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  • All that glitters is not gold

    It was 2005, the housing market in America was booming and Michael Burry had begun his analysis of the mortgage lending practices in the USA. While this was happening in America, in India, it was the time of birth of one of the largest jewellery chains in India, PC Jeweller PC Jeweller was an idea conceived by siblings, Pramod Chand Gupta and Balram Garg. What started as a stand-alone jewellery shop in the busy markets of Karol Bagh in Delhi, soon raised an empire of its own. Gradually yet steadily it added more stores and set up production establishments for exports, wholesale and retail purposes. PC Jeweller could ride the winds of success owing to the changing preferences of the Indian shoppers who started taking an interest in the organised jewellery market. Noticing the favourable business environment, PC Jeweller launched an IPO in 2012 and was able to raise Rs. 600 crores and at that time, it had only 20 stores. However, all that glitters is not gold. Ever since Jan 19, 2018 PC Jeweller hasn’t been able to shine as it did before. While in 2018, the company’s shares were being traded at around Rs. 600 a piece, it took just 2 years for it to fall from grace, with the shares being traded at a mere price of Rs 8 back in March 2020. The crisis PC Jeweller tasted the dust of defeat owing to the greed and manipulative nature of its promoters. It got mixed in with some bad apples and lost its appeal in the court of public opinion. A web of lies The lies began when Vakrangee, a Mumbai-based financial and technological company bought 20 lakh shares worth Rs. 112 crores on 25 January 2018. One would expect that such a block deal would be reported to the securities market, however, no such declaration was made in any of the exchange filings regarding the seller of the shares. Although PC Jeweller clarified that no promoter had to offload their shares in the market, it only bred ground for more speculation. Vakrangee told Bloomberg Quint that its investment in the jewellery company was a treasury investment which was made based on the future potential of the jewellery company. At that time Vakrange was under heavy scrutiny by the SEBI which alleged the company of price manipulation of its own shares. Later, on January 30, Vakrangee issued new treasury guidelines prohibiting the company from owning a direct equity stake in any company. In coherence with the new guideline, the company had to offload a significant amount of stake in the PCJ, which subsequently led to panic selling causing the share to tank as much as 60% in intra-day trade. The incredible Jeweller The lies continued as investors started to get concerned over the “quality and timeliness” of the disclosures by the company. There were concerns that promoters of the company were “gifting” their stake in the company to their relatives via off-market transactions. Even though the firm reassured its investors that it would make requisite disclosures for the same from time to time, it did nothing to assuage the public’s loss of confidence in the company. Another blow was struck to the company in May 2018, when the market regulator, SEBI found four individuals guilty of insider trading (an act of trading on the basis of unpublished price-sensitive information). The individuals concerned were Balram Garg (Promoter), Amit Garg (Balram’s nephew), Sachin Gupta, and Shivani Gupta (son and daughter-in-law of the company’s chairman, late PC Gupta). As a result of these charges, SEBI imposed an aggregate fine of Rs. 1 crore on the guilty and barred them from trading in the shares of the jewellery company for 1 year. It became difficult for the public to believe the announcements made by the company. Thus, it was again disappointing when the company withdrew the buyback announcement to purchase shares worth Rs. 4245 crores from investors. The buyback announcement was repealed because the company failed to obtain the NOC (No Objection Certificate) from its bankers, which only further led to the decline in the stock price. The future The company’s future is not as shiny as the gold it uses to manufacture its products. With the fine imposed by SEBI on Balram Garg and his family on account of insider trading, the company has lost all credibility in the market. Furthermore, due to the multiple instances of banking fraud committed by the country’s top jewellers, Nirav Modi and Mehul Choksi, the jewellery sector in India is expected to remain dull for some time at least. Currently, the stock trades at around Rs. 98 per share. While the stock is fundamentally stock, it is the shadow of the top level management of the company that has been preventing the stock from reaching its full potential. Now that the company has made significant progress in resolving its differences with the regulating authorities, right now is the perfect time for the company to make a turnaround. Author: Neeraj Agarwal Illustrator: Tanmay Choudhary

