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Reliance Industries Limited and Reliance Retail Ventures Limited (“RRVL”) announced today that ADIA, a leading globally-diversified investment institution, will invest ₹ 5512.50 crores into RRVL, a subsidiary of Reliance Industries.<!--more--> This investment values RRVL at a pre-money equity value of ₹ 4.285 lakh crore. ADIA’s investment will translate into a 1.20% equity stake in RRVL on a fully diluted basis. With this investment, RRVL has raised ₹ 37,710 crores from leading global investors including Silver Lake, KKR, General Atlantic, Mubadala, GIC, TPG, and ADIA in less than four weeks. <strong>ADIA</strong> Established in 1976, ADIA is a globally-diversified investment institution that prudently invests funds on behalf of the Government of Abu Dhabi through a strategy focused on long-term value creation. ADIA has invested in private equity since 1989 and has built a significant internal team of specialists with experience across asset products, geographies, and sectors. Through its extensive relationships across the industry, the Private Equities Department invests in private equity and credit products globally, often alongside external partners, and through externally managed primary and secondary funds. Its philosophy is to build long-term, collaborative relationships with its partners and company management teams to maximize value and support the implementation of agreed strategies. <strong>Reliance Retail</strong> Reliance Retail Ventures Limited is a subsidiary of Reliance Industries Limited and holding company of all the retail companies under the RIL Group. RRVL reported a consolidated turnover of ₹ 162,936 crore ($ 21.7 billion) and net profit of ₹ 5,448 crores ($ 726.4 million) for the year ended March 31,2020.
1. TMB Bank is going to conduct the 94th to 97th Annual General Meetings (AGMs), pertaining to years 2015-2016 to 2018-2019, of the members of Tamilnad Mercantile Bank Limited, on Wednesday, 28th October 2020 at 10.00 A.M.,10.30 A.M.,11.00 A.M., and 11.30 A.M.<!--more--> 2. In the light of the outbreak of the Covid-19 pandemic and the proclamation of countrywide lockdown by the Government of India, it was not able to conduct the AGMs (the 94th to 97th) as scheduled on April 9, 2020. 3. The AGM will be conducted online. The members can join the meeting via online only. Corporate members are requested to send a duly certified copy of the Board Resolution authorizing their representative to attend and vote at the Annual General Meeting through VC/OAVM, pursuant to Section 113 of the Companies Act, 2013 at least 48 hours before the meeting at [email protected] or [email protected] before e-voting/ attending AGMs through VC/OAVM. <a href="https://unlistedzone.com/storage/knowledge-logo/AGM-notice-1.pdf">AGM Notice</a>
Suryoday Small Finance Bank has filed the DRHP to initiate the process of IPO. The IPO would be a mix of new shares and OFS vide which existing shareholders selling their shares. Axis Bank, ICICI Securities, IIFL Securities, and SBI Capital Markets are the lead managers for the IPO.<!--more--> <strong>Issue Details</strong> Suryoday Small Finance Bank is coming up with an IPO of up to 20,061,796 equity shares. Out of which the fresh issue is of 11,595,000 equity shares and 8,466,796 are OFS. <strong>Prominent Selling Shareholders</strong> 1. International Finance Corporation is selling 4,387,888 Equity shares. 2. Gaja Capital Fund-II limited is selling 1,615,00 Equity shares. 3. HDFC Holding is selling 7,50,000 Equity shares. 4. IDFC First Bank is selling 2,50,00 Equity shares. 