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Blog13 May 2025

OYO Emerges as India’s Most Profitable Startup with Record-Breaking FY25 Performance

In a major milestone, travel tech giant OYO has emerged as the most profitable startup in India for the financial year 2024–25. Founder and Group CEO Ritesh Agarwal shared the news during an internal townhall, citing a profit after tax (PAT) of ₹623 crore for the year. This performance, as per unaudited financial statements accessed by media sources, marks a 172% increase compared to the ₹229 crore PAT in FY24. Solid EBITDA and Consistent Profitability OYO’s adjusted EBITDA stood at ₹1,132 crore in FY25, a 27% rise from ₹889 crore posted in the previous fiscal. This result also signifies the company’s tenth consecutive quarter of EBITDA-level profitability, reflecting consistent and disciplined financial operations. Earnings Per Share See Steep Rise One of the key indicators of profitability, Earnings Per Share (EPS), grew significantly in FY25. The company reported EPS of ₹0.93, up from ₹0.36 in FY24, registering a robust 158% year-over-year increase, underlining the improved per-share value for stakeholders. Gross Booking Value Jumps Sharply OYO witnessed a substantial rise in its Gross Booking Value (GBV), which climbed by 54% year-on-year, reaching ₹16,436 crore in FY25. This jump in bookings was largely propelled by the company's premium hospitality segments, such as Townhouse Hotels and Sunday Hotels, both falling under its Company-Serviced Portfolio. Healthy Revenue Growth Fueled by Expansion The company’s total revenue for FY25 stood at ₹6,463 crore, marking a 20% year-on-year growth. This financial leap was supported by its expanding international footprint across India, the UK, Southeast Asia, and the Middle East. Additionally, the integration of G6 Hospitality, a strategic acquisition, contributed positively to this uptick. Record-Breaking Q4 Performance In the fourth quarter alone, OYO posted its strongest numbers to date. The GBV for Q4 FY25 was ₹6,379 crore, up 126% from Q4 of FY24. Revenue for the same quarter came in at ₹1,872 crore, reflecting a 41% year-over-year increase. Meanwhile, adjusted EBITDA reached ₹442 crore, up 61% compared to the same quarter the previous year. Premium Segment Boost Through Sunday Hotels OYO has significantly expanded its premium service offerings over the past year. It launched over 30 Sunday Hotels across prominent regions including India, the UAE, Saudi Arabia, and Southeast Asia. These properties have played a vital role in pushing the company’s premium experience and driving both revenue and bookings. Expanding Global Presence OYO’s current global network is vast and rapidly growing. The platform now manages approximately 22,700 hotels and 1,19,900 homes, along with an active portfolio of 91,300 listings worldwide. This wide-ranging global presence reinforces its dominance in the travel tech and hospitality ecosystem. Conclusion: Strategy-Driven Success OYO’s stellar performance in FY25 reflects its focused business model—centered on scaling premium offerings, expanding global operations, and maintaining financial discipline. The impressive growth in PAT, EBITDA, GBV, EPS, and revenue makes OYO not only a startup success but also a benchmark for sustainable profitability in the tech-driven hospitality sector. With these results, OYO has not just turned a financial corner but has set new standards for what Indian startups can achieve on a global stage.

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Video12 May 2025

3 Years. 10 Unlisted Stocks. Shocking Results!

Discover the top gainers and worst losers in India's unlisted market from April 2022 to April 2025. From Orbis Financial’s stellar 468% return to PharmaEasy’s steep decline, this video reveals the hidden opportunities and risks of pre-IPO investing. Watch now to see which unlisted shares made history — and which ones taught tough lessons.

