Mumbai Prospectus

Written by HW

Thursday, 17 April 2008

Prospectus for Initial Public Offer

Name of the stock: Mumbai

IPO price: T20 Rs. 560

Number of shares relesed: 5,00,000

General Introduction

The Mumbai Indians team has, quite surprisingly, emerged as the second underdog in the fray. This is once again, on account of a greater dependence on untested local talent (read Other areas of venture) than on proven international names.

While an against-the-odds performance cannot be ruled out entirely, an exceptional rise in stock value will depend to a fair extent on Loots Bosman and Robin Uthappa, whose recent exploits suggest they are ready to raise their game above their current value.

The other big trump card is Sachin Tendulkar, who hasn’t played Twenty20 cricket before but with proven expertise, is bound to bring some value to the table.

Net Worth Analysis

The net worth of the stock is based on the cumulative performance ratings of the players in the team who have prior T20 international experience. Hence this more or less depicts the true expected net inflow from the player performances.

Batsmen	R.P

Loots Bosman	102.22
Sanath Jayasuriya	305.67
Ashwell Prince	4.17
Robin Uthappa	79.26

Bowlers

Dilhara Fernando	75.14
Harbhajan Singh	69.90
Lasith Malinga	72.40
Shaun Pollock	73.13
Total Net Worth	781.89

Further the net worth is discounted @ 30% to use a conservative estimate of the value, since the values represent average performances and not worst-case-scenarios, and so as to also to keep a buffer for shareholders’ gains.

Therefore the IPO value is staged @ 70% of the total net worth.

Other areas of venture

Since the above net worth analysis only covers players with T20 experience, the other players without any international experience form the TRUE ASSETS for the stock as their performance will only go to add further value to the team’s stock value at the time of redemption of shares.

Following is the list of players who are as yet untested

Sachin Tendulkar (c)

Ankeet Chavan

Siddharth Chitnis

Gaurav Dhiman

Musavir Khote

Dhawal Kulkarni

Abhishek Nayar

Ashish Nehra

Manish Pandey

Rajesh Pawar

Ajinkya Rahane

Rohan Raje