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<strong>(i)</strong> NCL Buildtek Limited <b>(the “Company”) </b>had obtained the approval of members of the Company, at the Annual General Meeting (“AGM”) held on September 28, 2019,for the issuance of Bonus Shares in the ratio of 1:1 i.e., 1 (one) fully paid-up equity share of Rs.10/- each for every (one) fully paid-up equity share of Rs.10/- each held by them in this Company. <strong>(ii)</strong> The Board of Directors of the Company has fixed<b> <u>Friday, 06th December 2019</u> </b>as the Record date for determining the list of shareholders entitled to receive the bonus shares. <span style="color: #000000; font-family: arial, sans-serif;"><strong>(iii)</strong> For any queries, clarifications or assistance relating to the procedure for dematerialization, please feel free to contact U.Divya Bharathi, the Company Secretary by email or phone at </span><b>Email: </b><b><a href="mailto:[email protected]" target="_blank" rel="noopener noreferrer">companysecretary@<wbr />nclseccolor.com</a> </b><b>or Phone: 040 –68313333/346.</b> <strong>(iv)</strong> We at UnlistedZone believes this bonus issue must be the preparation before launching an IPO.
Paytm, the Indian unicorn in the digital wallet has secured a funding of $1Billion( Rs. 7000 cr) from the US asset manager T Row Price along with existing investors, Softbank and Ant Financials,<strong><a href="https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/paytm-gets-1-billion-topup-in-latest-financing-round/articleshow/72216174.cms"> <u>as per the news published in, The Economic Times</u>.</a></strong> However, this funding has come up with clear instruction from investors, make the company profitable and bring IPO in the next 5 years, else they will be forced to sell their stakes to the rival company in the same business. The Indian start-ups like Oyo, Ola, Zomato, Swiggy, Paytm, etc. were burning cash from the start and focussing on capturing market share. They stayed afloat in the market due to continuous funding from investors. In the last 4-5 years, the Indian start-ups have seen valuation going in bubble state in spite of the companies not making any profit. We can say the private equity market was in bull state. However, the failure of We Work IPO and timid performance of Uber after listing has raised the question among the investors regarding the hefty valuation these start-ups command amidst continuous losses. Now every investor who is giving funding is asking the management of these companies to focus on generating cash instead of burning. The next 3-4 years would be, make and break for these start-ups. Coming back to Paytm, it has raised $1Billion at a hefty valuation of $16Billion ( Rs. 1.12 lakh crores) of market cap. To put this in context how big this valuation is, TCS the old Indian IT giant has a market cap of ~7 lakh crores and Reliance Industries, has a market cap of ~9 lakh crores. The Zomato has a market cap of ~$3.5 Billion, OYO has ~$10Billion, and OLA has ~$6.2Billion. Paytm, in the FY18-19, has made a loss of ~4000 Crores on the revenue of ~3300 Crores. The company is spending mainly on advertisements and discounts. The Paytm is facing stiff competition from Google Tej, Walmart backed Phone-Pay and Amazon Pay. However, the founder Vijay Shekhar is very much confident about the prospect of the company. He further stressed that certain businesses within Paytm, including payments and ticketing, are in the process of breaking even and hoping to make it profitable in the next couple of years.