  • ERROR: SIGNAL NOT FOUND

    From being on every TV screen to struggling to find a space in the industry it owned at a point in time, let us decode the downward-sloping graphs of Dish TV, an old hero in the DTH industry! In the world of Android televisions, Dish TV seems to have gotten lost in the crowd with its share prices dropping below INR 20. Established on 2nd October 2003 as a part of the Essel group, Dish TV ticked off becoming the biggest DTH network in Asia with a family of 10 million subscribers by February 2011. Launched by the Zee network, with Mr Anil Dua serving as the CEO of the company, it had acquired major DTH networks like d2h, etc., and saw consistent growth in the decade of its birth. But sometimes, the graphs tend to slope downwards after soaring so high. 2016 was a prick in the eye, henceforth things started to get worse for the service provider. Will Dish TV be able to stand out in this smart crowd or will it be the name of a past? The Crisis: Dish TV was a huge market player till 2016, but the subsequent quarters saw a sum of liabilities overpowering the worth of assets. What could have been the reasons for such a drastic decline? Struggle to get a Signal With Tata Sky and other service providers entering the DTH market, Dish TV lost the tag of being the hero in the market. Share prices declined by 39% from being as high as Rs. 118 in August 2015 to Rs. 72 in February 2016. If one wants to catch a big fish, one needs to throw in considerable bait. But what if there is no big fish present in the pond? All that risk is worth no gain. Because of its declining stock prices and the innovation brought in by the new brands, Dish TV started bleeding out customers. Moreover, with online streaming platforms entering the market and becoming popular during the pandemic, Dish TV started reporting huge losses. In the Jan-Mar quarter of FY 2022, the company booked losses as huge as Rs. 2,032 crores and its revenue declined by 14.5% to Rs. 642.70 crores. Blackouts: fight for the stake Dish’s rivalry with Nexstar, a TV station led to history’s largest blackout (3 weeks) in the DTH industry with more than 160 channels showing a “NO SIGNAL” error box on Dish’s subscribers’ screens. And no one was going to wait to watch their favourite TV show for this long, not for three weeks at least! What's dramatic is that although Yes Bank holds approximately 25% stake in Dish TV, it has engaged in a tussle of power with the Dish TV officials. In the past, the Essel group founder, Subhash Chandra had borrowed a tremendous amount of over INR 5000 crores and pledged his stake in Dish as collateral. Due to his inability to repay the borrowed amount, the ownership of pledged shares was transferred to the officials at Yes Bank. The founders wanted to take away the bank's voting rights but lost a court battle for the same with Yes bank voting out the 2 major members from the board of directors, making the matters worse for the founder, Subhash Chandra but better for Dish as a brand. There was a rise of 20% in the share price but the increase wasn’t enough. Power Cut: Management losing its strength We saw a surge in the share prices but the company is still lagging with only 2 members on the Board of Directors when at least 4 are mandatory. Yes bank has voted in favour of its representatives to be a part of Dish’s BOD. With Yes Bank on the board of directors of Dish TV, predictions and analysis show that the battle’s in the hands of Yes bank and Essel group is going to lose its stake in Dish. Will Dish ever reach the shore? (the future) Several negative points were on the screen within a few years. With share prices as high as Rs. 130 in June 2007 to as low as Rs. 4.25 in May 2020; will the future bring relief to the tensed faces or have them talk about the brilliance of the past when everything has finally come to an end? Dish is trying to be a competitor by adjusting to the changes with the innovations in the market. It released android set-top boxes to be a step closer to being in the smart circle where everything is available in a small TV box. With the launch of the 5G services, Dish TV has tied its fate with it and the software designed for the same has proved to be cost-efficient and can give Dish an edge over the competitors. As highlighted above, its consumer network is losing users, so Dish hopes that wholesaling its network's coverage, speed, and security for other companies' use will propel its future growth. The share prices have been showing up and down arrows but it surely has started to improve with an increase of around 75% from February 2020 to September 2022, yet it's standing so far away from where it began. With all that's cooking, we can only wait until we decide whether we will be served with a good 'Dish' or not. Sources: The Economics Times Business Standard Ndtv.com usatoday.com Author: Mananpreet Kaur Uppal Illustration by: Muskan Bansal

