Analysis, guides and explainers on India's unlisted market — from IPO pipelines to ESOP liquidity.
Below is the history of the right issues, and private placements are done in the last few years in Hero-Fin Corp unlisted share. <!--more--> <span style="font-size: 14pt; font-family: georgia, palatino, serif;"><strong><u>FY15-16</u></strong> </span> <span style="font-family: georgia, palatino, serif;">The company has issued 3,39,37,500 equity shares @ 120 each on right issue.</span> <span style="font-family: georgia, palatino, serif;"><strong>Book Value</strong> = 120.</span> <span style="font-family: georgia, palatino, serif;">So this deal happened at <strong><u>P/B multiple of 1x</u></strong>.</span> <span style="font-family: georgia, palatino, serif;"><strong><u><span style="font-size: 14pt;">FY16-17</span> </u></strong></span> <span style="font-family: georgia, palatino, serif;">During the year, the Company has issued 1,34,92,216 equity shares @ Rs. 520.30 each on preferential allotment to Otter Limited and Credit Suisse ( Singapore) Limited.</span> <span style="font-family: georgia, palatino, serif;"><strong>Book Value</strong> = 121.</span> <span style="font-family: georgia, palatino, serif;">So this deal happened at <strong><u>P/B multiple of 2.42x</u></strong>.</span> <span style="font-size: 14pt; font-family: georgia, palatino, serif;"><strong><u>FY17-18</u></strong></span> <span style="font-family: georgia, palatino, serif;">During the year under review, the Company grants 11,29,805 options at an exercise price of <strong>INR 495 per share</strong> to the certain employees of the Company under ESOP 2017.</span> <span style="font-family: georgia, palatino, serif;">During the year, 5,765,905 (previous year Nil) equity shares of INR 10 each issued and allotted as fully paid up at an exercise price of INR 520.30 (including a premium of INR 510.30) per equity share on the conversion of 5,765,905 share warrants to specific promoters.</span> <span style="font-size: 14pt; font-family: georgia, palatino, serif;"><strong><u>FY18-19</u></strong></span> <span style="font-family: georgia, palatino, serif;">Issued 1,57,51,300 equity shares of the face value of INR 10/- each for a cash price of INR 750 per equity share including a premium of INR 740 per equity share (INR 375 per share payable as application money and INR 375 per share payable on first and final call) totalling to an aggregate amount of INR 1,181.34 crore in the ratio of 4:25 i.e. 4(four) partly paid equity share(s) for every 25(twenty five) fully paid equity share(s) held by the existing equity shareholders as on the record date i.e. on June 26, 2018. The said issue opened for subscription by shareholders on July 16, 2018, and closed on August 14, 2018. The shares were allotted to the shareholders on August 23, 2018.</span> <span style="font-size: 14pt; font-family: georgia, palatino, serif;"><strong><u>Note Very Important</u></strong></span> <span style="font-family: georgia, palatino, serif;">“<strong><em>However, the Holding Company has received final call money for all equity shares except for 98,739 equity shares against which Rs. 375 per share is outstanding.</em></strong></span> <span style="font-family: georgia, palatino, serif;"><strong><em>Consequent to the above, the paid-up equity share capital of your Company as on March 31, 2019, stood at INR 114.15 crore comprising of 11,40,98,182 equity shares of the face value of INR 10 each and 98,739 partly paid equity shares, of the face value of INR 10 each with paid-up value of INR 5 each</em></strong>”</span> <span style="font-family: georgia, palatino, serif;"><strong>Book Value</strong> = 228</span> <span style="font-family: georgia, palatino, serif;">So this right issue happened at <strong><u>P/B multiple of 3.24x</u></strong></span> <span style="font-family: georgia, palatino, serif;"><strong>Current Market Value of Share( FY19-20)</strong></span> Currently, the share is available at Rs. 850 per share in the unlisted market. The <strong><u>P/B multiple stands at 2.64x </u></strong>this indicates that share is available at an attractive valuation. <span style="font-family: georgia, palatino, serif;"><strong>If anyone is interested in buying shares of Hero-Fin Corp may contact Mr. Dinesh Gupta at 08010009625 or mail at </strong><a href="mailto:[email protected]"><strong>[email protected]</strong></a><strong>.</strong></span>