ArcelorMittal's shares rose by 2.5percent on Friday, the day the Supreme Court cleared its acquisition of Essar Steel. That reaction may seem optimistic since its acquisition coincides with a rather difficult period for the global steel industry. Demand conditions have turned weak and so have steel prices even as the uncertainty due to the US-China trade war continues to linger. ArcelorMittal's bid for Essar Steel was valued over two years ago, when market conditions were far more favorable. But its investors have good reason to be optimistic. Gaining a foothold in India's attractive steel market India is one of the fastest-growing large markets for steel in the world. Sure, demand growth has slowed down in 2019 due to a poor outlook for sectors such as automobiles and real estate. But it's still robust at a projected 5percent in 2019 compared to 0.2percent for the world ex-China and 3.9percent if you include China. The European Union, where ArcelorMittal is headquartered is expected to see a 1.2percent decline. There is also the matter of global steel and mining companies finding it nearly impossible to secure a foothold in primary steel-making in India. They have had to be content with steel processing and marketing centers. That makes this acquisition significant, as the largest steel-maker in the world, with an output of 96.4mn tonnes in 2018, just a tad short of all of India's 96.7mn tonnes, has added about 7mn tonnes of steel output in India to its kitty. <span style="font-size: 14pt;"><strong>The acquisition structure</strong></span> ArcelorMittal and Nippon Steel will execute this acquisition through a joint venture to be formed with a debt-equity ratio of 2:1. While their respective equity share has not been disclosed, ArcelorMittal had said it expects the JV to be accounted for in the equity method. That is, it will be accounted for as an investment, and not a line-by-line addition on consolidation in which all costs and expenses, and all balance sheet items are included. Typically, in the equity method, the share of profit or loss attributable to ArcelorMittal will be included in its profit and loss account, and the value of the investment will reflect in its balance sheet. It could, therefore, be an equal JV with the sharing of management control. The ArcelorMittal JV will pay Rs42000crore as part of the resolution plan for Essar Steel. ArcelorMittal on its own has paid Rs 7469crore to the debtors of Uttam Galva and KSS Petron to become eligible as per the IBC law. The JV will also invest an additional Rs8000crore in Essar Steel, to meet its CAPEX and working capital requirements. In return, the ArcelorMittal JV will get a flat steel plant located on India's western coast, with a rated steel-making capacity of 10million tonnes. The location means it can access raw materials and export goods easily. It is also in the proximity of steel markets in adjoining states. <span style="font-size: 14pt;"><strong>Making the acquisition work</strong></span> A problem that ArcelorMittal will seek to fix is Essar Steel's under-utilized capacity levels. Against its rated capacity, it produced only 6.5mn tonnes of steel when the bids were invited but that has increased to nearly 7mn tonnes now. The ArcelorMittal JV will seek to increase this output to 8.5mn tonnes in the medium term, for which the Rs8000crore investment will be useful. In the longer run, it proposes to increase output to 12-15mn tonnes. The success of this plan will be crucial to give the ArcelorMittal JV good returns on its investment. What is crucial is its success in removing the bottlenecks that are standing in the way of Essar Steel attaining higher utilization levels. But that's not all. Higher output from Essar Steel may lead to an oversupplied domestic market and that could affect prices. Domestic steel producers enjoy a premium over imported steel prices. Market conditions are soft, especially for hot-rolled coils because of the declining output of automobiles and slowing of consumer durable offtake. Higher output during this period could put a further strain on prices unless production is exported. But exports don't fetch the same margins that domestic sales do. If steel prices fall, then margins will take a hit and that's a risk for the entire industry. Further, there are several infrastructure and utilities linked to the steel plant and that is under control of the Essar group. One such case is that of a company that owns the slurry pipeline, Odisha Slurry Pipeline Infrastructure, which has defaulted on its loans. There are others such as power supply contracts and cargo services contracts at ports. Now, ArcelorMittal could try and acquire some assets or make arrangements with these companies to continue the existing services at existing pricing. Any disruption on this front is a risk for the acquired steel plant. The next few quarters and years should bring more clarity on this aspect. One good development for ArcelorMittal is that the Supreme Court struck down the NCLAT judgment pertaining to the distribution of profits earned during insolvency too. The Supreme Court said the request for proposal provided for profits to remain with the debtor, and therefore the estimated Rs4000crore in Ebitda generated till March 2019 and subsequent profits will remain with Essar Steel. <strong><span style="font-size: 14pt;">Returns on the acquisition and bearing the debt load.