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Mumbai based Fino Payments Bank is eyeing to float an initial public offering soon, making it the first-of-its-kind to be listed on the domestic bourses. According to some reports in media, the bank is gearing up to raise Rs 1,000 crore through the primary issues, planning a Dalal Street debut in next six months. Rishi Gupta, managing director and chief executive of the company, told media that there may be an IPO soon, but nothing can be confirmed yet. He said that such plans take time to develop and materialize.<!--more--> According to some anonymous sources from the company, the Fino Payments Bank would largely consist of secondary share sale, giving partial exit to its existing investors. The company will raise a smaller amount for itself via sale of fresh shares. The company is likely to appoint investment bankers soon. Fino Payments Bank is a wholly owned subsidiary of Fino Paytech, securing the license from Reserve Bank of India to carry out the payment bank business in 2017. It has five active peers in the country including Paytm Payments Bank, Airtel Payments Bank, India Post Payments Bank, Jio Payments Bank and NSDL Payments Bank. <span style="font-size: 14pt;"><strong>Financial Performance</strong></span> Fino Payments Bank has turned profitable at the operating level in FY 2019-20 on the back of lowered expenses. The company generated a revenue of Rs 64 crore and profit after tax (PAT) of Rs 7.67 crore in the fiscal, compared to revenue of Rs 53 crore and net loss of Rs 9.22 crore in the preceding year. In the first three quarters, the payments bank has been making decent profits. The company clocked a PAT of Rs 4.5 crore in the quarter ended on September 30, 2020, compared to Rs 1.9 crore in the preceding quarter. The company is yet to announce its result for the full financial year. The company has lowered its debt from Rs 328 crore to Rs 240 crore and is trading at a price-to-book value (P/BV) of Rs 22. <span style="font-size: 14pt;"><strong>Business Profile</strong></span> As a payments bank with a physical presence, it offers products including micro-ATM services, Aadhaar-enabled payment system (AePS) transactions, remittances, payment services partnerships, business correspondent banking, current and savings accounts, cash management services and third-party products like insurance and gold loan referrals for partner banks and insurance companies. During the September quarter, the company facilitated transactions worth Rs 33,000 crore, of which domestic remittances contributed 25%, micro ATM/AePS withdrawals comprised 38% and payment services formed 11%. As of September, it had 5.5 lakh banking points, including 2.5 lakh points through its banking partners and 8,000 Bharat Petroleum Corp.'s outlets. It looks to increase its banking network to 10 lakh such points in three years, the company said in a Nov. 25 press release <strong><span style="font-size: 14pt;">Key Stakeholders</span></strong> Incorporated in 2006 to develop banking technology solutions, Fino Paytech is an associate subsidiary of the state-owned Bharat Petroleum, which holds 28.9% stake in the company. ICICI Prudential Life Insurance Company owns 11.5%, International Finance Corporation owns 6.7% stake, ICICI Bank owns 5.8 per cent stake in the Company. Private equity firms Blackstone and HAV3 Holdingsalso hold 7.6% stake each in the company, while Exide Life Insurance Company holds 2.85% stake. Other State entities like LIC of India and Indian Bank hold 2.3 percent each. Union Bank of India owns 4.6 per cent stake in the company, after the merger of state owned PSB Corporation Bank. <strong><span style="font-size: 14pt;">Other business</span></strong> Besides Fino Payments, it also runs a non-deposit NBFC firm Fino Finance that specialises in giving microloans to women in rural areas based on the joint liability. The company acts as a life insurance holding point for its stakeholders. The company business has not remained unblemished during the second wave of pandemic. So far, it has registered lower transactions in the first quarter of the ongoing fiscal. However, the management is hopeful of turnaround once the infection rates would plunge. The management has shown optimism on vaccination. <span style="font-size: 14pt;"><strong>Small Finance Bank plans</strong></span> Fino Payments Bank has completed three years of its operation and is considering conversion into a small finance bank, under the guidelines of the central bank. However, the company management recently said that it is in no hurry to be converted into a small finance bank. Fino Payments Bank has raised its deposit limit to Rs 2 lakh per customers, with 75% of the deposits in the government securities and/or treasury bills with maturity up to one year. From the remaining 25%, the payments banks can also invest in certificates of deposits. Payment Banks have been demanding to up the deposit limit to Rs 5 lakh per customers, while an internal working group constituted by the banking regulator recommended lowering the existing five-year threshold for setting up a small finance bank. Both fares well for Fino Payments Bank. However, Fino Payments Bank would be more keen to ride the IPO tide as a fintech firm, rather than a small finance bank. Fintech firms get a better valuation on the bourses, while listing of recent small finance banks has been tepid. <div class="yj6qo"></div> <div class="adL"></div>
1. Lava International Limited is exploring options for undertaking an initial public offering of its Equity Shares, subject to market conditions, regulatory approvals, consents and applicable law and other considerations.<!--more--> 2. The Offer may be undertaken by the Company at an appropriate time in consultation with the book running lead managers and other advisors appointed for the Offer. The Offer is likely to include a Fresh Issue and may include an Offer for Sale by existing shareholders of the Company subject to <i>inter alia</i>, such shareholders holding eligible Equity Shares as per the applicable laws. 3. In this connection Company has sent an invitation letter to all the eligible shareholders to provide them an opportunity to participate in the Offer for Sale. <a href="https://unlistedzone.com/storage/knowledge-logo/Lava-International-OFS-Letter.pdf">Letter of Offer</a> <p style="font-weight: 400;"></p>
