Blogs, insights, guides and videos on India's unlisted market — all in one place.
Buying gold is always a cumbersome task given the reason that finding pure gold is difficult, a lot of paperwork to buy gold, and later on, selling is also difficult. So, to remove all these burdens, Paytm from its app has given the option of buying gold digitally. <!--more-->And you will be surprised to know that Paytm has sold close to 5000 Kg of gold from its application in the last 6 months. If we take the average price of 45000 per share, the worth of transactions in the last 6 months is ~2200 Crores. This shows that Indians are very much inclined towards investment in gold and if they get a simple platform like Paytm to invest in gold by sitting at the comfort of home, then there is no stopping for gold. By looking at the increase of transactions, Paytm has also increased the transaction limit of digital gold to Rs 1 crore and expects the current momentum of high growth to continue. Diwali and Dhanteras are considered quite auspicious in India to buy gold and that is the added reason for the spurt in the sale of gold via the Paytm app. Paytm Money CEO Varun Sridhar said, “As the pandemic continues, Paytm's digital gold has generated massive interest from Indians who want to continue buying gold for the purpose of investment, personal use, and gifting during these uncertain times, but have been restricted from going out to buy gold or meet friends and family.” <strong>How to buy gold via Paytm App?</strong> <iframe src="https://www.youtube.com/embed/SKXjbwjOCZk" width="677" height="381" frameborder="0" allowfullscreen="allowfullscreen"></iframe>
Paytm is trying to put financial inclusion deeper in our country by enabling collateral-free loans of up to Rs. 500,000 at a low-interest rate and unique daily EMI product customized for micro-merchants.<!--more--> As per Bhavesh Gupta, CEO — Paytm Lending said, “With our collateral-free instant loans, we are trying to help Kirana stores & other small business owners who have been left behind by the traditional banking sector and do not have easy access to loans and credit. Going forward, we will especially focus on EDC merchants and provide higher loan amounts based on their EDC transactions" <strong>How do they give loans instantly?</strong> 1. Their algorithm determines the credit-worthiness of the merchant based on his daily transactions and arrives at a pre-qualified loan offering. 2. They have digitized the entire process starting from the loan application, approval to disbursal with no additional documents required in partnership with NBFCs and banks. 3. Loan repayment is primarily collected from the merchant’s daily settlement with Paytm and there are no prepayment charges on these loans. In the last financial year, Paytm has processed loans worth Rs. 550 crore benefiting over a lakh merchant partner.
The board of Manjushree Technopack Limited has announced that below are the proposals to be passed by the Members through electronic voting: (a) Issue of Compulsorily Convertible Debentures on a preferential basis.<!--more--> Manjushree Technopack is doing preferential allotment on a private placement basis, up to 40,13,002 Compulsorily Convertible Debentures, at par, with a face value of Rs.100 each(“CCDs”), to AI Lenarco Midco Limited (”Investor”), for an aggregate amount of Rs. 40,13,00,200/ being convertible into such number of equity shares of the Company (“Conversion Shares”), as derived on the basis of the conversion price of Rs.1637.96. AI Lenarco Midco Limited is the largest shareholder with a 77% stake in the company. (b) Amendment to the Articles of Association of the Company. (c) Appointment of Mr. Sanjay Digambar Kapote as Managing Director and CEO. <strong>E-Voting</strong> The e-voting period shall commence on Monday, 9th November 2020 at 9:00 a.m. (IST) and end on Tuesday, 8th December 2020 at 5:00 p.m. (IST). The e-voting will be blocked by CDSL thereafter. During this period, Members of the Company holding shares either in physical or dematerialized form, as on the cut-off date, i.e. Friday, 30th October 2020, may cast their vote electronically. <a href="https://unlistedzone.com/storage/knowledge-logo/Postal-Ballot-Notice-23-10-2020.pdf">Postal Ballot Notice</a>