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Blog12 May 2025

OYO to Acquire Company via Share Swap; EGM Called for Approval

In a move that signals strategic ambition and market readiness, Oravel Stays Ltd. (OYO) has announced the acquisition of Key Flickers Pty. Ltd, an Australian entity, through a share swap arrangement. The development not only strengthens OYO’s global presence but also positions it for deeper integration of operational and tech capabilities ahead of its much-anticipated IPO. <hr data-start="723" data-end="726" /> <h2 data-start="728" data-end="754">1. Transaction Snapshot</h2> The acquisition will be placed before shareholders for approval at an Extraordinary General Meeting (EGM) scheduled for 22nd May 2025. Instead of cash, OYO will issue 28,58,082 equity shares to acquire 100% equity of Key Flickers Pty. Ltd. <div class="_tableContainer_16hzy_1"> <div class="_tableWrapper_16hzy_14 group flex w-fit flex-col-reverse" tabindex="-1"> <table class="w-fit min-w-(--thread-content-width)" style="width: 64.1645%;" data-start="1009" data-end="1665"> <thead data-start="1009" data-end="1081"> <tr data-start="1009" data-end="1081"> <th style="width: 60.7938%; text-align: center;" data-start="1009" data-end="1043" data-col-size="sm">Particulars</th> <th style="width: 39.3247%; text-align: center;" data-start="1043" data-end="1081" data-col-size="sm">Details</th> </tr> </thead> <tbody data-start="1155" data-end="1665"> <tr data-start="1155" data-end="1227"> <td style="width: 60.7938%; text-align: center;" data-start="1155" data-end="1188" data-col-size="sm">Target Entity</td> <td style="width: 39.3247%; text-align: center;" data-start="1188" data-end="1227" data-col-size="sm">Key Flickers Pty. Ltd (Australia)</td> </tr> <tr data-start="1228" data-end="1300"> <td style="width: 60.7938%; text-align: center;" data-start="1228" data-end="1261" data-col-size="sm">Mode of Acquisition</td> <td style="width: 39.3247%; text-align: center;" data-start="1261" data-end="1300" data-col-size="sm">Share Swap</td> </tr> <tr data-start="1301" data-end="1373"> <td style="width: 60.7938%; text-align: center;" data-start="1301" data-end="1334" data-col-size="sm">New Shares to Be Issued</td> <td style="width: 39.3247%; text-align: center;" data-col-size="sm" data-start="1334" data-end="1373">28,58,082</td> </tr> <tr data-start="1374" data-end="1446"> <td style="width: 60.7938%; text-align: center;" data-start="1374" data-end="1407" data-col-size="sm">Share Valuation (per share)</td> <td style="width: 39.3247%; text-align: center;" data-col-size="sm" data-start="1407" data-end="1446">₹57.09</td> </tr> <tr data-start="1447" data-end="1519"> <td style="width: 60.7938%; text-align: center;" data-start="1447" data-end="1480" data-col-size="sm">EGM Date</td> <td style="width: 39.3247%; text-align: center;" data-start="1480" data-end="1519" data-col-size="sm">22-May-2025</td> </tr> <tr data-start="1520" data-end="1592"> <td style="width: 60.7938%; text-align: center;" data-start="1520" data-end="1553" data-col-size="sm">Post-Acquisition Share Count</td> <td style="width: 39.3247%; text-align: center;" data-col-size="sm" data-start="1553" data-end="1592">~695 Cr shares</td> </tr> <tr data-start="1593" data-end="1665"> <td style="width: 60.7938%; text-align: center;" data-start="1593" data-end="1626" data-col-size="sm">Implied Valuation</td> <td style="width: 39.3247%; text-align: center;" data-col-size="sm" data-start="1626" data-end="1665">~₹40,000 Cr or $5 Billion USD</td> </tr> </tbody> </table> <div class="sticky end-(--thread-content-margin) h-0 self-end select-none"> <div class="absolute end-0 flex items-end"> </div> </div> </div> </div> This signals a clear preference for capital-efficient expansion, using equity to fund inorganic growth rather than drawing down cash