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Utkarsh Small Finance Bank offers a gamut of Banking products & services which also includes Micro, Small and Medium Enterprise (MSME) Loans, Housing Loans (HL), Wholesale Lending, Deposit Accounts (CASA, FD & RD), Insurance, Mutual Funds, Remittances, Institutional, Government and TASC services.<!--more--> Utkarsh also offers a wide range of payment services which include Debit Cards, ATMs, POS Payments, Digital offerings like Internet Banking, Mobile Banking, and payments through NEFT, RTGS, and IMPS. After a quick intro, let us now quickly moves on to the financial performance of Utkarsh Small Finance Bank in FY19-20. <strong>Important Metrics:</strong> <strong>1</strong>. <strong>Loan Book Growth</strong> The loan book has increased from 4668 Cr to 6281 Cr in FY19-20. The bank has shown a staggering growth of 35% loan book growth. <strong>2</strong>. <strong>Deposits Growth</strong> It has increased from 3791 Cr to 5235 Cr in FY19-20. 3. <strong>NIM</strong>- Net Interest Margin = [Interest Earned - Interest Expended/ Loan outstanding] The NIM of Utkarsh Small Finance bank stands at <strong>11.59%</strong> in FY19-20. Last year it was <strong>10.68%.</strong> An increase in NIM is always positive for the bank and shows banks' margins are increasing on loan given. 4. <strong>Gross NPA</strong> The Gross NPA has increased from 0.71% to 1.39%. However, the figure is quite manageable. 5. <strong>CRAR - Credit to Risk-Weighted Assets</strong> CRAR is an important regulatory measure from RBI which banks need to maintain all the time. The minimum CRAR requirement as per RBI is 15% for Small Finance Bank. Utkarsh Small Finance Bank has 24.14% of CRAR in FY19-20 which is well above the regulatory requirement. 6. <strong>Revenue</strong> It has gone up to 1406 Cr in FY19-20 as compared to 929 Cr last year. <strong>Excellent growth of 51% in topline</strong>. 7. PAT It has gone up to 186 Cr in FY19-20 as compared to 93 Cr last year. <strong>Excellent growth of 100% in the bottom-line.</strong> So, we at UnlistedZone in the view that bank has performed outstandingly well in FY19-20. <strong>Valuation of Utkarsh Small Finance Bank and Utkarsh Coreinvest:</strong> For our users, we at UnlistedZone would like to clarify that Utkarsh Small Finance Bank shares are not available anywhere in the Unlisted Market. However, the shares of holding company i.e. Utkarsh Coreinvest are available. The Utkarsh Small Finance Bank has issued 2.22 Cr fresh equity in FY19-20 to its holding company Utkarsh Coreinvest Limited at Rs. 27 per share. Book Value as of 31.03.2020= 13.42. As on 03.06.2020, in the listed market, Ujjivan Small Finance Bank is currently trading at P/B of 2.67x. So, if we give the same P/B value to the Utkarsh Small Finance Bank, the share value comes out to be 35 per share, and the valuation of the bank comes out to be ~ 2600 Cr. If we give Holdco discount of 50% to the holding company i.e. Utkarsh Coreinvest Limited, then it may be valued somewhere around ~ 1300 Cr. The outstanding paid-up equity of Utkarsh Coreinvest Limited is 97.2 Cr. <strong>Accordingly, as on 03.06.2020, the fair value of Utkarsh Coreinvest per-share comes out to be approximately 135 per share. </strong> <strong>Source:</strong> <strong><a href="https://unlistedzone.com/storage/knowledge-logo/LODR-financial.pdf">Annual Results of Utkarsh Small Finance Bank</a></strong> <strong><a href="https://www.utkarshcoreinvest.com/assets/policy/2018-19.pdf">2019-Annual Report of Utkarsh Coreinvest </a></strong>
<strong>1.</strong> As per information received from exchanges, the Religare Enterprises Limited has divested its stakes in <strong>Religare Health Insurance limited</strong>. Religare Enterprise is the promoter of the company.<!--more--> <strong>2.</strong> M/s. Kedaara Capital Fund II LLP, acquiring such shares through its subsidiary M/s. Trishikhar Ventures LLP (jointly referred to as ‘Kedaara’). <strong>3.</strong> Kedaara Capital Fund has invested total Rs. 567.31 cr. which comprises of primary capital infusion of Rs. 300 cr. in RHICL- <em><strong>this amount will go to Religare Health Insurance for business expansion</strong></em> and Rs. 267.31 cr for the purchase of RHICL shares from existing shareholders of RHICL- <em><strong>this amount will go to </strong><strong>Religare Enterprise Limited.</strong></em> <strong>4.</strong> Post this deal, the shareholding of Religare Enterprise Limited will reduce to 72.02% on a paid up capital basis in <strong>Religare Health Insurance Limited.</strong> <strong>5</strong>. <span style="text-decoration: underline;"><strong><a href="https://unlistedzone.com/stake-sale-in-religare-health-insurance-by-rel-07-02-2020/">You can also check the last report we published on Religare Health regarding this deal.</a></strong></span>
