Blogs, insights, guides and videos on India's unlisted market — all in one place.
Moody's yesterday has downgraded Hero-FinCorp local currency and foreign currency rating from "Baa3" to "Ba1". They have also revised the rating to a negative outlook. Let us check the meaning of this rating downgrade. <strong>Moody's Rating Definitions:</strong> <!--more--> <table width="100"> <tbody> <tr> <td rowspan="10" width="161">Investment Grade</td> <td width="124">Aaaa</td> </tr> <tr> <td>Aa1</td> </tr> <tr> <td>Aa2</td> </tr> <tr> <td>Aa3</td> </tr> <tr> <td>A1</td> </tr> <tr> <td>A2</td> </tr> <tr> <td>A3</td> </tr> <tr> <td>Baa1</td> </tr> <tr> <td>Baa2</td> </tr> <tr> <td>Baa3</td> </tr> <tr> <td rowspan="11" width="161">Non-Investment grade</td> <td>Ba1</td> </tr> <tr> <td>Ba2</td> </tr> <tr> <td>Ba3</td> </tr> <tr> <td>B1</td> </tr> <tr> <td>B2</td> </tr> <tr> <td>B3</td> </tr> <tr> <td>Caa1</td> </tr> <tr> <td>Caa2</td> </tr> <tr> <td>Caa3</td> </tr> <tr> <td>Ca</td> </tr> <tr> <td>C</td> </tr> </tbody> </table> 1. Baa means they are considered as medium-grade. 2. Ba means subject to substantial credit risk. So, we can conclude this from the above ratings that as of now Hero-FinCorp is under "substantial credit risk" <strong>Why rating downgrade has happened?</strong> Moody's feels that HeroFinCorp's unseasoned loan book and rapid growth in the past few years may pose risk to asset quality due to economic disruption posed by COVID-19 outbreak. <strong>UnlistedZone view</strong> In the near term, the effect on asset quality will not be easily seen on the balance sheet as RBI has given a 6M moratorium, under which even if the borrowers do not pay debt obligation on time, they will still not be counted as NPA. And we are hoping the economy will revive in one year's time as the economy is slowly opening up and vaccine hope are around the corner. However, despite problems in the NBFC from the last 2-3 years, Hero-FinCorp has able to pay all its obligation on time. The strong parentage of Hero Group will offset all the weaknesses, as they can easily able to raise money from banks in case of such a crisis.
<p>HDB Financial, the HDFC Group Company, is the leading NBFC in India. The HDB Financial is doing business in two operating segments, i.e. Lending business and BPO services. <br /><br /><strong>Revenue Streams</strong> <br /><br />1. The lending business includes providing finance to retail customers for a variety of purposes like purchase of commercial equipment and commercial vehicles, personal purposes, enterprise loans, etc.</p> <!--more--> <p>Revenue from lending business includes <br /><br />(i) interest income and processing fees net of loan origination costs.<br /><br />(ii) collection-related charges like cheque bouncing charges, late payment charges, and foreclosure charges. <br /><br />(iii) insurance commission. <br /><br />2. BPO services comprise of sales support services, back office, operations, processing support, running collection call centers, and collecting overdue amounts from borrowers for HDFC group companies. <br /><br /><strong>Q1 Numbers:</strong> <br /><br />On July 23, it has informed the National Stock Exchange regarding its financial results for Q.E June-20. HDB Financials has shown revenue growth of 6% YoY in the first quarter of June-20 as compared to the same period last year. However, QoQ, there is a fall in revenue of 4.2%. The fall is mainly on sales of services. The interest income, the core business income has seen no impact. The interest income has gone up from 1951 Crores in June-19 to 2153 Crores in June-20. The expense has increased from 2187 Crores year in the first quarter to 2531 Crores this year. Due to this, the net profit after tax has gone down to 111 Crores from 210 Crores last year.<br /><br /><strong>Why has Expense gone up?