Analysis, guides and explainers on India's unlisted market — from IPO pipelines to ESOP liquidity.
<p>In a significant achievement, Waaree Energies Ltd has once again emerged as a frontrunner in the latest edition of the Kiwa PVEL PV Module Reliability Scorecard for 2024. This marks the third consecutive year that the company has clinched this prestigious recognition, reaffirming its commitment to quality and performance excellence in the solar energy sector.</p> <p>The accolade, bestowed through PVEL’s rigorous Product Qualification Program (PQP) and annual reliability scorecard, underscores Waaree Energies' unwavering dedication to delivering top-notch solar modules. The evaluation encompasses a comprehensive assessment of module quality, performance, and reliability across six key test categories, including power degradation, wet leakage, visual inspection, diode failure, and energy yield simulations.</p> <p>PVEL's benchmarking initiative serves as a vital resource for developers, financiers, and asset owners, empowering them with crucial data to make informed decisions regarding solar procurement and investments. By consistently excelling in these assessments, Waaree Energies not only solidifies its reputation as a market leader but also provides stakeholders with the confidence to pursue sustainable solar projects.</p> <p>Waaree Energies holds the distinction of being India's largest manufacturer of solar PV modules, boasting an impressive aggregate installed capacity of 12 GW as of June 30, 2023, according to the CRISIL Report. With four state-of-the-art solar module manufacturing facilities strategically located across India and a growing international presence, the company remains at the forefront of driving solar energy adoption on a global scale.</p>
<p>In a bid to cater to the needs of pet owners traveling abroad, Cochin International Airport Ltd (CIAL) has introduced a pioneering service allowing the exportation of pets through its premises.</p> <p>The inaugural flight featured 'Luka', an adorable Lhasa Apso puppy, bound for Dubai via Doha, accompanied by Rajesh Susheelan and Kavitha Rajesh, residents of Attingal in Thiruvananthapuram. Handled by Qatar Airways, Luka's journey signifies a milestone for CIAL as it becomes the sole airport in Kerala authorized to export pets abroad.</p> <p>To support this service, CIAL has set up a 24-hour air-conditioned pet station, a dedicated cargo section, access to veterinary services, customs clearance facilities, and a support center for pet owners.</p> <p>Previously limited to domestic travel, CIAL now enables pets to be transported as cargo to various international destinations in specially designed cages. Plans are also underway to secure authorization for direct pet imports, with the establishment of an 'Animal Quarantine' center in progress.</p> <p>In addition to pet services, CIAL has expanded its capabilities to include the import and export of fruits, plants, drugs, and cosmetics. A 'Plant Quarantine' center is already operational near the cargo section, facilitating the movement of plant-based products.</p> <p>Spearheading these initiatives, S. Suhas IAS, Managing Director of CIAL, emphasized the airport's commitment to providing comprehensive services to passengers. Automation of passenger touchpoints, the introduction of value-added facilities, and plans for sophisticated security measures, such as full-body scanners, are part of the airport's ongoing enhancements.</p> <p>Furthermore, CIAL's authorization from the Union Ministry of Health and Family Welfare to import drugs and cosmetics in bulk quantities signifies a significant departure from previous restrictions, offering greater accessibility to these products for stockists and consumers alike.</p>
<p>In a recent announcement to the exchanges, Tata Motors disclosed its strategic move to merge Tata Motor Finance with Tata Capital, aligning with its strategic vision of divesting non-core assets and concentrating capital investments in burgeoning technologies and products.</p> <p>The board of directors of Tata Motors, Tata Capital, and Tata Motors Finance greenlit the merger through an NCLT scheme of arrangement, with Tata Capital issuing equity shares to Tata Motor Finance shareholders. Post-merger, Tata Motors will possess a 4.7% stake in the combined entity.</p> <p>Tata Capital, a leading diversified NBFC in India boasting assets under management of Rs 1.6 lakh crore and an array of over 25 product offerings across retail, SME, and corporate sectors, will absorb Tata Motor Finance, whose asset under management stands at Rs 32,500 crore, predominantly focusing on financing solutions for both new and used commercial and passenger vehicles, as well as catering to dealers and vendors.