<div class="tatsu-module tatsu-inline-text clearfix tatsu-ot9bItlI6h "> <div class="tatsu-inline-text-inner "> <p>After the recent meltdown, investors have an opportunity to buy quality listed names at reasonably discounted prices. It is very unlikely that they would rush to lesser-known unlisted space now,” said <strong>Dinesh Gupta of UnlistedZone.</strong></p> </div> </div> <div class="tatsu-animated-link tatsu-animated-link-style4 tatsu-oDDY22WGK4 tatsu-module tatsu-animated-link-align-none "><a class="tatsu-animated-link-inner " href="https://economictimes.indiatimes.com/markets/stocks/news/suddenly-super-buzzy-unlisted-market-is-feeling-like-penny-waiting-for-change/articleshow/76131313.cms" target="_blank" rel="noopener" aria-label="Read Full Article Here"><span class="tatsu-animated-link-text">Read Full Article Here</span></a></div>
Suryoday - ‘Sunrise’ in Sanskrit, signifies new dawn. It has received a Micro-Finance license from RBI in 2008, and within 8 years converted into a successful Small Finance Bank.<!--more--> <strong>FY19-20 Performance:</strong> <strong>(i)</strong> The company has shown exemplary performance in the year FY19-20 wherein, it has clocked <strong>Revenue</strong> of 854 Cr and <strong>PAT</strong> of 110 Cr as compared to 597 Cr and 86 Cr last year, respectively, representing a stupendous growth. <strong>Revenue contribution (Cr):</strong> <div class="table-overflow-init"> <table width="465"> <tbody> <tr> <td style="text-align: center;" width="64"><strong>Year</strong></td> <td style="text-align: center;" width="152"><strong>Retail</strong></td> <td style="text-align: center;" width="116"><strong>Treasury</strong></td> <td style="text-align: center;" width="133"><strong>Corporates</strong></td> </tr> <tr> <td style="text-align: center;">FY19</td> <td style="text-align: center;">590</td> <td style="text-align: center;">44</td> <td style="text-align: center;">8.15</td> </tr> <tr> <td style="text-align: center;">FY20</td> <td style="text-align: center;">813</td> <td style="text-align: center;">70</td> <td style="text-align: center;">28</td> </tr> </tbody> </table> </div> <strong>(ii)</strong> The loan book has grown from 3761 Cr to 5264 Cr in FY20. <div class="table-overflow-init"> <table> <tbody> <tr> <td style="text-align: center;" width="64"><strong>Year</strong></td> <td style="text-align: center;" width="152"><strong>Retail</strong></td> <td style="text-align: center;" width="116"><strong>Treasury</strong></td> <td style="text-align: center;" width="133"><strong>Corporates</strong></td> </tr> <tr> <td style="text-align: center;">FY19</td> <td style="text-align: center;">1623</td> <td style="text-align: center;">1239</td> <td style="text-align: center;">11</td> </tr> <tr> <td style="text-align: center;">FY20</td> <td style="text-align: center;">2897</td> <td style="text-align: center;">1347</td> <td style="text-align: center;">51</td> </tr> </tbody> </table> </div> <strong><span style="font-size: 14pt;"><span style="font-size: 12pt;">(iii) NIM - It represents how much is the net earning of the bank on loans given in the market.