Beruflich Dokumente
Kultur Dokumente
ARINDOM MUKHERJEE
STRATEGIC SALE
PRECEDENTS: MFIL, BALCO, CMC, HTL, VSNL, IBP, HZL, PPL, IPCL, BELTING DIVISION OF ANDREW YULE & CO. LTD ETC.
ADVANTAGES
1)
MAXIMISES PRICE BECAUSE OF TRANSFER OF MANAGEMENT RIGHTS 2) BRINGS TECHNICAL / MARKETING / FINANCIAL / MANAGERIAL EXPERTISE OF THE BUYER TO THE COMPANY 3) INCREASED VALUE OF RESIDUAL GOVT. SHAREHOLDING 4) LOW COST AND LESS REGULATION DISADVANTAGES 1) TIME CONSUMING 2) ISSUES RELATING TO MANAGEMENT, LAND AND LABOUR ETC. TO BE RESOLVED 3) PROSPECTIVE BIDDERS AT TIMES LOSES INTEREST BECAUSE OF LONG WINDING PROCEDURE
OFFER FOR SALE TO PUBLIC GOVT. OWNED SHARES AT FIXED PRICE(1 MILLION SHARES OF VSNL @ RS.750 PER SHARE.)
SALE OF EQUITY SHARES HELD BY THE GOVT. TO THE PUBLIC AT A PRE-DETERMINED PRICE THROUGH AN OFFER DOC. PREPARED BY MERCHANT BANKER/LEAD MANAGER REGULATORY COMPLIANCES OF SEBI AND STOCK EXCHANGES ADVANTAGES ENSURES BROAD-BASED SHAREHOLDING RELATIVELY QUICK METHOD MARKET BASED TRANSPARENT METHOD DISADVANTAGES SALE IS DEPENDENT ON MARKET CONDITIONS PRICE USUALLY AT A DISCOUNT TO MARKET COSTS APPROX. 2 5 % OF AMOUNT RAISED
INFORMATION MEMORANDUM CIRCULATED AMONG INSTITUTIONAL INVESTORS , MULTILATERAL AGENCIES, PRIVATE EQUITY FUNDS FOLLOWED BY DUE-DILIGENCE PRICE DISCOVERED THROUGH BOOK BUILDING OR APRIORY EVALUATED ADVANTAGES LEAST TIME CONSUMING AROUND ONE MONTH NO REGULATORY COMPLIANCE REQUIREMENTS(EXCEPT FII) AS PER SEBI GUIDELINES, PRIVATE PLACEMENT OF LESS THAN 15% EQUITY TO INVESTORS DOES NOT TRIGGER TAKE-OVER CODE LOW TRANSACTION COST DISADVANTAGES : DOES NOT ENSURE WIDESPREAD SHAREHOLDING MAY NOT BE CONSIDERED TRANSPARENT
2010-11
40000
LIKELY TO EXCEED
EXTRA SLIDE