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In a world full of hustle and hurry, a consumer keeps convenience as his/her top priority. Can there be something as convenient as getting almost all types of products? In a wide variety? Under one roof? That too at midnight? At accessible locations?  To cater to this emotion, 24Seven was launched in India which welcomed its customers at any time of the day, quite literally ! A retail store chain that was inspired by Japan’s culture of round-the-clock convenience stores. In a country, where streets are active at dark as well, where night owls are on a hunt to find some midnight snacks or have the urge to get cigarettes, 24Seven identified the gap to serve the market 24 hours, 7 days a week. Birth of 24Seven The very famous empire of the Modi dynasty was established by Gujran Modi in 1932, a multi-purpose serving company operating in various sectors mainly tobacco, food, and retail. The  KK Modi Group acquired a substantial piece of cake in the company named Godfrey Philips India Limited in 1936. The company mainly manufactured various types of cigarettes. The company launched its vertical “24Seven” in 2005 owned by Sameer Modi, the 3rd generation of the ModiCare group. To capture every type of customer, the stores were rich in all types of products, everything from groceries to freshly prepared food, cigarettes to cosmetics, etc.  To get a Marlboro at night, 24Seven was never away from sight.  The stores were opened strategically at India’s prime urban locations, where the lanes were alive even at midnight. In 2010, the brand had 50 stores, a century by 2015 and to date, a total of 154 24Seven outlets were present making their influence across north India. Groceries or Laboratories  24Seven proved to be the preferred go-to store for the midnight hunger. But the stores were more advantageous to someone else, not the customers but the ModiCare group itself! The store turned out to be a  live market research laboratory . 24Seven became a market testing ground for the newly launched products under the group like Modi Food products, Colorbar, Indofils, and more. 24Seven was more than a convenience store for Modi Group, it was a supply route for selling the cigarettes of Godfrey Phillips. This helped the company to collect customers' databases, analyse their preferences, and work for future product development and design accordingly. By 2023, 24Seven had a revenue of 396 crores. With an average EBITDA of 8-9%, though decent, it helped the vertical stay profitable and highly strategic for the Modi care group. Floods and Feuds The 24Seven has never been stable since the death of the KK Modi in November 2019. Since then the ModiCare group has always been seen in courts with their internal family disputes. After the despise, Bina Modi, wife of Late KK Modi was appointed the president and MD of Godfrey Philips, however, the sons of Bina and KK Modi believed in splitting the property and getting their shares. These internal feuds led to instability in the performance of 24Seven. Keeping the family disputes in court, the market outside attacked 24Seven with inflation, the operational costs went high struggling to keep up with the demands of the business. There was a major reason that led to the downfall of 24Seven and the impact was as quick as its name suggests, Quick-Commerce.  Brands like BlinkIt, Zepto, and Swiggy Instamart provided the market with more convenience by getting midnight cravings delivered to doorsteps in just 10 minutes. Even the big giants like Reliance and Adani entered the retail market and shook the 24Seven platforms.  Customer loyalty was something, 24Seven could never earn. There was a shift in the consumer preferences in the market that did not end up in the favour of the business. The sales of 24Seven literally went from 24 to 7. All these factors built a strong opinion of Godfrey Philips and it decided to take a swift exit from the business by March 31, 2024, leaving the stores alone at midnight unsecured. The store's net worth was plunged into a negative state, it was truly haunting for the company.  The aspect not to be ignored is the workforce. One of the major sufferers of this tragedy was the employees who are now not working and are idle 24/7. A situation where they can finally sleep at night but now, they do not want to.  The company's mismanagement mismanaged the finances of these fellow victims. Sleepless Solutions After the closing of all 24Sevens, I had no outlet to go at midnight. So I was hit with some optimum solutions, yes of course at 3 AM.  To have a deal with competitors rather than dealing with them. They can partner with Blink it and Zepto and get their products delivered through these apps that are exclusively manufactured by Godfrey Philips. To cover the losses and bring the ship above the sea, they could put a hold on the physical stores for a while to save fixed costs and start an online delivery system. They can analyse the customer data and check which products were least liked by the customers and then replace them with the products having the majority sales. One huge key driver that the 24Seven could not decode in the past 15 years is the presence on online social media platforms like BlinkIt and Swiggy. Expanding their online presence will stimulate people to get out of their beds and visit the stores. This also helps in increasing the brand loyalty. Think of it this way, 24Seven was just a grocery/retail store open at midnight. Exactly, soon this USP started to fade. I believe 24Seven should offer some exclusive experience that truly sets it apart from its competitors. They can make seating arrangements and make it a small cafe cum retail outlet in the middle of the night while complying with the rules and regulations, providing a unique experience, and overcoming the dominance of online platforms. Breaking News! Godfrey Philips has sold all 24Seven stores to a Delhi-based startup named “The New Shop”.  