We at UnlistedZone are receiving a lot of queries regarding which share to buy <strong>Kurl-On Limited</strong> or <strong>Kurl-On Enterprise</strong>? So to do away with the confusion we are providing the brief of the business of the companies. In our opinion, we should always buy a company which is having the core operation. Kurl-On Limited is only the holding company whereas Kurl-On Enterprise is doing the real business. The price difference between the two is due to the holding discount of 60-70%. <strong>1</strong>. <strong>Kurl-On Limited ( </strong>Holds 85.06% Shares of Kurl-On Enterprise <strong>)</strong><u><strong> </strong></u><strong> </strong>Only a holding company. They get revenue from lease income from rented space and dividend income from Kurl-On Enterprise. <strong>2</strong>. <strong>Kurl-On Enterprise </strong>( Holds 100% Shares of Kurl-On Retail ) This is the company which is doing all the manufacturing work of mattresses, pillow, sofa, and furniture. All the manufacturing unit are with this company. <strong>3. Kurl-On Retail</strong> They are doing business of buying, selling, importing, exporting, transporting storing, promoting, marketing supplying, trading and dealing in all type of goods including mattresses, pillow, sofa, and furniture on retail as well as whole sell basis in India or elsewhere
Paytm will start preparations for an initial public offering (IPO) in the next 22-24 months, its founder and chief executive officer (CEO) Vijay Shekhar Sharma told the HT-MintAsia Leadership Summit in Singapore on Friday. The Indian e-commerce and digital payments giant had last raised funds, totaling $300 million according to regulatory filings, from Warren Buffet’s Berkshire Hathaway in 2018. Its valuation has skyrocketed to $15 billion, Vijay Shekhar Sharma recently said in an interview. Paytm’s parent, One97 Communications Ltd, is India’s most valuable unicorn, or privately held startup with a valuation of $1 billion or more. Its backers include Masayoshi Son’s SoftBank Vision Fund and Alibaba Group’s Ant Financial. Sharma said that while a public listing was ‘inevitable’, it was yet to construct a road map for it because he wants the firm to generate more cash before entering the public market. “I’d prefer to see a 5% reduction in margins right now, maybe 10% incremental, so maybe two years. I’m talking free cash, not profitability. I make money, but I’m looking to make free cash, and then I’ll go (for listing). When I’m comfortable issuing bonds that I can sell in five years, then I’ll go (for listing)." He added that India is going through a “golden age of entrepreneurship" and considers himself “lucky" to be in a period where small founders get to build big businesses. “We’ve seen large businesses in the country. But this is the age in a time when we are able to build young companies, create a massive amount of value for company shareholders, and produce great solutions to problems in India," said Sharma. <div id="sty-ads-1567756975624-1" class="adHolderStory storyadHolderAfterLoad" data-google-query-id="CL3CwLePvuQCFZYfaAodylsJaQ"> <div id="google_ads_iframe_/1055314/LM_MF_Desk_STORY_B1_Multisize_0__container__"> India’s venture capital and startup ecosystem have grown significantly, drawing the attention of both local and foreign investors in recent years. According to Venture Intelligence, Indian startups raised a record $3.9 billion from VCs in the first half of 2019. The figure surpasses the full-year figure for 2016 and 2017, indicating a surge in investor confidence, buoyed by post-election optimism and Flipkart’s $16-billion sale to Walmart last year. </div> </div> <span style="font-size: 14pt;"><strong>Source: Livemint.com</strong></span>
