Thursday, October 02, 2008

A Product

You know it's a bad economy when the chance of a Rs. 30 crore buy-out is headlines news in Business Standard.

Separately, stepping out into a dalal avtaar- I have thought of a complexish product. To make it even more complex/free from scrutiny, we can decorate it with a few trusts into it, will make it seem tax-friendly.

This is a promoter-financing boutique vehicle. Only for rights issues to promoters and preferential issues to promoters.

GreenRock LLP will finance promoter funding for acquire their shares in rights/pref issues. The slogan will be "Pamper your Company in Bad Times: Dilution-Free"

In return GreenRock LLP will get a many pieces of paper. On this, a vase mountain of deriavtives will be made and traded and I will only know it's rocked the market when it comes right back to me in an evolved form and I buy it and sell it again. Passing on the parcel till the music stops like it did in the old country song Mortgage Montana.

But how will GreenRock LLP get funds to fund promoter acquisitions? Debt is too expensive; I do not want to work only to service the debt like a bandhua mazdoor. Maybe I will need to get a HNI partner. I'm thinking Shah Rukh... He will have that reassuring, you-are-safe-with-me main hoon nah effect on clients. And the dimples are not bad either. Let's see.

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