The medium of exchange among mankind has grown over the years. From the barter system in the earliest centuries to livestock and then the coins made from precious metals. As the model countries have been accepted, the medium of exchange has been fiat currency issued by the government or the central bank of a particular country. However, humans never stopped evolving and the emergence of the banking system gave birth to cheques, ATMs and plastic money such as credit cards and debit cards. Such easiness allows people to spend without hassles and problems. In such scenarios, the magic of credit cards makes its place, i.e. the art of purchasing in advance and paying for it later.<!--more--> From a single card, users now have a bunch of credit cards, availed from various national or international banks with different features and schemes, making the system of payment simpler. However, the user has to remember the billing cycle of his cards, as each card would have a different billing cycle. Now imagine there being an app which gathers all this information, sends you reminders to carry out timely payments and even offers you rewards for it. This is exactly where a start up like Cred steps in. This app becomes a single platform to handle all the credit cards. Bengaluru-headquartered Cred was started in 2018 by Kunal Shah as a members-only application which facilitates its users with exclusive rewards for paying their credit card bills. With the passage of time Cred added features to allow users to make house rent payments and introduced short-term credit lines. Cred has customers who have a strong credit score, the platform also has been tracking their bill payment behaviour. It can boast of a good set of borrowers whose chances of default are low. This can be a future growth prospect in terms of business revenue for Cred. Kunal is a MBA dropout from Mumbai's prestigious Narsee Monjee Institute of Management Studies. He gained moderate success with Freecharge, which was started after shutting down Paisaback. He left his role to begin with his own venture. However, his venture has been highly criticized by many startup magnets and entrepreneurial wizards. <strong><span style="font-size: 14pt;">Business Model</span></strong> The business contemplates on three major divisions- The Cred app, Businesses which provides offers on the app and users who pay credit card bills. Cred provides better and bigger offers to the credit cards customers to pay bills via their platform. In less than four years of operations, the company had onboarded over 5.9 million users and processed about 20% of all credit card bill payments in India. As of April 2021, CRED offered five distinct products - CRED RentPay, CRED Cash, CRED Pay, CRED Store and CRED Travel Store. The platform has been established with the purpose of making credit card bill payments easier and to offer the users rewards upon timely payments. The application functions in a simple manner. It requires them to give their phone number to inspect their credit score through CIBIL, CRIF and Experian. Cred earns revenue from the businesses list of products and offers on the app 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 As a result, it gains more and more visitors to join and pay the bills. Cred is trying to offer interesting products. That is where Cred has launched an ecommerce store and a rent paying facility. Two extremely valuable products for this category of customers. While an exclusive club is a good marketing buzz, getting customer engagement and driving valuations northwards. Cred Store is an in-app purchasing platform, where consumers can buy curated products. Then it also launched Cred Rent Pay, with which consumers can pay their monthly rents through their credit cards. Imagine earning rewards on rental payments and redeeming them within the app itself. Also its allied businesses around rent payments and ecommerce are not that exclusive either; they are used by almost every salaried professional who works in places such as Bengaluru, Noida or Mumbai. Cred, while claiming exclusivity, has also kept its products simple and usable. <span style="font-size: 14pt;"><strong>Partnership with IPL</strong></span> The growth of CRED’s platform has also largely been propelled by its marketing campaign amidst the recent editions of cricket fiesta of the nation- Indian Premier League (IPL). The three year deal (2020-2022) was signed at a hefty amount of Rs 120 crore. The company has reported an increase in both its user base as well as on the funding it is receiving. The platform’s board director, Shailendra Singh tweeted that it has been registering a 6-7 times increase in new users since IPL began. The massive audience of the cricket tournament has definitely helped boost the popularity of the application. Despite not making any money currently and aiming at facilitating personal loans in collaboration with banks and non-banking firms (NBFCs), CRED has been a buzzing phenomenon in the past couple of months, largely owing to the IPL, and has intrigued and sparked the interest of many of the audience. <strong><span style="font-size: 14pt;">Funding</span></strong> Cred has been unable to achieve the status of a unicorn so far, but it is highly believed that in the next couple of rounds of funding, the startup will achieve the feat. Cred is recently valued at $0.8 billion or $800 million dollars. So far, Cred has raised a total $256.5 million in funding in five funding rounds. The journey started in November 2018 when it raised $30 million from Sequoia Capital India, followed by an undisclosed amount from Rainmatter Technology. In April 2019, the company raised Rs 180 crore and in July that year, Gemini Investments, Ribbit Capital and Sequoia Capital India invested $120 million in the company. Its recent fund came in November 2020 as it raised $81 million from DST global. <span style="font-size: 14pt;"><strong>Criticism and Agony</strong></span> Interestingly, Cred has no direct peer in the business so far, despite that it has been on the radar of the critics. Analysts and experts have raised multiple questions on the business model and sustainability of Cred. The lofty valuation and lack of a solid monetization plan has drawn criticism. Cred's advertising content and videos, often made in-house and featuring celebrities such as Rahul Dravid, Anil Kapoor, Madhuri Dixit, Govinda and Jackie Shroff and Udit Narayan, Kumar Sanu, Bappi Lahiri. They have generated large discourse in news and social media due to their unique advertising strategy, which has received both praise and criticism thus far.
