My Take on the NSEL Crisis

August 19, 2013 Ok, please repeat after me. There is no such thing as a risk-free return. Even if you park your cash under the safety of your mattress, you’re still losing purchasing power as inflation erodes the value of your cash. Anytime someone offers you guaranteed risk free returns, please turn and walk the…

Continue Reading →

IKEA’s Indian Adventure

November 25, 2012 The Foreign Investment Promotion Board (FIPB) cleared Swedish furniture maker IKEA to enter India as a single brand retailer on November 20, 2012. According to the Business Standard the company is expecting to inject up to INR 10,500 crore of foreign direct investment into India as it builds out 25 stores across…

Continue Reading →

India’s Confusing New Takeover Regulations and What it Means for Prem Watsa’s Acquisition of Thomas Cook India

June 3, 2012 On May 21, 2012 Prem Watsa, who is also known as the ‘Warren Buffett of Canada’ bought a 76.81% stake in Thomas Cook India for INR 50 per share. Admittedly he got a good deal by purchasing the shares at an 18% discount to the closing price on the last trading day…

Continue Reading →

Who’s to blame for the ONGC debacle?

The Indian government’s auction of a 5% stake in ONGC (Oil and Natural Gas Corp) was its first attempt at privatization via an auction route. Based on various news reports the government was attempting to sell 42.77 Cr shares. The auction took place during market hours and offers for only 1.44 Cr shares had been…

Continue Reading →

India’s consumers are the biggest losers in the battle over FDI

Following the recent cancellation of 122 2G licences and rejection of plans to liberalize the retail sector, India is again earning its reputation as being a capricious place to do business for foreign companies. Although politicians and journalist attempt to justify the lack of greater reform as benefiting small and medium enterprises, the real losers…

Continue Reading →