Analysis, guides and explainers on India's unlisted market — from IPO pipelines to ESOP liquidity.
<h2><strong>The Background</strong></h2> <p>In September 2023, Apollo Fashion International Limited was incorporated. In June 2024, it acquired the fashion division from Apollo Green Energy Limited through a Business Transfer Agreement (BTA). The company manufactures footwear, leather garments, and accessories for fashion brands.</p> <p>Let’s walk through what the annual report tells us.</p> <hr /> <h2><strong>Part 1: The Business Transfer Agreement</strong></h2> <h3><strong>The Transaction Structure</strong></h3> <p>On July 9, 2024, Apollo Fashion signed a Business Transfer Agreement with Apollo Green Energy Limited, with an effective date of June 1, 2024.</p> <p><strong>Assets Acquired:</strong></p> <ul> <li>Property, plant and equipment: ₹23.54 crores</li> <li>Intangible assets under development: ₹6.31 crores</li> <li>Inventories: ₹52.33 crores</li> <li>Trade receivables: ₹49.19 crores</li> <li>Cash and bank balances: ₹1.30 crores</li> <li>Other assets: ₹6.93 crores</li> <li><strong>Total assets:</strong> ₹139.6 crores (approximately)</li> </ul> <p><strong>Liabilities Assumed:</strong></p> <ul> <li>Vehicle loans: ₹1.0 crores</li> <li>Employee benefit obligations: ₹1.47 crores</li> <li>Short-term borrowings: ₹28.76 crores</li> <li>Trade payables: ₹30.32 crores</li> <li>Other liabilities: ₹16.28 crores (approximately)</li> <li><strong>Total liabilities:</strong> ₹76.96 crores</li> </ul> <p><strong>Net Assets Acquired:</strong> ₹62.66 crores</p> <p><strong>Consideration Paid:</strong></p> <ul> <li>Cash: ₹61.50 crores</li> <li>Equity shares (1,11,67,200 shares at ₹30 each): ₹33.50 crores</li> <li><strong>Total consideration:</strong> ₹95.00 crores</li> </ul> <p><strong>Capital Reserve:</strong> The difference between net assets (₹62.66 crores) and consideration paid (₹95.00 crores) resulted in a capital reserve of ₹32.34 crores (negative).</p> <h3><strong>The Accounting Treatment</strong></h3> <p>The annual report notes that this is a common control business combination under Ind AS 103. Therefore, all business transactions relating to the fashion division are included in Apollo Fashion’s financials from September 6, 2023 (incorporation date), even though the legal transfer happened on June 1, 2024.</p> <p>However, for tax and other legal purposes, transactions from September 6, 2023 to June 1, 2024 remain in Apollo Green Energy’s books.</p> <hr /> <h2><strong>Part 2: Financial Performance</strong></h2> <h3><strong>The Reporting Period Caveat</strong></h3> <p><strong>FY 2023-24</strong> covers September 6, 2023 to March 31, 2024—<strong>only 7 months</strong>, not a full year. This makes year-on-year comparisons tricky.</p> <p>For FY 2022-23, the annual report provides P&L data when the fashion division was still part of Apollo Green Energy.</p> <h3><strong>Profit & Loss Statement</strong></h3> <table style="width: 55.4969%; height: 348.333px;"> <thead> <tr style="height: 36.6667px;"> <th style="text-align: center; width: 43.4104%; height: 36.6667px;"><strong>Particulars</strong></th> <th style="text-align: center; width: 18.0766%; height: 36.6667px;"><strong>FY 2022-23</strong></th> <th style="text-align: center; width: 18.0766%; height: 36.6667px;"><strong>FY 2023-24</strong></th> <th style="text-align: center; width: 18.0766%; height: 36.6667px;"><strong>FY 2024-25</strong></th> </tr> </thead> <tbody> <tr style="height: 18.3333px;"> <td style="text-align: center; width: 43.4104%; height: 18.3333px;"> </td> <td style="text-align: center; width: 18.0766%; height: 18.3333px;">(Full year)</td> <td style="text-align: center; width: 18.0766%; height: 18.3333px;">(7 months)</td> <td style="text-align: center; width: 18.0766%; height: 18.3333px;">(Full year)</td> </tr> <tr style="height: 18.3333px;"> <td style="text-align: center; width: 43.4104%; height: 18.3333px;"><strong>Revenue from Operations</strong></td> <td style="text-align: center; width: 18.0766%; height: 18.3333px;">₹208 Cr</td> <td style="text-align: center; width: 18.0766%; height: 18.3333px;">₹89.98 Cr</td> <td style="text-align: center; width: 18.0766%; height: 18.3333px;">₹182.44 Cr</td> </tr> <tr style="height: 18.3333px;"> <td style="text-align: center; width: 43.4104%; height: 18.3333px;">Cost of Material Consumed</td> <td style="text-align: center; width: 18.0766%; height: 18.3333px;">₹153 Cr</td> <td style="text-align: center; width: 18.0766%; height: 18.3333px;">₹60.76 Cr</td> <td style="text-align: center; width: 18.0766%; height: 18.3333px;"> ₹136 Cr</td> </tr> <tr style="height: 18.3333px;"> <td style="text-align: center; width: 43.4104%; height: 18.3333px;">Change in Inventory</td> <td style="text-align: center; width: 18.0766%; height: 18.3333px;">(₹1.78 Cr)</td> <td style="text-align: center; width: 18.0766%; height: 18.3333px;">(₹1.38 Cr)</td> <td style="text-align: center; width: 18.0766%; height: 18.3333px;">(₹0.29 Cr)</td> </tr> <tr style="height: 18.3333px;"> <td style="text-align: center; width: 43.4104%; height: 18.3333px;"><strong>Gross Margins</strong></td> <td style="text-align: center; width: 18.0766%; height: 18.3333px;">27.10%</td> <td style="text-align: center; width: 18.0766%; height: 18.3333px;">34%</td> <td style="text-align: center; width: 18.0766%; height: 18.3333px;">~25.25%</td> </tr> <tr style="height: 18.3333px;"> <td style="text-align: center; width: 43.4104%; height: 18.3333px;">Employee Benefit Expenses</td> <td style="text-align: center; width: 18.0766%; height: 18.3333px;">₹20.58 Cr</td> <td style="text-align: center; width: 18.0766%; height: 18.3333px;">₹5.85 Cr</td> <td style="text-align: center; width: 18.0766%; height: 18.3333px;">₹14.83 Cr</td> </tr> <tr style="height: 18.3333px;"> <td style="text-align: center; width: 43.4104%; height: 18.3333px;">Other Expenses</td> <td style="text-align: center; width: 18.0766%; height: 18.3333px;">₹3.60 Cr</td> <td style="text-align: center; width: 18.0766%; height: 18.3333px;">₹6.89 Cr</td> <td style="text-align: center; width: 18.0766%; height: 18.3333px;">₹9.29 Cr</td> </tr> <tr style="height: 18.3333px;"> <td style="text-align: center; width: 43.4104%; height: 18.3333px;"><strong>EBITDA</strong></td> <td style="text-align: center; width: 18.0766%; height: 18.3333px;">₹22.30 Cr</td> <td style="text-align: center; width: 18.0766%; height: 18.3333px;">₹17.86 Cr</td> <td style="text-align: center; width: 18.0766%; height: 18.3333px;">₹21.95 Cr</td> </tr> <tr style="height: 18.3333px;"> <td style="text-align: center; width: 43.4104%; height: 18.3333px;"><strong>OPM (EBITDA margin)</strong></td> <td style="text-align: center; width: 18.0766%; height: 18.3333px;">10.70%</td> <td style="text-align: center; width: 18.0766%; height: 18.3333px;">19.85%</td> <td style="text-align: center; width: 18.0766%; height: 18.3333px;">12.03%</td> </tr> <tr style="height: 18.3333px;"> <td style="text-align: center; width: 43.4104%; height: 18.3333px;">Other Income</td> <td style="text-align: center; width: 18.0766%; height: 18.3333px;">₹0.39Cr</td> <td style="text-align: center; width: 18.0766%; height: 18.3333px;">₹0.31 Cr</td> <td style="text-align: center; width: 18.0766%; height: 18.3333px;">₹3.51 Cr</td> </tr> <tr style="height: 18.3333px;"> <td style="text-align: center; width: 43.4104%; height: 18.3333px;">Finance Cost</td> <td style="text-align: center; width: 18.0766%; height: 18.3333px;">₹3.70 Cr</td> <td style="text-align: center; width: 18.0766%; height: 18.3333px;">₹3.70 Cr</td> <td style="text-align: center; width: 18.0766%; height: 18.3333px;">₹5.08 Cr</td> </tr> <tr style="height: 18.3333px;"> <td style="text-align: center; width: 43.4104%; height: 18.3333px;">Depreciation & Amortization</td> <td style="text-align: center; width: 18.0766%; height: 18.3333px;">₹2.09 Cr</td> <td style="text-align: center; width: 18.0766%; height: 18.3333px;">₹2.09 Cr</td> <td style="text-align: center; width: 18.0766%; height: 18.3333px;">₹2.90 Cr</td> </tr> <tr style="height: 18.3333px;"> <td style="text-align: center; width: 43.4104%; height: 18.3333px;"><strong>EBIT</strong></td> <td style="text-align: center; width: 18.0766%; height: 18.3333px;">₹20.21 Cr</td> <td style="text-align: center; width: 18.0766%; height: 18.3333px;">₹15.05 Cr</td> <td style="text-align: center; width: 18.0766%; height: 18.3333px;">₹19.05 Cr</td> </tr> <tr style="height: 18.3333px;"> <td style="text-align: center; width: 43.4104%; height: 18.3333px;"><strong>PBT</strong></td> <td style="text-align: center; width: 18.0766%; height: 18.3333px;">₹16.88 Cr</td> <td style="text-align: center; width: 18.0766%; height: 18.3333px;">₹16.25 Cr</td> <td style="text-align: center; width: 18.0766%; height: 18.3333px;">₹17.47 Cr</td> </tr> <tr style="height: 18.3333px;"> <td style="text-align: center; width: 43.4104%; height: 18.3333px;">Tax Expense</td> <td style="text-align: center; width: 18.0766%; height: 18.3333px;">₹0</td> <td style="text-align: center; width: 18.0766%; height: 18.3333px;">₹4.10</td> <td style="text-align: center; width: 18.0766%; height: 18.3333px;">₹4.40 Cr</td> </tr> <tr style="height: 18.3333px;"> <td style="text-align: center; width: 43.4104%; height: 18.3333px;"><strong>PAT</strong></td> <td style="text-align: center; width: 18.0766%; height: 18.3333px;">₹16.88 Cr</td> <td style="text-align: center; width: 18.0766%; height: 18.3333px;">₹12.15 Cr</td> <td style="text-align: center; width: 18.0766%; height: 18.3333px;">₹13.07 Cr</td> </tr> <tr style="height: 18.3333px;"> <td style="text-align: center; width: 43.4104%; height: 18.3333px;"><strong>NPM (Net margin)</strong></td> <td style="text-align: center; width: 18.0766%; height: 18.3333px;">8.1%</td> <td style="text-align: center; width: 18.0766%; height: 18.3333px;">13.50%</td> <td style="text-align: center; width: 18.0766%; height: 18.3333px;">7.16%</td> </tr> </tbody> </table> <p><strong>Note:</strong> FY23-24 EBITDA margin of 19.85% is based on 7-month actuals. The annualized equivalent would be different.</p> <h3><strong>Key Financial Metrics</strong></h3> <p><strong>For FY 2024-25:</strong></p> <ul> <li>Revenue grew from ₹89.98 Cr (7 months in FY24) to ₹182.44 Cr (full year in FY25)</li> <li>EBITDA increased from ₹17.86 Cr to ₹21.95 Cr</li> <li>Net profit increased from ₹12.15 Cr to ₹13.07 Cr</li> </ul> <hr /> <h2><strong>Part 3: Balance Sheet</strong></h2> <h3><strong>Assets (as of March 31, 2025)</strong></h3> <table> <thead> <tr> <th style="text-align: center;"><strong>Particulars</strong></th> <th style="text-align: center;"><strong>March 31, 2024</strong></th> <th style="text-align: center;"><strong>March 31, 2025</strong></th> </tr> </thead> <tbody> <tr> <td style="text-align: center;"><strong>Non-Current Assets</strong></td> <td style="text-align: center;"> </td> <td style="text-align: center;"> </td> </tr> <tr> <td style="text-align: center;">Property, Plant & Equipment</td> <td style="text-align: center;">₹21.71 Cr</td> <td style="text-align: center;">₹23.50 Cr</td> </tr> <tr> <td style="text-align: center;">Right of Use Assets</td> <td style="text-align: center;">₹3.46 Cr</td> <td style="text-align: center;">₹2.68 Cr</td> </tr> <tr> <td style="text-align: center;">Intangible Assets</td> <td style="text-align: center;">₹0.21 Cr</td> <td style="text-align: center;">₹0.42 Cr</td> </tr> <tr> <td style="text-align: center;">Other Financial Assets</td> <td style="text-align: center;">₹0.56 Cr</td> <td style="text-align: center;">₹0.64 Cr</td> </tr> <tr> <td style="text-align: center;"><strong>Total Non-Current</strong></td> <td style="text-align: center;"><strong>₹25.94 Cr</strong></td> <td style="text-align: center;"><strong>₹27.24 Cr</strong></td> </tr> <tr> <td style="text-align: center;"><strong>Current Assets</strong></td> <td style="text-align: center;"> </td> <td style="text-align: center;"> </td> </tr> <tr> <td style="text-align: center;">Inventories</td> <td style="text-align: center;">₹52.55 Cr</td> <td style="text-align: center;">₹48.58 Cr</td> </tr> <tr> <td style="text-align: center;">Trade Receivables</td> <td style="text-align: center;">₹21.71 Cr</td> <td style="text-align: center;">₹46.75 Cr</td> </tr> <tr> <td style="text-align: center;">Cash & Cash Equivalents</td> <td style="text-align: center;">₹5.08 Cr</td> <td style="text-align: center;">₹0.04 Cr</td> </tr> <tr> <td style="text-align: center;">Other Bank Balances</td> <td style="text-align: center;">₹0.32 Cr</td> <td style="text-align: center;">₹12.00 Cr</td> </tr> <tr> <td style="text-align: center;">Other Financial Assets</td> <td style="text-align: center;">₹1.58 Cr</td> <td style="text-align: center;">₹7.48 Cr</td> </tr> <tr> <td style="text-align: center;">Other Current Assets</td> <td style="text-align: center;">₹5.76 Cr</td> <td style="text-align: center;">₹7.10 Cr</td> </tr> <tr> <td style="text-align: center;"><strong>Total Current</strong></td> <td style="text-align: center;"><strong>₹87.00 Cr</strong></td> <td style="text-align: center;"><strong>₹121.96 Cr</strong></td> </tr> <tr> <td style="text-align: center;"><strong>TOTAL ASSETS</strong></td> <td style="text-align: center;"><strong>₹112.94 Cr</strong></td> <td style="text-align: center;"><strong>₹149.20 Cr</strong></td> </tr> </tbody> </table> <h3><strong>Equity & Liabilities (as of March 31, 2025)</strong></h3> <table> <thead> <tr> <th style="text-align: center;"><strong>Particulars</strong></th> <th style="text-align: center;"><strong>March 31, 2024</strong></th> <th style="text-align: center;"><strong>March 31, 2025</strong></th> </tr> </thead> <tbody> <tr> <td style="text-align: center;"><strong>Equity</strong></td> <td style="text-align: center;"> </td> <td style="text-align: center;"> </td> </tr> <tr> <td style="text-align: center;">Equity Share Capital</td> <td style="text-align: center;">₹14.47 Cr</td> <td style="text-align: center;">₹29.77 Cr</td> </tr> <tr> <td style="text-align: center;">Other Equity</td> <td style="text-align: center;">₹13.38 Cr</td> <td style="text-align: center;">₹19.81 Cr</td> </tr> <tr> <td style="text-align: center;"><strong>Total Equity</strong></td> <td style="text-align: center;"><strong>₹27.86 Cr</strong></td> <td style="text-align: center;"><strong>₹49.57 Cr</strong></td> </tr> <tr> <td style="text-align: center;"><strong>Non-Current Liabilities</strong></td> <td style="text-align: center;"> </td> <td style="text-align: center;"> </td> </tr> <tr> <td style="text-align: center;">Borrowings</td> <td style="text-align: center;">₹0.06 Cr</td> <td style="text-align: center;">₹2.16 Cr</td> </tr> <tr> <td style="text-align: center;">Lease Liabilities</td> <td style="text-align: center;">₹2.62 Cr</td> <td style="text-align: center;">₹2.25 Cr</td> </tr> <tr> <td style="text-align: center;">Provisions</td> <td style="text-align: center;">₹1.12 Cr</td> <td style="text-align: center;">₹1.36 Cr</td> </tr> <tr> <td style="text-align: center;">Deferred Tax Liabilities</td> <td style="text-align: center;">₹0.16 Cr</td> <td style="text-align: center;">₹0.40 Cr</td> </tr> <tr> <td style="text-align: center;"><strong>Total Non-Current</strong></td> <td style="text-align: center;"><strong>₹3.95 Cr</strong></td> <td style="text-align: center;"><strong>₹6.17 Cr</strong></td> </tr> <tr> <td style="text-align: center;"><strong>Current Liabilities</strong></td> <td style="text-align: center;"> </td> <td style="text-align: center;"> </td> </tr> <tr> <td style="text-align: center;">Borrowings</td> <td style="text-align: center;">₹14.90 Cr</td> <td style="text-align: center;">₹63.66 Cr</td> </tr> <tr> <td style="text-align: center;">Lease Liabilities</td> <td style="text-align: center;">₹0.91 Cr</td> <td style="text-align: center;">₹0.69 Cr</td> </tr> <tr> <td style="text-align: center;">Trade Payables (MSME)</td> <td style="text-align: center;">₹2.38 Cr</td> <td style="text-align: center;">₹3.72 Cr</td> </tr> <tr> <td style="text-align: center;">Trade Payables (Others)</td> <td style="text-align: center;">₹5.82 Cr</td> <td style="text-align: center;">₹20.19 Cr</td> </tr> <tr> <td style="text-align: center;">Other Financial Liabilities</td> <td style="text-align: center;">₹51.81 Cr</td> <td style="text-align: center;">₹1.35 Cr</td> </tr> <tr> <td style="text-align: center;">Other Current Liabilities</td> <td style="text-align: center;">₹0.67 Cr</td> <td style="text-align: center;">₹1.68 Cr</td> </tr> <tr> <td style="text-align: center;">Provisions</td> <td style="text-align: center;">₹0.67 Cr</td> <td style="text-align: center;">₹0.68 Cr</td> </tr> <tr> <td style="text-align: center;">Current Tax Liabilities</td> <td style="text-align: center;">₹3.97 Cr</td> <td style="text-align: center;">₹1.48 Cr</td> </tr> <tr> <td style="text-align: center;"><strong>Total Current</strong></td> <td style="text-align: center;"><strong>₹81.12 Cr</strong></td> <td style="text-align: center;"><strong>₹93.46 Cr</strong></td> </tr> <tr> <td style="text-align: center;"><strong>TOTAL LIABILITIES</strong></td> <td style="text-align: center;"><strong>₹85.08 Cr</strong></td> <td style="text-align: center;"><strong>₹99.63 Cr</strong></td> </tr> </tbody> </table> <h3><strong>Key Balance Sheet Observations</strong></h3> <p><strong>Working Capital Items:</strong></p> <ul> <li>Trade receivables increased 115% from ₹21.71 Cr to ₹46.75 Cr</li> <li>Inventories decreased 8% from ₹52.55 Cr to ₹48.58 Cr</li> <li>Cash declined 99% from ₹5.08 Cr to ₹0.04 Cr</li> <li>Other bank balances increased to ₹12.00 Cr (primarily fixed deposits)</li> </ul> <p><strong>Debt:</strong></p> <ul> <li>Current borrowings increased 327% from ₹14.90 Cr to ₹63.66 Cr</li> <li>Non-current borrowings increased from ₹0.06 Cr to ₹2.16 Cr</li> <li>Total debt: ₹65.82 Cr (96.7% is short-term)</li> </ul> <p><strong>Trade Payables:</strong></p> <ul> <li>Total payables increased 192% from ₹8.20 Cr to ₹23.91 Cr</li> </ul> <p><strong>Liquidity Ratios:</strong></p> <ul> <li>Current ratio: 1.30x (March 2025) vs. 1.06x (March 2024)</li> <li>Quick ratio: 0.78x (March 2025) vs. 0.42x (March 2024)</li> </ul> <hr /> <h2><strong>Part 4: Cash Flow Statement</strong></h2> <h3><strong>Cash Flow Summary (FY 2024-25)</strong></h3> <table> <thead> <tr> <th style="text-align: center;"><strong>Activity</strong></th> <th style="text-align: center;"><strong>FY 2023-24</strong></th> <th style="text-align: center;"><strong>FY 2024-25</strong></th> </tr> </thead> <tbody> <tr> <td style="text-align: center;"> </td> <td style="text-align: center;">(7 months)</td> <td style="text-align: center;">(Full year)</td> </tr> <tr> <td style="text-align: center;"><strong>Operating Activities</strong></td> <td style="text-align: center;"> </td> <td style="text-align: center;"> </td> </tr> <tr> <td style="text-align: center;">Profit before tax</td> <td style="text-align: center;">₹16.25 Cr</td> <td style="text-align: center;">₹17.47 Cr</td> </tr> <tr> <td style="text-align: center;">Adjustments (D&A, Finance, etc.)</td> <td style="text-align: center;">₹5.59 Cr</td> <td style="text-align: center;">₹7.28 Cr</td> </tr> <tr> <td style="text-align: center;">Working capital changes</td> <td style="text-align: center;">(₹3.74 Cr)</td> <td style="text-align: center;">(₹9.55 Cr)</td> </tr> <tr> <td style="text-align: center;">Tax paid</td> <td style="text-align: center;">₹0</td> <td style="text-align: center;">(₹1.93 Cr)</td> </tr> <tr> <td style="text-align: center;"><strong>Net from Operations</strong></td> <td style="text-align: center;"><strong>₹16.12 Cr</strong></td> <td style="text-align: center;"><strong>₹13.27 Cr</strong></td> </tr> <tr> <td style="text-align: center;"> </td> <td style="text-align: center;"> </td> <td style="text-align: center;"> </td> </tr> <tr> <td style="text-align: center;"><strong>Investing Activities</strong></td> <td style="text-align: center;"> </td> <td style="text-align: center;"> </td> </tr> <tr> <td style="text-align: center;">Purchase of fixed assets</td> <td style="text-align: center;">(₹5.08 Cr)</td> <td style="text-align: center;">(₹0.93 Cr)</td> </tr> <tr> <td style="text-align: center;">Business acquisition payment</td> <td style="text-align: center;">(₹9.80 Cr)</td> <td style="text-align: center;">(₹51.70 Cr)</td> </tr> <tr> <td style="text-align: center;">Fixed deposits (net)</td> <td style="text-align: center;">₹0.92 Cr</td> <td style="text-align: center;">(₹11.68 Cr)</td> </tr> <tr> <td style="text-align: center;">Other investing activities</td> <td style="text-align: center;">₹0.05 Cr</td> <td style="text-align: center;">₹0.33 Cr</td> </tr> <tr> <td style="text-align: center;"><strong>Net from Investing</strong></td> <td style="text-align: center;"><strong>(₹10.85 Cr)</strong></td> <td style="text-align: center;"><strong>(₹67.80 Cr)</strong></td> </tr> <tr> <td style="text-align: center;"> </td> <td style="text-align: center;"> </td> <td style="text-align: center;"> </td> </tr> <tr> <td style="text-align: center;"><strong>Financing Activities</strong></td> <td style="text-align: center;"> </td> <td style="text-align: center;"> </td> </tr> <tr> <td style="text-align: center;">Equity share issuance</td> <td style="text-align: center;">₹14.47 Cr</td> <td style="text-align: center;">₹4.13 Cr</td> </tr> <tr> <td style="text-align: center;">Borrowings (net increase)</td> <td style="text-align: center;">(₹13.74 Cr)</td> <td style="text-align: center;">₹47.78 Cr</td> </tr> <tr> <td style="text-align: center;">Long-term borrowings</td> <td style="text-align: center;">(₹0.05 Cr)</td> <td style="text-align: center;">₹3.08 Cr</td> </tr> <tr> <td style="text-align: center;">Lease payments</td> <td style="text-align: center;">(₹0.51 Cr)</td> <td style="text-align: center;">(₹0.91 Cr)</td> </tr> <tr> <td style="text-align: center;">Finance costs paid</td> <td style="text-align: center;">(₹1.67 Cr)</td> <td style="text-align: center;">(₹4.58 Cr)</td> </tr> <tr> <td style="text-align: center;"><strong>Net from Financing</strong></td> <td style="text-align: center;"><strong>₹-1.5 Cr</strong></td> <td style="text-align: center;"><strong>₹49.49 Cr</strong></td> </tr> <tr> <td style="text-align: center;"> </td> <td style="text-align: center;"> </td> <td style="text-align: center;"> </td> </tr> <tr> <td style="text-align: center;"><strong>Net Change in Cash</strong></td> <td style="text-align: center;"><strong>₹3.77 Cr</strong></td> <td style="text-align: center;"><strong>(₹5.04 Cr)</strong></td> </tr> </tbody> </table> <h3><strong>Where the Cash Went</strong></h3> <p><strong>Cash inflows:</strong></p> <ul> <li>Operations generated ₹13.27 Cr</li> <li>Short-term borrowings increased by ₹47.78 Cr</li> <li>Equity raised ₹4.13 Cr</li> </ul> <p><strong>Cash outflows:</strong></p> <ul> <li>Business transfer payment: ₹51.70 Cr</li> <li>Fixed deposits: ₹11.68 Cr</li> <li>Finance costs: ₹4.58 Cr</li> <li>Working capital absorption: ₹9.55 Cr</li> </ul> <p><strong>Result:</strong> Cash balance declined from ₹5.08 Cr to ₹0.04 Cr</p> <hr /> <h2><strong>Part 5: Related Party Transactions</strong></h2> <h3><strong>Related Parties</strong></h3> <p>The annual report identifies the following related parties:</p> <p><strong>Holding Company:</strong></p> <ul> <li>RK Eternova Private Limited (formerly Amit Dyechem Private Limited)</li> </ul> <p><strong>Enterprises controlled/significantly influenced by Key Managerial Personnel:</strong></p> <ul> <li>Apollo Green Energy Limited</li> <li>AIL Consultant Private Limited</li> <li>Global Propmart Private Limited</li> <li>OSK Holdings (AIL) Private Limited</li> <li>XTCY World Private Limited</li> <li>Vinayak Infosys Private Limited</li> <li>Adsal Exim Private Limited</li> </ul> <p><strong>Key Managerial Personnel:</strong></p> <ul> <li>Mr. Raaja Kanwar (Chairman)</li> <li>Mr. Shiraz Askari (Wholetime Director)</li> <li>Others as listed in the report</li> </ul> <h3><strong>Related Party Transactions (FY 2024-25)</strong></h3> <table> <thead> <tr> <th style="text-align: center;"><strong>Nature of Transaction</strong></th> <th style="text-align: center;"><strong>Party</strong></th> <th style="text-align: center;"><strong>Amount (₹ Lakhs)</strong></th> </tr> </thead> <tbody> <tr> <td style="text-align: center;"><strong>Sales</strong></td> <td style="text-align: center;">Apollo Green Energy Ltd</td> <td style="text-align: center;">8,336.60</td> </tr> <tr> <td style="text-align: center;"> </td> <td style="text-align: center;">XTCY World Pvt Ltd</td> <td style="text-align: center;">0.10</td> </tr> <tr> <td style="text-align: center;"> </td> <td style="text-align: center;">Mr. Shiraz Askari</td> <td style="text-align: center;">0.29</td> </tr> <tr> <td style="text-align: center;"><strong>Purchases</strong></td> <td style="text-align: center;">Apollo Green Energy Ltd</td> <td style="text-align: center;">11.13</td> </tr> <tr> <td style="text-align: center;"><strong>Job Work</strong></td> <td style="text-align: center;">Apollo Green Energy Ltd</td> <td style="text-align: center;">1.50</td> </tr> <tr> <td style="text-align: center;"><strong>Fabrication Charges</strong></td> <td style="text-align: center;">Apollo Green Energy Ltd</td> <td style="text-align: center;">446</td> </tr> <tr> <td style="text-align: center;"><strong>Rent Paid</strong></td> <td style="text-align: center;">Vinayak Infosys Pvt Ltd</td> <td style="text-align: center;">12.50</td> </tr> <tr> <td style="text-align: center;"> </td> <td style="text-align: center;">Adsal Exim Pvt Ltd</td> <td style="text-align: center;">2.20</td> </tr> <tr> <td style="text-align: center;"><strong>Borrowings Received</strong></td> <td style="text-align: center;">RK Family Trust</td> <td style="text-align: center;">400.00</td> </tr> <tr> <td style="text-align: center;"><strong>Borrowings Repaid</strong></td> <td style="text-align: center;">RK Family Trust</td> <td style="text-align: center;">400.00</td> </tr> <tr> <td style="text-align: center;"><strong>Shares Issued</strong></td> <td style="text-align: center;">Apollo Green Energy Ltd</td> <td style="text-align: center;">3,350.16</td> </tr> <tr> <td style="text-align: center;"> </td> <td style="text-align: center;">RK Family Trust</td> <td style="text-align: center;">400.00</td> </tr> <tr> <td style="text-align: center;"><strong>Director Sitting Fees</strong></td> <td style="text-align: center;">Independent Directors</td> <td style="text-align: center;">4.80</td> </tr> </tbody> </table> <h3><strong>Outstanding Balances (March 31, 2025)</strong></h3> <table> <thead> <tr> <th style="text-align: center;"><strong>Nature</strong></th> <th style="text-align: center;"><strong>Party</strong></th> <th style="text-align: center;"><strong>Amount (₹ Lakhs)</strong></th> </tr> </thead> <tbody> <tr> <td style="text-align: center;"><strong>Trade Receivables</strong></td> <td style="text-align: center;">Apollo Green Energy Ltd</td> <td style="text-align: center;">1,776.32</td> </tr> <tr> <td style="text-align: center;"> </td> <td style="text-align: center;">XTCY World Pvt Ltd</td> <td style="text-align: center;">0.12</td> </tr> <tr> <td style="text-align: center;"> </td> <td style="text-align: center;">Mr. Shiraz Askari</td> <td style="text-align: center;">0.09</td> </tr> <tr> <td style="text-align: center;"><strong>Other Recoverables</strong></td> <td style="text-align: center;">Apollo Green Energy Ltd</td> <td style="text-align: center;">27.73</td> </tr> <tr> <td style="text-align: center;"><strong>Security Deposit</strong></td> <td style="text-align: center;">Vinayak Infosys Pvt Ltd</td> <td style="text-align: center;">7.19</td> </tr> </tbody> </table> <h3><strong>What the Report Says About These Transactions</strong></h3> <p>The annual report notes:</p> <blockquote> <p><em>“As per the Business Transfer Agreement (BTA) with Apollo Green Energy Limited (AGEL), contracts with customers and suppliers are to be transferred to the Company. Until such transfer, AGEL has continued to record revenue and purchases with customers and vendors till the date of transfer on behalf of the Company. During this period, AGEL received payments from customers and made corresponding payments to vendors, and the Company has recognised back-to-back sales and purchases with AGEL to reflect the underlying economic substance. AGEL does not retain any profit margin on these transactions.”</em></p> </blockquote> <p><strong>The receivable from Apollo Green Energy:</strong> ₹17.76 crores represents amounts due from these back-to-back transactions.