</strong> Formula- <span style="font-size: 14pt;">( Interest Earned- Interest Expensed)/Loan book <div class="table-overflow-init"> <table width="544"> <tbody> <tr> <td style="text-align: center;" width="64"><strong>Year</strong></td> <td style="text-align: center;" width="152"><strong>Interest Earned</strong></td> <td style="text-align: center;" width="131"><strong>Interest Expensed</strong></td> <td style="text-align: center;" width="133"><strong>Loan book</strong></td> <td style="text-align: center;" width="64"><strong>NIM</strong></td> </tr> <tr> <td style="text-align: center;">FY19</td> <td style="text-align: center;">530</td> <td style="text-align: center;">191</td> <td style="text-align: center;">2769</td> <td style="text-align: center;">12.24%</td> </tr> <tr> <td style="text-align: center;">FY20</td> <td style="text-align: center;">766</td> <td style="text-align: center;">276</td> <td style="text-align: center;">3531</td> <td style="text-align: center;">13.88%</td> </tr> </tbody> </table> </div> The NIM has increased from 12.24% in FY19 to 13.88% in FY20- <span style="font-size: 14pt;"><em><strong>Good Sign</strong></em> <strong><span style="font-size: 14pt;">Analytical Ratios:</strong> <div class="table-overflow-init"> <table width="347"> <tbody> <tr> <td style="text-align: center;" width="64"><strong>Ratios</strong></td> <td style="text-align: center;" width="152"><strong>2020</strong></td> <td style="text-align: center;" width="131"><strong>2019</strong></td> </tr> <tr> <td style="text-align: center;">CAR</td> <td style="text-align: center;">29.57%</td> <td style="text-align: center;">35.02%</td> </tr> <tr> <td style="text-align: center;">D/E</td> <td style="text-align: center;">3.86</td> <td style="text-align: center;">3.09</td> </tr> <tr> <td style="text-align: center;">G.NPA</td> <td style="text-align: center;">2.79%</td> <td style="text-align: center;">1.81%</td> </tr> <tr> <td style="text-align: center;">N.NPA</td> <td style="text-align: center;">0.57%</td> <td style="text-align: center;">0.44%</td> </tr> <tr> <td style="text-align: center;">ROE</td> <td style="text-align: center;">11.21%</td> <td style="text-align: center;">14.26%</td> </tr> <tr> <td style="text-align: center;">ROA</td> <td style="text-align: center;">2.53%</td> <td style="text-align: center;">2.58%</td> </tr> </tbody> </table> </div> <strong>(a)</strong> ROE has reduced in FY20 to 11.21% from 14.26%. <strong>(b)</strong> D/E is manageable. <strong>(c)</strong> G.NPA and N.NPA are under control. <span style="font-family: georgia, palatino, serif; font-size: 14pt;"><strong>Business Impact Due to COVID-19</strong> As per management commentary, the loan disbursement in the lock-down period is sluggish and likely to improve as lock-down is removed in phases. The Bank has made an additional provision of 65.99 crores (Retail banking 57.43 crores and Corporate banking 8.56 crores) for the potential impact of CoVID-19 as of March 2020. <em><strong>This provision is equivalent to 60% of FY20 PAT.</strong></em> <span style="font-size: 14pt;"><strong>UnlistedZone Review:</strong> The two important parameters to check the performance of the bank is loan growth and ROE. <strong>Loan growth</strong>( in FY20) = 27% (<em><strong>Excellent</strong></em>) <strong>ROE</strong> (in FY20) = 11.48% (<em><strong>Good</strong></em>) <strong>Valuation</strong>- The book value of Suryoday Small Finance Bank in FY20 stands at 123 per share. The latest price of the Suryoday Small Finance Bank in unlisted market is 260. <strong>P/B = 2.11x </strong><em>( Cheaper than AU Small and Ujjivan Small bank)</em> <strong><a href="https://unlistedzone.com/comparison-of-unlisted-and-listed-small-finance-bank-11-04-2020/">Check out here the comparison of Suryoday Small Finance Bank with listed peer i.e. AU Small Finance Bank and Ujjivan Small Finance Bank</a></strong> <strong>Last 5 years performance of the Suryoday Small Finance Bank</strong> <div class="table-overflow-init"> <table width="448"> <tbody> <tr> <td style="text-align: center;" width="64"><strong>Particulars(Cr)</strong></td> <td style="text-align: center;" width="64"><strong>FY15</strong></td> <td style="text-align: center;" width="64"><strong>FY16</strong></td> <td style="text-align: center;" width="64"><strong>FY17</strong></td> <td style="text-align: center;" width="64"><strong>FY18</strong></td> <td style="text-align: center;" width="64"><strong>FY19</strong></td> <td style="text-align: center;" width="64"><strong>FY20</strong></td> </tr> <tr> <td style="text-align: center;" width="64">Advances</td> <td style="text-align: center;" width="64">582</td> <td style="text-align: center;" width="64">983</td> <td style="text-align: center;" width="64">834</td> <td style="text-align: center;" width="64">1596</td> <td style="text-align: center;" width="64">2711</td> <td