During my flight from Chennai to Visakhapatnam (India) last month was going through a business magazine and came through Subhiksha. Subhiksha - an Indian retail chain with 1600 outlets selling groceries, fruits, vegetables, medicines and mobile phones. It was started and is managed by an IIM A alumnus. However, due to ambitious plans and liquidity squeeze Subhiksha shut down several stores across India. The founder wanted greater stake in equity and due to the debt squeeze and the payment cycles he had no option but to let his dream off the shelves
Even the third largest UK Bank had to succumb to a Middle Eastern bail-out last November giving the investors a significant downside protection. The result being that last month the investors sold their stake for a whopping 2 Billion$ profit making the shares dive southwards for no fault of the bank’s performance.
These are testing times for corporates across the globe and with rigid lending by banks it is interesting to see the rest of the year would unfold
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