5. DWM International is selling 889,842 Equity shares. 6. American Venture limited is selling 2,00,000 Equity shares. 7. Kotak Mahindra Life Insurance is selling 186,966 Equity shares. 8. Polaris Banyan Holding is selling 1,00,000 Equity shares. 9. Gaja Capital India AIF Trust is selling 85,000 Equity shares. <strong>Recent Private Placement</strong> In May 2020, the bank has done a private placement of 2,390,020 Equity shares at Rs. 260 per share. The shares were allotted to the following shareholders. 1. 1,826,923 Equity Shares were allotted to Gaja Capital Fund II Limited. 2. 96,154 Equity Shares were allotted to Gaja Trustee Company Private Limited (representing Gaja Capital India AIF Trust as a trustee). 3. 93,258 Equity Shares were allotted to Teachers Insurance and Annuity Association of America. 4. 32,431 Equity Shares were allotted to Kiran Vyapar Limited. 5. 192,308 Equity Shares were allotted to Kotak Mahindra Life Insurance Company Limited. 6. 148,946 Equity Shares were allotted to Lok Capital Growth Fund. <strong>Suryoday Small Finance Bank</strong> Started in the year 2009 as a microfinance business has since expanded its operations across 12 states and union territories, as of July 31, 2020. As of July 31, 2020, the customer base is 1.43 million, and the employee base comprised of 3,949 employees. They operate 482 Banking Outlets including 137 Unbanked Rural Centres (“URCs”). As per CRISIL Report, the bank was among the leading SFBs in India in terms of net interest margins, return on assets, yields, and deposit growth and had the lowest cost-to-income ratio among SFBs in India in Fiscal 2020. As of 31.03.2020, the bank has total advances of 3531 Crores, a Deposit of 2848 Crores, and a Net-worth of 1000 Crores. To know more about the bank, please follow the below link https://unlistedzone.com/shares/buy-sell-suryoday-small-micro-finance-bank-limited-unlisted-shares-share-price/ <a href="https://unlistedzone.com/storage/knowledge-logo/1601536170209.pdf">DRHP</a>
Reliance Industries Limited and Reliance Retail Ventures Limited (“RRVL”) announced today that General Atlantic, a leading global growth equity firm, will invest ₹ 3,675 crores into RRVL, a subsidiary of Reliance Industries.<!--more--> This investment values Reliance Retail at a pre-money equity value of ₹ 4.285 lakh crore. General Atlantic’s investment will translate into a 0.84% equity stake in RRVL on a fully diluted basis. This marks the second investment by General Atlantic in a subsidiary of Reliance Industries, following a ₹ 6,598.38 crore investment in Jio Platforms announced earlier this year. <strong>General Atlantic</strong> General Atlantic is a leading global growth equity firm with a 40-year track record of investing in the Technology, Consumer, Financial Services, and Healthcare sectors. As an integrated team operating under a global investment platform across 14 locations, General Atlantic invests behind themes that are driven by innovation and entrepreneurship and supported by long-term secular growth. General Atlantic has a longstanding tradition of backing disruptive entrepreneurs and companies around the world, including Airbnb, Alibaba, Ant Financial, Box, ByteDance, Facebook, Slack, Snapchat, Uber, and other global technology leaders. <strong>Reliance Retail</strong> Reliance Retail Ventures Limited is a subsidiary of Reliance Industries Limited and holding company of all the retail companies under the RIL Group. RRVL reported a consolidated turnover of ₹ 162,936 crore ($ 21.7 billion) and net profit of ₹ 5,448 crores ($ 726.4 million) for the year ended March 31, 2020.
