“A gem, by chance, may lie before you,
And be gleaming in the rubble,
But fate won’t pick it up for you –
It expects you to take that trouble”
– Hitopadesa
capital options
GETTING CAPITAL WHILE KEEPING FULL OPERATIONAL CONTROL
“These in a fort are said to be The points of vulnerability;
If it be small or insecure Or lacks the will to long endure!"
– Hitopdesa
are you running on promoter (your own) capital?
do you depend on bank loans? well then! even your personal assets are at risk!
why would you put everything at risk when can have a "currency" as valuable and abundant as you wish!
WITHOUT A COMPETITIVE ADVANTAGE IN COST OF CAPITAL, THERE IS NO LONG TERM VIABILITY OR SURVIVAL in a scenario where the big are growing bigger and others are fighting for residue
your competitors may be accessing capital 2-5 times cheaper than you!
you are competing with companies that are public and get "free capital" from the markets for running the same operations that you do!
EVEN THE BEST BUSINESS CANNOT EVENTUALLY COMPETE WITH "FREE MONEY!"
""Life looks just a little more mathematical and regular than it is; its exactitude is obvious, but its inexactitude is hidden; its wildness lies in wait"
- - G K CHESTERTON
business (promoter) risks are greater that you envisage
ANYTHING CAN HIT AT ANYTIME - AND IF ITS your MONEY YOU ARE PUTTING IT is ALL AT RISK
AND THE BANK DOES NOT CARE! IT WANTS ITS POUND OF FLESH irrespective of the state of business!
THE ONLY CAPITAL PROMOTERS KNOW IS THEIR OWN OR BANK - THAT IS NOT EVEN 2% OF CAPITAL AVAILABLE FOR COMPANIES
WHYWOULD YOU SHUT YOURSELF TO 98% OF CAPITAL? AND MUCH CHEAPER AND LESS RISKY
“Worth is such for those who know it, But fault for them who have no merit.
Fresh river water, a pleasant potion, urns undrinkable in the ocean”
– Hitopadesa
“One who keeps his treasury Portioned well and equally
Whose spies covertly ply their trade Whose counsels are in secret made
He’ll rule the earth right to the sea”
– Hitopdesa
DERISKING – Most promoter families have substantial part of their capital invested in the business and bear all the risk
Why Raise Capital?
FAMILY– Creating a liquid market and unitizing stocks enables easy transfer of shareholding to the next generation and delinking operations from shareholding
your survival depends on it!
UNITIZATION – Gives promoters a “currency” to leverage/monetize their business and do other things/grow without losing control of their business
GROWTH CAPITAL – Pay down debt. Substitute Equity for Bank Loan/Credit, Buy out Competitors, Scale business
MONTETIZATION – Create liquidity – Most promoters are Asset rich, cash poor
Pl Read Disclaimer
"Itis in the nature of those in hot pursuit of something,
not to pause and reflect upon the final outcome”
- Panchtantra
YOUR SUCCESS DEPENDS ON CHEAPER AND ABUNDANT CAPITAL
Please Read Disclaimer
Do you believe you could scale exponentially if you had capital access?
You want the capital but don't want to compromise your independence/control?
You may be known in your business but do those with capital know you
WHAT is the "REAL" VALUE of your Company?
NO ONE KNOWS TILL THE MARKET PUTS A PRICE TO IT!
YOU MAY BE WORTH WAY MORE THAN YOU THINK! - LEVERAGING THE PARTS |
Every Company has hidden gems that they miss in plain sight - Brands, SpinOffs, Licensing rights, Intellectual Property etc |
YOU WILL NEVER KNOW! UNLESS YOU VENTURE OUT! AND SEEK INVESTORS! |
You can do that with Full Control of your Company and high promoter shareholding |
BUILD AND THEY WILL COME |
Investors look for Raw Ambition in promoters and have little interest in being active participants or in the Real Estate that promoters may have in the company |
YOU ARE WORTH MORE THAN YOU THINK
“Even little wealth when one Considers as a treasure store,
hen fate, I think, for his had done What it could, and does no more”
– Hitopdesa
EVERY COMPANY IS WORTH MORE THAN WHAT ITS PROMOTERS THINK?
SOMEONE GIVES YOU "FREE MONEY" IN RETURN FOR A VERY SMALL PERCENTAGE OF YOUR COMPANY (NOT YOUR OPERATIONS)
WHAT YOU ARE VALUED AT HAS NOTHING TO WITH YOUR REVENUES/PAT ETC,ITS GOT TO DO WITH YOUR POSITIONING, YOUR BRANDING, YOUR FUTURE
THERE ARE WAY MORE PARTS TO YOUR BUSINESS, WAY MORE BRAND VALUE, INTELLECTUAL VALUE THAT HAS NOT BEEN CAPITALIZED
HOW CAN YOU BE CORRECTLY VALUED IF 99% OF CAPITAL AND ALMOST 100% OF THE WORLD'S INVESTORS DON'T EVEN KNOW YOU!
