Juggernaut: A Publishing experiment


Jauggernaut App Launch

If you have ever loved reading, you would sense the thrill and joy of seeing a new book. I still salivate at the very thought of reading a book. No wonder a time came in my life when I was carrying more books than clothes, utensils, and other stuff combined together. And for a nomad like me, it started to make sense to switch to a technology which saves this regular effort of carrying books from one place to other. And hence a point came in my life when I switched to Kindle, and so far its been a wonderful companion. No more hassles when I shift my house or travel for unknown number of days. My books travel with me 🙂

But is Amazon Kindle a success because of its light-weight, or long battery life, or e-ink technology? Isn’t all this a part of technology which everyone can replicate? There has to be something more than just technology. And this fact becomes even more evident when you realize the fact that companies like Sony tried to come up with e-readers long before we saw Kindle, and even to this date there are so many companies which are trying their fate in this new era of digital content selling and distribution, like Rakuten’s Kobo or Barnes & Noble’s Nook, these all companies have not got the use acceptance they aspired for. And the reason for their lower acceptance rate vary from low range of books available in their bookstore, to the high price of their devices, to the poor partnerships by publishers to exclusively tie-up with them.

And while all this competition among eBook readers was on, we got a new creature to deal with – The SmartPhone, which claimed to replace all other screens in our lives. And to a great extent it has been really successful in replacing every other screen from our lives. So how did the digital publishing industry survive? Instead of fighting the SmartPhone screen, they got friendlier with them – they created Apps which could replicate the experience of their eBook reading experience on their devices, while keeping everything in the background same. Still the game didn’t change – Amazon still controls the largest share of the market for one simple reason – It has the largest content repository and is most accessible buying platform for the whole world.

So how can someone make a place for itself in such a market? I am sure someone must have asked this question while thinking of starting a Publishing company like Juggernaut. When I heard about this company I was immediately interested in learning what these guys are trying to do, and how. I learnt that this company has been started by Chiki Sarkar who has been associated with publishing industry. The company is headed by Durga Raghunath, who has been in Digital Media and Publishing for over a decade now. And to top it all, they have by now acquired a set of high profile people and writers to contribute to this project. I am sure there is something great cooking here 🙂

Their business model orbits around the core idea of making content readable on mobile devices and distributing it among the  contemporary youth and other readers whose tastes are fast changing.

In past many months I have been receiving a weekly newsletters from them which speaks a lot about the quality and variety they are trying to offer. I am indeed pleased that a modern day publishing company from India is trying its best to develop a great network of content creators,  distribution channel by leveraging technology, and aiming at audience who can easily afford this content. I am sure there is some great innings about to start with this publishing company’s App which is due for release on 23rd April 2016.

I am willing to see how quickly they can churn out engaging content and how soon they master the art of creating something for everyone. I am absolutely hopeful that these guys are on the verge of creating a history in Indian publishing.

Juggernaut, I am with you in this brave experiment you have taken up. Bring it on, I will excuse my Kindle for the sake of empowering this Indian experiment.

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Tracking Infibeam’s market run


Now, its been a week since Infibeam’s shares went live in Stock Market. And as a curious e-commerce enthusiast, I find it important to keep a close watch on this stock and determine what is the mood of the market w.r.t. e-commerce and consumer internet companies. Also, this analysis will focus on how the management of these companies keep the faith of their investors alive and kicking.

And with all this in my mind, I will attempt to take a weekly shot on this company’s performance.

Week 7: 15th – 20th May 2016

Infibeam-Week7

It looks like, for the first time the stock went below the 500 level (however for a short period), and then someone magically pushed the prices back to the 500 levels.

Overall journey looks like the one below.

Infibeam-Week7

I am still hesitant to forecast anything about this company, but what surprises me the fact that even now I have not seen or heard company’s any initiatives after it went live which could reinforce the belief of the investors. Worst of all, the company has decided to totally stay away from media and has chosen not to update even once so far.

Week 6: 9th – 13th May 2016

Infibeam Week 6

For the first time since the listing, the signs of systematic ruining of prices are appearing now. And if you look closely, there is a pattern which illustrates the investor sentiments.

And the overall picture, so far appears as below:

Infibeam Week 6

Probably it would be a bit early to say that the season for bullishness on this stock are over, however the early trends hint at the same.

Week 5: 2nd – 6th May 2016

Infibeam Week 5

This week the stock was pushed to a new 52 week high of 537, almost 24.3% higher from the listing price, which couldn’t sustain and saw a downwards free fall.

Infibeam Week 5

This is the overall journey, and only visible trend so far is that the stock is maintaining the pushed-up price until now.

Week 4: 25th April – 29th April 2016

Infibeam - week 4

This week Infibeam achieved its by the biggest jump ever since it got listed to touch 527.30 (almost 22% higher than the listing price). The journey so far is as presented in the chart below:

Infibeam - week 4 Some of the Analysts have proposed that the target of 784.38 in the moths to come. So let continue and watch the developments closely.

Week 2 & 3: 11th – 13th April, 18th – 22nd April 2016

Infibeam-till 22nd April 2016

These two combined weeks had a total of 7 trading sessions, instead of regular 10 sessions, and hence it made sense to report these two weeks developments together. In these 10 trading sessions, there is some surge which has happened and which needs some analysis.

Infibeam - 21st April 2016

On 12th April someone started inflating the prices in a schematic manner. These definitely can are not the regular individual investors who suddenly started to develop so much trust in the company’s fundamentals that they started playing in huge volumes. Definitely these volumes (as marked in the chart above) are majorly contributed by some of the institutional investors who have started putting-in the volumes in a planned and staged manner, as indicated in the volumes chart and its impact can be seen as spikes in the price chart. And hence what we see here is a manufactured price jump of almost 10% with high volatility in between the trading hours.

Infibeam-week3

 

Week 1: 4th – 8th April 2016

The below info graphics presents the daily price movement on NSE, starting from 4th April 2016.

Infibeam-Stock Market Debut

A few points worth a note are:

  • Infibeam made a debut on the  stock exchanges at a price of Rs 453/- , and by the 5th trading session it was trading at Rs 448/-. I don’t want to make any inference based on the price movements of just one week. And it will be unfair for this company to get any comments based on this small data set.
  • In this one week, there is something worth taking a note happened – Nomura Singapore reduced its stakes in Infibeam from 5.67% to 4% (by offloading its shares and making a quick buck riding on the bullish sentiments of those investors who joined the bandwagon after they had missed the IPO bus.

 

References:

  1. Google Finance’s Page on Infibeam
  2. Capital Mind’s article: Nomura Singapore reduces stakes in Infibeam