</span></strong> The strategic importance of this acquisition for ArcelorMittal is linked to India's growing steel consumption demand. In FY20, the pace of growth has slowed down in line with the economy and that is a concern. The steel industry's growth is linked to both consumption and investment demand growing at a steady pace and while India has promise, the delivery on this front has been a bit patchy. The investments made by companies such as ArcelorMittal are a sign they expect the long term potential to be realized. But the price is stiff, considering the total sum spent on this investment is close to Rs58000crore for a steel plant with a capacity of 7million tonnes. If we take this as enterprise value and the Ebitda it is estimated to have earned during FY19, it works out to an EV/Ebitda of 14.5 times, while ArcelorMittal trades at an EV/Ebitda of 5.2times (source: Yahoo Finance). To make this acquisition work, ArcelorMittal will be hoping to ramp up capacity to the 12-15mn tonne level, with minimal additional investments, which is when the acquisition will begin to make sense as the Ebitda generated will increase significantly. Meanwhile, the acquisition could weigh on its balance sheet, depending on the structuring of the joint venture. A 50:50 equity share may lighten the load. Recently, Moody's changed ArcelorMittal's rating outlook to negative, citing deterioration in its credit profile due to falling steel prices and weak market conditions. It expects its leverage to increase further with the acquisition of Essar Steel. As of June, ArcelorMittal's net debt was $10billion and its investment in Essar Steel stands at about $4.6bn (the payout to debtors of Uttam Galva and KSS Petron and half of Rs 50,000crore), which is a significant addition to the net debt figure. The ArcelorMittal JV could ease the burden by listing Essar Steel in India once the dust settles on the acquisition and the steel cycle improves somewhat. Investors do have a decent appetite for well-managed steel stocks in India, chiefly due to the encouraging long term outlook for steel, and the recent consolidation in the steel industry. While an IPO means ceding some equity stake and managing one more listed entity, it can help lower debt. It can bring other benefits too. Consider this: Hindustan Unilever's market capitalization is 41percent of Unilever's market capitalization. Unilever managed to acquire GSK Consumer Healthcare's India business using equity as consideration. That's an option that could become available to ArcelorMittal as well. <span style="font-size: 14pt;"><strong>Source: Moneycontrol</strong></span>
Yesterday's decision from the Supreme Court is a big relief for creditors who were wandering from the last 2 years, first, in NCLT and then in, Supreme court, to get their dues from Essar Steel. <strong>Essar Steel</strong> is an integrated steel producer with an annual capacity of <strong>10 million tonnes</strong> with a strong presence in intensive steel consuming markets of Asia and North America. However, It has been for long, not been able to pay interest on loans taken from banks. Therefore, in 2017, the banks such as SBI, Canara, ICICI, Punjab National Bank and Standard Chartered had knocked on the door of NCLT to get their money back. <strong>Dues of Banks:</strong> <strong>(i)</strong> State Bank of India = 13220 cr <strong>(ii)</strong> Canara Bank = 3798 cr <strong>(iii)</strong> Punjab National Bank = 2936 Cr <strong>(iv)</strong> Edelweiss ARC = 8266 Cr <strong>(v)</strong> ICICI Bank = 2294 cr During the last two years, the Essar Steel case has seen lots of hiccups. Even after giving a 54000 cr resolution plan by Arcelor Mittal, Ruias the original promoters tried to delay the case by diverting the attention of NCLT court when they claimed to provide a better resolution plan and wants to get back the control of the company. However, <a href="https://economictimes.indiatimes.com/markets/stocks/news/blow-for-ruias-nclt-rejects-plea-challenging-essar-steel-sale-to-arcelormittal/articleshow/70071851.cms?from=mdr">NCLT rejects plea challenging Essar Steel sale to ArcelorMittal by Ruis in March 2019</a> <strong>“</strong>The NCLAT, while approving ArcelorMittal’s bid, was unhappy with the payout given to operational creditors as per the decision given by the Committee of Creditors. Operational creditors to the stressed steel have admitted claims of ₹4,976 crores against which they will receive only ₹1,200 crores under the current resolution plan, while Standard Chartered Bank, one of the formal lenders, said it has claims of ₹3,487 crores against which it will receive ₹60.71 crores. The rest of the RS 42,000 crore would go to the secured lenders.” <strong>Operational Creditors Vs Finacial Creditors?</strong> <strong>"Operational Creditors</strong>”- who provide goods or services including employment to the company. A raw material supplier is an example of the operational creditor. "<strong>Financial Creditors</strong>"- means who have given loans to the company to run its operations or for expansion. The bank is an example of the financial creditor. So accordingly, the NCLAT finally on July 5 gave judgment, that operational creditors should be treated on a par with financial creditors for distribution of funds from ArcelorMittal’s bid in the Essar Steel insolvency case. The appellate tribunal had ordered an equal distribution of funds among all classes of creditors, with financial and operational lenders having claims above ₹1 crore to recover 60.7% of their total dues. For financial creditors, it was a sharp haircut compared to 89.8% as per the CoC’s revised funds distribution plan. This above judgment was against the rule which says the first right on funds are of Secured creditors, then Unsecured creditors and finally to Operational creditors. The financial creditors then went to Supreme Court, and finally, the case has been settled wherein, it has said that “ “The Supreme Court has set aside the NCLAT judgment in Essar Steel case paving the way for distribution of claims as decided by the Committee of Creditors. The SC bench said the adjudicating authority cannot interfere with the commercial decision taken by the CoC and they can at most ask the committee to re-examine the resolution plan”. So, all have been said with regard to Financial and Operational creditors, but what about shareholders' fate? As per the resolution plan, the Arcelor Mittal will infuse Rs.8000 cr in the company for running its operation and make it profitable again. The company is already delisted from the stock exchange and we feel that there is no chance of listing it again. The reason being, the listing requires a lot of compliances and moreover, the company doesn't need funds as of now, the primary reason for knocking the door of exchanges. So existing shareholders can buy/sell their shares in the unlisted market, as we feel the demand will come once the company becomes profitable. However, the picture will be clearer in the coming time and we will keep updating the same here.