</p> <hr /> <h2><strong>Part 6: Debt Structure</strong></h2> <h3><strong>Borrowing Details (March 31, 2025)</strong></h3> <p><strong>Non-Current Borrowings:</strong></p> <ul> <li>Vehicle loans from banks and financial institutions: ₹3.14 Cr (gross)</li> <li>Less: Current maturity: ₹0.98 Cr</li> <li><strong>Net non-current borrowings:</strong> ₹2.16 Cr</li> </ul> <p><strong>Current Borrowings:</strong></p> <ul> <li>Cash credit from banks (RBL Bank, ICICI Bank): ₹49.18 Cr</li> <li>Packing credit (export finance): ₹12.57 Cr</li> <li>Factoring facility (Drip Capital): ₹0.93 Cr</li> <li>Current maturity of long-term borrowings: ₹0.98 Cr</li> <li><strong>Total current borrowings:</strong> ₹63.66 Cr</li> </ul> <p><strong>Total Debt:</strong> ₹65.82 Cr</p> <h3><strong>Security and Terms</strong></h3> <p><strong>RBL Bank Limited:</strong></p> <ul> <li>Security: Hypothecation of current assets; second charge on properties owned by Apollo Green Energy Ltd and related entities; personal guarantee of Mr. Raaja Kanwar</li> <li>Interest rate: Repo rate + 5.00%</li> </ul> <p><strong>ICICI Bank Limited:</strong></p> <ul> <li>Security: Charge on fixed deposits; first pari passu charge on movable fixed assets and current assets; corporate guarantee of Apollo Green Energy Ltd; personal guarantee of Mr. Raaja Kanwar</li> <li>Interest rate: Repo rate + 3.00%</li> </ul> <p><strong>Factoring Facility (Drip Capital):</strong></p> <ul> <li>Export bill discounting facility</li> <li>Commission: 0.5% to 5% depending on tenor</li> </ul> <p><strong>Working Capital Limits:</strong> The company has sanctioned working capital limits of ₹65.00 crores from banks (ICICI Bank and RBL Bank).</p> <h3><strong>Debt Ratios (March 31, 2025)</strong></h3> <ul> <li>Debt-to-Equity: 1.33x</li> <li>Gearing Ratio: 57%</li> <li>Net Debt to EBITDA: 2.95x</li> <li>Interest Coverage Ratio: 3.75x</li> </ul> <hr /> <h2><strong>Part 7: Share Capital Changes</strong></h2> <h3><strong>Authorized Share Capital</strong></h3> <p><strong>Increases during FY24-25:</strong></p> <ul> <li>May 15, 2024: Increased by ₹25.00 Cr (50 lakh shares)</li> <li>January 24, 2025: Increased by ₹28.00 Cr (2.80 crore shares)</li> <li><strong>Total authorized capital:</strong> ₹53.00 Cr (5.30 crore shares of ₹10 each)</li> </ul> <h3><strong>Issued Share Capital</strong></h3> <p><strong>Share issuances during FY24-25:</strong></p> <table> <thead> <tr> <th style="text-align: center;"><strong>Date</strong></th> <th style="text-align: center;"><strong>Type</strong></th> <th style="text-align: center;"><strong>Shares</strong></th> <th style="text-align: center;"><strong>Price</strong></th> <th style="text-align: center;"><strong>Amount</strong></th> </tr> </thead> <tbody> <tr> <td style="text-align: center;">April 24, 2024</td> <td style="text-align: center;">Rights Issue</td> <td style="text-align: center;">31,25,000</td> <td style="text-align: center;">₹10</td> <td style="text-align: center;">₹3.13 Cr</td> </tr> <tr> <td style="text-align: center;">May 24, 2024</td> <td style="text-align: center;">Preferential Allotment</td> <td style="text-align: center;">10,00,000</td> <td style="text-align: center;">₹10</td> <td style="text-align: center;">₹1.00 Cr</td> </tr> <tr> <td style="text-align: center;">February 14, 2025</td> <td style="text-align: center;">Preferential Allotment (non-cash)</td> <td style="text-align: center;">1,11,67,200</td> <td style="text-align: center;">₹30</td> <td style="text-align: center;">₹33.50 Cr</td> </tr> </tbody> </table> <p><strong>As of March 31, 2025:</strong></p> <ul> <li>Paid-up capital: ₹29.77 Cr (2.98 crore shares of ₹10 each)</li> </ul> <h3><strong>Shareholding Pattern (March 31, 2025)</strong></h3> <table> <thead> <tr> <th><strong>Shareholder</strong></th> <th><strong>Shares</strong></th> <th><strong>% Holding</strong></th> </tr> </thead> <tbody> <tr> <td>Apollo Green Energy Ltd</td> <td>1,11,67,200</td> <td>37.52%</td> </tr> <tr> <td>RK Eternova Pvt Ltd</td> <td>63,15,386</td> <td>21.22%</td> </tr> <tr> <td>Kanwar Family Admin Services Pvt Ltd</td> <td>25,80,000</td> <td>8.67%</td> </tr> <tr> <td>Mr. Raaja Kanwar</td> <td>15,36,451</td> <td>5.16%</td> </tr> <tr> <td>Mrs. Kamayani Singh Kanwar</td> <td>12,00,002</td> <td>4.03%</td> </tr> <tr> <td>Other promoters/promoter group</td> <td>1,58,161</td> <td>0.53%</td> </tr> <tr> <td><strong>Total Promoter Group</strong></td> <td>~2.29 Cr</td> <td>~77%</td> </tr> <tr> <td><strong>Public Shareholders</strong></td> <td>~0.69 Cr</td> <td>~23%</td> </tr> </tbody> </table> <hr /> <p> </p> <h2><strong>Part 8: Other Disclosures</strong></h2> <h3><strong>Contingent Liabilities</strong></h3> <p>The annual report states there are no significant contingent liabilities as of March 31, 2025.</p> <h3><strong>Capital Commitments</strong></h3> <p>No material capital commitments are disclosed.</p> <h3><strong>Auditor’s Report</strong></h3> <p>The statutory auditors, S S Kothari Mehta & Co. LLP, issued an unqualified audit opinion. The report notes:</p> <ul> <li>They did not audit the financial information of Apollo Green Energy Limited (Fashion Division) for prior periods, which were audited by other auditors</li> <li>There are no defaults in repayment of loans or interest</li> <li>No amounts are required to be transferred to the Investor Education and Protection Fund</li> </ul> <h3><strong>Director’s Report Highlights</strong></h3> <ul> <li>The company’s business operations commenced effectively from June 1, 2024</li> <li>No dividend was declared for the year</li> <li>Audit Committee and Nomination & Remuneration Committee were constituted on December 2, 2024</li> <li>The company is not required to appoint internal auditors, secretarial auditors, or cost auditors</li> <li>No complaints were reported under the Sexual Harassment Act</li> <li>Foreign exchange earnings: ₹67.17 Cr; Foreign exchange outgo: ₹11.33 Cr</li> </ul> <hr /> <h2><strong>Summary</strong></h2> <p>Apollo Fashion International Limited's FY 2024-25 annual report documents a company in its first full year post-demerger, with revenue of ₹182.44 crores and net profit of ₹13.07 crores. The company acquired the fashion division from Apollo Green Energy Limited through a ₹95 crore Business Transfer Agreement (₹61.5 crore cash + ₹33.5 crore in shares) for net assets valued at ₹62.66 crores. The financials show total debt of ₹65.82 crores—96.7% of which is short-term—against equity of ₹49.57 crores, with cash declining from ₹5.08 crores to ₹0.04 crores during the year. Significantly, ₹83.37 crores (45.7% of revenue) came from sales to Apollo Green Energy, with ₹17.76 crores in receivables outstanding from the parent company as of March 31, 2025. The promoter group holds approximately 77% of the equity, with Apollo Green Energy owning 37.52%. Notably, while earlier share issuances during the year were priced at ₹10 per share (face value), the 1.12 crore shares issued to Apollo Green Energy as part of the BTA consideration were priced at ₹30 per share—a valuation basis that remains unexplained in the annual report. The annual report, audited by S S Kothari Mehta & Co. LLP with an unqualified opinion, presents the baseline financial position of a business navigating its transition from subsidiary operations to standalone entity while maintaining substantial commercial relationships with its former parent.</p>
<h3>Introduction</h3> <p>In a strategic move reflecting sharper business focus, <strong>Apollo Green Energy Limited</strong> has officially transferred its <strong>fashion division</strong> to a new entity — <strong>Apollo Fashion International Limited</strong> — under a <strong>Business Transfer Agreement (BTA)</strong>.<br />This transaction marks a key corporate restructuring within the Apollo Group, separating its fashion and renewable energy interests for greater operational independence and value creation.</p> <h3>Background: The Rationale Behind the Transfer</h3> <p>Apollo Green Energy, primarily known for its renewable energy operations, previously housed a growing fashion business manufacturing <strong>footwear, leather garments, and accessories</strong> for global brands.<br />To streamline operations and enable sector-specific growth, Apollo Green <strong>spun out the fashion vertical</strong> into a standalone company — <strong>Apollo Fashion International Limited (AFIL)</strong>.</p> <p>The move aligns with a broader strategy seen across Indian conglomerates — <strong>divesting non-core businesses</strong> to unlock value, attract dedicated investors, and strengthen financial transparency.</p> <h3>Key Highlights of the Business Transfer Agreement</h3> <h4>1. Nature of Transaction</h4> <ul data-spread="false"> <li> <p>The deal is categorized as a <strong>Business Transfer Agreement</strong> and treated as a <strong>common control business combination</strong> under <strong>Ind AS 103</strong>.</p> </li> <li> <p>Both entities remain under the same promoter ownership, but Apollo Fashion now operates as a <strong>separate legal and operational unit</strong>.</p> </li> </ul> <h4>2. Assets and Liabilities Transferred</h4> <p>Apollo Fashion acquired <strong>net assets worth ₹62.66 crore</strong>, including:</p> <ul data-spread="false"> <li> <p><strong>Property, Plant & Equipment:</strong> ₹23.54 crore</p> </li> <li> <p><strong>Inventories:</strong> ₹52.33 crore</p> </li> <li> <p><strong>Trade Receivables:</strong> ₹49.19 crore<br />Offset by:</p> </li> <li> <p><strong>Short-Term Borrowings:</strong> ₹28.76 crore</p> </li> <li> <p><strong>Trade Payables:</strong> ₹30.32 crore</p> </li> <li> <p><strong>Other Liabilities:</strong> Remaining portion</p> </li> </ul> <p>This comprehensive transfer ensures Apollo Fashion inherits the full operating base of the former division — manufacturing facilities, inventories, receivables, and obligations.</p> <h4>3. Deal Consideration</h4> <p>The total deal value stood at <strong>₹95 crore</strong>, comprising both <strong>cash and equity</strong>:</p> <p><img src="https://unlistedzone.com/storage/knowledge-logo/app_image-1762836076.jpg" alt="" width="600" height="365" /></p> <p>The share allotment on <strong>February 14, 2025</strong>, gave Apollo Green Energy a <strong>37.52% equity stake</strong> in Apollo Fashion, ensuring continued strategic alignment.</p> <h4>4. Resulting Capital Reserve</h4> <p>Since the consideration (₹95 crore) exceeded the net assets acquired (₹62.66 crore), Apollo Fashion recorded a <strong>capital reserve of ₹32.34 crore</strong> — a reflection of the premium attributed to the brand value, customer relationships, and business potential of the fashion division.</p> <h3>Operational Continuity and Related Party Transactions</h3> <p>Even after the transfer, <strong>operational interlinkages</strong> remain.</p> <ul data-spread="false"> <li> <p>Around <strong>45.7% of Apollo Fashion’s FY25 revenue</strong> stems from sales to Apollo Green Energy.</p> </li> <li> <p>Until all contracts are fully novated, Apollo Green continues handling certain administrative and supply chain functions <strong>on behalf of Apollo Fashion</strong>, without profit margins.<br />This ensures a <strong>smooth transition</strong> while maintaining commercial continuity.</p> </li> </ul> <h3>Ownership and Corporate Structure</h3> <p>Post-transaction, the <strong>promoter group (including Apollo Green)</strong> collectively holds about <strong>77%</strong> of Apollo Fashion’s equity.<br />This ownership pattern ensures both entities remain strategically aligned, while allowing Apollo Fashion to independently raise capital or pursue partnerships in the fashion domain.</p> <h3>Unlisted Market Performance (as of November 2025)</h3> <p>Both entities — <strong>Apollo Green Energy</strong> and <strong>Apollo Fashion International</strong> — remain <strong>unlisted</strong> but actively trade on leading pre-IPO platforms.</p> <p><img src="https://unlistedzone.com/storage/knowledge-logo/app_image-1762836108.jpg" alt="" width="600" height="277" /></p> <p>Prices are driven by investor sentiment, financial performance, and sector outlooks. The separation enables investors to <strong>value each business independently</strong> — fashion as a consumer growth story, and energy as a sustainable infrastructure play.</p> <h3>Strategic Impact</h3> <ul data-spread="false"> <li> <p><strong>Apollo Green Energy:</strong> Gains sharper focus on its renewable energy expansion, especially in EV charging, solar EPC, and battery tech.</p> </li> <li> <p><strong>Apollo Fashion International:</strong> Benefits from dedicated management, brand partnerships, and operational agility.</p> </li> <li> <p><strong>Investors:</strong> Gain clearer visibility into each segment’s financial performance and risk profile.</p> </li> </ul> <p>This move mirrors a growing corporate trend in India — <strong>unlocking value through business carve-outs</strong> — similar to how conglomerates like Aditya Birla or Tata Group separate sector-specific units.</p> <h3>Conclusion</h3> <p>The Apollo Green–Apollo Fashion restructuring represents a <strong>textbook case of strategic business segregation</strong> under common control.<br />By carving out the fashion division into an independent entity valued at ₹95 crore, the Apollo Group enables <strong>focused growth, cleaner financials, and distinct investor propositions</strong>.</p> <p>While Apollo Green deepens its green energy focus, Apollo Fashion steps forward as a specialized player in India’s fast-growing fashion manufacturing space — both poised to benefit from this realignment.</p>