style="text-align: center;" width="64">3531</td> </tr> <tr> <td style="text-align: center;" width="64">Gross NPA</td> <td style="text-align: center;" width="64">0.13%</td> <td style="text-align: center;" width="64">0.18%</td> <td style="text-align: center;" width="64">6.15%</td> <td style="text-align: center;" width="64">3.15%</td> <td style="text-align: center;" width="64">1.81%</td> <td style="text-align: center;">2.79%</td> </tr> <tr> <td style="text-align: center;" width="64">Revenue</td> <td style="text-align: center;" width="64">180</td> <td style="text-align: center;" width="64">225</td> <td style="text-align: center;" width="64">255</td> <td style="text-align: center;" width="64">325</td> <td style="text-align: center;" width="64">599.25</td> <td style="text-align: center;" width="64">854</td> </tr> <tr> <td style="text-align: center;" width="64">PAT</td> <td style="text-align: center;" width="64">19.9</td> <td style="text-align: center;" width="64">27.14</td> <td style="text-align: center;" width="64">15.1</td> <td style="text-align: center;" width="64">10.1</td> <td style="text-align: center;" width="64">86.6</td> <td style="text-align: center;" width="64">110</td> </tr> </tbody> </table> </div> The IPO as per RBI regulation was supposed to come in 2020. However, due to COVID-19 impact, it may be postponed to next year. <strong><span style="font-size: 14pt;">Source: </strong><strong><a href="https://unlistedzone.com/storage/knowledge-logo/Audited_FR_2019-20.pdf">Audited Financial Results of FY19-20</a></strong>
As per the news published in the Financial Express, Suryoday Small Finance Bank has raised 64 cr from 6 different investors. The six investors were <strong>Gaja Capital, Kotak Life, Lok Capital, TIAA, and Kiran Vyapar.</strong><!--more--> The value at which this private placement is done not yet known. However, <span style="text-decoration: underline;"><strong><a href="https://unlistedzone.com/suryoday-small-finance-bank-is-issuing-shares-18-02-2020/">lately to comply with RBI regulation, the Suryoday Small Finance Bank has issued 50 Lakh shares in Feb-20, at price of Rs. 180 per share.</a></strong></span> This fundraising has come at the very right time for the bank as the financial industry is struggling to cope up with the enormous destruction going on in the economy due to COVID-19. Suryoday Small Finance Bank had earlier launched a working capital loan product for its microfinance institutions (MFI) customers to meet their urgent liquidity requirements during the Covid-19 lockdown. Under the scheme, customers can avail the working capital loan of Rs 5,000 at one go or in tranches, depending on their requirements. The product was crafted in such a way, that customers will pay interest only when he uses the money. Suryoday Small Finance has an advance book of Rs.3208 Cr as on 31.12.2019. Currently, the share is available at Rs.260-270 in the <span style="text-decoration: underline;"><strong><a href="http://www.unlistedzone.com">Unlisted Market.</a></strong></span>
<strong><u>Fino Paytech Performance FY 20</u></strong> <strong>(i)</strong> Fino Paytech has hit operational profitability and reduced its net loss by 50% for the last financial year.<!--more--> <strong>(ii)</strong> Fino reported a net revenue of Rs 689 crore, up 86 percent from Rs 370 crore in FY 2019. <strong>(iii)</strong> First payments bank to achieve profitability at scale while leveraging the core business of driving financial inclusion and digital payments beyond metropolitan India. <strong>(iv)</strong> Fino has facilitated transactions worth Rs 1 lakh crore in FY20, doubling from the previous year. <strong>(v)</strong> Fino processed 380 million last year against 195 million in FY19. <strong>(vi)</strong> Fino has increased its savings and current accounts base by 65% last year. <strong>(vii)</strong> While COVID-19 has had a massive impact on the digital payments and financial services industry, Fino is confident of getting back to its pre-COVID-19 business volumes within the next few months. <strong>(viii)</strong> Fino operates 2 lakh banking points directly and another 2 lakh through partners. <strong>(ix)</strong> Fino has set an aim to reach 10 lakh points in the next two to three years.
