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<strong>About Indofil Industries Unlisted Share</strong> 1. Indofil Industries Limited (Indofil) offers solutions that help farmers across the world to improve productivity and yield to address the challenges of feeding a growing population. So, it is an agro-chemical and speciality chemical company. 2. It offers an integrated portfolio of patented and co-branded products along with formulations including fungicides, insecticides, herbicides and plant health and nutrition for a wide variety of crops. 3. Indofil is one of the few producers and suppliers of key speciality chemicals used by the plastic and coating industry in India.<!--more--> <strong>Manufacturing Capacities</strong> 1. Dahej Gujarat Plant (unit 1) - 33,600 Tonnes 2. Synthesis Plant, Dahej, SEZ, Gujarat (Unit-2) - 4000 Tonnes 3. Innovative Solutions Plant, Dahej, Gujarat (Unit-3) - 38000 Tonnes 4. EBDC Plant, Dahej, GIDC, Gujarat (Unit-3) - 35000 Tonnes <strong>Revenue Mix in FY202-21 (Geography)</strong> 1. India = 55% 2. Europe = 17% 3. South-America = 12% 4. Rest of the World = 20% <strong>Revenue Mix in FY20-21 (Products)</strong> 1. Agro-Chemicals = 88% 2. Innovative Solutions = 12% <strong>Financial Performance Review in FY20-21</strong> 1. Despite Covid-19 situation, total Income grew from 2,236 crore in FY 2019-20 to 2,441 crore in FY 2020-21, registering a phenomenal year-on-year growth rate of 9%. In the domestic and international business, revenue crossed 1,000 crore each. 2. EBITDA improved by 70% YoY from 274 crore in FY 2019-20 to 467 crore in FY 2020-21. During the year under review, the EBITDA margin stood at 19% against 12% in FY 2019-20. 3. Debt has been reduced to ~650 Crores from ~1000 Crores last year. So, significant debt reduction has been done by the company. 4. Current ratio is greater than 1.5x shows Indofil has strong liquidity position in short-term. 5. Indofil has excellent profitability ratio of 25% of ROCE. 6. In FY20-21, Indofil has generated a free cash flow of ~700 Crores. <strong>Valuation of Indofil Industries Unlisted Share</strong> CMP of Indofil Industries = 975 Total Outstanding Shares = 2.135 Mcap = ~2000 Crores Average EPS (3 years) = 50 P/E = 20x <strong>Peer Comparison</strong> 1. <strong>Dhanuka Agritech</strong> (FY20-21 Financials) (i) Revenue= 1387 Cr (ii) PAT= 211 Cr (iii) EPS= 44 (iv) P/E= 20x (v) MCap= 4000 Cr 2. <strong>Rallies India</strong> (FY20-21 Financials) (i) Revenue= 2400 Cr (ii) PAT= 229 Cr (iii) EPS= 12 (iv) P/E= 25 (v) MCap= 5400 Cr <strong>Future Outlook</strong> 1. Indofil has made significant investments in new product registrations in Europe and Brazil. It is expected to contribute towards business revenue from FY 2022-23. 2. Indofil is also looking at similar possibilities in Philippines and Bangladesh to strengthen the existing business there. 3. Indofil operates in both the B2B and B2C business segments and the international markets have witnessed a significant rise in individual consumers. It is finding opportunities to expand the B2C business model to international markets, but the uncertainty caused by the pandemic last year has delayed it. <a href="https://unlistedzone.com/storage/knowledge-logo/28th-annual-report-202021-50.pdf">Annual Report 2021</a>
<div class="gmail_default"> <strong>India's Craft beer major B9 Beverage raises $20 million</strong> Homegrown brewery player B9 Beverages has raised about $20 million in the pre-series D round, the founder of the company Ankur Jain confirmed to a media organization. According to the company's latest regulatory filing, it has received $4.8 million from more than a couple of dozen investors, who participated in the current round. In the latest funding round, Valiant Mauritius Partners FDI ltd invested Rs 6.2 crore for about 1.25 lakh compulsory convertible preference shares (CCPS). Along with other existing investors, Green Rush Holding, SKS Capital & Research and Pyramid City Projects also participated in the fundraising round. Founded in 2015, B9 Beverages, a craft beer company has its flagship brand Bira 91, which is a manufacturer of eight beer varieties. The company has four breweries in the country. The company's brand Bira 91 marks its presence in major cities like Delhi-NCR, Mumbai, Goa, Kolkata, Bengaluru, Pune, and Chandigarh. The company has its office in New York City, United States. United States' Sequoia Capital and Belgium's Sofina Capital-backed Bira91 have an employee strength of more than 600 headcounts. Prior to this, B9 Beverages raised $30 million from Kirin Holdings, This was the first-ever investment in India by Kirin Holdings, a top-notch Japan beverage player. It purchased a 10% stake in the company. Sequoia holds 45% of the startup, and founder Jain held a 30% stake. In the previous year, the company raised funds in two rounds. In the pre-Series C round, it raised $20 million and another Rs 11.5 crore in the Series C round. The company is looking to raise another $100 million in the Series D funding round. Bira 91 competes against the new age liquor makers like Beer Cafe, Whilte Owl Brewery, Salud, among others. Also, it faces stiff challenges from industry veterans like Kingfisher, Carlsberg, Heineken and more. Alcohol consumption and sales had plunged in the initial days of the lockdown, back in 2020. However, the liquor market is expected to rise at a rapid pace in the coming years. Several states opened up online delivery of alcohol given that retail liquor sales involved huge crowds and the possibility of covid-19 transmission. A report by Indian Council for Research on International Economic Relations (ICRIER) and PLR Chamber states that India is one of the world’s fastest-growing markets for alcoholic beverages. The estimated market size of the Indian market is $52.5 billion in 2020. India’s liquor market is anticipated to grow at 6.8% CAGR between 2020 and 2023. </div> <div> <div dir="ltr" data-smartmail="gmail_signature"> <div dir="ltr"></div> </div> </div>