YOU MAY GROSSLY UNDERVALUED
“Be it counsel, heroic feat Swift attack or quick retreat
When the time is ripe, one oughtTo act, not stay immersed in thought”
– Hitopdesa
1/10 COMPARABLE SIZE COMPANIES IN OTHER COUNTRIES ARE GETTING 10/100 TIMES THE VALUE OF INDIAN COMPANIES - WHY?
"DRESS" UP FOR INVESTORS, HAVE A "STORY" TO TELL, TELL THE STORY TO THE RIGHT INVESTORS
Almost 95% of potential Investors may have no idea who you are. While you may be known in your community, business, it does not give you access to those who have capital
plug you into the global financial system. no company has ever reached the top without access to global capital markets
You may have all your businesses under one company. Or you may looking at yourself as somone from an industrty. Or you may have never thought of differentiating yourself. Or you may have various annuity streams. Or you may not have thought of yourself in term of expertise
No Financial market branding. Financial markets can pay in multiples for a company they know. No company can reach out to over 5,000 investors without having a marquee anchor on board
Pl Read Disclaimer
“Victories of good warriors are not flukes because they position themselves where they will surely win, prevailing over those who have already lost”
– Sun Tzu
CHANCES ARE YOU ARE GROSSLY UNDERVALUED
valuation is in the ey of the beholder!!
equity capital with no stringsattached
CONTRARY TO POPULAR BELIEF, CAPITAL IS A COMMODITY AND IN ABUNDANCE!
The only thing between you and Capital is that the guys who have the Capital don't know your story
You can access capital and don't need to compromise your independence/control?
Would you consider diluting 10-20% of your company to Passive Investors!
do you have your own currency? supercurrency?
your stock can be the "us dollar" and printed as much as you want or the "currency" of some socialist country that no one buys or sells - its' your call!
but like the US DOLLAR, it should be FREELY available for others to buy & sell and should hold value and trust!
Can you take a small chunk of your stock and convert it any day into cash? Is your Wealth/business/company really "liquid" if you needed urgent capital?
“One should not thunder just in vain like autumn clouds which have no rain
The wise to strangers don’t declare what they can or cannot bear”
– Hitopdesa
INDIA IS AT AN INFLECTION POINT - DO YOU HAVE THE CAPITAL TO LEVERAGE THE COMING BOOM!
THE GOLD RUSH IS COMING - WILL YOU BE A PART OF IT? do you have access to anytime cheap capital to be part of it?
THE OPPORTUNITY IS EXPONENTIAL....BUT THE MARKET IS CROWDED...THOUSANDS OF COMPANIES ARE JOSTLING FOR A PIECE OF THE ACTION...about 5% HAVE serveral TIMEs MORE ACCESS TO CAPITAL and investors THAN THE REST
WHAT ARE YOU WAITING FOR?
equity options
Please read Disclaimer
“Just as elephants are needed to catch elephants, so does one need wealth to capture more wealth”
- Chanakya
Unlisted Companies
1)Small Cap listing
2)Main Board Listing
2)Reverse Merge with a listed co
3)Private Equity/Foreign Lising
4) Family Offices
Listed Companies
1) Institutional Investors
2) Ultra HNW Investors
3) Family Offices
4) PMS/AIFs
5) Private Equity/Local markets/Global markets
PRIVATELY HELD? UNLISTED?
"None shall know what a king sets out to do. Only those who have to implement it should know when the work is begun or when it has been completed"
– Chanakya
A CAPITAL ACCESS ROADMAP!
DRESSING UP FOR CAPITAL ACCESS
1) The right packaging/presentation of what you are can increase your value for investors by 5x/10x and your stake dilution 1/5th or 1/10th
2) Investors don't care about your Offices/factories but the ability/ambition of promoters and what makes them uniquely placed to scale
CARVE MULTIPE PACKAGINGS TO ATTRACT MUTIPLE INVESTORS
LISTED/UNLISTED OPTIONS
1) No matter which business you are in or your size, chances are there are multiple businesses, carveouts, brands sitting "under the hood" of your company
2) Carve these new options without any new capital spending and precision target Investors who invest in these specific areas
3) Contrary to popular belief, listing your stock in the SME segment is the least intrusive way to access capital. Its low cost, low on minority innvestor interference and keeps you in full control of your business
Please read Disclaimer
listed?
“An ant hole may collapse an embankment”
-Japanese Proverb
a capital access roadmap!
PREREQUISITE
1) The First Hurdle you need to Cross? Market Capitalization! Institutional Investors/Family Offices/PMS/AIFs have minimum Market Capitalization thresholds and won't invest if your Market Capitalization is below that!
