Blogs, insights, guides and videos on India's unlisted market — all in one place.
<p>On 16.04.2020, the HDFC Securities has informed on BSE regarding its yearly financials. And not to anyone surprise, the stock-broker has shown phenomenal growth amid the slowdown in trading activity during FY19-20. Below, is the snapshot of the results and comparison with last year. <br /><br /><strong>(Figures are in Cr.)</strong></p> <!--more--> <table style="border-collapse: collapse; width: 288pt;" border="0" width="384" cellspacing="0" cellpadding="0"><colgroup> <col style="width: 48pt;" span="6" width="64" /> </colgroup> <tbody> <tr style="height: 15.0pt;"> <td class="xl65" style="height: 15pt; width: 48pt; text-align: center;" width="64" height="20"><strong>Year</strong></td> <td class="xl65" style="width: 48pt; text-align: center;" width="64"><strong>Revenue</strong></td> <td class="xl65" style="width: 48pt; text-align: center;" width="64"><strong>Expense</strong></td> <td class="xl65" style="width: 48pt; text-align: center;" width="64"><strong>PAT</strong></td> <td class="xl65" style="width: 48pt; text-align: center;" width="64"><strong>Shares</strong></td> <td class="xl65" style="width: 48pt; text-align: center;" width="64"><strong>EPS</strong></td> </tr> <tr style="height: 15.0pt;"> <td class="xl65" style="height: 15pt; text-align: center;" height="20">2019</td> <td class="xl65" style="text-align: center;">770</td> <td class="xl65" style="text-align: center;">275</td> <td class="xl65" style="text-align: center;">329</td> <td class="xl65" style="text-align: center;">1.561</td> <td class="xl65" style="text-align: center;">210.73</td> </tr> <tr style="height: 15.0pt;"> <td class="xl65" style="height: 15pt; text-align: center;" height="20">2020</td> <td class="xl65" style="text-align: center;">857</td> <td class="xl65" style="text-align: center;">353</td> <td class="xl65" style="text-align: center;">384</td> <td class="xl65" style="text-align: center;">1.573</td> <td class="xl65" style="text-align: center;">244.1</td> </tr> </tbody> </table> <p><strong><br />1</strong>. HDFC Securities has shown a robust growth of 11.29% in top-line despite a slowdown. Two main sources of the revneue i.e the brokerage Income has shown growth of 5.36%, & Interest Income has shown a growth of 145%. <br /><br /><strong>2</strong>. The PAT has shown a growth of 16.71% in FY20 as compared to last year. <br /><br /><strong>3</strong>. In FY20, Employee benefit expense has gone to 196 cr as compared to 152 cr last year. <br /><br /><strong>4</strong>. Currently, it is trading at Rs.7500 in the Unlisted market, valuing the company at 11,797 Cr, while its nearest pear, ICICI Securities, is trading at 10,950 Cr. However, the revenue of ICICI Securities in FY19 was almost twice that of HDFC Securities. <br /><br />The results can be accessed at<span style="font-size: 14pt;"><strong><a href="https://unlistedzone.com/storage/knowledge-logo/025f7d01-e4c7-4e73-b1bf-191ffa26643d.pdf"> link.</a></strong></span> </p>
In India, there are a lot of traders in the market who deal in Steel, Rubber, and Diamond business. The risk in trading is always associated with a sudden rise and fall in the prices of these commodities. Let us understand the same with an example. As a trader, you have purchased 10,000 kg Steel at a price of Rs.1000 per kg by paying <strong>1 Cr</strong> and it would take 60 days to sell this 10,000 Kg in the market after adding your commission. In the meanwhile, due to less demand in the market, the prices of Steel fell to Rs.800 per kg. Now, what is the solution? You are staring at a big loss, huh!! Don't worry, here, the role of exchanges like the <strong>Indian Commodity Exchange</strong> comes into the picture. They basically provide you the insurance against the fall in price, how? The day you purchase 10,000 Kg of Steel by paying 1 Cr, had you sell future contracts of the value equivalent of Steel on <strong>ICEX platform</strong>, you would have earned the money when the price of steel fell to Rs. 800 from ICEX exchange. So, your loss in physical Steel price could have compensated by earning in exchanges. This is called hedging or insurance against the fall in price. For more understanding, let us watch this video: <span style="font-size: 14pt;"><strong>What is Hedging or Insurance?</strong></span> <iframe src="https://www.youtube.com/embed/z8JbADGTf3o?list=PLNHNplNwA35a5i6E3J8IDthrM0dHhYfuS" width="677" height="381" frameborder="0" allowfullscreen="allowfullscreen"></iframe> <span style="font-size: 14pt;"><strong>How it Work?</strong></span> <iframe src="https://www.youtube.com/embed/ezzz58y9do8?list=PLNHNplNwA35a5i6E3J8IDthrM0dHhYfuS" width="677" height="381" frameborder="0" allowfullscreen="allowfullscreen"></iframe>