<span style="font-family: georgia, palatino, serif;">Japan’s Softbank, the investor in the Paytm, has laid down new norms, as a part of the latest funding round to be done by T Rowe, Ant Fin, and Softbank. T Rowe is likely to invest $150-$200 million in Paytm and total funds to be raised are close to $1Billion, as per source from Economic Times.</span> <span style="font-family: georgia, palatino, serif;"><strong>New Norms:</strong></span> <span style="font-family: georgia, palatino, serif;">The company should go public in the next 5 years, else, Softbank has a right to sell its stake to a rival company.</span> <span style="font-family: georgia, palatino, serif;">As per the report, it is mention that the Paytm has reached such a stage, where it needs to find a way to increase revenue and bring profitability. The Paytm lately facing stiff competition from Walmart Phone-Pe and Google Tej. The next big threat is coming from Facebook backed Watsapp wallet, which is slated to hit the Indian market by next year.</span> <span style="font-family: georgia, palatino, serif;">We at <strong>UnlistedZone</strong> viewed this as a necessary step, to avoid failure, such has happened in We-Work, where Softbank has a considerable investment. The We -Work IPO plans have failed miserably and its valuation has come down from $57 Billion to $8 Billion in just 3-4 months and has resulted in the loss of $4Billion to Softbank. The Fin-Tech companies can’t go alone on funding and must generate free-cash from the business to sustain in the longer run. Now all eyes would be on Vijay Shekhar, Founder of Paytm, as to how he will come out with the solution in the highly competitive environment to make Paytm profitable, which has shown a loss of ~Rs. 4000 cr in FY18-19. The challenge is huge. On one side you need growth and other side profitability. The next 1-2 years is make and break for Paytm.</span>
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. The 80% of the loan book comprises of JLG and Individual business loans followed by 16.9% in Retail Assets such as Commercial Vehicle Loan, Housing Loan, MSME loan, and loan against property. <!--more--> The company has shown exemplary performance in the year FY18-19 wherein, it has clocked Revenue of 599 Cr and PAT of 86 Cr as compared to 324 Cr and 10 Cr last year, respectively, representing a stupendous growth. In the FY18-19, the Bank has raised 248.44 cr through a private placement of 13,802,083 Equity shares at 180 per share. HDFC, HDFC Life, TIAA, IFC (International Finance Corporation), GAJA Capital etc. are the investors in the bank. Yesterday, the bank has come up with 6MFY20 financial results and they are even better than FY18-19. <div class="table-overflow-init"> <table width="100%"> <tbody> <tr> <td>Particulars (Crores)</td> <td>FY15</td> <td>FY16</td> <td>FY17</td> <td>FY18</td> <td>FY19</td> <td>6MFY20</td> </tr> <tr> <td>Advances</td> <td>582</td> <td>983</td> <td>834</td> <td>1596</td> <td>2711</td> <td>3208</td> </tr> <tr> <td>Gross NPA</td> <td>0.13%</td> <td>0.18%</td> <td>6.15%</td> <td>3.15%</td> <td>1.81%</td> <td style="text-align: center;">2.40%</td> </tr> <tr> <td>Revenue</td> <td>180</td> <td>225</td> <td>255</td> <td>325</td> <td>599.25</td> <td>412</td> </tr> <tr> <td>PAT</td> <td>19.9</td> <td>27.14</td> <td>15.1</td> <td>10.1</td> <td>86.6</td> <td>85.22</td> </tr> </tbody> </table> </div> The Advances, in the first 6M of FY20 , has gone up to 3208 cr as compared to 2711 cr in FY18-19. The Revenue, in the first 6M of FY20, has gone up to 600 Cr as compared to 412 cr in the full year of FY18-19. So overall very good growth given by bank. The book value as on 30.09.2019 stands at Rs. 117 per share. The current unlisted market price of the Suryoday Small Finance Bank is Rs. 280 per share, which means the shares are available at P/B multiple of 2.39x which is quite reasonable. The IPO is expected to hit the market by 2020.
