Blogs, insights, guides and videos on India's unlisted market — all in one place.
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>
Reliance Industries in the press release to exchanges has informed that Silver Lake will invest₹ 7,500 crores into RRVL, a subsidiary of Reliance Industries. This investment values RRVL at a pre-money equity value of ₹ 4.21 lakh crore. Silver Lake’s investment will translate into a 1.75% equity stake in RRVL on a fully diluted basis.<!--more--> This marks the second billion-dollar investment by Silver Lake in a Reliance Industries subsidiary after the $1.35 billion investment in Jio Platforms announced earlier this year. <strong>Silver Lake</strong> Silver Lake is having $60 billion AUM and a strong focus on the world’s great tech and tech-enabled opportunities, and Silver Lake is the global leader in large-scale technology investing. Its mission is to build and grow great companies by partnering with world-class management teams. Its other investments have included Airbnb, Alibaba, Alphabet’s Verily and Waymo units, Dell Technologies, Twitter, and numerous other global technology leaders. <strong>UnlistedZone View</strong> The timely buy of Future Group has increased the valuation of Reliance Retail from 3.6 Lakh Crores last month to 4.21 Lakh Crores today. This is just the beginning. We will see a flurry of investors investing in retail business in the next 1-2 months. The valuation may go up, similar to what we have seen in the case of JIO. The Reliance Retail at ~4.21 Lakh Crores of valuation and with total equity of ~498 Crores, the per-share value comes out at ~850 per share. Generally, such big investors when enters in the company then they always look for multi-bagger returns on their investment. If Reliance Retail performs well, big value unlocking will happen in the next 2-3 years for Reliance Retail shareholders.
ICL Fincorp is conducting the 29th Annual General Meeting of the Members of M/s. ICL Fincorp Limited will be held on Wednesday, the 30th day of September 2020 at 11.00 a. m. IST (“AGM”) through Video Conferencing (“VC”) / Other Audio-Visual Means (“OAVM”) facility to transact the following businesses.<!--more--> 1. Approval of Standalone and Consolidated Financial Statements of the Company for the Financial Year ended March 31, 2020. 2. Appointment of a Director in place of Mr. K. G. Anilkumar who retires by rotation and being eligible offers himself for re-appointment. 3.Reappointment of M/s. Mohandas & Associates, Chartered Accountants, Thrissur as the Statutory Auditors of the Company, and fixation of remuneration. 4. Appointment of Mr. Shinto Stanly as an Independent Director of the Company. 5. Appointment of Ms. Umadevi Anilkumar as the Whole Time Director of the Company and designated as “Whole Time Director and Chief Executive Officer” and revision of remuneration. 6. Revision of remuneration to Mr. K. G. Anilkumar, Managing Director of the Company. 7. Approval of Borrowing Limit. 8. Issuance of Equity Shares on Preferential Issue basis ICL Fin-corp will issue and allot 1,00,00,000 Equity Shares of face value of Rs.10/- (Rupees Ten Only) each for cash at an issue price of Rs.20/- (Rupees Twenty Only) for a total consideration of Rs.20 Crores on preferential basis to Mr. K.G. Anilkumar, Promoter and Managing Director (DIN: 00766739) of the Company in one or more tranches. <a href="https://unlistedzone.com/storage/knowledge-logo/AGM_Notice_Final.pdf">Notice of AGM</a>
Paytm on 04.09.2020 has announced that it has clocked the revenue of Rs. 3629 Crores in the year FY19-20, up by 20% as compared to last year. And have claimed to reduce the losses by 40%. Last year it has incurred the losses of ~4100 Crores. In FY19-20, the number of transactions has increased by 50% as compared to last year. <!--more-->The company is expected to come in profit by 2022. In FY19-20, Paytm has started a new stream of businesses under the financial arm i.e. lending, wealth management, & insurance. Paytm offering of Android-based POS devices to SME and Kirana shops through its payment bank arm is gaining popularity. <strong>Main Businesses of Paytm</strong> <strong>1. Paytm Money</strong> For managing the business under Paytm money, it has hired industry veteran Varun Shridhar to manage the business. https://unlistedzone.com/paytm-money-appoints-varun-sridhar-as-new-ceo/ Under Paytm money, it has started offering stock broking services as a discount broker for giving tough competition to discount brokers such as Zerodha, Uptox, Angel Broking etc. https://unlistedzone.com/paytm-joins-the-bandwagon-to-offer-broking-services/ <strong>2. Paytm Insurance</strong> For Insurance services, it has recently acquired QE Raheja group and probably by next year will get IRDA approval. https://unlistedzone.com/paytm-money-appoints-varun-sridhar-as-new-ceo/ <strong>3. Paytm Payment Bank</strong> Through this license, it gives all the services related to digital payment in India. Paytm Payment bank is the only payment bank in India which is profitable and has shown continuous profitability in the last 2 years. https://unlistedzone.com/paytm-payment-bank-has-shown-profitability-in-last-2-years/ <strong>UnlistedZone view</strong> In the last 1 year, we have seen very little or no advertisement by Paytm thereby saving a lot of money which is boosting the bottom line. Moreover, in the last 3-4 months Paytm has hired 10-20 industry veterans to run its different business verticals. With pressure from investors such as Softbank to perform or perish, Paytm in the last one year has shown good performance. At the current market price of Rs. 11000 in the unlisted market, it is available at a valuation almost 30% down by the last funding that has happened in Nov-19.