Paytm has announced its partnership with India's biggest credit card player i.e. SBI Cards to provide the credit cards through its Paytm app. The card will be available in two variants, Paytm SBI Card and Paytm SBI Card SELECT, these have been launched on the Visa platform. Paytm SBI Card variants completely reimagine the credit card experience by enabling smart app features and providing superior rewards & benefits for its users.<!--more--> <strong>What are the features available on these cards?</strong> 1. Instant one-touch services such as blocking/ unblocking the card for online transactions. 2. Blocking the card in case of loss. 3. Issuance of a duplicate card. 4. Viewing outstanding credit-limit. 5. Users can register for the card from the app in less than 1 minute. <strong>Offers available on paying through cards.</strong> 1. Cardholders will receive a cashback of 5% and 3% on Paytm SBI Card SELECT and Paytm SBI Card respectively, upon booking movie tickets and travel tickets on the Paytm app as well as on purchasing items from Paytm Mall. 2. For other spending on the Paytm app using the Paytm SBI Card variants, cardholders will receive 2% cashback while 1% cashback is offered on spends elsewhere. <strong>Charges for these Cards?</strong> 1. For Paytm SBI Card Select one has to pay an annual fee of 1499. On that, you will get the benefits such as Complimentary Paytm First Membership worth INR 750, Annual Fee reversal on achieving ₹200,000 Annual Retail spend, Spends based Cashback Benefit Structure, 1% Fuel Surcharge Waiver, Complimentary Cyber Fraud Insurance cover of INR200,000, Complimentary Priority Pass worth US $99 for first two years of cardholder membership, Complimentary 4 Domestic Lounge visits, etc. 2. For a Paytm SBI card one has to pay an annual fee of 499. On that, you will get benefits such as Complimentary Paytm First Membership worth ₹750 on the first settled transaction, Spends based Cashback Benefit Structure, 1% Fuel Surcharge waiver, Complimentary Cyber Fraud Insurance cover of INR 1,00,000, and Complimentary Paytm First Membership E-Voucher on renewal on achieving Annual Retail spend of INR 1,00,000. <strong>Frequently Asked Questions?</strong> 1. How can I apply for a Paytm SBI credit card? The customers can apply for the Paytm SBI Card and Paytm SBI Card SELECT online through their Paytm app. Both the cards can be availed at the annual fee of INR 499 and INR 1499 respectively. Customers will also have an option to choose from two-color variants on the Paytm App. Due to high demand, they are currently offering these credit cards to select Paytm users only. To apply - Log in to your Paytm app - Select Show More and tap on the Loans and Credit Card section - Users can also search ‘Credit Card’ in the Paytm Search bar. 2. What KYC documents are required to apply for a Paytm SBI Credit Card? Once the application has been submitted, the users can book the KYC verification appointment on the app itself as per their convenience and require the following documents for submission: 1. Photo ID proof copy 2. Address proof copy (Either current address or permanent address) 3. Passport size photograph (Please note that in case of any discrepancy, additional documents might be required.) 3. When can I get the card? Post the KYC document verification, the users will be notified about their card approval/ rejection status in the next 1–2 business days. Once approved, they will receive the card in the next 5–7 business days. 4. What is the minimum age to apply for the card? 21 years 5. Is there is a minimum income requirement to apply for the card? There is no minimum income requirement. Both salaried & self-employed users can apply for these cards. However, due to high traffic, the applications have been restricted to a limited audience.