The market due to COVID-19 pandemic has corrected to a low of 7500 on Nifty from a high of 12500 in a month's time. The unprecedented impact on the economy has left Dalal street bleeding. And similarly listed small finance banks such as <strong>Ujjivan SFBs</strong> and <strong>AU Small Finance Bank</strong> have also corrected more than 50% in the last 1 month. However, the impact of the meaningful correction on indexes has little effect on Unlisted Shares due to low liquidity. So, today we thought of doing quick research and comparison on various banking parameters to check how unlisted SFB i.e. <strong>Suryoday Small Finance Bank,</strong> is fairing among the listed giants. <strong>1)</strong> The below data shows Loan book, Borrowing, Deposit, CASA, NIM, & G.NPA of FY18-19 and loan book growth of the last 3 years i.e. 2017,2018 & 2019. If we can see carefully, all the SFBs have enjoyed a healthy loan book growth in the last 3 years. <div class="table-overflow-init"> <table width="932"> <tbody> <tr> <td style="text-align: center;" width="252"><strong>SFB</strong></td> <td style="text-align: center;" width="133"><strong>Loan book</strong></td> <td style="text-align: center;" width="112"><strong>Borrowing</strong></td> <td style="text-align: center;" width="129"><strong>Deposit</strong></td> <td style="text-align: center;" width="84"><strong>CASA</strong></td> <td style="text-align: center;" width="101"><strong>NIM</strong></td> <td style="text-align: center;" width="121"><strong>G.NPA</strong></td> </tr> <tr> <td style="text-align: center;">AU SFB</td> <td style="text-align: center;">22,818 Cr</td> <td style="text-align: center;">8613 Cr</td> <td style="text-align: center;">19422 Cr</td> <td style="text-align: center;">18.43%</td> <td style="text-align: center;">5.50%</td> <td style="text-align: center;">2%</td> </tr> <tr> <td style="text-align: center;">Ujjivan SFB</td> <td style="text-align: center;">10,522 Cr</td> <td style="text-align: center;">4166 Cr</td> <td style="text-align: center;">7379 Cr</td> <td style="text-align: center;">10.63%</td> <td style="text-align: center;">10.93%</td> <td style="text-align: center;">0.92%</td> </tr> <tr> <td style="text-align: center;">Suryoday FB</td> <td style="text-align: center;">2711 Cr</td> <td style="text-align: center;">1124 Cr</td> <td style="text-align: center;">1593 Cr</td> <td style="text-align: center;">11.20%</td> <td style="text-align: center;">12.26%</td> <td style="text-align: center;">1.80%</td> </tr> </tbody> </table> </div> <strong>a)</strong> AU SFB is the giant among three SFBs. Having a loan book twice of Ujjivan and 8x to Suryoday SFBs. <strong>b)</strong> CASA means a <strong>Current Account and Saving Account.</strong> Every bank dream is to have this number as large as possible of the total deposit because they need to give very fewer interest rates to these types of deposits. AU Small Finance bank highest CASA of 18.43% as compared to the other two. <strong>c)</strong> Gross. NPA is quite manageable for all the three SFBs. <strong>2) </strong> Let us see now some of the valuation and profitability parameters. The share price as on 09.04.2020 is taken for calculation of P/B and Book value of 2018-19 is taken as reference. The unlisted price of Rs.350 is taken for Suryoda SFB. On comparison, we find that AU SFB despite correction from 750 to 496 in the last one month still trailing at P/B of 4.59 and costliest SFB among all <div class="table-overflow-init"> <table width="384"> <tbody> <tr> <td style="text-align: center;" width="64"><strong>SFBs</strong></td> <td style="text-align: center;" width="64"><strong>Book