</strong> <br /><br />If you check the financials of the company, there is an item called “Impairment on financial assets”. The value of this item has gone up from 337 Crores to 686 Crores, resulted in a decrease in profit in the first quarter as compared to the same period last year. This figure indicates that the market value of the financial investment done by the company has gone down. These days in the new accounting system the company needs to show a decrease in the value of the financial asset in the P&L under expense. This helps investors to know the impact of market forces on the assets of the company. The balance sheet is not available with UnlistedZone to know the exact financial asset whose value has gone down. <br /><br /><strong>UnlistedZone View:</strong> <br /><br />The PAT numbers are looking bad because of impairment. However, HDB Financials is doing business quite well. The Company is duly servicing its debt obligations, maintaining a healthy capital adequacy ratio, and has adequate capital and financial resources to run its business. They are not facing any issue in raising money for lending as well, which is otherwise becoming difficult for low-grade NBFCs. <br /><br /><a href="https://unlistedzone.com/storage/knowledge-logo/HDB-Q1-Result.pdf">Results Link</a></p>
Good news for the shareholders of Fresenius Kabi Oncology. Finally, after a wait of 1.5 years, NCLT has passed an order to give an exit route to all the minority shareholders. The history and offered price are explained below. 1. Fresenius Kabi Oncology in the year 2018 has filed a case in NCLT for capital reduction.<!--more--> They have proposed to reduce the number of shares from 17,02,47,857 equity shares of INR 1 (Indian rupee one) to 16,52,32,882 equity shares of INR 1 (Indian rupee one) each by canceling and extinguishing in the aggregate, approximately 2.95% (two point nine five percent) of the total issued, subscribed and paid-up share capital of the Company, consisting of 50,14,975. 2. As per the annual report 2018-19, total shares held by promoters were 97.05% and minority shareholders were 2.95%. 3. So, the company has given exit to all the minority shareholders. 4. The company has decided to pay Rs. 58.40 per share in lieu of their shares being extinguished in accordance with the NCLT order. The minority shareholder should immediately contact the company and surrender their shares. <strong>For Resident Shareholders:</strong> The company will pay the amount after deducting 7.5% TDS to the eligible shareholders. <strong>For Non- Resident Shareholders:</strong> The company will pay the amount after deducting 20% TDS to the eligible shareholders. For more detail please follow the below link. <a href="https://unlistedzone.com/storage/knowledge-logo/FKOL_Notice-Capital-Reduction-1.pdf">Notice Link</a>
The Extraordinary General Meeting (EGM) of the members of Suryoday Small Finance Bank Limited is scheduled to be held on Monday, July 27, 2020, at 3.30 p.m.through Video Conferencing ("VC").<!--more--> <strong>The following business activities will be discussed in the EGM</strong>. 1. To approve the Initial Public Offer of Equity Shares of the Bank. 2. To approve an increase in the authorized share capital of the Bank. 3. To approve alteration of the Capital Clause of Memorandum of Association of the Bank. 4. To approve the amendment of the Suryoday ESOP Scheme-2019. 5. To approve the re-appointment of Mr. Ramachandran Rajaraman (DIN 01953653) as an Independent Director of the Bank. The most important business activity as far as the unlisted market is concerned is the announcement of the IPO. <strong>Mandatory condition of IPO</strong> In terms of the Guidelines for Licensing of Small Finance Banks in the Private Sector dated November 27, 2014, the Bank is required to list its equity shares on the stock exchanges within three years from attaining a net worth of ₹500 crores i.e. before November 30, 2020, or such other date as may be approved by the Reserve Bank of India. The IPO would be a mix of Fresh shares and OFS. <a href="https://karisma.kfintech.com/files/SMFL_NOTICE_OF_EGM_27.7.2020.pdf">Link of Notice</a>
As per the Paytm recent blog, the Paytm payment bank arm has shown profitability once again in the FY19-20. In FY19-20, Paytm payment bank has shown a profit of ~30 Crores as compared to ~20 Crores last year. The profitability has come on the back of acquisitions of users in smaller cities. Paytm payment bank this year has clocked a revenue of ~Rs.2100 Crores.<!--more--> Some amazing stats from the payment bank in FY19-20. 1. Paytm has facilitated 486 Crores transactions from its platform. 2. Done a total of 4.6 Lakh Crores of transactions. This is approximately 2% of India's GDP. 3. Total CASA base increased to 5.8 Crores. 