<p data-start="582" data-end="865">The name <strong data-start="591" data-end="611">RRP Defense Ltd.</strong> has suddenly started appearing across exchange filings and investor discussions.<br data-start="692" data-end="695" />But behind the new identity lies an older listed company — <strong data-start="754" data-end="780">Euro Asia Exports Ltd.</strong> — that was acquired and renamed before beginning its current wave of transactions.</p> <p data-start="867" data-end="995">Let’s look carefully at how this restructuring unfolded, what’s actually happening inside RRP Defense, and what the numbers say.</p> <hr data-start="997" data-end="1000" /> <h3 data-start="1002" data-end="1050"><strong data-start="1006" data-end="1050">1. From Euro Asia Exports to RRP Defense</strong></h3> <p data-start="1052" data-end="1259">Originally, <strong data-start="1064" data-end="1090">Euro Asia Exports Ltd.</strong> was a small, listed trading company.<br data-start="1127" data-end="1130" />In 2024, a group led by the <strong data-start="1158" data-end="1207">RRP Group (Rajendra Chodankar and associates)</strong> acquired management control of Euro Asia Exports.</p> <p data-start="1261" data-end="1293">After the takeover, the company:</p> <ul data-start="1294" data-end="1521"> <li data-start="1294" data-end="1343"> <p data-start="1296" data-end="1343"><strong data-start="1296" data-end="1316">Changed its name</strong> to <strong data-start="1320" data-end="1340">RRP Defense Ltd.</strong>,</p> </li> <li data-start="1344" data-end="1434"> <p data-start="1346" data-end="1434"><strong data-start="1346" data-end="1378">Altered its business objects</strong> to focus on defence manufacturing and technology, and</p> </li> <li data-start="1435" data-end="1521"> <p data-start="1437" data-end="1521">Began the process of merging other <strong data-start="1472" data-end="1494">RRP group entities</strong> into the listed vehicle.</p> </li> </ul> <p data-start="1523" data-end="1686">In short, this isn’t a newly listed defence manufacturer — it’s an <strong data-start="1590" data-end="1615">existing listed shell</strong> being used as a holding platform to bring in private group businesses.</p> <hr data-start="1688" data-end="1691" /> <h3 data-start="1693" data-end="1746"><strong data-start="1697" data-end="1746">2. The RRP Drones Acquisition (November 2025)</strong></h3> <p data-start="1748" data-end="1927">On <strong data-start="1751" data-end="1772">7th November 2025</strong>, RRP Defense’s Board approved the <strong data-start="1807" data-end="1872">acquisition of 100% equity in RRP Drones Innovation Pvt. Ltd.</strong>, a recently formed drone company based in Navi Mumbai.</p> <p data-start="1929" data-end="1983">The deal was structured as a <strong data-start="1958" data-end="1972">share swap</strong>, not cash:</p> <ul data-start="1984" data-end="2170"> <li data-start="1984" data-end="2066"> <p data-start="1986" data-end="2066"><strong data-start="1986" data-end="2011">1.27 crore new shares</strong> of RRP Defense will be issued at <strong data-start="2045" data-end="2063">₹178 per share</strong>,</p> </li> <li data-start="2067" data-end="2126"> <p data-start="2069" data-end="2126">In exchange for all <strong data-start="2089" data-end="2109">2.83 lakh shares</strong> of RRP Drones.</p> </li> <li data-start="2127" data-end="2170"> <p data-start="2129" data-end="2170">Total consideration: <strong data-start="2150" data-end="2167">₹226.88 crore</strong>.</p> </li> </ul> <p data-start="2172" data-end="2267">After the allotment, <strong data-start="2193" data-end="2245">RRP Drones will become a wholly owned subsidiary</strong> of the listed entity.</p> <hr data-start="2269" data-end="2272" /> <h3 data-start="2274" data-end="2306"><strong data-start="2278" data-end="2306">3. The Valuation Picture</strong></h3> <p data-start="2308" data-end="2348">Before the acquisition, RRP Defense had:</p> <ul data-start="2349" data-end="2485"> <li data-start="2349" data-end="2387"> <p data-start="2351" data-end="2387"><strong data-start="2351" data-end="2384">1.37 crore shares outstanding</strong>,</p> </li> <li data-start="2388" data-end="2420"> <p data-start="2390" data-end="2420"><strong data-start="2390" data-end="2405">Share price</strong> around ₹944,</p> </li> <li data-start="2421" data-end="2485"> <p data-start="2423" data-end="2485"><strong data-start="2423" data-end="2448">Market capitalization</strong> of approximately <strong data-start="2466" data-end="2482">₹1,350 crore</strong>.</p> </li> </ul> <p data-start="2487" data-end="2596">After issuing 1.27 crore new shares for the swap, the total share count will rise to <strong data-start="2572" data-end="2593">2.64 crore shares</strong>.</p> <p data-start="2598" data-end="2761">If we simply add the ₹226.9 crore value of RRP Drones to the existing ₹1,350 crore market cap, the <strong data-start="2697" data-end="2727">combined implied valuation</strong> becomes about <strong data-start="2742" data-end="2758">₹1,575 crore</strong>.</p> <p data-start="2763" data-end="2814">That gives a <strong data-start="2776" data-end="2810">post-deal fair value per share</strong> of:</p> <p><span class="katex-display"><span class="katex"><span class="katex-mathml">₹1,575 crore÷2.64 crore shares=₹595 per share (approx.)</span></span></span></p> <p data-start="2913" data-end="3226">So, even though the current trading price of RRP Defense is ₹944, its <strong data-start="2983" data-end="3014">fair post-acquisition value</strong> works out closer to ₹595 per share.<br data-start="3050" data-end="3053" />This implies that the market is already <strong data-start="3093" data-end="3133">pricing in future growth assumptions</strong> — possibly from upcoming mergers or new defence projects — rather than present fundamentals.</p> <hr data-start="3228" data-end="3231" /> <h3 data-start="3233" data-end="3283"><strong data-start="3237" data-end="3283">4. Upcoming Merger with RRP S4E Innovation</strong></h3> <p data-start="3285" data-end="3523">Alongside this acquisition, the Board also discussed merging another group company, <strong data-start="3369" data-end="3396">RRP S4E Innovation Ltd.</strong>, into RRP Defense.<br data-start="3415" data-end="3418" />A three-member committee has been formed to study the merger structure, valuation, and fairness report.</p> <p data-start="3525" data-end="3575">If approved, the merged company would consolidate:</p> <ul data-start="3576" data-end="3791"> <li data-start="3576" data-end="3650"> <p data-start="3578" data-end="3650"><strong data-start="3578" data-end="3613">RRP Drones Innovation Pvt. Ltd.</strong> – Drone manufacturing and training</p> </li> <li data-start="3651" data-end="3717"> <p data-start="3653" data-end="3717"><strong data-start="3653" data-end="3680">RRP S4E Innovation Ltd.</strong> – Electronics and embedded systems</p> </li> <li data-start="3718" data-end="3791"> <p data-start="3720" data-end="3791"><strong data-start="3720" data-end="3769">RRP Defense Ltd. (formerly Euro Asia Exports)</strong> – The listed parent</p> </li> </ul> <p data-start="3793" data-end="3868">However, no merger ratio or valuation report for S4E has yet been released.</p> <hr data-start="3870" data-end="3873" /> <h3 data-start="3875" data-end="3915"><strong data-start="3879" data-end="3915">5. What This Means for Investors</strong></h3> <p data-start="3917" data-end="4128">RRP Defense’s recent activity is part of a <strong data-start="3960" data-end="4010">reverse acquisition and consolidation strategy</strong> — where an existing listed company is used as a vehicle to bring multiple private entities under one public umbrella.</p> <p data-start="4130" data-end="4205">Such structures are <strong data-start="4150" data-end="4166">not uncommon</strong>, but they often raise questions about:</p> <ul data-start="4206" data-end="4362"> <li data-start="4206" data-end="4263"> <p data-start="4208" data-end="4263">The <strong data-start="4212" data-end="4233">operational scale</strong> of the incoming businesses,</p> </li> <li data-start="4264" data-end="4308"> <p data-start="4266" data-end="4308">The <strong data-start="4270" data-end="4301">justification of valuations</strong>, and</p> </li> <li data-start="4309" data-end="4362"> <p data-start="4311" data-end="4362">The <strong data-start="4315" data-end="4338">actual revenue base</strong> of the merged entity.</p> </li> </ul> <p data-start="4364" data-end="4618">Until the company discloses <strong data-start="4392" data-end="4427">audited consolidated financials</strong> for FY26 post-merger, it will remain difficult to assess whether the current ₹1,350 crore market cap (or the post-deal ₹595/share fair value) reflects business reality or market speculation.</p> <hr data-start="4620" data-end="4623" /> <h3 data-start="4625" data-end="4659"><strong data-start="4629" data-end="4659">6. Snapshot of the Numbers</strong></h3> <p><strong data-start="4629" data-end="4659"><img src="https://unlistedzone.com/storage/knowledge-logo/app_image-1762518575.jpg" alt="" width="652" height="377" /></strong></p> <div class="_tableContainer_1rjym_1"> <div class="group _tableWrapper_1rjym_13 flex w-fit flex-col-reverse" tabindex="-1"> </div> </div> <hr data-start="5075" data-end="5078" /> <h3 data-start="5080" data-end="5101"><strong data-start="5084" data-end="5101">7. Final Word</strong></h3> <p data-start="5103" data-end="5118">To summarize:</p> <ul data-start="5119" data-end="5483"> <li data-start="5119" data-end="5228"> <p data-start="5121" data-end="5228"><strong data-start="5121" data-end="5141">RRP Defense Ltd.</strong> was formerly <strong data-start="5155" data-end="5181">Euro Asia Exports Ltd.</strong>, a listed company acquired by the RRP Group.</p> </li> <li data-start="5229" data-end="5347"> <p data-start="5231" data-end="5347">The new promoters are now consolidating their private ventures — RRP Drones and RRP S4E — into this listed entity.</p> </li> <li data-start="5348" data-end="5483"> <p data-start="5350" data-end="5483">On paper, the combined value after the drone acquisition stands near <strong data-start="5419" data-end="5435">₹1,575 crore</strong>, implying a <strong data-start="5448" data-end="5480">fair per-share value of ₹595</strong>.</p> </li> </ul> <p data-start="5485" data-end="5700">While the structure may look ambitious, investors should watch for <strong data-start="5552" data-end="5618">financial disclosure, audit transparency, and operational data</strong> from these newly merged businesses before assuming this valuation is justified.</p> <p data-start="5702" data-end="5772">At the moment, <strong data-start="5717" data-end="5771">the story is more about restructuring than revenue</strong>.</p>
<p data-source-line="5-5">NSE's latest results reveal the true cost of SEBI's regulatory tightening on derivatives trading. Behind the headline numbers lie two major one-time items that tell a more complex story.</p> <h2 data-source-line="7-7">A) The Headline Numbers</h2> <ul data-source-line="9-12"> <li data-source-line="9-9"><strong>Revenue:</strong> ₹7,709 crore (down 15% YoY)<br /><br /></li> <li data-source-line="10-10"><strong>Reported PAT:</strong> ₹5,022 crore (down 12% YoY)<br /><br /></li> <li data-source-line="11-12"><strong>Operating Margin:</strong> 77% (normalized)</li> </ul> <h2 data-source-line="13-13">B) The Two One-Time Items That Matter</h2> <p data-source-line="15-15"><strong>1. SEBI Settlement Provision: -₹1,297 Crore</strong></p> <p data-source-line="17-17">A one-time charge for the legacy colocation and dark fiber matter from 2015-16. SEBI's approval is still pending.</p> <p data-source-line="19-19"><strong>2. NSDL Stake Sale Profit: +₹1,201 Crore</strong></p> <p data-source-line="21-21">NSE booked a one-time gain from selling its stake in NSDL.</p> <h2 data-source-line="23-23">C) What's the Real Performance?</h2> <p data-source-line="25-25">When you remove both exceptional items, here's the truth:</p> <p data-source-line="27-27"><strong>Normalized Core PAT: ~₹5,092 crore (down 11% from ₹5,704 crore)</strong></p> <p data-source-line="29-29">The core business genuinely took a hit. This isn't just accounting - it's the real impact of SEBI's F&O regulations.</p> <h2 data-source-line="31-31">D) Where's the Pain Coming From?</h2> <h3 id="transaction-charges-collapsed" tabindex="-1" data-source-line="33-33">Transaction Charges Collapsed</h3> <p data-source-line="35-35">Transaction charges fell <strong>18% to ₹5,935 crore</strong>, driven by massive volume declines:</p> <div class="table-container"> </div> <div class="table-container"><img src="https://unlistedzone.com/storage/knowledge-logo/app_image-1762497273.jpg" alt="" width="600" height="377" /></div> <p data-source-line="44-44"><strong>Why?</strong> SEBI's measures to curb speculation:</p> <ul data-source-line="45-50"> <li data-source-line="45-45">Bigger contract sizes<br /><br /></li> <li data-source-line="46-46">Fewer weekly expiries (only one index instead of multiple stocks)<br /><br /></li> <li data-source-line="47-47">Higher margin requirements<br /><br /></li> <li data-source-line="48-48">Stricter position limits<br /><br /></li> <li data-source-line="49-50">Upfront collection mandates</li> </ul> <h3 id="segment-wise-revenue-performance" tabindex="-1" data-source-line="51-51">E) Segment-wise Revenue Performance</h3> <div class="table-container"> </div> <div class="table-container"><img src="https://unlistedzone.com/storage/knowledge-logo/app_image-1762497643.jpg" alt="" width="600" height="404" /></div> <h2 data-source-line="62-62">F) The Good News: Margin Expansion</h2> <p data-source-line="64-64">Despite revenue falling 15%, NSE improved its <strong>operating margin to 77%</strong> from 72% last year.</p> <p data-source-line="66-66"><strong>How?</strong> Expenses (excluding SEBI provision) dropped 26% through:</p> <ul data-source-line="67-70"> <li data-source-line="67-67">Tight cost control<br /><br /></li> <li data-source-line="68-68">Operating leverage from past technology investments<br /><br /></li> <li data-source-line="69-70">Regulatory fees down 36% (linked to lower volumes)</li> </ul> <p data-source-line="71-71">This demonstrates NSE's ability to protect profitability even when revenues decline - a sign of operational excellence.</p> <h2 data-source-line="73-73">G) Market Dominance Still Intact</h2> <p data-source-line="75-75">NSE's monopoly position hasn't changed one bit:</p> <p data-source-line="77-77"><strong>Market Share (Q2 FY2026):</strong></p> <ul data-source-line="78-82"> <li data-source-line="78-78">Cash Market: 92.3%<br /><br /></li> <li data-source-line="79-79">Equity Futures: 99.8%<br /><br /></li> <li data-source-line="80-80">Equity Options: 75.6% (by premium value)<br /><br /></li> <li data-source-line="81-82">Currency Derivatives: 100%</li> </ul> <p data-source-line="83-83"><strong>Global Rankings:</strong></p> <ul data-source-line="84-86"> <li data-source-line="84-84">World's #1 derivatives exchange (by number of contracts)<br /><br /></li> <li data-source-line="85-86">World's #3 equity exchange (by number of trades)</li> </ul> <h2 data-source-line="87-87">H) Capital Markets Remain Healthy</h2> <p data-source-line="89-89">While trading volumes fell, primary markets stayed strong:</p> <ul data-source-line="91-97"> <li data-source-line="91-91"><strong>Total fund mobilization:</strong> ₹9.7 trillion<br /><br /></li> <li data-source-line="92-92"><strong>IPO listings:</strong> 122 (Mainboard & SME)<br /><br /></li> <li data-source-line="93-93"><strong>IPO capital raised:</strong> ₹0.6 trillion<br /><br /></li> <li data-source-line="94-94"><strong>Total investor accounts:</strong> ~24 crore (growing)<br /><br /></li> <li data-source-line="95-95"><strong>Unique investors:</strong> 12+ crore<br /><br /></li> <li data-source-line="96-97"><strong>Listed companies:</strong> 2,856</li> </ul> <p data-source-line="98-98">This shows that while trading activity moderated, India's capital formation story remains intact.