Value</strong></td> <td style="text-align: center;" width="64"><strong>ROE</strong></td> <td style="text-align: center;" width="64"><strong>Price</strong></td> <td style="text-align: center;" width="64"><strong>P/B</strong></td> <td style="text-align: center;" width="64"><strong>Mcap</strong></td> </tr> <tr> <td style="text-align: center;" width="64">AU SFB</td> <td style="text-align: center;" width="64">108</td> <td style="text-align: center;" width="64">13.10%</td> <td style="text-align: center;" width="64">496</td> <td style="text-align: center;" width="64">4.59</td> <td style="text-align: center;" width="64">15097 Cr</td> </tr> <tr> <td style="text-align: center;" width="64">Ujjivan SFB</td> <td style="text-align: center;" width="64">11.09</td> <td style="text-align: center;" width="64">11.21%</td> <td style="text-align: center;" width="64">28</td> <td style="text-align: center;" width="64">2.52</td> <td style="text-align: center;" width="64">4995 Cr</td> </tr> <tr> <td style="text-align: center;" width="64">Suryoday SFB</td> <td style="text-align: center;" width="64">108</td> <td style="text-align: center;" width="64">6.98%</td> <td style="text-align: center;" width="64">350</td> <td style="text-align: center;" width="64">3.2</td> <td style="text-align: center;" width="64">2835 Cr</td> </tr> </tbody> </table> </div> <strong>3)</strong> Branch and Employees data of all three SFBs. It is clear that AU SFB being the giant has more branches and loan/branch among all. <div class="table-overflow-init"> <table width="256"> <tbody> <tr> <td style="text-align: center;" width="64"><strong>SFBs</strong></td> <td style="text-align: center;" width="64"><strong>Branch</strong></td> <td style="text-align: center;" width="64"><strong>Employee</strong></td> <td style="text-align: center;" width="64"><strong>Loan/branch</strong></td> </tr> <tr> <td style="text-align: center;" width="64">AU SFB</td> <td style="text-align: center;" width="64">572</td> <td style="text-align: center;" width="64">12623</td> <td style="text-align: center;" width="64">39.89 Cr</td> </tr> <tr> <td style="text-align: center;" width="64">Ujjivan SFB</td> <td style="text-align: center;" width="64">552</td> <td style="text-align: center;" width="64">16776</td> <td style="text-align: center;" width="64">19.06 Cr</td> </tr> </tbody> </table> </div> <strong>4)</strong> Further, in the bank, the most important business parameter is to check, where they have given loans. And sectors to which bank has given loans are doing well or not. And to understand that, below is the loan profile of all three banks. <strong>a) Suryoday SFB (FY2018-19)</strong> <div class="table-overflow-init"> <table width="474"> <tbody> <tr> <td style="text-align: center;" width="158"><strong>Type of loan</strong></td> <td style="text-align: center;" width="99"><strong>Ticket Size</strong></td> <td style="text-align: center;" width="113"><strong>Loan given</strong></td> <td style="text-align: center;" width="104"><strong>% size</strong></td> </tr> <tr> <td style="text-align: center;" width="158">Marginal borrowers</td> <td style="text-align: center;">10k-50k</td> <td style="text-align: center;">2189 Cr</td> <td style="text-align: center;">81%</td> </tr> <tr> <td style="text-align: center;">Commercial Vehicle</td> <td style="text-align: center;">15-35 Lakh</td> <td style="text-align: center;">218 Cr</td> <td style="text-align: center;">8%</td> </tr> <tr> <td style="text-align: center;">Secured Business loan</td> <td style="text-align: center;">1 Lakh to 1 Cr</td> <td style="text-align: center;">68 Cr</td> <td style="text-align: center;">3%</td> </tr> <tr> <td style="text-align: center;">MSME Loans</td> <td style="text-align: center;">50k to 1 Cr</td> <td style="text-align: center;">97 Cr</td> <td style="text-align: center;">4%</td> </tr> <tr> <td style="text-align: center;">FIG loans</td> <td style="text-align: center;">loan to NBFCs</td> <td style="text-align: center;">48 Cr</td> <td style="text-align: center;">2%</td> </tr> </tbody> </table> </div> Their 81% of loan exposure is towards the small ticket size value of Rs.10k to 50k to marginal borrowers of the society and all this loan is unsecured. During