Paytm board has passed the IPO plans in the yesterday's meet. Paytm is planning to raise Rs.21000 from the IPO. This would be the largest IPO in the history of Indian stock market. Some of the biggest IPOs of all the time were Reliance Power of 11,500 Crores in 2008; General Insurance of Rs.11372 Crores in 2017; SBI Card of Rs. 10354 Crores and many more. But this much big IPO size is coming first time. <!--more--> Paytm which was started in the year 2008 carries the business to provide Telecom based value-added services to various telecom operators across the Territory, Payment gateway aggregator services, Ticket services, Utility bills payments, Insurance, Hotel booking services, Stock Broking etc. They got a real boost in their sales during demonetization in 2016. <span style="font-size: 14pt;"><strong>Financial Performance (Fig. in Cr)</strong></span> <table style="border-collapse: collapse; width: 144pt;" border="0" width="192" cellspacing="0" cellpadding="0"> <tbody> <tr style="height: 15.0pt;"> <td class="xl63" style="height: 15pt; width: 48pt; text-align: center;" width="64" height="20"><strong>Year</strong></td> <td class="xl63" style="border-left: none; width: 48pt; text-align: center;" width="64"><strong>Revenue</strong></td> <td class="xl63" style="border-left: none; width: 48pt; text-align: center;" width="64"><strong>PAT</strong></td> </tr> <tr style="height: 15.0pt;"> <td class="xl63" style="height: 15pt; border-top: none; text-align: center;" height="20">2017</td> <td class="xl63" style="border-top: none; border-left: none; text-align: center;">780</td> <td class="xl63" style="border-top: none; border-left: none; text-align: center;">-900</td> </tr> <tr style="height: 15.0pt;"> <td class="xl63" style="height: 15pt; border-top: none; text-align: center;" height="20">2018</td> <td class="xl63" style="border-top: none; border-left: none; text-align: center;">3314</td> <td class="xl63" style="border-top: none; border-left: none; text-align: center;">-1604</td> </tr> <tr style="height: 15.0pt;"> <td class="xl63" style="height: 15pt; border-top: none; text-align: center;" height="20">2019</td> <td class="xl63" style="border-top: none; border-left: none; text-align: center;">3579</td> <td class="xl63" style="border-top: none; border-left: none; text-align: center;">-4172</td> </tr> <tr style="height: 15.0pt;"> <td class="xl63" style="height: 15pt; border-top: none; text-align: center;" height="20">2020</td> <td class="xl63" style="border-top: none; border-left: none; text-align: center;">3350</td> <td class="xl63" style="border-top: none; border-left: none; text-align: center;">-2833</td> </tr> </tbody> </table> The company’s overall expenses were reduced by 20 per cent in 2019-20 to Rs 5,861 crore compared to Rs 7,254 crore in the previous fiscal year. Paytm’s revenues also fell slightly (1 per cent) to Rs 3,350 crore in FY20.The company’s overall losses at PAT levels reduce from Rs 4172 crore in FY19 to Rs 2833 crore in the FY20. This shows that company has taken measures to reduce the expenses. <strong><span style="font-size: 14pt;">Valuation</span></strong> As per media news, the Paytm is eyeing an valuation of $25 Billion and this translate into Rs.1.875 Lakh Crores of Mcap. Last to last year in the month of Nov-2019, Paytm has raised funds at $16 Billion dollar valuation ( at that time share value was ~18000 ). So, at $25 Billion dollar, the valuation of share comes out to be ~28000-30000 per share. Before the IPO, bonus share issues will going to happen to reduce the share price to make it fit for the IPO.
