Posts Tagged ‘Investors’

Virtual Investor Presentations – How To Meet Public Company CEO’s From The Convenience Of Your Desk

January 21st, 2010

Investor meetings are the life-blood of public companies. They can motivate potential investors to invest in a company as well as provide existing investors with information about their investment. To reach new investors, CEOs traditionally engage in road shows traveling from city-to-city to meet with investors. However, today the time and financial costs of travel have skyrocketed for busy executives, as well as investors and analysts. Worse, with today air traffic problems executives find themselves stranded in airports wasting valuable time that could be used to build a business.

Virtual Investor Presentations (VIPs) solve this problem through live virtual investor meetings using the internet to present the PowerPoint and the audio for the speaker’s presentation and Q&A. This allows CEO’s of public companies and investors to attend a live meeting in the convenience of their offices.

VIPs are NOT webcasts of live conference presentations. They allow the audience to interact with the presenter and receive answers to their questions just as they would at the live conference itself.

VIPs don’t replace face-to-face meetings; rather, as part of a comprehensive Investor Relations Program, they complement such meetings. Just as companies use webinars to market their services and products to potential buyers, and then follow-up with one-on-one sales meetings with serious prospects, cost-effective Investor Relations Officers companies use VIPs to introduce their company to potential investors, and then travel for one-on-one meetings with investors anxious to make a commitment. » Read more: Virtual Investor Presentations – How To Meet Public Company CEO’s From The Convenience Of Your Desk

How to Use Video in Your Investor Relations Strategy

January 11th, 2010

Raising Your Profile

In this economy of depressed markets and money-conscious investors, the cost of raising capital or your stock’s profile is not only getting higher but the ROI is practically non-existent. It seems like every company is working harder and spending more on investor relations and marketing campaigns but yielding far less results.

In raising your stock’s profile, nothing is more important than building solid relationships, creating opportunities to pitch investors and differentiating your company to attract new investors. Reaching new investors is the most expensive and time consuming part of an investor relations strategy, yet it is an often fruitless process – especially for small cap companies like those listed on the Canadian TSX Venture or the US’ OTCBB exchanges.

If your company is going to spend any money on an IR or marketing campaign to raise the profile of your company’s stock, you better make sure that you have put in place the right corporate branding that targets investors and not just your clients. If you don’t, you may lose thousands of dollars in investments from investors that would have otherwise been interested in your company’s stock but invested elsewhere because your lack of a corporate image. » Read more: How to Use Video in Your Investor Relations Strategy

Few Points About Reliance Power Ipo Investors Should not Overlook

January 8th, 2010

The Securities & Exchange Board of India (SEBI) has asked Kotak Mahindra Capital Company Ltd, lead manager to the Reliance Power IPO, to provide certain clarifications related the public offer even as concerns have been expressed over corporate governance issues involved in issue of the company’s shares to promoters at par and transfer of Reliance Energy’s power projects to Reliance Power. The Anil Ambani Group had stated recently that SEBI’s clearance for the IPO is awaited.

REL investors say that approval of shareholders was not obtained for transfer of power projects –– core business of the company which is to bring in revenues –– to Reliance Power. This, being a major decision with a significant impact of the company’s future –– should have been placed before the shareholders.

REL did not inform stock exchanges about the transfer of power projects to Reliance Power. Being a listed company, REL should have informed the exchanges about this important decision which has an impact on the future earnings of the company. According to SEBI norms, listed companies have to inform stock exchanges about all decision that have a bearing on their earnings.

Dharampal Sabharwal, a Rajya Sabha member from Punjab, had drawn the attention of finance minister P Chidambaram and SEBI to irregularities reported about the Reliance Power IPO. While the promoter companies have been issued 500 crore shares of the company at Rs. 2 per share, the IPO is said to be aiming at a premium of Rs. 60 per share from the public. Some investors have also written to SEBI, complaining about irregularities.

Reliance Power had filed draft red herring prospectus with SEBI on October 3. Usually, clearance from the regulator is granted in three weeks and there was expectation that the IPO would get clearance on Tuesday.

While ADAG still awaits clearance for the issue, it is understood that Kotak Mahindra is communicating with SEBI for the clarifications. The Group wants to issue shares at a face value of Rs. 2 per share, but the regulator provides permission for such pricing only in case the value of the shares is Rs. 500 or more.

The clarifications sought by SEBI are in line with SEBI (Disclosure and Investor Protection) Guidelines of 2000. “If any additional information/clarification is sought by SEBI in relation to the draft offer document from the merchant banker(s), SEBI may issue such observations within 15 days from the date of receipt of satisfactory reply from the merchant banker(s),” say norms framed by the regulator for such clarifications.