In order to develop an avenue for Crowd funding,
Ujvala Consultants proposes an innovative system that uses the PURP
points as a unit of investment with short term liquidity with long
term growth potential. However, it may be noted that the system is
designed to share the prospects with the User community and not by
pure investors who have no desire to use the facility.
For this purpose, the Reward Points under the
PURP shall be considered transferable. Any holder can give a notice
to ODR Global to register such a transfer and the beneficiary
will be allowed to use the credit for his use. Appropriate procedure
for this will be notified on the website. This process enables the
holder to encash the coupons by transferring them to those who want
to use the service at a price that leaves both the buyer and the
seller of PURP at an advantage. This would assume relevance when
there could be capacity issues in scheduling urgent meetings as well
as the price benefits that may accrue.
The exchange would be facilitated on the website
itself so that service users would be given an opportunity to buy
outstanding coupons at a discount from other holders instead of
buying the service at the published rate.
As a result of these proposals, any investor who
invests in PURP would provide funds to the project securing himself
with the possibility of encashing the investment by trading the PURP
Example: If A invests Rs 10000/- in
PURP, he will be entitled to use Arbitration/Mediation platform
for a value of Rs 10000/- upto a period of 1 year from the due
date of the coupon. The accumulated PURP credit which could vary
between 25% to 125%, depending on the period of the coupon, will be
tradable and the beneficiary can use it within a period of 1
year from due date. If the PURP points are traded at par, the
first PURP buyer would get a full refund if it is a 3 year
coupon and lesser for shorter periods. This will be in addition
to his own use up to the value of PURP.
48 month option has been provided for such of
those buyers who may not be able to use the facility at all so
that they may get a marginal return for the funds invested
though their right to use the services is retained between the
48 and 60 month period.
Ujvala Consultants Pvt Ltd is also considering a
proposal to hive off ODR Global into a separate Company and
issue equity stake or offer equity stakes of Ujvala itself to the
investors who invest in ODR Global. If the proposal is finalized and implemented, it
is proposed that any outstanding value of Prepaid Coupons be offered
for optional conversion into equity.
The rate of such conversion and the maximum limit
upto which conversion options would be allowed, will be decided on
the basis of appropriate valuation from time to time. Until further
notice, it is proposed that the conversion of prepaid coupons to
equity stake could be at the rate of Rs 2.5 lakhs=1%. of ODR Global
or 0.5% of Ujvala. The maximum
convertible limit at present is pegged to 10%. If there is any
change in the rate of exchange, it will be applicable to all
outstanding coupons after a waiting period of 3 months.
The optional equity conversion proposal is
provided here with the specific disclaimer that this is only a
tentative proposal under consideration and there is no specific
action taken in this direction at present.
The information is provided here for the purpose
of transparency and also to keep on record the Intellectual Property
related to an innovative system of
crowd funding that this system represents.