1. Tata Technologies is collaborating with Logility to offer digital supply chain transformation solutions to its customers across Automotive, Industrial Heavy Machinery, Aerospace, Industrial, and Medical devices verticals to help them achieve agility and improved resilience in the new normal. 2. Post-COVID, enterprises are being challenged to mitigate the effects of supply chain disruptions, such as tackling supply-demand uncertainties, and maintaining continuity in the near term. Agility and resilience of supply chains along with proper demand planning are crucial for better transparency and concurrency for them to win in the marketplace.<!--more--> This collaboration will further augment Tata Technologies’ strong digital transformation capabilities across the product development value chain and strengthen the bouquet of supply chain solutions thereby helping Tata Technologies develop innovative solutions to address business challenges of the manufacturing industry and help them realize better products. <strong>About Logility</strong> 1. Logility helps companies seize new opportunities, sense, and respond to changing market dynamics and more profitably manage their complex global businesses. The Logility® Digital Supply Chain Platform leverages an innovative blend of artificial intelligence (AI) and advanced analytics to automate planning, accelerate cycle times, increase precision, improve operating performance, break down business silos and deliver greater visibility. 2. Logility’s SaaS-based platform transforms sales and operations planning (S&OP) and integrated business planning (IBP) processes; demand, inventory, and replenishment planning; global sourcing; quality and compliance management; product life cycle management; supply and inventory optimization; manufacturing planning and scheduling; retail merchandise planning, assortment and allocation.
<p>HDB Financial Services is planning to raise over Rs 8,600 crore via debt, deferring its plans to float an initial public offering (IPO). HDB Financial Services is the non banking financial arm of HDFC Bank. This subsidiary of the largest private sector bank caters to the informal sector and self-employed segment and wants to improve the deteriorated asset quality. The company is awaiting for the disruptive phase to pass, post that IPO plans would be reconsidered.</p> <!--more--> <p>Various media reports suggest that the board of the firm met in April to clear the decks for raising the funds by way of non-convertible debentures (NCDs) in various tranches in 2021-22. The funds would be utilized for fresh lending, refinancing of existing borrowings, and also to boost the capital levels. The company is considering debt as the cost of borrowing is very less at present. However, the central bank may decide to taper in due to the rising inflationary pressure in the economy. This will also ooze out liquidity from the market, making cash more dearer. <br /><br />HDB Financial Services, with 1,319 branches across 959 cities, has a total loan book of Rs 58,947 crore as of March 31, 2021. It focuses on the risky unsecured personal loans, new to credit loans, consumer durable loans, used car loans, credit card balance transfer and loans to small enterprises. <br /><br />The key target customers of the company are most hit by the second wave of lethal Covid-19, which has resulted in lockdown in many states of the country. The impact is visible in the pandemic year when the company's net profit halved during the coronavirus affected financial year 2019-20, from ₹1,037 crore to ₹503 crore. Net profit fell 17% to ₹$285 crore in the quarter ended on March 31, 2021 from ₹342 crore a year ago due to a rise in provisions. Total provisions during the period increased to ₹613 crore from ₹393 crore a year earlier. <br /><br />HDB's recorded a modest 5% increase in its loan book to ₹58,947 from ₹55,930 cr a year ago. Net interest income grew 15% to Rs 1,252 cr from Rs 1,084.5 cr a year ago. Analysts said the company has been able to arrest the slide in asset quality after a deterioration in the nine months of the fiscal. Gross NPAs had increased to 5.9% in December from 5.1% in September 2020. <br /><br />NCDs contribute over 40 per cent to their liabilities. The outstanding NCDs are over ₹20,000 crore. The term loans from the back are the second-highest source with a 28% contribution at over ₹15,000 crore. HDB Financial Services enjoys a premium valuation, bragging about its strong parentage of HDFC Group. HDFC Bank holds a 95.1% stake in HDB. The NBFC will attempt to unlock the value via the capital market route.</p>
<p>The postponed season of Indian Premier League is likely to resume tentatively in the third week of September in the United Arab Emirates (UAE), according to a PTI report. A senior BCCI official told the news agency that Indian Cricketers, along with the English players will fly to UAE, where the remaining 31 matches of the league will be played. The three week window might witness as many as 10 double headers, due to time constraints. The resumption of the league is a win-win situation for all primary stakeholders including BCCI, franchise owners, broadcasters and players.</p> <!--more--> <p><span style="font-size: 14pt;"><strong>Meaning for CSK holders?</strong></span> <br /><br />The news is definitely a big positive for shareholders of Chennai Super Kings as the severe impact of the lethal pandemic will be reduced. The franchises were supposed to pay the players and staff the full amount for the season, while their earnings were trimmed. The advertisers, sponsors and broadcasters announced to make payment on proportionate basis to the team. However, a refreshed league will add strength to the balance sheet in the ongoing fiscal. <br /><br /><strong><span style="font-size: 14pt;">What had happened?</span></strong> <br /><br />The T20 cricket extravaganza was halted as the bio-bubble of various franchises was burst and multiple cases were reported from different franchises. Kolkata Knight Riders' mystery spinner Varun Chakravarthy was the first player to be reported Covid-19 positive, after breaching the bubble for knee scans. Similarly, SRH's wicketkeeper batsman Wriddhiman Saha, KKRs's Tim Simfert and Sandeep Warrier, CSK's bowling coach Laxmipati Balaji and batting coach Mike Hussey were tested positive during the IPL. The league has been suspended since then. More cases were reported, but no official announcement was not made. <br /><br /><strong><span style="font-size: 14pt;">How will the players reach?</span></strong> <br /><br />Indian cricket team will play the final of the inaugural World Test Championship against New Zealand in England, followed by a five test match series against the hosts during English summers. The last test will end on 14th of Septembers and players will on-board a chartered flight to UAE on the next morning. Similarly, players from the West Indies will also board flights to Dubai after the Caribbean Premier League. The remaining Indian players are reportedly to play a limited over series in Sri Lanka. The remaining domestic players and Sri Lanka touring squad will fly to UAE, once the series is over. There will be a three-day quarantine for all players according to the reports. India was to play South Africa in September, but the series has been called off, as of now. This ensures availability of Proteas players. The two test series with Kiwi team might be rescheduled.</p>