Mumbai-based Nayara Energy has announced its annual results for the financial year 2020-21. However, the company was acquired by Russia's state-owned oil company Rosneft. Nayara Energy is an integrated downstream oil company of international scale encompassing the entire hydrocarbon value chain from refining to production and marketing, across segments, including retail. Nayara Energy, erstwhile known as Essar Oil, reported a steep fall of 82% in the consolidated profit after tax (PAT) to Rs 458.2 crore in the financial year 2020-21, as against a net profit of Rs 2,500 crore in the financial year 2019-20. Russia's Rosneft owns a 49.13% stake in the company. Geneva-based Trafigura Group, a Swiss multinational commodity trading company owns and Moscow's United Capital Partners owns the remaining 49.13% stake in the company. In October 2016, Rosneft and Russian investment fund United Capital Partners bought a majority stake in the company for a whopping $12.9 billion. They renamed the company to ‘Nayara’, coined from “Naya” (New) and “Era”, in May 2018. The company clocked a consolidated revenue of Rs 87,500.6 crore in the financial year ended on March 31, 2021, which was more than 12% lower than the revenue of Rs 99,868.3 crore generated in the year ended on March 31, 2020. It has Private Petrol Pumps, operates the second-largest refinery in Gujarat, India, and a 1000 megawatt power plant along with the Vadinar port and oil terminal. It reported an operating loss in the financial year ended on March 31, 2021. The loss before taxation stood at Rs 283.5 crore in the fiscal year 2021, with a profit (PBT) of Rs 977.7 crore in the fiscal year 2020. The company is aiming to increase the petrol pump network to 6,000 outlets in the Indian territory from the current 3,500. However, the company's total expenses declined about 10.4 percent during the period under review. It incurred total expenses of Rs 88,849.1 crore in the FY2021 as against expenses of Rs 99,117.8 crore in the FY2020. The diluted earnings per share (EPS) on the consolidated basis for the company grew sharply 82% to Rs 3.07 in FY21, as compared to Rs 16.61 in FY20. <strong>Standalone Performance of Nayara Energy</strong> Nayara Energy reported a sharp 81.4% plunge in the profit after tax (PAT) to Rs 466.5 crore in the financial year 2020-21 as against a net profit of Rs 2,518.3 crore in the previous financial year. The company's revenue from operations declined 12.4% to Rs 87,500.6 crore in the FY2021, which was Rs 99,968.3 crore in the FY2020. It reported an operating net loss of Rs 275.5 crore during the April 2020-March 2021 period, which was a profit before tax of Rs 1,450.1 crore in the same period a year ago. However, the total expenses declined more than 10% during the period under review to Rs 88,831.6 crore in the financial year ended on March 31, 2021, as compared to expenses of 99,098.9 crores in the year-ago period. The diluted earnings per share (EPS) of the company on a standalone basis tanked more than 80% to mere Rs 3.13 in the FY21 as against Rs 16.89 in the FY20. <strong>Key Take-aways:</strong> <strong>1.</strong> In their report to the shareholders of the company, the board of directors called the financial year 2020-21 'an unprecedented' one due to many factors, thanks to the Covid-19 pandemic, which altered lives in many ways. <strong>2.</strong> The pandemic accelerated large-scale changes. It led to grave uncertainty and challenges, despite which the company was able to deliver value to shareholders, excelling occasionally throughout the year. <strong>3.</strong> The company was able to control the degrowth in the topline. However, the bottom line of the company took a big hit, eroding more than four-fifth parts of the profits. <strong>4.</strong> On an Operational basis, the company reported a net loss of Rs 275.5 crore during the year as compared to an operating profit of Rs 1,450.1 crore. <strong>5.</strong> The EBITDA (Earning before cost, depreciation/amortization, Exceptional items, and Tax) declined about 42% to Rs 3,728.1 crore, which was Rs 6,404.4 crore in the previous year. <strong>6.</strong> Against all odds, the Company was able to maintain business performance, delivering desired outcomes with commitment, hard work, seamless coordination, timely communication and focus on execution. <strong>7.</strong> In the current outlook of the organization, the company is confident to deliver a strong performance in the future. <strong>8.</strong> Despite a difficult year for the market, Nayara Energy delivered positive net income due to its financial resilience, refinery productivity, and retail asset performance. <strong>9.</strong> As soon as Covid 19 started spreading, the company quickly set up a dedicated crisis management team and defined business continuity plans to follow. <strong>10.</strong> Its clear focus was to ensure the safety of its people, its assets are securely kept, and maintaining business continuity.