4. The total deposit doubled to 1000 Crores. Paytm bank has recently launched a facility for DBT (Direct benefit transfer), the government subsidy scheme to transfer funds directly to the bank account of needy people. So, all the users who are having Paytm Payment bank saving account now will able to get government subsidy directly in their Paytm account. This will boost the Paytm presence in rural India since, during COVID-19, lot of migrant workers are getting income under the MANREGA scheme. <strong>UnlistedZone View:</strong> Paytm is really doing good in the payment bank segment from the last 2 years and is expected to reduce the overall losses this year, though we don't have the consolidated numbers available with us to give the exact amount of reduction in loss. With back to back profitability in payment bank arm, we can say Paytm is poised for a big leap in India's digital payment segment. The recent acquisition of the Raheja QBE General Insurance business will boost its revenue from the Insurance business in the coming years. To read more about the deal please click here https://unlistedzone.com/paytm-is-acquiring-general-insurance-business-from-raheja-qbe/
<strong>IPO News</strong> On 13.07.2020 Barbeque Nation got approval from SEBI for IPO. Now they have to bring an IPO within one year from this approval date. <strong>Barbeque Nation</strong> Barbeque Nation owns and operates one of India's leading casual dining restaurant chains according to the Technopak Report. The first Barbeque Nation Restaurant was launched in 2005 by Sayaji Hotels, one of their promoters.<!--more--> From the inception, they have steadily grown their owned and operated Barbeque Nation Restaurant network from a single restaurant in Fiscal 2007 to 147th outlet in India and 154th internationally as in 2020. <strong>Valuations</strong> In 2018, when Rakesh Jhunjhunwala invested 90 cr in the company at that time it was valued around 2300-2400 cr. As per the balance sheet of 2018-19, they have ~2.80 cr shares. So, if we take a valuation of 2300 cr, then per share price comes out to be 821-857. Moreover, as per yesterday news published in Mint, “The IPO comprises a fresh issue of shares worth Rs 275 crore and an offer-for-sale of up to 98,22,947 equity shares, according to the draft papers filed with the Securities and Exchange Board of India (SEBI).” If we remove the fresh issue part of 275 cr from the lower end of 1000 cr, then the value per share would be 720 per share. And at the upper end of 1200 cr, then value per share would be 943. <strong>UnlistedZone View</strong> As Covid-19 has made the situation bad especially for the hotel and restaurant sector, the IPO will not come at least in the next 6 months. They will probably time the IPO when the hotel and restaurant sector starts functioning. The IPO price would be in the range of 800-900. To know more about Barbeque Nation, please visit: https://unlistedzone.com/shares/buy-sell-barbeque-nation-unlisted-shares-price-today/
Utkarsh Micro Finance Ltd is the promoting institution for 'Utkarsh Small Finance Bank'. Utkarsh Micro Finance Ltd has started its operations way back in September 2009 to provide financial and non-financial services in its area of operations to the unbanked population who have the skill but are in need of capital.<!--more--> The Micro Finance business was converted into a Small Finance Bank which started his journey with its incorporation on April 30, 2016. Today, Utkarsh Micro Finance Bank is the holding company of the Utkarsh Small Finance Bank. As on 31.03.2020, Utkarsh Small Finance Bank has a loan book of 6281 Cr, NIM of 11.59%, and Book value of 13.42. PAT for the year was 186 Cr which was doubled as compared to the previous year. As per the news published in Financial Express, the bank has raised 195 Cr as Tier-II capital. <strong>What are Tier I and II Capital?</strong> As per RBI regulations, every bank has to maintain certain capital in the ratio of risk-weighted assets to handle the obligations of the banks and to prevent banks from going insolvent. That ratio is called as Capital Adequacy Ratio (CAR). Tier-I capital consists of shareholders' equity and retained earnings. It is the primary source of funds for banks. Tier-II - capital is said to be subordinate capitals. CAR = Tier-I or Tier-II Capital/Risk-weighted Assets <strong>Effect on CAR?</strong> This capital raising exercise will increase the CAR by almost 3%. <a href="https://unlistedzone.com/shares/share-price-utkarsh-micro-finance-buy-sell-unlisted-shares/" target="_blank" rel="noopener noreferrer">Click here to know more about the Utkarsh Small Finance Bank</a>.
