The IPO had received bids for 53.63 lakh shares from the total quota of 61.25 lakh shares on offer despite slashing the offer price and extending the offering
After getting a poor response from investors, Fatpipe Networks India Ltd (FNIL) has withdrawn its initial public offering (IPO).
FNIL’s listing plans remained a pipe dream as investors shunned the IPO due to the company’s weak track record. Moneylife had earlier reported on how the IPO was expensive in comparison with its peers. (Read here: http://www.moneylife.in/article/8/5842.html).
On 9th June, FNIL managed to get only 0.73 times subscription on the National Stock Exchange (NSE), thus falling short of the 90% subscription required as per the Securities and Exchange Board of India (SEBI) rules. The company had to slash its price band from Rs82-Rs85 to Rs80-Rs85 per share and extend the bidding period to 14 June 2010.
There were also controversies surrounding its products. According to Vickram Crishna of Radiophony, some of the technology claims were exaggerated. One of the key issues here is TCP/IP. This defines how the packets are assembled, at either end of the pipe. Once they are assembled, the pipe is just that, a conduit, and cannot change the packets. One can modify a closed circuit and use some other protocol for the duration of the circuit, but then it won't help transmit packets that originate or terminate outside the closed network any faster (slower, if anything, due to the extra processing). TCP/IP is critical, because that is the protocol governing nearly all data services nowadays, and all of the services running on the open Internet.
FNIL claims to hold patents on a technology called 'Router-Clustering', which enables customers to obtain highly redundant and fast Internet or Wide Area Network (WAN) access. It provides global corporations and government offices with technology that increases the security and reliability of WANs, corporate extranets, Virtual Private Networks (VPNs) and all last-mile Internet connections, including wireless connectivity.
The IPO received bids for 53.63 lakh shares from the total quota of 61.25 lakh shares on offer as on 14 June 2010 on the National Stock Exchange (NSE). Retail investors subscribed to just 25% shares on 14 June 2010. Brickwork Ratings had assigned an 'IPO Grade 2' to FNIL’s IPO.
The government’s chief economic advisor’s GDP growth estimate assumes importance since industrial production grew 17.6% in April, marking double-digit expansion for the seventh straight month
Chief economic advisor Kaushik Basu on Monday said the Indian economy is likely to grow by 8.9% in the first quarter of the current fiscal compared to 8.6% in the previous quarter, reports PTI.
"... This quarter, the quarter that we have entered... 8.9% growth in this quarter is something we can expect. We had 8.6% in the last quarter," Mr Basu said at a press conference.
His observation assumes importance since industrial production grew 17.6% in April, marking double-digit expansion for the straight seventh month.
Manufacturing, which constitutes around 80% of industrial growth, expanded 19.4% in April. Within manufacturing, capital goods production rose by 72.8% in April, while consumer durable rose by 37%.
Mr Basu said industrial growth was phenomenal in April, adding that the rise in capital goods manufacturing shows "optimism" in the corporate sector, while expansion in consumer goods production is a sign of durable growth.
"... Two segments of the Index of Industrial Production (IIP) which are doing well-capital goods and consumer durables.
A sharp increase in capital goods production is a bit of a sign there is optimism in our corporate sector. The other one is consumer durables, which is a sign of durable growth... It is a good sign," Mr Basu added.
He said the rise in manufacturing is significant, since the sector is labour-intensive, unlike services. This will have a positive impact on employment generation, which is far more important than growth itself, he said.
After registering over 9% growth in the three preceding years, India's economic growth slipped to 6.7% in 2008-09.
However, the Indian economy recovered in the last fiscal by registering a growth of 7.4%, led by 8.6% growth in the last quarter of 2009-10.
For the current fiscal, prime minister Manmohan Singh and finance minister Pranab Mukherjee have pegged the growth rate at 8.5%.
Nice idea, relevant strategy with great potential, a promise loaded with opportunities, but the creative interpretation of the ad is a total downer
YES BANK has released a set of three new TV commercials. And they have done the right thing-which is to marry their brand name to their promise.
The central idea is based on the word 'yes', and how it has the potential to bring you great happiness and change your life forever. While some would say it's the obvious first thought, it makes sense for the positioning, provides the brand a platform that it can climb naturally and uniquely. It also helps enhance the brand recall.
In one commercial, a young dude is seen proposing to a girl at a coffee shop.
After some degree of dithering, she says 'yes'. The second one features a corporate meet. A group of young (entrepreneurs?) are seen waiting for a tagda client to say 'yes' to their business proposal. And of course that happens after some suspenseful moments. The third one has a little girl inviting an orphaned doggie home. And she's worried her dog-hating dad will chuck the canine out.
But yes, it's 'yes' again, much to her delight.
So, yessssir! The promise is crystal clear. YES BANK will never say no to whatever you might demand. The staffers will always nod, never shake their heads. Even if you ask one of their pretty girls out for a cup of coffee (okay, okay, I am pushing it now!).
But here's the bottom-line: The campaign suffers from a key problem that's become very common in the Indian ad world. Everything goes along swimmingly, but things crash out at the final goal post. Reminds me of the South African cricket team, which does all the hard work, but chokes at the last minute.
Nice idea, relevant strategy with great potential, a promise loaded with opportunities, but the creative interpretation is a total downer.
The situations depicted are old-world, hackneyed and un-engaging. A corporate presentation is soooo predictable; it should have been mercilessly killed without a second thought. Man proposing to a girl at a coffee shop is straight from the sixties.
Only the little girl and the lost puppy commercial has some potential, but that too leaves you a wee bit cold because of poor execution.
What a waste of a good idea, I say! I think the client took his own product promise quite literally and said 'YES' at the very first creative presentation.
When it ought to have been a loud and clear 'NAHIIIIIIN!'