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Fino-Paytech which is running its operation under payment bank license from 2016-17, today got the approval from RBI to become scheduled commercial bank. The Reserve Bank of India has announced through a notification issued dated February 22 that Fino Payments Bank has been included in the Second Schedule to the Reserve Bank of India Act, 1934.<!--more--> The management has termed this development as a reiteration of the bank's robust processes, Mr. Rishi Gupta, MD & CEO, Fino Payments Bank said, "We are extremely thankful to the central bank for the inclusion of Fino in the second schedule. It provides strategic impetus for Fino Payments Bank to enhance its scope on balance sheet management and explore additional avenues for business. We are keen to capitalise on the growth opportunities that exist within the regulatory guidelines and build on the momentum of consistent profitability achieved last fiscal." We at UnlistedZone are in view that it will be a golden opportunity for banks to tap government businesses, give loans in the market and take deposit more than 1 lakh which were some of the limitation in payment bank license. Overall, we can say revenue and profitability will grow from here.
Suryoday Small Finance Bank has the second highest three-year AUM growth rate of 64 per cent in fiscal 2020, as per the company’s DRHP. It has a loan book size of Rs 4,000 crore. As of July 31, 2020, it operated 482 banking outlets spread across 12 states and union territories in India. The bank has a growth plan in place and to support this, an IPO will soon be floated. In an interview, R Bhaskar Babu, MD and CEO of Suryoday Small Finance Bank shared with FPJ’s Jescilia Karayamparambil and R N Bhaskar the journey of the financial institution. Edited excerpts: Tell us the journey of your bank<!--more--> In 2009, we founded an NBFC started with seed funding from a social investment fund Aavishkaar. Coming from financial institutions like Cholamandalam-DBS, GE capital, HDFC Bank and others, I do believe financial support for the bottom of the pyramid is usually sold to — and not purchased by — customers. We nudged our customers to open a bank account, however small the amount might be. In 2009, the banks were not interested in opening bank accounts for low-value-high-volume customers as they would occupy bank space which put pressure on bank staff. It was a time when the business correspondence (BC) space was evolving. But it was in no way similar to current times. It used to take 10 minutes for a transaction to go through a BC. And most of the transactions that went through the BC network was remittance business where there was a payout to the BC agent. So, we tried to become a BC but we were not allowed to become BC in 2009. We encouraged some of our customers to become Customer Service Points (CSPs ) for the bank. This would encourage and nudge other customers around to start saving. So, we gave our customer’s piggy bank boxes and asked them if they could save Rs 20-30 daily. The answer was that it was possible. While the response to this idea was overwhelming, we still managed to distribute 1,500 piggy boxes which was priced at Rs 55 per box then. It was at that time, we (as an NBFC then) thought we should either become a bank or an agent for the banks. Even after our customers saved enough money, we were unable to help them open a bank account. This was an unfulfilled promise. At that point, we never aspired or dreamt of becoming a bank one day. Back then, our net income was Rs 30 crore. We believe that if our microfinance customers come and tell us that they do not need our loan and that they have saved enough — it is at that point that we would consider ourselves successful. We are still on that journey. The day we are able to achieve that, we can say we have done a meaningful job for our customer base. We wanted to see if we can make million Indian millionaires (which is Rs 10 lakh). This is possible but the asset has to be built slowly. Every long journey starts with a very small step. We have taken small steps, now we have to see if we have motivated our customers to move up the value chain. This is very much possible. When the small finance bank space opened up for a limited period, we were still unsure if we would be able to get it. But we attempted it by putting out a business plan. When we go back and look at the business plan, we realise that we have done that meaningfully. We overachieved in the case of various parameters in our business plan. But one area that we were unable to achieve significantly was turning these customers into truly transactional account holders with the bank. Now with our small finance bank, we are able to empower our customers with various services that were out of their reach as they were out of the banking system. <strong>How big are you now?</strong> In terms of loan asset size, we are Rs 4,000 crore. <strong>How many people do you employ?</strong> We employ around 4,500 people as of December end 2020. <strong>What are the services the bank offers?</strong> We have started micro home loan, with upper limit of Rs 10 lakh. Anything beyond Rs 10 lakh, it becomes an affordable proposition which is different segment. We also offer legal advice to home buyers. By providing legal advice, we are making the whole process easy which is a value add that we offer. In the whole process, the customers should not feel that they are short changed and should instead feel confident. We encourage our customers to take Pradhan Mantri Jeevan Jyoti Bima Yojan. We do not get any payouts for that but it is more or less like a cost that we incur. We do this mainly because as per our historical data we found that 1 per cent or less of our customers or their family members especially spouses die. Out of the 10 lakh customers, we process close to 7,000-8,000 claims every year. Thus, we encourage them to take the insurance and process the claim and credit their account with Rs 2 lakh. While you cannot mitigate what they have gone through, the financial benefit means a lot to these households. We are also putting out natural calamity’s insurance for as low as Rs 50. The insurance companies do not give us any payouts for this task but we still do it. The intention is to give all these solutions under one umbrella. So, the customer feels confident. <strong>How many zero-balance accounts or Jan Dhan accounts have the bank opened?