As per information received from our sources, BVG India, A Bharat Vikas Group Company is proposing an initial public offering of its equity shares of the face value of ₹10 each ("Equity Shares") for cash, through the book-building process, subject to the Securities and Exchange Board of India approval.<!--more--> The Board has at its meeting dated July 04, 2020, approved; the proposed initial public offering, comprising a fresh issue of the Equity Shares by the Company and an offer for sale of Equity Shares. <strong> BVG India</strong> The journey of BVG India was started in the year 1993 by HR Gaikwad as a non-profit Bharat Vikas Pratishthan to funds of poor & needy students, having been through financial struggles himself. This non-profit group was started to help rural youth to get jobs and livelihood. However, in 1997, the non-profit BVG (Bharat Vikas Group) turned into a housekeeping company with 8 people & 1 client. Today, it is India’s Largest Integrated services company with 75000+ employees, serving 800+ sites for 750+ customers in 70 cities across 20 states across India. <strong> What is BVG Group?</strong> 1. India's Largest Integrated Service Company in India. 2. Asia's Largest Police Support Service. 3. India's largest Emergency Ambulance Service. 4. Pioneers of Mechanized housekeeping in India. 5. 100+ Train cleaned and maintained every day. Today they have big clients like Bajaj, Mahindra, Ashok Leyland, Hyundai, Volkswagen, Fiat, in automobile companies, and ONGC, ITC, Hindustan lever, Accenture and Indian Railways in the public-private sector. To know more about BVG Group, please visit: https://unlistedzone.com/shares/bvg-india-limited-unlisted-share/
As per information from our sources, Suryoday Small Finance Bank, that the board is evaluating an initial public offering of its equity shares (the “Equity Shares”) for cash, subject to approval by the Shareholders and market conditions, regulatory, corporate, and other approvals.<!--more--> The IPO would be a mix of fresh issue of its Equity Shares (the “Fresh Issue”) and an offer for sale of Equity Shares by certain existing shareholders of the Bank. So once the shareholders approve the IPO plan, the Suryoday Small Finance Bank will file for DRHP with SEBI. <strong>Suryoday Small Finance Bank:</strong> Started in the year 2008-09, Suryoday Small Finance Bank provides Microfinance loans, Loans against the property, MSME loans, Commercial vehicle loans, and SME lending. As of 31.03.2020, the bank has advances of 3531 Cr with G.NPA of 2.81%. <a href="https://unlistedzone.com/shares/buy-sell-suryoday-small-micro-finance-bank-limited-unlisted-shares-share-price/" target="_blank" rel="noopener noreferrer">To know more about the Suryoday SFB, please visit this page.</a> <strong>Investors:</strong> Suryoday Small Finance Bank is backed by top-notch investors. 1. International Finance Corporation, 2. Gaja Capital Fund. 3. Evolvence India Fund II. 4. Americorp Ventures Limited etc. 5. DWM (International) Mauritius Limited <strong>Financial Performance and Comparison with listed Peers:</strong> To know how it has performed in the last 5 years and how it currently fares up with listed peers in terms of valuation, then please go through the following links: https://unlistedzone.com/suryoday-small-finance-fy20-results-update-and-analysis-30-05-2020/ https://unlistedzone.com/comparison-of-unlisted-and-listed-small-finance-bank-11-04-2020/
Paytm is looking to enter into the hot business of General Insurance. The company last year got the standalone license from IRDA which they are now surrendering. <!--more-->As per the news published by Business Standard, Paytm CEO Mr. Vijay Shekhar and Paytm parent company One97 are looking to acquire the General Insurance business of Raheja QBE for Rs. 568 Cr. <strong>Deal setup:</strong> Raheja QBE is selling its 100% stakes in the General Insurance Business to QorQI, a tech company owned by Mr. Vijay Shekhar and Paytm parent company One97 communication. <strong>Raheja QBE General Insurance:</strong> Raheja QBE is a joint venture between Rajan Raheja Group and QBE Insurance, Australia’s second-largest global insurer. Raheja QBE has been established to help create the most conducive environment for consumers and partners in the insurance sector. As per regulatory filings, Raheja QBE has revenue of Rs. 189 cr and Net-worth of 154 cr. More details can be accessed at <a href="https://www.rahejaqbe.com/" target="_blank" rel="noopener noreferrer">https://www.rahejaqbe.com/</a> <strong>Positive for Paytm:</strong> The entry of Paytm in General Insurance will help it to grow inorganically to capture the insurance market at fast-pace instead of starting as a fresh business which it was initially looking for. The huge client base and brand of Paytm will leverage to grow fast in the insurance business. If this augur well, this could be the game-changer of Paytm which lately struggling with the mounting losses.
