The company is expecting to raise Rs225 crore to fund expansion across business segments
SRS Ltd, a company into cinema exhibition, food and retail, said today that it is set to tap the capital market with a public issue of 3.5 crore shares of Rs10 face value each on 23rd August.
The company aims to raise Rs225 crore through the sale of a 25.13% stake under the IPO (initial public offering).
"Through this public issue, SRS will raise funds to set up cinemas, food courts, restaurants, retail stores, (and a) jewellery-manufacturing facility," the company said in a statement.
ICRA has assigned 'IPO Grade 3' rating to the offer, which indicates 'average fundamentals', the statement said.
"With the IPO, we wish to raise Rs225 crore to fund expansion across business segments," SRS Ltd CMD Anil Jindal had earlier said.
The company plans to add 54 new cinema screens, 33 new food courts, 29 retail stores and 17 jewellery stores to its existing network.
At present, the firm operates 23 SRS 'Value Bazaar' retail stores, 15 food courts and 30 cinema screens in north India. The company also operates five jewellery retail and wholesale outlets and a jewellery manufacturing unit in Delhi.
SRS is focused on establishing a presence across business verticals in tier-II and tier-III cities and towns across the country. For the fiscal year ended 31 March 2011, the company's total turnover was Rs2,042 crore.
MLM or chain marketers find newer methods to lure people. The latest ‘watch-advertisments-and-earn-money’ offer by AdMatrix is nothing but more money swindling in yet another avtar
Like the pyramid schemes which lure people with the promise of 'earning easy money', Admatrix, a Holland-based business entity, is offering extraordinary returns just to watch advertisements. The 'Watch-and-Earn' scheme was launched in India in October 2010. Admatrix provides AdStations that enable consumers to watch advertisements and get paid for this in return. The motto of the company itself is "Watch ads and get paid for it!"
To start with, a person pays Rs15,000 to register with Admatrix, in order to get access to the AdStation, to view advertisements for a period of one year. If one gets Rs1,000 a week to watch the ads, it would take about four months to recover the registration amount.
The registered person is then paid Rs1,000 to view ads for just 15 minutes every week. The payments for watching the ads are directly transferred into the bank account of the consumer 30 days after reporting that the ad has been viewed. The company also offers consumers an extra Rs1,000 for every two new people (or a binary pair) introduced to the scheme. So earning big money, which the company offers, is not possible merely by viewing the ads and will depend a lot on luring other customers.
In fact, Admatrix website for India says, "The maximum capping per day at the moment is set at Rs7.9 lakh per day, which works out to be in excess of Rs2.35 crore per month," which is an incredibly high amount to achieve. Of course, pocketing such earnings would require one to introduce hundreds of other Admatrix referrals, and for them to introduce many more in turn under a binary scheme.
The key to actually making money through this system would be to introduce more people to the scheme and get them to also introduce more people into the pyramid. Here again, only early entrants to a pyramid usually ever make money, and they too are usually re-invested when the schemes go bust.
Is Admatrix connected to Speak Asia?
According to some posts on the internet, Admatrix may be related to Speak Asia, the survey company whose officials were arrested by the Economic Offences Wing of the Mumbai police last week. A writer on 'www.behindmlm.com' has quoted a newspaper report that says, "The money trail of Rs600 crore that was allegedly transferred by the founders of the Speak Asia multi-level marketing scheme, to a Singapore bank in the past 12 months, has at least one account in the name of an alleged Holland-based advertisement ponzi scheme operator; which indicates that the operation may have been on a global scale."
The writer says, "Wondering why they hadn't just named the 'Holland-based advertisement ponzi scheme', my mind immediately flashed back to a review I did back in July on AdMatrix." The writer tries to strengthen the case of a connection between the two companies citing a report in The Deccan Chronicle that said, "CID sleuths said that they were investigating another company, Ad Matrix, the office of which is in the same building as that of Speak Asia."
The collapsible 'binary'
The FAQs section on the Admatrix website mentions how "previous ads will keep on accumulating till 30 days and then they will vanish." It says that there should be a minimum 48 hours gap between similar ads. Thus, a person who carries forward watching his ads to the last week might have to skip a few and may not be paid the entire sum of Rs1,000. This would likely reduce the pay to individuals as the binary would not have completed the required number of viewings of ads.
This, and the fact that earning more money is directly dependent on the number of people that are introduced to the scheme, show the unsustainable nature of the Admatrix system, which like many other pyramid schemes might cheat people of their money at the lower binary levels.
"There is nothing for the people to worry. Our risk management system is working perfectly and all the settlements are taking place," SEBI chairman UK Sinha said, while dismissing any suggestion about any adverse impact of the panic situation among investors
Mumbai: Amid a sharp plunge in the stock market to its lowest level in over a year, the Securities and Exchange Board of India (SEBI) today said it was closely watching the situation which it attributed to global developments and assured the system was well-regulated, reports PTI.
"We are closely watching the situation and our belief is that everything is perfect and right in markets," SEBI chairman UK Sinha told reporters.
He was replying to queries related to today's crash in stock market, where benchmark Sensex plunged by over 700 points or about 4% to slip below the 17,000 level for the first time since June 2010.
"There is nothing for the people to worry. Our risk management system is working perfectly and all the settlements are taking place," Mr Sinha said, while dismissing any suggestion about any adverse impact of the panic situation among investors.
Earlier, concerns have been raised that panic in world markets could lead to a possible flash-crash or collapse like situation on Indian bourses in the absence of a robust risk management system.
"These are matters about how you perceive the markets and the cues that you get from global developments. So, I will like to tell you that our markets and our regulatory system are perfectly on track," he said.
Earlier in the day, economic affairs secretary R Gopalan attributed today's fall in markets to panic-like situation among investors due to negative news flow about the US economy.
The US markets crashed sharply yesterday, triggering a sharp plunge in Asian and European markets today.