this lockdown, marginal borrowers are most affected. We need to check how the bank cope up with this jolt in the coming quarters. With RBI given 3 months moratorium for all banks not to declare NPAs, the correct picture will emerge only after lockdown. The important factor we need to see how fast the marginal borrowers again get a job in the market. <strong>b) AU Small Finance Bank (FY2018-19)</strong> <div class="table-overflow-init"> <table style="width: 83.2759%;" width="370"> <tbody> <tr> <td style="text-align: center; width: 36.3793%;" width="158"><strong>Type of loan</strong></td> <td style="text-align: center; width: 24.3104%;" width="99"><strong>Loan given</strong></td> <td style="text-align: center; width: 22.4138%;" width="113"><strong>% size</strong></td> </tr> <tr> <td style="text-align: center; width: 36.3793%;" width="158">Vehicles Loans</td> <td style="text-align: center; width: 24.3104%;">9528 Cr</td> <td style="text-align: center; width: 22.4138%;">42%</td> </tr> <tr> <td style="text-align: center; width: 36.3793%;">SME&MSME</td> <td style="text-align: center; width: 24.3104%;">7708 Cr</td> <td style="text-align: center; width: 22.4138%;">34%</td> </tr> <tr> <td style="text-align: center; width: 36.3793%;">loan to NBFC</td> <td style="text-align: center; width: 24.3104%;">2511 Cr</td> <td style="text-align: center; width: 22.4138%;">11%</td> </tr> <tr> <td style="text-align: center; width: 36.3793%;">Secured Business loan</td> <td style="text-align: center; width: 24.3104%;">891 Cr</td> <td style="text-align: center; width: 22.4138%;">4%</td> </tr> <tr> <td style="text-align: center; width: 36.3793%;">Agri B/L</td> <td style="text-align: center; width: 24.3104%;">244 Cr</td> <td style="text-align: center; width: 22.4138%;">1%</td> </tr> <tr> <td style="text-align: center; width: 36.3793%;">Home & Gold Loan</td> <td style="text-align: center; width: 24.3104%;">165 Cr</td> <td style="text-align: center; width: 22.4138%;">1%</td> </tr> </tbody> </table> </div> From the above, it is clear that AU SFB core business segment is Vehicles loans and the MSME sector. More than 75% of the loan comprises of these two items. With the <span style="color: red;"><span style="text-decoration: underline;"><a href="https://economictimes.indiatimes.com/small-biz/sme-sector/hit-by-a-virus-and-lockdown-the-wheels-are-coming-off-the-indian-logistics-industry/articleshow/74882675.cms">logistics sector affected under lockdown</a>,</span></span> the impact will be seen in the Vehicle segment. The more clear picture will come in the next 2 quarters. <strong>c) Ujjivan Small Finance Bank (FY2018-19)</strong> <div class="table-overflow-init"> <table width="509"> <tbody> <tr> <td style="text-align: center;" width="158"><strong>Type of loan</strong></td> <td style="text-align: center;" width="139"><strong>Ticket Size</strong></td> <td style="text-align: center;" width="99"><strong>Loan given</strong></td> <td style="text-align: center;" width="113"><strong>% size</strong></td> </tr> <tr> <td style="text-align: center;" width="158">Group Loan MF</td> <td style="text-align: center;" width="139">Rs.2k to 60k</td> <td style="text-align: center;">7891 Cr</td> <td style="text-align: center;">75%</td> </tr> <tr> <td style="text-align: center;">Micro Individual Loan</td> <td style="text-align: center;">Rs. 51k to 2 Lakh</td> <td style="text-align: center;">841 Cr</td> <td style="text-align: center;">8%</td> </tr> <tr> <td style="text-align: center;">Affordable Housing</td> <td style="text-align: center;">Rs.2Lakh to 50 Lakh</td> <td style="text-align: center;">841 Cr</td> <td style="text-align: center;">8%</td> </tr> <tr> <td style="text-align: center;">MSME</td> <td style="text-align: center;">Rs.2Lakh to 50 Lakh</td> <td style="text-align: center;">526 Cr</td> <td style="text-align: center;">5%</td> </tr> </tbody> </table> </div> The situation of Ujjivan SFB is similar to Suryoday SFB in terms of loan exposure to marginal borrowers of society. Their 82% of loan book falls under this category. So, we can conclude that the valuation of all the SFBs is looking comfortable but the road ahead is not easy and finding impact at this juncture is very difficult.