<div class="gmail_default"> <div class="gmail_default"> <div class="gmail_default"><strong>Digit Insurance</strong> Insurance is a very little penetrated financial service in India. Not only has life insurance not reached the last mile, but other segments like general insurance and health insurance services also have far less reach in the country.However, there is a startup that is trying to revolutionize the industry, making insurance a digital-first financial service for the users, just like other services like banking, broking, mutual funds and more.Here we are talking about Digit Insurance, a digital insurance platform intended to facilitate the process of seeking and approving insurances. It tracks individual suitability and matching criteria for seeking insurances and recommends insurance schemes based on health history and income.India isn’t the first country one might consider when thinking about insurance technology, but Digit Insurance, its first digital general cover provider, is making waves in the marketplace. It aims to make insurance simpler.<strong>History of the company</strong> Bengaluru headquartered Digit Insurance was kicked off its operations in 2016 by Kamesh Goyal. The insurtech player received regulatory approval from the Indian government's Insurance Regulatory and Development Authority (IRDA) in September 2017.Goyal acts as the founder and chairman of the company. Kamesh Goyal worked as the Head of Asset Management and Group Planning and Controlling at Allianz Insurance. He pursued B.A. LLB and also completed his master's in business administration from Delhi University.Goyal has been a pioneer in the financial services and insurance industry as he has held multiple c-suite position in the Bajaj Allianz, where he spent close to seven years. Bajaj Allianz is a joint venture between Germany's Allianz and India's financial conglomerate Bajaj Groups' Bajaj Finserv. Beginning his innings in 2001 as Chief Operating Officer, Goyal was elevated as the Chief Executive Officer of the company in just three years. He continued the stint till 2007. He was head of strategic planning for the entire Allianz Group. <strong>Customer Base and Settlement Ratio</strong> Digit insurance brags a customer base of more than two million headcounts, with a strong settlement rate of 94%. The rate might be a little less than a few players, but it's likely to move northwards in the coming years. It offers cover for travel, mobile phones, bikes, cars, and homes, with plans to expand into the health insurance market too. Of the 94% of claims settled in the initial months after gaining IRDA approval, 92% were for car insurance, 91% for two-wheel vehicles, 99.5% for domestic travel, 97% for mobile phones, and 93% for international travel. <strong>Business Model</strong> The platform has been established with the purpose of giving new products and services to disrupt the Indian general insurance sector. The company works in a simple manner. It is redefining the insurance industry by working digitally. Digit Insurance holds an insurance license that allows the company to sell insurance products. The company not only provides car and home insurance but also provides jewelry and mobile insurance as well. Sometimes there is a large buffet of insurance plans before the investors, which adds to the ambiguity on their platter. Thus, one should always understand his appetite while choosing the plan. Digit Insurance helps investors to solve this dilemma with customized insurance solutions. <strong>Revenue Model</strong> Digit Insurance earns revenue from the business's list of products and various plans as it enables their visibility on the platform and draws a wide number of users' attention and they tend to spend more time. This allows more offers to be placed over the numerous screens of the platform. Digit Insurance is trying to offer interesting products. Insurance revenue is generated from the premiums. The premium starts from Rs 786 for two-wheeler Insurance the company provides 80% of advance payment to the customer if the vehicle meets any damage or an accident. This Digit insurance is a good marketing buzz, getting customer engagement and driving valuations northwards. <strong>Funding Rounds</strong> Digit Insurance funding has seen a rise to unicorn status since 2021. This insurance company is recently valued at $3.5 billion. There had been no obstacles to the growth of unicorns. The year saw 11 new unicorns from the Indian startup ecosystem, cutting across segments such as fintech, edtech, consumer internet, and content, among others. So far, Digit insurance has raised a total of $442 million in funding in three funding rounds. The journey started in July 2018 when it raised $45 million from Fairfax Financial Holdings. Fairfax chairman, Prem Watsa, is an Indo-Canadian billionaire known widely as 'Warren Buffet of Canada' for his approach to investment, which sparks similarities with the famed US billionaire. In June 2019, the company raised $50 million again from Fairfax Financial Holdings, and in January 2020, A91 Partners, Faering Capital, TVS Capital Fund invested $84 million in the company. In February 2020, cricketer Virat Kohli and actor Anushka Sharma participated in external funding and invested Rs 2 crore and 50 lakhs respectively. Its recent fund came in July 2021 as it raised $200 million from Sequoia Capital India, IIFL Alternate Asset Managers, Faering Capital, and more. <strong>Growth</strong> Covid health insurance and fire insurance are the two major products of the company. These two products have helped the company drive growth. The company has expanded its business by 30% in terms of its premium collection. Due to the Covid-19 pandemic, the industry initially witnessed degrowth in a few segments, which was offset by the strong pent-up demand in the other segments of the company. Now, as the economic activities are coming back to normal the industry is seeing light at the end of the cave. As covid health insurance has helped businesses view growth while on the other hand vehicle insurance is lacking growth. <strong>Strong Partnerships and product range</strong> The key strategy of Digit Insurance involves creating beneficial partnerships with companies it can integrate with to provide insurance alongside products. It has done so with 1,500 companies including international e-commerce powerhouse Amazon and Flipkart, another e-commerce site operating within India, which helps him cover mobile handset insurance, since the purchase. The policies become active the moment a handset is delivered to the customer, and claims can be made with no deductible – the standard amount policyholders must pay before any costs are covered by their insurer. Digit Insurance also partners with a large number of car dealerships to sell its car insurance products, as well as with insurance agents and brokers that help extend the reach of its whole product suite. The company’s travel insurance can be bought direct, or through a partnership with ClearTrip, one of India’s largest online travel companies. It not only covers the loss of luggage but also flight delays. The company processes the delay instantly in most cases as the user simply needs to share the boarding pass and evidence. It also breaks the industry trend of offering coverage for delays reaching six hours, reducing this to an hour and fifteen minutes. This has been a breakthrough product for the company. </div> </div> </div>
<div class="gmail_default"> <div class="gmail_default"> The auto ancillary manufacturer, Ring Plus Aqua, a subsidiary of Textile major Raymond, has announced its results for the financial year 2020-21, which have been a mixed bag for the investors, thanks to the ongoing Covid-19 pandemic. </div> <div class="gmail_default">Ring Plus Aqua reported a 25 percent rise in the profit after tax (PAT) to Rs 22.52 crore in the financial year 2020-21, as against a net profit of Rs 17.98 crore in the financial year 2019-20.</div> <div class="gmail_default"> Incorporated in 1984, Ring Plus Aqua has its operation base in Nashik and corporate office in Mumbai. It has three manufacturing facilities located in various parts of Maharashtra.The company clocked a revenue of Rs 197.32 crore in the financial year ended on March 31, 2021, which was a little more than 5 percent lower than the revenue of Rs 208.23 crore generated in the year ended on March 31, 2020. The Company is engaged in the business of manufacturing and exporting Ring Gears, Flexplates, Water Pump Bearings, machined components, both for the auto and non-auto sector. Its operating profit increased about 12.65 percent between the two fiscal. It reported a profit before tax (PBT) of Rs 28.58 crore in the fiscal year 2021, which was Rs 25.37 crore in the fiscal year 2020. It is a key supplier of components in its product category and these products are going to remain key and a top priority going forward as well. The company has started pilot supplies of new products and increased its product portfolio. However, the company's total expenses declined about 5.5 percent during the period under review. It incurred total expenses of Rs 175.12 crore in the FY2021 as against expenses of Rs 185.37 crore in the FY2020. The diluted earnings per share (EPS) of the company jumped about 25 percent to 28.62 in FY21, compared to 22.88 in FY20. Ring Plus Aqua has a strong parentage Volkswagen, General Motors, Hyundai, Volvo, Tata Motors, Hona, Ford Motors, Maruti Suzuki, Fiat, BMW, Mazda, and Lombardini in the passenger vehicle segment. In the commercial vehicle segment, it has Mahindra and Mahindra, Volvo, Cummins, Either Motors, Navistar, and Ashok Leyland in its arsenal, whereas JCB, Escorts, CNH, John Deere, and Sonalika joins in the tractor segment. <strong>Key Take-aways:</strong> <strong>1.</strong> The Gross Revenue of the Company for the financial year 2020-21 stood at Rs 203.69 crore (which was Rs 210.74 crore in the previous year). During the year under review, your Company made a profit before tax of Rs 28.58 crore (which was Rs 25.37 crore in the previous year). <strong>2.</strong> The company board has not made any material change and commitment of the company, affecting the financial performance of the company during the financial year. However, the company has mentioned the impact of the Covid-19 pandemic separately. <strong>3.</strong> The company has a strong order book backed by domestic and export markets. The company already started ramping up its resources and gearing up to meet this demand. <strong>4.</strong> The second wave of infections of the Covid-19 pandemic brought in some severe challenges for the company. The covid-19 pandemic affected the timely availability of the resources and supply chain of the company, which ultimately impacted the productions. <strong>5.</strong> It implemented all the guidelines announced by the authorities and necessary precautions to safeguard the interest of the employees. Despite this, the company was able to garner robust sales in the last quarter of the financial year. <strong>6.</strong> Certain restrictions and lockdown in major states of the country are likely to impact the financial performance of the country in the June 2021 quarter. However, it expects a swift recovery in the demand once the restrictions are lifted. It is confident over its significant geographic and widespread customer base. <strong>7.</strong> In the wake of Coronavirus, the company board has decided not to announce any dividend for the financial year 2020-21. Despite the challenging business circumstances, the company has not transferred any amount to the reserves of the company. <strong>8.</strong> Covid-19 has impacted the top line of the company along with the normal life in India and across the world. The effect on discretionary expenditure has led to a sharp fall in demand for passenger and commercial vehicles. <strong>9.</strong> The company is expecting a strong rise in pent-up demand after the lockdown and a strong economic revival in the global economy. It expected a good monsoon to aid the agricultural demand in the second quarter. <strong>10.</strong> The company focussed on operational excellence, relentless cost reduction measures, lean manufacturing practices, and improvised supply chain management with tight control on working capital. These measures supported in mitigating the impact on the margins and cash flows and helped in delivering a higher margin of performance. </div> <div> <div dir="ltr" data-smartmail="gmail_signature"> <div dir="ltr"></div> </div> </div> </div>
<div class="gmail_default"> <strong>The second wave hit Mohan Meakin, YoY performance roar on the weaker base</strong> Breweries maker Mohan Meakin has announced its earnings for the quarter that ended on June 30, 2021, after the company board met and approved the unaudited results. The net profit of the old monk maker more than trebled in the June 2021 quarter, as against a net profit of Rs 1.33 crore in the same quarter the previous year. Mohan Meakin is India’s oldest alcohol company and has its roots in the time when India was ruled by Britishers. Edward Dyer established the Brewery at Kasauli in 1855. He was India’s brewing pioneer who brought – modern beer. The company reported a rise of 34.7 percent in the income from operation to Rs 140.59 crore during the April-June quarter of 2021, which was Rs 104.23 crore in the year-ago quarter. The Revenue from the Alcoholic segment increased about 35.6 percent to Rs 135.54 crore from Rs 99.93 crore, whereas the contribution of the nonalcoholic segment rose about 17 percent to Rs 5.05 crore from Rs 4.31 crore. In the alcoholic segment, the company produces products like Whiskey, Beer, Brandies, and Rum. Old Monk is its most famous rum. It produces juices, mineral waters, vinegar, and breakfast foods under its non-alcoholic umbrella. It also manufactures glass bottles, small extracts and exports alcoholic beverages like beer, rum, whisky, brandy, and gin in various nations of the world. Mohan Meakin 80% sales come from Old Monk, the favorite rum of Indians and the world's third-largest selling rum. It also sells beer under the brand Lion, Golden Eagle, and Black Night Brand. They account for an 8% share in the segment. It had reported a profit before tax (PBT) of Rs 1.8 crore in the first quarter of the previous fiscal, which rallied about 300 percent to Rs 7.16 crore in the first quarter of the ongoing fiscal. On a sequential basis, the income of the company halved and net profit declined about a quarter. It had reported a topline of Rs 305.8 crore and a bottom line of Rs 7.09 crore in the March 2021 quarter. The second wave of lethal coronavirus pandemic and nationwide restrictions impacted the economy during the June 2021 quarter. However, the company's business and operations continued as per the government guidelines. The total expenses of Moham Meakin jumped about 32.6 percent to Rs 137.07 crore in the Q1FY2022 as compared to the expense of Rs 103.41 crore in the Q1FY2021. The brewery player reported an EPS of Rs 6.29 per share in the given quarter against an EPS of Rs 1.57 in the same quarter the previous year. The EPS stood at Rs 8.33 per share in Q4FY2021. The face value of each share is Rs 5. </div>
<div class="gmail_default"><strong>How unlisted shares are traded?</strong></div> <div class="gmail_default"> Equity trading has grown leaps and bounces in recent times as retail investors have been rushing to the equity markets to fetch better returns. The craze of generating alpha, or the so-called supernormal returns has lured them to the pre-IPO or the unlisted market, where they are lapping up the unlisted securities, much prior to the IPOs of the companies. <strong>What are unlisted shares?</strong> An unlisted share is a financial instrument or a share, which is not traded in the formal exchange as the company does not meet the listing criterion. Trading of unlisted shares is done over the counter or OTC, which is done by select brokers or dealers. Unlisted securities are usually issued by smaller or new firms, which do not comply with the listing norms of the exchange. The trade-in of such securities is not very much frequent, thanks to the riskier and illiquid nature of the business. Unlisted markets are not regulated, however, are not illegal and the deals are completely valid. However, the nature of trade is completely different from those of the listed or the formal market. These shares are not registered on any exchange but are transferred through NSDL/CDSL This open market has a lot of potentials. Not just in India, there are various entities across the globe, which are involved and engaged in such transactions, which is adding to the popularity of the industry. Even shares of Facebook were widely traded in the unlisted market, before going public. <strong>Why are unlisted shares becoming hot these days?</strong> Unlisted shares of high-octane pre-IPO new-age companies are witnessing heavy interest among investors. Trading volumes and premiums have surged as the demand for shares of companies yet to list on bourses surges. Unlisted share markets have gained popularity over the years in recent history. Investors with sound wisdom, strong financial health, and long investment horizon buy stakes in growing companies, even before their IPO, and see the real magic of compounding. The high level of activities in the primary market and value picks at early stages have attracted a heavy number of investors in the pre-IPO markets. An ample number of gems, backed by top-notch parentage, are widely traded in the unlisted market. For example, HDFC Group's HDB Financial Services, Reliance Industries' Reliance Retail, multiple small finance banks, and various start-ups backed by prime players are gathering superior demand from the investors. <strong>New Regulatory changes to aid the unlisted market</strong> In a recent release from the Securities Exchange Board of India (SEBI), there are some big bang actions taken by the capital market regulator which are likely to be a booster for the industry. Headed by Chairman Ajay Tragi, the board decided to slash the lock-in period for the person, other than promoters (non-promoters) to six months from the date of allotment in the IPO market, instead of existing one year. Prior to this, the Pre-IPO equity or the securities purchased from unlisted market, were under the mandatory lock in of one year from the date of allotment, if the company decides to make a debut on the bourses. However, the shares can be sold in the informal market before the IPO. The period of holding of equity shares for Venture Capital Fund or Alternative Investment Fund (AIF) of category I or Category II or a Foreign Venture Capital Investor shall be reduced to 6 months from the date of their acquisition of such equity shares instead of existing 1 year. The change will likely boost the volume of the markets as the move will eliminate the risk of lock-in for a year and investors can make an early exit. Also, it will attract more investors to the market, who were skeptical over the lock-in period, which is now being halved. <strong>How to buy unlisted shares?</strong> Buying unlisted shares of a company has become very much easier for investors nowadays. However, the ticket size of investment is usually higher and the price of the share is decided by market demand, future outlook, and buzz of the company. Retail investors, like private equity funds and venture capitalists, can buy shares in the desired quantity. However, investors should always opt for reliable dealers or sellers in the unlisted market. To get the deal done, investors need to simply pay the amount to the trusted dealer from the bank account of the Demat account holder and the shares are transferred by the dealer. One can check the transferred shares in his depository partner account. Buying unlisted shares does not guarantee sure-shot prosperity to the investors. Investors would find more companies in the unlisted space as a wealth creator but that does not mean that you will find a gem all the time. One should not buy copper at the price of gold. Investors should understand that unlisted space requires patience, trust, and a longer time horizon as the company grows over into a successful venture if neutered properly. This market is not for traders or impatient buyers, who dream to become millionaires overnight. Additionally, finding the fair value of shares of unlisted companies is a big challenge, as just annual results and commentary from company management limit the information available for investors. Another big challenge for the industry is a huge mismatch between demand and supply. We can conclude that it is completely safe to buy unlisted shares if the investor has gone through the required process of unlisted shares that require a process of due diligence. Unlisted markets are riskier, but of course, more risk leads to more rewards. If you are willing to invest in the pre-IPO markets, it should be a small part of their portfolio. </div>
Manjushree Technopack Limited (MTL) is acquiring commercial operations and manufacturing facilities of Classy Kontainers as it is entering into a business transfer agreement with a latter one. The company announced the same on Monday. Manjushree Technopack is the largest rigid plastics packaging company in India, which is backed by private equity firm Advent International. Through the proposed acquisition, the company is trying to consolidate its position in the market. Manjushree Technopack will have access to all production units of Classy Kontainers. The facilities of the Classy Kontainers are located in the five cities and serves the clientele in various segments like paints, adhesive, speciality chemicals, FMCG and more. MTL has vast experience, spanning over four decades in the country. MTL caters to the packaging requirement of the FMCG, Food & Beverages, Homecare, personal care, agrochemical, pharmaceutical, and liquor industries. The company has a manufacturing capacity of 1.9 lakh million tonnes per year, with an annual turnover of Rs 1,200 crore. MTL is one of the top mid-sized plastic players in India. It exports to more than two dozen countries in the globe, having more than 100 machines for injection moulding with more than 300 patents. The company has manufacturing facilities in Baddi (Himachal Pradesh), Pantnagar (Uttrakhand), Guwahati (Assam), Noida (Uttar Pradesh), and Bidadi & Bommasandra, Bangalore (Karnataka). "The acquisition is in line with our aggressive, inorganic growth and business diversification plans," said Sanjay Kapote, MD & CEO of Manjushree Technopack. "It will allow us to consolidate our position as leaders in the rigid packaging sector and diversify our presence into new rigid packaging market segments - paints, adhesives, and specialty chemicals space." MTL’s technological strength, product range, and geographical spread, coupled with Classy Kontainers’ robust business will help us deliver complete packaging solutions to our customers in the future, he added. "Post-closing of the transaction, the promoters will continue to work with MTL to ensure a smooth transition and future business growth." Classy Kontainers is one of the largest custom-molded rigid packaging suppliers in India, which has expertise in HDPE & PP packaging. Class Kontainers has a production capacity of more than 12,000mt polymer processing. “Classy Kontainers is a pioneer when it comes to innovative solutions for rigid packaging in India with a passion for customer service," said Rajiv Mehta, partner at Classy Kontainers. With the strength of our team and MTL’s nationwide customer base in every segment we are confident this partnership will add tremendous value to our customers and help us take the business to the next level of growth, he added. Khaitan & Company was the legal advisor for the MTL, while Cyril Amarchand Mangaldas and Unaprime Investment Advisors acted as the legal counsel for Classy Kontainers. In the financial year 2019, the company clocked a revenue of Rs 1,154.39 crore, with an EBITDA of Rs 216.63 crore. It reported a net profit of Rs 498.57 crore in FY2019, whereas the EPS moved northwards to Rs 36.80.