  • Vodafone: Out of Ideas

    Background This is the story of Vodafone Idea, a David who could not beat Goliath. Vodafone India was a subsidiary of the UK-based Vodafone Group PLC, set up to bridge the gap between its customers and a better future by providing them with better digital services. In August 2018, it merged with another leading company in the telecom industry, i.e., Idea Cellular and rebranded itself as Vodafone Idea. Things started to fall apart for the company from the day Jio was born. In April 2015, Vodafone Idea had a market capitalisation of Rs. 729.2 bn, touching a low of Rs. 84.8 bn in November 2019, the current market capitalisation of the consolidated company stands at around Rs. 272.34 bn. But how did a lucrative company which was once worth billions of dollars fell from grace and is now being traded for Rs 9.05 per share? The crisis It was not one, not two but many crises that had a domino effect on Vodafone’s troubles. Following are the two major reasons that plagued the company. There’s a new sheriff in town Amidst the notable recognition of Vodafone India and Idea Cellular, these companies were inflicted with a serious crisis when a fresh competitor, Jio protruded above the veteran companies in September 2016. As a new force of wave surged over the market, the organisation, which was formerly two different entities viz., Idea Cellular and Vodafone India were merged as one to counteract the competition brought by their new rival. During its initial stage, Vodafone Idea was trading at the price band of Rs.50 - Rs.70. However, it didn’t take long for its stock price to fall to Rs. 10 the following year and subsequently, hit rock bottom when it traded as low as Rs 3.40. Although the merger awarded them with a comparative advantage of 38 per cent share in the total subscribers, the new prodigy would soon seize their market. Jio accumulated 35 per cent of the market share followed by Bharti Airtel with 29 per cent and left VI with 25 per cent. As a result, the company lost over 130 million subscribers and this was concurrent with the introduction of the 4G spectrum that provides fast connectivity. The notorious degree of competition and paper-thin profit margin wasn't kind to VI as well. While its competitors, Jio and Airtel, enjoyed a higher Average Revenue Per User (ARUP) of Rs. 124 and Rs 129, respectively, Vodafone struggled to stay afloat due to an ARUP of Rs. 108 per user only. The debt balloons Vodafone's tussle began way back in 2008 when they executed a deal overseas to acquire a controlling stake in Hutchison Essar at $11.2 billion. This led to a series of severe consequences. The tax department stated that the company should've withheld tax and issued a notice seeking Rs 11,281 crores later augmented to Rs 7,900 crore. Experts believe that this judgement had sealed the fate of Vodafone. The judgement brought about an unfathomable series of events that would drastically derange the company from its real potential. As a result, VI owes the government more than Rs 1.68 lakh crore as cumulative fees for AGR and spectrum and another Rs 23,400 crore as international debt by April 2023. As of March 31, 2022, the company was debt-ridden with total debts amounting to Rs 1,97,878.2 crores. Future It has been a spiral of unending problems for Vodafone Idea. The woes of the company multiplied when the Birla Group abandoned the company and sold its shareholding to the government on August 6, 2021. This further blemishes the faith in the company's future. The company has fallen into a cyclical nature of unending burnout of cash reserves and Rs 8,160 crore payment due over 12 months. Meanwhile, many analysts believed that only the government can revive the dying company by bailing out the company and revamping the AGR systems to relieve the weight of the company. So, it will be a test of time and the rules and regulations imposed by the policymakers whether Vodafone Idea will avert bankruptcy and find solutions to the problem to present a long-term plan for its shareholders. Another question to ponder is if the government of India will allow the Indian telecom market to transfer into a duopoly. Sources: Fortune India business line Business Standard The Economics Times Author: Hausianmuan Samte Illustration By: Tanmay Chowdhary

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  • Subscription | The Hansraj Finance Gazette | FIC Hansraj

    The Hansraj Finance Gazette We offer the best return of knowledge on your investment of time. SUBSCRIBE NOW Finance & Investment Cell, Hansraj College was incorporated in 2014 with the vision of spreading financial literacy and disseminating quintessential knowledge on various aspects of finance among all sections of society. Over the years, we have undertaken numerous initiatives to advocate our vision, becoming one of the country's most renowned student-run finance cells. ​ In our latest endeavour to promulgate financial awareness, we present to you our monthly newsletter, the Hansraj Finance Gazette - your one-stop destination to stay updated with everything finance. The newsletter has been operational since 2020 and we have garnered a family of 8500+ readers. ​ Get ready to have finance at your fingertips as we bring before you exclusive coverage of all the financial highlights of the month, thought-provoking articles and exclusive user-centric activity sections to provide the best reading experience. ​ Subscribe now to get exclusive access to our Gazette in your inbox! Subscribe to our Newsletter Thanks for subscribing! Submit