Reliance Industries the parent company of Reliance Retail has yesterday announced that the Public Investment Fund of Saudi Arabia is going to invest Rs.9555 Crores in Reliance Retail for 2.01% stakes. With this new investment, Reliance Retail is currently valued at 4.58 Lakh Crores.<!--more--> This investment will further strengthen PIF’s presence in India’s dynamic economy and promising retail market segment. The investment in RRVL follows PIF’s earlier acquisition of a 2.32% stake in Jio Platforms, the digital services subsidiary of Reliance Industries. PIF manages a $350 billion fund and has already invested in the companies such as Tesla, Uber, Disney, Softbank Vision Fund, Blackstone etc. With this latest investment of PIF, Reliance Retail to date has raised ~47000 Crores and JIO has raised ~1.5 Lakh Crores. So, in total Reliance Industries has raised ~2 Lakh Crores of FDI. <strong>How big this FDI is?</strong> In 2019-20, India has received a ~50 Billion dollar or ~3.5 Lakh Crores of FDI. So, Reliance Industries alone in the first 8 months of FY20-21 has got 58% of last year's FDI. More FDI means more dollar will come to India and when we sell dollar in the currency market to convert into rupee, the demand for rupee appreciates. This will strengthen the rupee. This is good for imports but bad for exports. If you see the chart of dollar and rupee, you will find that this year, the dollar has made a peak of 77.38 in April and now at 74.36. So It has declined ~4% in the last 8 months. Thanks to the mota Bhai FDI raising spree which is helping the economy. <a href="https://unlistedzone.com/storage/knowledge-logo/b6cabaf4-675e-43f5-bee1-53dda6c67d8e.pdf">link</a>
Yesterday, Reliance Industries has published Q2FY21 numbers to the exchanges. Being in an unlisted market, we are more interested in the performance of Reliance Retail, the darling stock of investors which has already given 3x return in the last 1.5 year.<!--more--> <strong>Reliance Retail Quarterly Performance</strong> Reliance Retail in Q2FY21 clocked revenue of 36566 Crores, degrowth of just 1% in the same quarter last year despite business disruption due to COVID-19. However, if we compare Q2FY21 to Q1FY21, there is a growth of 30% which shows that Reliance Retail business is almost back at the Pre-COVID level. Reliance Retail EBITDA is down by 14% YoY and stands at 1986 Crores. The EBITDA margins in Q2FY21 stood at 5.4% which is down from the 6.3% level in the same quarter last year. In Q2FY21, Reliance Retail has added 232 new stores. 54 in North, 84 in South, 40 in East, and 54 in the West. <div class="table-overflow-init"> <table width="100"> <tbody> <tr> <td width="174">Particulars (Cr)</td> <td width="173">Q2FY21</td> <td width="171">Q1FY21</td> <td width="96">Q2FY20</td> </tr> <tr> <td>Revenue</td> <td>36566</td> <td>31620</td> <td>36792</td> </tr> <tr> <td>EBITDA</td> <td>1986</td> <td>1074</td> <td>2322</td> </tr> <tr> <td>EBITDA Margins</td> <td>5.40%</td> <td>3.80%</td> <td>6.30%</td> </tr> </tbody> </table> </div> <strong>COVID-19 Updates on Business</strong> 1. Store functioning continued to be impacted, but progressively eased during the quarter- 85% stores operational (1Q: 50%), of which half could operate fully. 2. Footfalls steadily recovering, though still lower particularly in fashion & lifestyle and malls- At 75% for the quarter (1Q: 43%), with September at 85% of pre-COVID levels <strong>Fund Raising this quarter</strong> Reliance Retail in the last quarter has raised 37,170 Crores from different investors across the world. The detail is mentioned below. <div class="table-overflow-init"> <table width="100"> <tbody> <tr> <td width="174">Name of the Investor</td> <td width="173">Amount Invested (Cr)</td> <td width="171">% Shares Allotted</td> </tr> <tr> <td>Silver Lake Holdings</td> <td>7500</td> <td>1.64%</td> </tr> <tr> <td>KKR</td> <td>5550</td> <td>1.21%</td> </tr> <tr> <td>General Atlantic</td> <td>3675</td> <td>0.80%</td> </tr> <tr> <td width="174">Silver Lake Holdings & Co-Investors</td> <td>1875</td> <td>0.41%</td> </tr> <tr> <td>Mubadala</td> <td>6247.5</td> <td>1.36%</td> </tr> <tr> <td>GIC</td> <td>5512.5</td> <td>1.20%</td> </tr> <tr> <td>TPG</td> <td>1837.5</td> <td>0.40%</td> </tr> <tr> <td>ADIA</td> <td>5512.5</td> <td>1.20%</td> </tr> <tr> <td>Total</td> <td>37710</td> <td>8.20%</td> </tr> </tbody> </table> </div> <strong>Reliance Retail Valuation</strong> Reliance Retail has given 8.22% stakes to investors for Rs. 37710 Crores. This means, 1% stake valued at = 4587 Crores 100% stake valued at = 4,58,759 Crores. With total outstanding shares of 498 Crores as of 31.03.2020, the per-share value comes out at 921 per share. <a href="https://unlistedzone.com/storage/knowledge-logo/Reliance-Retail.pdf">Reliance Retail Q2FY21 Presentation</a>
<strong>Nazara Technology</strong> Nazara Tech one of the leading mobile games company headquartered in Mumbai, which is engaged in the acquisition of, value addition to and distribution, of mobile games across emerging markets such as India, Middle East, Africa, South East Asia, and Latin America, yesterday reveals its IPO Plan.<!--more--> As per management, Nazara Technologies Limited has, at its meeting held on September 16, 2020, approved the proposal to undertake an initial public offering of the equity shares of Rs. 4 each of the Company through the book-building process and list the Equity Shares on one or more recognized stock exchanges in India (“IPO”). The proposed IPO may include a fresh issue and will include an offer for sale of Equity Shares (“Offer for Sale”) by existing shareholders of the Company. <strong>Lava International</strong> Lava International a leading mobile company in India is also looking for an IPO post-budget next year. The company which is the biggest beneficiary of the recently launched PLI scheme which encourages local manufacturing is looking to tap the opportunity of the IPO market by raising close to 1400 Crores to reduce debt and to use money in expanding operations. We have seen how the Dixon Technology share has reached a new height from the day the PLI scheme is announced. So lava is also a good opportunity for investors.