</p> <h2 data-source-line="100-100">I) What It Means for NSE Unlisted Share Investors</h2> <p data-source-line="102-102"><strong>Current unlisted market price: ₹1900 per share</strong></p> <h3 id="the-reality-check" tabindex="-1" data-source-line="104-104">The Reality Check</h3> <p data-source-line="106-106"><strong>Positives:</strong></p> <ul data-source-line="107-113"> <li data-source-line="107-107">77% operating margins demonstrate pricing power<br /><br /></li> <li data-source-line="108-108">Market monopoly unchanged across all segments<br /><br /></li> <li data-source-line="109-109">Non-F&O businesses growing strongly (Index +35%, Data +11%)<br /><br /></li> <li data-source-line="110-110">Strong balance sheet with healthy treasury income<br /><br /></li> <li data-source-line="111-111">Long-term India growth story intact<br /><br /></li> <li data-source-line="112-113">Investor base continuing to expand</li> </ul> <p data-source-line="114-114"><strong>Concerns:</strong></p> <ul data-source-line="115-121"> <li data-source-line="115-115">Core profits down 11% - this is a real decline<br /><br /></li> <li data-source-line="116-116">F&O volumes show no recovery signs yet<br /><br /></li> <li data-source-line="117-117">Near-term earnings visibility is weak<br /><br /></li> <li data-source-line="118-118">SEBI settlement outcome still pending<br /><br /></li> <li data-source-line="119-119">Volume recovery timeline uncertain (could take 2-4 quarters)<br /><br /></li> <li data-source-line="120-121">Transaction charges constitute 77% of revenue - heavy concentration</li> </ul> <h3 id="valuation-perspective" tabindex="-1" data-source-line="122-122">J) Valuation Perspective</h3> <p data-source-line="124-124">With normalized EPS of ~₹20.60 for H1 FY26 (annualized ~₹41-42), current unlisted prices imply a <strong>P/E multiple of 47.5x</strong>.</p> <p data-source-line="126-126">This premium valuation assumes:</p> <ul data-source-line="127-132"> <li data-source-line="127-127">Volume recovery within 12-18 months<br /><br /></li> <li data-source-line="128-128">Favorable resolution of SEBI settlement and IPO <br /><br /></li> <li data-source-line="129-129">Continued market dominance<br /><br /></li> <li data-source-line="130-130">Long-term structural growth in Indian capital markets<br /><br /></li> <li data-source-line="131-132">No further regulatory tightening</li> </ul> <p data-source-line="133-133"><strong>Is it justified?</strong></p> <p data-source-line="135-135">For patient, long-term investors who believe in India's financialization story - possibly yes. For those seeking near-term gains or margin of safety - the valuation leaves little room for disappointment.</p> <h2 data-source-line="137-137">H) Quarter-on-Quarter Trends</h2> <p data-source-line="139-139">Q2 FY2026 vs Q1 FY2026 shows continued pressure:</p> <p data-source-line="147-147"><img src="https://unlistedzone.com/storage/knowledge-logo/app_image-1762497788.jpg" alt="" width="600" height="333" /></p> <p data-source-line="147-147">The sequential decline indicates that regulatory impact is still playing out, and volumes haven't found a bottom yet.</p> <h2 data-source-line="149-149">I) The Outlook</h2> <p data-source-line="151-151"><strong>Next 6 months (Short-term):</strong></p> <ul data-source-line="152-156"> <li data-source-line="152-152">F&O volumes likely to remain under pressure<br /><br /></li> <li data-source-line="153-153">Transaction revenues will stay weak<br /><br /></li> <li data-source-line="154-154">Limited earnings growth visibility<br /><br /></li> <li data-source-line="155-156">Focus on cost management to protect margins</li> </ul> <p data-source-line="157-157"><strong>12-24 months (Medium-term):</strong></p> <ul data-source-line="158-163"> <li data-source-line="158-158">Volumes should stabilize at a new equilibrium (lower than pre-regulation levels)<br /><br /></li> <li data-source-line="159-159">Market adapts to new F&O rules<br /><br /></li> <li data-source-line="160-160">Growth comes from investor base expansion rather than trading intensity<br /><br /></li> <li data-source-line="161-161">Non-transaction revenue streams gain importance<br /><br /></li> <li data-source-line="162-163">Potential SEBI settlement resolution</li> </ul> <p data-source-line="164-164"><strong>3+ years (Long-term):</strong></p> <p data-source-line="166-166">Structural growth drivers remain powerful:</p> <ul data-source-line="167-173"> <li data-source-line="167-167">Financialization of Indian household savings<br /><br /></li> <li data-source-line="168-168">Demographic dividend (young population entering investing years)<br /><br /></li> <li data-source-line="169-169">Digital adoption and fintech penetration<br /><br /></li> <li data-source-line="170-170">Passive investing boom (NSE indices dominate)<br /><br /></li> <li data-source-line="171-171">Corporate growth driving capital raising needs<br /><br /></li> <li data-source-line="172-173">Deepening of India's capital markets</li> </ul> <h2 data-source-line="174-174">J) IPO Timeline and Implications</h2> <p data-source-line="176-176">The long-awaited NSE IPO has been delayed primarily due to the colocation matter.</p> <p data-source-line="178-178"><strong>Expected Timeline:</strong> 12-18 months after SEBI settlement approval</p> <p data-source-line="180-180"><strong>Potential IPO Size:</strong> ₹15,000-20,000 crore (likely one of India's largest)</p> <p data-source-line="182-182"><strong>Estimated Valuation:</strong> ₹3.75-4 lakh crore (market conditions dependent)</p> <p data-source-line="184-184"><strong>For unlisted shareholders:</strong> The IPO will provide:</p> <ul data-source-line="185-189"> <li data-source-line="185-185">Exit liquidity opportunity<br /><br /></li> <li data-source-line="186-186">Price discovery in public markets<br /><br /></li> <li data-source-line="187-187">Potential premium to current unlisted rates (depending on market sentiment)<br /><br /></li> <li data-source-line="188-189">Enhanced transparency and regular disclosures</li> </ul> <h2 data-source-line="190-190">K) Key Risks to Monitor</h2> <p data-source-line="192-192"><strong>1. Regulatory Risk:</strong> Further tightening of F&O regulations or new compliance requirements.</p> <p data-source-line="194-194"><strong>2. Volume Risk:</strong> Extended period of low trading activity or permanent structural decline in derivatives trading.</p> <p data-source-line="196-196"><strong>3. Competition Risk:</strong> Though minimal currently, regulatory changes could enable competitors like BSE.</p> <p data-source-line="198-198"><strong>4. Market Cyclicality:</strong> Prolonged bear market could further impact volumes and sentiment.</p> <p data-source-line="200-200"><strong>5. Technology Risk:</strong> Cybersecurity threats, system failures, or disruptive technologies.</p> <p data-source-line="202-202"><strong>6. Execution Risk:</strong> Inability to diversify revenue streams or develop new products.</p> <h2 data-source-line="217-217">L) Investment Verdict</h2> <p data-source-line="219-219"><strong>For existing unlisted shareholders:</strong> Hold position. This is a quality business navigating temporary regulatory headwinds. The fundamental franchise value remains intact.</p> <p data-source-line="221-221"><strong>For fresh buyers at ₹1900-2000:</strong> Exercise caution. Current prices reflect optimistic assumptions about recovery. Better to wait for:</p> <ul data-source-line="222-226"> <li data-source-line="222-222">Clarity on SEBI settlement outcome<br /><br /></li> <li data-source-line="223-223">Signs of volume stabilization (2-3 quarters of data)<br /><br /></li> <li data-source-line="224-224">IPO timeline announcement<br /><br /></li> <li data-source-line="225-226">Better margin of safety</li> </ul> <p data-source-line="227-227"><strong>Best case for fresh entry:</strong> If volumes stabilize by Q4 FY26 and SEBI settlement is concluded favorably, current levels could prove attractive in a 3-5 year perspective.</p> <p data-source-line="229-229"><strong>Risk case:</strong> If F&O volumes decline further or stabilize at permanently lower levels, and if SEBI settlement is harsher than expected, current valuations may be stretched.</p> <h2 data-source-line="231-231">M) The Bottom Line</h2> <p data-source-line="233-233">NSE's H1 FY2026 results show a <strong>genuine 11% decline in core business profits</strong> once you strip away the NSDL sale gain and SEBI provision. This is not accounting noise - it's real business impact from SEBI's F&O regulatory crackdown.</p> <p data-source-line="235-235">Volumes are down <strong>26-30%</strong> across all segments, and there are no immediate signs of recovery. The market is still adjusting to the new regulatory regime, and this process will take time.</p> <p data-source-line="237-237"><strong>However, the fundamental business quality remains exceptional:</strong></p> <ul data-source-line="238-244"> <li data-source-line="238-238">Near-monopoly in all product segments<br /><br /></li> <li data-source-line="239-239">77% operating margins (among the highest globally)<br /><br /></li> <li data-source-line="240-240">Proven ability to protect profitability through cost management<br /><br /></li> <li data-source-line="241-241">Growing diversified revenue streams (index, data, listing)<br /><br /></li> <li data-source-line="242-242">Strong balance sheet and cash generation<br /><br /></li> <li data-source-line="243-244">Positioned at the heart of India's growth story</li> </ul> <p data-source-line="245-245"><strong>The honest assessment:</strong> This is a high-quality monopoly business going through a difficult transition period. The regulatory changes were necessary to protect retail investors from excessive speculation, and NSE is bearing the cost of that social good.</p> <p data-source-line="247-247">For long-term investors who can handle 2-3 quarters of earnings weakness and believe in India's long-term capital markets growth, NSE remains compelling. The current moderation in volumes is real, but the structural story hasn't changed.</p> <p data-source-line="249-249">For those seeking near-term returns or margin of safety, current unlisted prices at 100x earnings offer limited cushion against further disappointment.</p> <p data-source-line="251-251"><strong>NSE will remain what it always was - India's financial market infrastructure backbone. Just growing slower than before, which is the price of a more responsible and sustainable derivatives market.</strong></p> <hr data-source-line="282-282" /> <p data-source-line="284-284"><strong>Disclaimer:</strong> This article is for informational purposes only and does not constitute investment advice. NSE unlisted shares are illiquid securities with limited price discovery and high risk. Past performance is not indicative of future results. Investors should conduct thorough due diligence and consult qualified financial advisors before making any investment decisions. The author may or may not hold positions in the securities discussed.</p> <p data-source-line="286-286"><strong>Source:</strong> NSE Investor Presentation Q2 | H1 FY2026, dated November 4, 2025</p>
<h2 data-pm-slice="1 1 []">boAt’s Parent Imagine Marketing Gets SEBI Nod for ₹1,500-Crore IPO</h2> <p><strong>Imagine Marketing Limited</strong>, the parent company of India’s leading wearables brand <strong>boAt</strong>, has received approval from the <strong>Securities and Exchange Board of India (SEBI)</strong> to launch its long-awaited <strong>₹1,500-crore initial public offering (IPO)</strong>.</p> <h3>A) IPO Structure and Key Details</h3> <p>According to the updated draft red herring prospectus (DRHP) filed on <strong>October 29</strong>, the IPO will consist of:</p> <ul data-spread="false"> <li> <p><strong>Fresh issue:</strong> ₹500 crore</p> </li> <li> <p><strong>Offer for Sale (OFS):</strong> ₹1,000 crore by existing investors</p> </li> </ul> <p>The OFS will include:</p> <ul data-spread="false"> <li> <p>₹75 crore by <strong>Sameer Ashok Mehta</strong></p> </li> <li> <p>₹225 crore by <strong>Aman Gupta</strong></p> </li> <li> <p>₹500 crore by <strong>South Lake Investment Limited</strong> (Promoter Selling Shareholder)</p> </li> <li> <p>₹150 crore by <strong>Fireside Ventures Investment Fund-I</strong></p> </li> <li> <p>₹50 crore by <strong>Qualcomm Ventures LLC</strong></p> </li> </ul> <h3>B) Utilization of IPO Proceeds</h3> <p>The company plans to utilize the <strong>fresh issue proceeds</strong> for:</p> <ul data-spread="false"> <li> <p><strong>₹225 crore</strong> – Funding working capital requirements</p> </li> <li> <p><strong>₹150 crore</strong> – Brand and marketing expenses to enhance product visibility</p> </li> <li> <p>Remaining amount – General corporate purposes</p> </li> </ul> <h3>C) A Second Attempt at Public Listing</h3> <p>This marks <strong>boAt’s second IPO attempt</strong>. The company had earlier filed for a <strong>₹2,000-crore IPO in January 2022</strong>, which included a fresh issue of ₹900 crore and an OFS of ₹1,100 crore. However, it deferred the plan due to volatile market conditions and opted for the confidential pre-filing route in <strong>April 2025</strong>, gaining SEBI’s approval by <strong>August</strong>.</p> <p>The confidential filing mechanism allowed the company to submit draft documents privately and make public disclosures only at a later stage — a flexible route increasingly preferred by large startups.</p> <h3>D) Struggling Financials of Boat.</h3> <p>After posting <strong>two consecutive years of losses</strong>, boAt barely returned to profitability in FY25, with a <strong>net profit of just ₹61 crore</strong> — a modest recovery from a <strong>loss of ₹53 crore in FY24</strong> and <strong>₹129 crore in FY23</strong>.</p> <p>However, a closer look reveals <strong>stagnation at the topline</strong>.<br />Revenue has been largely <strong>flat for three years</strong>, inching down from ₹3,377 crore in FY23 to ₹3,073 crore in FY25 — indicating a slowdown in growth momentum.</p> <p>Within its segments, the performance gap is striking:</p> <ul data-spread="false"> <li> <p>The <strong>audio accessories</strong> division, still the company’s mainstay, managed only a <strong>10% revenue growth</strong> — from ₹2,351 crore in FY23 to ₹2,586 crore in FY25.</p> </li> <li> <p>The <strong>wearables business</strong>, once a key growth driver, <strong>collapsed by nearly 58%</strong>, with sales plunging from ₹783 crore in FY23 to just ₹330 crore in FY25.