iStreet Network Ltd has informed BSE that the Board of Directors of the Company at its meeting held on August 17, 2015, inter alia, has approved following businesses :1. Draft notice for convening 28th Annual General Meeting of the Company on September 23, 2015;2. Draft Postal Ballot Notice for transfer of ‘iStreet Bazaar’ project to its wholly owned subsidiary, M/s. iStreet Bazaar Private Limited with an intent to unlock the true potential of Project and to pave way for greater capital participation from private funds, venture capital funds etc.Source : BSE
Is this positive or negative or neutral?
If the company is so small, does it really need a subsidiary?
Question: Regarding transfer of iStreet Bazaar project to subsidiary?
Ans: The Board of Directors of the company is seeking an approval from the shareholders of the company to transfer iSB project to its subsidiary at an opportune time.
We have been meeting with various venture capital funds and private funds, people from large companies to be as our team member, technology companies etc. who like iSB project but express their inability to participate in a listed company due to their internal restriction and regulatory requirement like acquisition, convertibility time lines of any instrument etc.
Should there arise an opportunity of where someone getting participated in the project iSB in the form of capital, team, technology etc., the Board is ready to take a decision and there shall be no delay and the opportunity is seized immediately.
The valuation for investment by Venture Funds and Private Equity Funds are on different parameters like – the concept, existing and potential customer base, technology engine etc. which are normally not captured in the market traded valuation. As, the transfer is proposed to happen to a wholly owned subsidiary, the advancement of the Project and the benefit reaping from it will continue to reflect for the holding company shareholders as well.
The below link shares management interview on business and growth plans.
From AR, with revenues less than a crore for 2014-15 and loss making, wondering why would the promoter take ~25 lakhs as salary (~25% of revenues as salary !!). This doesn’t speak highly of promoters.
@sivakkri,
We shouldn’t evaluate all the companies with same set of rules.
Some companies when they are in early stages of growth, it is easy to report 100% growth qtr by qtr. iStreet belongs to the same category. Last qtr they reported a sales of 1.7 crores, for the current FY they will surely report 8-10 crore sales (gross merchandise value). Which means 10 times of last year sales, i don’t think 2lakhs salary for month is a big issue at all.
Current method of e-commerce enterprises value is based on GMV, you can read the flipkart / snapdeal comments, they all report in terms Gross Merchandise Value to arrive the business valuation. When they report good turnover/ acquired by some giants / coming infibeam ipo…they will provide some triggers and everyone will be in rush to buy the same.
Here in the UK we have similar Company called Argos(how they transformed to digital retail store .
Initially they opened departmental stores in remote areas in UK.It was a instant hit because people do not had to travel to city to buy things. They used to Put catalogue at store and giving catalogues to people also to take home.People were ordering from Store and collecting later.So it was all without internet.
In sort Argos was Villagers Store.
But now they have store all over the UK and Ireland.
Later The Internet grew up people were not interested in Agros Any more. As they can order now from their Computers (Amzon and Ebay) directly to home.
Around 2012 Home retail Group(Agros) changed the CEO and they had John walden.
Mr Walden saw the opportunity as Argos already had many retail store.
He digitalised the store to Touch screens computers and Catalogues.
Now they Take orders also from Websites and mobile app and Store itself.
Only sites receives more visitors in the UK than Argos are Amazon and eBay.
Why I buy from Argos-
Buying From Amazon is not as good as in India where the delivery is free and fast.
Here you have to pay for delivery most of the time.
Later in future Amazon/Flipkart/snapdeal will also start to charge the delivery cost (Manpower cost is going rise in India as well).
It is convenient to collect as per your suitable time.
Costumer service is there instantly on the store itself.So you can change/return the order(No hassle of calling costumer service and ask them to collect)
Obviously price are also Competitive.
In short iStreet have great road ahead as it is already a successfully business here in UK.
promoter stake has been reduced to 49.86% in sep16 from 57.01 in fy15-16. can anyone help me on this, so far what i studied is promoter decreasing their shares is negative sign…