The much-awaited Paytm stockbroking services, under its subsidiary Paytm Money, have been launched in India for all its users. Initially, they were only giving the option of buying and selling mutual funds from the platform but now one can buy stocks, check charts and financials, etc. <!--more-->Last time we have covered this in detail when Paytm Money was looking to launch broking services that how it is going to disrupt the broking industry with the lowest brokerage offer. You can read the same here. https://unlistedzone.com/paytm-joins-the-bandwagon-to-offer-broking-services/ As of now, Paytm has a total of 8 Crores users on its platform. We can imagine the kind of disruption it can do the broking industry if they are able to attract 1-2% of these registered users. As per Paytm Money, initially, they are looking to target 10 Lakh users for its broking services. Paytm Money received an overwhelming response to its early access program and registered over 2.2 lakh investors. Out of these, 65% of users are in the age group of 18 to 30 years which reflects more millennials are building their wealth portfolio. As per Varun Sridhar, CEO — Paytm Money said, “<em>We aim to democratize wealth management services that contribute to the growth of Atmanirbhar Bharat. We believe it’s an opportunity for us to enable millennials and new investors to build their wealth portfolio. Our technology-enabled solutions help make stock investing simple and easy. We will continue to challenge the status quo and build India’s best product. We remain committed to making Paytm Money a comprehensive wealth management platform for every Indian</em>. Paytm Money is basically trying to replicate the model which Zerodha has done in the last 10 years, i.e. Along with simplified investing in stocks, the platform offers ample opportunities to the user to research the markets, explore market movers, create customizable watchlists, and set price alerts for as many as 50 stocks. Also, users may set weekly/monthly SIPs for stocks and automate stocks investing conveniently. Zerodha when launched in 2010 had disrupted the broking industry by use of technology and offering of very low brokerage. In the last 10 years, Zerodha has made a name in discount broking and has compelled other incumbent brokers to reduce their brokerages. Now, Paytm Money is aiming to disrupt the discount broking industry with its even more mouth-watering brokerage offers and use of technology. The next decade would be quite interesting to see how these technology-driven broking companies make a way for themselves and how they make traders and investors feel good about using these products.
The COVID-19 pandemic has created havoc across the world economies and India in the month of June has witnessed -23% growth in the GDP. So, we can imagine the kind of impact it has on almost all the sectors of the economy. However, the pandemic has also created opportunities for some companies which deal in the digital world.<!--more--> For example, these days we are using Paytm services more as compared to cash for buying anything from grocery to medicine, etc. Many state governments are making efforts to use the touchless smart cards in a public transportation system like Bus or Metrorail. In today’s blog, we are discussing one such company called Fino-Paytech which is working with the Maharashtra state government to help them use Smart cards for paying tickets on the bus instead of cash. In this project, Fino-Paytech is supported by CityCash. <strong>About City Cash</strong> CityCash is a start-up company in the fintech industry bringing state-of-the-art technologies and unique business models in the digital payments space with a focus on NFC based card payments. Started as an initiative to make India ‘Less Cash’ and offer digital payments for everyone, CityCash designs, deploys, and operates low cost offline and online payment technologies focused on the underserved space of high volume, low-value payments. In 2018, Fino-Paytech picked up a minority stake in City cash to grow its business in digital payments. <strong>NFC enabled Smart card</strong> Fino’s NFC based smart card will be used in the mass transit system and provide a mean of contactless or tap-and-go payment ticketing. This kind of initiative is required in today’s time to curb the spread of viruses. Fino Paytech has already issued ~30 Lakh NFC-enabled smart cards that will be used in 20k buses in Maharashtra. <strong>UnlistedZone view</strong> We think that going forward all these smart cards will become a norm and once people will become comfortable, they will start using these cards instead of cash. So, the companies which are working in the digital segment will be the ultimate beneficiary in the time to come.