Another retail idea with a new twist and turn this time? A term sheet has been signed already and the transaction is expected to close between end of the September to early October 2024. So can we say 24Seven has reincarnated into a new being, The New Shop? Will it be called an alternative of 24Seven or will it manage to establish its own identity? 24Seven’s journey left us with a strong lesson: to survive, you must evolve. Adapting to shifting market dynamics and prioritizing a customer-first experience is key. As The New Shop steps into the spotlight, it holds the blueprint to avoid past missteps, ensuring a seamless and innovative shopping experience that anticipates consumer needs over the next five years. or else they will also  end up in heaven, like 24Seven . Author: Anshul Sethi Illustration: Parth Koul

Is the hype around SME IPOs justified? Anyone who is into the Indian stock market will recall Jaspal Bhatti's iconic PP Waterballs  sketch. In it, Bhatti glorifies the launch of an absurd IPO for a street vendor selling golgappas , portraying how investors can get swept up in the hype. As the IPO balloons, Bhatti books gains for himself while leaving unsuspecting investors trapped in a financial mirage. It’s all comedy, right? But what if that fictional world is no longer so far from reality? As scrutiny mounts on many recent Small and Medium Enterprise Initial Public Offerings (SME IPOs), the line between satire and the actual market starts to blur . Today, many of these IPOs have raised red flags due to opaque financials, questionable valuations, and rampant speculation. What was once a humorous tale of market manipulation has evolved into a cautionary warning for modern investors.  Understanding SME IPOs While the contribution of SMEs to total GDP was around 30-40% they were not able to flourish their enterprises since they relied majorly on bank loans for the expansion as the banks charged them high rates of interest and a larger portion of the money went into repayment of loan and interest. It was then, the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) got together to launch this initiative in 2012 where Small and Medium Enterprises could raise funds via Initial Public Offerings. They have less stringent listing requirements compared to mainboard IPOs, making it easier for smaller companies to go public. This move aimed to provide SMEs with a much-needed avenue to raise capital, while it also spurs economic growth and creates job opportunities. Unmasking the Dark Side However, as good as it may seem from the outside, SME IPOs have suddenly come into the eyes of investors because of their shady workings and the unjustifiable hype. Take Resourceful Automobile Pvt Ltd , for instance—a company whose recent SME IPO raised more than a few eyebrows. With an issue price of ₹117 per share and a minimum investment of ₹140,400 for retail investors, the offering appeared relatively standard on the surface. But look a little deeper, and the narrative takes a curious turn. The IPO, offering just over a million shares, was oversubscribed by 418 times , with bids worth a whopping ₹4,800 crores. For context, that’s hundreds of times more than what the company itself reported in revenues—a modest ₹17 crores over the last 11 months. And its profit after tax? Just ₹1.5 crores! Suddenly, the numbers don’t seem to add up, do they? The massive demand for shares of a company with just 2 showrooms and 8 employees which sells and services YAMAHA Motorcycles and Scooters, under the banner Sawhney Automobile begs the question: are investors really seeing value, or are they being swept up in a speculative frenzy? Resourceful Automobile  might be driving its way to the stock market, but what’s under the hood seems suspiciously underwhelming. Cases of such SME IPOs do not just stop here, another such case was the Broach Lifecare Hospital operating under the name Maple Hospitals. It floated an IPO to raise ₹ 4 crores, but received bids worth ₹ 604 crore. The hospital operates just 2 branches in Gujarat with 40 beds. Not to forget, the case of Boss Packing Solutions, a company which supplies packaging machines, labeling, capping, and filling equipment and operates from a 500 square yard facility in Ahmedabad. According to its Red Herring Prospectus (RHP), Boss Packing's profits remained flat over 2022-23 and 2023-24, and its net debt increased by 82% in 2023. But running by the trend, its issue size of ₹ 8 crores was oversubscribed by a staggering 135 times. As with Bhatti’s PP Waterballs , what’s glorified at first glance might not survive deeper scrutiny. The stark contrast between the companies’ financial health and their IPO success just smells like cases of an overhyped IPO built on shaky fundamentals. Addressing Concerns and Shaping Regulations   The surge in SME IPOs in India has not only raised concerns about investor protection but