reserves. <hr data-start="1815" data-end="1818" /> <h2 data-start="1820" data-end="1849">2. FY25 Financial Snapshot</h2> As per Ritesh Agarwal, OYO has posted a strong FY25, with a Profit After Tax (PAT) of ₹623 crore. This robust performance marks a turnaround from previous losses and validates its asset-light, tech-driven business model. <hr data-start="2058" data-end="2061" /> <h2 data-start="2063" data-end="2118">3. Valuation & P/E Analysis (Based on FY25 Earnings)</h2> <div class="_tableContainer_16hzy_1"> <div class="_tableWrapper_16hzy_14 group flex w-fit flex-col-reverse" tabindex="-1"> <table class="w-fit min-w-(--thread-content-width)" style="width: 61.8772%;" data-start="2120" data-end="2399"> <thead data-start="2120" data-end="2175"> <tr data-start="2120" data-end="2175"> <th style="width: 29.7947%; text-align: center;" data-start="2120" data-end="2142" data-col-size="sm">Price per Share (₹)</th> <th style="width: 29.6089%; text-align: center;" data-start="2142" data-end="2162" data-col-size="sm">Market Cap (₹ Cr)</th> <th style="width: 40.5113%; text-align: center;" data-start="2162" data-end="2175" data-col-size="sm">P/E Ratio</th> </tr> </thead> <tbody data-start="2232" data-end="2399"> <tr data-start="2232" data-end="2287"> <td style="width: 29.7947%; text-align: center;" data-start="2232" data-end="2254" data-col-size="sm">₹50</td> <td style="width: 29.6089%; text-align: center;" data-start="2254" data-end="2274" data-col-size="sm">₹34,750 Cr</td> <td style="width: 40.5113%; text-align: center;" data-col-size="sm" data-start="2274" data-end="2287">55x</td> </tr> <tr data-start="2288" data-end="2343"> <td style="width: 29.7947%; text-align: center;" data-start="2288" data-end="2310" data-col-size="sm">₹60</td> <td style="width: 29.6089%; text-align: center;" data-start="2310" data-end="2330" data-col-size="sm">₹41,700 Cr</td> <td style="width: 40.5113%; text-align: center;" data-col-size="sm" data-start="2330" data-end="2343">66x</td> </tr> <tr data-start="2344" data-end="2399"> <td style="width: 29.7947%; text-align: center;" data-start="2344" data-end="2366" data-col-size="sm">₹70</td> <td style="width: 29.6089%; text-align: center;" data-start="2366" data-end="2386" data-col-size="sm">₹48,000 Cr</td> <td style="width: 40.5113%; text-align: center;" data-col-size="sm" data-start="2386" data-end="2399">78x</td> </tr> </tbody> </table> <div class="sticky end-(--thread-content-margin) h-0 self-end select-none"> <div class="absolute end-0 flex items-end"> FY26 PAT guidance = ₹1,100 Cr ( expected ) P/E at various price bands (based on FY26E):   ₹50 → 32x   ₹60 → 38x   ₹70 → 44</div> </div> </div> </div> Despite OYO’s rapid growth, excess supply in the unlisted market is capping price movement. The current P/E multiples suggest the market is pricing in significant future earnings expansion. Valuations are rich, but not unprecedented for companies in scale mode with a proven turnaround. <hr data-start="2629" data-end="2632" /> <h2 data-start="2634" data-end="2657">UnlistedZone Take</h2> This acquisition highlights OYO's maturity as a platform and its capability to pursue cross-border expansion using equity instruments. With positive PAT, reduced burn, and improved operational metrics, OYO is entering FY26 with strong fundamentals. However, with valuations already touching 55x P/E based on FY25 and 32x P/E based on FY26 ( unlisted price of INR 50 is taken for calculation ) , investors should tread with a balanced view—factoring in both growth prospects and valuation premiums. <hr data-start="3086" data-end="3089" /> Bottom Line OYO is building momentum—financially and strategically. With this acquisition and an upcoming EGM, investors in the unlisted space should closely track developments that could influence its IPO pricing and investor appetite.