</strong> It is a zero-balance account for which we give OD facility and a debit card. We call it the sunrise account. It is around Rs 3.5 lakh as of December. So, it is a Jan Dhan account from a minimum balance account point of view. <strong>What is cost in terms of customer acquisition for the bank?</strong> Our operating ratio to our value of asset size is 5 to 6 per cent (historical number). But given the unit size of servicing our customer, it will be more per unit of loan or saving. This is because the balance of these customers are far less in terms of account. To meaningful service these customers, we offer doorstep service. This makes the process a lot more expensive compared to doing it through digital means. Along with this, the BC network is getting wider and wider. There are around 10 lakh CSPs and at that point people can walk in at any point of time. <strong>What has the impact of COVID-19 been?</strong> Business was at a standstill for a period of six months from April to September. After that, it started opening up. At the overall level, the customers did get impacted. Maharashtra which is our core market did get impacted as people were unable to travel for work. But the bounce back was pretty sharp. During this time, we realised that for contactless opening of an account, we cannot use biometrics. So, we started opening accounts using iris. These accounts were opened in a matter of minutes and not hours. During this time, over one lakh of our customers paid us through digital means. But later it tapered off. <strong>Are you looking at any regulator assistance to grow further?</strong> The regulator has been very proactive in engaging with us even before we launched. The regulator helped players in the small finance banking space interact and exchange ideas to improve this segment. The good compliance in terms of regulation has been very useful for a group of institutions. This is a large financial experiment that the regulator has undertaken by differentiating banks. The more successful we are, it will allow others to come forward to become small finance banks. Having more and more (small finance) banks will help in serving customers in the holistic manner. The regulator was more of an enabler. There will be some issues or constraints. But they will get addressed sooner or later. <strong>How much are you planning to raise via IPO?</strong> As per our DRHP, the shares on issuance is 2 crore shares — part will be pre IPO. This IPO will not only enhance our net worth but also support our growth plans. (Note: <em>News taken directly from https://www.freepressjournal.in/) </em>
A wide range of homegrown start ups are eyeing listing on the bourses. However, they are waiting for the clarification over the listing regulations overseas from the corporate affairs ministry and the revenue department. The central government is keen on making listing norms easier for the Indian Start-ups to raise funds abroad. Lets us know, which are they key players seeking listing in India or overseas:<!--more--> <strong>1. Policy Bazaar IPO</strong> Policy Bazaar, promoted by EtechAces Marketing and Consulting, is an Indian Insurance Aggregator founded in June 2008 by Yashish Dahiya, Alok Bansal and Avaneesh Nirjar. EtechAces, which houses Paisa Bazaar, may hit on primary markets with Policy Bazaar IPO. Gurugram bases Policy Bazaar may target valuation around $3.5-billion ahead of its IPO. The insurance aggregation has the potential to become the first of India's mega-start-ups to debut as its digital economy booms. Started as an insurance policy price comparison website, the start up has shaped itself as an insurance selling entity. The company claims to process nearly 25% of India's life insurance and over 7% of the country's retail health cover. Policybazaar.com has so far raised US$366 million in 7 rounds of funding since its inception in 2008. Its key investors include renowned names like Softbank, Info Edge (India), Inventus Capital Partners, Premji Invest, Ribbit Capital, Steadview Capital Management, Tiger Global Management and True North amongst others. Regulated by Insurance Regulatory And Development Authority of India (IRDAI) Policybazaar has tie-ups with insurance companies that help it procure information such as price, benefit, insurance cover etc. directly from over three dozen insurers. Users can hop on the Policy Bazaar portalor app to research, compare and buy insurance policies. Policybazaar has companies, who offer car insurance, health insurance, life insurance, corporate insurance and travel insurance, as its business partners. The company is registered as an insurance web aggregator under the Insurance Web Aggregator Regulations, 2017. <strong>2. BYJUs IPO</strong> Kerala born Byju Raveendran, who is the son of teacher parents, founded India's largest EdTech startup Byju's in 2011. This rapidly growing superlative valuation of $11.1 billion. The hefty valuation put Raveendran on 72nd spot in the list of top 100 billionaires of India. As of 2019, Byju's had secured nearly $785 million in funding from some of the top notch investors, including Sequoia Capital, Chan Zuckerberg Initiative (CZI), Tencent, IFC and General Atlantic. Byju's was the first company in Asia to receive an investment from Chan-Zuckerberg Initiative (co-funded by Facebook founder Mark Zuckerberg and Priscilla Chan). Byju's, an education tutoring app, runs on a freemium model. It offers education content for class 1 to 12. It also trains students for examinations in India such as IIT-JEE, NEET, CAT, IAS and international examinations such as GRE and GMAT. Academic subjects and concepts are explained with 12-20 minute digital animation videos. Byju's reports to have 4 crore users overall, 30 lakh annual paid subscribers and an annual retention rate of about 85%. Company will soon launch content in regional languages. <strong>3. Flipkart IPO</strong> Former Amazon employees and IIT alumni Sachin Bansal and Binni Bansal incorporated Flipkart in October 2007. However, the Bansal duo has exited the company after 81% stake of the entity was acquired by U.S.-based retail chain Walmart for US$16 billion, valuing Flipkart at around $20 billion. Banglore (India) headquartered and Singapore registered e-commerce company initially focused on online book sales before expanding into other product categories such as consumer electronics, fashion, home essentials, groceries, and lifestyle products. It competes with international giants like Amazon and domestic competitors like Snapdeal. Singapore’s sovereign wealth fund, GIC, Accel Partners, Tiger Global, DST Global, ICONIQ Capital, Morgan Stanley Investment Management and Sofina are some of the key investors in the company. The leading e-commerce marketplace of India is now valued at $25 billion. The company management is likely to raise funds via primary offering soon. <strong>4. Oyo Rooms IPO</strong> This domestic living space start up was mainly focused on budgeted accommodation and hotels in the initial years, but now operates as an Indian hospitality chain of leased and franchised hotels, homes and living spaces. It was founded by Ritesh Agarwal in 20013, who later on became India's youngest billionaire. Agarwal now serves as the CEO of the company. After undertaking months of research and staying in various bed and breakfast homes, guest houses, and small hotels across India, Agarwal renamed his venture from Oravel to Oyo Rooms in 2013. It has expanded globally serving countries including, Malaysia, UAE, Nepal, China, Brazil, Mexico, UK, Philippines, Japan, Saudi Arabia, Sri Lanka, Indonesia, Vietnam and the United States, alongside India. Despite the Covid-19 pandemic wreaking havoc on the travel and tourism industry, Oyo Rooms is a decade-old company. Its key investors include Star Virtue Investment, SoftBank, Didi Chuxing,, Greenoaks Capital, Sequoia Capital, Lightspeed India, Hero Enterprise and Airbnb. <strong>5. NYKAA IPO </strong>Nykaa is an Indian lifestyle marketplace for beauty, wellness, and fashion products, incorporated in 2012 by Falguni Nayar, an alma mater of Indian Institute of Management (Ahmedabad) and former MD of Kotak Mahindra Capital. The company has expanded from online-only to an omnichannel model to sell the products. The unicorn startup is expected to hit with an IPO, valuing company around $3 billion. Mumbai headquartered startup has warehouses in Delhi, Mumbai and Bangalore. It claims to have over 3 lakh products across 1,500 brands. Nykaa has raised money through multiple rounds of funding. Its key investors include private equity funds like Steadview Capital, Fidelity Management and Lexdale International. B-town beauties like Alia Bhatt and Katrina Kaif have invested an undisclosed amount in the company. <strong>6. ZOMATO IPO</strong> Zomato started as a restaurant aggregator, but later on strengthened its roots in food delivery as well. Founded as Foodiebay in 2008, it was renamed as Zomato in early 2010. It also began grocery delivery amid the COVID-19 outbreak to cover for lost business. The start-up was founded by Pankaj Chaddah and Deepinder Goyal in 2008. As of 2019, he serves customers in over a couple of dozen nations and more than 10,000 cities. The company operates in countries like the United Arab Emirates, Sri Lanka, Qatar, United States, United Kingdom, Philippines, South Africa, New Zealand, Turkey, Brazil and Indonesia, Canada and Ireland. BSE and NSE listed company Info Edge owns over 58% stake in Zomato. The parent company is likely to unlock value of Zomato , setting its sights on Zomato IPO by June-2021. Sequoia Capital, Tiger Global Management, Ant Financial, Baillie Gifford, Luxor Capital, Kora Capital are other key stakeholders of the company. <strong>7. Grofers IPO</strong> Domestic online delivery startup Grofers was founded in December 2013 by Saurabh Kumar and Albinder Dhindsa. Gurugram based company is anticipated to go public in the last quarter of 2021 or early 2022. The unicorn start up company has raised about $535.5 million from investors including SoftBank, Tiger Global and Sequoia Capital. Currently, Grofers has 10,000 partner stores to run a fast and lean supply chain from manufacturers straight to consumers. Grofers currently operates in 29 cities namely Delhi, Mumbai, Bangalore, Pune, Jaipur, Chennai, Hyderabad, Kolkata, Lucknow, Aligarh, Agra, Ahmedabad, Gurugram, Noida, Ghaziabad, Kanpur and Faridabad. The company gained significant market share during the pandemic enforced lockdown. <strong>8. Delhivery IPO</strong> Delhivery is an Indian delivery and supply chain company, founded in 2011 by Sahil Barua, Mohit Tandon, Bhavesh Manglani, Suraj Saharan, and Kapil Bharati. The company offers logistics services to a number of e-commerce companies, According to some media reports, the company is expected to go public in next 12-15 months, valued at $3.5-4 billion. The company is backed by the Softbank Carlyle Group, Tiger Global, Steadview Capital, Fosun International, Nexus Venture Partners amongst the others. Gurugram-based Delhivery covers 2,300 cities providing a full suite of logistics services such as express parcel transportation, LTL and FTL freight, reverse logistics, cross-border, B2B and B2C warehousing, and technology services. Delhivery has fulfilled over 800 million transactions since inception and currently works with over 10,000 direct customers, including large and small e-commerce participants, SMEs, and over 450 enterprises and brands.
As the secondary market is high with bull spirit, the primary market is raising the toast too. A lot of companies are gearing up for their initial public offering (IPO), gaining attention of investors in the off market as well. A handful of strong unlisted players are eyeing listing after a spectacular run up broader markets: <strong>1.</strong> <strong>Nazara Technologies IPO</strong> This mobile gaming company, backed by celebrity investor Rakesh Jhunjhunwala, has filed DRHP with market regulator SEBI. The firm is popularly known for its games on the World Cricket Championship, Chhota Bheem and Motu Patlu series.<!--more--> The company operates on a Subscription, Freemium and Esports based business model. Nazara operates in the Middle East, Africa, South East Asia, Latin America along with India. It owns a number independent subsidiaries including key names like Next Wave Multimedia, Trivia games and Nodwin Gaming. Industry experts believe that India is a huge market for the mobile gaming industry, with strong growth prospects. As the more hands hold smartphones, the prospects are brighter for the company. For the half fiscal ended September 30, 2020, Nazara Technologies reported a profit of Rs 10.1 crore, while in the financial year 2020, it posted a profit of Rs 26.6 crore. Interestingly, the early investor WestBridge Capital exited Nazara Technologies with a whopping hefty profit of 43 times. It sold its stake to Plutus Wealth Management. ICICI Securities, Nomura Financial Advisory and Securities (India) Private Limited, Jefferies India Private Limited and IIFL Securities are book running lead managers to the issue. Nazara Tech unlisted share price = 1400 per share <strong>2. Barbeque Nation Hospitality IPO</strong> This firm owns and operates one of the most popular casual dining restaurant chains, Barbeque Nation, throughout 42 cities in the country. The company owns over 150 outlets in India, United Arab Emirates, Oman and Malaysia. Founded in 2005, the company is promoted by Sayaji Hotels, Sayaji Housekeeping Services, Kayum Dhanani, Raoof Dhanani and Suchitra Dhanani. It is backed by private equity firm CX Partners, which made its first investment in 2013 and again in 2015. The promoters hold 60.24%, CX Partners owns 33.79%t and renowned stock market investor Rakesh Jhunjhunwala's investment firm Alchemy Capital holds 2.05% in the company. The company has got SEBI's twice to float an IPO. In july 2020, the dining firm obtained "observations" from the regulator, but has not initiated the process in the primary market as the sector is brutally hit by Covid-19 pandemic. In 2017, the company had filed IPO papers, which was approved in January 2018 but the issue was not launched. The company clocked a revenue of Rs 237 crore in nine months of FY 2020-21 ending on 31 December 2020. It has incurred a net loss Rs. 99 crore. In FY2 2019-20, it clocked revenue of Rs 850 crore with a net loss of Rs. 33 crore. Barbeque Nation Unlisted share price = 650 per share <strong>3. Suryoday Small Finance Bank IPO</strong> Incorporated in 2008, Suryoday Small Finance Bank has been consistently promoting financial inclusion by serving the unbanked and the underbanked segments in the country. The company obtained a Small Finance Banking (SFB) license from Reserve Bank of India (RBI) in the year 2017. Suryoday SFB is active in business of Microfinancing, Loan Against Property (LAP) & Housing Loan, MSME loans, Commercial Vehicle loans, financial Intermediary Group Loans, SME lending. The bank has received top notch ratings from agencies like Crisil and ICRA. This small sized bank has about 4,700 employees serving over 14 lakh customers through its wide network of 477 banking outlets in 12 states and union territories of the country. It has key presence in Maharashtra, Tamil Nadu, Odisha and Karnataka, with 80% of its outlets residing in the quadruple of these states. Suryoday SFB generated Rs 854 crore revenue in FY20 compared with Rs 599.25 crore in FY19 and clocked profit after tax (PAT) of Rs 110 crore in FY20 compared to Rs 86.6 crore in the previous year. However, gross NPA surged to 2.79 per cent from 1.81% during this period. The bank's net worth as on March 31, 2020 stood at Rs 1,066 crore, up 21 per cent from the year-ago period. The company had a net worth of Rs 880 crore last year. Deposits have gone up from Rs 1,593 crore in FY19 to Rs 2,848 crore in FY20. This bank received a nod from SEBI to raise primary funds in the beginning of 2021, but the issue is still awaited. Suryoday Small Finance Bank unlisted share price = 330 per share <strong>4. Studds Accessories IPO</strong> Studds Accessories is an exemplary story of rags to riches. Starting its journey in 1972 by manufacturing a helmet in a garage, the company now produces about 70 lakh helmets every year. It has grown as the global leader in two wheeler helmet manufacturers, with almost one-third share of the organized two-wheeler helmet market. Faridabad headquartered Studds Accessories holds the bragging rights for the only laboratory in the country which is certified by European Safety Agency, and Safety – They use one of the best technologies in the world to produce certified products. The company boasts a presence in over three dozen nations of the world. It has a quadruple of business verticals, including helmets for two wheelers, motorcycle accessories, face shields and bicycle helmets. The pandemic hit life has given a strong push to face shield business and studds has led the way in it. Likewise, focus on healthy lifestyle has raised demand for bicycle helmets multifold in metro and tier-I cities. Studds posted Rs 436.94 crore revenue for FY20 against Rs 397.25 crore reported for FY19. PAT surged to Rs 74.59 crore in FY20 from Rs 40.48 in the previous year. EPS zoomed to 37 from 20.58. The company has a healthy balance sheet, where debt-to-equity ratio for fiscal 2019-20 stood at 0.12 times, return on equity (ROE) at 34 per cent and return on capital employed at 40 per cent. Studds unlisted share price = 1300 per share <strong>5. National Stock Exchange (NSE) IPO</strong> NSE is the leading stock exchange of the country. Incorporated in 1992, NSE was elevated to the status of stock exchange by Sebi in 1994 and commenced operation in the same year. NSE