When Flipkart was taken over by US retail giant- Walmart, the landscape of Indian technology startups changed rapidly. Inspired by the super success of E-commerce retailers, many of the former 'Flipkartians' ventured for their own story in the budding industry of the country. An alumni of IIT Bombay (now Mumbai), Lalit Keshre decided to take the entrepreneurial plunge. He was associated with Flipkart as its Group Product Manager. At that point, the domestic startup industry was mainly focused on e-commerce, retailing, cab aggregators and food delivery. Financial services was an old school segment back then.<!--more--> Lalit, along with his former colleagues Harsh Jain, Neeraj Singh, and Ishan Bansal, started working on building products for the financial sector that would "change the thought process in the industry". They stepped in an industry which was highly underserved and if tapped rightly, could result in exponential growth. Back then, about 200 million Indians fell in the bracket of investable income, while only 10% of them invested. The only to bring the remaining 90% on board was by making investing simpler and convenient. There was no looking back since then. This bond had sowed the seeds for 'Groww', which later on grew significantly. They thought of launching a savings product for millennials, which was initially designed as an internet financial services company and with the best user experience. Bengaluru headquartered Groww is an investment platform that offers a new way of investing money with stockbroking and direct mutual funds, which was officially launched in 2017. The platform provides complete insights about mutual funds, systematic investment planning, equity-linked savings, and everything from the personal finance world, which helps new investors make investing simple by maintaining a simplified user interface to make investing easy, accessible, hassle-free, transparent and paperless. 2016 is marked as the year of Demonetization, which opened the doors for the digital economy. Flooded with 'UPI' led transactions, financial applications like Groww shifted the bar to multilevel high in how Indians were handling their wealth. Customers can also invest in Domestic equities, stocks, IPO, gold and other financial instruments through the Groww platform. This strategy helped the entity to scale up the customer base to the older generation, which is more inclined towards the precious metal and other fixed income avenues. Today, over 150 million across 900 cities Indian Groww users invest in Stocks, IPOs, ETFs, digital gold and mutual funds in quick succession, to satisfy their financial appetite. Groww focused on simplicity and transparency, and has been designed as an advisor or ‘buddy’. Its platform is powered by intelligent UI and UX. The app has thumped well for the safety and security of the customers and financial transactions. <strong>The initial Journey</strong> Groww initially started as a mutual fund distribution platform and offered only three mutual funds on its website. Along with these three mutual funds, Groww also offered various services like Robo Advisory, risk analysis, and customer profiling, which were later dropped. Now, over three dozen mutual funds have partnered with Groww, offering over 6,000 schemes for investors. As the platform got older, it started gaining more interactions with users. It started offering zero commission mutual funds and enabled stock trading. <strong>Fundraising</strong> Groww is recently elevated to the status of an 'Unicorn', adding another feather in its crown. A startup with valuation over $1 billions is known as an 'Unicorn'. Groww touched the feat in May 2021, when it recently raised $83 million in the round led by Tiger Global, valuing it over a billion dollars. Its valuation has jumped fourfold in just seven months. In January 2019, Groww raised $6.2 million by Sequoia India. American seed accelerator Y Combinator, Propel Venture Partners and Kauffman Fellows also participated in the investment round. The company had earlier raised $1.2 million from Insignia Venture Partners, America’s Lightbridge Partners and Kairos fund. Groww had raised seed funding from CureFit founders Mukesh Bansal and Ankit Nagori with Y Combinator in January 2018. In September 2019, the company raised $21.4m US-based VC firm Ribbit Capital. The round also saw participation from existing investors Sequoia India and Y Combinator. In the same month and year later, Groww raised $30m from YC Continuity. The round also saw participation from existing investors Sequoia India, Ribbit Capital and Propel Ventures. <strong>Competitors</strong> Groww competes with Zerodha, Upstox, IndMoney and Paytm Money. While Zerodha has a pole position in the stock trading space followed by Upstox, there are multiple players who have been fighting it out for a dominant market share in the space of mutual funds and SIPs. Such platforms include ETMONEY and Cube Wealth. <strong>Mergers and Acquisitions</strong> Groww recently acquired the mutual funds business of Indiabulls Housing Finance, by taking over its subsidiaries Indiabulls Asset Management Company (IAMCL) and Indiabulls Trustee Company, the trustee of IAMCL for Rs 175 crore. SEBI recently allowed fintech companies to facilitate innovation, and increase investors' reach with technology-based offerings. Indiabulls MF has assets under management of Rs 66,369 crore as of March -end. <strong>The way ahead</strong> Groww is likely to launch deposits, US Stocks, Sovereign Gold Bonds and other derivatives products in months to come. Financial education content has been a key focus area for Groww since its inception. The company plans to launch a slew of financial education initiatives aimed at millenials and expand the financial services market.