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Blog10 May 2025

NSE Denies Approaching Finance Ministry Over IPO Roadblocks

The National Stock Exchange (NSE), India’s largest bourse and the world’s top derivatives exchange by volume, has been attempting to go public since 2016. However, despite multiple efforts, the exchange has not received the regulatory green light due to pending legal issues and corporate governance concerns. Unlike its competitor BSE Ltd., which is already publicly traded, NSE's IPO journey remains stalled. Behind-the-Scenes Appeal to Finance Ministry Sources familiar with the matter claim NSE has approached the Ministry of Finance to help resolve its long-standing regulatory tussle with SEBI. The request came after SEBI failed to issue a no-objection certificate (NOC) following NSE’s March 2025 application. The exchange reportedly urged the ministry to intervene and facilitate dialogue with SEBI’s new leadership in order to break the deadlock. NSE Publicly Refutes Intervention Claims Following the publication of reports suggesting it sought government help, NSE issued a strong denial. The exchange stated it has not communicated with the Government of India about its IPO in the past 30 months. While it remained silent on media queries before the story broke, it later asserted that no such request for intervention had been made, contradicting insider reports. Repeated Attempts Over the Years NSE’s appeal to the finance ministry is not a first. The exchange had previously sought similar support in November 2019, twice during 2020, and again in August 2024. Despite these repeated efforts, the IPO remains in limbo, much to the frustration of major investors including Life Insurance Corporation of India (LIC), State Bank of India (SBI), Morgan Stanley, and Canada Pension Plan Investment Board, all of whom are seeking an exit. SEBI’s Concerns: Governance & Leadership Issues The primary barrier to approval, according to sources within SEBI, is inadequate governance at NSE. One major sticking point is the delayed appointment of a chairman to the board, with SEBI reportedly slow to approve NSE’s nominee submitted in 2022. The regulator has also flagged concerns about the exchange’s top-level hiring practices, though NSE maintains that its processes fully comply with SEBI norms. Allegations of Regulatory Bias In its internal communication to the finance ministry, NSE reportedly questioned SEBI’s neutrality. The exchange cited recent policy changes affecting the futures and options market, claiming they disproportionately harmed NSE compared to rival BSE. Additionally, it criticized SEBI’s proposal asking exchanges to divest from clearing corporations, arguing that the move could destabilize market operations and increase compliance costs. SEBI Holds Firm on Public Interest Tuhin Kanta Pandey, the new SEBI chairman as of March, has acknowledged the situation publicly. He affirmed that while SEBI is working towards resolving the impasse, commercial objectives will not be prioritized over broader public interest. According to insiders, multiple departments within SEBI remain unconvinced that NSE has addressed all compliance and governance concerns, making the issuance of an NOC unlikely for now. Outlook Remains Uncertain Despite being a cornerstone of India’s financial market infrastructure, NSE's route to the public market remains blocked. Unless governance concerns are conclusively resolved and regulatory confidence is restored, the IPO will likely remain a distant goal. Whether or not the government steps in to mediate, the exchange must now navigate both perception challenges and technical regulatory requirements to move forward.

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Blog10 May 2025

PharmEasy Ups Diagnostic Game with 'On-Time or Free' Promise

PharmEasy, one of India's leading digital healthcare platforms, has launched a fresh marketing campaign designed to drive adoption and trust in its diagnostic testing services. At the center of this initiative lies a compelling promise—*"on-time or free"*—which directly tackles one of the most frustrating issues customers face: delayed sample collections. A Familiar Jingle Returns with Dancing Uncles The campaign marks the return of the brand’s beloved jingle, "PharmEasy, PharmEasy…Take It Easy,” cleverly set to the nostalgic tune inspired by ‘Urvashi Urvashi’. Alongside this catchy soundtrack are the iconic dancing uncles—two characters who humorously portray everyday situations, like skipping breakfast for fasting tests or having morning routines thrown off by late lab technicians. These scenes are not only relatable but highlight the real inconvenience caused by service delays in the diagnostic space. Humour Meets Serious Healthcare Challenges Crafted by independent creative agency BusyPeople, under the direction of Garima Khandelwal, the campaign strikes a balance between entertainment and urgency. “We ensured the core offering was communicated sharply while keeping the tone light and entertaining,” said Khandelwal, emphasizing the blend of relatability and brand identity. Solving a Key Pain Point with a Strong Commitment In a sector known for missed appointments and uncomfortable early mornings, PharmEasy’s campaign brings forward a much-needed resolution. The "on-time or free" policy ensures that users don’t just book diagnostic tests—they count on them to happen exactly when they expect. “Fasting is already tough—waiting shouldn't make it worse,” stated Siddharth Shah, MD & CEO of API Holdings, the parent company of PharmEasy. “Our message is simple—book your time slot, and we’ll be there. If not, you won’t be charged.” Understanding Real User Frustrations Echoing the same thought, Gaurav Verma, CBO at PharmEasy, noted how every minute feels prolonged when one is fasting and waiting for a test. “Our feature was built with empathy. The customer has already sacrificed comfort to follow through on the test. Showing up on time is the least we can do—it’s how we express care,” he said. Driving Trust and Simplifying Healthcare At its core, this campaign is not just about marketing but about reinforcing trust and reliability in digital healthcare. By eliminating delays and offering accountability, PharmEasy is redefining the diagnostic testing experience—making it faster, simpler, and stress-free for millions of Indians. Through this effort, the brand continues its mission to make quality healthcare more accessible and dependable across the country.

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Video9 May 2025

Major Shift in NSE Shareholding: Public Investors Take the Lead!

NSE’s shareholding has seen a surprising shift over the past year — retail investors are stepping up, while big players are pulling back. What’s driving this change?