<span style="font-family: georgia, palatino, serif;"><strong>(i)</strong> Nazara Technologies Ltd a leading global interactive gaming and digital sports media company has signed an Investment Agreement with Paper Boat Apps and its promoters on 11th October 2019 for investment up to Rs. 83.5 Crores in Paper Boat Apps, a Mumbai based indie studio.</span> <span style="font-family: georgia, palatino, serif;"><strong>(ii) </strong>The company intends to acquire a majority stake of 51% at a pre-money valuation of Rs. 154 Crores. The said acquisition is subject to the approval of shareholders at the General meeting of the Company. Paper Boat Apps is the creator and publisher of Kiddopia, an award-winning, subscription-based preschool edutainment app. The aforesaid acquisition is a part of a series of strategic investments made by the Company in various gaming Companies in order to expand the business inorganically and create value for the investors.</span> <span style="font-family: georgia, palatino, serif;"><strong>(iii)</strong> Further, the company believes that Kiddopia will address the concern where young children are found to consume digital content through their parent’s devices. Kiddopia offers a positive alternative while bringing high-quality, curated educational content packaged within an entertaining framework that keeps both kids healthy, and parents happy. Kiddopia will be leveraged to over 100 million users through the Nazara network.</span> <span style="font-family: georgia, palatino, serif;">Kiddopia Company Information Kiddopia offers a wide array of interactive games and activities that foster cognitive development, self-expression and also social-emotional learning. Till date, the app has been downloaded by more than 2.5 million parents around the world and has over 100,000 active subscribers. The break-even period is 7 months for a customer.</span> <span style="font-family: georgia, palatino, serif;"><strong>(iv)</strong> The company has grown 5x in the last 2 years and received immense recognition, awards and fame. Kiddopia has been awarded the Tilly-Wig Brain Child Award, Parents Choice Award, the National Parenting Product Award and many more. Kiddopia is completely ad-free and adheres to the highest standards of privacy and kid’s safety.</span> <span style="font-family: georgia, palatino, serif;"><strong>Nazara Tech Financials for FY18-19</strong></span> <span style="font-family: georgia, palatino, serif;">As per data compiled by the UnlistedZone team from MCA, the Nazara Tech has not yet filed Annual Returns and Financial reports for FY18-19. The same is expected to be done this month as the date of filing of MGT-7 and AOC-4 has been extended till 30.11.2019. The financials once updated, will be presented on our website for further analysis. </span>
<span style="font-family: georgia, palatino, serif;">The country's largest two-wheeler maker Hero Moto Corp on Tuesday said its board has approved an investment of up to Rs 450 crore in its associate company Hero FinCorp Ltd (HFCL).</span><!--more--> <span style="font-family: georgia, palatino, serif;">The company's board has considered and approved an investment of up to Rs 450 crore in HFCL by subscribing to the issue of shares by way of private placement in one or more tranches, Hero MotoCorp said in a regulatory filing.</span> <span style="font-size: 14pt;"><strong><span style="font-family: georgia, palatino, serif;">Source: Business Standard</span></strong></span>
<div id="container"> <div id="content" class="layout2"> <div id="group_0" class="group"> <div class="wrapper clearfix"> <div class="content-box clearfix"> <div class="wrapper clearfix"> <div class="top-section clearfix"> <div id="news_hd_71826796" class="post clearfix single-post "> <div><span class="subtle" style="font-family: georgia, palatino, serif;">Fino Payments Bank has recorded double the initial target for digital transactions in August followed by HDFC Bank that achieved 114% of its target for the month.