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By:

Shoumojit Banerjee

27 August 2024 at 9:57:52 am

Classroom of Courage

In drought-scarred Maharashtra, a couple’s experiment in democratic schooling is turning child beggars into model citizens In the parched stretches of Maharashtra, from Solapur to the drought-hit villages of Marathwada, a modest social experiment has quietly unfolded for nearly two decades. It is neither a grand government scheme nor a corporate-backed charity. Since 2007, the Ajit Foundation, founded by Mahesh and Vinaya Nimbalkar, has worked with children living at the sharpest edges of...

Classroom of Courage

In drought-scarred Maharashtra, a couple’s experiment in democratic schooling is turning child beggars into model citizens In the parched stretches of Maharashtra, from Solapur to the drought-hit villages of Marathwada, a modest social experiment has quietly unfolded for nearly two decades. It is neither a grand government scheme nor a corporate-backed charity. Since 2007, the Ajit Foundation, founded by Mahesh and Vinaya Nimbalkar, has worked with children living at the sharpest edges of society in Maharashtra. The foundation has become a home for out-of-school children, those who have never enrolled, the children of migrant labourers and single parents, and those who scavenge at garbage dumps or drift between odd jobs. To call their foundation an “NGO” is to miss the point. Vinaya Nimbalkar describes it as a “democratic laboratory”, where education is not merely instruction but an initiation into citizenship. The couple were once government schoolteachers with the Solapur Zilla Parishad, leading stable lives. Yet what they witnessed unsettled them: children who had never held a pencil, begging at traffic signals or sorting refuse for a living. Prompted by this reality, the Nimbalkars resigned their jobs to work full-time for the education of such children. Leap of Faith They began modestly, teaching children in migrant settlements in Solapur and using their own salaries to pay small honorariums to activists. Funds soon ran dry, and volunteers drifted away. Forced out of their home because of their commitment to the cause, they started a one-room school where Vinaya, Mahesh, their infant son Srijan and forty children aged six to fourteen lived together as an unlikely family. The experiment later moved to Barshi in the Solapur district with support from Anandvan. Rural hardship, financial uncertainty and the pandemic repeatedly tested their resolve. At one stage, they assumed educational guardianship of nearly 200 children from families that survived by collecting scrap on the village outskirts. Eventually, the foundation relocated to Talegaon Dabhade near Pune, where it now runs a residential hostel. Twenty-five children currently live and study there. The numbers may seem modest, but the ambition is not. Democracy in Practice What distinguishes the Ajit Foundation is not only who it serves but also how it operates. Within its walls, democracy is practised through a Children’s Gram Panchayat and a miniature Municipal Council elected by the children themselves. Young candidates canvass, hold meetings and present their budgets. Children maintain accounts and share decisions about chores, activities and certain disciplinary matters. In a country where democratic culture is often reduced to voting, the foundation’s approach is quietly radical. It treats children from marginalised backgrounds as citizens in formation. The right to choose — whether to focus on sport, cooking, mathematics or cultural activities — is respected. “We try never to take away what is their own,” says Vinaya Nimbalkar. Rather than forcing every child into a uniform academic mould, individual abilities are encouraged. A boy skilled in daily calculations may not be pushed into hours of bookish study; a girl who excels in cooking may lead the kitchen team. For children who have known only precarity, standing for election, managing a budget or speaking at a meeting can be transformative. On International Women’s Day, the foundation seeks visibility not just for praise but for partnership. If you are inspired by their mission, consider supporting or collaborating—your involvement can help extend opportunities to more children in need.

IPO Investment Strategy

Updated: Nov 12, 2024

IPO Investment Strategy

Investors have amassed significant wealth through investing in Initial Public Offerings (IPOs) in India. In 2024, 70 IPOs were launched, with 56 of them delivering positive gains on their initial listing. Among these, Vibhor Steel Tubes, which began accepting subscriptions in February 2024, achieved the highest listing gain at 195 per cent. BLS E-services and Bajaj Housing Finance were the next two IPOs to see substantial gains, with returns of 171 per cent and 135 per cent, respectively. Investors can approach IPOs from two angles: focusing on listing gains or on long-term investment. Let's explore the key factors that contribute to a successful IPO investment strategy.


For Listing Gains

1. Consider the size of the issue. Small IPOs with issues below 2000 crores tend to offer better listing gains.


2. Monitor the Grey Market Premium (GMP). GMP should consistently exceed 30% before the IPO.


3. GMP should either remain stable or increase, and it should not decrease leading up to the IPO's closing date.


4. Even if the goal is to focus on listing gains, it's important to review the company's financials. Financial indicators such as profit growth, Return on Equity, and Price to Earnings ratio are crucial to avoid investing in low-quality IPOs.


5. If the company shows long-term growth potential, it's advisable to hold off on selling shares.


For Long-Term Investment

1. Established companies like LIC, Zomato, Ola Electric, and Hyundai Motors have not met market expectations, often due to the size of their initial offerings. If the issue size exceeds $20 million, it's advisable to consider investing for long-term gains rather than just listing gains.


2. The valuation of the company is critical for long-term wealth creation through IPOs. The company should be profitable, and its price to earnings ratio should be below 25.


3. Occasionally, companies like Zomato, Swiggy, and Ola, which are currently unprofitable, but they have a potential for significant future growth. In such cases, it's important to be mentally prepared for a multi-year period of time correction. It's possible that returns may not be realized until the company becomes profitable.


4. Shares in this category are susceptible to significant price drops, potentially by 50 per cent to 70 per cent from their initial offering price. However, it's beneficial to buy these shares during these price drops. For instance, Zomato, listed at 116 rupees in July 2021, fell to 41 rupees by July 2022. Following this decline, the stock began to rise, currently trading at 248 rupees.


5. If a company is fundamentally strong but its valuation is high, it may consolidate over several years, requiring patience. An example is CDSL, which was listed in 2017, didn't deliver any returns for the next three years. However, from 2020 to 2024, the stock appreciated by over 10 times.


(The author has spoken to experts in the field for writing this piece.)

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