</p> <p>The fiscal year 2024 saw Tata Capital and Tata Motors Finance posting profits after tax of Rs 3,150 crore and Rs 52 crore, respectively.</p> <p>With Tata Capital's limited footprint in CV/PV financing, the merger presents an opportunity to tap into the rapidly expanding CV/PV financing markets, intending to deliver innovative products and digital solutions while providing avenues for employee growth.</p> <p>The scheme of arrangement necessitates approval from regulatory bodies such as SEBI, RBI, and NCLT, alongside consent from shareholders and creditors of both Tata Capital and Tata Motors Finance, with an estimated completion timeline of 9-12 months. The merger is anticipated to have no detrimental impact on customers or creditors of Tata Motors Finance, ensuring a seamless transition into the new entity.</p>
<p>Motilal Oswal Home Finance Limited has disclosed its financial performance for the fiscal year 2023-24. The company witnessed a notable 10% increase in total revenue, reaching Rs. 589 crore, compared to Rs. 531 crore in FY23. Concurrently, total expenses also surged by 10%, reaching Rs. 417 crore from Rs. 356 crore in the previous fiscal year.</p> <p>Despite the growth in revenue, the Profit Before Tax (PBT) experienced a slight decline of 2.4%, standing at Rs. 171.2 crore in FY24, down from Rs. 175.5 crore in FY23. Similarly, the Profit After Tax (PAT) saw a decrease of 2.78%, amounting to Rs. 132.5 crore, compared to Rs. 136.3 crore in the preceding fiscal year. Consequently, the Earnings Per Share (EPS) for FY24 dipped to Rs. 0.22 from Rs. 0.23 in FY23.</p> <p>In terms of balance sheet metrics, the company's total assets grew by 10% to Rs. 455 crore, up from Rs. 414 crore in FY23, mirroring the increase in total liabilities, which also amounted to Rs. 455 crore, from Rs. 414 crore in the previous fiscal year.</p> <p>Furthermore, the company demonstrated improved cash flow performance in FY24. Cash generated from operating activities totaled Rs. 39.30 crore, reversing the negative cash flow of Rs. 239.18 crore observed in FY23. Additionally, cash generated from investing activities increased to Rs. 21.40 crore, compared to Rs. 4.66 crore utilized in FY23. Similarly, cash generated from financial activities amounted to Rs. 107.59 crore, a notable improvement from Rs. 287.85 crore in FY23.</p> <p><strong> Key Highlights </strong></p> <p><strong>1. Profit After Tax (PAT):</strong> Reported ₹133 crore in FY 2024.</p> <p><br /><strong>2. Disbursements:</strong> Crossed the ₹1,000 crore mark, reaching ₹1,018 crore in FY 2024, indicating potential for stronger growth.</p> <p><br /><strong>3. Credit Rating:</strong> Maintained a robust "AA/Stable" rating from CRISIL, ICRA, and India Rating.</p> <p><br /><strong>4. Team Structure: </strong>Operates with independent Sales, Credit, Collection, and Operations teams, totaling over 1,900 employees.</p> <p><br /><strong>5. Cost of Borrowing:</strong> Stood at 8.3%. Raised ₹1,337 crore of long and short-term funds in FY 2024.</p> <p><br /><strong>6. Composition of Loan Book:</strong> New Book, originated post-April 2018, contributed around 58% of the loan book with Gross Non-Performing Assets (GNPA) of 0.3%.</p> <p><br /><strong>7. Liability Mobilizations:</strong> Demonstrated strong mobilization from various banks and institutions at competitive rates.</p> <p><br /><strong>8. Partnership: </strong>Collaborated with the U.S. Development Finance Corporation in FY 2022, receiving a commitment of USD 50 million and receiving balance tranches aggregating to USD 20.0 million during the year.<br /><br /><strong>Valuation</strong><br /><br />The valuation at a P/B ratio of 7x appears excessively high, especially given the minimal growth in both revenue and profit in Fy24.</p>
<p>Waaree Energies Limited proudly announces the induction of Prabhu Narayan Singh as their Chief Sustainability Officer (CSO), marking a significant stride in their commitment towards sustainable growth. With a robust background spanning over thirty years in various leadership capacities within India's renewable energy sector, Singh brings a wealth of expertise in environmental, social, and governance (ESG) practices.</p> <p>Singh's appointment underscores Waaree's steadfast dedication to embedding ESG principles into its corporate DNA, reinforcing its mission to drive positive environmental and social impact alongside economic prosperity. His strategic vision aims to align the company's sustainability objectives with its broader strategic goals, fostering innovation, and ethical conduct.