Reliance Industry has been the poster boy of the Indian stock market since the launch of JIO. It is single-handedly driving the NIFTY and SENSEX in the last 6 months. The JIO has already made headlines when it has raised 1.5 Lakh Crores during the time when all the businesses and economies across the world were suffering due to pandemic. <!--more-->Now, it is the turn of Reliance Retail to set the ante for the group. Our two reports link mentioned below have already covered as to how Reliance Retail has raised ~13500 Crores from Silver Lake and KKR. And many more such transactions are in pipeline for the retail stake. https://unlistedzone.com/silver-lake-buys-1-8-stake-in-reliance-retail-at-4-21-lakh-crores-of-valuation/ https://unlistedzone.com/kkr-is-investing-5550-crores-in-reliance-retail-for-1-28-stake-valuing-4-33-lakh-crores-of-valuation/ With all the money in the wallet, Reliance Retail is now going for a shopping spree. Reliance knows the best time to buy the businesses is when they are struggling. At present mostly all the businesses are suffering and available at an attractive valuation. Recently, it has purchased Netmeds for ~600 Crores. https://unlistedzone.com/reliance-retail-acquires-net-med-for-rs-620-crores/ Now there is a buzz in the market that Reliance Retail is purchasing Electronics Mart for Rs. 3000 Crores. <strong>About Electronics Mart</strong> The company was founded by 1st Generation entrepreneur Mr. Pavan when they have opened their 1st electronics retail store at Lakdi Ka Pool-Hyderabad in October 1980 and the brand Bajaj Electronics was established. Today, with over 1 crore customers, 500,000 square feet of retail space, a strong workforce of over 1,200 professionals, over 60 stores, and three decades of legacy - Electronics Mart India (EMI) is truly iconic. Currently, they are South India’s largest and most reliable electronics retailer. Bajaj Electronics – a brand owned by EMI, is a household name when it comes to purchasing electronics. This deals if happens will give Reliance Retail an opportunity to expand its market share in South India as Electronics Mart is an established player in the Telangana and Andhra. All these acquisitions will help Reliance Retail grow in size with 2x speed and will help the company to fight competition with American giants, Amazon, and Walmart.
Last to last week we have published the news that Silver Lake has invested 7500 Crores in Reliance Retail and we have also told at that time that this is just the start and more investors will come and join the bandwagon.<!--more--> https://unlistedzone.com/reliance-retail-plans-to-sell-1-8-stake-to-american-pe-silver-lake/ Now, KKR picks up a 1.28% stake in Reliance Retail business giving them a second paycheque after Silver Lake. The total value of the deal is worth Rs. 5550 Crores. With this deal in the kitty of Reliance Retail, the total money raised now is Rs. 13050 Crores. This money will help Reliance to expand its growth in the retail segment and help the company to fight the growing competition from Amazon and Walmart.
Fino-Paytech has recorded a profit in the last two consecutive quarters i.e. March and June-2020. The Fino-Paytech mainly focuses on rural India and its 80% business comes from this region only. During COVID-19, a lot of migration has happened from metro-cities to rural areas and the government has put money in poor accounts via different schemes. In the June-20 quarter, Fino-Paytech has clocked a profit of 1.9 Crores as compared to a loss of 10 Crores last year. As a result of increased transactions, Fino-Paytech is expected to come up with profitability in FY20-21.<!--more--> <strong>What does Fino-Paytech do?</strong> They have more than 1lakh agents present in rural India and post-April this year, every month they are adding more than 16k agents. We know in rural India mostly bank facilities are not available. And if someone wants to transfer money, then it is very difficult for them. Here, agents of Fino-paytech with handheld devices help rural people to transfer funds and take their commission. Its main services are summarized below. A payments bank offer a plethora of products like payments and remittance services, small savings accounts, but not loans or credit cards, Fino Payments Bank has tied up with ICICI Bank to offer gold loans and it currently does around Rs 150 crore worth gold loans. It also has tie-ups with a few insurance companies to offer their insurance products to customers through its bank. <strong>Transaction Volume</strong> The commission of Fino-Paytech depends upon the worth of the transaction done. As per management, in the first half of FY20-21, they will able to complete transactions worth Rs.60000 Crores up by a whopping 36% as compared to Rs. 44000 Crores in the same period last year. Currently, they have 2.5 Lakhs touchpoints and they are aiming for 10 lakhs by 2023. <strong>Future Plans</strong> Fino-Paytech will be eligible for a Small Finance Bank license next year. At present, it has a payment bank license. The payment bank license does not allow companies to take deposit more than 1 lakh and lending is prohibited. So, once they get into the Small Finance Bank license, they will get the opportunity to lend and that will increase their profitability manifolds. At present, they are doing the lending by engaging with third-party banks. <strong>Investors</strong> ICICI Group has a 20% stake in Fino Paytech, the holding company of the bank, state-owned oil marketing company BPCL 21%, and Blackstone 13.5% stake. For more detail, please visit; https://unlistedzone.com/shares/buy-sell-share-price-fino-paytech-limited-unlisted-shares/
In the recently conducted annual general meeting of Tata Motors, N Chandrasekaran has made an ambitious plan to make Tata Motors a debt-free company by 2023. As of 31.03.2020, the total debt on Tata Motors is ~1.25 Lakh Crores. <!--more-->Now to make company debt-free solely by generating revenue is not possible given the kind of situation we are in terms of economy. So, the exercise to make it debt-free would be a mix of stake sale, cut cost, and grow revenue. In the AGM, it was announced by Tata Motors that they will sell non-core businesses such as Tata Technology and Tata Hitachi Construction Machine to get funds for the Tata Motors' deleverage program. Tata Motors is aggressively talking to the investors to sell the software business and Hitachi joint venture business. As on 31.03.2020, Tata Motors holds a 72.48% stake in Tata Technology. The current valuation of Tata Technology in the unlisted market is around 5700 Crores. In the year 2019-20, Tata Technology has clocked the revenue of 2900 Crores, with a Profit of 312 Crores.