CREATING THE PARTS TO EXTRACT MAXIMUM CAPITAL FOR MINIMUM DILUTION
1) What can be Spun Off, Branded or otherwise packaged to drive maximum capital access with the minimum dilution of capital?
2) How can multiple capital option packages be created to cater to specific investor audiences
ACCESSING CAPITAL - Capital Sources/Quantum scales exponentially with Market Capitalization
1) Capital Sources/Quantum growth by 10x, 100x with Market Capitalization. Market Capitalization is the "Gatekeeper" between you and Capital
2) The ultimate goal is to be a part of an Index. That turns you into an "auto" capital receiver as very large amounts of capital invest in Index stocks
“Man is not a slave of man , but of money
Wealth or poverty decides whether he is great or a nobody.”
- The Hitopadesa
only listed companies have a "currency"/"super currency"
just 3% of companies in your business control over 95% of market capitalization...THINK OF THE DIFFERENCE IN COST OF CAPITAL....for you and for the top 10 companies in your business...
their highly priced stock gives them a "currency" equivalent to the us dollar - how do you compete with that if you don't even have a currency
....without public capital, it is impossible to have exponential capital...and without access to cheap capital, survival itself is tenous.....
WHY BEING PUBLIC IS CRITICAL FOR SURVIVAL
NOT BEING LISTED IS LIKE GETTING WATER IN BUCKETS WHILE YOUR WHOLE NEIGHBORHOOD HAS PIPED WATER COMING OUT OF A FAUCET
SUCCESSION
FAMILY DISPUTES, MARITAL DISPUTERS, SIBLING DISPUTES
THE VALUE OF ANY BUSINESS CAN GO TO ZERO - IT CANT BE ENCASHED IN PARTS
FIND BRANDS, LICENSING, FRANCHISING, MULTIPLE SPIN OFF OPTIONS IN THE SAME BUSINESS
ANY APPREHENSIONS ABOUT BEING PUBLIC ARE A MYTH
THE BENEFITS FAR OUTWEIGH THE MINIMAL WORK REQUIRED
I WILL LOSE CONTROL - It will not happen
THERE IS TOO MUCH COMPLIANCE - There is an industry to take care of compliance
I HAVE REAL ESTATE IN MY BUSINESS - THAT CAN BE 100% YOURS. INVESTORS CARE ABOUT BUSINESS NOT REAL ESTATE
EVERY COMPANY HAS LARGE HIDDEN VALUE
YOU CAN GET CAPITAL AND STILL KEEP ALMOST ALL OF YOUR COMPANY AND ALWAYS BE IN FULL CONTROL
''Without Oars You Cannot Cross in a Boat"
- Japanese quote
MULTIPLE VALUE LOCKING - THAT IS OUR EXPERTISE
We focus on Capital Options/Investors who put their faith in the Promoter's Vision and Execution Capability rather than "second guess" just because they brought in capital
KEEPING PROMOTER HOLDINGS AS HIGH AS POSSIBLE AND KEEPING PROMOTERS IN FULL CONTROL
Pros:
No loans to pay back, no Structured deal, no
Stock to buy back, No day to day interference in operations
Please Read Disclaimer
“Those on the defensive are so because they do not have enough to win; those on the offense are so because they have more than enough to win”
– Sun Tzu
HOW DO YOU GET MORE CAPITAL THAN YOUR SIZE WITH JUSTIFY - SPECIALLY WHEN YOU MAY NOT HAVE THE "FINANCIAL MARKETS PEDIGREE" TO JUSTIFY
WE HAVE A DEEP UNDERSTANDING OF THE WORKINGS OF FINANCIAL MARKETS
WE KNOW WHO TO GO TO FIRST, WHO WILL GIVE YOU THE FINANCIAL CREDIBILITY FOR THEN GETTING LARGER POOLS OF CAPITAL THAN YOUR AMBITION DESIRES BUT SIZE DOES NOT PERMIT
YOU CANNOT ACCESS FINANCIAL MARKETS RELATIONSHIPS YOURSELF THAT TAKE DECADES TO MAKE AND EVEN IF YOU DO, ITS LIKE THROWING STONES IN WATER
it is imPOSSible for any co to understand the capital ecosystem, the hierarchyy, the FOOD chain, who has what influence on what kind of inVestors...doing it yourself is finding a needle in a haystack
Pl Read Disclaimer
Value depends on the buyer - And we know the motivations of investors and what they can pay
Please read Disclaimer
“Victory in war is not repetitious, but adapts in form endlessly”
– Sun Tzu
THIS IS WHERE WE COME IN! WE KNOW WHO TO GO TO FIRST, WHO WILL GIVE YOU THE FINANCIAL CREDIBILITY FOR THEN GETTING LARGER POOLS OF CAPITAL THAN YOUR AMBITION DESIRES BUT SIZE DOES NOT PERMIT
We help you create value and spin off brands, divisions, parts of your business without effecting your overall control
it is impssoible for anyt co to understand the capital ecosystem, the hierarchyy, the good chain, who has what influence on whtat kind ofi inestors...doing it yourself is finding a needle in a haystack