owns a number of subsidiaries. According to the Futures Industry Association (FIA), NSE emerged the world’s largest derivatives exchange for the second consecutive year in 2020 in terms of number of contracts traded. The bourse has been ranked fourth in the world in terms of the number of cash trades by the World Federation of Exchanges (WFE) for Calendar 2020. NSE has a fully-integrated business model comprising our exchange listings, trading services, clearing and settlement services, indices, market data feeds, technology solutions, and financial education offerings. Life Insurance Corporation of India (LIC) is the largest shareholder of NSE with a 12.51% stake, followed by State Bank of India with 4.42% holding. However, owning a slice of India's largest stock exchange can be a time-consuming task with a lot of paperwork required due to regulatory restrictions. In FY 2019-20, NSE clocked Rs 1,885 crore PAT on a Rs 3,896 crore revenue, with a net profit margin (NPM) of 48.38 per cent. In H1 of FY21, NSE managed Rs 1,383 crore PAT on a Rs 2,384 crore revenue and with a NPM of 58.01 per cent. NSE Unlisted share price = 1850 per share with 2000 minimum lot size. <strong>6. HDB Financial Services IPO</strong> HDB Financial Services is a non-banking financial (NFBC) arm of the renowned HDFC group. It is one of the industry leaders, serving both retail and commercial clients. The financial firm swanks over the peak accreditation by Care Ratings and Crisil for its long term and short term bonds. With the strong parentage of HDFC group, one of the prime conglomerates of the country, HDB financial Services has a well-established business of loans, fee-based products and BPO services with a strong capital base. It is active in segments like gold loan, consumer durable loan, Auto loans, personal loans and loan against mutual funds. The board of the company is chaired by Mr. Aditya Puri, a marquee name in industry and Mr. Ramesh G is the Managing Director and Chief Executive officer of the company. HDFC Banks holds over 95.3% stake of the company. In H1 FY21, the NBFC clocked revenue of Rs. 5,371 crore, with a PAT of mere Rs. 26 crore, leading to a steep fall in EPS to 0.33. The asset under management (AUM) stood at Rs. 57,528 crore for the . However, it generated revenue of Rs. 10,756.5 crore in FY20 with a PAT of Rs. 1,0756.5 crore and EPS of 12.78 In FY19-20, the loan disbursements were Rs. 29,853 crores. As of March 31, 2020, the outstanding borrowings of the Company amounted to 47,093.93 crores which they sourced from public sector banks, private sector banks, mutual funds, insurance companies and other financial institutions. HDB Financials Unlisted Share Price = 975 per share
<p>The Indian Premier League (IPL) is gearing up for its 14th edition and the unlisted shares of Chennai Super Kings (CSK) are buzzing again. CSK is Tamil Nadu based IPL franchise with its home base at M.A. Chidambaram Stadium, Chennai. Despite a forgettable season in 2020, CSK commands a brand value of about $60 million (435 crore INR) even in the Covid-19 hit year, as per the Brandirectory report. <br /><br />The team has claimed the title thrice during its 11 tournament appearances. After serving a two-year suspension for the alleged involvement of the owners in a betting case, the Chennai based franchise kicked off again in 2018 and won the title in the comeback season.</p> <!--more--> <p><strong>Demerger from India Cements</strong> <br /><br />In September 2014, The India Cements Ltd. approved demerger of Chennai Supers into a wholly-owned subsidiary by transferring its net assets at cost. Effective from 1 January 2015, about 94,000 shareholders of India Cements were allotted shares of Chennai Super Kings in 1:1 ratio, with a face value of Rs. 0.10. However, the proven multibagger of the unlisted space has never turned back since its comeback. <br /><br />Life Insurance Corporation of India, Radhakishan Damani and Reliance Capital Trustee are amongst the key stakeholders in the company. IPL is the most viewed cricket tournament. Despite empty stadiums in recent edition held in the United Arab Emirates, the advertisement revenue and viewership has gone off the roof. According to TAM AdEx, IPL-13 had 115 advertisers and 249 brands, a jump of seven percent and three percent on a year-on-year basis. <br /><br />Top E-commerce players contributed to 29 percent of advertisement volume. Even digital streaming is gaining momentum as Hotstar and Jio makes their way. Markets experts believe that revenue from advertisement, promotion and sponsorship is likely to increase from the upcoming edition as the economy is swiftly switching on to the recovery mode. Also, the valuation of franchise will undergo a hefty boost when the franchise will renew their contracts after the 15th edition of the multi-franchise tournament. <br /><br /><strong>Financial Health<br /><br /></strong> In FY 2019-20, CSK clocked revenue of Rs. 356 crore and Profit-after-Tax (PAT) of Rs. 50 crore, compared to Revenue of Rs. 417.83 and PAT of Rs. 111.2 in the fiscal year ago. EBITDA margins and Profit margins shrank to 21% and 14% in the year ended on March 31, 2020. The figure stood at 39 per cent and 27 per cent respectively. <br /><br />Debt on CSK has remained constant since FY18 at Rs. 65 crore. However, net worth of the company has been constantly increasing, leading to reduction in Debt to Equity (D/E) ratio. The IPL team had a net worth of Rs. 175.85 crore and D/E ratio of 0.36. The company has not announced the Financials for FY 2020-21. <br /><br /><strong>Plans for the future</strong> <br /><br />It is highly anticipated that next edition of IPL will be a full house, spectator studded event in India. Thus, the gate money will not be wiped out, unlike the previous edition. Also, the team will have more time to strike more deals with sponsors to accelerate income. However, the franchise may have to pay higher bills for frequent travels, logistics and accommodation in different cities. Also, it has to share some revenue with BCCI and IPL authority as well. According to a report from Insidesport, Chennai Super Kings has roped in automobile manufacturer Skoda as their principal sponsor. The Czech car maker will pay a whopping Rs 75 crore ($10.2 million) for a three year deal to replace the Muthoot Group, who was paying Rs 65 crore ($8.9 million). However, the deal has not been announced officially. The 2021 edition of IPL is likely to be the last year where fans can see Mahendra Singh Dhoni, the flag bearer of legacy of the franchise since inception. <br /><br />Retired from international cricket, it might be the last event when Dhoni, who will turn 40 this year, can be seen running on the 22-yards strip. The franchise would be keen on cashing on the same. CSK would be eyeing Steve Smith, former Australian Skipper, to strengthen middle order and lead the franchise, if Dhoni hangs his boots. Smith, a mercurial figure in cricket, may not fit in predecessors' shoes but the team has to go on. The mini auction will be held on 18 February 2021. <br /><br /><strong>The way ahead?<br /><br /></strong> IPL is expected to be a larger than life event in coming times. The BCCI and IPL governing council is pushing hard to add another team in the league. It has already been approved in the Annual General Meeting of IPL. If the existing plans are materialized, the number of matches are likely to increase, leading to more gate money and more scope for revenue from broadcasters. However, the teams are expected to spend more on the players in coming seasons. With more team bidding for the player going under the auction hammer, the purses are likely to swell in next mega player sale. It is likely that Vivo will pull out as title sponsor for this domestic sports fiesta. However, BCCI will board a big name soon to headline the event. A combination of sponsorship and media rights ensures that franchise will receive a hefty amount in coming years from IPL events.</p>
<p>National Stock Exchange, the most sought unlisted share on 05.02.2021 has given its 3rd quarter results for FY20-21. A copy of the results is available with UnlistedZone. On examination, the results are outstanding.</p> <!--more--> <p><strong>Key Highlights</strong> <br /><br />1. NSE has shown a robust revenue growth of 46% YoY for the first 9MFY21. It has clocked revenue of 4237 Crores in the first 9MFY21 as compared to 2886 Crores in the same period last year. <br /><br />2. Expenses are up by just 15% in the first 9MFY21 as compared to last year in the same period. <br /><br />3. NSE has clocked a PBT of 3100 Crores in the first 9MFY21 as compared to 1967 Crores last year. <br /><br />4. In the 9MFY21 quarter, the NSE has clocked an EPS of 64. <br /><br />5. Trading services during the first 9MFY21 saw tremendous growth as a lot of retail investors participated in the market. <br /><br /><strong>Segment Results (in Crores)</strong></p> <div class="table-overflow-init"> <table width="100"> <tbody> <tr> <td style="width: 29.7189%;" width="199">Revenue Segment</td> <td style="width: 30.9237%;" width="100">9MFY21</td> <td style="width: 35.3414%;" width="100">9MFY20</td> </tr> <tr> <td style="width: 29.7189%;">Trading Services</td> <td style="width: 30.9237%;">3226</td> <td style="width: 35.3414%;">1996</td> </tr> <tr> <td style="width: 29.7189%;">Clearing Services</td> <td style="width: 30.9237%;">351</td> <td style="width: 35.3414%;">261</td> </tr> <tr> <td style="width: 29.7189%;">Data feed Services</td> <td style="width: 30.9237%;">92</td> <td style="width: 35.3414%;">77</td> </tr> <tr> <td style="width: 29.7189%;">Index Licensing Services</td> <td style="width: 30.9237%;">107</td> <td style="width: 35.3414%;">79</td> </tr> <tr> <td style="width: 29.7189%;">Total</td> <td style="width: 30.9237%;">3776</td> <td style="width: 35.3414%;">2413</td> </tr> </tbody> </table> </div> <p><strong><br />Covid-19 Impact</strong> <br /><br />The Coronavirus (COVID-19) outbreak is an unprecedented global situation, declared as a ‘pandemic’ by the World Health Organisation. Based on the Group’s current assessment, the impact of COVID-19 on its operations and the resultant financial performance except for its education and E-learning business is not likely to be significant. <br /><br /><strong>Valuation</strong> <br /><br />If we annualize the 9MFY21 results , NSE can easily fetch an EPS of 80 this year. Currently, it is trading at 1850 in the unlisted market. Accordingly, the P/E based on FY21 earning would come around 23. In the listed segment, BSE currently trading at P/E of 23. With NSE almost 6x more trading volume than BSE, it can easily command a P/E of 30 for fair value. If we give P/E of 30 to NSE, the fair value comes out to be ~2400. <br /><br /><a href="https://unlistedzone.com/storage/knowledge-logo/NSEIL_Conso_Dec20.pdf">Results Link.</a></p>
TMB Bank, the only unlisted bank available in market, has come up with an excellent 3QFY21 results. Tamilnad Mercantile Bank (TMB) has reported a 96 per cent growth profit of Rs 180.81 crore during the quarter ended December 2020 from Rs 92.42 crore, a year ago.<!--more--> <strong>Financials Highlights of Q3FY21</strong> 1. TMB bank had total loan book of 65000 Crores as on 31.03.2020, which has increased to 68000 Crores as on 31.12.2020. The management is hoping to touch this to 72000 Crores by the end of this fiscal. 2. NII(Net-Interest Income) of the TMB bank has touched Rs 428.73 crore in Q3FY21 as compared to Rs 338.72 crore in 3QFY20. 3. Gross-NPA has reduced from 5.16% to 3.24% this quarter and Net-NPA of the bank has reduced from 2.3% last year to 0.92% in this quarter. Excellent reduction of the NPAs. 4. PAT has increased to Rs 180 crore during the quarter ended December 2020 from Rs 92.42 crore, a year ago. K V Rama Moorthy, managing director, CEO, TMB attributed the growth to high net interest income (NII), lower provision and increase in operating profit. Moreover, he has said that TMB is giving continued thrust on advances to priority sectors like agriculture, micro, small and medium enterprises and housing, constituting 76.57 per cent of its adjusted net bank credit above the regulatory requirement of 40 per cent. <strong>UnlistedZone View:</strong> TMB bank has shown very good financial numbers in the Q3FY21 with excellent reduction in NPAs. Book value of the TMB as on 31.03.2020 stands at 284 per share. Currently, in the unlisted market the share is available at 500 per share. This valued the company at 1.7x of P/B, which is reasonable as compared to banks in the listed market.