<p><strong>NSE is all set to acquire NCDEX for a share swap ratio</strong> <strong>Highlights: <br /><br />What's in the deal</strong> <br /><br />1. The merger will mark the entry of NSE in the Agri commodity segment. <br /><br />2. Agri derivative trading has not been mainstream in India, but NSE is expected to make a change. <br /><br />3. SEBI wants NSE to merge with NCDEX before the much-awaited IPO of the equity bourse. <br /><br />4. NSE owns about a 15% stake in the NCDEX. The balance will be acquired at a value of Rs 900-1,000 crore. <br /><br />5. The deal may take shape by the end of this year. The largest derivatives exchange of the world, India's own National Stock Exchange (NSE), is at the ultimate stage of acquiring the National Commodity and Derivative Exchange (NCDEX). The acquisition is expected to happen at an enterprise value of Rs 900-1,000 crore. <br /><br />6. NSE was the original promoter and is the promoter of NCDEX and it still holds 15% in it as an anchor investor. According to some media reports, the acquisition is expected to be implemented in the next few months soon. There is a possibility of rejig in the top-level management. Market watchdog SEBI has given its nod to NCDEX to launch its IPO, which is expected to raise Rs 500 crore via its primary offering. However, if the deal between the two strikes, the IPO may take a back seat. Prior to this, NSE was trying to merge MCX with itself but the deal could not take shape, thanks to the multiple regulatory hurdles cited by SEBI. <br /><br /><strong>Struggling NCDEX</strong> <br /><br />NSE is the largest derivatives exchange in the world and is constantly scaling new highs in the equity trading business. On the contrary, NCDEX is struggling. NCDEX posted a consolidated net profit of Rs 8.46 crore in the previous year. In the commodity derivative segment, metal and bullion-centric Multi-commodity Exchange (MCX) has been elevated to almost a monopoly status, whereas agri-commodity focussed NCDEX is lagging behind. However, NCDEX reported an average daily turnover value of Rs 2,151 crore in July 2021, which is more than double from Rs 785 crore in the same month the previous year. If the deal is inked, NSE will once again compete with its arch-rival BSE in the Agri segment, which runs an e-Agricultural Market- a spotting platform for agricultural commodities. <br /><br /><strong>The Valuation Game</strong> <br /><br />The NCDEX and NSE merger is likely to push the latter's value higher, according to the market experts. State-run insurance behemoth LIC is the second-largest stakeholder in the NCDEX, owning an 11% stake. Other shareholders of NCDEX include National Bank for Agriculture and Rural Development (NABARD), Indian Farmers Fertilisers Cooperative Limited, Oman India Joint Investment Fund, Punjab National Bank, Canara Bank, Investcorp PE Fund I, Build India Capital, Shree Renuka Sugar, and Jaypee Capital. However, they are not likely to get cash from the deal. All the stakeholders are likely to be provided with a stake in NSE for their stake in NCDEX. The share swap ratio will be calculated after the due diligence. <br /><br />The total outstanding numbers of shares of NCDEX is more than 5.06 crore and NSE already holds more than 0.76 crore shares of the company. Thus, the company approximately has to acquire about 4.3 crore shares of the company. According to the market sources, the value of shares of NCDEX is about Rs 210-235 apiece. The success of the deal would estimate the true value of NSE, ahead of its much-awaited IPO. There is a strong belief within the SEBI that NSE has strong compliance with the regulations and has deep pockets to revive the agri-commodity sector in India. The current government is very much interested in the sector. <br /><br /><strong> <strong>About NCDEX</strong></strong> <br /><br />It offers 21 commodities to its more than 2.9 million clients to trade through its over 10,750 terminals, marking its presence in over a dozen states in the country. It has a storage capacity of 7.66 lakh MT. The company reported an income from operations of Rs 131.84 crore in the year ended on March 31, 2020, which is about 11.4% lower than the income of Rs 148.84 crore in the previous year. However, the net profit of the company eroded more than half to Rs 8.46 crore in FY 2019-20 from Rs 18.05 crore in FY 2018-19. The total expenses declined marginally to Rs 177.97 crore from Rs 180.3 crore. The profit before tax tanked 85 percent to Rs 2.4 crore as against Rs 16.1 crore during the period under review. Earning per share (EPS) of the company declined Rs 2.20 as against Rs 3.70 during the last year.</p>
<p><strong>Sterlite Power files DRHP for a Rs 1,250 crore IPO<br /><br /></strong> Business Tycoons and Mining magnate Anil Agarwal's Sterlite Power Transmission Limited (SPTL) is all set to raise funds from the primary markets via its initial stake sale. The power transmission firm has filed the draft red herring prospectus (DRHP) with the market regulator Securities and Exchange Board of India (Sebi) to raise up to Rs 1,250 crore. The initial primary offer (IPO) of the company will entirely consist of the issuance of fresh equity shares with a face value of Rs 2 each. There will be a reservation of shares for employees of the company, but more details on this are still awaited. The company, in consultation with issue managers, may raise Rs 220 crore via pre-IPO placement, which may subsequently reduce the issue size of the company. <br /><br />Anil Agarwal and Twin Star Overseas promoted Sterlite Power Transmission will be listed on both the major exchanges- BSE and NSE. The company has allocated 75% of the net issue for qualified institutional bidders (QIB), whereas 15% of the net issue is reserved for non-institutional investors. Retail bidders will get the remaining 10% of the issue. SPTL has appointed Axis Capital Limited, ICICI Securities Limited, and JM Financial Limited as the book running lead managers to the issue. KFin Technologies Private Limited is the registrar of the issue. <br /><br /><strong>Financial health</strong> <br /><br />The company reported a consolidated profit after tax (PAT) of Rs 870.12 crore in the financial year 2020-21, which was Rs 942.97 crore in the previous fiscal. In the financial year ended on March 31, 2021, the consolidated income from the operations of the company stood at Rs 2,092.39 crore in the June 2021 quarter, which was about one-third lower than the income of Rs 3,004.32 crore in the fiscal year 2019-20. It reported a consolidated income of Rs 3,550.06 crore in the financial year 2018-19, with a net loss of Rs 524.76 crore. <br /><br />However, the expenses of the company were reduced to Rs 2,657.76 crore in FY2021 from Rs 3,728.32 crore in FY2020. The expenses in FY2019 were Rs 4,087.73 crore. Sterlite Power manufactures power products, and is in the business of power transmission, and offers solutions for problems of the intersection of time-space, and capital. It is the second most prominent power transmission company of India after PowerGrid and is ahead of Adani Transmission and Essel Group in terms of market share. The Institute of Energy Economics and Financial Analysis (IEEFA), in a report released in February 2020, pegged Sterlite Power’s market share at 31.5 percent in terms of tariff. PowerGrid had a market share of 36 percent, and Adani Transmission less than 18 percent. Sterlite has approximately 13,500 circuit km of transmission lines.</p>