<p><span style="font-weight: 400;"><strong>1</strong>. The Company grew from being a relatively small-sized trading business to emerging as a corporate of considerable scale. They grew from 41 Cr in revenues in 2009-10 to 390 Cr in 2018-19.</span> <span style="font-weight: 400;">During this decade, the Company reported a compounded annual growth in revenues at a rate of 28.4%. <br /><br /></span><strong> </strong><strong>2</strong><span style="font-weight: 400;">. 5.89 million Helmets manufactured in the year 2018-19.</span> <br /><br /><strong>3</strong><span style="font-weight: 400;"><strong>.</strong> 39 countries of product presence. </span><span style="font-weight: 400;">Studd Accessories is truly a multi-product, multi-location, and multi-market company.<br /><br />The Company today has </span><strong>three operational</strong><span style="font-weight: 400;"> and </span><strong>one under construction in Faridabad</strong><span style="font-weight: 400;">, Haryana. Backed by a strong portfolio of more than </span><strong>50 products</strong><span style="font-weight: 400;"> and a strong dealer network, the two major brands of the Company </span><strong>STUDDS</strong><span style="font-weight: 400;"> and </span><strong>SMK</strong><span style="font-weight: 400;"> are synonymous to quality two-wheeler helmets.</span> <br /><br /><strong>4</strong><span style="font-weight: 400;">. From a macro perspective, the Indian two-wheeler industry was under pressure for a major part of FY19. The total two-wheeler sales for FY19 (from August 2018 to March 2019) stood at 2,11,81,390 units and recorded only a 4.86 percent growth over the previous year.</span> <br /><br /><strong>5</strong><span style="font-weight: 400;">. Factors such as an all-time high unemployment rate, a severely hit service industry, lack of liquidity due to the debacle in the non-banking financial company (NBFCs) sector, high insurance costs and rising fuel prices have hurt the demand sentiment. Despite volatilities, Studds did well in FY19 and achieved double-digit growth. For us, it was another year of commendable performance where we grew our top line by 19% and our bottom-line by ~28%.</span> <br /><br /><strong>6</strong><span style="font-weight: 400;"><strong>.</strong> One of the biggest achievements of the year was getting bicycle helmets to plant operational, With a production capacity </span><strong>5 million helmets </strong><span style="font-weight: 400;">per year, it is likely to expand the revenue stream for the company. The plant became operational in the first quarter of FY20 and will company serve a large customer base across the globe.</span> <br /><br /><strong>7</strong><span style="font-weight: 400;"><strong>.</strong> Studds has a presence in almost all the continents, with a total dealer count of</span><strong> 373</strong><span style="font-weight: 400;"> as on 31st March 2019. The Company opened one new Exclusive Brand Outlets (EBOs) during the year at Dehradun and is in the process of opening 5 more EBO’s at Rohtak, Cochin, Mumbai, Bangalore, and Vijayawada. This helps the Company showcase a balanced mix of products to its customers and enhance the share of value-added ones. They are planning to open 10 more such exclusive stores across India by next year, across India.</span> <br /><br /><strong>8</strong><span style="font-weight: 400;"><strong>.</strong> They have started the production of EPS (Expandable Polystyrene) an in-house process, and it is now produced in their new plant. EPS is the most important safety aspect of the helmet. Previously, the production of this was outsourced. This enables them to take better control of the quality factor. It’s a big step towards quality improvement</span> <br /><br /><strong>9</strong><span style="font-weight: 400;">. In FY19, the different strategies adopted by the Company helped them to increase their adjusted revenue by 18.7% to 3890.40 million from 3277.26 million in FY18. They sold </span><strong>5858208 helmets</strong><span style="font-weight: 400;"> and </span><strong>515943 motorcycle boxe</strong><span style="font-weight: 400;">s during the year. Recorded a high EBITDA margin of </span><strong>48%</strong><span style="font-weight: 400;"> during the year under review. This happened due to the increased operational efficiency in their process. Their inclusive growth philosophy further helped them to record a PAT of 411.72 million in FY19 compared to 328.81 million in the previous financial year.</span></p>