</p> </li> </ul> <p>While boAt has made attempts to diversify into <strong>personal grooming and mobile accessories</strong>, these categories are yet to contribute meaningfully to overall revenues.</p> <p>In short, the company’s financials depict a <strong>stagnant topline, falling market share, and shrinking growth opportunities</strong> — raising serious questions about the sustainability of its current valuation.</p> <h3>E) Company Overview</h3> <p>Founded in <strong>2013</strong> by <strong>Aman Gupta</strong> and <strong>Sameer Mehta</strong>, <strong>Imagine Marketing Ltd</strong> has built <strong>boAt</strong> into one of India’s most recognizable lifestyle electronics brands. Its portfolio spans:</p> <ul data-spread="false"> <li> <p><strong>Audio gear:</strong> Earphones, headphones, speakers</p> </li> <li> <p><strong>Smart wearables:</strong> Smartwatches and fitness trackers</p> </li> <li> <p><strong>Personal grooming products</strong></p> </li> <li> <p><strong>Mobile accessories</strong></p> </li> </ul> <p>The company has effectively combined <strong>youth-focused branding</strong>, <strong>competitive pricing</strong>, and <strong>digital marketing</strong> to maintain a leading position in India’s consumer electronics space.</p> <h3>F) Lead Managers</h3> <p>The IPO will be managed by:</p> <ul data-spread="false"> <li> <p><strong>ICICI Securities</strong></p> </li> <li> <p><strong>Goldman Sachs (India) Securities</strong></p> </li> <li> <p><strong>JM Financial</strong></p> </li> <li> <p><strong>Nomura Financial Advisory and Securities (India) Pvt Ltd</strong></p> </li> </ul> <h2> Conclusion</h2> <h3><em>Our View on boAt’s Upcoming ₹1,500 Cr IPO</em></h3> <p>boAt is planning a ₹1,500 crore IPO — comprising ₹1,000 crore of Offer for Sale (OFS) and ₹500 crore of fresh issue.<br />Promoters will partially exit through the OFS route.</p> <p>However, when we look at fundamentals, the picture isn’t exciting. Over the last three years, <strong>boAt’s topline has shown almost no growth</strong>, and its key category — <strong>wearables — has been consistently losing market share</strong>.<br />In audio too, competition from <strong>Noise, Fire-Boltt, and other aggressive brands</strong> has intensified, eroding boAt’s earlier dominance.</p> <p>At its core, boAt has always been a <strong>trading business</strong> — importing products from China and selling them via Amazon and Flipkart. There’s <strong>no strong brand moat or proprietary technology</strong> to protect margins.</p> <p>The last fundraise valued the company at <strong>₹10,000 crore</strong>, but with FY25 PAT around ₹60 crore, that implies a <strong>P/E of ~166x</strong>, which is steep for a business showing <em>zero growth and rising competition.</em></p> <p>In our view, the <strong>fair valuation lies closer to ₹3,000–4,000 crore</strong>, unless the company demonstrates a clear turnaround in growth, profitability, and product differentiation.</p> <h3>Disclaimer</h3> <p>UnlistedZone is not a SEBI-registered Research Analyst or Investment Advisor. All information provided on our platform is strictly for educational and informational purposes. We do not offer investment advice or stock recommendations. Investors are advised to conduct their own due diligence or consult a SEBI-registered advisor. Investments in unlisted and pre-IPO shares are subject to market risks including illiquidity and volatility. UnlistedZone does not assure any returns or accept liability for investment outcomes based on this report.</p>
<h1 data-source-line="5-5"><strong>Sunday Proptech (OYO Assets): A Deep Dive into India's Emerging Hospitality Investment Platform</strong></h1> <p data-source-line="7-7"><em>Understanding the Asset Ownership Strategy Behind OYO's Latest Venture</em></p> <hr data-source-line="9-9" /> <h2 data-source-line="11-11"><strong>1. What is Sunday Proptech?</strong></h2> <p data-source-line="13-13"><strong>Sunday Proptech Limited</strong>, operating as <strong>OYO Assets</strong>, represents a strategic pivot in the hospitality investment landscape. Launched in September 2025, it is positioned as India's most ambitious hotel ownership and asset management platform, designed to acquire, upgrade, and operate high-potential hotel properties both in India and globally.</p> <p data-source-line="15-15">Unlike traditional OYO operations which follow an <strong>asset-light model</strong> (providing technology and management services without owning properties), Sunday Proptech is an <strong>asset-heavy ownership platform</strong>. The company acquires undervalued or high-growth potential hotels, upgrades them to premium mid-stay brands (like Sunday Hotels and Studio 6/Motel 6), and generates sustainable cash flows through ownership.</p> <h3 id="key-characteristics%3A" tabindex="-1" data-source-line="17-17"><strong>a) Key Characteristics:</strong></h3> <ul data-source-line="19-25"> <li data-source-line="19-19"><strong>Current Portfolio:</strong> 8 operational hotels (primarily in the USA)<br /><br /></li> <li data-source-line="20-20"><strong>Expansion Pipeline:</strong> 8 additional properties under acquisition<br /><br /></li> <li data-source-line="21-21"><strong>Geographic Presence:</strong> United States and India<br /><br /></li> <li data-source-line="22-22"><strong>Brand Portfolio:</strong> Sunday Hotels (India), Studio 6/Motel 6 (USA)<br /><br /></li> <li data-source-line="23-23"><strong>Revenue Model:</strong> Direct hotel ownership generating rental income and operational profits<br /><br /></li> <li data-source-line="24-25"><strong>Competitive Edge:</strong> Market-leading RevPAR (Revenue Per Available Room) driven by OYO's distribution network and technology stack</li> </ul> <h3 id="the-properties%3A" tabindex="-1" data-source-line="26-26"><strong>b) The Properties:</strong></h3> <p data-source-line="28-28"><strong>US Portfolio (8 Hotels - 691 Keys Total):</strong></p> <ul data-source-line="29-37"> <li data-source-line="29-29">Greenville Haywood Mall (72 keys, ₹11.6 Cr annual revenue)<br /><br /></li> <li data-source-line="30-30">Cincinnati Fairfield (72 keys, ₹11.6 Cr revenue)<br /><br /></li> <li data-source-line="31-31">Shreveport Bossier City (124 keys, ₹13.3 Cr revenue)<br /><br /></li> <li data-source-line="32-32">St. Louis Westport Craig Road (71 keys, ₹9.1 Cr revenue)<br /><br /></li> <li data-source-line="33-33">Charlotte Tyvola Road (72 keys, ₹11.6 Cr revenue)<br /><br /></li> <li data-source-line="34-34">Cincinnati Florence Meijer Dr. (72 keys, ₹8.3 Cr revenue)<br /><br /></li> <li data-source-line="35-35">Indianapolis North Carmel (72 keys, ₹10 Cr revenue)<br /><br /></li> <li data-source-line="36-37">Huntsville US Space & Rocket Center (108 keys, ₹15.8 Cr revenue)</li> </ul> <p data-source-line="38-38"><strong>c) Average EBITDA margins across US properties: 38-46%</strong></p> <p data-source-line="40-40"><strong>d) India Portfolio (4 Hotels - 418 Keys):</strong></p> <ul data-source-line="41-45"> <li data-source-line="41-41">Sunday Hotel Ahmedabad (66 keys, ₹5.3 Cr annual revenue)<br /><br /></li> <li data-source-line="42-42">Sunday Hotel Vadodara (96 keys, ₹7.4 Cr revenue)<br /><br /></li> <li data-source-line="43-43">Sunday Hotel Jaipur (90 keys, ₹13.8 Cr revenue)<br /><br /></li> <li data-source-line="44-45">Sunday Hotel Chandigarh Zirakpur (166 keys, ₹16.6 Cr revenue)</li> </ul> <hr data-source-line="46-46" /> <h2 data-source-line="48-48"><strong>2. Who Are the Shareholders in Sunday Proptech?</strong></h2> <p data-source-line="50-50">Sunday Proptech operates as a <strong>Joint Venture (JV)</strong> structure with a carefully curated shareholder base that brings both strategic and financial strength:</p> <h3 id="primary-shareholders%3A" tabindex="-1" data-source-line="52-52"><strong>a) Primary Shareholders:</strong></h3> <p data-source-line="54-54"><strong>1. Oravel Stays Limited (OYO)</strong> - The Parent Company</p> <ul data-source-line="55-59"> <li data-source-line="55-55">World's leading digital hotel company<br /><br /></li> <li data-source-line="56-56">Operates in 35+ countries<br /><br /></li> <li data-source-line="57-57">23,000+ hotels and 224,000+ vacation homes<br /><br /></li> <li data-source-line="58-59">FY25 metrics: ₹16250 Cr GBV, ₹6,253 Cr Revenue, ₹1036 Cr EBITDA</li> </ul> <p data-source-line="60-61"><strong>2. Key Existing OYO Shareholders</strong> The marquee investor base includes global institutional investors who have backed OYO's growth story.</p> <p data-source-line="63-63"><strong>3. InCred</strong> (May 2025 Private Placement)</p> <ul data-source-line="64-66"> <li data-source-line="64-64">Invested at ₹1 per share<br /><br /></li> <li data-source-line="65-66">Acquired 2 Crore equity shares</li> </ul> <p data-source-line="67-67"><strong>4. Tattva (Fund)</strong> (July 2025 Private Placement)</p> <ul data-source-line="68-71"> <li data-source-line="68-68">Invested at ₹52.5 per share<br /><br /></li> <li data-source-line="69-69">Acquired 62.86 Lakh equity shares<br /><br /></li> <li data-source-line="70-71">Represents significant valuation markup within 2 months</li> </ul> <h3 id="share-structure-timeline%3A" tabindex="-1" data-source-line="72-72"><strong>b) Share Structure Timeline:</strong></h3> <div class="table-container"> </div> <div class="table-container"><img src="https://unlistedzone.com/storage/knowledge-logo/app_image-1761818511.jpg" alt="" width="643" height="450" /></div> <p data-source-line="82-82"><strong>Total Outstanding Shares (as of October 2025): 37.47 Crore shares (374,737,010)</strong></p> <p data-source-line="84-84">The structure is deliberately kept separate from OYO's core operations to maintain the distinction between the asset-light technology platform (OYO) and the asset-heavy ownership business (Sunday Proptech).</p> <hr data-source-line="86-86" /> <h2 data-source-line="88-88"><strong>3. Why is OYO Starting This Company?</strong></h2> <p data-source-line="90-90">The creation of Sunday Proptech represents a <strong>strategic evolution</strong> in OYO's business model, driven by multiple compelling rationales:</p> <h3 id="a.-replicating-global-best-practices" tabindex="-1" data-source-line="92-92"><strong>A. Replicating Global Best Practices</strong></h3> <p data-source-line="94-94">The world's leading hospitality brands have successfully deployed a <strong>dual-structure model</strong>:</p> <p data-source-line="96-96"><strong>Asset-Light Franchise/Brand Company + Asset-Heavy Ownership Platform</strong></p> <p data-source-line="98-98"><strong>Global Examples:</strong></p> <ul data-source-line="99-103"> <li data-source-line="99-99"><strong>Marriott International</strong> (Brand) → <strong>Ventive Hospitality</strong> (Asset Owner in India)<br /><br /></li> <li data-source-line="100-100"><strong>IHG Hotels & Resorts</strong> (Brand) → <strong>Samhi Hotels</strong> (Asset Owner in India)<br /><br /></li> <li data-source-line="101-101"><strong>Indian Hotels Company (IHCL/Taj)</strong> (Brand) → <strong>TajGVK</strong> (Asset Owner in South India)<br /><br /></li> <li data-source-line="102-103"><strong>Hilton Worldwide</strong> (Brand) → Multiple REITs and Ownership Platforms</li> </ul> <p data-source-line="104-104">This separation allows:</p> <ul data-source-line="105-108"> <li data-source-line="105-105">The brand company to scale globally without capital intensity<br /><br /></li> <li data-source-line="106-106">The asset company to capture real estate appreciation and operational yields<br /><br /></li> <li data-source-line="107-108">Shareholders to choose their risk-return profile (growth vs. income)</li> </ul> <h3 id="b.-unlocking-dual-value-streams" tabindex="-1" data-source-line="109-109"><strong>B. Unlocking Dual Value Streams</strong></h3> <p data-source-line="111-111"><strong>OYO's Core Business (Asset-Light):</strong></p> <ul data-source-line="112-115"> <li data-source-line="112-112">High scalability, low capital requirements<br /><br /></li> <li data-source-line="113-113">Technology and brand licensing fees<br /><br /></li> <li data-source-line="114-115">Network effects from demand aggregation</li> </ul> <p data-source-line="116-116"><strong>Sunday Proptech (Asset-Heavy):</strong></p> <ul data-source-line="117-121"> <li data-source-line="117-117">Real asset backing with tangible value<br /><br /></li> <li data-source-line="118-118">Predictable annuity income streams<br /><br /></li> <li data-source-line="119-119">Protection during market volatility<br /><br /></li> <li data-source-line="120-121">Upside from property appreciation</li> </ul> <h3 id="c.-competitive-advantages" tabindex="-1" data-source-line="122-122"><strong>C. Competitive Advantages</strong></h3> <p data-source-line="124-124">Sunday Proptech leverages OYO's decade-long operational expertise:</p> <ol data-source-line="126-131"> <li data-source-line="126-126"><strong>Distribution Strength:</strong> OYO's 132 million+ app downloads drive occupancy<br /><br /></li> <li data-source-line="127-127"><strong>Technology Stack:</strong> Revenue management, dynamic pricing, operational automation<br /><br /></li> <li data-source-line="128-128"><strong>Market-Leading RevPAR:</strong> Superior revenue per room vs. competitors<br /><br /></li> <li data-source-line="129-129"><strong>Lowest Cost Structure:</strong> Technology-driven operational efficiency<br /><br /></li> <li data-source-line="130-131"><strong>Brand Portfolio:</strong> Established brands (Sunday Hotels, Motel 6) accelerate turnaround</li> </ol> <h3 id="d.-capital-efficiency-strategy" tabindex="-1" data-source-line="132-132"><strong>D. Capital Efficiency Strategy</strong></h3> <p data-source-line="134-134">Rather than building hotels from scratch (greenfield development), Sunday Proptech:</p> <ul data-source-line="135-139"> <li data-source-line="135-135">Acquires undervalued or underperforming properties<br /><br /></li> <li data-source-line="136-136">Applies OYO's branding and technology for rapid turnaround<br /><br /></li> <li data-source-line="137-137">Generates cash flows faster than new construction<br /><br /></li> <li data-source-line="138-139">Captures yield and valuation arbitrage</li> </ul> <h3 id="e.