</p> <p>In assuming his role, Singh expressed his enthusiasm, stating, "Joining Waaree Energies Limited at this juncture is a privilege. I look forward to leveraging my experience to spearhead transformative ESG initiatives that will not only bolster the company's competitive edge but also contribute to sustainable development in the renewable energy landscape."</p> <p>Waaree Group anticipates that Singh's leadership will catalyze the company's trajectory towards sustainable growth and leadership in the renewable energy sector. His tenure is poised to elevate Waaree Energies Limited to new echelons of sustainability, reaffirming its commitment to environmental stewardship and social responsibility.</p> <p>This strategic appointment signifies Waaree Energies Limited's unwavering commitment to integrating robust ESG practices into its operational framework, ensuring long-term value creation for all stakeholders while safeguarding the planet for future generations.</p>
<p>In a strategic alliance, Tata Capital Healthcare Fund II, part of Tata Capital, has committed a substantial investment of $20 million to Orbicular Pharmaceutical Technologies, a leading specialty pharmaceutical firm headquartered in Hyderabad. This partnership aims to accelerate Orbicular's product development endeavors, reinforcing Tata Capital's pivotal role in fostering innovation within the healthcare sector.</p> <p>Tata Capital Healthcare Fund II's decision to inject capital into Orbicular underscores its unwavering dedication to identifying and supporting transformative trends in healthcare. With a strategic vision centered on serving as a "capital plus" partner, Tata Capital is committed to empowering companies like Orbicular to realize their full potential and drive positive change in the industry.</p> <p>The investment arrives amidst a dynamic landscape, characterized by the rapid expansion of the specialty generics market, which is valued at an impressive $60 billion. Orbicular, with its diverse portfolio of niche products catering to this burgeoning demand, is poised to capitalize on emerging opportunities and solidify its position as a key player in the sector.</p> <p>Visalakshi Chandramouli, Managing Partner of Tata Capital Healthcare Fund, reaffirmed Tata Capital's steadfast commitment to nurturing innovation and growth within the healthcare and life sciences domain. By strategically allocating resources to companies like Orbicular, Tata Capital aims to fuel innovation, drive efficiency, and enhance patient outcomes on a global scale.</p> <p>M S Mohan, Managing Director of Orbicular Pharmaceutical Technologies, expressed gratitude for Tata Capital's investment, emphasizing its significance in strengthening Orbicular's market presence and fostering robust partnerships. Mohan reiterated Orbicular's commitment to delivering high-quality, cost-effective pharmaceutical solutions that address unmet medical needs and improve patient care.</p> <p>Tata Capital Healthcare Fund stands as a cornerstone of Tata Capital Limited's overarching mission to drive sustainable growth and innovation across diverse sectors. With a track record of successful investments and strategic exits, Tata Capital Healthcare Fund continues to champion groundbreaking initiatives that shape the future of healthcare and life sciences. Through collaborative partnerships and strategic investments, Tata Capital remains at the forefront of driving positive change and creating lasting impact in the healthcare ecosystem.</p>
<p>OYO, the online travel aggregator, has reported its first profitable fiscal year in 2023-24, according to founder Ritesh Agarwal on social media platform X. The company recorded a net profit of approximately ₹100 crore, marking a significant turnaround from a loss of ₹1,286.5 crore in the previous fiscal year. While the figures are provisional, the final audited numbers are expected to be similar.</p> <p>Agarwal highlighted that OYO has maintained positive EBITDA (earnings before interest, taxes, depreciation, and amortisation) for eight consecutive quarters, with a robust cash balance of around ₹1,000 crore.</p> <p>The company's improved financial health was recognized by global credit rating agency Fitch, which upgraded the long-term foreign and local currency issuer default ratings of OYO’s parent company, Oravel Stays, from ‘B-’ to ‘B’. Fitch attributed the upgrade to Oravel Stays’ strong cash flow.</p> <p>Agarwal expressed optimism about future growth prospects, not only in the Indian market but also in key international regions including the Nordics, Southeast Asia, the US, and the UK.</p> <p>In FY2024, OYO expanded its portfolio by adding 5,000 hotels and 6,000 homes globally. The company achieved a profit after tax (PAT) of ₹99.6 crore and an adjusted EBITDA of ₹888 crore, a substantial improvement from the previous fiscal year.</p>