also revealed a shadowy practice involving some unscrupulous investment bankers. These bankers have been inflating valuations of SMEs in exchange for a share of the excess funds raised, creating significant risks for investors. Typically, these bankers charge a legal fee of 1% to 3%, but behind the scenes, they negotiate deals with promoters for as much as 50% of the inflated value. These inflated valuations are often backed by falsified financials, with the help of unscrupulous chartered accountants, misleading investors about the true worth of these companies. Such practices have raised cautions about market manipulation, pushing regulators like the National Stock Exchange (NSE) to tighten rules around SME listings. To combat this, the NSE has introduced measures like requiring companies to show positive Free Cash Flow to Equity (FCFE) for at least two out of the last three years and placing a 90% cap on the price of the securities on the first day of trading after getting listed. These steps aim to enhance transparency and curb excessive speculation, while SEBI continues to monitor the role of investment bankers in such dubious practices. As these regulatory reforms take shape, investors must be cautious, conduct thorough research, and not get swept up in the hype, as the SME IPO market becomes more scrutinised and tightly regulated. The NSE's crackdown is just the beginning, and more regulations are expected to follow. The capital raised through Initial Public Offering has witnessed a significant increase. As of June 13, 2024, SMEs stood up with 1000 Crores more compared to the last year which is around 2064 Crores, 53% of SMEs have given more than 300% returns in the past 2 years . This itself is a testament to the fact why retail investors have a keen interest in these SMEs as they can provide them with both short and long-term gains. What’s Next for SME IPOs? As the SME IPO market continues to grow and becomes more regulated, it’s clear that both opportunities and risks exist. For investors, the key takeaway is to stay vigilant and informed. Instead of relying on flashy pitches or questionable brokers like “Prasad” from Bhatti’s skit, take time to study the fundamentals of the companies you're investing in. Understand their financial health, dig into their valuations, and ask tough questions before putting your money at risk. In this rapidly evolving landscape, being cautious and proactive will help you make smarter decisions. Stay informed, stay skeptical, and most importantly, stay in control of your investments—because not everything that shines is gold. Authors: Brahmjot Singh and Palak Kalra Illustration: Japneet Singh Sethi

“Can Distant Turmoil Fuel Our Local Struggles?” You wake up, go out, and find the street quieter than usual, with the buzzing of horns missing. You may be happy at first but later realize that fewer cars are cruising, and those that remain are conserving fuel. Why? Because conflict in the Middle East, thousands of miles away, affects oil production and creates a gulf between the cost of oil and the world price. How does this affect you? Because India imports over 80 percent of its crude oil. The Middle East has been at the eye of the storm for decades, both because of its massive reserves of oil and the continued instability that spreads out, being the storm that disturbs economies worldwide. The slight adjustment in oil supply owing to regional unrest finds a ready translation into sky-high fuel prices that affect trade and everyday life in the case of India, which mainly depends on imported oil. Such conflicts have a strange knack for converting distant problems into concrete hard dilemmas in front of local markets and economies worldwide. The Historical Nexus As the sands of time whisper secrets of a tumultuous past, the history of Middle East tensions unfolds like a rich tapestry, intricately woven with threads of oil, power, and geopolitics. The history of the Middle East can be seen and understood in many ways, however, in this scenario, the focus will be the region’s oil, and oil politics, economics, and power balance – the resources that the area has and which the world needs.  The escalating oil prices reflect the world’s dependence on the Middle Eastern region. The period of 1973 will forever be marked in history due to the oil embargo that brought inflation and a huge surge in oil prices. From then on oil prices continue to be highly volatile to any geopolitical disorder that the Middle Eastern countries tend to experience frequently, and this has the knock-on effect of heightening the perplexity of the clientele that could be expected from the global oil markets. A severe storm characterized the decade following the Iranian revolution, but oil prices increased due to reduced output, and it took years for production to return to pre-revolutionary levels.  