<p>HDFC, a titan in the housing finance sector, has recently announced its decision to sell a portion of its stake in HDFC ERGO, an eminent insurance entity. This move involves the sale of 44,12,000 equity shares, which represents 0.62% of the issued and paid-up share capital of HDFC ERGO. The decision to divest this stake aligns with the Reserve Bank of India's directive that mandates HDFC to reduce its shareholding in HDFC ERGO to 50% or below.</p> <p>For the fiscal year ending March 31, 2021, HDFC ERGO reported a total income of Rs 7,557.50 crore. This figure constituted 5.43% of HDFC's consolidated income. Additionally, HDFC ERGO's net worth as of March 31, 2021, was valued at Rs 3,253.55 crore, accounting for 1.96% of HDFC's consolidated net worth. The share purchase agreement for this stake sale was executed on May 8, 2021, with the completion of the sale anticipated by May 12, 2021.</p> <p>The acquiring entity for these shares is ERGO International AG, the foreign promoter of HDFC ERGO. The agreed share price for this transaction is Rs 536 per share, totaling an aggregate amount of Rs 236,48,32,000.</p> <p>In terms of valuation, HDFC ERGO had reported a Gross Written Premium (GWP) of approximately Rs 9,700 crore for FY20. While the FY20-21 figures were not disclosed, assuming a 20% growth rate on the GWP, the estimated value for FY20-21 would be around Rs 11,500 crore. With the total outstanding shares as of March 31, 2020, being approximately 60.5 crore and the deal's share price set at Rs 560, the market capitalization of HDFC ERGO is estimated to be around Rs 33,800 crore. This leads to a Mcap/GWP ratio of approximately 2.93x.</p> <p>This strategic sale by HDFC is not only a compliance move in response to the RBI's directive but also a significant transaction in the financial sector, reflecting the dynamic nature of stakeholding adjustments in compliance with regulatory requirements.</p>
<div class="adn ads" data-message-id="#msg-f:1700110249699321049" data-legacy-message-id="17980143b85424d9"> <div class="gs"> <div class=""> <div id=":mv" class="ii gt"> <div id=":mu" class="a3s aiL "> <div class="gmail_quote"> <div dir="ltr"> <div class="gmail_default"> Fino Payments Bank is focusing on core payments business to scale itself up and is in 'no rush' to be converted into a small finance bank. In the wake of the lethal coronavirus pandemic, the company does not intend to enter the high risk lending to micro, small and medium (MSME) businesses. The payments bank will decide its conversion into a small finance bank, once the apex banker, i.e., Reserve Bank of India, comes up with the specific guidelines. Also, it will be closely watching the banking ecosystem to stabilize, especially the asset side.<!--more--> </div> <div class="gmail_default">In an interview to Financial Express, Rishi Gupta, Managing Director and CEO of Fino Payments Bank said that lending business is going through a lot of pain and small finance bankers are under severe distress because of their microfinance portfolio.He added that they will have to see how the paradigm of lending business changes in the post pandemic era. The company is doing quite well as a payments bank with limited risk, which is an added advantage. Gupta wants to grow what they are doing. Fino payments will take a final call, once the clarity on asset quality emerges. Last month, the central bank RBI had doubled the maximum limit of funds account holders of payments banks can keep in their accounts to Rs 2 lakh. Joyed after the announcement, Gupta said that RBI's decision would help the company to serve more customers and he is keen on making the core business stronger. Fino Payments Bank has turned profitable at the operating level in FY 2019-20 on the back of lowered expenses. The company generated a revenue of Rs 64 crore and profit after tax (PAT) of Rs 7.67 crore in the fiscal, compared to revenue of Rs 53 crore and net loss of Rs 9.22 crore in the preceding year. Since turning profitable, the company has been able to scale up its business. Gupta said that the company's business has grown manifold in the last four to five year. At the end of March 2021, monthly total value of transactions, including both digital and non-digital modes, was around Rs 14,000 crore compared to Rs 8,500 crore in the year ago period. However, the company is still Ebitda negative on a consolidated basis. In FY 2019-20, the company clocked a revenue of Rs 872 crore, compared to Rs 547 crore in the year ago. However, the net loss of the company sharply narrowed to Rs 20 crore from Rs 73 crore, during the period under review. The company has lowered its debt from Rs 328 crore to Rs 240 crore and is trading at a price-to-book value (P/BV) of Rs 22. The company business has not remained unblemished during the second wave of pandemic. So far, has registered lower transactions in the first quarter of the ongoing fiscal. However, the management is hopeful of turnaround once the infection rates would plunge. The management has shown optimism on vaccination. Its key shareholders consist of names like LIC of India, Bharat Petroleum, ICICI Prudential Life Insurance, International Finance Corporation, ICICI Bank, ICICI Lombard General Insurance, Exide Life Insurance, Intel Capital Corporation along with various state owned banking names. </div> </div> </div> </div> </div> </div> </div> </div>