<p>On Thursday, NSE Indices Limited, a branch of the National Stock Exchange (NSE) specializing in index services, unveiled the Nifty EV & New Age Automotive Index. According to an NSE press release, this innovative index is intended to monitor the performance of companies engaged in the electric vehicle (EV) ecosystem and the development of advanced automotive technologies.</p> <p>Mukesh Agarwal, CEO of NSE Indices, remarked, "The Nifty EV & New Age Automotive Index, India’s inaugural Electric Vehicle Index, aligns with NSE’s goal to introduce cutting-edge indices that reflect current market trends. This launch will enable the creation of financial products, offering asset managers new investment opportunities in the EV and modern automotive sectors, thereby providing a novel investment vehicle for investors."</p> <p>India's government has been a strong proponent of policies aimed at encouraging the adoption of electric vehicles, with the goal of making India a leading manufacturing hub. These initiatives are designed to foster the domestic production of advanced EVs, attract investments from global EV manufacturers, and support the Make in India program.</p> <p>Additionally, the Indian EV market has shown significant growth potential, driven by increasing environmental awareness and rising fuel costs. The government's initiatives such as subsidies for EV purchases, tax benefits, and the development of charging infrastructure are further propelling this sector forward. This index aims to capture the growth of this dynamic industry and provide investors with a reliable metric to gauge market performance.</p> <p>The press release further noted that the new index is anticipated to serve as a benchmark for asset managers and as a reference index for passive investment funds, including Exchange Traded Funds (ETFs), index funds, and structured products.</p> <p><br />Moreover, this index is expected to attract a diverse set of investors, ranging from institutional to retail, looking to capitalize on the burgeoning EV market. With the global shift towards sustainable transportation, the Nifty EV & New Age Automotive Index positions itself as a forward-looking investment tool in an era of rapid technological advancement and environmental consciousness.</p>
<p>On Thursday, May 30, Hero MotoCorp Limited, the largest two-wheeler manufacturer in India, announced through an exchange filing that its financial services arm, Hero FinCorp Limited, has received approval from its Board of Directors to proceed with an Initial Public Offering (IPO).</p> <p>The proposed IPO will feature two main components. The first component is a fresh issue, where Hero FinCorp will issue new shares to raise capital from investors. The second component is an offer for sale, allowing existing shareholders to sell part of their stakes in the company to interested buyers.</p> <p>According to the regulatory filing, the IPO will include a fresh issuance of equity shares, each with a face value of Rs 10. The total value of these newly issued shares is projected to be Rs 40,000 million.</p> <p>Hero FinCorp aims to utilize the funds raised through the fresh issue to bolster its capital base, support business expansion, and enhance its lending capacity. This strategic move is expected to strengthen the company’s financial position and enable it to meet growing demand in the financial services sector.</p> <p><br />Market analysts predict that Hero FinCorp’s IPO could garner significant interest due to the company's strong market presence and robust financial performance. Additionally, the IPO is anticipated to boost investor confidence in the broader financial services market in India.</p> <p>With this approval, Hero FinCorp will now proceed with regulatory filings and other preparatory steps necessary to launch the IPO. The timeline for the IPO launch will be disclosed in subsequent communications, subject to market conditions and regulatory approvals.</p> <p>This IPO marks a significant milestone for Hero FinCorp as it seeks to leverage public markets to fuel its growth and expand its footprint in the competitive financial services industry.</p>
