courtesy SIDDHARTH CHATTERJEE
An Autobiography of a Equity Share:
Hello Fellas!!!....I, an Equity Share, has got an opportunity to recall my journey of stardom of highest volume churner to addition in the elite F n O list and then going further to become an almost permanent member of "The Nifty 50 ".
Well to start on a philosophical note, ‘our life has been like a Stock Market’.
Sometimes, in life, we have Bull Run - where everything looks bright, positive and with a Midas touch; but also at times Bearish Trend sets in -where we could not able to find a way out. Otherwise, life is like a range bound script only making intermediate highs and lows.
This tumultuous journey of life had its inception a by ‘joint partnership’ between two people. This joint effort became my birth place and these partners become my ‘parents’. Their pertinent planning, hardwork and timing finally results into bringing a new company into this fiercely competitive world, which was me.
My initial days were tough and we have to take help from ‘Group Companies’ for my proper grooming, who later become my ‘family members’. I grew up gradually and with passing time met my ‘first teacher’ in form of an ‘Angel Investor’ - who thought I have a very bright future ahead. He contributed his knowledge; money and expertise to aid me grow better. We in life always tend to remember our first teacher in life and he was a savior to me.
He, alongwith my parents took me to ‘school’, where I found lot of other teachers who were sharing a limited liability partnership between them. That was my entry to ‘Private Equity investors’. I spent a long time, my adolescence and my teen years under such experts who also inculcate in me their management know how and professionalism.
Then came the biggest turning point of my life when my Gurus felt I was grown up enough to face the cruelties of the outside world- Initial Public Offer.
Just thinking of the IPO process sent chills down my spine. I spent many sleepless nights thinking about how the public who is seeing me through the eyes of my financial statements’ performance only would react. The fear whether they will accept me or reject my existence was eating me away. My Gurus tried their best in introducing me to various people so as to make my struggle in this world less painful.
Then, finally the D-day comes when I was about to get listed at the bourses.
But believe me; proving all my anxieties wrong, my placement to ‘public’ was well taken. Infact I got oversubscribed by more than 100 times!! My acceptance brought tears into the eyes of my joint partners-my parents.
The Indian Stock Market was also at the onset of a Bull Run at that time. And certainly as per the lines of ‘Summer of 69’- those were the best days of my life.
Whoever met me got impressed and felt I am a sure-shot success for this market.
I had my days of closing in upper circuit for almost 15 days- so to sum up my transformation from primary market to the hands of secondary market was phenomenal. Everyone in their heydays expects accolades and appreciation for their work and I was no different. My exertions were rewarded not only by words but better P/E ratios and investors were willing to pay more than my earnings capability. I was elated, confident and satisfied about my performance and with life.
So my parents thought it was good time to move me to the next phase. My parent alongwith ‘the Board’ whom I consider as ‘marriage counselors’ got envy of my huge and growing stock price. Board approves my ‘stock-split’ which was no way less than a ‘marriage’ because like in every marriage, my Earnings (per share) also got halved this time. And the show off which I could garner as a Bachelor had been deprived off because; now; my ‘share price’ was also half of its previous value. I was proud of my value, read ‘book value’ (per share), which was also got same treatment. Nobody understands the agony of stock-split for an Equity Share.
But as success finds its path in its own unique way I also left no stones unturned to regain my status of high price script very soon reached the previous highs. The path to reclaim heights was amply supported by the market Bull Run I was referring earlier. The ‘Midas touch’ was actually working then and took me into the world of unrealized dreams. I found, a place in the sun, when tagged as one of those Bluechip companies. By leaps and bounds, I entered the FnO list and make inroads to Nifty 50 list in a short span of time.
When in life also we are in Bull phase we tend to ignore and disrespect many mistakes and at times take decision in haste.
I also jumped into the bandwagon which was headed to fools’ errand. I started playing too many new tricks of which I was master of none. I spread wings too thin and could not hold on my flight. The tables are gradually turning but I could not interpret the admonition. In my own dream world I was riding the crest on a wave.
I grew greedy; which by nature is always too little, and this Greed was no good, unlike Gordon Gekko.
At the same time my parents declared to have ‘kids’ i.e. ’bonus shares’ which further put pressure on my ‘earnings’ (per share). I exhausted almost all my savings to retain the front runner.
Then the inevitable happened. The Bull Run which I mistakenly assumed to be perpetual turned out to be a ‘bubble’, which had already burst by now.
The last few ventures were proved to be too risky and the latest corporate actions were good enough to make me fall on own sword. The market was entering into Bearish trend and how long this ‘amawashya’ would last was nobody’s guess.
My carelessness in selecting businesses and overlooking basic business fundamentals blew up on my face and once again I was leading the pack but this time it was downhill all the way. Nothing seemed to work my way and all efforts seems to wither on the vine.
But I managed to sail through the tough times with discipline and grit and caught in the trading range where my upper limit is capped and lower limit is covered. Nonetheless, now after facing all the music I am a changed man. I understand my core competencies and hope to make a comeback to steal the show in brisk yet measured manner.
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