-market-opportunity" tabindex="-1" data-source-line="140-140"><strong>E. Market Opportunity</strong></h3> <p data-source-line="142-142">The Indian and US hospitality markets offer:</p> <ul data-source-line="143-147"> <li data-source-line="143-143">Fragmented ownership landscape with acquisition opportunities<br /><br /></li> <li data-source-line="144-144">Growing domestic and international travel demand<br /><br /></li> <li data-source-line="145-145">Premium valuations for institutionally-owned hotel portfolios (as evidenced by listed peers)<br /><br /></li> <li data-source-line="146-147">Investor appetite for real asset-backed income opportunities</li> </ul> <hr data-source-line="148-148" /> <h2 data-source-line="150-150"><strong>4. Who Are the Peers in This Business?</strong></h2> <p data-source-line="152-152">Sunday Proptech competes in the <strong>institutional hotel ownership and asset management</strong> space. Here's the competitive landscape:</p> <h3 id="listed-indian-hotel-ownership-platforms%3A" tabindex="-1" data-source-line="154-154"><strong>Listed Indian Hotel Ownership Platforms:</strong></h3> <h3 id="1.-chalet-hotels-limited" tabindex="-1" data-source-line="156-156"><strong>1. Chalet Hotels Limited</strong></h3> <ul data-source-line="157-166"> <li data-source-line="157-157"><strong>Market Cap:</strong> ₹21000 Cr (Oct 2025)<br /><br /></li> <li data-source-line="158-158"><strong>Enterprise Value:</strong> ₹23,000 Cr<br /><br /></li> <li data-source-line="159-159"><strong>Portfolio:</strong> 11 luxury properties, 3,314 rooms<br /><br /></li> <li data-source-line="160-160"><strong>FY26E EBITDA:</strong> ₹953 Cr<br /><br /></li> <li data-source-line="161-161"><strong>FY26E Profit:</strong> ₹285 Cr<br /><br /></li> <li data-source-line="162-162"><strong>Valuation Multiples:</strong> 24x EV/EBITDA, 73x P/E<br /><br /></li> <li data-source-line="163-163"><strong>Parent:</strong> K Raheja Corp<br /><br /></li> <li data-source-line="164-164"><strong>Focus:</strong> High-end hotels and commercial properties in gateway cities<br /><br /></li> <li data-source-line="165-166"><strong>Competitive Position:</strong> Premium luxury positioning</li> </ul> <h3 id="2.-ventive-hospitality-limited" tabindex="-1" data-source-line="167-167"><strong>2. Ventive Hospitality Limited</strong></h3> <ul data-source-line="168-178"> <li data-source-line="168-168"><strong>Market Cap:</strong> ₹17,800 Cr<br /><br /></li> <li data-source-line="169-169"><strong>Enterprise Value:</strong> ₹19,410 Cr<br /><br /></li> <li data-source-line="170-170"><strong>Portfolio:</strong> 11 luxury hotels, 2,036 keys (including 3 Maldives properties with 515 rooms)<br /><br /></li> <li data-source-line="171-171"><strong>FY26E EBITDA:</strong> ₹885 Cr<br /><br /></li> <li data-source-line="172-172"><strong>FY26E Profit:</strong> ₹177 Cr<br /><br /></li> <li data-source-line="173-173"><strong>Valuation Multiples:</strong> 22x EV/EBITDA, 100x P/E<br /><br /></li> <li data-source-line="174-174"><strong>Backed by:</strong> Blackstone<br /><br /></li> <li data-source-line="175-175"><strong>Brands:</strong> Marriott, Hilton, Ritz-Carlton<br /><br /></li> <li data-source-line="176-176"><strong>Geography:</strong> Pune, Bengaluru, Maldives<br /><br /></li> <li data-source-line="177-178"><strong>Recent:</strong> Listed recently, showcasing strong investor appetite</li> </ul> <h3 id="3.-samhi-hotels-limited" tabindex="-1" data-source-line="179-179"><strong>3. Samhi Hotels Limited</strong></h3> <ul data-source-line="180-189"> <li data-source-line="180-180"><strong>Market Cap:</strong> ₹4500 Cr<br /><br /></li> <li data-source-line="181-181"><strong>Enterprise Value:</strong> ₹6600 Cr<br /><br /></li> <li data-source-line="182-182"><strong>Portfolio:</strong> ~4,800 keys across 3-star to 5-star segments<br /><br /></li> <li data-source-line="183-183"><strong>FY26E EBITDA:</strong> ₹439 Cr<br /><br /></li> <li data-source-line="184-184"><strong>FY26E Profit:</strong> ₹ 188 Cr<br /><br /></li> <li data-source-line="185-185"><strong>Valuation Multiples:</strong> 15x EV/EBITDA, 32x P/E<br /><br /></li> <li data-source-line="186-186"><strong>Backed by:</strong> Brookfield<br /><br /></li> <li data-source-line="187-187"><strong>Strategy:</strong> Operational turnaround and yield enhancement<br /><br /></li> <li data-source-line="188-189"><strong>Positioning:</strong> Institutional ownership platform</li> </ul> <h3 id="4.-brigade-hotel-ventures-limited" tabindex="-1" data-source-line="190-190"><strong>4. Brigade Hotel Ventures Limited</strong></h3> <ul data-source-line="191-198"> <li data-source-line="191-191"><strong>Market Cap:</strong> ₹3,100 Cr<br /><br /></li> <li data-source-line="192-192"><strong>Enterprise Value:</strong> ₹3,200 Cr<br /><br /></li> <li data-source-line="193-193"><strong>FY25 EBITDA:</strong> ₹ 165 Cr<br /><br /></li> <li data-source-line="194-194"><strong>FY25 Profit:</strong> ₹24 Cr<br /><br /></li> <li data-source-line="195-195"><strong>Valuation Multiples:</strong> 20x EV/EBITDA, 129x P/E<br /><br /></li> <li data-source-line="196-196"><strong>Parent:</strong> Brigade Group<br /><br /></li> <li data-source-line="197-198"><strong>Regional Focus:</strong> South India</li> </ul> <h3 id="peer-average-valuation-range%3A-12-21x-ev%2Febitda" tabindex="-1" data-source-line="199-199"><strong>Peer Average Valuation Range: 15-24x EV/EBITDA</strong></h3> <h3 id="key-differentiators%3A" tabindex="-1" data-source-line="201-201"><strong>Key Differentiators:</strong></h3> <div class="table-container"> </div> <div class="table-container"><img src="https://unlistedzone.com/storage/knowledge-logo/app_image-1761822133.jpg" alt="" width="633" height="400" /></div> <hr data-source-line="213-213" /> <h2 data-source-line="215-215"><strong>5. How Are Shares Allotted by the Company?</strong></h2> <p data-source-line="217-217">Sunday Proptech has followed a <strong>structured capital raise strategy</strong> with multiple tranches to fund its acquisition pipeline:</p> <h3 id="phase-1%3A-foundation-capital-(april-may-2025)" tabindex="-1" data-source-line="219-219"><strong>Phase 1: Capital (April-May 2025)</strong></h3> <p data-source-line="221-221"><strong>April 28, 2025 - Initial Equity Structure</strong></p> <ul data-source-line="222-224"> <li data-source-line="222-222">2 Crore shares issued as per initial valuation report<br /><br /></li> <li data-source-line="223-224">Foundation shareholder base established</li> </ul> <p data-source-line="225-225"><strong>May 9, 2025 - InCred Private Placement</strong></p> <ul data-source-line="226-230"> <li data-source-line="226-226"><strong>Shares Issued:</strong> 2 Crore<br /><br /></li> <li data-source-line="227-227"><strong>Price:</strong> ₹1 per share<br /><br /></li> <li data-source-line="228-228"><strong>Amount Raised:</strong> ₹2 Crore<br /><br /></li> <li data-source-line="229-230"><strong>Rationale:</strong> Early-stage institutional validation</li> </ul> <h3 id="phase-2%3A-valuation-markup-(july-2025)" tabindex="-1" data-source-line="231-231"><strong>Phase 2: Valuation Markup (July 2025)</strong></h3> <p data-source-line="233-233"><strong>July 28, 2025 - Tattva Fund Placement</strong></p> <ul data-source-line="234-238"> <li data-source-line="234-234"><strong>Shares Issued:</strong> 62.86 Lakh<br /><br /></li> <li data-source-line="235-235"><strong>Price:</strong> ₹52.50 per share<br /><br /></li> <li data-source-line="236-236"><strong>Amount Raised:</strong> ₹33 Crore (approx)<br /><br /></li> <li data-source-line="237-238"><strong>Significance:</strong> <strong>52.5x price increase in 2.5 months</strong> - validates business model and asset quality</li> </ul> <h3 id="phase-3%3A-capital-structure-optimization-(august-2025)" tabindex="-1" data-source-line="239-239"><strong>Phase 3: Capital Structure Optimization (August 2025)</strong></h3> <p data-source-line="241-241"><strong>August 4, 2025 - Bonus Issue</strong></p> <ul data-source-line="242-250"> <li data-source-line="242-242"><strong>Ratio:</strong> Approximately 7:1<br /><br /></li> <li data-source-line="243-243"><strong>Shares Issued:</strong> 32.35 Crore<br /><br /></li> <li data-source-line="244-244"><strong>Price:</strong> ₹0 (bonus to existing shareholders)<br /><br /></li> <li data-source-line="245-250"><strong>Purpose:<br /></strong> <ul data-source-line="246-250"> <li data-source-line="246-246">Improved liquidity<br /><br /></li> <li data-source-line="247-247">Broader shareholder base<br /><br /></li> <li data-source-line="248-248">Lower per-share price for future raises<br /><br /></li> <li data-source-line="249-250">Reward early investors</li> </ul> </li> </ul> <h3 id="phase-4%3A-debt-to-equity-conversion-(october-2025)" tabindex="-1" data-source-line="251-251"><strong>Phase 4: Debt-to-Equity Conversion (October 2025)</strong></h3> <p data-source-line="253-253"><strong>October 1, 2025 - Loan Conversion</strong></p> <ul data-source-line="254-261"> <li data-source-line="254-254"><strong>Shares Issued:</strong> 2.51 Crore<br /><br /></li> <li data-source-line="255-255"><strong>Price:</strong> ₹6.25 per share<br /><br /></li> <li data-source-line="256-256"><strong>Debt Converted:</strong> ₹16.5 Crore<br /><br /></li> <li data-source-line="257-261"><strong>Purpose:<br /></strong> <ul data-source-line="258-261"> <li data-source-line="258-258">Strengthen balance sheet<br /><br /></li> <li data-source-line="259-259">Reduce interest burden<br /><br /></li> <li data-source-line="260-261">Align lender interests with equity upside</li> </ul> </li> </ul> <h3 id="total-capital-raised-(estimated)%3A" tabindex="-1" data-source-line="262-262"><strong>Total Capital Raised (Estimated):</strong></h3> <ul data-source-line="263-267"> <li data-source-line="263-263">InCred Round: ₹2 Cr<br /><br /></li> <li data-source-line="264-264">Tattva Round: ₹33 Cr<br /><br /></li> <li data-source-line="265-265">Debt Conversion: ₹16.5 Cr<br /><br /></li> <li data-source-line="266-267"><strong>Total: ~₹51.5 Crore</strong></li> </ul> <h3 id="current-share-structure%3A" tabindex="-1" data-source-line="268-268"><strong>Current Share Structure:</strong></h3> <ul data-source-line="269-272"> <li data-source-line="269-269"><strong>Total Outstanding Shares:</strong> 37.47 Crore (374,737,010)<br /><br /></li> <li data-source-line="270-270"><strong>Major Events:</strong> 4 capital raises + 1 bonus issue in 6 months<br /><br /></li> <li data-source-line="271-272"><strong>Valuation Trajectory:</strong> ₹1 → ₹52.5 → ₹6.25 (post-bonus adjusted)</li> </ul> <h3 id="allotment-strategy-insights%3A" tabindex="-1" data-source-line="273-273"><strong>Allotment Strategy Insights:</strong></h3> <ol data-source-line="275-279"> <li data-source-line="275-275"><strong>Selective Investor Base:</strong> Chose institutional investors with hospitality/real estate expertise<br /><br /></li> <li data-source-line="276-276"><strong>Milestone-Based Pricing:</strong> Each round tied to operational achievements (property acquisitions)<br /><br /></li> <li data-source-line="277-277"><strong>Liquidity Creation:</strong> Bonus issue prepared company for potential listing<br /><br /></li> <li data-source-line="278-279"><strong>Balance Sheet Management:</strong> Debt-to-equity swap reduced leverage before scale-up</li> </ol> <hr data-source-line="280-280" /> <h2 data-source-line="282-282"><strong>6. Is It Worth Investing at Different Valuations (₹7, ₹10, ₹15)?</strong></h2> <p data-source-line="284-284">This is the <strong>critical investment decision</strong> - let's analyze Sunday Proptech's value proposition at three price points against listed peers:<br /><br />In FY26, Sunday Proptech is expecting a Revenue of INR 38 cr, EBITDA of 25 Cr with 8 Hotels and in FY27, it is expecting a Revenue of INR 177 cr , EBITDA of INR 93 cr and PAT of INR 27 Cr. </p> <h3 id="investment-framework%3A-fy26-ebitda-%3D-%E2%82%B925-crore-(expected)" tabindex="-1" data-source-line="286-286"><strong>Investment Framework: FY26 EBITDA = ₹25 Crore (Expected)</strong></h3> <div class="table-container"> </div> <div class="table-container"><img src="https://unlistedzone.com/storage/knowledge-logo/app_image-1761819539.jpg" alt="" width="667" height="367" /></div> <hr data-source-line="294-294" /> <h3 id="scenario-a%3A-investment-at-%E2%82%B97-per-share" tabindex="-1" data-source-line="296-296"><strong>Scenario A: Investment at ₹7 per Share</strong></h3> <p data-source-line="298-298"><strong>Valuation: ₹262 Crore Market Cap | 10.5x EBITDA (FY26)</strong></p> <p data-source-line="300-300">✅ <strong>Investment Thesis:</strong></p> <p data-source-line="302-302"><strong>1. Deep Value Entry</strong></p> <ul data-source-line="303-305"> <li data-source-line="303-303">Trading at a <strong>35-55% discount</strong> to listed peers (Samhi: 15x, Ventive: 22x, Chalet: 24x)<br /><br /></li> <li data-source-line="304-305">Samhi Hotels (most comparable) trades at 15x - Sunday would be <strong>30% cheaper</strong></li> </ul> <p data-source-line="306-306"><strong>2. Risk-Adjusted Returns</strong></p> <ul data-source-line="307-310"> <li data-source-line="307-307">Pre-operational risk largely mitigated (8 hotels already operational)<br /><br /></li> <li data-source-line="308-308">Asset backing provides downside protection<br /><br /></li> <li data-source-line="309-310">US properties delivering 35-46% EBITDA margins</li> </ul> <p data-source-line="311-311"><strong>3. Growth Upside</strong></p> <ul data-source-line="312-315"> <li data-source-line="312-312">FY27E EBITDA projected at ₹93 Cr (3.7x growth from FY26)<br /><br /></li> <li data-source-line="313-313">If company maintains 10.5x multiple: Market cap = ₹977 Cr<br /><br /></li> <li data-source-line="314-315"><strong>Potential Return: 370% in 18 months</strong></li> </ul> <p data-source-line="316-316"><strong>4. Re-Rating Catalyst</strong></p> <ul data-source-line="317-319"> <li data-source-line="317-317">As operational track record strengthens, multiple could expand to 12-14x (peer average)<br /><br /></li> <li data-source-line="318-319">At 12x FY27 EBITDA: Market cap = ₹1,116 Cr → <strong>Share price ₹29.8.