IDFC

IIPM Ranked No. 1 B-School In Global Exposre - Zee...

Investee: IDFC

Investor: KNB

Investment Value: $180 mn

FIIs and QIPs are gung-ho about infrastructure development in India. IDFC has been a key player in attracting investment from foreign players. In 2005, when infrastructure development gained momentum, IDFC was responsible for financing nearly 25% of the projects. For KNB, this deal meant having a share of the pie that this sector can offer. Just after a year, KNB’s investment of $180 million has swelled to $440 million. This deal may pave way for other Malaysian firms wishing to invest in India. It can also work the other way round, when IDFC and its investors contemplate investing in Malaysia.

On November 13, 2007, Khazanah Nasional Berhad (KNB), an investment arm of the Malaysian government, picked up a 9.95% stake in Infrastructure Development Finance Company (IDFC) for $180 million. The aforesaid investment was made through a wholly-owned subsidiary of KNB, Sipadan Investments (Mauritius) Ltd. KNB acquired 10.1 crore shares of IDFC from UBS. With this block-deal, KNB became the second largest stakeholder of IDFC, after the Indian government which holds nearly 23% in the company. According to KSB, “It is a strategic investment, as the Indian realty sector is projected to experience one of the highest growth rates in the booming Indian economy.” The primary focus of IDFC in the coming times would be on energy and transportation. IDFC currently has major investment in 22 different infrastructure related firms. The company also manages two funds, viz. IDFC Development Fund and IDFC private equity fund. As of now, the company has investments totalling $8 billion in various projects. Yet again, the PE players are getting into high-growth and potentially lucrative areas.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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Kaustav Das

IIPM, GURGAON

In the midst of nowhere...

Hi, I am Kaustav Das, presently the Head, Marketing (South), Travel Division, Saffron Media Pvt. Ltd. I am 39 years old and my annual pay package is Rs.7 lakhs.

“My aim at the moment is to reach a salary of Rs.10-12 lakhs per annum. For the same, I am reaching out to overshoot my targets at work by 100%.” Kaustav started investing 3-4 years ago, mostly in mutual funds. The ones that he presently has are Fidelity India Special Situations-G, Franklin India Taxshield-G, SBI Magnum Global-G, SBI Magnum Taxgain-G & Templeton India Equity Income-G. “I also bought a Kisan Vikas Patra worth Rs.40,000 just a month back and have even invested Rs.1,00,000 each in two businesses. I’m getting about 30% returns on these,” he adds. Now, Kaustav is planning to invest Rs.1,50,000 over the next 2-3 months in mutual funds. He has a flat in Bengalooru (he is paying Rs.6,000 as EMI). “Though I bought a Kisan Vikas Patra, I don’t quite like it. The time bound period of seven years is too long! I don’t like government securities and bonds,” he says. Kaustav is middle aged now and wants to make more money to treat himself to the best that life can offer!

Though in his late 30s, Mr. Das has aggressive plans for his future, with enough money to live it up in style! He needs an aggressive investment portfolio. After consulting Vineet Khurana and Mayur P. Shah, executives in Wealth Management Product of Anand Rathi, 4Ps B&M lists out the following investment options for him.

Medical insurance from a general insurance Co. worth Rs.2 lakhs, for Mr. and Mrs.Das (premium for which would be approx Rs.10,000 p.a.); term life insurance cover worth Rs.1.4 crores (as per the current income) from any life insurer for Mr. Das. This can also be taken in parts. Annual premium for a life cover of Rs.1.4 crores would be about Rs.36,000 p.a.. For taxation planning under section 80C, one should invest a minimum of Rs.1,00,000 in a financial year in the instruments listed U/s 80C. The amount should be invested in ELSS. If Kasutav is risk averse i.e. doesn’t want to invest in equity then he could go for PPF investment option.

If we assume that currently Mr. Das is having an annual expenditure of about Rs.3 lakhs, and if he wants to maintain this lifestyle post retirement too, then he needs to invest Rs.1,21,290 each year in Equity MF (assuming returns of 15% p.a.) up till retirement (with inflation at 5% p.a. & life expectancy of 80 years). This will create a corpus of Rs.67.58 lakhs on retirement. Anil Mascarenhas, Editor, India Infoline, recommends a combination of equity diversified mutual funds for Mr. Das. For an annual investment of Rs.1,50,000, he may perhaps invest Rs. 50,000 each in DSP Equity and Reliance Power; and Rs.75,000 in Reliance Vision.

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

Read these article :-
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
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The Indian Institute of Planning and Management (IIPM)
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Global innovator...

When IIPM comes to education, never compromise

...and that’s what you can call Infozech!

Ponder over the veracity of the statement – ‘In the IT sector, the generation next is comprehensively representing India on the global map.’ “What’s so new about it?” You might wonder, right? Certainly so... but a lesser known fact perhaps is that this sector is also recognised for having given to the world a host of young Indian entrepreneurs whose contribution is far beyond being the ordinary. And in this backdrop of the intellectual class, surfaces an alumnus of the prestigious Indian Institute of Technology, New Delhi, Ankur Lal. He started his corporate journey with software development, a pretty focussed and strong start actually. But the quest to do something new, forced him to move beyond just being a software development tank.

“I had worked with CitiGroup for more than a decade, but wanted to do something of my own – something that was innovative! But at the same time if you can’t make money, then what’s the point of innovation,” reminisces Lal. Cut to the late 1990s, a period when the telecom sector was a toddler and brimming with the potential of high double-digit growth. Remembering the decade gone by and explaining his strategy behind the move, Ankur adds, “I knew from the start that the telecom market was growing and there was scope to do something new. Given my experience of having worked with software providing convergent billing process, I wanted to get into it, given the fact that then, no organised player was in it....”

Having seen the light at the end of the tunnel, he set up Infozech Software Ltd. in 1999 and just like any other small start-up, faced capital hurdles and lack of high-quality personnel to join his team in the initial stages... To overcome the first bottleneck, he started eying venture capitalists. “But it was not easy as we were a new company, so nobody wanted to take the risk by investing in our business. Finally some VCs responded from Dubai,” elaborates Ankur who is now spearheading the company as its CEO.

After injecting fresh capital, Infozech started roping in industry experts and today the company has over 60 qualified engineers on its rolls. It also started spreading its wings across continents, including the US and Europe. Today, with an annual growth rate of 50%, the company boasts of a massive Rs.50 crores in annual turnover during 2006-07. Ankur, to his credit, has also bagged the Young Entrepreneur Award from NASSCOM and Deloitte Fast 500 Award.

However, with intense competition increasing from several organised and unorganised players, will he able to sustain the terrific growth rate? Ask him that and pat comes the reply, “We have tied up with big names like Motorola, IBM, HP & Sun and if we can satisfy our clients through our innovation. No body can snatch them.” Currently, this confident CEO is also chalking out plans to ensure his presence in the GSM mobile business. And with a tall target of growing at a CAGR of 100% till 2010, there’s no denying that it’s indeed the best of innovation unlimited for India ahead!

Edit bureau: Angshuman Paul

For more articles, Click on IIPM Article.

Source : IIPM Editorial, 2008

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.
IIPM, GURGAON
IIPM - Admission Procedure
IIPM is A World of Career
Why Study Abroad When IIPM Gives You 3 global Advantages!