It is necessary to have regulations in business “otherwise disasters like the housing bubble will loom large” said Mr. Sunil Mitra, Secretary, Ministry of Disinvestment, and Government of India while inaugurating a Two Day, Annual Finance Summit, Prahelika 2009 with the theme “Valuation of Equity” of the International Management Institute (IMI) Delhi.
While welcoming the speakers Dr. C. S. Venkata Ratnam , Director IMI gave insights on the importance of valuation. “It is imperative for government to build consensus towards a bold approach on disinvestment. This would help create resourses on funding expenditure and also ensure that growth does not lag behind,” said Mr Mitra
His address was followed by an enlightening address on Housing Finance, Securitization and India’s safeguard from the subprime crisis by Mr. S. Sridhar, CMD, Central Bank of India. Mr. Shankaran Naren, Chief Investment Officer, ICICI Prudential AMC, educated the audience on Behavioural Economics and its importance in the equity market. Dr. Arindam Banik, Professor General Management, Economics and Strategy IMI, shared his views on the current uncertainty scenario all across the globe.
While Mr. Amitabh Chakroborty, President (Equity), Religare elucidated on the valuation of unlisted companies, the approaches to valuation and the Equity Valuation Model, Mr. Udayan Mukherjee, Managing Editor, CNBC TV 18, apprised the audience of the qualitative aspects of valuation, fair value v/s market price, sine curve of cyclical stocks and the subjectivity of markets.
Speaking on Unlisted Equity Valuation Models: PE Perspective, the moderator, Ms. Damini Kumari, Senior Editor- ET Now, stressed on the impetus that private equity gives to a firm to catalyse its growth.
Speaking on Unlisted Equity Valuation Models, PE Perspective, the moderator, Ms. Kumari stressed on the impetus that private equity gives to a firm to catalyse its growth. On the issue whether VC Valuation matter Mr. Avinash Bajaj, Co-founder and MD, Matrix India said that “Seldom have we passed on a venture stage deal due to valuation reasons”. Mr. Bharat Banka, CEO, Private Equity, Aditya Birla Group discussed on venture capital valuation, price v/s value, sustainability, differences between PE and VC and the subjectivity of valuation.
Mergers and Acquisitions are required for not just “Consolidate and creating critical size but also to Concentrate on core competencies and businesses” apart from gaining higher market share, strategic alliances, access to lucrative markets said Mr. Praveen Bhambani, Associate Director, PWC. He was speaking at the session on valuation of M&A. The session was also attended by corporate luminaries like Mr. Gagandeep Bakshi, AVP, SBI Capital Markets and Mr. Andy Lister AVP, Advisory Corporate Finance, KPMG India. The discussion covered topics like M&A approaches and synergy, Valuation techniques, organic and inorganic growth, buyer and seller perspectives, industry changing market strategies to valuation of intellectual capital. The session was moderated by Dr. Himadri Das, Dean Academics & Professor of Finance, IMI.
While speaking on and informative session on Demographic Shift with focus on Urbanization and Consumption Pattern in India Ms. Roopa Purushothaman zeroed on the slow rate of urbanization in India as compared to other nations, worsening inequalities in urban India, misunderstanding of rural India and the rise of boomtowns and niche cities like Surat.
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On the theme Real Option Valuation. Mr. K.Raghupathi Rao (Associate Director, UBS) opined that “valuation is not an output, it is an opinion, and is carried on with a highly interactive session”. He further explained that “real option is the management flexibility to decide whether to invest further or to stop. Real options come in where there is volatility, exclusivity, and contingency”. Mr Rao stressed on the need for valuation models which account for uncertainty, “for models which are based on the assumption of certainty can’t work”. Mr Rao concluded by saying that “the world of valuation works on the premises of exclusivity, uncertainty, and flexibility. The normal valuation techniques, however, do not capture these factors, and this is where the real options theory comes in”.
Speaking on the topic Valuation of Real Estate Properties Mr. Sanjay Dutt, Chief Executive Officer, Jones Lang LaSalle Meghraj talked about the growth of the real estate industry, which has been tremendous in the last decade, and the scope it offers. He shared his expertise on the valuation of real estate. Mr. Sachin Gulati, Head of Valuation, Jones Lang LaSalle Meghraj spoke about real estate, property, the differential between price and value, the need to understand one’s product and how to value the same. He said that “the development of the real estate sector is not homogenous, and talked about the development life cycle of a project” The session was moderated by Mr. Paul Vandenberg (Professor of Economics, International Management Institute).
About FINALYZE – The Finance Club of IMI
At IMI, 'Business Leaders’ in the making, are involved in constant endeavours to supplement the pedagogical inputs with spirited activities. Finalyze means to “conclude something” and being true to its name the club undertakes several initiatives like stock market simulations, quizzes, discussions, guest lectures, and summits etc. which provide a constructive platform for the budding finance warlocks to grow and apply their theoretical concepts in practice. The finance club of IMI seeks not only to provide the student with a clear perspective of issues in finance but also to develop their own perspective about the same.
About International Management Institute (IMI)
International Management Institute (IMI) was established in 1981, as an autonomous non-profit educational society under the Societies Registration Act 1860, to meet the widely felt need for internationally oriented management education/ training for managers at all levels in industry, government and public systems. The academic programs of the institute continue to enjoy full support of the corporate sector as well as the Government of India since its inception. Today, IMI holds a place of distinction among the premier schools of management for being the first corporate sponsored business school with strong international orientation in India.
IMI follows international standard curricula in its programs, which has been enriched by its academic collaborations with a number of leading B-schools in Asia, Europe and North America and prepares participants to successfully manage and lead in an increasingly global business environment. IMI's educational programs have been recognized by All India Council for Technical Education (AICTE) and Ministry of Human Resource Development, Govt. of India. The corporate world in India, public, private, multinational companies, international consulting firms and other organizations have employed its alumni who are rightly called, the Achievers. For more information about the IMI please visit www.imi.edu