<p>HDB Financial Services, a subsidiary of the esteemed HDFC Group, recently released its half-yearly results for FY21 on October 17, 2020, as published in the National Stock Exchange. These results, crucial for understanding the company's financial trajectory, have been a topic of interest in the financial sector, especially when compared to the performance of HDFC Bank.</p> <p>The HDB Financial results for the first half of FY21 have shown a noticeable stagnation in revenue growth. The company reported a revenue of ₹5,371 Crores, a marginal increase from ₹5,205 Crores in the same period last year. However, the more striking aspect of the HDB Financial results is the significant decline in Profit After Tax (PAT), which plummeted to just ₹26 Crores from ₹427 Crores in the previous year. This drastic 93% decrease can be largely attributed to a substantial rise in loan impairment costs, which amounted to ₹937 Crores in the first half of FY21.</p> <p>In addition to these financial challenges, HDB Financial Services has reportedly undertaken workforce adjustments, as indicated by the reduction in employee benefit expenses from ₹1,536 Crores last year to ₹1,476 Crores. This move, widely covered in various newspapers, reflects the company's efforts to streamline its operations in response to the prevailing economic conditions.</p> <p>As of September 30, 2020, HDB Financial Services' total loan book stood at ₹57,528 Crores. An important metric to note is the book value per share, which was recorded at ₹101 as of the same date.</p> <p>Key financial parameters from the HDB Financial results include a Debt-to-Equity ratio (D/E) of 6.6, indicating a relatively high leverage. Despite this, the company's financial instruments, including bank facilities, non-convertible debentures, subordinated bond issues, and perpetual bond issues, maintain an AAA/Stable rating from both ICRA and CRISIL. This rating signifies a strong credit profile and investor confidence in the company's financial stability.</p> <p>Moreover, HDB Financial Services has been consistent in servicing its debt obligations. The company maintains a healthy capital adequacy ratio and possesses adequate capital and financial resources for its operations, as evidenced in its 6MFY21 results. Despite the challenging times marked by the pandemic, HDB Financials remains a key player in the NBFC sector, adapting and navigating through these unprecedented circumstances.</p>
Hero-Fincorp, the NBFC of the Hero Group has yesterday published its Half-yearly results to the National Stock Exchange. It is India's most trusted brand that offers 2-wheeler loans, Loan Against Property, corporate & SME loans, and Home loans.<!--more--> <strong>Results Analysis:</strong> Hero-FinCorp has shown revenue of 1960 Crores in the first half of FY21 as compared to 1683 Crores in the same period last year. This shows a growth of 17%. The PAT saw a dip of 42 Crores in the first half of FY21 mainly due to higher impairment allowance on loans. This figure has increased from 223 Crores last year to 600 Crores this year. This is mainly occurring due to problems in the sector of the economies to which Hero-FinCorp has given loans. The company has clocked an EPS of Rs.10 in the first half of FY21. The book value as of 30.09.2020 stands at 380 per share. The total loan book as of 30.09.2020 stands at 21266 Crores. And the company has cash of 2307 Crores on its book. Expenses such as Employee Benefits and Other expenses have come down in the first half of FY21 as compared to last year may be due to retrenchment of employees and cost-saving initiative done by many companies to counter the impact of COVID-19. <strong>Key Parameters:</strong> 1. D/E = 4.26 slightly better than as it was 4.50 in the month of March 2020. 