</strong></li> </ul> <p data-source-line="320-320"><strong>Risk Assessment at ₹7:</strong></p> <ul data-source-line="321-325"> <li data-source-line="321-321">⚠️ Limited liquidity (unlisted)<br /><br /></li> <li data-source-line="322-322">⚠️ Execution risk on 8 pending acquisitions<br /><br /></li> <li data-source-line="323-323">✅ Strong margin of safety<br /><br /></li> <li data-source-line="324-325">✅ Tangible asset backing</li> </ul> <hr data-source-line="328-328" /> <h3 id="scenario-b%3A-investment-at-%E2%82%B910-per-share" tabindex="-1" data-source-line="330-330"><strong>Scenario B: Investment at ₹10 per Share</strong></h3> <p data-source-line="332-332"><strong>Valuation: ₹375 Crore Market Cap | 15.0x EBITDA (FY26)</strong></p> <p data-source-line="334-334">✅ <strong>Investment Thesis:</strong></p> <p data-source-line="336-336"><strong>1. Fair Value Positioning</strong></p> <ul data-source-line="337-339"> <li data-source-line="337-337">Midpoint between Samhi (15x) and Ventive (22x), below Chalet (24x)<br /><br /></li> <li data-source-line="338-339">Reflects growth potential while offering reasonable entry</li> </ul> <p data-source-line="340-340"><strong>2. FY27 Upside</strong></p> <ul data-source-line="341-344"> <li data-source-line="341-341">At 15x multiple on FY27E EBITDA (₹93 Cr): Market cap = ₹1,395 Cr<br /><br /></li> <li data-source-line="342-342"><strong>Share Price: ₹37.2</strong> → <strong>272% return<br /><br /></strong></li> <li data-source-line="343-344">Even at conservative 12x FY27: ₹29.8/share → <strong>198% return</strong></li> </ul> <p data-source-line="345-345"><strong>3. Comparable to Quality Peers</strong></p> <ul data-source-line="346-349"> <li data-source-line="346-346">Similar margin profile to Samhi (institutional, PE-backed)<br /><br /></li> <li data-source-line="347-347">Technology advantage vs. traditional players<br /><br /></li> <li data-source-line="348-349">Dual-geography diversification (India + USA)</li> </ul> <p data-source-line="354-354"><strong>Risk Assessment at ₹10:</strong></p> <ul data-source-line="355-359"> <li data-source-line="355-355">⚠️ Less margin of safety than ₹7 entry<br /><br /></li> <li data-source-line="356-356">⚠️ Needs to execute on growth plan to justify valuation<br /><br /></li> <li data-source-line="357-357">✅ Fair risk-reward for growth investors<br /><br /></li> <li data-source-line="358-359">✅ Better liquidity if lists soon</li> </ul> <hr data-source-line="362-362" /> <h3 id="scenario-c%3A-investment-at-%E2%82%B915-per-share" tabindex="-1" data-source-line="364-364"><strong>Scenario C: Investment at ₹15 per Share</strong></h3> <p data-source-line="366-366"><strong>Valuation: ₹562 Crore Market Cap | 22.5x EBITDA (FY26)</strong></p> <p data-source-line="368-368">⚠️ <strong>Investment Thesis:</strong></p> <p data-source-line="370-370"><strong>1. Premium Valuation</strong></p> <ul data-source-line="371-376"> <li data-source-line="371-371">Trading <strong>around</strong> Chalet (24x) and Ventive (22x)<br /><br /></li> <li data-source-line="372-376">Only justified if Sunday achieves:<br /><br /> <ul data-source-line="373-376"> <li data-source-line="373-373">Superior growth vs. peers<br /><br /></li> <li data-source-line="374-374">Market-leading RevPAR sustainably<br /><br /></li> <li data-source-line="375-376">Faster scale-up (16 hotels by FY27 vs. current 8)</li> </ul> </li> </ul> <p data-source-line="377-377"><strong>2. FY27 Upside Limited</strong></p> <ul data-source-line="378-382"> <li data-source-line="378-378">At 22.5x FY27E EBITDA (₹93 Cr): Market cap = ₹2,093 Cr<br /><br /></li> <li data-source-line="379-379"><strong>Share Price: ₹55.8</strong> → <strong>272% return</strong> (same as ₹10 scenario)<br /><br /></li> <li data-source-line="380-380"><strong>BUT:</strong> Multiple compression risk - peers trade at 12-20x<br /><br /></li> <li data-source-line="381-382">If market re-rates to 15x (fair value): ₹37.2/share → <strong>148% return</strong></li> </ul> <p data-source-line="383-383"><strong>3. Execution Dependency</strong></p> <ul data-source-line="384-387"> <li data-source-line="384-384"><strong>Must deliver</strong> ₹93 Cr FY27 EBITDA (no room for shortfall)<br /><br /></li> <li data-source-line="385-385">Asset acquisition delays directly impact returns<br /><br /></li> <li data-source-line="386-387">Competition from larger players for premium assets</li> </ul> <p data-source-line="398-398"><strong>Risk Assessment at ₹15:</strong></p> <ul data-source-line="399-403"> <li data-source-line="399-399">⚠️ <strong>HIGH</strong> - Premium valuation with limited margin of safety<br /><br /></li> <li data-source-line="400-400">⚠️ Multiple compression risk if growth disappoints<br /><br /></li> <li data-source-line="401-401">⚠️ Illiquidity premium not justified at 22.5x<br /><br /></li> <li data-source-line="402-403">⚠️ Better alternatives exist at this price point (buy Samhi in listed market)</li> </ul> <hr data-source-line="406-406" /> <h3 id="peer-comparison-summary-table%3A" tabindex="-1" data-source-line="408-408"><strong>Peer Comparison Summary Table Based on FY26E Numbers:</strong></h3> <div class="table-container"> </div> <div class="table-container"><img src="https://unlistedzone.com/storage/knowledge-logo/app_image-1761820152.jpg" alt="" width="645" height="373" /></div> <p data-source-line="419-419">*P/E based on FY26E PAT of ₹10 Cr</p> <hr data-source-line="421-421" /> <h2 data-source-line="434-434"><strong>Key Investment Considerations:</strong></h2> <h3 id="bullish-factors%3A" tabindex="-1" data-source-line="436-436"><strong>Bullish Factors:</strong></h3> <p data-source-line="438-444">✅ <strong>Asset Backing:</strong> Real estate provides tangible value floor<br /><br />✅ <strong>Operational Proof:</strong> 8 US properties delivering 35-46% EBITDA<br /><br />✅ <strong>Technology Moat:</strong> OYO's distribution and revenue management systems<br /><br />✅ <strong>Market Tailwinds:</strong> Travel recovery, premium mid-stay segment growth<br /><br />✅ <strong>Peer Valuations:</strong> Listed comps trading at 12-21x EBITDA<br /><br />✅ <strong>Growth Trajectory:</strong> 3.7x EBITDA growth projected (₹25 Cr → ₹93 Cr)<br /><br />✅ <strong>Dual Geography:</strong> US + India diversification</p> <h3 id="risk-factors%3A" tabindex="-1" data-source-line="446-446"><strong>Risk Factors:</strong></h3> <p data-source-line="448-455">⚠️ <strong>Illiquidity:</strong> Unlisted shares, limited exit options pre-IPO<br /><br />⚠️ <strong>Execution Risk:</strong> 8 pending acquisitions must close on time<br /><br />⚠️ <strong>Capital Requirements:</strong> May need further dilution for expansion<br /><br />⚠️ <strong>Market Risk:</strong> Hospitality cycles, economic downturns<br /><br />⚠️ <strong>Competition:</strong> Larger players (Brookfield, Blackstone) competing for assets<br /><br />⚠️ <strong>OYO Brand Risk:</strong> Reputational challenges from parent company<br /><br />⚠️ <strong>Currency Risk:</strong> 50% revenue from US operations<br /><br />⚠️ <strong>Regulatory Risk:</strong> Real estate and hospitality regulations in multiple countries</p> <hr data-source-line="457-457" /> <h3 id="final-verdict%3A" tabindex="-1" data-source-line="473-473"><strong>Final Verdict:</strong></h3> <p data-source-line="475-475">Sunday Proptech is <strong>NOT for everyone</strong> - but for investors who:</p> <ul data-source-line="476-480"> <li data-source-line="476-476">Can tolerate illiquidity for 18-36 months<br /><br /></li> <li data-source-line="477-477">Believe in OYO's operational capabilities<br /><br /></li> <li data-source-line="478-478">Want exposure to institutionalized hotel ownership<br /><br /></li> <li data-source-line="479-480">Enter at reasonable valuations (₹7-10)</li> </ul> <hr data-source-line="483-483" /> <p data-source-line="485-485"><strong>Disclaimer:</strong> <em>This analysis is based solely on the documents provided and publicly available peer company data. This is not investment advice. Investors should conduct their own due diligence, consult financial advisors, and assess their risk tolerance before making investment decisions in unlisted securities.</em></p> <hr data-source-line="487-487" /> <p data-source-line="489-489"><em><strong>Data Sources:</strong> OYO Assets Presentation (September 2025), Sunday Proptech Share Capital Analysis (October 2025), Secondary research on listed peers by UnlistedZone</em></p>
<p>India’s wealthtech ecosystem continues to attract strong investor interest. Bengaluru-based investment platform <strong>Wint Wealth</strong> is reportedly set to raise about <strong>$20 million</strong> in a new funding round led by <strong>Vertex Ventures Southeast Asia & India</strong>, marking its first major fundraise in over two years.</p> <h3>1. Overview of the Deal</h3> <p>The upcoming round will add to Wint’s earlier <strong>$22 million</strong> capital pool, which includes investors such as <strong>Nikhil Kamath (Zerodha)</strong>, <strong>Kunal Shah (CRED)</strong>, <strong>India Quotient</strong>, <strong>3one4 Capital</strong>, <strong>Arkham Ventures</strong>, <strong>Blume Ventures</strong>, and <strong>Eight Roads Ventures</strong>.</p> <p>This investment reflects the sustained optimism around India’s <strong>wealthtech sector</strong>, one of the most active fintech verticals since 2024. Competing startups like <strong>Dezerv</strong>, <strong>Stable Money</strong>, and <strong>Grip Invest</strong> have also seen fresh rounds, signalling investor confidence in platforms catering to India’s expanding retail and affluent investor base.</p> <h3>2. What Does Wint Wealth Do?</h3> <p>Founded in <strong>2020</strong> by <strong>Ajinkya Kulkarni</strong>, <strong>Abhik Patel</strong>, <strong>Shashank Chimaladari</strong>, and <strong>Anshul Gupta</strong>, Wint Wealth operates as an <strong>online marketplace for fixed-income investments</strong>, regulated by <strong>SEBI</strong> under the <strong>Online Bond Platform Provider (OBPP)</strong> framework.</p> <p>The platform enables retail investors to access <strong>corporate bonds, securitised debt instruments, and NBFC-issued NCDs</strong>—investment options traditionally reserved for institutions. With <strong>yields ranging between 9–12%</strong>, Wint positions itself as a safer, high-return alternative to bank fixed deposits.</p> <p>Retail investors can start with as little as <strong>₹1,000–₹10,000</strong>, depending on the product. Wint claims to conduct rigorous due diligence and has maintained <strong>“zero defaults”</strong> across its offerings.</p> <p>Key competitors include <strong>Stable Money</strong>, <strong>Kuvera</strong>, <strong>Grip Invest</strong>, and <strong>InCred Money</strong>, all vying for market share in India’s growing fixed-income and alternative investment market.</p> <h3>3. Why This Round Matters</h3> <p>The fresh funding will strengthen Wint’s <strong>core bond marketplace</strong> and accelerate expansion into <strong>alternative and debt-based products</strong>. Additionally, it will bolster <strong>Wint Capital</strong>, the company’s <strong>NBFC arm</strong>, enabling it to scale lending operations and enhance technology infrastructure.</p> <p>As competition intensifies among digital investment platforms, this funding comes at a pivotal moment for Wint to consolidate its market position and attract a broader investor base.</p> <h3>4. Regulatory and Business Milestones</h3> <p>Wint Wealth secured <strong>SEBI’s OBPP approval</strong> in 2023, allowing it to list and distribute bonds directly to retail investors. That same year, it obtained <strong>RBI approval</strong> to acquire <strong>Ambium Finserve</strong>, a Chandigarh-based NBFC, gaining a licence to originate and structure credit products.</p> <p>According to company data, <strong>Wint Capital</strong> has disbursed over <strong>₹370 crore in B2B loans</strong> across more than 40 clients, highlighting its growing diversification beyond bond distribution.</p> <h3>5. Vertex Ventures’ Strategic Interest</h3> <p><strong>Vertex Ventures SEA & India</strong>, part of <strong>Temasek Holdings</strong>, has been expanding its footprint in India’s fintech and AI ecosystem. The firm closed its <strong>$541 million Fund V</strong> in September 2023, focusing on early-stage and Series A investments.</p> <p>Its Indian portfolio includes <strong>Kiwi (credit on UPI)</strong>, <strong>Metafin (SME lending)</strong>, <strong>SpotDraft</strong>, <strong>Spyne</strong>, and <strong>Nuuk</strong> in AI and SaaS, along with consumer brands such as <strong>Licious</strong>, <strong>Pilgrim</strong>, and <strong>KukuFM</strong>. Vertex has achieved notable exits through IPOs and acquisitions from firms like <strong>FirstCry</strong> and <strong>GlowRoad</strong>.</p> <p>The fund remains <strong>bullish on SME lending, wealthtech, and sustainable AI startups</strong>, driven by expanding exit opportunities in India.</p> <h3>6. What’s Fueling the Wealthtech Boom?</h3> <p>India’s <strong>wealthtech sector</strong> has emerged as one of the most resilient fintech categories over the past 18 months. Investors are increasingly backing platforms offering <strong>diversified investment options</strong> across mutual funds, bonds, and alternative assets.</p> <p>Growth is driven by:</p> <ul data-spread="false"> <li> <p>A rapidly expanding <strong>affluent and retail investor base</strong></p> </li> <li> <p>Rising <strong>financial literacy and digital adoption</strong></p> </li> <li> <p>Clear <strong>regulatory frameworks</strong> for online bond platforms</p> </li> </ul> <p>Recent highlights include <strong>Dezerv’s ₹350 crore ($42 million) round</strong> led by Premji Invest and Accel, and <strong>Stable Money’s upcoming round from Peak XV</strong>. Strategic deals such as <strong>Groww’s $150 million acquisition of Fisdom</strong> and <strong>CRED’s acquisition of Kuvera</strong> underline growing consolidation and long-term investor confidence.</p> <h3>Conclusion</h3> <p>Wint Wealth’s $20 million round led by Vertex Ventures reinforces the momentum in India’s wealthtech landscape. With regulatory clarity, a growing investor base, and institutional capital flowing in, the sector is poised for sustained expansion.</p> <p>As Wint strengthens its lending and bond distribution capabilities, it stands well-positioned to capture the next phase of India’s fixed-income investment revolution.</p> <h3><strong>Disclaimer</strong></h3> <p>UnlistedZone is not a SEBI-registered Research Analyst or Investment Advisor. All information provided on our platform is strictly for educational and informational purposes. We do not offer investment advice or stock recommendations. Investors are advised to conduct their own due diligence or consult a SEBI-registered advisor. Investments in unlisted and pre-IPO shares are subject to market risks including illiquidity and volatility. UnlistedZone does not assure any returns or accept liability for investment outcomes based on this report.</p>
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