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Blog8 May 2025

NSE vs BSE – Comparative Financial Analysis (FY25)

1. NSE vs BSE – Comparative Financial Analysis (FY25) <table style="width: 56.8211%;"> <tbody> <tr> <th style="width: 53.3409%; text-align: center;">Metric</th> <th style="width: 29.4779%; text-align: center;">NSE</th> <th style="width: 17.0784%; text-align: center;">BSE</th> </tr> <tr style="text-align: center;"> <td style="width: 53.3409%;">FY25 Revenue from Ops</td> <td style="width: 29.4779%;">₹17,141 Cr</td> <td style="width: 17.0784%;">₹2,957 Cr</td> </tr> <tr style="text-align: center;"> <td style="width: 53.3409%;">FY25 Total Income</td> <td style="width: 29.4779%;">₹19,177 Cr</td> <td style="width: 17.0784%;">₹3,236 Cr</td> </tr> <tr style="text-align: center;"> <td style="width: 53.3409%;">FY25 PAT</td> <td style="width: 29.4779%;">₹12,188 Cr</td> <td style="width: 17.0784%;">₹1,328 Cr</td> </tr> <tr style="text-align: center;"> <td style="width: 53.3409%;">EPS (FY25)</td> <td style="width: 29.4779%;">₹49.24</td> <td style="width: 17.0784%;">₹96.55</td> </tr> <tr style="text-align: center;"> <td style="width: 53.3409%;">PAT Margin</td> <td style="width: 29.4779%;">63.55%</td> <td style="width: 17.0784%;">41.00%</td> </tr> <tr style="text-align: center;"> <td style="width: 53.3409%;">Dividend (FY25)</td> <td style="width: 29.4779%;">₹35/share</td> <td style="width: 17.0784%;">₹23/share</td> </tr> <tr style="text-align: center;"> <td style="width: 53.3409%;">Dividend Yield (on CMP)</td> <td style="width: 29.4779%;">2.12%</td> <td style="width: 17.0784%;">0.34%</td> </tr> </tbody> </table> <div style="text-align: center;"><hr /></div> 2. YoY Growth (FY24 vs FY25) <table style="width: 61.9976%;"> <tbody> <tr> <td style="width: 28.3452%; text-align: center;">Metric</td> <td style="width: 45.6337%; text-align: center;">NSE YoY Growth</td> <td style="width: 26.1338%; text-align: center;">BSE YoY Growth</td> </tr> <tr> <td style="width: 28.3452%; text-align: center;">Revenue Growth</td> <td style="width: 45.6337%; text-align: center;">16%</td> <td style="width: 26.1338%; text-align: center;">115.7%</td> </tr> <tr> <td style="width: 28.3452%; text-align: center;">PAT Growth</td> <td style="width: 45.6337%; text-align: center;">47%</td> <td style="width: 26.1338%; text-align: center;">70%</td> </tr> <tr> <td style="width: 28.3452%; text-align: center;">EPS Growth</td> <td style="width: 45.6337%; text-align: center;">From ₹33.56 to ₹49.24</td> <td style="width: 26.1338%; text-align: center;">From ₹56.66 to ₹96.55</td> </tr> </tbody> </table> <blockquote> ⚠️ BSE’s massive jump in revenue and PAT is due to expanded derivative products and one-time SGF fund adjustments with SEBI approval. </blockquote> <div><hr /></div> 3. Valuation Comparison (As on FY25 & FY26E) <table style="width: 63.3218%; height: 91.6666px;"> <tbody> <tr style="height: 18.3333px;"> <td style="width: 36.5406%; height: 18.3333px; text-align: center;">Parameter</td> <td style="width: 27.395%; height: 18.3333px; text-align: center;">NSE</td> <td style="width: 35.9802%; height: 18.3333px; text-align: center;">BSE</td> </tr> <tr style="height: 18.3333px;"> <td style="width: 36.5406%; height: 18.3333px; text-align: center;">Market Cap (Approx.)</td> <td style="width: 27.395%; height: 18.3333px; text-align: center;">₹4,08,000 Cr</td> <td style="width: 35.9802%; height: 18.3333px; text-align: center;">₹90,000 Cr</td> </tr> <tr style="height: 18.3333px;"> <td style="width: 36.5406%; height: 18.3333px; text-align: center;">P/E Ratio (FY25)</td> <td style="width: 27.395%; height: 18.3333px; text-align: center;">33.5x</td> <td style="width: 35.9802%; height: 18.3333px; text-align: center;">68x</td> </tr> <tr style="height: 36.6667px;"> <td style="width: 36.5406%; height: 36.6667px; text-align: center;">P/E Ratio (FY26E)</td> <td style="width: 27.395%; height: 36.6667px; text-align: center;">37x (Estimated PAT ₹11,000 Cr)</td> <td style="width: 35.9802%; height: 36.6667px; text-align: center;">45x (Estimated PAT ₹2,000 Cr)</td> </tr> </tbody> </table> BSE: Q4FY25 - Revenue is INR 846 cr and PAT is INR 492 Cr. So, if we annualise this for FY26E , revenue would be ~INR 3400 cr and PAT of ~INR 2000 Cr.  Current Mcap is INR 90000 cr. P/E based on FY26E would be 45x. NSE: Q4FY25 - Revenue is INR 3771 cr and PAT is INR 2650 Cr. So, if we annualise this for FY26E, revenue would be ~INR 15000 cr and PAT of ~11000 Cr.  Current Mcap is 4,08,000 cr. P/E based on FY26E would be 37x. <div><hr /></div> 4. Key Observations NSE: <ul data-spread="false"> <li> Continues to dominate in scale, with >5x revenue and >9x PAT compared to BSE. </li> <li> Strong profitability and dividend yield (2.12%) attract institutional investors. </li> <li> Q4 FY25 witnessed a QoQ decline in both revenue and PAT, due to reduced trading volumes or market activity after SEBI restricted the weekly expiry to one per exchange. </li> </ul> BSE: <ul data-spread="false"> <li> Revenue grew 2x YoY, thanks to success in the Sensex/Bankex derivatives, and increased transaction charges. </li> <li> EPS and PAT saw strong YoY growth; PAT margins expanded to 53% in Q4 FY25. </li> <li> Trades at a higher P/E due to growth momentum, despite lower scale. </li> </ul> <div><hr /></div> Conclusion <ul data-spread="false"> <li> NSE remains the larger and more profitable exchange with strong fundamentals and consistent dividend payouts. </li> <li> BSE is emerging as a high-growth alternative with expanding revenue streams and successful product innovations in derivatives and mutual funds. </li> <li> Valuation rerating in BSE (higher P/E) reflects market optimism about future growth, but NSE still provides stronger yield and stability. </li> </ul> <div><hr /></div>