<div class="gmail_default"> <strong>How do I sell my unlisted shares?</strong> Unlisted shares might be lesser-known, but not a new asset class for the investors. However, an unlisted market is a marketplace for those companies, which are public but not listed on the stock exchange. Such companies have a limited number of shares as the free float among the investors. Startups and other private companies offer stocks as a part of their compensation for their employees due to limited cash flow. It gives the employee a right of ownership as he actually owns a part of a company in the form of equity shares. If a company is listed on a stock exchange, the buying and selling of shares become very easy. This marks a swift entry or exit at any counter. However, in the case of unlisted shares, companies are not bound to follow the norms and regulations of the Securities or Exchange Board of India or SEBI. However, such incorporated enterprises are registered with the Ministry of Corporate Affairs. Entry in such companies is tough and exit from such enterprises is even tougher if you do not know the right way or mechanism. Selling listed public stocks is very easy as you only have to place the order and the trade takes place. It simply matches your selling price at which there is a buyer on the exchange. However, in the case of private stocks or unlisted stocks, the selling mechanism is very much different. However, the process remains the same but the procedure differs. In the unlisted market, investor or the employees reach out to the brokers or the dealers active in the unlisted market. Selling unlisted stocks means selling a stake in a company that is not listed on the exchanges. It can be a tedious task to find a prospective buyer on your own. Sometimes employees are in dire need to liquidate their position to get cash and finding a buyer on an immediate basis is not a very easy job. Sometimes, to sell your personal stake in an unlisted company, stakeholders need approval from the company boards as well. The process might be very much complicated, involving a lot of paperwork and approvals. One such example is the National Stock Exchange (NSE) which is widely in demand. <strong>Selling stocks of IPO bound companies</strong> There are various companies, which trade in the unlisted market ahead of their IPOs. Buying and selling shares of such companies is relatively easy as investors will continue to hold these stocks even after listing. However, there is a mandatory lock-in period for the pre-IPO stocks. There is a vast market for such shares and many dealers are active in this space. What may appear to be a venture capital market to the masses can be a potential Pre-IPO private company stock exchange for potential sellers. Employees and investors can use these markets for selling their stocks. <strong>Selling stocks of non-IPO companies</strong> It is comparatively difficult to sell stocks that have no plans of launching an IPO in the near future. Such companies are less in numbers and are even lesser-known among investors. Furthermore, the float of equity in the open market is very limited as well. This adds to the anonymity quotient of the companies. However, these companies release their quarterly numbers and result once a year so that investors can understand the financial health of the companies. Such companies are for the investors who wish to join the growth stories of a company at an early stage and can invest a decent sum for the longer horizon. Such a theme is called growth investment. For such tasks, investors always require a reliable name as they do not wish to be a victim of online scams or 'phishy' activities, which leads to the transfer of shares, and money is not given by the so-called dealers. Also, another challenge for the investor is to crack the deal at the fair value in the unlisted market as there are few elements that may try to misuse your need for the money. <strong>The Process of Sale</strong> The process of selling unlisted shares is very much easy if you are able to find a genuine dealer. Get in touch with the concerned entity or its spokesperson. An Investor will need to share your details with proofs including DMAT account, Client Master Report (CMR). The investor needs to transfer the unlisted share which he/she wants to sell with the quantities to the buyers or broker's DEMAT account. The same day when the dealer receives the unlisted shares in his DEMAT Account, the payment is done by the latter via the preferred mode of transfer. <strong>What is a Client Master Report (CMR)?</strong> Client Master Report (CMR) copy is a paramount document, required to buy unlisted and Pre IPO shares. CMR contains Depository Participant Identity (DP ID), Client ID, PAN number, Bank Account Number, along with more details. This can be easily obtained by sending an email to the broker and the same is delivered within a few hours. The dealer will require a PAN Card, Aadhar Card, and a copy of DIS Slip, which is used to transfer shares into the account. </div> <div class="gmail_default"></div> <div class="gmail_default"><strong>How to transfer unlisted or Pre-IPO shares </strong>It is possible to transfer shares from one Demat account to another using a simple procedure. Trading through a Demat account is just like making transactions through a bank account. The only difference is that you transfer shares through the Demat account instead of money.</div> <div class="gmail_default"> <strong>Offline procedure</strong> With respect to shares held with NSDL or CDSL depositories, the offline procedure for transfer of shares through off-market transfer is possible. One needs to fill out a DIS (Delivery Instruction Slip). ISIN number of the shares to be transferred, name of the company (security), Demat account, and DP ID of the account to which the shares are being transferred must be filled up in the form. The form needs to be submitted to the old broker’s office for further processing. <strong>Online procedure </strong>If shares are held with CDSL, there is an online facility for the transfer of shares using the ‘EASIEST’ platform. One needs to register on this platform using the link, <a href="https://web.cdslindia.com/myeasi/Home/Login" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://web.cdslindia.com/myeasi/Home/Login&source=gmail&ust=1629172696008000&usg=AFQjCNE0kTvjjbPj6AJLv-6brFmjLP4rqQ">https://web.cdslindia.com/<wbr />myeasi/Home/Login</a>, and follow the below procedure. <strong>Please Note</strong> : One can only transfers shares from CDSL Easiest to trusted demat account. So, before initiating the share transfer from CDSL easiest, please add the trusted demat account. <strong>How to Add trusted demat account?