</span></div> </div> <div> <div id="container"> <div id="content" class="layout2"> <div id="group_0" class="group"> <div class="wrapper clearfix"> <div class="content-box clearfix"> <div class="wrapper clearfix"> <div class="main-content clearfix"> <div class="inner-main"> <div id="news_dtl_71826796"> <div class="story-box story-detail"><article class="post clearfix single-post"> <div class="text"> <div class="section1"> <div class="Normal"><span style="font-family: georgia, palatino, serif;"> Fino Payments Bank topped the list in achieving the target for August with a score of 71, while HDFC Bank finished second with a score of 70, according to monthly data from the Ministry of Electronics and Information Technology (MeitY). The next three slots were taken by IDBI Bank, ICICI Bank, and Airtel Payments Bank, all with a score of 66. ET saw a copy of the report.</span></div> </div> <div> <div id="container"> <div id="content" class="layout2"> <div id="group_0" class="group"> <div class="wrapper clearfix"> <div class="content-box clearfix"> <div class="wrapper clearfix"> <div class="main-content clearfix"> <div class="inner-main"> <div id="news_dtl_71826796"> <div class="story-box story-detail"><article class="post clearfix single-post"> <div class="text"> <div class="section1"> <div class="Normal"> <span style="font-family: georgia, palatino, serif;">Paytm Payments Bank, which had finished third in July, slipped to 13th position in August but achieved 100% of its merchant onboarding target.</span> <div id="container"> <div id="content" class="layout2"> <div id="group_0" class="group"> <div class="wrapper clearfix"> <div class="content-box clearfix"> <div class="wrapper clearfix"> <div class="main-content clearfix"> <div class="inner-main"> <div id="news_dtl_71826796"> <div class="story-box story-detail"><article class="post clearfix single-post"> <div class="text"> <div class="section1"> <div class="Normal"> <span style="font-family: georgia, palatino, serif;">MeitY sent a letter to banks on October 21 revising the individual targets of digital payments and merchant onboarding set for multiple banks. ET has seen a copy of the letter.</span> <span style="font-family: georgia, palatino, serif;">In absolute terms, Fino has been given a target of achieving 220 million digital transactions in the current year.</span> <span style="font-family: georgia, palatino, serif;">“Currently, we do around $1.1 billion worth of transactions every month, a significant number of them facilitated through digital platforms such as AePS, micro ATM, UPI, IMPS, etc,” said Ashish Ahuja, a chief business officer at Fino Payments Bank. “Achieving over 200% of the target and topping the MeitY rankings once again that includes the biggest names in banking, indicates great performance and high level of consistency from Fino.”</span> <span style="font-family: georgia, palatino, serif;">Besides the number of transactions, MeitY in the letter sent to banks has also specified new targets for merchant onboarding in rural areas and the Northeast.</span> <div id="container"> <div id="content" class="layout2"> <div id="group_0" class="group"> <div class="wrapper clearfix"> <div class="content-box clearfix"> <div class="wrapper clearfix"> <div class="main-content clearfix"> <div class="inner-main"> <div id="news_dtl_71826796"> <div class="story-box story-detail"><article class="post clearfix single-post"> <div class="text"> <div class="section1"> <div class="Normal"> <span style="font-family: georgia, palatino, serif;">Commenting on the revision of target a Paytm spokesperson said: “We continue to lead MeitY's monthly scorecard and have regularly superseded our targets. The revision of digital payments allocation is an encouraging move and reflects the trust on us to expand the digital payments ecosystem across the country. We are seeing huge traction and are confident of achieving the increased target.”</span> <span style="font-family: georgia, palatino, serif;">Banks that have been given revised targets include Canara Bank, RBL Bank, and Fino Payments Bank.</span> </div> </div> </div> </article></div> </div> </div> </div> </div> </div> </div> </div> </div> </div> <span style="font-size: 14pt;"><strong><span style="font-family: georgia, palatino, serif;">Source: <span style="line-height: 1.66;">ETtech </span></span></strong></span> </div> </div> </div> </article></div> </div> </div> </div> </div> </div> </div> </div> </div> </div> </div> </div> </div> </article></div> </div> </div> </div> </div> </div> </div> </div> </div> </div> </div> </div> </article></div> </div> </div> </div> </div> </div> </div> </div> </div> </div> </div> </div> </div> </div> </div> </div> </div> </div>