<p><strong>Business Highlights <br /><br /></strong> 1. Despite challenges in the market Studds have performed well and the top line grew by 10.85%. Besides, growth in the top line, the operating EBIDTA grew at 41.16% and the PAT grew by 81.05% from the preceding year.</p> <!--more--> <p>2. This year Studds has made significant investments to develop a world-class R&D facility, backward integration by manufacturing EPSL in the plant, with an endeavor to improve the quality of the products and meet stringent safety standards. <br /><br />3. During the year, the company has stepped up efforts to improve relations with its dealers and distributors and it helped to significantly increase its market share. As of 31st March 2020, the network of 385 dealers is spread across the globe and 7 EBO’s in India. <br /><br />4. This year the company has launched new products i.e. Titan Fiber, Titan Carbon, Sub Urban. They are planning to further bolster the segment with the launch of riding gear, jackets, armours, elbow guards, knee guards, and shoes. <br /><br />5. This year company has sold 66.5 Lakhs (Domestic + Global) and globally has a Domestic market share in Two Wheelers helmets as 25.66%. <br /><br /><strong>Financial Highlights:</strong> <br /><br />1. Studds has clocked the revenue of 431 Crores in FY19-20 up by 10.8% as compared to last year. <br /><br />2. Studds has clocked an EBITDA of 103 Crores in FY19-20 up by 41% as compared to last year. <br /><br />3. Studds has clocked the PAT of 74 Crores in FY19-20 up by 84% as compared to last year. <br /><br />4. EPS for the year 2019-20 stands at 37. <br /><br />5. The total debt on books is 27 Crores and Net-worth of 216 Crores. So, D/E is 0.12. 6. RONW of FY19-20 is 34%. <br /><br /><strong>Valuation:</strong> <br /><br />Currently, it is available at Rs. 950 per share in the unlisted market. <br /><br />Total equity in the market is 1.9676 Crores. <br /><br />Mcap = 1870 Crores. <br /><br />P/E = 25x</p>
As per media sources, Reliance retail is in final talk with American Private Player Silver Lake for the sale of 1.8% stakes in the company for 7500 Crores of valuation.<!--more--> If this deal goes through, the Reliance Retail could be valued ~4.3 Lakh Crores. The total equity at present is ~500 Crores. This will value Reliance Retail at ~860 per share. At present, due to the peak demand of its share in the Unlisted market the Reliance Retail share is trading at Rs. 1250 per share. Though, the company has not made this final to any media house. However, the company is certainly looking to divest some stakes in Reliance Retail. We at UnlistedZone will update the story further as soon as we get more insight on it.
Frick India, the company engaged in manufacturing, supply, execution of Industrial Refrigeration, and Air-conditioning system has released its Q1FY21 earnings.<!--more--> <strong>Results Analysis</strong> 1. The company has clocked a revenue of 44.70 Crores in the first quarter, which is down by 37% QoQ and 0.4% YoY. 2. In the quarter, the company has saved around 2.08 Crores in employee benefits expense. 3. Frick India has clocked an EBITDA margins of 16% this quarter as compared to 13% last quarter and 7.44% in the same quarter last year. So, the company has shown excellent margins. 4. PAT for this quarter has come at 4.94 Crores, down by 26% QoQ and up by massive 1.82x times as compared to the same quarter last year. 5. EPS for this quarter has come at Rs. 80 per share. <a href="https://unlistedzone.com/storage/knowledge-logo/RESULTS.pdf">Results link</a>
As per information collected from stock exchanges, Reliance Retail Ventures Limited (RRVL), subsidiary of Reliance Industries Limited, is acquiring the Retail & Wholesale Business and the Logistics & Warehousing Business from the Future Group for aggregate consideration of INR 24,713 crore.<!--more--> <strong>Scheme of the deal</strong> 1. The Retail & Wholesale Undertaking is being transferred to Reliance Retail and Fashion Lifestyle Limited (RRFLL), a wholly-owned subsidiary of RRVL. 2. The Logistics & Warehousing Undertaking is being transferred to RRVL 3. RRFLL will also invest: (a) INR 1,200 crore in the preferential issue of equity shares of FEL to acquire 6.09 % of post-merger equity. (b) INR 400 crore in a preferential issue of equity warrants which, upon conversion and payment of balance 75% of the issue price, will result in RRFLL acquiring further 7.05% of FEL. <strong>Benefit to Reliance</strong> The acquisition of the future Group complements and makes a strong strategic fit into Reliance’s retail business. This acquisition is subject to SEBI, CCI, NCLT, shareholders, creditors and other requisite approvals.
