Right place at the right time.

Aug 25, 2023 12:46 am

Good morning my dear readers,

I literally have no idea where the week went. Just zoomed on by. Maybe a Bull Market effect? =)


Right Place at the Right Time.

I am now more convinced than ever that it is going to be India's Golden decade ahead.

History is being created with our Space Program (Congratulations by the way).


A closely followed space program is a sign of animal spirits and optimism in a growing nation.


Its not just the space program, I am particularly impressed with the impact the SME stock exchange is having of India's economy.

For the first time, small companies are coming out of their shells.

Earlier, these small companies were told that an IPO is not their 'Cup of Tea'.

A company with 50-100cr of revenue had no chance of doing a successful IPO. Founder was told to get to 400-500cr revenue and then come for IPO.

How in the world would a small company get from 50cr to 500cr without access to equity funding?

(It would take them decades to slowly expand with internal accruals and expensive debt).


But not any more..

Now, the SME exchange is enabling the Backbone of the Indian economy, the SMEs to raise equity at pretty reasonable valuations.

And this is a game changer for the Indian economy..

The amount of equity funding flowing into the SME sector is a total BOON for the economy. It is leading to a lot of small but new private sector capex.

The SMEs are also responsible for millions of jobs too.

So, if the SME exchange continues being successful the way it is right now, it bodes very well for the India story.

The circulation of money into SMEs and eventually into Capex and Jobs has a spectacular effect.



Disclaimer: I am NOT AT ALL saying to you to invest in the SME exchange, far from it.

As investors, we need to maintain calm, be conservative and calibrated in our risk management. Invest in good companies and adhere to value investing principles.

My point is that there is an air of something special in India currently. The Space Program and the SME exchange are merely just two examples.

There are many more factors..

It just feels to me as if something is great is about to happen.

The US used to have similar excitement and nationalistic spirit around its exciting space program in the late 1960s and beyond.

(And if History has any say, I would say that its India' Stars have aligned).


Think about the potential, from a point of Wealth & Asset Management too...

FDs being fully taxable vs Gsec ... Now gsecs give 200bps approx higher than FDs and probably are safer too. And regular investors can easily buy T Bills/Gsec now.

Why do people still invest in FDs so aggressively?

It is lack of awareness.

All this is the future potential of India. A lot more incremental money will keep flowing into financials markets over the next many years.


Basically, across the board, I feel there significant opportunity for entrepreneurs and also for investors to tag along.

Jai Hind.


That is all from me today my friends.

Have a great weekend ahead.

As always, SIP into your Coffee and also your Portfolio regularly.

We are in the Right Place at the Right Time, and the best part is that, its happening silently. Not many are aware of their good luck.

(Thank our Stars).

My Best,

Neil Bahal


Negen Capital

Ps - I am too sleepy, forgive the grammatical errors. =)

Love you all.