Future Group has approached the National Company Law Tribunal (NCLT) on January 26 in order to seal the $3.4 Bn asset sale to Reliance Retail, the company’s lawyer told the Delhi high court even as Amazon has been trying to block the transactions. The $3.4 Bn Reliance Retail-Future Group deal has been in the balance ever since the US-based tech giant raised a petition in the Singapore International Arbitration Centre (SIAC) last year in October. Amazon owns 49% stake in the promoter-entity of Future Retail called Future Coupons through which it also acquired 3.58% stake in Future Retail.<!--more--> According to the investors’ agreement submitted to the SIAC, Amazon had barred Future Coupons from selling its assets to 15 companies, including Reliance Industries. These 15 companies included local and global firms like Walmart, Alibaba, Softbank, Google, Naspers, eBay, Target, Paytm, Zomato, Swiggy and others. But despite the long legal battle ahead, the Indian regulators such as Competition Commission of India (CCI) and market regulator Securities and Exchange Board of India (SEBI) have given their approval. Future Group CEO Kishore Biyani has claimed that the Reliance deal was a saviour for them, their employees and stakeholders. Whereas Amazon is just trying to leave the group in a lurch even though it owns a minor stake in the company. He added that Future Group reached out to Amazon eight times in the past few months seeking financial help, but no support was provided. As part of the agreement, they could have provided us funds through affiliates or financial institutions by taking over loans from existing lenders but they never did despite the agreement clause and our request,” Biyani said. In response to Future Group continuing to seek approval for the deal despite the SIAC order, Amazon has filed another petition in the Delhi High Court, seeking imprisonment of Biyani along with the company’s other promoters as they violated securities market rules by illegally encumbering group company shares. It has also sought enforcement of the order of SIAC, which temporarily stayed the Reliance-Future deal. Amazon Delhi High Court Ecommerce Reliance <strong>Source: Inc42 </strong>
Barbeque Nation has completed a Pre-IPO placement of ₹1,499.69 million. Under a share subscription agreement dated December 9, 2020 entered into by the Company with Xponentia Opportunities Fund – I (“Xponentia”), Xponentia agreed to subscribe for and has been allotted 1,587,302 Equity Shares for an aggregate consideration of ₹400 million.<!--more--> In addition, under a share subscription agreement dated December 31, 2020 entered into by the Company with Jubilant Foodworks Limited (“Jubilant”), Jubilant agreed to subscribe for and has been allotted 3,650,794 Equity Shares for an aggregate consideration of approximately ₹920 million. Pursuant to the transaction with Xponentia, Devinjit Singh, who is the Founder and Managing Partner of Xponentia Capital Partners, has been appointed as a Non-Executive Director on the Board. As a part of the Pre-IPO placement, certain individuals and employees also subscribed for an aggregate of 713,036 Equity Shares for an aggregate consideration of ₹179.69 million. As a consequence, the Pre-IPO Placement aggregated to ₹1,499.69 million. <a href="https://unlistedzone.com/storage/knowledge-logo/Barbeque-Nation_Hospitality_Limited_-_Addendum_to_the_DRHP.pdf">Offer Document</a>
Reliance Industries on 23.01.2021 has come up with the Q3FY21 numbers update and results are very good. However, we in unlisted market are more concerned about Reliance Retail performance, the favorite share among the investors in the unlisted market. So, let us see how it has performed in the Q3FY21. <strong>Reliance Retail Financial Performance:</strong> Reliance Retail has clocked the net-revenue of Rs.30187 Crores in the Q3FY21 and EBITDA of Rs.3087 Crores. This translates into EBITDA Margins of 9.35%. In this quarter, due to COVID-19, the revenue has come down by 18% as compared to Q3FY20, wherein the company had clocked revenue of Rs.40660 Crores.<!--more--> In Q3FY21, Reliance Retail has clocked an EBITDA margins of 9.3% as compared to 6.80% last year in the same period. You must be wondering, how Reliance Retail has almost doubled the EBITDA margins? This boost in EBITDA margins is due to "Investment income" of Rs 775 Cr, excluding this underlying operating margin are at 7.0%. which is still good. <div class="table-overflow-init"> <table width="100"> <tbody> <tr> <td style="text-align: center;" width="79"><strong>Date</strong></td> <td style="text-align: center;" width="79"><strong>Revenue</strong></td> <td style="text-align: center;" width="79"><strong>EBITDA</strong></td> <td style="text-align: center;" width="84"><strong>OPM</strong></td> <td style="text-align: center;" width="79"><strong>PAT</strong></td> <td style="text-align: center;" width="79"><strong>NPM</strong></td> </tr> <tr> <td style="text-align: center;" colspan="6"><strong>Quarter Ended</strong></td> </tr> <tr> <td style="text-align: center;">31-Dec-19</td> <td style="text-align: center;">40660</td> <td style="text-align: center;">2,736</td> <td style="text-align: center;">6.80%</td> <td style="text-align: center;">1,753</td> <td style="text-align: center;">4%</td> </tr> <tr> <td style="text-align: center;">30-Sept-20</td> <td style="text-align: center;">36566</td> <td style="text-align: center;">2006</td> <td style="text-align: center;">5.5%</td> <td style="text-align: center;">973</td> <td style="text-align: center;">2.73%</td> </tr> <tr> <td style="text-align: center;">31-Dec-20</td> <td style="text-align: center;">33,018</td> <td style="text-align: center;">3,087</td> <td style="text-align: center;">9.35%</td> <td style="text-align: center;">1,830</td> <td style="text-align: center;">5.54%</td> </tr> </tbody> </table> </div> Overall, we can say it is a very good performance considering the kind of slow-down is there in the Indian economy. <strong>Business Performance Highlights:</strong> <strong>a) Consumer Electronics: </strong>Strong growth is seen in consumer electronics business due to festive season and tier-2 and 3 cities leading the way. Due to work from home, schools from home, etc have boosted the sales of Laptops, Tablets, HETVs and Small Appliances categories and same has delivered strong double-digit growth. <strong>b) Fashion & Lifestyle </strong>Apparel and footwear revenues stage shows strong bounce back and growth here also has led by Tier-2 and 3 cities. Fashion and Style online e-commerce website Ajio orders has shown 5X growth YoY. Jewels registers high-double digit growth YoY and doubles sequentially. <strong>c) Grocery</strong> Grocery business continue to grow, however, overall revenue impacted by COVID restrictions, local issues and Market stores transition. Footfall is still not same as pre-covid level, but higher billing per order compensated that. Grocery business has shown robust growth during festive period driven by Staples, FMCG and Indian Sweets. Kirana partnerships extended to 23 cities; 2X more business with growing adoption. <strong>Other Highlights </strong>a) Strong profit delivery despite a challenging operational context. b) Sharp recovery in Fashion & Lifestyle business – getting back to pre-COVID levels. c) Overall revenues dragged down by transfer out of Fuel retailing and one-off factors impacting Grocery. d) Business continues on its path of expansion - store count crosses 12,000 mark. e) Steady progress on building Digital and New Commerce – investing for growth. <strong>COVID-19 Update: </strong>a) In this quarter, 96% stores of Reliance Retail are opened now which was just 85% in the last quarter. This shows that impact of COVID-19 is slowly fading and economy is coming to normal. b) Overall footfall at 75% of Pre-COVID levels, at par with last quarter. c) Fashion & Lifestyle and mall stores still significantly lower. <strong>Store Count of 12000+</strong> <img class="alignnone size-full wp-image-13120" src="https://unlistedzone.com/storage/knowledge-logo/g.jpg" alt="" width="367" height="268" />
Suryoday Small Finance Bank which has already filed DRHP for an IPO has raised 151 Crores by issuing 52,08,226 shares to the following shareholders. 1. SBI Life Insurance Company Limited = 30,84,833 2. Axis Multicap Fund = 17,13,795 3. Axis Equity Hybrid Fund = 3,42,760 4. Kiran Vyapar Limited = 66,838<!--more--> The shares are issued at Rs.291 per share. Suryoday Small Finance Bank's Book value as on 31.03.2020 is 123 per share. So, this deal is done at P/B of 2.36x. Currently, the Suryoday Small Finance Bank is available in the unlisted market at a price of 320 per share. <a href="https://unlistedzone.com/storage/knowledge-logo/SMFL_Notice_of_-EGM.pdf">Notice</a>
ICEX is conducting an Extra -ordinary General Meeting (‘EOGM’) of the shareholders of the Indian Commodity Exchange Limited on Monday, February 15, 2021 at 11.30 a.m. at Indian Commodity Exchange Limited, through Video Conferencing (“VC”)/ Other Audio Visual Means (“OVAM”) , to transact the Special Business, as set out in the notice of the EOGM dated January 18, 2021. Items to be discussed in the AGM. a) Appointment of Mr. Suresh Babu Konakanchi (DIN: 07757710) as a Shareholder Director on the Board of the Exchange. b) Appointment of Ms. Vaishali Vishwas Kale as a Shareholder Director on the Board of the Exchange.<!--more--> <strong>Why new appointments are coming?</strong> Mr. Ajit Kumar Mittal vide his letter dated November 06, 2020 had tendered his resignation letter as the Shareholder Director of the Exchange due to his other pre occupations. And as per SEBI regulations, the recognized stock exchange shall place the names of persons to be appointed as shareholder directors approved by the governing board of the stock exchange before the shareholders for their approval before submitting the same to SEBI for approval. The company has received a nomination letter from M/s Reliance Exchangenext Limited dated January 06, 2021, nominating Mr. Suresh Babu Konakanchi for the office of shareholder director on the Board of the Exchange. The NRC & Board also recommended the name of Ms. Vaishali Vishwas Kale a shareholder, to be appointed as a shareholder director on the Board of the Exchange. <a href="https://unlistedzone.com/storage/knowledge-logo/Notice-of-EOGM_February-15-2021.pdf">Notice</a>
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