Analysis, guides and explainers on India's unlisted market — from IPO pipelines to ESOP liquidity.
<p><span style="font-size: 14pt;"><strong>Financial of the HDB Financial Unlisted Share</strong></span></p> <!--more--> <table style="width: 47.6965%;"> <tbody> <tr> <td style="text-align: center; width: 12.8205%;"><strong>Year</strong></td> <td style="text-align: center; width: 21.3675%;"><strong>Rev(Cr)</strong></td> <td style="text-align: center; width: 20.5128%;"><strong>PAT(Cr)</strong></td> <td style="text-align: center; width: 13.9601%;"><strong>AUM</strong></td> <td style="text-align: center; width: 15.0932%;"><strong>EPS</strong></td> <td style="text-align: center; width: 16.5307%;"><strong>Book Value</strong></td> </tr> <tr> <td style="text-align: center; width: 12.8205%;">2014</td> <td style="text-align: center; width: 21.3675%;">1,688</td> <td style="text-align: center; width: 20.5128%;">209</td> <td style="text-align: center; width: 13.9601%;">13560</td> <td style="text-align: center; width: 15.0932%;">4.32</td> <td style="text-align: center; width: 16.5307%;">31.70</td> </tr> <tr> <td style="text-align: center; width: 12.8205%;">2015</td> <td style="text-align: center; width: 21.3675%;">2,527</td> <td style="text-align: center; width: 20.5128%;">349</td> <td style="text-align: center; width: 13.9601%;">19290</td> <td style="text-align: center; width: 15.0932%;">6.63</td> <td style="text-align: center; width: 16.5307%;">44.68</td> </tr> <tr> <td style="text-align: center; width: 12.8205%;">2016</td> <td style="text-align: center; width: 21.3675%;">3,302</td> <td style="text-align: center; width: 20.5128%;">534</td> <td style="text-align: center; width: 13.9601%;">25906</td> <td style="text-align: center; width: 15.0932%;">7.64</td> <td style="text-align: center; width: 16.5307%;">50.87</td> </tr> <tr> <td style="text-align: center; width: 12.8205%;">2017</td> <td style="text-align: center; width: 21.3675%;">5714</td> <td style="text-align: center; width: 20.5128%;">698</td> <td style="text-align: center; width: 13.9601%;">34277</td> <td style="text-align: center; width: 15.0932%;">9.64</td> <td style="text-align: center; width: 16.5307%;">68.73</td> </tr> <tr> <td style="text-align: center; width: 12.8205%;">2018</td> <td style="text-align: center; width: 21.3675%;">7061</td> <td style="text-align: center; width: 20.5128%;">951</td> <td style="text-align: center; width: 13.9601%;">44469</td> <td style="text-align: center; width: 15.0932%;">12.18</td> <td style="text-align: center; width: 16.5307%;">79.22</td> </tr> </tbody> </table> <p><strong> </strong><span style="font-size: 14pt;"><strong>UZ Financial Review <br /><br /></strong></span><strong> 1.</strong> The Company has shown excellent Revenue Growth of 43% in the last 5 years. <br /><br /><strong>2</strong>. The Company has shown excellent PAT Growth of 46% in the last 5 years. <br /><br /><strong>3.</strong> The Company has excellent growth of AUM( Asset Under Management). As on 31st March 2018, they have close to 45000 Cr of the loan book. <br /><br /><strong>4.</strong> The Company is paying good dividends. This year they have given 9% dividend per share on FV=10. <br /><br /><strong>5</strong>. The ratio of Gross non-performing assets to gross advances and net non-performing stands at 1.58% and 0.96% as on 31st March 2018. The company has a manageable NPAs level. <br /><br /><span style="font-size: 14pt;"><strong>Valuation of the Company</strong></span><strong> <br /><br /></strong><strong> </strong>The company has listed peer in the name of Bajaj Finance Let us see do the comparison and arrives at the fair value of HDB Financial Services. <br /><br />The comparison has done by taking FY18 Financials. <br /><br /><strong>a) Bajaj Finance: <br /><br /></strong>1. Mcap = 169,367.86 Cr. <br /><br />2. Book Value = 287. <br /><br />3. Price = 2930. <br /><br />4. P/B = 10.20 5. <br /><br />Revenue= 13000 Cr. <br /><br />6. Revenue Growth of last 5 years = 34.84% <br /><br />7. PAT Growth of last 5 years = 38.50% <br /><br /><strong>b) HDB Financial Services Limited:</strong> <br /><br />1. Revenue = 7000 Cr <br /><br />2. Revenue Growth in the last 5 years = 43% <br /><br />3. Book Value = 79.22 <br /><br />4. PAT growth in last 5 years = 46% <br /><br />If we give the same valuation in terms of P/B of 10 to HDB Financial Services as in the case of Bajaj Finance, the Fair value as per FY18 Financials for HDB Financial Services comes out to be around 790-800 per Share. At this price, the HDB Financial Services commands a Mcap of 62000 Cr. <br /><br /><span style="font-size: 14pt;"><strong>UZ View:</strong></span><strong> <br /><br /></strong><strong> </strong>Recently in the last few weeks, we have observed that the price of HDB Financial Services has shot up like anything from 880 to 980 level in the anticipation of Right Issue coming. However, in the interest of the Investor community, we at UnlistedZone strongly believe the CMP of HDB is too high for an investor to buy. Even the HDFC Bank which is listed company is trading at P/B of 5.7.<strong> <br /><br /></strong><strong> </strong><span style="font-size: 14pt;"><strong>The HDB Financial Services at the Current Market Price is Overvalued.</strong></span></p>
<h2 class="ltext-inf paddingBottom20"><span style="font-size: 12pt;">Now, UK-based FIIs can route their orders through this platform</span></h2> <div id="content-body-22285694-26546751"> Bank of England (BoE) has granted recognition to the clearing corporation (CC) of Metropolitan Stock Exchange of India (MSEI) for routing trades from the UK to India’s stock exchanges. In preparation for Brexit, UK-based entities have to get trades routed from a CC approved by the BoE for transactions in India. The move is significant as UK-based foreign institutional investors may be able to route their orders through the MSEI CC for trading in Indian markets once interoperability between CCs kicks in from June 1. <h1><span style="font-size: 12pt;"><a href="https://www.thehindubusinessline.com/markets/msei-clearing-corp-gets-boe-recognition-ahead-of-brexit/article26546751.ece"><span style="text-decoration: underline;"><strong>Read more here</strong></span></a></span></h1> </div>
The National Company Law Appellate Tribunal Friday refused to stay a bankruptcy court order approving steel giant ArcelorMittal's Rs 42,000 crore takeover bid for Essar SteelNSE 0.00 % and sought a fresh plan for the distribution of bid amount between financial and operational creditors of the debt-laden firm. Read more at <span style="text-decoration: underline;"><a href="https://economictimes.indiatimes.com/industry/indl-goods/svs/steel/nclat-refuses-stay-on-nclt-nod-to-arcelormittal-plan-seek-fresh-distribution-plan-for-bid-amt/articleshow/68428571.cms?from=mdr"><span style="font-size: 12pt;">Here</span></a></span>
<img class="alignnone size-medium wp-image-583" src="https://unlistedzone.com/storage/knowledge-logo/IMG-20190311-WA0033-254x300.jpg" alt="" width="254" height="300" />
<strong>1</strong>. The company has posted a <strong>decent growth</strong> of 17% QoQ basis and 14.44% on YoY Basis. <strong>2</strong>. The company has posted a <strong>Profit</strong> of 74 Lakh against loss of 31 Cr last Qtr and a loss of 46 Cr last year which is big positive for the company. <strong>3</strong>. The <strong>Gross NPA</strong> has also gone down QoQ basis from 8.26% to 7.52%. <strong>4</strong>. The Bank has issued <strong>1,98,32,130</strong> Equity Shares @ Rs. 140/- per Equity Share (including premium of Rs. 130/- per share) to FIH Mauritius Investments Limited. Out of the said issue of Equity Shares, the Bank has received an amount of Rs. 35/- per Equity Share (Rs. 2.50/- towards Share Capital and Rs. 32.50/- towards Share premium)-aggregating to Rs. 69,41,24,550/- (Rupees Sixty Nine Crore Forty One Lakhs Twenty Four Thousand and Five Hundred Fifty) towards application and allotment money. <strong>5</strong>. The Bank has also issued<strong> 6,64,63,329</strong> Warrants (being Compulsorily convertible into or exchangeable for Equity Shares) @ Rs. 140/- per warrant (including premium of Rs. 130/- per warrant ) to <strong>FIH Mauritius Investments Limited</strong>. Out of the said issue of warrants, the Bank has received an amount of Rs. 56/- per warrant (Rs. 3/- towards Warrant Capital and Rs. 53/- towards warrant premium) aggregating to Rs. 372,19,46,424 towards application and allotment money. <strong>6</strong>. Consequent to the above the paid up equity capital of the Bank increased from Rs. 81.01 crores to Rs. 85.97 crores and share premium account from Rs.647.51 crores to Rs. 1064.22 crores. The Bank has also accounted share warrant capital amounting to Rs. 19.94 crores.
<div> Fewer Indian firms are raising money through initial public offerings (IPOs) as a strong appetite for fast-growing businesses from venture capital and private equity firms have made them less dependent on the stressed primary market <div>Read more at: <span style="font-size: 12pt;"><strong style="color: #ff6600; text-decoration: underline; line-height: 1.4;"><a style="text-decoration: underline;" href="https://economictimes.indiatimes.com/markets/ipos/fpos/ipos-can-wait-most-indian-firms-prefer-private-lane/articleshow/68297118.cms">[ Economics Times News]</a></strong></span></div> </div>
For two consecutive sessions, ICEX DIAMOND volume has breached all-time high with the value of Rs.365 crs traded on a single day. The Exchange also crossed landmark turnover of Rs.400 crores on a single day across all its contracts. As per an internal discussion which is at the initial stage, there will be only 2 full-fledged exchanges. So MSEI and ICEX are likely to be merged with BSE. And MCX and NCDEX are likely to be merged with NSE. This consolidation is expected to be done in 1-2 years. Swap ratio will be in favor of smaller exchanges.
<h2><span style="font-size: 12pt;">Nayara Energy Ltd. is in talks with fuel retailer Indraprastha Gas Ltd. to set up compressed natural gas stations at its pumps, according to IGL Managing Director ES Ranganathan.</span></h2> <h1><span style="text-decoration: underline; font-size: 12pt;"><strong><a style="text-decoration: underline;" href="https://www.bloombergquint.com/business/in-talks-with-nayara-energy-to-set-up-cng-outlets-says-igl#gs.9yn4eVb7">[Bloomberg Quint News]</a></strong></span></h1>
<span style="font-size: 12pt;">Please read our report on Small Finance Bank wherein we have covered:</span> <span style="font-size: 12pt;">How to open Small Finance Bank as a business; to whom this bank served; what is the purpose of these banks; What is the Capital Requirement; What is the opportunity available in this segment for the investors. </span><span style="text-decoration: underline; font-size: 12pt;"><strong><a href="https://unlistedzone.com/storage/knowledge-logo/Small-Finance-Bank-Know-How_.pdf">Read the Full Report Here:</a></strong></span>
<h3><strong><span style="font-family: 'comic sans ms', sans-serif;"><span style="text-decoration: underline;"><a href="https://unlistedzone.com/storage/knowledge-logo/190214_JOML_AN_01.pdf"><span style="text-decoration: underline;">Quarterly Results Update</span></a> </span>( 31.12.2018 )</span></strong></h3> <img class="alignnone wp-image-515" src="https://unlistedzone.com/storage/knowledge-logo/Screenshot_2019-02-27-13-40-08-870_cn.wps_.moffice_eng-219x300.jpg" alt="" width="599" height="820" />
<h1><span style="font-size: 14pt;"><strong>Results Update</strong></span></h1> <a href="https://unlistedzone.com/storage/knowledge-logo/Unaudited-Financial-results-30-09-2018.pdf">Six Month FY19 Results( Read Financials here)</a> <h1><span style="font-size: 14pt;"><strong>Key Points:</strong></span></h1> <strong>1</strong>. As per the Balance Sheet of<strong> 6MFY19</strong>, the Company has Net Worth of <strong>581.67</strong> Cr and Outstanding Shares of <strong>6.765 Cr</strong>. So Book Value is <strong>86</strong>. <strong>2</strong>. The Company is meeting members on <strong>15.03.2019</strong> to do Private Placement of <strong>13,816,344</strong> at Rs. <strong>180</strong> Per Share. Thereby Garnering close to <strong>248 C</strong>r from the Equity Dilution. (<span style="text-decoration: underline;"><strong><a href="https://unlistedzone.com/storage/knowledge-logo/Notice-of-SSFB-EGM-15.3-1.pdf">Click here to read PDF report</a></strong></span>) <strong>3</strong>. <strong>After this Private Placement</strong>, the Net-Worth would be 830 Cr and Outstanding Shares would be 8.146 Cr. So Book Value would become close to 101 after this deal. <strong>4</strong>. The P/B at CMP of <strong>Rs. 270</strong> per share would be <strong>2.67 after the deal.</strong>
<h1><span style="font-size: 14pt;">India Carbon Financial Results</span></h1> <table width="590"> <tbody> <tr> <td style="text-align: center;" width="71"><span style="text-decoration: underline;"><strong>Year</strong></span></td> <td style="text-align: center;" width="115"><span style="text-decoration: underline;"><strong>Revenue(lakh)</strong></span></td> <td style="text-align: center;" width="129"><span style="text-decoration: underline;"><strong>PAT(lakh)</strong></span></td> <td style="text-align: center;" width="107"><span style="text-decoration: underline;"><strong>EBITDA Margins</strong></span></td> <td style="text-align: center;" width="104"><span style="text-decoration: underline;"><strong>Profit Margins</strong></span></td> <td style="text-align: center;" width="64"><span style="text-decoration: underline;"><strong>EPS</strong></span></td> </tr> <tr> <td style="text-align: center;">Q1FY19</td> <td style="text-align: center;">9,995.00</td> <td style="text-align: center;">2972</td> <td style="text-align: center;">53.0%</td> <td style="text-align: center;">30%</td> <td style="text-align: center;">140</td> </tr> <tr> <td style="text-align: center;">Q2FY19</td> <td style="text-align: center;">19,660.00</td> <td style="text-align: center;">7816</td> <td style="text-align: center;">57.0%</td> <td style="text-align: center;">39.76%</td> <td style="text-align: center;">300</td> </tr> </tbody> </table> <strong>1. </strong>The company has shown tremendous numbers in Q1 and Q2 of FY18-19. The company has clocked an <strong>EPS</strong> of 440 in the first 6 months of this Year itself as compared to <strong>300</strong> for the whole FY17-18. 2. In Q2FY19, the company has achieved a growth of 129% YoY basis. <strong>3</strong>. The Short term <strong>debt</strong> has been reduced to only <strong>2 Cr</strong> as on Q2FY19 as compared to <strong>61</strong> Cr in FY18 which has drastically reduced the Finance cost of the company and big positive going forward. <h1><span style="text-decoration: underline; font-size: 12pt;"><strong><a href="http://www.indiacarbonltd.com/Un-Audited_Financial%20Result_%2030.09.2018.pdf">Quarterly Results Q2FY19</a></strong></span></h1>
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