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Blog7 May 2025

MUFG Nears ₹12,000 Crore Deal for Minority Stake in HDB Financial Services

Mitsubishi UFJ Financial Group (MUFG), Japan’s largest banking institution, is reportedly in advanced negotiations with HDFC Bank to acquire a minority stake in HDB Financial Services, its non-banking financial subsidiary. Sources familiar with the development revealed that the proposed transaction is pegged at around ₹12,000 crore, with MUFG aiming to secure a 17-19% stake. The deal is expected to be finalized within the next month, pending successful closure of ongoing talks. 1. Previous Talks and Valuation Recalibration This isn’t the first time both parties have engaged in discussions. An earlier round of negotiations had collapsed due to valuation disagreements. However, renewed discussions have gained traction, especially after HDB Financial Services’ valuation was revised down to the $8–8.5 billion range from an earlier estimate of $10–12 billion. 2. Regulatory Pressure Shapes Deal Dynamics The shift in valuation and urgency in closing the deal stems in part from regulatory headwinds. The Reserve Bank of India’s draft guidelines on ownership structures and overlapping business operations between banks and their group NBFCs have added pressure to rationalize group holdings. These new regulations prohibit similar lending activities by group entities within a banking conglomerate. Given these constraints, HDFC Bank may need to eventually reduce its current 94.54% holding in HDB Financial Services. 3. Deal May Offset Pre-IPO Expectations A successful transaction with MUFG could help HDFC Bank comply with RBI’s anticipated shareholding norms without necessitating a complex merger of HDB into the bank—a move that would involve significant challenges such as asset-liability mismatches and compliance with reserve requirements. With MUFG’s stake addition, HDB may also reassess its earlier plans for a pre-IPO placement, potentially scaling it down or scrapping it altogether. 4. Performance Pressures and Market Impact HDB Financial Services has faced recent headwinds in performance. In the March quarter, the NBFC’s net profit dropped to ₹530.9 crore from ₹656 crore in the same quarter the previous year. Its gross Stage 3 (non-performing) assets rose to 2.26%, up from 1.90% a year earlier, while return on assets declined from 3% to 1.8%. These operational pressures, along with RBI’s evolving policy environment, may have accelerated the urgency behind strategic partnerships like this one. 5. Broader Sector Recovery and Investor Sentiment While the unsecured loan sector has seen a recovery in market sentiment lately, the proposed MUFG investment could act as a confidence booster. It signals long-term institutional interest in India's NBFC segment despite regulatory and performance challenges. 6. No Official Comments Yet Both MUFG and HDFC Bank have refrained from making public comments on the matter. However, the closing of this deal could mark a major shift in ownership dynamics within HDB and may shape the strategic roadmap for HDFC Bank’s NBFC business going forward.