2. Secured NCDs, Unsecured sub-ordinated Tier-II non-convertible debentures, and Long-term facilities of the Hero-FinCorp have AA+/Stable rating from ICRA and CRISIL. This shows the company has no problem in terms of liquidity and solvency parameters are concerned. <strong>UnlistedZone View:</strong> The overall results are good. The company despite the problem in the economy due to COVID-19 has able to grow its revenue by 16%, which is a good sign. The profitability dips due to loan impairment to be done to incorporate the impact of loss in business due to bad loans. However, we are in the view that the exact picture of NPAs and the impact of COVID-19 would be visible in the next quarter results as NBFCs are not showing loans that might become NPA as up to 31.08.2020 there was a moratorium period. After 31.08.2020, if the borrowers do not give interest or principal due to loss in their business, then these will become SMA1, SMA2, and then NPAs. So all these NPAs will be shown in next quarter's results. <a href="https://unlistedzone.com/storage/knowledge-logo/HERO-FINCORP-RESULTS.pdf">6MFY21 Results</a>
Credit cards have always remained a status symbol for rich and affluent people and credit cards are always considered a risky affair to use if you don't pay the dues on time, as it attracts very high-interest rates going as high as 42%. Moreover, getting a credit card is also not so easy considering it requires a lot of KYC documents and a good source of income.<!--more--> Paytm is looking to digitize this credit card market by enabling its users to avail of credit card facility with minimum documentation. For this, Paytm is looking to offer a co-branded card by partnering with various credit card companies. They are designing an innovative digital experience on the app allowing users to manage their overall spending and have full control over card usage. Paytm is targeting to issue 20 lakh cards in the next 18-24 months. To gives this into the perspective of opportunity size Paytm is talking about, in India at present we have only 5 Crores credit cards. So, if Paytm with its digital initiative is able to provide credit cards to 20 Lakh users, it will completely change the face of the Credit card market in India. <strong>What are the features of the App?</strong> <em>"With this service, they will give complete control to cardholders to manage their transactions in real-time. It will be equipped with instant one-touch services such as change of the security pin number, updating the address, blocking the card in case of loss or fraud prevention, issuance of a duplicate card, and viewing outstanding credit-limit. It will also have options to safeguard users against fraud by switching off the card for contactless payments or international transactions when not required. The credit card will provide insurance protection against fraudulent transactions to protect users’ money"</em> We at UnlistedZone are in the view that the recent business opportunities Paytm is targeting in the financial world will help the company to reach new heights in the future. <strong>Businesses of Paytm</strong> 1. It has a license for Payment bank. The Paytm payment bank earns interest on deposit available with it. So more the deposit, more will be the profitability of Paytm. Paytm Payment bank is the only payment bank in India which is profitable at the operational level for the last 2 years. 2. Recently, it has acquired general insurance company Raheja QBE to launch Insurance services to its users. This business will come into the picture next year once they get the IRDA Approval. https://unlistedzone.com/paytm-is-acquiring-general-insurance-business-from-raheja-qbe/ 3. Recently, Paytm has started its broking services and looking to tap the huge opportunity available in the stock market. https://unlistedzone.com/paytm-money-starts-full-fledged-broking-services/ 4. They have Paytm mall an e-commerce company to buy Mobile Phones, Electronics, Home Decor, Bags, Shoes & Clothing for Men & Women etc. <strong>Paytm Unlisted Share Price</strong> In the last 8-10months, the share price of Paytm has fallen from 15K to 11K due to negative sentiments created in the economy due to Covid-19 and the huge competition created in the market by Google Pay and Phonepe. The last funding round that has happened in Nov-19 valued Paytm unlisted share at ~Rs. 16000 per share. So, considering that and the way Paytm is aggressively working to achieve profitability in the coming years, we believe Paytm can be a dark horse.