</strong> 1. Login on the CDSL account (<a href="https://web.cdslindia.com/myeasi/Home/Login">https://web.cdslindia.com/myeasi/Home/Login</a>) . 2. Go to "<strong>Miscellaneous</strong>" and Under that, click " <strong>Edit Trusted Account</strong>". 3. Enter the Demat ID of 16 numbers to whom you want to transfer shares. 4. An OTP will come on your mobile number to verify it. 5. The account will be approved by broker within 24 hrs and then you can transfer shares. <strong>How to transfer shares via CDSL Easiest?</strong> 1. Login on the CDSL account (<a href="https://web.cdslindia.com/myeasi/Home/Login">https://web.cdslindia.com/myeasi/Home/Login</a>) 2. Go to "<strong>Transaction Tab</strong>" and click "<strong>Setup</strong>". 3. Click "<strong>Bulk Setup</strong>" after that. 4. Select '<strong>Transaction</strong>' and enter the execution date and enter the Beneficiary owner ID(BOID), you need to transfer the shares to. In that page select ISIN. When you click on Account ISINs, you will see a list of all the ISINs in your holdings. Select the ISIN and enter the quantity and select the reason for trade from a list given. 5. Once you complete the above process, a verification will come. Verify it. Once you do that, a page will open, in that <em><strong>you needn't fill the Exchange ID, Counter Party Exchange ID, Market Type, Counter Party Market Type, Settlement ID and Counter Settlement ID for off-market transactions.</strong></em> 6. Finally click on "Commit" and type the 8 digit CDSL PIN which you have received on your email id when you have registered for CDSL Easiest. 7. The request will go the broker and he will verify it and transfer will be done. <strong>How to transfer shares via Angel Broking Online Facility?</strong> 1. Login to <strong><a href="https://trade.angelbroking.com/">https://trade.angelbroking.com/</a> 2. </strong>Go to <strong>"More" and </strong>Select<strong> " Online-DIS". 3. </strong>Select "<strong>Off-Market" </strong>and select whether you want to<strong> transfer in NSDL account or CDSL Account. 4. Enter target DP ID , Client ID, Reason of transfer, and select the scrip you want to transfer along with quantity. 5. After that you will be taken to CDSL website to enter TPIN (alternate to POA). </strong>If you don't have TPIN you can generate from the following link. <a href="https://edis.cdslindia.com/home/generatepin">https://edis.cdslindia.com/home/generatepin</a> <strong>6</strong>. Enter TPIN and the request will go to broker for transferring of shares. <strong>Charges for transferring shares via CDSL Easiest:</strong> 1. Rs.25 or 0.03% whichever is higher is the DP charges. 2. If the reason of transferring of shares is not gift or self transfer, then stamp duty of Rs.15 on 1 lac value transaction need to pay to CDSL. Calculator for Stamp duty - <a href="https://ww1.cdslindia.com/StampDuty/Cal_StampDuty.aspx">https://ww1.cdslindia.com/StampDuty/Cal_StampDuty.aspx</a> How to Pay Stamp duty - <a href="https://www.cdslindia.com/Downloads/Publications/Newsletter/2020/July%202020%20e-infoline.pdf">https://www.cdslindia.com/Downloads/Publications/Newsletter/2020/July%202020%20e-infoline.pdf</a> </div> <strong>Check out our video to understand more about transferring unlisted shares via CDSL.</strong> https://www.youtube.com/watch?v=isz0uKTRQSY
The Ramaraju Surgical Cotton Mills Limited (TRSCML) announced its earnings for June 2021 quarter. The company returned to the black, reporting a net profit of Rs 12 crore in the quarter ended on June 30, 2021, as against a net loss of Rs 5.79 crore in the year-ago quarter. The Rajapalayam (TamilNadu) based company had reported a rise of more than 130% in the revenue from operations toRs 84.33 crores in the first quarter of ongoing fiscal, whereas it had reported a total operating income of Rs 36.36 crore in the same quarter previous year. Ramaraju Surgical Cotton Mills is a part of Ramco Group of companies, which is engaged in other businesses like yarns, cement, roofing, and other building products. The company is the largest producer of absorbent cotton, gauze, bandages, and other wound-care products in Southern India and is included among the top players of the country. It has a monthly production capacity of over 125 tonnes of medical-grade bleached cotton and over 1.5 million square meters of bandages and gauze products. However, the net profit tanked about two-third or 64% from Rs 33.44 crore on a sequential basis and the operational income declined 15% from Rs 98.69 crore, against the previous quarter ended on March 31, 2021. The diluted Earning per share (EPS) of the antiseptic dressings manufacturer turned positive in the Q1FY2022 to Rs 30, which was Rs 15 below zero in the Q1FY2021. The EPS stood at Rs 85 in the Q4FY2021. The company witnessed a jump of 60% in the total expenses to Rs 70.56 crore in the April-June period on a year-on-year (YoY) basis from Rs 43.9 crore. On the contrary, the expenses declined on a quarter-on-quarter (QoQ) from Rs 94.39 crore. Incorporated in 1939, the company procures the raw material, that is the cotton, from the local farmers. The company is aiming to transform the region into an industrial society from an agrarian one. The company has reported an operating income of Rs 284.24 crore and 32.81 crores in the financial year 2020-21. The EPS during the previous financial year stood at Rs 83. The company has diversified its footsteps into spinning and weaving, which produces some of the world's finest cotton yarn. This is used to manufacture premium fabrics for shirtings, bed linen, and Jacquard cloth. The Metropolitan Stock Exchange of India (MSEI) listed entity brags more than 200 unique products in its portfolio, thanks to its workforce of more than 2,200 employees, toiling at its various facilities. The company has surgical facilities in Rajapalayam and Perumalpatti, whereas spinning units are located in Rajapalaiyam, Silvassa, Subramaniapuram, and Thirumalagiri. In FY 2019-20, the company derived about 41% (Rs 136 crore) from the textile segment, whereas the fabric segment contributed 46% (Rs 153 crore). Surgical and Windmills contributed 11% and 2% in the income, respectively. <a href="https://unlistedzone.com/storage/knowledge-logo/Intimation-of-Unaudited-Standalone-and-Consolidated-Financial-Results-for-the-Quarter-ended-30th-June-2021.pdf">Q1FY22Results</a>
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