Five post-graduate programme (PGP) students of the Indian Institute of Management, Ahmedabad (IIM-A) have set up a Private Equity (PE) and Venture Capital (VC) club to help students get hands-on experience by involving PE/VC players from India and abroad. Unlike finance clubs run by most B-schools in the country, this club exclusively focuses on PE and VC funding.
The lack of opportunities and experience in the PE and VC space led five students to set up the club called 'Leverage'. With around 50 students interested in being members, the club will be a forum for students interested in all aspects of private equity and venture capital.
"We came up with an initial skeletal structure of the PE club by looking at institutes like Harvard and others from the Ivy League. But the end product has been entirely our idea of how a PE club should be. Although we prefer to call it an interest group for the time being, we plan to run a full-fledged club with more activities soon," says Anirudh Singh, a member of the club.
"PE as an industry has boomed in India and we plan to invite speakers to the campus, hold conclaves, workshops and other events to provide a platform for the students and corporates to interact. Also, we are looking forward to hold intra-institute events, where the students can write an investment proposal and a panel of faculty members can judge them.
We have no restrictions when it comes to corporates as we would be involving both top- and middle-level players to encourage more and more activities in the field of PE and VC," says Gagandeep Singh, another member of the club.
As part of formalising the club, the students are holding the first intra-institute event called the 'Zen of Investing', where the club plans to invite alumni working in the area of private equity, besides involving the faculty and students for the activity.
The club also has plans to tie-up with Post-Graduate Programme in Management for Executives (PGPX) students to getter a better perspective of private equity. "The PGPX students would be able to share their experiences about private equity and with their support, we plan to involve ourselves with the corporates in a deeper way through various activities, including projects and case workshops," adds Anirudh Singh.
The club is in talks with a few corporates, who have shown interest in sponsoring the club.
"We are considering more options for funding besides the institute and the corporates we are in talks with. Currently, we are in the stage of gauging the responses from the people about the club," says Anirudh Singh, before adding, "Although we have started out PE and VC, we may consider branching out to other areas like micro finance later."
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Showing posts with label IIMS. Show all posts
Showing posts with label IIMS. Show all posts
Wednesday, July 30, 2008
Monday, May 5, 2008
Admissions at IIMs still provisional for OBCs
Creamy layer' causes confusion.
The long wait for candidates aspiring to enter the premier Indian Institutes of Management (IIMs) may have ended on May 1 with the institutes releasing the final admission list, but the admission process is far from over.
Such is the chaos caused by the ‘creamy layer' clause that some of the IIMs are looking at organising a fresh round of interviews to create a larger pool of Other Backward Classes (OBC) candidates from the non-creamy layer background.
While most of the IIMs had interviewed sufficient number of OBC candidates around February, the Supreme Court ruling about not including the ‘creamy layer' has meant that admission for OBC candidates is still ‘provisional'. OBC students who have made the cut to the final admission list will now have to produce a certificate confirming their OBC status by May 19.
The long wait for candidates aspiring to enter the premier Indian Institutes of Management (IIMs) may have ended on May 1 with the institutes releasing the final admission list, but the admission process is far from over.
Such is the chaos caused by the ‘creamy layer' clause that some of the IIMs are looking at organising a fresh round of interviews to create a larger pool of Other Backward Classes (OBC) candidates from the non-creamy layer background.
While most of the IIMs had interviewed sufficient number of OBC candidates around February, the Supreme Court ruling about not including the ‘creamy layer' has meant that admission for OBC candidates is still ‘provisional'. OBC students who have made the cut to the final admission list will now have to produce a certificate confirming their OBC status by May 19.
Wednesday, April 30, 2008
Loan terms get tougher for IIM aspirants
Collateral will have to be furnished to get loans to pay the increased fee.
With the Indian Institutes of Management (IIMs) hiking their fees, many general category students will have to approach banks for educational loans. Most will also have to furnish collateral to get that all-important loan.
IIM-Ahmedabad, for instance, has almost trebled its fees to Rs 4 lakh to Rs 11.5 lakh. IIM-Kolkata has hiked it from Rs 5 lakh to Rs 7.5 lakh. Others like IIM Bangalore and IIM Lucknow have hiked it from Rs 5 lakh to Rs 8 lakh and Rs 4 lakh to Rs 5 lakh respectively.
Add to that another Rs 3-4 lakh for laptops, books and others expenses, and the effective expense rises by another 30 per cent .Students, therefore, need to shell out anywhere between Rs 9-15 lakh for a two-year course.
Students, therefore, need to shell out anywhere between Rs 9-15 lakh for a two-year course and would start with a loan that they need to pay-off to free their collateral, which was not the case earlier.
Though banks would be quite willing to provide loans to students studying in these institutes, the requirement for securities will increase. Till now, the maximum loan offered for studies in India was Rs 10 lakh.
There is no paperwork required for the initial Rs 4 lakh. After that, there needs be a guarantor for a loan up to Rs 7.5 lakh. Above this, some collateral is required.
According to RBI guidelines, for loans up to Rs 4 lakh, the interest rate should not exceed the prime lending rate (PLR). Above Rs 4 lakh, the interest rate charged is PLR plus 1 per cent.
