CAGR Insights is a weekly newsletter full of insights from around the world of web.
| Index | 20-Oct-23 | 13-Oct-23 | Change |
| Nifty 50 | 19,541 | 19,734 | -0.98% |
| Nifty 500 | 17,208 | 17,376 | -0.96% |
| Nifty Midcap 50 | 11,339 | 11,610 | -2.34% |
| Nifty Smallcap 100 | 12,943 | 12,891 | 0.40% |
Chart Ki Baat
Gyaan Ki Baat
Reverse merger
Reverse mergers are also referred to as a reverse takeover or a reverse IPO – when a private company becomes a public company by purchasing control of the public company. They are backdoor mechanisms which are chosen as a more cost-effective and expedited alternative when compared to traditional IPOs. Unlike a conventional IPO, a reverse merger does not necessitate the raising of new funds.
Reverse mergers are conducted with the aim of achieving various objectives, such as accessing capital markets for fundraising, increasing the company’s visibility and reputation, and facilitating acquisitions or strategic partnerships. For example, Warren Buffet’s company, Berkshire Hathaway went public with the help of a reverse merger.
Here’s the list of curated readings for you this week:
Personal Finance
- Gamification of Indian equity markets – In most global markets, derivatives volumes account for 5-15x their cash market volumes. In India today however, derivative volumes are more than 400x higher than that of underlying cash market today. Read here
- Some hard truths about money. – A lot of financial planners I’ve talked to say one of their biggest challenges is getting clients to spend money in retirement. Even an appropriate, conservative amount of money. Frugality and savings become such a big part of some people’s identity that they can’t ever switch gears.Read here
- Indian Real Estate Market Insights – The residential market breached a nine-year high in terms of annual residential sales in 2022 in an inflationary environment that caused increasing concerns on economic growth across the world. Thus, while the momentum looked strong, it remained to be seen if it would sustain in 2023. Read here.
- A very different kind of “retirement problem– When we leave a country, we have some experiences, memories and perceptions which we take along. Read here.
- The UPI Paradox– UPI has made life easier for merchants and individuals, but has it become a bit of a burden for fintech startups?. Read here.
- A Paradigm Shift in India’s Consumption Patterns is happening right in front of us – With our youthful population and a burgeoning working-age demographic set to last for next 2-3 decades, the prospects for increased per capita income and disposable income are looking brighter than ever. Read here.
- Optimism And The Stockdale Paradox – To survive and succeed like Jim Stockdale, we need to hope for the best but also be prepared for the worst. That would necessitate keeping the faith even if economic growth slows, some macro indicators weaken or capital flows turn negative. It is easy to be an optimist when the portfolio is hitting new highs, but we must retain our optimism even when stock prices are falling. By confronting the brutal facts of the market, investors can avoid the trap of overconfidence and make more measured choices. Read here
- KPR Mill training its employees for other companies – Recently, it adopted a system of campus placements; so far, 5,000 employees have been placed in IT companies. Ramasamy says they are the first organisation in the world to let their employees move to other companies. The gesture has instilled confidence in girls who come to work for them from villages around Coimbatore. Read here.
- India Capex story – is the centre push enough? – Over the past few years, the public capex has remained strong mainly led by the centre. Notably, the share of capex within the total expenditure has undergone a substantial increase, rising from 12.1% in FY21 to 22.2% in the budget estimate for FY24. Read here.
- The gap between India and China is massive – While China’s growth is downshifting, it was still massively larger by nearly $15 trillion dollars last year, says HSBC. “Even with China’s growth slowing, and India’s accelerating, the gap between the two economies will continue to rise for the foreseeable future, expanding to $17.5 trillion dollars by 2028 on the IMF’s forecasts,” the report says, adding that this difference is equal to the current size of the European Union’s economy. Read here.
- Dramatic times in Japan’s capital markets: Jefferies’ Chris Wood – The intervention by the Tokyo Stock Exchange to improve capital efficiency among listed companies has proved “decisive”, according to the global head of equity strategy at the brokerage. Read more.
- The Warehousing Boom in India – Sensing the opportunity in warehousing infrastructure and expected rise in demand, institutional investors are pumping in capital. The sector has received $10 billion investment in six years since introduction of GST. Read here.
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That’s it from our side. Have a great weekend ahead!
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The content of this newsletter is not an offer to sell or the solicitation of an offer to buy any security in any jurisdiction. The content is distributed for informational purposes only and should not be construed as investment advice or a recommendation to sell or buy any security or other investment or undertake any investment strategy. There are no warranties, expressed or implied, as to the accuracy, completeness, or results obtained from any information outlined in this newsletter unless mentioned explicitly. The writer may have positions in and may, from time to time, make purchases or sales of the securities or other investments discussed or evaluated in this newsletter.