<p>HDB Financial Services, a non-banking financial company (NBFC) owned by HDFC Bank, is set to undertake a significant fundraising initiative. The company has announced plans to raise a substantial amount of Rs 15,000 crore through non-convertible debentures (NCDs) and an additional Rs 500 crore through subordinated bonds. This move is strategically aimed at supporting the expansion of its loan book, a critical component of its growth strategy.</p> <p>In recent times, HDB Financial Services has demonstrated remarkable growth in the retail financing sector. As of June 30, the company's overall loan portfolio has witnessed a robust increase of 22 percent. This surge has elevated the loan portfolio to Rs 56,287 crore, up from Rs 45,889 crore recorded a year ago. This growth trajectory underscores HDB Financial Services' strong position in the market and its ability to effectively meet the rising demand for retail financing.</p> <p>The decision to raise funds through NCDs and subordinated bonds is a testament to the company's proactive approach to capital management. NCDs, being debt instruments, offer a fixed rate of return and are a preferred choice for companies looking to raise funds without diluting equity. The addition of subordinated bonds in the fundraising mix further diversifies the company's capital structure, providing a cushion to absorb losses and protect other creditors in case of financial distress.</p> <p>This fundraising initiative is particularly significant in the current economic climate, where the NBFC sector is navigating through various challenges. By securing additional capital, HDB Financial Services is not only looking to expand its loan book but also to strengthen its financial foundation. This move is expected to enhance the company's lending capacity, allowing it to cater to a broader customer base and tap into new market segments.</p> <p>Moreover, the expansion of the loan book is likely to contribute positively to HDB Financial Services' overall profitability and market presence. By increasing its lending capabilities, the company can capitalize on emerging opportunities in the retail financing sector, which remains a key driver of economic growth in India.</p> <p>In conclusion, HDB Financial Services' decision to raise Rs 15,000 crore via NCDs and Rs 500 crore through subordinated bonds marks a strategic step in bolstering its financial position and expanding its loan portfolio. As the company embarks on this ambitious journey, it is poised to reinforce its role as a leading player in the NBFC sector and contribute significantly to the retail financing landscape in India</p>
Unlisted Indian companies could soon find it easier to raise capital overseas through depository receipts. The Securities and Exchange Board of India (Sebi) is planning a liberalized regime for the issue of global depository receipts (GDRs) and American depositary receipts (ADRs) that will help startups and others raise funds, said two people with the direct knowledge of the matter. Currently, only listed companies can issue the instruments. The regulator is also expected to ease norms pertaining to two-way fungibility — conversion of shares to depository receipts and vice versa. FM Nirmala Sitharaman had announced last week that Sebi will soon operationalize the Depository Receipt Scheme 2014, a framework that was approved five years ago but hasn’t been implemented. <div> <div><span style="font-size: 14pt;"><a style="color: #ff6600; text-decoration: underline;" href="//economictimes.indiatimes.com/articleshow/70868231.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst">Click here to read more</a></span></div> </div>
<div id="pl-1740" class="panel-layout"> <div id="pg-1740-0" class="panel-grid panel-no-style"> <div id="pgc-1740-0-0" class="panel-grid-cell" data-weight="1"> <div id="panel-1740-0-0-0" class="so-panel widget widget_sow-editor panel-first-child panel-last-child" data-index="0" data-style="{"background_image_attachment":false,"background_display":"tile"}"> <div class="so-widget-sow-editor so-widget-sow-editor-base"> <div class="siteorigin-widget-tinymce textwidget"> ~The fastest-growing retailer in the country. <strong>Indian Retailing:</strong> Indian retailing is a rapidly growing industry, amounting to nearly 10% of the overall GDP. It has a potential market of nearly a trillion dollars. The point really is on the share of the unorganized sector in Indian retailing, nearly 90% of the market. Nevertheless, the trend is shifting more towards the ‘Organized Retail’ and ‘E-commerce’. The modern retailing is expected to grow at a CAGR of 20% and the traditional retailing at 10% per annum in the coming years. E-commerce is set to grow at an even faster rate. Therefore, the potential for players like Reliance Retail, which spreads its wings through most of the consumer space, is