<span style="font-family: georgia, palatino, serif;">Online payment services company Paytm is in talks with US asset manager T Rowe Price to lead a financing round aimed at raising $1 billion, according to two people privy to the matter. </span> <span style="font-family: georgia, palatino, serif;">The latest funding round may value Paytm at $13-15 billion, the people said. </span> <span style="font-family: georgia, palatino, serif;">T Rowe Price is in talks to invest around $150-200 million, with existing investors SoftBank and Chinese e-commerce giant Alibaba expected to infuse the rest of the capital. Some Saudi-based funds may also join in,” said one person on condition of anonymity. </span> <span style="font-family: georgia, palatino, serif;">The Vijay Shekhar Sharma-led company has been in the market since early this year to shore up funds amid mounting losses and growing competition in the digital payments sector posed by Google Pay and Walmart-owned PhonePe.</span> <span style="font-family: georgia, palatino, serif;">The size of the funding round has been trimmed from the $2 billion that Noida-based One97 Communication, Paytm’s parent, had set out to raise, people said. ET first reported in its March 28 edition that Paytm was eyeing $1.5-2 billion in new capital. If the deal goes through, it will be a rare bet for T Rowe Price, which manages more than $1 trillion in assets, on a privately held Indian technology startup, after its investment in Flipkart.</span> <span style="font-family: georgia, palatino, serif;">Paytm’s Sharma and SoftBank did not comment on the new financing. </span> <span style="font-family: georgia, palatino, serif;">Emailed queries sent to T Rowe Price and Alibaba Group on Monday evening did not elicit a response till press time.</span> <span style="font-family: georgia, palatino, serif;">SoftBank, which first invested in the company in 2017, holds a 19% stake, while the Alibaba Group, through Ant Financial and directly, owns 38% of One97 Communications. People familiar with the development said Paytm may not see a significant bump up in valuation during the fundraising. The company was said to be valued at $16 billion in a secondary round earlier this year, although Paytm did not confirm this. A secondary sale is when an existing investor sells shares to another and the money does not come to the company.</span> <span style="font-family: georgia, palatino, serif;">Paytm’s last equity funding was in 2018, when Warren Buffett-led Berkshire Hathaway invested $300 million, ascribing a $10 billion valuation. It’s been tough going for Paytm in the previous year as losses widened in the previous financial year as revenue increased marginally. One97 Communications posted a ₹3,959.6 crore net loss for FY19 against ₹1,490 crores a year earlier, according to details the company shared with investors and as ET reported in September. </span> <span style="font-family: georgia, palatino, serif;">Besides the losses, a stream of top management executives quit and its e-commerce business under Paytm Mall was being audited by EY for a cashback scam.</span> <span style="font-family: georgia, palatino, serif;">In recent media interactions, Sharma has stressed his company’s strategy to cut losses and turn profitable amid a rising chorus against the wave of cash-guzzling and money-losing startups in India and Silicon Valley. Sharma has also spoken about potential IPO. Paytm claims its margins are now growing positively and it has registered an increase in revenue across payments, commerce, and financial services. The company has said it is moving away from the discount-led, peer-to-peer payments vertical to focus on online and offline merchants. Cashbacks and subsidies have helped drive online payment transactions on the consumer side along with incentives to encourage adoption by merchants.</span> <span style="font-family: georgia, palatino, serif;"><strong>Source: Economic Times</strong></span>