<p>“If the IPL does take place this year, the scrip may rise to Rs 45-50 levels, considering the euphoria in the secondary markets and quality of the stock,” said <strong>Dinesh Gupta of Unlisted Zone.</strong><br /><br /><a class="tatsu-animated-link-inner " href="https://economictimes.indiatimes.com/markets/stocks/news/on-dhoni-birthday-csk-investors-worry-over-his-retirement-ipl-fate/articleshow/76828552.cms" target="_blank" rel="noopener" aria-label="Read Full Article Here"><span class="tatsu-animated-link-text">Read Full Article Here</span></a></p>
<p style="font-weight: 400;">To check the price of listed stocks, we have the options of NSE (National Stock Exchange) and Bombay Stock Exchange to fetch the latest prices on a daily basis.</p> <p style="font-weight: 400;">However, when it comes to unlisted shares the tracking sometimes becomes difficult. <!--more-->The investors who are investing in the unlisted shares don’t have the facility to check the share price or to keep track of the price of the unlisted companies on a daily basis. It is very difficult for the investors to track the price as the unlisted shares are always shown at face value in the depository’s application (NSDL or CDSL) or in stock broker’s application.</p> <p style="font-weight: 400;">So, what is the solution? How can someone check the daily movement in the prices?</p> <p style="font-weight: 400;">The answer is a platform like <strong>UnlistedZone</strong>.</p> <p style="font-weight: 400;">UnlistedZone displays the current market price of an unlisted stock on their websites for all the unlisted stocks available for investment. In case the price is not available at the website same can be obtained from UnlistedZone by simply dropping an email. UnlistedZone is also in the process to develop an application where investors can get, the latest prices on a daily basis, the value of the portfolio, etc on the website itself. A separate login option will be given to each and every investor to check the same.</p> <p style="font-weight: 400;"><strong>Why tracking of Price is important?</strong></p> <ul> <li style="font-weight: 400;">As we say, price always adds a spice in the investment. So if we have a system or application to check the price movement and its overall impact on the portfolio of the unlisted companies on a daily basis then it can prove to be beneficial for the investor to make a judgment on entry and exit from the unlisted stock.</li> <li style="font-weight: 400;">Generally, due to low liquidity in the unlisted market, the volatility in the price is usually less than its other counterpart i.e. listed space. The movement in the price of an unlisted company happens whenever it announces Qtr. or Annual Results, any investment by PE/VC funds, or any acquisition that can prove to be beneficial for the business perspective in the long run. So we can say, apart from liquidity factor, the movement in the unlisted share or company happens in a similar fashion as that of listed space.</li> <li style="font-weight: 400;">Knowing the price of unlisted shares helps investors to check the ROI (Return on Investment) they have generated over the period of time. Knowing ROI from unlisted shares give investors the option to compare their portfolio performance in listed and unlisted space. After that, the investors can take wise decisions as to where the maximum returns are generated and accordingly, the specific allocation in the portfolio can be done.</li> </ul> <p style="font-weight: 400;">Some of the best shares available at the platform along with prices are mentioned below.</p> <ol> <li style="font-weight: 400;">HDB Financial Unlisted Share Price = 780 per share</li> <li style="font-weight: 400;">Paytm Price Unlisted Share Price = 11000 per share</li> <li style="font-weight: 400;">Hero-Fin Corp Unlisted Share Price = 850 per share</li> <li style="font-weight: 400;">Nazara Tech Unlisted Share Price = 540 per share</li> <li style="font-weight: 400;">Studds Accessories Unlisted Share Price = 750 per share</li> <li style="font-weight: 400;">Barbeque Nation Unlisted Share Price = 785 per share.</li> <li style="font-weight: 400;">Reliance Retail Unlisted Share Price = 1200 per share</li> <li style="font-weight: 400;">Indofil Industries Unlisted Share Price = 750 per share</li> <li style="font-weight: 400;">MSEI Unlisted Share Price = 1.25 per share</li> <li style="font-weight: 400;">CSK Unlisted Share Price = 35 per share.</li> </ol> <p style="font-weight: 400;"><strong>Latest Price movement in Unlisted Shares </strong>To check the daily price movement in unlisted shares, the annual results updates, news updates in the unlisted market, and all the happenings in the unlisted market, the investors can visit and bookmark <a href="https://www.unlistedzone.com/" data-saferedirecturl="https://www.google.com/url?q=http://www.unlistedzone.com&source=gmail&ust=1593746157934000&usg=AFQjCNGv7hZQ0owaglLEuiSdQKiE1Hp2Fg">www.unlistedzone.com</a></p>
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