huge. Furthermore, with the organized sector expanding into rural areas, the opportunities are huge. With the changing aspirations and preferences, consumers are moving towards the modern retail shops, in turn prioritizing quality. <strong>Reliance Retail Operations:</strong> The Mukesh Ambani led ‘Reliance Retail’ is the largest retailer in India with a pan-India presence. There are 10,644 stores across 6700 towns and cities in India. Reliance Retail is looking to expand to tier-3 and tier-4 markets. It has started its operations in 2006 and branched into various divisions of the consumer space. • Reliance Trends: Clothing • Reliance Fresh: Food and Groceries • Reliance Digital: Consumer Electronics (TV sets, mobiles, tablets, washing machine, etc.) • Reliance Footprint: Footwear • Reliance Market: A wholesale cash and carry store chains for supporting the local Kirana shops. • Reliance Jewels: Jewellery. • AJIO: An e-commerce platform for clothing. • Reliance Mall: It houses all the divisions of Retail together. <img class="alignnone wp-image-1748 size-full" src="https://unlistedzone.com/storage/knowledge-logo/Capture.jpg" alt="" width="560" height="326" /> <strong>FIG.1 </strong> Fig.1 shows that there is no sector, which has an excessive contribution to the sales, which in turn leads to diversification amongst the different sectors. It is to say ‘Reliance Retail’ is focusing on most of the needs of consumers, be it in modern retailing (Trends, Digital, Jewels, and Footprint) or wholesale distribution. It is aiming at the ‘urban family’ of India, the youngsters and even the unorganized sector (Reliance Market). For example, a modern family gets its groceries from Fresh, washing machine from Digital, clothes from Trends and so on. <strong>Challenges-Peers:</strong> The retailing sector is very competitive in nature and with almost no barriers of entry to set up shops. Not only does Reliance Retail face fierce competition from domestic retailers like Future Group, Pantaloons, Avenue Supermarts, and Spencer’s Retail, but also from the likes of Wal-Mart, the biggest retailer on the planet. Another challenge facing the retailers is the e-commerce platforms, with digitization growing so rapidly, platforms like ‘BigBasket’, ‘Grofers’, ‘Myntra’, ‘Flipkart’ and ‘Amazon’ are increasing their sales quite rapidly. However, Reliance Retail has started AJIO, an e-commerce platform, for clothing to establish itself, even in the e-commerce sector. <strong>COMPARISON:</strong> <img class="alignnone wp-image-1753 size-full" src="https://unlistedzone.com/storage/knowledge-logo/Capture2.jpg" alt="" width="478" height="314" /> <strong>FIG.2</strong> <ul> <li>Reliance Retail dwarfs any other retailer in store count.</li> </ul> <img class="alignnone wp-image-1754 size-full" src="https://unlistedzone.com/storage/knowledge-logo/Captur03e.jpg" alt="" width="487" height="319" /> <strong>FIG.3</strong> <ul> <li>Reliance Retail proved to be one of the most efficient retailers with maximum ‘<strong>RSF</strong>’, while operating the highest number of stores in the country.</li> </ul> <strong>FINANCIALS</strong>: The growth rates are phenomenal. <strong>REVENUE</strong>: The nearly exponential growth of sales at CAGR 55%. From INR 16,169 crores to INR 1,30,566 crores/ <img class="alignnone wp-image-1749 size-full" src="https://unlistedzone.com/storage/knowledge-logo/4-1.jpg" alt="" width="525" height="315" /> <strong>PROFIT AFTER TAX</strong>: PAT remains the highest in the country amongst retailers, and it has grown at an astounding CAGR of 61% for the past five years. Profit of INR 3400 crores for FY 2018-19 <img class="alignnone wp-image-1750 size-full" src="https://unlistedzone.com/storage/knowledge-logo/a.jpg" alt="" width="538" height="303" /> <strong>NET PROFIT MARGIN (NPM)</strong>: The trend of NPM has been upward for the past few years, currently at 2.6%, although not the best amongst the peers. <img class="alignnone wp-image-1751 size-full" src="https://unlistedzone.com/storage/knowledge-logo/s.jpg" alt="" width="519" height="316" /> <strong>Market Capitalization:</strong> The expected market cap of Reliance Retail could be somewhere between INR 2,24,000 crores to INR 3,20,00 crores, the range is arrived taking into account of the current market scenario of well-run retailers. Most of the retailers are trading at a very high P/E