The stock has lost more than 50% of its value since the company announced a share buyback in April. This shows a serious crisis of confidence among investors
Infinite Computer Solutions (India), which has launched a share buyback amounting Rs27 crore, continues to languish on the market, accentuating the concerns of investors.
The Infinite stock lost more than 60% from Rs186 on 13th April, when the company announced the buyback, to 30th August, when it closed at Rs Rs71.65 on the National Stock Exchange (NSE).
Infinite went public in January last year. But on 11 April this year, the board of directors suddenly decided to buyback 9.9% of its equity at a price not exceeding Rs230 a share. This ignited concerns among shareholders and precipitated the fall in the share value. (Read, 'Infinite Computer's share buyback after 16 months of IPO raises several questions'.)
Last week, the company informed the NSE that till 26th August it had bought back a little over 9.82 lakh shares for Rs12.36 crore, completing about 45% of the buyback amount planned.
In the past two trading sessions-on Friday and Monday-the stock has gained over 20% even while the broader market has slipped. In the morning session today, it continued to move up, to a little over Rs91.
Market sources tell us that despite the short speculative rally, this stock will be unable to attract the interest of genuine investors.
In its response to the Moneylife article mid-June, the company said that the only reason it had undertaken the buyback was that it felt its shares were highly undervalued, given the prospects, and that was the only reason. Apparently, investors don't yet agree on this. The stock has badly sagged even after the so-called buy back scheme has been well underway.
In the quarter ended June 2011, Infinite's consolidated revenues stood at Rs262.30 crore, a 5.8% growth, q-o-q, operating profit grew by 4.9% to Rs44.7 crore, but net profit (after tax) was stagnant Rs29.90 crore.
The campaign is single-minded, the creative takes the correct leap, and gets the message across through simple stories. All in all, good work
Tata Docomo no longer wishes to 'keep things simple, silly'. And that's a relief. Hope that marks the death of those horrendous 'talk shows' conducted by actor Ranbir Kapoor. An idea that was actually cool in theory but got murdered by some really stupid scripts.
But Tata Docomo is here to stay and there's no getting away from it. They have launched a brand new ad campaign titled just that: 'No Getting Away'. Indicating a powerful mobile phone signal. And there are quite a few commercials on air.
In one commercial, an SUV is seen rocking hard inside an underground parking lot. Clearly, a couple is enjoying some great sex therein. (Sadly, you don't get to watch the action!) Suddenly, 'anti climax' happens; the shocked male's phone goes off.
In another ad, a dude is seen crapping inside the airport toilet. And his phone, placed in his trouser hung by the door, starts vibrating and the phone falls down. One ad features a suspicious dad. He is worried his daughter talks on the phone late into the night. The beti conceals the phone inside the cupboard, but it's of no use. The thing goes off.
The last one I watched is the cutest. A maid, while cleaning the house, finds a cell phone. Because no one's watching, she grabs it and hides it inside her blouse. But the memsaab, who arrives on the scene, nabs her after the phone starts buzzing inside the blouse. By the way, a maid did scoot off with my phone last year. Maybe I should have checked you-know-where!
I like this campaign for three reasons. One, the promise is single-minded. The Docomo signal is very strong. That it will help you stay connected wherever you might be. That keeps the communication relevant and crystal clear. Two, the creative takes the correct leap. The idea is to feature situations where you don't want the phone to work, but it does. This approach makes the ads funny, entertaining and irreverent. And hopefully, memorable. Finally, the commercials tell simple stories. So the cost of production must be very low, and therefore many such commercials can be produced ensuring freshness in the media.
All in all, good work. Full marks for the simplicity. This is what television advertising should be. And yes, let me also keep another thing simple for Tata Docomo: Now that you are on to a good thing, please immediately kill those rubbish Ranbir Kapoor talk shows.
Shailesh Gandhi, central information commissioner, says that with more and more public projects handled by PPPs, people have a right to know what is happening to these assets. He was speaking at a Moneylife seminar at the weekend
Public-private partnerships (PPPs) must come under the purview of the Right to Information (RTI) Act because they concern public assets and resources, says Shailesh Gandhi, central information commissioner.
"PPPs must be brought under the RTI. A lot of public assets, I think, are going to be shifted to these entities in the coming years. So, people have a right to know what is happening to those assets," Mr Gandhi says. "If information is denied, it is like a fraud, where public assets are privatised without consent."
He was speaking at a seminar on using the RTI effectively, hosted by Moneylife Foundation on Saturday.
Mr Gandhi says it is unfortunate that in many cases, public information officers (PIOs) reply that PPP documents do not exist, or that they are not traceable.
The central information commissioner mentioned that he had come across cases where documents were declared 'missing' within three years of signing of the contract. "How can they just go missing within three years? Even surprisingly, how does the contract itself disappear?" he wondered.
According to some activists, such 'missing' documents cases make way for new, or 'altered' documents, which differ substantially from the original ones. In many cases, facts and figures about the quantum of resources allotted to PPP projects are changed, they say. Therefore, they suggest that all contracts and related documents should be put up on the company website, or in some other public domain, as soon as they are signed, so that there is no chance of them getting lost.
Narrating from his personal experience, Mr Gandhi said that the truth can be revealed, even when documents are declared missing. "In a similar case the PIO said that the documents were not traceable. I asked him to report that the documents have been stolen. He was aghast and he refused. So I asked him to give me the evidence that the documents were not stolen. In the end he had to produce either the file or the backup," Mr Gandhi said.
According to Mr Gandhi, PPPs are 'substantially funded' by the government and hence should be subject to the RTI, even if the government may not hold a majority stake, or control in the project. Many government infrastructure and urban development projects are now handled by PPPs.
In a letter to Montek Singh Ahluwalia, deputy chairman of the Planning Commission, Satyananda Mishra, chief information commissioner has said, "In all such projects which are handed over to a PPP entity … the land, if not any other resource, given by the government forms a vital component of the project … and can be deemed to be substantial funding. Thus, a PPP entity should be deemed to be a public authority for the purpose of the RTI Act."
"The problem is that the moment information is sought about such an entity, public information officers deny information by saying that it is exempt from the RTI, because it is about a third party, and that the information is of commercial importance. That is not what the Act says," said Mr Gandhi.
He cited section 8(1) (d) that lists the exemptions. The section says that the disclosure must not 'harm' the third party whose views should be taken into account while replying to the query. The 'competent authority' must be satisfied that the larger public interest warrants the disclosure of information. "The other reason PIOs give for these queries about PPPs is that the information is held in a 'fiduciary' capacity. However, public interest overrides such restrictions," said Mr Gandhi.
The Central Information Commission, in a recent ruling, also spoke in favour of bringing PPPs under the RTI. In the order, Mr Gandhi said that even if private bodies resisted the RTI, it was the duty of the government to provide information to the public. The order also referred to guidelines issued by the Comptroller and Auditor General of India (CAG) that say the functioning of PPPs must be accountable and transparent.