Finatter

  The sign of a raging bull market was evident with the oversubscription of Reliance power IPO by 69 times. The touted biggest Indian IPO not only made the promoter surpass  Mukesh Ambani but made Anil Ambani the richest Indian. Apparently, little did the investors know that its market cap will get eroded by 94% since IPO  in 2018. This dramatic episode unfolded for a reason. PRELUDE: The Reliance group was valued at 15 billion when Shri Dhirubhai Ambani passed away in 2002, This was followed by the split of the giant conglomerate with RIL led by Mukesh Ambani and sunrise industries like financial services, construction, entertainment, power, health care, aviation, and defense industries being led by Ani Ambani, but what went wrong with each company floated by him which cumulatively lost 42 billion in 12 years? Reliance infrastructure Infrastructure is greatly influenced by the government's stratagem, governments do impact real estate companies as its policy on infrastructure, cre

  Pandemic has changed the world in an unprecedented way. It has affected, disrupted, and changed our lives once for all. If the world as a whole gets shattered is the real estate spared?? Old Model of Real Estate : In earlier days real estate followed this five-staged value creation model from  1 Change in original usage of land from agriculture to residential or commercial 2 Physical structure put up from residential or commercial drives other new venture driving up the price of the land  3 Improvement in commercial value as the locality populates more due to facilities made available results in increasing the demand. 4 Periodic booms and busts  5 Impact of the economic development and Inflation When the utility of the land changes it results in a price rise so is when the commercial value increases or demand due to an increase in population.  The price rise of real estate is also catalyzed by the easy availability of credit due to repo rate cuts or economic development leading to a

  The Indian banking system has seen a tectonic shift with the introduction of digital payments. The RBI has stated that there has been a phenomenal increase in digital payments with a CAGR of 19% in value and 66% in volume for digital payments in India between 2014-2019, despite this exceptional growth 70-80% of transactions in India are still in cash this only shows the scope of further growth in this sector. Let us discuss how digital payments can generate profits despite their thin margins, direct government control of regulators on pricing with customers who prefer no cost for the services rendered with minimum customer loyalty. Digital payment Apps can create revenues from the following verticals 1 Bank: The watertight compartment between banking roles and payment apps has been blurred. Payment apps generate income by partnering with banks and cross-sell bank products to their existing customers like insurance, stock brokerage, etc on a revenue-sharing basis. 2 Wallets: As per th