After a successful money-raising exercise done by Reliance Industries for the JIO business lately, the focus is now shifting to Retail business. The lucrative retail business with a huge population in India is attracting big global investors.<!--more--> Reliance Retail with the recent acquisition of Future group has strengthened its position in the retail business. With this acquisition, Reliance Retail has ~12500 retail stores across India, and it is the only retail business in India with revenue of more than 1 lakh crores. https://unlistedzone.com/reliance-retail-acquires-future-group-for-24713-crores/ Last week, Silver Lake has picked a 1.8% stake in the Retail business at 4.21 Lakh Crores of valuation by pumping nearly 7000 Crores. Now the buzz is there in the market that Carlyle Group is considering an investment in retail space in India, both offline and online. https://unlistedzone.com/silver-lake-buys-1-8-stake-in-reliance-retail-at-4-21-lakh-crores-of-valuation/ Carlyle Group is looking to invest somewhere around 7k-14K Crores to buy a stake in the Retail business of Reliance. If the deal is finalized, this would be the first investment by Carlyle Group in retail space in India. Earlier Carlyle Group has invested in SBI Life, SBI Card, DFC, India Infoline, Delhivery, and PNB Housing Finance to name a few. The other investors who are in pipeline for buying pie in the retail business of Reliance are KKR, Mubadala, and Abu Dhabi Investment. <strong>Carlyle Group?</strong> The Carlyle Group is an American multinational private equity, alternative asset management, and financial services corporation. It specializes in corporate private equity, real assets, and private credit. It would be interesting to see at what valuation the Carlyle will pick stake. In the case of JIO, we have seen how valuation soared from 4 lakh crores to 5 lakh crores with the entry of new investors from time to time. This is the evolving news, for more updates on this news stay tuned to UnlistedZone.
<p>“VI” the newly branded Vodafone-Idea logo is all set to reinvent itself to make its mark among the customers, which it had lost post-JIO entry in Telecom. The company has signed an agreement as co-sponsor with Dream-11 for IPL this year. Though, the company has not disclosed the amount it is paying for the co-sponsorship.</p> <!--more--> <p>Vodafone when 2 years back merged with Idea had 45 Crores mobile users which came down to mere ~25 Crores a few months back. The falling user base and AGR dues have impacted the revenue of the company badly. Now with relief from AGR dues and news floating around the possible funding from Verizon and Amazon has given the hope to gain the lost traction among customers. <br /><br />Now, working with IPL as co-sponsor, the “VI” is hoping to increase brand awareness and to increase confidence among users. Lately, due to bad news falling in the market for “VI”, the users were losing faith even to the extent that whether the company will survive or not. We at UnlistedZone believe that Indian Telecom sectors need healthy competition, good network, good data speed, etc. and to achieve that perennial existence of Vodafone is required.</p>
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