Midway through the 1980s when production was at its peak, it was also the peak of the war with the US and Iraq, making it nearly impossible to export. The Gulf War was arguably the turning point in the global oil market where the US once again had to interfere in the Middle East issue. With the commencement of the third geopolitical conflict in the region after a decade of relative peace, conflict further choked the region’s oil reserves and approached the point of no return. Gulf of Uncertainty Tensions in the Middle East have now become the epicentre of almost all global market activities, especially with the war between Israel and Iran and that of Russia over Ukraine only adding fuel to the fire, Furthermore, these events have raised oil prices to nine-week highs because this region contains about 30% of the world's oil supply and is now in turmoil. Safe-haven assets are increasing due to the ongoing geopolitical tensions. Since they started, gold has increased more than 8%. The US is further complicated by the Federal Reserve's unnecessary and inconsistent focus on interest rate increases in the past years, which has pushed bond yields higher and strengthened the dollar. Rising conflict leads to increased demand for gold reserves as a haven. Governments are implementing a strategy to increase their gold reserves to prevent further dispute damage. History repeats itself as alliances and rivalries in the Middle East create more problems than solutions. They are capable of influencing the economies downwards to recession. The implications of these geopolitical situations do not appeal to investors, anyway. From Crude to Chaos: The Economic Implications of Middle Eastern Turmoil Conflicts in oil-rich areas often spill over beyond borders, predominantly disturbing the delicate balance of the world economy. A shutdown of production or blocked oil routes resulted in dramatic surges in fuel prices. This triggers an unpleasant chain reaction: increasing transport prices, rise in inflation, and businesses dependent on reasonably priced fuel find it increasingly hard to maintain their pace. For example, India is among the countries with soaring high oil prices, carrying that cost spectrum in every possible area from food to manufacturing. For Example, Houthi uprisings in Yemen. The insurgency has always centered on critical oil infrastructure while creating chaos along critical shipping lanes. Striking aromatic and other oil tankers and facilities along the Red Sea have made shipping companies detour along less efficient routes thus significantly and severely ratcheting up the operational costs while crippling international trade severely; it is hardly a logistical problem; it has immense financial impacts because delays and costly transportation have been a cost for both businesses and consumers. Right at the receiving end of such instability are the Arab countries, especially Saudi Arabia, the UAE, and Egypt. Two of the world's largest oil-producing states, Saudi Arabia and the UAE, are extremely vulnerable to price volatility because it is highly likely to impact their revenues. Having taken note of this vulnerability, these states have also gone hard for diversifying their economies. For example, Vision 2030 attempts to de-oil the Saudi economy by focusing on tourism, technology, and renewable energy. At the same time, the UAE also features diversifications of focus areas rather than finance, trade, or innovation. Such burdened stability is, in Egypt, added over economic growth, while striking a balance between the relatively scarce imported oil and its quite ambitious infrastructure projects. While these efforts bring a glimmer of hope for a more resilient economic future, the road ahead is still intertwined, in part, with the ever-changing dynamics of the oil market. Financial Aftershocks With escalating tensions in the Middle East, the global financial markets are on a seesaw, with investors anxiously predicting the next swing. The US stock market has experienced significant fluctuations, with the Dow Jones Industrial Average experiencing significant changes. The Federal Reserve is closely monitoring these events and may reconsider interest rate appreciation. Stock markets in Asia have also found themselves under siege, with the Japanese Nikkei 225 and the Hong Kong Hang Seng indices suffering considerable losses. The Indian stock exchange, too, which relies heavily on foreign institutional investors (FIIs), has felt the heat, with the Sensex dipping more than 2% in a single day. The depreciation of the Indian rupee has led to increased import costs and further pressure on the current account deficit. British and German share indices have been under pressure too, with the Financial Times Stock Exchange(FTSE) 100 and Deutscher Aktien Index (DAX) across the channels both taking quite a tumble. Money authority for the eurozone, the European Central Bank has also been looking into the situation, and has suggested that there is no need to raise interest rates for some time now. The stock exchanges within the region have likewise felt the impact of the tensions in the Middle East. The Dubai Financial Market, which has seen far better days, recorded a drop of more than five per cent in a single day. Abu Dhabi Securities Exchange has also faced a significant pullback. The markets have a high level of foreign direct investment, and the prevailing conflicts have diminished investors' confidence. The local governments work to restore market order and attract foreign investors, yet the situation remains volatile.  In the darkness of geopolitical tensions, crude oil prices dance like dust in the storm, disturbing global economies with the heat of uncertainty, and nations brace for the tremors of conflict that ripple through their markets. In our interconnected world, distant conflicts affect our daily lives and routines. As we navigate this complex landscape of chaos and wars it is essential to grasp how these global events shape our experiences. Have you truly grasped the profound ways in which these distant struggles echo through the tapestry of our everyday existence, shaping our thoughts, choices, and the very fabric of our lives? Author: Aditya Kr. Sinha and Soham Illustration: Cheruvu Sai Kartikeya Sources International Energy Agency BBC