multiple compared to other industries, therefore placing huge expectations in the future growth of these retailers. <strong>CONCLUSION:</strong> With the consumer spending that is prevalent in the economy, due to various reasons, ‘Reliance Retail’ is bound to grow. It has established a brand image in the minds of consumers, the modern Indian family, the youngsters and the local shops as well. However, competition is intense, be it from players like Amazon, Wal-Mart or D-Mart. Reliance Retail has to stay ahead of its peers in order to grow and maintain a competitive advantage. Finally, with its expansion into mid and low tier cities, it has a tremendous opportunity to capitalize on the growth of consumerism in those markets. The differentiators, I hope ‘Reliance Retail’ will sustain in the coming decades, are its reach, exclusivity, reputation, and value proposition for everyone. Note: Financials referred to https://unlistedzone.com/shares/reliance-retail-limited-unlisted-shares/ and Annual Reports of “Reliance Industries Limited” (RIL). </div> </div> </div> </div> </div> </div>
<span style="font-size: 14pt;"><strong>Financials of the last 5 years</strong></span> <table width="509"> <tbody> <tr> <td style="text-align: center;" width="64"><strong>Year</strong></td> <td style="text-align: center;" width="95"><strong>Revenue( Lakhs)</strong></td> <td style="text-align: center;" width="89"><strong>Expense(Lakhs)</strong></td> <td style="text-align: center;" width="89"><strong>PAT(Lakhs)</strong></td> <td style="text-align: center;" width="108"><strong>Equity(Lakh)</strong></td> <td style="text-align: center;" width="64"><strong>EPS</strong></td> </tr> <tr> <td style="text-align: center;" width="64">2015</td> <td style="text-align: center;" width="95">33,810.71</td> <td style="text-align: center;" width="89">31,877.24</td> <td style="text-align: center;" width="89">1,265.21</td> <td style="text-align: center;" width="108">30.36</td> <td style="text-align: center;" width="64">41</td> </tr> <tr> <td style="text-align: center;" width="64">2016</td> <td style="text-align: center;" width="95">37,310.05</td> <td style="text-align: center;" width="89">35,551.68</td> <td style="text-align: center;" width="89">1,142.10</td> <td style="text-align: center;" width="108">30.36</td> <td style="text-align: center;" width="64">37</td> </tr> <tr> <td style="text-align: center;" width="64">2017</td> <td style="text-align: center;" width="95">38,301.56</td> <td style="text-align: center;" width="89">36,573.17</td> <td style="text-align: center;" width="89">1,091.45</td> <td style="text-align: center;" width="108">30.36</td> <td style="text-align: center;" width="64">35</td> </tr> <tr> <td style="text-align: center;" width="64">2018</td> <td style="text-align: center;" width="95">40,918.28</td> <td style="text-align: center;" width="89">38,714.97</td> <td style="text-align: center;" width="89">1,454.63</td> <td style="text-align: center;" width="108">30.36</td> <td style="text-align: center;" width="64">48</td> </tr> <tr> <td style="text-align: center;" width="64">2019</td> <td style="text-align: center;" width="95">47,283.00</td> <td style="text-align: center;" width="89">43,645.00</td> <td style="text-align: center;" width="89">2,350.00</td> <td style="text-align: center;" width="108">30.358</td> <td style="text-align: center;">77</td> </tr> </tbody> </table> <span style="font-size: 14pt;"><strong>UZ Review (FY18-19)</strong></span> <strong>1</strong>. The company has shown a <strong>Revenue growth</strong> of 15.56% in FY18-19 as compared to last year. <strong>2</strong>. The company has shown excellent <strong>PAT growth</strong> of 61% in FY18-19 as compared to last year. <strong>3</strong>. The Company is virtually <strong>debt-free</strong>. <strong>4</strong>. The EPS comes out to be 77 in FY18-19. So at CMP of 1250, it is available at P/E of 16.23. <span style="text-decoration: underline;"><span style="color: #ff6600; font-size: 14pt;"><a style="color: #ff6600; text-decoration: underline;" href="https://unlistedzone.com/storage/knowledge-logo/june_2019.pdf">Results PDF Form - 22.08.2019</a></span></span> <span style="text-decoration: underline;"><strong> </strong></span>