<p>Please find the proposal to sell unlisted shares at UnlistedZone.</p> <!--more--> <p>1. We will confirm our buying price.</p> <p>2. We will give you our client master report and you will transfer the shares to our account.</p> <p>3. We will ask for bank details of you once the shares are received in our Demat account.</p> <p>4. We will transfer the funds in your account within 24 hrs of receiving the shares.</p> <p>5. Payment will be made in RTGS / NEFT / IMPS/ CHEQUE TRANSFER. No CASH DEPOSIT.</p> <p>6. Payment will be given in the same account which is linked to the Demat account.</p> <p>7. Happy investing. For any inquiry please contact the below-mentioned number.</p> <p> </p> <p><strong>Dinesh Gupta</strong> <strong>Partner, </strong></p> <p><strong>8010009625</strong></p> <p><strong>UnlistedZone- Best Place to Buy and Sell Unlisted Shares in India</strong></p>
Bira 91, a craft beer brand manufactured by B9 Beverages Pvt. Ltd has raised Rs 38.08 crore ($5 million) from its existing investors, Sequoia India and Belgium-based investment firm Sofina, according to a report by INC42.<!--more--> The company, established in 2015, has reportedly raised the funding in two tranches this month, thereby offering a total of 6,34,740 preference shares at a face value of Rs 15 with a premium of Rs 585 per share worth Rs 38.08 crore, the report added. Of the total amount raised in the current transaction, Sofina has reportedly put in Rs 22.84 crore on May 18, while Sequoia has invested as much as Rs 15.23 crore on May 15. Bira 91 recently made headlines when it raised as much as $30 million from the two investors in April, with the participation of Mumbai-based consumer-focused venture capital fund, Sixth Sense Ventures, Korean private equity fund Neoplux, and certain family offices. The funds raised will help the company expand its operations in the country and consolidate its leadership position in the premium beer market where it is said to enjoy over 20% market share. The latest round comes in at a time when discussions over home delivery of alcohol are doing the rounds amidst the lockdown that has forced people to stay at home due to the COVID-19 scare. Bira 91 is currently available in a slew of flavors and has a presence across cities such as Delhi-NCR, Mumbai, Goa, Kolkata, Bengaluru, Pune, and Chandigarh. It has two breweries in Andhra Pradesh and Karnataka. <strong>UnlistedZone:</strong> This latest funding round has valued Bira 91 at ~2500 Cr. In 2019, when they raised 30 cr from Sixth Sense Ventures they were valued at ~ 1800 Cr. <strong>Source: Dealstreetasia.com </strong>
<span style="font-size: 14pt;">1. As per the report published in TOI, e-commerce giant <a href="https://unlistedzone.com/shares/reliance-retail-limited-unlisted-shares/">Reliance Retail</a> is trying to enter in pharmacy business by looking at buying a stake in Netmeds.</span> <span style="font-size: 14pt;">2. <a href="https://www.netmeds.com/about-us">Netmeds</a> last month has tied up with Reliance retail to sell their medicine from their online portal. It is reported that Netmeds was facing an issue in supplying drugs during the lockdown.</span> <span style="font-size: 14pt;">3. Netmeds.com, India Ki Pharmacy, is brought to you by the Dadha & Company – one of India’s most trusted pharmacies, with over 100 years’ experience in dispensing quality medicines. The company has started selling medicine online in 2010.</span> <span style="font-size: 14pt;">4. If Reliance retail gets successful in gaining stakes in Netmeds it will open new revenue avenues going forward.</span>
As per the news published in the business-standard, <span style="text-decoration: underline;"><a href="https://www.business-standard.com/article/markets/iex-plans-to-acquire-15-stake-in-reliance-adag-platform-icex-120042700301_1.html"> IEX( Indian Energy Exchange) is looking to buy a 15% stake in ICEX for Rs. 150 cr</a>.</span> That means valuing the ICEX at Rs. 1000 Cr. The matter has gone to SEBI because as per law, <strong>IEX</strong>- a non-exchange, can't have more than a 5% stake in <strong>ICEX-</strong> the exchange. So, SEBI approval is required to buy 15% stake in the exchange. As per sources, ICEX is looking to utilize Rs. 100 on setting up its own clearing corporation as per SEBI regulation, currently it is using services of MSEI for clearing, and rest 50 cr will be used for product development and marketing. <span style="font-size: 14pt;"><strong>UnlistedZone View</strong></span> As per the annual report of 2018-19, the ICEX has total ~ 53 Cr outstanding shares. So, if we consider the total Mcap of Rs. 1000, the unlisted price of shares comes out to be ~ Rs. 18. Currently, it is trading at Rs. 13-14 in the unlisted market.