<p>Since the start of lockdown where people have stuck inside the four walls, the Gaming, and Trading in the stock market, have seen an upsurge in the users coming to these platforms either for time pass by playing games or to make some quick money in the stock market.</p> <!--more--> <p>In the stock market, the greater participation of investors or traders has a direct impact on the revenue and profitability of the stockbrokers. Since March-2020, we have seen huge numbers of people opening demat accounts and transaction volume per day has also increased by the huge numbers. So, in today's article, we are presenting the Sept-2020 numbers of one of India's top stock brokers i.e. HDFC Securities. <br /><br /><strong>Results</strong> <br /><br />1. HDFC Securities has shown revenue growth of 81% this quarter as compared to last year. <br /><br />2. HDFC Securities has shown PAT growth of 86% this quarter as compared to last year. <br /><br />3. This quarter they have shown an EPS of 101 per share as compared to just 57 last year. <br /><br />4. First 6MFY21 EPS stands at 187 per share. <br /><br />5. The company has issued ESOPs of HDFC Securities at 4290 per share in FY20-21.</p> <table style="width: 224px;" width="100"> <tbody> <tr> <td style="width: 93.8125px;" width="121">Particulars (in Crs)</td> <td style="width: 70.5938px;" width="100">Qtr. Sept-2020</td> <td style="width: 49.5938px;" width="103">Qtr. Sept-2019</td> </tr> <tr> <td style="width: 93.8125px;">Revenue</td> <td style="width: 70.5938px;">344</td> <td style="width: 49.5938px;">187</td> </tr> <tr> <td style="width: 93.8125px;">Expense</td> <td style="width: 70.5938px;">120</td> <td style="width: 49.5938px;">83</td> </tr> <tr> <td style="width: 93.8125px;">PAT</td> <td style="width: 70.5938px;">165</td> <td style="width: 49.5938px;">89</td> </tr> <tr> <td style="width: 93.8125px;">EPS</td> <td style="width: 70.5938px;">105</td> <td style="width: 49.5938px;">57</td> </tr> </tbody> </table> <p><strong><br />Valuation</strong> <br /><br />If you see the tremendous performance of the HDFC Securities in the first 6MFY21, and if we annualize the same, we at UnlistedZone is expecting an EPS of around 325 per share in FY21. The current market price of HDFC Securities in the unlisted market is Rs. 8300 per share. This means that share is available at a P/E multiple of 25x. <br /><br /><strong>Peer</strong> <br /><br />The listed counterpart ICICI securities is currently trading at a P/E of 22x. So the fair value of HDFC Securities should be around 7000 per share. <br /><br />You should read this as well:<br /><br /><a href="https://unlistedzone.com/hdfc-securities-has-come-with-bumper-q1-fy20-results/">https://unlistedzone.com/hdfc-securities-has-come-with-bumper-q1-fy20-results/ </a><br /><br /><a href="https://unlistedzone.com/storage/knowledge-logo/f1b9f2c1-4035-4e1a-b1b6-fa972a0254e9.pdf">HDFC Securities Q2 Results Link</a></p>
On 08.10.2020, Paytm has organized a mini App developer conference to announce a big battle against the monopoly of Google. Paytm is trying to create an app store which is similar to Google Play Store. The reason why such need arises is due to the following events;<!--more--> 1. Last month Google removed the Paytm app from its play store due to some policy violation. However, later on, restored the app. 2. Google is preparing to apply a 30% commission on all the digital services provided by the companies through their app on the play store. Though this has been extended to 2022 amid a lot of criticism. For example- If you are a fitness trainer and do all the businesses online from the app developed on Google's Play store then you need to give 30% of your income to Google. This is insane. This incident of charging a 30% commission has made Paytm to act and save this country's startup ecosystem from the clutches of US giants. We were ruled by Britishers for 200 years in physical form, and if no counter alternative is developed against Google, we will again be ruled by foreigners but this time digitally. We at UnlistedZone welcome this step of Mr. Vijay Shekhar Sharma, CEO of Paytm for acting so fast to think in the direction of building something which is truly Indian. For this noble cause and help developers to come forward and make their contribution to make this program a successful venture, Paytm has announced Rs. 10 Crores fund for this as well. We from our platform would like to appeal to all the developers to come and make this program a grand success which will have a long-lasting impact on the Indian economy and startup ecosystem. Check out the video of the mini-app conference, very insightful, and very informative to understand the current situation of the market for startups and what are the challenges Google's monopoly is creating. <iframe src="https://www.youtube.com/embed/nuK7Ct59Vyk" width="663" height="382" frameborder="0" allowfullscreen="allowfullscreen"></iframe>
Indicative prices, company research and your enquiries — in your pocket. Get price notes on the names you follow and reach our team from anywhere.