Our Mission The Finance and Investment Cell, Hansraj College is a voluntary group of students aiming to disseminate quintessential knowledge on finance, investment, and related aspects through the conduct of its activities throughout the year. About FIC Hansraj The Finance and Investment Cell, Hansraj College embarked upon its journey to promulgate financial literacy in the year 2014. Since then, we at FIC have been disseminating quintessential information on finance and related concepts. Be it organizing multifarious events or hosting regular speaker sessions with eminent personalities, the Cell has managed to build a significant presence for itself and has lived up to its reputation of being one of the finest societies in the Delhi University circuit. The Cell also curates and publishes its own set of financial articles regularly so that all segments of the public can reap the benefits. Taking into note the need for one roof for finance, we started with our own newsletter, a venture that was ideated and implemented in 2020 with the name “The Finance Gazette” garnering over 8500 subscriptions in a short period of time. Adding a feather to the cap, FIC is now the first society in Delhi University to have their newsletter published on the official college website. Several departments operate in tandem to ensure that the society provides ample opportunities to its members to upskill themselves in all aspects. With enthralling and diverse events like The Finance Platter, the Fellowship Programme for school students, and our flagship event Empresa, we leave no stone unturned to promise an engaging time for our members and the community. We have come a long way from where we started and we aim to scale new heights in times to come. The Finance and Investment Cell, Hansraj College is a voluntary group of students aiming to disseminate quintessential knowledge on finance, investment, and related aspects through the conduct of its activities throughout the year. Since its inception in 2014, the Cell has traversed a great path to grow in size, scope and shape so as to make it more engaging for its members and community. We’ve diversified ourselves from activities eponymous to the name by launching our very own in-house mentorship and consulting wing and social wing two years back. The Cell aims to spread financial literacy in a fun yet holistic way to the underserved community and regularly organises drives to fulfil this aim. From organising multifarious events to hosting regular speaker sessions with eminent personalities, the Cell has managed to build a reputation for itself. With a keen interest in finance and a vision to spread the knowledge to others, we at FIC, Hansraj, are dedicated to provide comprehensive learning of the world of finance to the world. Mission & Objectives Meet Our Team The Core Aryan Tiwari President Riya Sethi Vice President Vice President Ojas Arora Shradul Goel General Secretary Prateek Verma Abhijeet Kandel General Secretary Joint Secretary Palak Kalra Udit Mangal Kriti Garg Shreya Khandelwal Social Wing Technical Department Japneet Singh Cheruvu Sai Kartikeya Mentorship & Consulting Department Shubhayo Mitra Taran Gaur Mridul Gupta Neha Agarwal Anshul Sethi Alok Kumar Pandey Research & Development Department Parineeta Shaw Yug Bajaj Sanvi Khandelwal Department heads Organising & Sponsorship Department Brahmjot Singh Madhav Jay Harshit Jhunjhunwala Editorial & Marketing Department

Anchor 1 Organising & Sponsorship Department We at OS department are majorly focused towards generating funds and organising events for the society. We believe in building strong professional relationships with the clients by providing promising deals and entering into mutually beneficial collaborations. Collaborate with us about us The Organising and Sponsorship department works with outside entities to bring in sponsorship for FIC, Hansraj College and organizes all kinds of events for the society. The department primarily works towards generating funds to support all the activities of the society throughout the year. The work consists of converting clients into a mutual agreement over sharing deliverables. It also works harmoniously with clients to maintain a healthy working relationship. Right from generating funds for an event to its organisation and execution, everything is handled by the OS department. Our past Sponsors CONTACT US fichansraj.sponsor@gmail.com Text us on WhatsApp Our Team Brahmjot Singh Madhav Jay Harshit Jhunjhunwala Anchor 2

The Finance Gazette The December Edition of the “Hansraj Finance Gazette” delivers the readers with fresh takes on the financial news they need to start their day with. From its light tone to its broad finance and business scope, it occupies the same niche. It covers the months' most significant business and financial stories in quick and succinct summaries. A range of articles covering intriguing topics like Bitcoin, Blockchain, Microfinance, etc is included in the newsletter. Plus, it also includes a fun “Weird Wizard” section that ties together with “Did you know?”. What’s not to like? Volume 1 - December 2020 Download