• Goal conflict
• Rent seeking behavior 
• Free ridership
• Bounded rationality.

In the next step SFM talks about the strategy formulation by the company keeping in mind the human behavior.

Mckinsey's 7S Framework

Every enterpreneur is keen to know how his/her organisation is positioned, but to get to the realty is not an easy nut to crack. He has to not only take into consideration his own capabilities and weaknesses but also that of the competitor's .
Mckinsey's 7S model is one such framework meant to understand the positioning of the organisation. Condition in which the organisation at the moment is the result of internal factors or external or the mixture of both.
It involves 7 independent factors, 3 hard and 4 soft, as shown.
'Hard' elements are easy to find and management can directly influence them.
'Soft' elements are kind of intangible and hence are hard to recognize and are influenced by the culture of the organisation.
Strategy:-Action plan to get and maintain the competitive advantage.
Structure:-Its the organisational authority and the chain of command, who reports to whom etc.
Systems:-How to do the work and patterns to be followed.
Shared values:-these are the core values of the company that is also reflected in the quality of the work of the employees.
Skills:-It talks about the actual competencies of the employees and their skills.
Staff:-The employees and their general capabilities.
Style:-The style of the leadership adopted.

Prepare or Repair

We as a professinal are expected to be prepared for any kind of situation well in advance.
It is either we get ready for the things or world will make us understand it in an ugly way.
As per Crite's model of career maturity-

Knowledge of the work->Group factors of dimensions->Converge to 'G' factor.
'G' is the degree of career maturity.

If you lack in any of the above the stage, you are bound to face trouble in form of constant repair techniques used in the workplace.....even up to the extent of getting you OUT OF THE JOB.!!!!

..So be Prepared to avoid Repair

Destiny

"Destiny" is not just a word, it holds the entire journey of life. Men who at times feel himself to be the maker of his fate, is infact a slave at the disposal of his destiny.
One can really think himself to be superior than it but ultimately his life is the replica of what his destiny was!!!!!!

"MEN IS THE MAKER OF HIS DESTINY".......is it true???????????
                                    
                                                      ............JUST PONDER OVER!!!