Hero FinCorp, part of the ‘Hero’ group is an Indian NBFC. It is engaged primarily in financing two-wheelers for Hero Motocorp, the largest motorcycle maker in the world. To diversify its base, it has forayed into providing loans against property and in commercial lending. It has an employee base of 1500.<!--more--> The Company has one wholly-owned subsidiary company viz. Hero Housing Finance Limited (“HHFL”). HHFL had started its lending operations from April 2018. It is an all-inclusive housing finance company providing hassle-free home loans PAN India which includes the following products to its customers: (i) Home Loans, (ii) Loan Against Property, etc. HHFL has shown tremendous growth and touched loans of INR 556.75 crore during the first year of its operation in FY19. The AUM has reached nearly 20,000 crores in the current financial year. Loan mix consists: a.) Retail Individuals - 39%. b.) Retail Businesses - 30%. c.) Commercial Loans – 31%. <strong>Financials Highlight of Half-Yearly Results:</strong> <table> <tbody> <tr> <td>Particulars (Crores)</td> <td>6M FY19</td> <td>6MFY18</td> <td>12MFY18-19</td> </tr> <tr> <td>Total Revenue</td> <td>1668</td> <td>1078</td> <td>2492</td> </tr> <tr> <td>Expense</td> <td>1438</td> <td>947</td> <td>2078</td> </tr> <tr> <td>Profit/Loss Before Tax (PBT)</td> <td>244</td> <td>130</td> <td>413</td> </tr> <tr> <td>Profit/Loss After Tax (PAT)</td> <td>163.56</td> <td>82.42</td> <td>267</td> </tr> <tr> <td>Earnings per share (EPS)</td> <td>14.41</td> <td>8.32</td> <td>25.97</td> </tr> </tbody> </table> a) The company has been resilient and strengthened its footing in these tough times in the automotive industry. b) The PAT has increased to 168 crores compared to 83 crores in the H2 of FY-2018-19. A 100% increase in profits. c) The capital adequacy ratio maintained close to the 19% mark. d) The debt to equity ratio stood at a modest 4.5 e) The ROA for the past 5 years maintained at 1.6%. If the company tries to expand its asset base, the return on the asset base would be decent. After the NBFC crisis triggered by IL&FS, many of the shady NBFCs have stopped their operations or gone under. Only a few with proper discipline continued to prosper and Hero FinCorp is one amongst them. For more detail about Hero-Fin Corp please visit <span style="text-decoration: underline;"><a href="https://unlistedzone.com/shares/hero-fincorp-limited-share-price-buy-sell-unlisted-shares-of-hero-fincorp/"><span style="font-size: 18pt;">Link</a> Disclaimer: This article is only for education purposes, and not to be construed as investment advice. Please consult your advisor before making an investment.
<span style="font-size: 12pt; font-family: georgia, palatino, serif;"><strong>As per the report published in Economic Times on May 30, 2019</strong></span> <span style="font-size: 12pt; font-family: georgia, palatino, serif;"><strong>(i)</strong> Safecrop Holdings, a consortium of WestBridge Capital, Madison Capital and investor Rakesh Jhunjhunwala, is set to gain control of Star Health & Allied Insurance Co in what’s pegged as the sector’s largest M&A transaction in India. “The consortium of investors will acquire a controlling stake under the proposed deal for a total equity valuation of <strong>Rs 6,500 crore</strong>,” said V Jagannathan, chairman and managing director of the private health insurer.</span> <span style="font-size: 12pt; font-family: georgia, palatino, serif;"><strong>(ii)</strong> The transaction will include a timeline for this, said people with knowledge of the matter. Star Health had a health insurance market share of 10.6% at the end of March 2018. The existing investors include promoter Star Health Investments, ICICI Venture, Tata Capital, and Oman Insurance Company among others. Jagannathan and some of his colleagues along with other individuals are also shareholders.</span> <span style="font-size: 12pt; font-family: georgia, palatino, serif;"><strong>(iii)</strong> The consortium had invested Rs 350 crore in the company in December 2018. However, the valuation this time would be different.</span> <span style="font-size: 12pt; font-family: georgia, palatino, serif;"><strong>(iv)</strong> The company had Rs 5,400 crore of new business with a profit of Rs 275 crore in FY18-19. New business registered a growth of about 30% growth, compared with Rs 4,161crore in the previous year.</span> <span style="font-family: georgia, palatino, serif; font-size: 12pt;"><strong>(v)</strong> The Insurance Regulatory and Development Authority of India has approved the deal, Jagannathan said, for which an agreement was entered into last year.</span>
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