Paytm has elevated its CFO and senior vice-president Madhur Deora as president in a newly created role. The Citigroup veteran, who joined the digital payments company in 2016, will now oversee multiple business lines at the Noida-based firm. Deora, a former investment banker, will now be responsible for all of Paytm’s consumer services business, the company said <strong>ON GROWTH PATH</strong> “We have grown over 20 times in the past three years by creating a payments-led lifestyle and financial services app in our country,” said Vijay Shekhar Sharma, founder, and chief executive officer at Paytm. “The next phase of our journey is to expand our offerings in consumer internet and financial services. As we expand our business, we are promoting Madhur to the role of president. He has been a key partner in this success.” <div> <div> Deora, who had so far been spearheading all dealmaking at the company, had led Paytm through its multiple financing rounds along with a slew of acquisitions it has completed. One97 Communications, the parent of Paytm, has been in talks to raise a new $1-1.5 billion in fresh capital <div> <span style="font-size: 14pt; color: #ff6600;"><strong><a style="color: #ff6600;" href="//economictimes.indiatimes.com/articleshow/70731698.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst">Click this to read more:</a></strong></span> </div> </div> </div>
Reliance Industries is aiming to list its consumer businesses Reliance Jio and retail arm Reliance Retail in the next five years. Chairman Mukesh Ambani told the company’s 42nd annual general meeting that the two verticals to would soon be bringing in 50 percent of the group’s consolidated EBITDA. Addressing shareholders, Ambani said, “We have received strong interest from strategic and financial investors in our consumer businesses. We will induct leading global partners in these businesses in the next few quarters, and move towards listing both these companies in the next five years <a style="color: #ff6600;" href="//economictimes.indiatimes.com/articleshow/70641051.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst"><span style="text-decoration: underline;">Click here to read more</span></a>
<strong>Dear Shareholders,</strong> Let me now talk about – the retail business.I am proud to say that Reliance Retail has well and truly brought the Retail Revolution to India. <strong>(i)</strong> We are able to deliver the highest value to our customers because we have the widest geographical footprint; nationwide supply chain; technology expertise; design & product development; and the largest assortment of goods and services. <strong>(ii)</strong> Reliance Retail provides us with a hyper-growth platform, as the Indian consumer demands products and services which are at par with the best in the world. It is the best proxy for the consumption story of India. <strong>(iii)</strong> We achieved a significant milestone with our turnover crossing 1,30,000 crore in the FY18-19. We have achieved this milestone faster than any other retail company in the world.Our <strong>EBITDA margins</strong> are among the best globally. <strong>(iv)</strong> The Retail business has grown phenomenally, registering a 7-fold increase in revenue and a 14-fold increase in profit in the last six years. Our relentless focus on operating discipline has resulted in a 3-fold rise in per-store productivity in the last 5 years. <strong>(v)</strong> We serve more than 1 lakh customers every hour, a feat no Indian retailer has been able to achieve. Last year, we delighted over 15 crore unique customers. We registered over 500 million footfalls last year, becoming India's preferred shopping destination. <strong>(vi)</strong> We have expanded our footprint at a rate of 8 stores per day, opening a total of 3,000 new stores this year, higher than any other retailer globally. Our spread of stores covers all corners of the country, with presence in nearly 7,000 towns and cities. Over 2/3rd of our 10,415 stores are in Tier II, Tier III and Tier IV towns. These towns are connected with a modern supply chain capable of delivering products from distribution centers spread across the country. The unique customer insights can be leveraged to grow into a much bigger business in the next five years. <span style="font-size: 14pt;"><strong>Here are a few more signposts of our spectacular achievements in Reliance Retail.