IIPM Ranked No. 1 B-School In Global Exposre - Zee...
The background summary is that as an integrated financial services company [with its presence in brokerage, wealth management, insurance et al] , Religare Enterprise claims to be amongst the globally trusted brands in the financial services domain and to that effect, has also attempted to position itself as the ‘Investment Gateway of India.’ Be that as it may, a host of the other similarly positioned integrated financial companies are already competing against each other and the differentiating factor in the market will certainly be based on leadership parameters – be it in terms of cost, structure, product offering or access to capital. The clear question is, does Religare have the wherewithal on all, or even some, of these critical parameters? Religare Enterprises with a view to expand, diversify and introduce offerings benchmarked against global best practices, has entered into joint ventures with global majors. Creditably, this seems to be structurally stable – for example, their JV with Aegon is for asset management and life insurance businesses in India; for wealth management, their JV is with Australia based financial services major, Macquarie Bank; they’ve also partnered with Vistaar Entertainment to launch India’s first film fund.
But discreditably so, at this particular juncture in financial markets, an outright majority purchase of shares seems not only risky, but downright suicidal. At a time when the mutual fund industry is under tremendous stress, Religare’s intent to purchase the majority share in Lotus AMC has been termed a ‘distress sale’ for Lotus. I wonder, as I’ve mentioned it before, it almost seems a ‘distress buy’ for Religare itself. And why? Look at the figures yourself.
Religare Enterprise has been posting losses for the last two quarters consecutively. It’s not just the losses; but the fact is that even Religare’s share prices have plummeted uncontrollably in the meanwhile. If one considers the figures since January 2008, Religare’s stock price has almost halved from its peak of Rs 730 on January3, 2008 to Rs 325.30 on November 4, 2008. Interestingly – and very strangely – the announcement of the Lotus AMC takeover was seen in a neutral light by Religare Enterprise’s investors, with the stock continuing to languish in the same range, rather than plummeting further.
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)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus
ZEE BUSINESS BEST B SCHOOL SURVEY
For More IIPM Info, Visit below mentioned IIPM articles.
1500-plus IIPM students placed across the country with 44 bagging international offers
IIPM set to beat economic slowdown
IIPM, GURGAON
IIPM - Admission Procedure
IIPM awards four Bengali novelists
The Hindu : Education Plus : Honour for IIPM
IIPM ranked No.1 B-School in India, Management News - By ...
IIPM Ranked No1 B-School in India
Moneycontrol >> News >> Press- News >> IIPM ranked No1 B-School in ...
» IIPM ranked No1 B-School in India :: Education, Careers ...
The Hindu Business Line : IIPM placements hit a high of over 2000 jobs
Deccan Herald - IIPM ranked as top B-School in India
India eNews - IIPM Ranked No1 B-School in India
IIPM Delhi - Indian Institute of Planning and Management New Delhi ...
domain-b.com : IIPM ranked ahead of IIMs
IIPM makes business education truly global-Education-The Times of ...
The background summary is that as an integrated financial services company [with its presence in brokerage, wealth management, insurance et al] , Religare Enterprise claims to be amongst the globally trusted brands in the financial services domain and to that effect, has also attempted to position itself as the ‘Investment Gateway of India.’ Be that as it may, a host of the other similarly positioned integrated financial companies are already competing against each other and the differentiating factor in the market will certainly be based on leadership parameters – be it in terms of cost, structure, product offering or access to capital. The clear question is, does Religare have the wherewithal on all, or even some, of these critical parameters? Religare Enterprises with a view to expand, diversify and introduce offerings benchmarked against global best practices, has entered into joint ventures with global majors. Creditably, this seems to be structurally stable – for example, their JV with Aegon is for asset management and life insurance businesses in India; for wealth management, their JV is with Australia based financial services major, Macquarie Bank; they’ve also partnered with Vistaar Entertainment to launch India’s first film fund.But discreditably so, at this particular juncture in financial markets, an outright majority purchase of shares seems not only risky, but downright suicidal. At a time when the mutual fund industry is under tremendous stress, Religare’s intent to purchase the majority share in Lotus AMC has been termed a ‘distress sale’ for Lotus. I wonder, as I’ve mentioned it before, it almost seems a ‘distress buy’ for Religare itself. And why? Look at the figures yourself.
Religare Enterprise has been posting losses for the last two quarters consecutively. It’s not just the losses; but the fact is that even Religare’s share prices have plummeted uncontrollably in the meanwhile. If one considers the figures since January 2008, Religare’s stock price has almost halved from its peak of Rs 730 on January3, 2008 to Rs 325.30 on November 4, 2008. Interestingly – and very strangely – the announcement of the Lotus AMC takeover was seen in a neutral light by Religare Enterprise’s investors, with the stock continuing to languish in the same range, rather than plummeting further.
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)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus
ZEE BUSINESS BEST B SCHOOL SURVEY
For More IIPM Info, Visit below mentioned IIPM articles.
1500-plus IIPM students placed across the country with 44 bagging international offers
IIPM set to beat economic slowdown
IIPM, GURGAON
IIPM - Admission Procedure
IIPM awards four Bengali novelists
The Hindu : Education Plus : Honour for IIPM
IIPM ranked No.1 B-School in India, Management News - By ...
IIPM Ranked No1 B-School in India
Moneycontrol >> News >> Press- News >> IIPM ranked No1 B-School in ...
» IIPM ranked No1 B-School in India :: Education, Careers ...
The Hindu Business Line : IIPM placements hit a high of over 2000 jobs
Deccan Herald - IIPM ranked as top B-School in India
India eNews - IIPM Ranked No1 B-School in India
IIPM Delhi - Indian Institute of Planning and Management New Delhi ...
domain-b.com : IIPM ranked ahead of IIMs
IIPM makes business education truly global-Education-The Times of ...