In view of the outbreak of the COVID-19 pandemic, social distancing norm to be followed and the continuing restriction on movement of persons at several places across the country and pursuant to the Ministry of Corporate Affairs Circulars No. 14/2020 dated 8th April, 2020, Circular No. 17/2020 dated 13th April, 2020 and Circular No. 20/2020 dated 5th May, 2020, and circular No. 39/ 2020 dated 31st December 2020, and in compliance with the provisions of the Companies Act, 2013 read with relevant rules made there under, <!--more--><span style="text-decoration: underline;"><em><strong>Notice of Extra- Ordinary General Meeting to be held on Saturday, the 29<sup>th </sup>day of May, 2021, at 4:00 P.M. (IST) through Video Conference / Other Audio Visual Means (“OAVM”)</strong></em></span>, which does not require physical presence of members at a common venue. The shareholders who have time is requested to attend this AGM to get the business insight of the company and IPO plans. We will attend this meeting and provide the minutes of the meeting on UnlistedZone platform. <strong><a href="https://unlistedzone.com/storage/knowledge-logo/NCL-Holdings-EGM-Notice-29-05-21.pdf">EGM Notice Link</a></strong>
<div class="gmail_default">From dungy, dull and sitting pack classes in school and coaching centers to interactive and ultra-engaging sessions, Covid-19 pandemic has made us comfortable with all. With the electronic mode of studies being a new normal, a brand is getting resonate to all of us.</div> <div class="gmail_default"> The edtech sector has grown leaps and bounds since inception, accelerating the growth in recent years. However, Byju's is one name which stands out, amongst other homegrown peers. The passion towards teaching and learning of Byju Raveendran, the founder of the learning app, has led the journey to create India's most valuable edtech startup.</div> <!--more--> <div class="gmail_default"> <strong>Beginning of the Journey</strong> Born in 1980 in a Malayaly family, living in Azhikode- a small coastal village of Kerala, Byju had inclination towards education. The son of a physics and mathematics teaching couple is a multitime CAT centi-percentiler. Despite that, he did not enroll into any top rated B-school, but followed his passion for teaching. He chose to become an engineer. He graduated in Mechanical Engineering from Government Engineering College, Kannur. Engineer by degree, and teacher by choice and entrepreneur by chance, Byju taught MBA aspirants tips and tricks to solve aptitude questions on the terrace of a friend’s house. As the number of students increased, the venue shifted to auditoriums. Byju's was founded in 2011 by Byju Raveendran. He became India's youngest billionaire with a net worth of $3.05 billion as per Forbes list of India's 100 Richest People (2020). Byju's- The Learning App was launched in 2015 and became an instant hit. Prior to the launch of the app, Byju started with offline classes, but later moved to online mode as the popularity gathered amongst the masses. He added other competitive exams and later expanded his portfolio to class 9th to 12th module. Within a few months of launch, the number of enrolled students topped the mark of 2 million. The learning app also coaches for CAT, the civil services examination, the Joint Entrance Examination (JEE), the National Eligibility and Entrance Test (NEET), the Graduate Record Examination (GRE) and the Graduate Management Admission Test (GMAT). Currently, Byju has the expertise with a more than 700 high-quality product development team, 200 content creators who develop quality content; 150 creative media teams to make interesting videos and more than 100 technology teams. Bengaluru headquartered Byju is the world's most valued education technology enterprises. According to recent reports, it is valued at over $15 billion. The company has roped in some of the hot shot private equity funds like Sequoia Capital, Aarin Capital and Sofina, along with Cheng Zuckerberg foundation. <strong>Business Model</strong> Byju’s works on a freemium business model wherein it offers customers both complementary and paid (premium) services. The company asks the students to submit their details on its application or website and offers them a free 15 days trial. Once the free trial is exhausted, the student has to buy the courses from BYJU’s to access the complete content. A business model can be defined as a strategy of how the entrepreneur will make profit. The company has a triple way revenue generation module.</div> <div></div> <div class="gmail_default">a) The first one is through the app. After the free trial of 15 days, students have to purchase the courses to continue their educational journey on BYJU’s. The app offers a variety of test series, courses, etc. which actually compels people to make the purchase. b) BYJU’s offers electronic tablets that customers need to procure when they buy the course of their choice. This tablet has the videos, tests, practice questions, quizzes, etc. pertaining to that course.</div> <div></div> <div class="gmail_default">c) The third revenue generation mechanism is through classroom teaching. However, these classes are restricted to only a few bigger cities in the large states.