<em><strong>It is a 15 days old news, but we are sharing here to explain to you guys how Unlisted space is weathering the selling pressure of Dalal Street. Our Co-founder Mr.Dinesh Gupta has also shared his view in the article.</strong></em><!--more--> New Delhi: The domestic stock market has taken a hard knock as fears about the rapidly spreading coronavirus gripped financial markets the world over. While the domestic market for listed shares has virtually perished as the bears ran amok, the impact has not been so severe in the unlisted space, said traders from the unlisted market. The selloff in domestic stocks has eroded about Rs 31 lakh crore worth of equity investors’ wealth so far from the all-time high level that BSE Sensex scaled on January 20. Market capitalization of BSE-listed firms fell to Rs 128 lakh crore from around Rs 159 lakh crore during the period. Concerns over coronavirus, fears of a global recession, a price war in the oil market, the crisis at YES BankNSE 0.84 % and a slide in domestic GDP growth rate have ensured the bear grip on domestic stocks. “The rout in the listed market has affected the unlisted market as well, but the impact has been limited. There is a lesser number of buyers in this space as of now, in spite of the correction in share prices,” said Sandip Ginodia of Abhishek Securities. Dealers in the unofficial market said some shares have plunged. Hero Fincorp has fallen to Rs 1,000-1,025 levels from Rs 1,100-1,125 in last two months. HDFC Securities has lost up to 5 percent value to trade in the Rs 8,300-8,400 range. HDB Financial and UTI AMC – two of the hottest stocks in the unlisted space – have tanked up to 10 percent. HDB Financial now is available at Rs 1,025-1,050 against Rs 1,150-1,200 three weeks back and UTI AMC at Rs 975 against Rs 1,050 earlier. B9 Beverages, the maker of Bira Beers, has tanked up to 25 percent. The stock, which traded at Rs 1,200 in December, is now valued at Rs 900. Shares of Reliance Retail have traded flat post cancellation of the share swap RIL has earlier proposed. <span style="font-size: 14pt;"><strong>UnlistedZone View</strong></span> <em><strong>" </strong></em><strong>All hell broke loose in the listed market. Though there is a fall in unlisted space too, the intensity has not been as strong," said Dinesh Gupta of InvestorZone, which trades in unlisted shares.</strong> <strong>He advised investors to be cautious"</strong> Going against the wind, shares of Religare Health Insurance have surged over 20 percent in the last one month and they now trade at Rs 52-55. This scrip has doubled investor wealth in the last one year. Suryodaya Small Finance Bank is another stock that has gained over 10 percent despite the recent selloff. The scrip surged to Rs 340-350 from Rs 310-320 amid an IPO buzz. Tamilnadu Mercantile Bank has also gained traction in the unlisted space. The stock has crossed Rs 400 mark against a Rs 350-360 range earlier, as the lender readies to hit the primary market later this calendar. Brew maker Mohan Meakin has delivered over 15 percent return in the last couple of months, surging to Rs 600-610 from Rs 510-520. "The unlisted space is not for intraday trade. Investors hold their investment for a long period to gain more. So, panic does not bother much. Also, the minimum investment amount restricts the entry to only patient investors," said Abhishek Chaturvedi of Ultimate Wealthowl. <span style="text-decoration: underline;"><span style="font-size: 14pt;"><strong>Source: Economics Times</strong></span></span> <div></div>
As per the news published in ET, the RBI has directed to payment gateways aggregators such as<strong> Paytm</strong> and <strong>RazorPay,</strong> to comply with the regulation of Payment and Settlement Systems Act (2007). Under this act, the following is needed to comply. <strong>a)</strong> The minimum Net-Worth of Payment gateway to be 15 Cr. <strong>b)</strong> Strict Governance, Operational, and Fit and Proper norms for the board of directors, similar to what we see in Banks. <strong>c)</strong> Mandatory compliance on technology and cyber-security requirements at par with standards for the regulated financial institution. The above compliances will increase operational overheads for these companies. The sector is already working on very small margins, so for smaller companies the business would become difficult. As per market statistics, there are close to 65-70 payment aggregators working in our country. With these guidelines in place, the bigger companies such as <strong>Paytm</strong> and <strong>RazorPay</strong> will benefit as competition will reduce from smaller companies. Interested folks can buy <strong>Paytm Unlisted shares</strong> at our website.
<strong>Under this article, we will discuss the business profile of Inkel Limited, a Govt. of Kerala entity.</strong> (i) As on 31.03.2019, the Inkel Limited has following projects under their kitty. Over the next 30 months, these projects are expected to generate a revenue of around Rs.80 Crores, after accounting for the receipts so far. <table width="377"> <tbody> <tr> <td style="text-align: center;" width="291"><strong>Project Description Project Cost</strong></td> <td style="text-align: center;" width="87"><strong>(Rs. in crore)</strong></td> </tr> <tr> <td style="text-align: center;" width="291">Healthcare Institutions</td> <td style="text-align: center;" width="87">2587.57</td> </tr> <tr> <td style="text-align: center;" width="291">Treasury Infrastructure – 55 locations</td> <td style="text-align: center;" width="87">150</td> </tr> <tr> <td style="text-align: center;" width="291">KINFRA Defence Park, Ottappalam</td> <td style="text-align: center;" width="87">120</td> </tr> <tr> <td style="text-align: center;" width="291">Alappuzha Mobility Hub</td> <td style="text-align: center;" width="87">493.06</td> </tr> <tr> <td style="text-align: center;" width="291">Muzris Heritage Projects – Phase 1 & 2</td> <td style="text-align: center;" width="87">36.17</td> </tr> <tr> <td style="text-align: center;" width="291">Alleppey Heritage – Tourism projects</td> <td style="text-align: center;" width="87">60.06</td> </tr> <tr> <td style="text-align: center;" width="291">CREST Institute, Kozhikode</td> <td style="text-align: center;" width="87">16</td> </tr> <tr> <td style="text-align: center;" width="291">KSIDC Life Science Park, Trivandrum</td> <td style="text-align: center;" width="87">11.36</td> </tr> <tr> <td style="text-align: center;" width="291"><strong>Total</strong></td> <td style="text-align: center;" width="87"><strong>3474.22</strong></td> </tr> </tbody> </table> <strong>(ii) In renewable energy business,</strong> the year saw the company making a strategic shift from the solar street light business to setting up Solar power generation plants. Though, the solar division reported a decline in revenues, the company has been able to complete some quality projects, aggregating 2 MW of solar power generation capacity. <strong>(iii)</strong> During the FY18-19, the Company has been appointed by Department of General Education, Govt of Kerala as the PMC for Infrastructure upgradation of 239 schools across the state. The estimated project cost is Rs 699 crores, with a potential fee income of Rs 24 cr. The entire project is planned to be completed within 18-24 months. <strong>(iv)</strong> The company has bagged an EPC tender from KSEB for setting up 8 MW of ground mounted solar plant at three locations–Brahmapuram, Agali and Nenmara. The total estimated cost is Rs 45 crores, to be commissioned in the Fy19-20. <strong>(v) Business Parks -Angamali & Malappuram</strong> Built-up space at Angamali Tower II is almost fully leased out. The Company is encouraging small and medium entrepreneurs to lease small parcels of land, which have received good response. During FY18-10, 5.91 acres have been allotted to entrepreneurs at Malappuram who are in the process of setting up new ventures in the allotted land. 99% of the land that are suitable for industrial usage have been leased out to more than 51 units. <strong>(vi) Road Project</strong> The successful commissioning of 58 km State Highway project for RICK Ltd under Hybrid Annuity (in Kottayam and Thiruvananthapuram districts) have given the company, the confidence to explore opportunities for taking up large projects. During FY18-19, the Company concluded an agreement with M/s KMC Constructions Ltd, Hyderabad for investment in Calicut Expressway Private Ltd (CEPL), a special purpose vehicle established to undertake the six-laning of 28 km Kozhikode bye-pass under NHAI’s Hybrid Annuity Model. As per the agreement, the Company’s 100% subsidiary IIDPL would hold 49% of the shares of CEPL which is developing the project, subject to approval by the National Highway Authority of India (NHAI). The balance shares of this SPV will come under the control of INKEL, after the mandatory lock-in period of 4 years, comprising 2 years for construction and 2 years for operations . The project cost of Rs 1669 crore is to be met through a mix of NHAI Grant, Debt and Equity. The investment with profits will be returned to the Company in the form of half yearly annuity for the operations period of 15 years. <strong>So, basically Inkel Limited takes Govt. projects, finish them up, and finally gets their commission. The business model which is very similar to NBCC, though it is only doing the real state business, on the other hand, Inkel Limited has a diversified business.</strong>
As per source from ET, the Bira Beer is planning to launch 40-50 limited beer options in the next one year. They are planning to launch one new beer every week from its newest brewery in Mysore. Bira will be completing its five-year journey in 2020. The plan of the company is to have feedback of customers after every release so that as per demand more production of the popular beer can be done. For all this to happen successfully, Bira will rely on its team of brewmasters stationed at each of its four breweries to come up with the new limited release beers. The company’s team of 24 brewers, along with a similarly sized quality assurance team will drive the ambitious program that the company’s release cycle hinges on. The company in the last 1-2 years has doubled its market share riding on the capacity which has grown from 4-5 million cases to 20 million cases. We at UnlistedZone feel that, if this model of bringing new beer very weekend gets a good response from customers, the Bira will definitely take a big stride in the Indian liquor market in the coming years and profitability at the bottom line will follow soon.
Tamilnad Mercantile Bank has sent the notice to its shareholders for the Annual General Meeting <strong>(AGM),</strong> and the final decision on all the points which will be discussed in the AGM will be made public on 09.04.2020. <span style="font-size: 14pt;"><strong>We will list the most important points to be discussed in the AGM.</strong></span> <strong>1.</strong> Reduction of the Authorized Share Capital from 500 Cr at FV=10, to 280 Cr at FV=10. It implies that TMB is reducing its total authorized shares from 50 Cr to 28 Cr, by canceling 22 Cr shares. The <b>reduction</b> of <b>capital</b> is done for numerous reasons, including increasing shareholder value and producing a more efficient <b>capital</b> structure. <strong>2. </strong> The bank is planning to issue 1,58,40,000 Equity Shares via <strong>IPO</strong>( Initial Public Offering ) and 71,25,570 Equity shares via OFS( Offered for Sale ). <strong>3</strong>. The company may issue Pre-IPO shares to investors before IPO. However, the IPO size will not exceed 1,58,40,000. <strong>4</strong>. Once it is approved, the company will file DRHP soon. <span style="font-size: 14pt;"><strong>UnlistedZone Take:</strong></span> From the above extract, it is clear that TMB bank's management is looking to come up with an IPO soon, however, the question is at what value the IPO will come? <span style="font-size: 14pt;"><strong>Small Stats of TMB bank as on 31.12.2019:</strong></span> <strong>(i)</strong> Total Business= 62,544 Cr <strong>(ii)</strong> Total Deposit = 35,174 Cr <strong>(iii)</strong> Total Advances = 27,369 Cr <strong>(iv)</strong> Net-Profit(9M)= 243 Cr <strong>(v)</strong> Net-NPA = 2.13% <strong>(vi)</strong> Book Value = 267 As of 31.12.2019, the TMB has a book value of 267. So, if you give a book value multiple of 2-2.5x, the IPO price could be in the range of 520 to 667. However, given the poor condition of the economy and market, it would be a million-dollar question, the value merchant bankers give to the bank in IPO. <span style="text-decoration: underline;"><span style="font-size: 14pt;"><a href="https://unlistedzone.com/storage/knowledge-logo/AGM-Notice.pdf"><strong>Extract of AGM</strong></a></span></span>
As per Bombay Stock exchange filing, <strong>Reliance Retail Ventures Limited</strong>, a subsidiary of Reliance Industry, and having ~99% stakes in <strong>Reliance Retail</strong>, has acquired 7,86,191 equity shares representing 100% of the equity share capital of Shri Kannan Departmental Store Private Limited (SKDS) for a consideration of INR 152.5 crores. <strong>SKDS,</strong> incorporated on September 15, 1999, is engaged in the business of retailing fruits & vegetables, dairy, staples, home & personal care and general merchandise to consumers. <strong>SKDS</strong> currently operates 29 stores across Coimbatore and nearby areas with a retail area of over 6 lakh sq. ft. <strong>SKDS</strong> reported revenue from operations of INR 415 crore, INR 450 crore and INR 481 crore and Net Profit of INR 2 crore, INR 3 crore and INR 4 crore in FY2018-19, FY2017-18 and FY2016-17 respectively. The aforesaid investment will further strengthen the group’s retail operations and presence in the state of Tamil Nadu and will further enable retail and new commerce initiatives. <strong>Positive for Reliance Retail share, as they are getting a company that is generating an annual revenue of Rs. 450 Cr at just Rs. 152 cr.</strong>
<span style="font-size: 12pt;"><strong>As per the news published in the ET today, Paytm subsidiary Paytm Insurance Broking has secured a brokerage license from sector regulator IRDAI</strong>.</span> <span style="font-size: 12pt;">They are looking to offer insurance products across Auto, Health, and Life.</span> <span style="font-size: 12pt;">The wholly-owned subsidiary of Paytm has tied up with 20 insurance firms to sell insurance products. It has surrendered its corporate agency license and applied for Brokerage license recently. As corporate license allows to sell for a specific company and not allows to sell for all available pool of Insurance companies.</span> <span style="font-size: 12pt;">Paytm Insurance is going to give millions of our users the option of buying bite-sized insurance products at a competitive price, said Amit Nayyar, President- Paytm. The company is in the process of shortlisting merchant partners who would be trained to become Point of Sales Persons (PoSP). The company plans to rope in 2 lakh such PoSPs this year.</span> <span style="font-size: 12pt;">We at <a href="http://www.unlistedzone.com">UnlistedZone</a> feel that this is a good step by the company as the insurance business will boost company revenue and with 15 cr customer base, the selling of product won't be difficult.</span>
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Yesterday, the news was published in the Economic Times, wherein Mukesh Ambani's Reliance Retail has been tagged among the 50 fastest growing retail company globally, by Deloitte's Global Powers of Retailing 2020 index, between FY 2013-2018. Walmart is the top leader among all the retail companies. <span style="font-size: 1rem; line-height: 1.66;"> </span> <section id="fullPage" class="temp1"><section id="mainPage" class="articlePage"><article class="articleData"> <div class="artText"> Deloitte ranked 250 firms globally in its annual report based on their revenues for FY2018. The Reliance Retail major secured the 56th spot this year against the 94th rank the previous year. </div> <div></div> <div class="artText"><section id="fullPage" class="temp1"><section id="mainPage" class="articlePage"><article class="articleData"> <div> <div class="artText"> Factors that enabled the company to achieve top spot were a strong focus on boosting e-commerce growth through its website <strong>Ajio.com</strong>; a push for sales of smartphones and other consumer electronics online; an aggressive pricing strategy across its offline stores; the acquisition of Hamleys, UK-based toy retailer; and new store openings," the report said. </div> </div> </article></section></section>The Reliance Retail in the year 2019 also becomes India's first retail company to cross the revenue of more than <strong>1 Lakh Crores</strong>. Currently, they have more than 10,000 stores and command a rough Mcap of ~ 4 Lakh Crores. This roughly translates into a valuation of 40 cr per store. On the other hand, Dmart the listed entity is having Mcap of 1.5 Lakh Crores with only 200 stores. This roughly translates into a valuation of 750 Cr per store, which is beyond imagination. </div> </article></section></section>Going forward, the Reliance is focussing on Retail and JIO business to steam up the gas in the future. So, if anyone is looking to buy Reliance Retail shares, may visit <span style="text-decoration: underline;"><strong><a href="https://unlistedzone.com/shares/reliance-retail-limited-unlisted-shares/">www.unlistedzone.com</a></strong></span>, India's fastest growing start-up in unlisted space.
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