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Video5 May 2025

SBI General: Solid Results, Bright Outlook

SBI General Insurance delivered a stellar FY25 with 112% profit growth and ₹14,140 crore GWP. With 68% of policies sold digitally and award-winning claims settlement, customer trust strengthened. Market share rose to 4.17%. For FY26, the company targets ₹18,000 crore GWP with new offerings like pet and cyber insurance, signaling strong momentum and investor confidence.

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Blog2 May 2025

OYO IPO Delay: Why SoftBank Is Asking Ritesh Agarwal to Hold Off the Public Listing

Introduction India’s hospitality unicorn OYO, led by founder Ritesh Agarwal, has been a focal point of investor interest and market speculation for years. After multiple attempts at going public, OYO’s IPO dreams have once again hit a pause—this time not because of regulatory hurdles or market conditions, but due to internal disagreement with its largest backer, SoftBank. SoftBank Pulls the Brakes According to recent media reports, SoftBank, which holds a 40% stake in OYO, has asked the company to defer its proposed IPO until its financial performance stabilizes. The Japanese conglomerate is reportedly concerned about OYO’s current earnings profile and believes a stronger financial showing will lead to better valuation and investor sentiment. This is a significant development given SoftBank’s influential position in OYO’s boardroom. Founder Ritesh Agarwal owns around 30%, making this a classic case of diverging interests between a founder eager to go public and a key investor seeking financial prudence. The IPO Timeline: A History of Delays OYO initially planned to go public in 2021 with a targeted valuation of $12 billion. However, the IPO was shelved due to the pandemic-induced market uncertainty. The company made another attempt in March 2023 by filing confidential papers with SEBI, but the listing was again delayed in May 2023. In March 2024, OYO revived its IPO ambitions amidst pressure to meet upcoming debt obligations. However, the current standoff with SoftBank has cast doubt on whether an IPO will materialize this year. Debt Overhang and Strategic Stakes The pressure to list is not only strategic—it’s financial. Back in 2019, Ritesh Agarwal borrowed $2.2 billion from lenders including Mizuho Financial Group, backed by a personal guarantee from SoftBank’s Masayoshi Son. The purpose of the loan was to increase his stake in OYO and gain strategic control. That loan was later restructured in 2022, and repayment of the first tranche—amounting to $383 million—is due in December 2025. According to Bloomberg, creditors have warned that if OYO fails to list by October 2025, Agarwal may be compelled to repay the amount much sooner. However, if the IPO goes through this year, the repayment deadline could be pushed to 2027. This creates a financial incentive for Agarwal to push for an IPO despite SoftBank’s resistance. SoftBank’s Possible Middle Path SoftBank’s opposition doesn’t appear to be absolute. Reports suggest that it may be willing to support Agarwal in negotiating an extension of the loan in return for postponing the IPO. This could allow OYO more time to strengthen its earnings, restore investor confidence, and aim for a higher valuation in the future. Strategic Implications The delayed IPO has significant implications: <ul data-start="2913" data-end="3362"> <li class="" data-start="2913" data-end="3055"> For Agarwal: The delay means continued uncertainty on his loan obligations and limited flexibility in unlocking capital from OYO shares. </li> <li class="" data-start="3059" data-end="3224"> For SoftBank: By postponing the IPO, SoftBank may preserve value and avoid a potentially discounted listing, especially if OYO’s financials are not yet strong. </li> <li class="" data-start="3228" data-end="3362"> For Markets: Investors awaiting the OYO IPO as one of the key startup listings of FY25 may now have to reset their expectations. </li> </ul> Conclusion OYO’s story is emblematic of the evolving dynamics between founders and their marquee investors in India’s startup ecosystem. While the ambition to list publicly remains intact, current financial realities and investor priorities have forced a recalibration. Whether the company goes public later this year—or waits to build a stronger earnings base—will likely depend on how these negotiations between Agarwal and SoftBank unfold.