For instance, Indian Bank offers education loan schemes up to Rs 10 lakh for graduate, postgraduate and professional education in India. The current rate of interest is 12.50 per cent for loans up to Rs 4 lakh and 13 per cent for an amount above that.
Amit Roy (name changed), who recently passed out of IIM Lucknow, took an education loan of Rs 7.2 lakh. Today, he is paying Rs 14,000 a month as equated monthly instalments (EMIs), which is around 20 per cent of his take-home salary. And he will continue to do so for the next 7 years. "Most of my colleagues are paying instalments now," he admits.
Therefore, even the crème-de-la-crème of students would start their careers with a loan in their balance sheets. Imagine getting the first salary cheque with an equated monthly instalment (EMI) deduction. Not that this is a new phenomenon. IIM students have had to resort to educational loans for a while now.
Rajeev Mishra (name changed), who has completed a year in IIM-Kolkata, took a loan of Rs 7.5 lakh from the State Bank of India last year. Similarly, there are many others who have taken loans. All of them believe their salaries will more than make up for the amount borrowed.
Banks over the years have been gearing up to meet the demands of aspiring IIM and IIT students because the repayment ability is there.
With the Indian Institutes of Management (IIMs) hiking their fees, many general category students will have to approach banks for educational loans. Most will also have to furnish collateral to get that all-important loan.
IIM-Ahmedabad, for instance, has almost trebled its fees to Rs 4 lakh to Rs 11.5 lakh. IIM-Kolkata has hiked it from Rs 5 lakh to Rs 7.5 lakh. Others like IIM Bangalore and IIM Lucknow have hiked it from Rs 5 lakh to Rs 8 lakh and Rs 4 lakh to Rs 5 lakh respectively.
Add to that another Rs 3-4 lakh for laptops, books and others expenses, and the effective expense rises by another 30 per cent .Students, therefore, need to shell out anywhere between Rs 9-15 lakh for a two-year course.
Students, therefore, need to shell out anywhere between Rs 9-15 lakh for a two-year course and would start with a loan that they need to pay-off to free their collateral, which was not the case earlier.
Though banks would be quite willing to provide loans to students studying in these institutes, the requirement for securities will increase. Till now, the maximum loan offered for studies in India was Rs 10 lakh.
There is no paperwork required for the initial Rs 4 lakh. After that, there needs be a guarantor for a loan up to Rs 7.5 lakh. Above this, some collateral is required.
According to RBI guidelines, for loans up to Rs 4 lakh, the interest rate should not exceed the prime lending rate (PLR). Above Rs 4 lakh, the interest rate charged is PLR plus 1 per cent.
For instance, Indian Bank offers education loan schemes up to Rs 10 lakh for graduate, postgraduate and professional education in India. The current rate of interest is 12.50 per cent for loans up to Rs 4 lakh and 13 per cent for an amount above that.
Amit Roy (name changed), who recently passed out of IIM Lucknow, took an education loan of Rs 7.2 lakh. Today, he is paying Rs 14,000 a month as equated monthly instalments (EMIs), which is around 20 per cent of his take-home salary. And he will continue to do so for the next 7 years. "Most of my colleagues are paying instalments now," he admits.
Therefore, even the crème-de-la-crème of students would start their careers with a loan in their balance sheets. Imagine getting the first salary cheque with an equated monthly instalment (EMI) deduction. Not that this is a new phenomenon. IIM students have had to resort to educational loans for a while now.
Rajeev Mishra (name changed), who has completed a year in IIM-Kolkata, took a loan of Rs 7.5 lakh from the State Bank of India last year. Similarly, there are many others who have taken loans. All of them believe their salaries will more than make up for the amount borrowed.
Banks over the years have been gearing up to meet the demands of aspiring IIM and IIT students because the repayment ability is there.
Tuesday, April 29, 2008
IIM-A to implement quota in phased manner
The Board of Governors of the Indian Institute of Management, Ahmdedabad (IIM-A), today decided to implement 27 per cent Other Backward Classes (OBC) reservation in phases, over the next three years.
"Six per cent OBC reservation will come into force from this academic year. In the second year, it will be increased to 15 per cent and in the third year, the entire quota of 27 per cent will be implemented," IIM-A Director Sameer Barua said.
Meanwhile, in other reports the Common Admission Test (CAT) for the management courses is likely to go on-line from the next year.
"We were planning to make Common Admission test (CAT) on-line from 2008, but since we have only eight months left for the test, it might not be possible this year. But it will be on-line from 2009," IIM-A Director Sameer Barua said.
"Six per cent OBC reservation will come into force from this academic year. In the second year, it will be increased to 15 per cent and in the third year, the entire quota of 27 per cent will be implemented," IIM-A Director Sameer Barua said.
Meanwhile, in other reports the Common Admission Test (CAT) for the management courses is likely to go on-line from the next year.
"We were planning to make Common Admission test (CAT) on-line from 2008, but since we have only eight months left for the test, it might not be possible this year. But it will be on-line from 2009," IIM-A Director Sameer Barua said.
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