</strong></span> Reliance Digital is the undisputed leader in India in consumer electronics retailing. We sell more phones, laptops, refrigerators, TVs, and ACs than any other retailer in the country. We sold a TV every 24 seconds last year, and we sold a phone every 2 seconds. In Grocery, we are India's largest modern trade retailer. Reliance Retail sells nearly half of the fresh fruits and vegetables sold by the entire modern retail ecosystem in India. We sold more than 6.4 lakh tonnes of groceries during the year. In the fashion category, Reliance Trends is the undisputed leader. Reliance Trends sold over four lakh garments every day last year. With the acquisition of Hamleys, <strong>Reliance Retail</strong> has transformed into a global retailer with a presence in 18 countries. We are proud to own a global category leader in children's premium toys that we can take to other parts of the world and we will be the first Indian company to do so. And we continue to be the preferred partner for several international marquee brands in India. Today, we are the only Indian retailer to be ranked in the Global 100 top retailers. Over the next 5 years, our aim is to be amongst the world's top 20 retailers. <span style="font-size: 14pt;"><strong>New Initiatives ( Connecting 3 Cr Kirana Shops)</strong></span> Now I want to update you on Reliance's New Commerce initiative that I spoke about last year. New Commerce is a massive new business opportunity of USD 700 billion. However, for Reliance, it is the greatest opportunity to promote inclusive growth and shared wealth at the bottom of India's commerce and retail pyramid. The main purpose of <strong>New Commerce</strong> is to completely transform the unorganized retail market, which accounts for <strong>90% of India's retail industry.</strong> The 3 crore merchants and <strong>Kirana shop owners</strong>, who generate direct and indirect livelihoods for over 20 crore people, form the backbone of India's commerce ecosystem. These highly energetic and self-motivated entrepreneurs have suffered in recent years because of their inability to invest in technology and infrastructure. In the true Reliance ethos, we are working towards enriching and empowering them with our end-to-end digital and physical distribution stack. For this, we are deploying blockchain, IoT, AI and other new technologies on a pan-India basis. This tech-enabled partnership will link producers, traders, small merchants, consumer brands and consumers. Our merchant Point of Sale (POS) Solution – Jio Prime Partner POS – is integral to our plan to create an ecosystem around small merchants. This user-friendly digital platform is designed for inventory management, customer relationship management, financial services, and other services. This will modernize even the smallest neighborhood <strong>Kirana shop</strong> to become a future-ready digitized store. During the last year, we have made significant progress in developing and testing our merchant technology platforms. Our beta trials with thousands of merchants across multiple locations in the country established the premise of New Commerce with a significant increase in sales and improvement in margins for the participating merchants. We are now getting ready to roll out the platform at a larger scale.<strong> Reliance's New Commerce platform</strong> thus represents the Digital Symbiosis of Big and Small Enterprises. I believe that the Small must not only survive but also thrive in New India.
The Prem Watsa backed Catholic Syrian Bank( the CSB) is all set to raise 400 Cr from IPO. The CSB bank has filed DRHP with SEBI. The company will issue fresh shares of 30 cr and OFS of 370 Cr. The issue is a combination of fresh shares and an exit opportunity for investors who were holding shares for years. In 2018, the RBI has allowed Prem Watsa, Canadian Billionaire to take control of the company and it becomes first Indian bank to be controlled by foreign promoters. The RBI has given permission on the condition that they have to list the bank. We are accepting the IPO price to be between Rs.185-200. For more detail about the Catholic Syrian Bank, please<span style="color: #ff6600; font-size: 14pt;"> <a style="color: #ff6600;" href="https://unlistedzone.com/shares/buy-sell-catholic-syrian-bank-unlisted-shares-price-allotment-shareholders/">click here</a></span>
Indicative prices, company research and your enquiries — in your pocket. Get price notes on the names you follow and reach our team from anywhere.