</div> <div></div> <div class="gmail_default">The business model of Byju’s is brilliant and extremely profitable. This business model has helped Byju’s transform in-to a company worth a decabillion unicorn. <strong>Revenue of Byjus</strong> After becoming an educational learning app, Byju’s revenue was Rs 4 crores in 2011-12, which increased to Rs 12 crores in 2012-2013, Rs 20 crores in financial year 2013-14, Rs 48 crores in fiscal 2014-15 and to Rs 120 crores in financial year 2015-16. This increased to Rs 260 crores in the year 2016-17. In the fiscal year of 2018, Byju’s clocked a revenue close to Rs 500 crore, which jumped to Rs 1350 crore in the next fiscal. Byju’s is currently a part of the Indian markets and the Middle-East. It plans to be a part of the European, American, African, and other Commonwealth markets <strong>Investments</strong> The journey of Byju's classes started with a first ever investment of Rs 50 crore investment from Mohandas Pai and Ranjan Pai in 2013. Byju is the only startup in Asia which is funded by Mark Zuckerberg. Cheng Zuckerberg Foundation is named after Facebook's founder, his better half. In September 2016, Byju received $50 million from the Chan Zuckerberg Initiative (CZI), the philanthropic organisation created by Mark Zuckerberg, founder of Facebook and his wife Dr Priscilla, Times Internet- the digital arm of BCCL, Lightspeed Ventures, Sequoia and Sofina. Byju's attained the decacorn status with an investment by Mary Meeker's Bond Capital. Blackrock and T. Rowe Price entered the company in November 2020, at a heavy value of $12 billion. In April 2021, B Capital, Baron Funds and XN invested $1 Billion in Byju's. <strong>Mergers and Acquisitions</strong> Byju has been very aggressive in acquiring small players in the market, to gain market share at a very high rate. However, this kind of strategy often leads to more cash burn. Also, over acquiring or diversification may lead to a fall shift of focus from the core business. In 2017, the company acquired learning guidance platform Vidyartha to boost its personalized learning products. In the same year, it took over education platforms- TutorVista and Edurite- from Pearson to expand its footprints in international space. In January 2019, Byju's acquired a US-based Osmo, a maker of educational games for children aged 3–8 years for $120 million. In February 2021, Byju’s acquired Mumbai-based doubt clearing platform Scholr. During the crisis of Covid-19, Byju's engulfing journey did not halt. It bought the coding application platform of WhiteHat Junior for a whopping $300 million through an all cash deal. In next month, that is September 2020, Byju signed a deal to acquire brick and mortar test preparation leader Aakash Educational Services for an humongous amount of $1 billion. In the same month, it seized the rights of ed-tech startup LabinApp for an undisclosed amount. <strong>Achievements</strong> Covid-19 pandemic emerged as a blessing in disguise for the unicorn enterprise. When the world was suffering from the wrath of health crises and school, colleges were shut during the lockdown, it became the world's most valued edtech startup in June 2020. Its valuation surpassed $10 billion. In 2017, Byju's named bollywood magnate Shah Rukh Khan as his brand ambassador, who has been associated so far. In March 2017, a case study on BYJU's was featured in Harvard Business School's curriculum. It is one of the biggest achievements for any company from a non-monetary perspective. It paved a way for the global market for the company. In 2019, Byju became the official title sponsor of the Indian Cricket Team jersey, replacing Chinese mobile brand Oppo. In November 2020, Byju's became the title sponsor of the Indian Super League club Kerala Blasters FC, co-owned by master blaster Sachin Tendulkar. It replaced Muthoot Group. <strong>Competitors</strong> In a way, Byju enjoyed monopoly before the COVID-19 pandemic. However, many similar major players entered the market when the government imposed lockdowns and put restrictions on attending school and colleges. This meant that students had to now learn everything from their homes, which paved the way for other edtech. Various new entrants like Vedantu, Unacademy, Toppr, Meritnation, etc have tapped the markets, but they are not much close to Byju's. The focus of the learning App was to provide online coaching to fourth to 12th class students. Byju tried to make it effective as well as interesting. This has been the moat of the company so far. His learning App is replicating and forgetting soon after the exam. It is about breaking the vicious cycle of memorising. The app-based model has several advantages. The app is getting more popular in the smaller cities and towns, where the education infrastructure is shattered and scanty. <strong>Challenges for Byju's</strong> As said by Byju Raveendran, the founder, on various media platforms, converting the students to paid subscribers after the free trial ends is a major challenge for BYJU's. The company is also working towards expanding to other English speaking countries, and finding suitable partners to assist with this expansion is the second challenge.</div>
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