<p>Fitch Ratings announced on Monday that it has upgraded the long-term foreign and local currency issuer default ratings of Oravel Stays, the parent company of OYO, from 'B-' to 'B', with a 'Stable' outlook. This upgrade reflects the hospitality firm's strengthened financial standing.</p> <p>Additionally, Fitch has raised the rating on Oravel Stays' USD 660 million senior secured term loan due in 2026 from 'B-' to 'B'. The decision is based on expectations that OYO's EBITDA leverage will fall below 5x, supported by continuous EBITDA growth, cost reductions, a rebound in short-term stay demand, and a recent USD 195 million debt buyback in November 2023.</p> <p>The upgrade follows OYO's recent financial success, with the company posting a net profit of approximately INR 99.6 crore (USD 12 million) for the fiscal year 2023-24, as shared by Founder Ritesh Agarwal during a recent town hall meeting.</p> <p>Fitch highlighted OYO's strong liquidity position, noting the company's adequate cash reserves and the anticipation of positive free cash flow starting from the financial year ending March 2025 (FY25). As of March 2024, OYO had about USD 95 million in unrestricted cash, surpassing Fitch's post-debt buyback projection of USD 80-90 million.</p> <p>Fitch believes that OYO's enhanced profitability and decreasing leverage will facilitate timely refinancing of its debt. The rating agency also forecasts continued improvement in the travel and tourism sectors within OYO's main markets for FY25.</p> <p>Overall, Fitch's upgrade of Oravel Stays' ratings underscores the company's improved financial health and positive outlook for the future.</p>
<p>The Reserve Bank of India (RBI) has levied a penalty of Rs 3.1 lakh on Hero FinCorp Limited due to regulatory non-compliance in specific areas concerning fair practices code. This penalty, however, reflects deficiencies in adhering to regulatory standards and does not question the validity of the company's transactions or agreements with its clientele.</p> <p>The imposition of the penalty follows a statutory inspection conducted by the RBI, referencing the company's financial status as of March 31, 2023. Subsequent to supervisory observations indicating deviations from RBI directives and related correspondence on the matter, the company was issued a notice to justify why penalties should not be imposed for its failure to adhere to regulatory directives.</p> <p>After assessing the company's response to the notice, oral arguments presented during the personal hearing, and reviewing additional submissions, the RBI concluded that the charge against Hero FinCorp was substantiated, necessitating the imposition of a monetary penalty.</p> <p>One of the identified shortcomings was the company's failure to provide borrowers with loan terms and conditions in a language comprehensible to them. The RBI clarified that the penalty imposed does not preclude any further action that may be taken against the company.</p> <p>The regulatory action underscores the RBI's commitment to upholding compliance standards within the financial sector, ensuring fair practices and transparency in dealings with customers.</p>
<p>Starting June 10, the National Stock Exchange (NSE) will implement a one paisa tick size for all stocks trading below Rs 250 per share, as announced in a circular issued on May 24. This change aims to enhance price discovery and reflects the ongoing competitive dynamics between NSE and BSE for market leadership, as noted by market analysts.</p> <p>A tick size represents the minimum price variation between consecutive bid and offer quotes. Additionally, beginning July 8, stock futures will adopt the same tick size as the cash market segment. This adjustment will apply to all futures contracts, including Near-Month, Middle-Month, and Far-Month expiries, according to the NSE circular.</p> <p><br />The introduction of a one paisa tick size for stocks priced below Rs 250 is a strategic move by the NSE to improve the precision of price discovery. By allowing for smaller price increments, the exchange aims to facilitate more accurate and granular adjustments in stock prices, which can benefit both traders and investors. This finer tick size can lead to tighter bid-ask spreads, potentially reducing trading costs and increasing market liquidity.</p> <p>This measure is also indicative of the intense rivalry between the NSE and BSE. Both exchanges are continuously seeking ways to attract more trading volume and market participants. By implementing a more competitive tick size, the NSE could draw traders who are looking for better price efficiency, thereby potentially increasing its market share.</p> <p>Market participants are likely to view this change positively. Tighter spreads can lead to lower transaction costs, making trading more attractive. However, there could be some initial adjustments required for trading algorithms and systems to adapt to the new tick size.</p> <p><br />Overall, the introduction of a one paisa tick size for lower-priced stocks and futures represents a significant step by the NSE to enhance market efficiency, attract more participants, and stay ahead in the competitive landscape of Indian stock exchanges.</p>
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