Reliance Retail led Jio-Mart and Facebook, through its instant messaging platform Watsapp, is going to target 2-2.5 Crores SMEs and bring them in the eco-system of online from the current off-line mode. In the event organized by the Internet and Mobile Association of India, Ajit Mohan, VP, and MD of Facebook said that the Watsapp has already helped millions of Kirana Shops to digitize their shops and start selling online. <!--more--> Mohan has also given an example of the recently published report of the BCG group that consumer behavior is shifting more towards buying online and there is a rise of 15-20% in the segments such as apparel, mobile phones, and packaged foods. The recent event of COVID-19 which otherwise shook the economies of the whole world, however, has become a boon for certain sectors such as Pharma, Chemicals, e-commerce. And Jio-Mart being an e-commerce company has taken a big lap in grabbing the business. To bolster its presence, Reliance Retail is also looking to buy Future Group Company. As per buzz in the market, on Saturday, the Future Group is raising money to pay back its pending dues, and Reliance may infuse funds in the company. The coming years will be very interesting to see how e-commerce giants like Amazon, Reliance Retail, Flipkart fairs up in the competition.
<strong>Annual Report 2019-20 Highlights</strong> 1. In FY20, Hero-Fin Corp has become India’s No.1 two-wheeler financing company. 2. In FY19-20, Hero-Fin Corp has crossed a milestone of covering 50 Lakhs customers, network at 2000 locations, and registered a growth of 40% in loan disbursement as compared to last year. 3. Hero-Fin Corp has disbursed 17827 Crores of loans in FY19-20.<!--more--> 4. Total AUM as on 31.03.2020 stands at 25182 Crores. 5. PAT at 310 Crores up by 16% as compared to 268 Crores last year. 6. Employees strength as on 31.03.2020 stands at over 7500. 7. Hero-Fin Corp has recommended a final dividend of Rs. 2.55/- per equity share for the financial year ended March 31, 2020. <strong>Last 5 years Growth of Hero-Fin Corp </strong> <img class="alignnone wp-image-9318" src="https://unlistedzone.com/storage/knowledge-logo/1-2.jpg" alt="" width="434" height="332" /> <img class="alignnone wp-image-9319" src="https://unlistedzone.com/storage/knowledge-logo/2-2.jpg" alt="" width="435" height="349" /> <img class="alignnone wp-image-9320" src="https://unlistedzone.com/storage/knowledge-logo/3-1.jpg" alt="" width="431" height="370" /> <img class="alignnone wp-image-9321" src="https://unlistedzone.com/storage/knowledge-logo/4-2.jpg" alt="" width="435" height="365" /> <img class="alignnone wp-image-9322" src="https://unlistedzone.com/storage/knowledge-logo/5-1.jpg" alt="" width="442" height="379" /> <strong>Subsidiary Performance</strong> Hero-Fin Corp has one subsidiary called Hero Housing Finance Limited. 1. HHFL has Revenue from operations of Rs. 137.81 crore in financial year 2019-20 as compared to Rs. 26.27 Crore in previous year 2018-19, registering a growth of 425% over the previous year. 2. However, the net losses for the year after tax from operations has increased from Rs. 22.62 Crore in financial year 2018-19 to Rs. 32.14 crore in financial year 2019-20 3. HHFL has shown a tremendous growth and touched an asset under management (AUM) of Rs. 1793.06 Crore during the FY 2019-20. <strong>Equity Dilution in FY19-20</strong> In FY19-20, the Company has issued 13,109,753 partly paid up equity share, of face value of Rs. 10 each at a premium of Rs. 810 per equity share, with Rs. 460 paid up issue of shares ( including a premium of Rs. 454.40 per partly paid up equity share) on private placement basis. Allotted 824405 shares to Otter Limited, 170732 shares to Credit Suisse, and 2048781 shares to Apis Growth II (hibiscus) Pte. Ltd.
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