  • About Us | Finance & Investment Cell, Hansraj College

    Our Mission The Finance and Investment Cell, Hansraj College is a voluntary group of students aiming to disseminate quintessential knowledge on finance, investment, and related aspects through the conduct of its activities throughout the year. About FIC Hansraj The Finance and Investment Cell, Hansraj College embarked upon its journey to promulgate financial literacy in the year 2014. Since then, we at FIC have been disseminating quintessential information on finance and related concepts. Be it organizing multifarious events or hosting regular speaker sessions with eminent personalities, the Cell has managed to build a significant presence for itself and has lived up to its reputation of being one of the finest societies in the Delhi University circuit. The Cell also curates and publishes its own set of financial articles regularly so that all segments of the public can reap the benefits. Taking into note the need for one roof for finance, we started with our own newsletter, a venture that was ideated and implemented in 2020 with the name “The Finance Gazette” garnering over 8500 subscriptions in a short period of time. Adding a feather to the cap, FIC is now the first society in Delhi University to have their newsletter published on the official college website. Several departments operate in tandem to ensure that the society provides ample opportunities to its members to upskill themselves in all aspects. With enthralling and diverse events like The Finance Platter, the Fellowship Programme for school students, and our flagship event Empresa, we leave no stone unturned to promise an engaging time for our members and the community. We have come a long way from where we started and we aim to scale new heights in times to come. The Finance and Investment Cell, Hansraj College is a voluntary group of students aiming to disseminate quintessential knowledge on finance, investment, and related aspects through the conduct of its activities throughout the year. Since its inception in 2014, the Cell has traversed a great path to grow in size, scope and shape so as to make it more engaging for its members and community. We’ve diversified ourselves from activities eponymous to the name by launching our very own in-house mentorship and consulting wing and social wing two years back. The Cell aims to spread financial literacy in a fun yet holistic way to the underserved community and regularly organises drives to fulfil this aim. From organising multifarious events to hosting regular speaker sessions with eminent personalities, the Cell has managed to build a reputation for itself. With a keen interest in finance and a vision to spread the knowledge to others, we at FIC, Hansraj, are dedicated to provide comprehensive learning of the world of finance to the world. Mission & Objectives Meet Our Team The Core Jayesh Rungta President Harsh Agarwal Vice President Eesha Goyal Vice President Manuj Bengani Joint Secretary Khatwang Gupta Chief Advisor Tushasp Rajput Samay Jain Social Wing Technical Department Ramya Sehgal Mentorship & Consulting Department Hardik Jonwal Organising & Sponsorship Department Editorial & Marketing Department Neeraj Aggarwal Research & Development Department Aditi Jain Nishitha Bringi Sridhar Soumil De

  • Finance & Investment Cell | Hansraj College | Delhi University

    Finance and Investment Cell Hansraj College about us The Finance and Investment Cell, Hansraj College embarked upon its journey to promulgate financial literacy in the year 2014. Since then, we at FIC have been disseminating quintessential information on finance and related concepts. Be it organizing multifarious events or hosting regular speaker sessions with eminent personalities, the Cell has managed to build a significant presence for itself and has lived up to its reputation of being one of the finest societies in the Delhi University circuit. Know More About FIC 6K+ Event Footfall 750+ Fellowship Registrations 8500+ Newsletter Subscriptions ₹900K+ Cash Prizes Given We Take Pride in Our Numbers 12k+ Facebook Likes 7 Years of Service 6 Finance Platter Speaker Sessions 9 M&C Projects Our Past Partners 1/15 BLOG | FIC Hansraj Refined FIC Hansraj Oct 15 3 min All that glitters is not gold What happened with PC Jeweller? A company with more than 90 stores around the country, yet had its share price trade for pennies at one..... FIC Hansraj Oct 7 4 min ERROR: SIGNAL NOT FOUND How did a name on everyone’s TV screen become discarded junk, kept aside in the DTH store room? FIC Hansraj Sep 30 3 min Vodafone: Out of Ideas How did one of the powerhouses of the world's fastest-growing telecom sector end up being traded as a penny stock? Check out all the articles Our Services Mentorship and Consulting, FIC Hansraj College Mentorship and Consulting (M&C) Department The Finance and Investment Cell realizes the dynamic industry needs advanced skillsets. The Consulting wing was set in motion to help students apply their skills by undertaking live projects. The wing has executed live projects spanning Financial Modelling, Technical Analysis, Market Research, etc. Know About MNC Collaborate With Us Organizing and ponsorship, FIC Hansraj College Organizing and Sponsorship (O&S) Department The Organizing and Sponsorship department works with outside entities to bring in sponsorship for FIC, Hansraj College and organizes all kinds of events for the society. The work consists of converting clients into a mutual agreement over sharing deliverables. Know About O&S Our Social Responsibility Mentorship and Consulting Social Wing The Social Wing of the Finance and Investment Cell, Hansraj college is an initiative to spread financial awareness especially among the less privileged strata of the society. This initiative has been undertaken to fulfill the social responsibility towards the society and help bring the needed change in the community. Know About Social Wing Our Departments Technical Department The Technical Team of Finance and Investment Cell, Hansraj College works on how to present the society to the outer world. Professionalism runs through their veins and creativity shows on their screens. Words don't define the Technical Department, their graphics do. Know About Graphics Team Editorial and Marketing Department (EDM) The Editorial and Marketing Department (EDM) handles the social media pages which constitute the face of the Cell. It disseminates knowledge about recent market trends in news to lesser-known trivia facts through intriguing financial articles. Know About EDM Research and Development Department The Research and Development Cell aims to spread awareness about everything finance and beyond. The department attempts at breaking conventionally complex financial concepts and news into a simplified manner by hosting interactive discussions, sessions with industry experts etc. Know About R&D Our Events Empresa'21 Read More > Young Investors' Fellowship Programme'21 Read More > Finance PLatter'20 Read More > Meet the team Jayesh Rungta President Harsh Aggarwal Vice President Eesha Goyal Vice President The Core Manuj Bengani Joint Secretary Khatwang Gupta Chief Advisor Meet the Department heads

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