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Blog2 May 2025

PPFAS Alternate Asset Managers Establishes Base in GIFT City for Global Investment Opportunities

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Blog1 May 2025

Hero FinCorp FY25 Financial Results

Hero FinCorp, the financial services arm of the Hero Group, has declared its financial results for the fiscal year 2025. Known for its diverse loan portfolio and strong retail presence, the company has shown significant growth in income but also raised concerns due to a sharp rise in provisioning and stressed assets. Hero FinCorp’s Core Business Model Hero FinCorp Limited (HFCL) is a leading non-banking financial company (NBFC) in India, originally incorporated in 1991 under the name Hero Honda FinLease Limited. Following changes in the ownership structure of its parent company, Hero MotoCorp (formerly Hero Honda Motors), it was renamed Hero FinCorp Limited. The company has grown to become a major financial services provider with a strong footprint in both retail and corporate lending segments. Hero FinCorp is involved in the business of financing, leasing, bill discounting, and other financial solutions. A significant part of its operations is backed by its wholly-owned subsidiary, Hero Housing Finance Limited (HHFL), which offers housing loans across the country. HHFL commenced operations in April 2018 and has shown rapid growth since then. Within the first year of its launch, it disbursed loans worth over ₹556 crore. To support this growth, Hero FinCorp invested ₹200 crore into HHFL via a rights issue. Loan Portfolio Hero FinCorp lends in multiple categories. A major chunk of its business comes from financing Hero two-wheelers, especially in tier-2 and tier-3 cities. In addition to this, the company provides used car loans, personal loans, loans against property (LAP), and business loans to SMEs. On the corporate side, it also provides structured finance and working capital loans. This diversification helps them manage risk and tap into various market segments. Financial Performance FY25 Compared to FY24   Hero FinCorp posted a solid 15% growth in interest earned, rising from ₹7,479 crore in FY24 to ₹8,589 crore in FY25. Other income also jumped sharply from ₹880 crore to ₹1,314 crore, showing a growth of almost 49%. However, this growth came at a cost. The company’s interest expenditure increased significantly from ₹3,097 crore to ₹3,827 crore, indicating rising borrowing costs. Operating expenses too rose from ₹2,513 crore to ₹2,935 crore. But the most worrying trend was in provisions and contingencies, which surged from ₹1,722 crore in FY24 to ₹2,884 crore in FY25 — a rise of more than 67%. Due to these factors, net profit (PAT) dropped sharply from ₹637 crore to just ₹110 crore. Earnings per share (EPS) also saw a steep fall, going from ₹50.16 in FY24 to ₹8.63 in FY25 — an alarming 82% decline in profitability. Asset Quality Under Pressure: NPAs and Provisions on the Rise The rise in provisioning is linked to the worsening asset quality. Gross NPA increased from 4.02% to 5.05%, and Net NPA went up from 2% to 2.3% in FY25. This clearly indicates growing stress in the loan book — possibly due to economic slowdown in some sectors, repayment delays in retail or SME loans, or higher default rates in unsecured segments like personal loans. To stay cautious, Hero FinCorp has aggressively increased its provisioning to safeguard its balance sheet. While this move is prudent from a risk management point of view, it has heavily impacted their profit for the year. What Is the Current Valuation of Hero FinCorp?   Despite the fall in profitability, the company commands a strong valuation. As of FY25, Hero FinCorp’s market capitalization stands at ₹16,880.5 crore. The Price-to-Earnings (P/E) ratio is extremely high at 153.53, which indicates that the stock is priced for strong future recovery, not current earnings. The Price-to-Book (P/B) ratio is 2.93, suggesting that investors are willing to pay almost 3 times its book value — a premium valuation. On the return side, Return on Equity (ROE) has dropped significantly to 1.91%, showing weaker efficiency in generating returns for shareholders. The company has a debt-to-equity ratio of 8.33, highlighting its reliance on debt funding — common in NBFCs but worth keeping an eye on. Conclusion Hero FinCorp’s FY25 results paint a mixed picture. While the top-line performance is strong and income is growing steadily, the rising provisions and higher NPAs are causes for concern. Profitability has taken a hit, and ROE has dropped substantially. However, the market continues to value the company at a premium, likely betting on long-term growth potential and improved profitability once asset quality stabilizes.

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