Nazara Technology has given notice vide which the Extraordinary- AGM which was originally scheduled on March 30, 2020, is adjourned, and will now be held on Tuesday, April 28, 2020, at 11.00 A.M. through Video Conference along with e-voting facility. <strong>The following business activities will be considered in the AGM.</strong> <strong>1.</strong> Approval for Reclassification of the Authorised Share Capital of the Company and consequent Alteration of Memorandum of Association. <strong>2</strong>. Alteration of the Capital Clause in the Articles of Association of the Company. <strong>3.</strong> Offer and Issue of equity shares for consideration other than cash on a private placement basis. <span style="font-size: 14pt;"><strong>UnlistedZone View:</strong></span> Nazara Technology is the biggest beneficiary of COVID-19 as more and more people are playing games in the lockdown time. Moreover, we have seen after JIO-FB deal, why Mr. Mukesh Ambani is going gung-ho on the gaming industry. So, the future is great for gamers. The more mature market like the USA the gaming industry is growing at a great pace and moreover, gaming is a profession unlike leisure activity in India. So, as more and more youth will take gaming as a profession, the industry will grow exponentially. Below, is the video of Mr. Nitish Mittersain the founder of Nazara Tech with ET Now. <iframe src="https://www.youtube.com/embed/bfdfgk50wFY" width="826" height="465" frameborder="0" allowfullscreen="allowfullscreen"></iframe> The AGM is going to conduct on 28.04.2020 and is basically happening to raise money from investors. The interesting thing would be looking at what price they will raise funds. Last year, they have done private placement at Rs.729 per share. Due to recent meltdown in the market, Nazara Technology is currently available in the unlisted market at Rs. 575 per share. The price looks quite decent for game lovers. Check below link for more detail about the share, <span style="text-decoration: underline;"><a href="https://unlistedzone.com/shares/nazara-technologies-share-price-buy-sell-nazara-technologies-unlisted-shares/">https://unlistedzone.com/shares/nazara-technologies-share-price-buy-sell-nazara-technologies-unlisted-shares/</a></span>
Below is the transcript of the con-call done with MD of Star Health Insurance. As per him, the COVID-19 will bring lot of attention towards health Insurance. As per Dr S Prakash, MD of Star Health insurance, the following would be the impact of COVID-19 on the health insurance industry. <strong>(1)</strong> Indian markets are massively underpenetrated with just 3-4% Indian’s having an individual retail health policy. <strong>(2)</strong> Dr. Prakash expects a significant improvement in insurance penetration post-Covid-19, a trend seen in other geographies in the past. <strong> (3)</strong> insurance companies will focus on increasing the use of technology leading to faster turnaround and lower distribution costs. <strong>(4)</strong> claims for COVID-19 patients are significantly higher though it is too early to comment on the impact on the industry. As of now, the Star Health Insurance Unlisted Share is not available in the unlisted market. However, if anyone is interested in doing investment in the health insurance sector, then they can check <strong>Religare Health Insurance Unlisted shares.</strong> <strong>Interested folks can email to UnlistedZone at [email protected].</strong>
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