Global companies making strategic investors - Global companies have their own motivations to pay extra - increase in their market cap on India entry, diversifying their product portfolio, spending their extra cash
OUR ONLY MISSION IS PROMOTER WEALTH
“A gem, by chance, may lie before you, And be gleaming in the rubble,
But fate won’t pick it up for you – It expects you to take that trouble”
– Hitopadesa
MONTETIZE - PUT LIQUIDITY IN THE HAND OF PROMOTERS
HIGH PROMOTER HOLDINGS - PROMOTERS ALWAYS IN CONTROL
CREATE A PERMANENT STREAMS OF ANNUAL PAYMENTS TO PROMOTERS UNDER ALL CIRCUMSTANCES
CREATE SOURCES OF "FREE CAPITAL" FOR PROMOTERS
FIND BRANDS, LICENSING, FRANCHISING, MULTIPLE SPIN OFF OPTIONS IN THE SAME BUSINESS
SCOPE & SCALE OF SERVICES
ACCESSING FINANCIAL MARKETS – Exploring equity capital options and reaching out/selecting Intermediaries and Investors
ms of one time payouts and perpetual payouts
VALUE DISCOVERY & UNLOCKING – ExplorE multiple value enhancing options including but not limited to spinoffs, demergers, new companies, reverse mergers to extract optimal value and position companies targeted to Investors/strategic partners and other interested parties with different objectives
terms of one time payouts and perpetual payouts
PROMOTER HOLDINGS - Working with promoters on strategies of keeping Promoter holdings high through a number of dilutions in a Cash neutral manner
ENHANCING PROMOTER FAMILY WEALTH - Strategies of enhancing Promoter wealth both in terms of one time payouts and perpetual payouts
REPRESENTATIVE CLIENT LIST
Partial/Representative list. Clients may have been served by Magellan and/or Affiliates
REPRESENTATIVE INVESTOR LIST
Representative and Partial List of Investors reached out to or worked with by Magellan and/or Affiliates
access to capital pools
IMPECCABLE CREDENTIALS
Magellan is sheperded by Ashu Dutt, an authority on Promoters/Promoter Families and Family Offices across Asia. He has advised over 400 Promoters/Promoter Families over 2 decades
Ashu knows the issues, concerns and pain points of Promoters having known and interacted with over 2,000 promoters/Analysts/Institutional Investoros (Mututual Funds, PE, Insurance cos, Pension Funds etc) over his career spanning TV(Chief Consulting Editor/Marquee Anchor at CNBC, Bloomberg TV, ET Now), CEO of a top Institutional Brokerage firm listed in WhosWho in Asian Equities for 3 years, CEO of an Investment Banking firm and CEO of an Investment Management firm
Ashu's reach to Investors of all spectrums including UHNW, Family Offices, PMS, AIF, Venture, PE, Mutual Funds, Insurance and Pension funds is unmatched given his over 2 decades of one to one access on Financial TV, Institutional Broker, Investment Banker and Investment Manager
Ashu has also been on the Board of Directors and CEO of IIFL Ltd and SAB TV. He is also the Best selling author of over a dozen books with publishers like Wiley/Penguin
More on Ashu is on his LinkedIn profile at https://www.linkedin.com/in/ashu-khurana-51a90514a/
IMPECCABLE CREDENTIALS
“To succeed, men need wealth. . Elephants are needed to capture more wild elephants.”
- Chanakya
Get In Touch
Ashu Dutt
https://www.linkedin.com/in/ashu-khurana-51a90514a/
Email
ashudutt@magellancm.com
Physical
R 501, Remi Bizcourt
Shah Industrial Estate
Andheri (W), Mumbai 400 053
DISCLAIMER
Magellan works with Promoters/Promoter families/Family Offices in unlocking/enhancing value of their businesses by sharing inputs on value enhancing strategic creators like spinoffs, capital options etc
This Information is for our Clients Only and is relevant only to India. No circulation of this document by any means whatsoever is permitted without our written permission
This is not a Solicitation to buy or sell any Security
All quotes are from Niti! (Ashu Dutt)
https://www.amazon.in/Timeless-Indian-Wisdom-Business-Success/dp/8170949661/ref=sr_1_3?crid=TFPPAELRXUK6&keywords=niti+ashu+dutt&qid=1701406681&sprefix=niti+ashu+dut%2Caps%2C208&sr=8-3
and Sun Tzu & Chanakya on Wall Street! (Ashu Dutt)
Pros: