Analysis, guides and explainers on India's unlisted market — from IPO pipelines to ESOP liquidity.
The following three significant items were brought to the attention of shareholders by API holdings on August 19, 2022. <strong>1.</strong> The management of API holdings has made the decision to withdraw the RHP of IPO due to the weak market conditions and strategic considerations that have been taken into account. <strong>2.</strong> We are all aware that API Holdings is the company with the fastest rate of expansion in the e-commerce sector for pharmacy, and because of this, they have a constant need for additional funding. Because the IPO has been delayed, they are thinking about doing a right issue to raise additional capital. For those who aren't familiar with the term, "right issue" refers to the process of soliciting additional financial support from the company's current shareholders. <strong>3.</strong> In the month of September, API holdings will be conducting a right issue in order to raise capital. Every stakeholder in the company will receive their own individual mailing with instructions on how to subscribe to the Right Issue. The price of each share in the Right issuance is anticipated to be Rs.100. It is anticipated that the Right Issue will be released during the first week of September. <strong>UnlistedZone Take:</strong> According to our assessment, the reason API holdings have withdrawn the RHP is because they were not receiving the appropriate valuation in the market. The most recent round of financing that they secured was between Rs.57 and Rs.60 per share. In the event of an initial public offering (IPO), you are required to solicit financial backing from outside investors. We believe that the Indian and foreign investors were not willing to give even the value of Rs.50 per share at this stage, which would translate to a valuation of $4 billion dollars. Because of this, the management of API holdings has decided to cancel an initial public offering (IPO) and instead launch a right issue at a price of Rs.100 per share. If you look, you'll find that shares of Pharmeasy may be purchased for Rs. 40 per share in the unlisted market. Therefore, the question that has to be answered is why investors are going to subscribe to it for Rs.100 per share in the right issue. In the first place, they have not specified the size of the Right issue. Second, we believe that the large investors who are existing investors will put in an application for the right issue. It is possible that the goal is to try to establish a base price of Rs.100 in the private market because the retail investors will never apply in the right issue at Rs.100 per share. Moreover, this is the expected price and not final <a href="https://unlistedzone.com/storage/knowledge-logo/WhatsApp-Image-2022-08-21-at-9.19.58-AM.jpeg.zip">Document</a>
<h5>IPO News</h5> During the fiscal year ended March 31, 2022, Five Star Business Finance submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) and received approval for an Initial Public Offering (IPO) of its shares. However, the last quarter, when Five Star Business Finance was about to complete the listing of its shares, saw significant headwinds in the capital market; despite its strong performance, which was also appreciated by investors during the roadshow meetings, the capital market headwinds contributed to overall sentiment turning negative, forcing the company to postpone the listing plans. <h5>Business Performance</h5> <strong>1.</strong> Five Star Business Finance has increased its loan disbursement to INR 1,756.24 crores for the fiscal year ending March 31, 2022, from INR 1,245.05 crores the previous fiscal year. <strong>2.</strong> Five Star Business Finance branch network increased to 300 from 262 during the fiscal year ending March 31, 2022, thanks to the addition of 38 new locations. <strong>3.</strong> Total loan assets under management increased by 14 percent to INR 5,067 crores as of March 31, 2022, from INR 4,445 crores the previous fiscal year. <strong>4.</strong> Five Star Finance has maintained strong asset quality for the fiscal year ended March 31, 2022, with Gross NPAs of 1.05 percent, which is among the best in the industries. <strong>5.</strong> During the fiscal year ended March 31, 2022, Five Star Business Finance funding, both on the equity and debt sides, was very encouraging. During the first quarter of the fiscal year, it raised new equity capital by adding marquee names like KKR and TVS Capital to its shareholder list. As part of this fundraising round, the company has provided an attractive exit to one of the earliest private equity investors-NHPEA Chocolate Holding B.V. (Morgan Stanley) in addition to the 518 crores of capital raised.
<div class="page" title="Page 1"> <div class="section"> <div class="layoutArea"> <div class="column"> <strong>The main highlight of the bill</strong> <ol> <li>The bill will make it possible for private companies to enter the distribution business.</li> <li>It will also allow consumers to choose their preferred power distributor, similar to how we do in telecom.</li> <li>Farmers will continue to receive subsidies.</li> </ol> <strong>Why is the government bringing this bill forward?</strong> There are three main elements in the supply chain of power companies in India. <ol> <li>Generators that generate electricity by using power plants</li> <li>Transmission lines that carry electricity from power plants to state distribution companies.</li> <li>State Power Distribution companies then provide electricity to our businesses and homes.</li> </ol> We pay our electric bills to the state power distribution companies, who then pay the power generators and transmission line companies. <strong>Power generators companies in India</strong> NTPC, Tata Power, Reliance Power, and so on. So we have both PSUs and private companies in power generation. <strong>Transmission line companies in India</strong> In transmission lines, we have Power Grid, Sterlite Power, Adani Transmission, etc. So here also we have both PSUs and private companies in transmission lines. <strong>Distributions Companies</strong> The majority of the State Discoms in India are government-owned, with about 10% is privately owned. <strong>Power distribution</strong> to the end user remains the weakest link in the power sector's supply chain. Most distribution utilities are incurring significant losses as a result of costly long-term power purchase agreements, inadequate infrastructure, and inefficient operations, among other factors. These losses, in turn, prevent them from making the necessary investments to improve the quality of the power supply and prepare for greater use of renewable energy. </div> </div> </div> </div> <div class="page" title="Page 2"> <div class="section"> <div class="layoutArea"> <div class="column"> <strong>Why we don’t get electricity despite having a power surplus?</strong> </div> </div> <div class="layoutArea"> <div class="column"> Currently, India is a power surplus but we still not getting 24/7 power everywhere in our country. What is the reason for this? <strong>To understand this let us know how DISCOM is functioning.</strong> We all know that most of our homes and businesses still get their electricity from state-owned distribution companies. Power is primarily purchased by the state-owned DISCOM from generation companies. They purchase power on long-term contracts. Assume they enter into a contract with, say, NTPC to purchase 1000 MW of electricity every day. As a result, they will have to pay NTPC based on this. Assume that the distribution companies can only sell 800 MW of electricity. The reason for selling less electricity could be due to poor infrastructure, improper maintenance of power lines, inability to solve electricity problems on time, and so on. They can't buy 1000 MW of electricity every day and sell 800 MW to end users, as they can with other commodities. We cannot store electricity. As a result, NTPC must shut down their plants for some duration in a day in order to produce only 800 MW of required power. DISCOM did not use 200 MW of electricity, but keep in mind that they have already signed a contract to buy 1000 MW on a daily basis. So they must book this loss in their books. Their losses have accumulated over the years as a result of this issue. To cover these losses, they continue to take loans and strain their balance sheet. One solution is to sell the surplus energy of 200 MW and enter into contracts with states that have a power deficit. However, another issue is that this 200 MW is a long-term contract with higher fees. A state with a power deficit always attempts to purchase electricity through short-term contracts, which are generally less expensive. Another reason DISCOM is losing money is that the government frequently announces during elections that they will waive electricity charges for farmers if they win. As a result, all losses are recorded in the DISCOM books once more. <strong>New Electricity Bills</strong> The new electricity bill aims to address DISCOM's long-term problems. They intend to privatize DISCOM. Once completed, all of our power issues will be resolved. We will all have access to electricity 24 hours a day, seven days a week. We will be able to select a power distributor based on how much it charges per unit bill. Companies will compete in the same way that we have seen in the telecom sector. In this world, competition is the only way to bring about efficiencies. This new electricity bill will not only solve the problem for end users, but also for power generation companies like NTPC that are not receiving timely payments from DISCOMs, transmission line companies like Sterlite Power, and so on. </div> </div> </div> </div>
Please keep in mind that Utkarsh Coreinvest is a holding company for Utkarsh Small Finance Bank, whose stock is traded on the unlisted market. So, Utkarsh Small Finance Bank handles everything, and Utkarsh Coreinvest is merely a holding company. Let us begin by calculating the value of Utkarsh Small Finance Bank. (i) Net-Worth (Fy22) = 1571 crores (ii) No. of Shares Shares (Fy22) = 89 crores (iii) Book-Value (Fy22) = 1571/89 = 17.65 per share (iv) 6.1 percent NPA (Fy22) (increased from 3.75 percent in Fy21). If we give a P/B value of 1.5x to 2x, the per-share value of Utkarsh Small Finance Bank will be Rs.26-35. M.cap = (26 or 35) *89 = 2300-3100 Cr. In general, once a subsidiary is listed, the holding company values it at a 50% discount. As a result, Utkarsh Coreinvest should be valued between Rs. 1000 and Rs. 1500 crores. M.cap in unlisted market = 1700 Cr ( at Rs. 170 per share) Conclusion: The unlisted share of Utkarsh Coreinvest is currently overvalued in the unlisted market
If you examine the buying patterns in the unlisted market, you'll see that they are motivated by the IPO market's enthusiasm. Investors will increasingly turn to the pre-IPO market if IPOs continue to increase in number, as they did in 2021. However, in reality, the opposite ought to occur. The majority of investors flood the market when it is euphoric, which causes losses in the unlisted market. The unlisted share market was booming in 2021 as a result of a huge number of IPOs, which caused the valuation of all unlisted shares to skyrocket. So, all investors who had entered at higher levels during 2021 today has negative portfolios. Flashback three years to a time (Year 2019) when the unlisted market was less euphoric. All of the scripts were reasonably priced. There weren't many IPOs coming to the market. There weren't many investors seeking for deals. It was a good opportunity to invest in the unlisted market but nobody was interested in the unlisted market at that point. The investors in the unlisted market who made investments at that time has received multi-bagger returns in many scripts. Some of these scripts are mentioned below. <ol style="list-style-type: lower-alpha;"> <li>CSK Unlisted Share from 20 to 240 in last 3 years.</li> <li>Care Health Unlisted Share from 35 to 250 in last 4 years.</li> <li>National Stock Exchange Unlisted Share from 800 to 4000 in last 3 years.</li> <li>Tata Tech Unlisted Share from 800 to 6000 in last 3-4 years.</li> <li>Reliance Retail Unlisted Share from 500 to 3500 in last 3-4 years.</li> <li>Studds Unlisted Share from 100 to 2000 in last 5 years.</li> <li> Elofic Unlisted Share Industries from 100 to 3000 in last 5 years.</li> <li> Lava Unlisted Share from 200 to 1000 in last 2 years.</li> <li>Sterlite Power Unlisted Share from 100 to 1600 in last 2 years.</li> </ol> There are other additional scripts in the unlisted market that have produced positive results. <h5>The following is a list of the main factors that contributed to the above scripts' success in the unlisted market.</h5> <ol style="list-style-type: lower-alpha;"> <li>All of these unlisted shares were offered at the right price.</li> <li>All of these unlisted equities have shown strong fundamental performance.</li> <li>Three years ago, there was less demand for all of these shares.</li> </ol> <h5>Some unlisted shares, though, haven't done well during the past three to four years.</h5> <ol style="list-style-type: lower-alpha;"> <li><strong>MSEI:</strong> Over the past four years, the price has fluctuated between Rs. 1 to Rs. 1.5. The company's business has not increased during the past four years. This is the cause of the underperformance of this unlisted stock.</li> <li><strong>ICEX:</strong> Over the past four years, the price per share has decreased from Rs.12 to Rs.5. Reasons include a lack of revenue growth and the recent SEBI termination of ICEX's licence due to the exchange's net worth falling below 100 Cr.</li> <li><strong>Bharat Hotel:</strong> The price per share of this unlisted company decreased from Rs. 440 in 2018–19 to Rs. 150 on the unlisted market. The cause was poor financial performance in the last 2 years due to covid-19.</li> <li><strong>HDB Financials:</strong> The price per share of this unlisted stock decreased from Rs. 1100 in 2018–19 to Rs. 640 in the unlisted market. The reason was poor financial performance in the last 2 years due to covid-19. Rising NPAs and stagnant loan book growth were the primary causes of the unlisted share price to decline. But now that the corporation has returned to its pre-covid level, it will do well over the next 2-3 years.</li> </ol> <h5>Is this the correct time to invest?</h5> There has been a continuous selling in the unlisted market over the last 4 to 6 months. There are very few buyers available in the unlisted market. Everyone is only interested in selling. As a result, the prices of many scripts have dropped. At the moment, there is no euphoria for unlisted space. There will be no IPOs in the primary market. All of these conditions are creating a Zone which was there in the unlisted market in the year 2019. So, select good scripts and slowly start accumulating the fundamentally good unlisted shares from the market. If you face any issues in selecting fundamentally good scripts, then request to visit the below URL. Registers your account and you will get a dashboard in which we regularly update the top 10-15 scripts available in the unlisted market. <a href="https://crm.unlistedzone.com/customer/login">https://crm.unlistedzone.com/customer/login</a> <h5>Conclusions:</h5> <ol style="list-style-type: lower-alpha;"> <li>The average investor always invests when the unlisted market is in euphoria. Because of this, people are always end up paying a premium for unlisted stocks. If you acquire unlisted shares at a high price, your odds of profiting are slim. So, invest when nobody is buying.</li> <li>Only put your money into companies that have a solid foundation. It's common for people to acquire penny stocks believing that they'll make a fortune, but this isn't the case. Penny stocks are a near-impossible investment to profit from. So, if you want to make money in the long run, stick to the fundamentally strong unlisted companies.</li> </ol>
<h4>1. What is ONDC?</h4> Open Network for Digital Commerce (ONDC) is a non-profit company backed by the government of India to promote open networks for all aspects of the exchange of goods and services over one digital network. The experts believe this will be a game changer in the Indian e-commerce space. The platform will democratise the country's fast growing e-commerce space and provide equal opportunities to all the e-commerce players. The initiative taken by the government will reduce the monopoly, duopoly and revolutionize the e-commerce space by providing opportunities to micro, small and medium enterprises(MSME) which are left behind in capturing the e-commerce market. Currently, the e-commerce space is dominated by U.S. giants - Amazon, Walmart. <h4> 2. Why is this considered the next disruptor in e-commerce similar to what UPI did in payment?</h4> In recent years, UPI has become the most inclusive mode of payment in India with over 26 crore unique users and 5 crore merchants on the platform. UPI has disrupted the payment industry in favor of consumers and the economy of the country by removing transaction fees, having zero Merchant Discount Rate (MDR) policy and diluting the control of banks over transactions. Similarly, it is argued that ONDC will do the same by revolutionising the e-commerce space and diluting the control of big players over the e-commerce space. With ONDC a very small retailer will be immediately visible on the platform. The customer can discover any product, service and compare prices based on a unified search feature by using ONDC and thus it won't affect the freedom of the choice of the customers rather it would give more features. <h4> 3. How Reliance Retail is planning to enter ONDC?</h4> After Dunzo, Reliance Retail owned last-mile logistics provider Grab.in , has integrated its platform with Open Network for Digital Commerce (ONDC). Grab.in is owned by Reliance Retail with 80% stakeholding. Reliance Industries acquired Grab in 2019 and is now housed under Reliance Retail. Reliance Retail backed Dunzo is already integrated with ONDC as one of the logistics partners. Grab's entry on ONDC marks Reliance's formal entry into much hyped network, pitched as a disruptor to break the dominance of U.S. based giants- Amazon and Walmart owned Flipkart by bringing small retailers online. Grab is in the process of starting a pilot project with ONDC and it is in the nascent stage. "We look forward to growing our partnership with ONDC and our focus will be to provide a smooth and efficient delivery experience for our clients across sectors", said Pratish Sanghavi founder of Grab. https://unlistedzone.com/shares/reliance-retail-limited-unlisted-shares/
<strong>About Utkarsh Small Finance Bank Unlisted Shares</strong> <span style="font-weight: 400;">Established in 2009 as a Micro Finance business, Utkarsh Small Finance Bank is a banking firm that provides affordable banking services such as MSME loans, housing loans, accounts, deposits, insurance, investments, and almost all bank-related services across India. Varanasi-headquartered Utkarsh Small Finance Bank was started as a Microfinance business by Govind Singh and later in 2016 was reconstituted as a bank with the mission and vision of becoming a preferred financial institution through technology-enabled solutions. </span><span style="font-weight: 400;">The company's operations are spread across India and are present in 22 States and Union Territories with 686 Banking Outlets </span><span style="font-weight: 400;">and 12,617 employees, as of March 31, 2022.</span> <strong>Major Shareholders in Utkarsh Small Finance Bank</strong> <span style="font-weight: 400;">The major shareholders of the company are Utkarsh CoreInvest Limited, and Olympus ACF Pte. Limited, Bharti AXA Life Insurance Company Limited, Triodos Sicav II - Triodos Microfinance Fund, responsAbility Participations Mauritius, Aavishkaar Bharat Fund, and Growth Catalyst Partners LLC. </span> <strong>New DRHP Filed by Utkarsh Small Finance Bank with reduced size</strong> <span style="font-weight: 400;">Utkarsh Small Finance Bank has refiled the DRHP with SEBI to raise funds from the stock market. The company is looking to raise 500 crores via Initial Public Offering (IPO). The company will raise funds through fresh issues only. No existing investors or promoters are selling their shares. Earlier in July 2021 the company filed DRHP with SEBI and was looking to raise Rs 1350 crore which consisted of a new issue of Rs 750 crore and an OFS of Rs 600 crore by its promoters Utkarsh Coreinvest. </span> <strong>Financials of the Company (Fig. in Cr)</strong><b> </b> <div class="table-overflow-init"> <table width="100%"> <tbody> <tr style="height: 23px;"> <td style="height: 23px; text-align: center;"></td> <td style="height: 23px; text-align: center;" data-sheets-value="{"1":3,"3":44642}" data-sheets-numberformat="{"1":5,"2":"mmmm-d","3":1}"><strong>March-22</strong></td> <td style="height: 23px; text-align: center;" data-sheets-value="{"1":3,"3":44641}" data-sheets-numberformat="{"1":5,"2":"mmmm-d","3":1}"><strong>March-21</strong></td> <td style="height: 23px; text-align: center;" data-sheets-value="{"1":3,"3":44640}" data-sheets-numberformat="{"1":5,"2":"mmmm-d","3":1}"><strong>March-20</strong></td> </tr> <tr style="height: 23px;"> <td style="height: 23px; text-align: center;" data-sheets-value="{"1":2,"2":"Net Interest Margins"}">Net Interest Margins</td> <td style="height: 23px; text-align: center;" data-sheets-value="{"1":3,"3":1060.85}" data-sheets-numberformat="{"1":2,"2":"#,##0","3":1}" data-sheets-formula="=R[0]C[-5]-R[6]C[-5]">1,061</td> <td style="height: 23px; text-align: center;" data-sheets-value="{"1":3,"3":839.24}" data-sheets-numberformat="{"1":2,"2":"#,##0","3":1}" data-sheets-formula="=R[0]C[-5]-R[6]C[-5]">839</td> <td style="height: 23px; text-align: center;" data-sheets-value="{"1":3,"3":728.22}" data-sheets-numberformat="{"1":2,"2":"#,##0","3":1}" data-sheets-formula="=R[0]C[-5]-R[6]C[-5]">728</td> </tr> <tr style="height: 23px;"> <td style="height: 23px; text-align: center;" data-sheets-value="{"1":2,"2":"Other Income"}">Other Income</td> <td style="height: 23px; text-align: center;" data-sheets-value="{"1":3,"3":184.83}" data-sheets-numberformat="{"1":2,"2":"#,##0","3":1}" data-sheets-formula="=R[0]C[-5]">185</td> <td style="height: 23px; text-align: center;" data-sheets-value="{"1":3,"3":124.849}" data-sheets-numberformat="{"1":2,"2":"#,##0","3":1}" data-sheets-formula="=R[0]C[-5]">125</td> <td style="height: 23px; text-align: center;" data-sheets-value="{"1":3,"3":98.49}" data-sheets-numberformat="{"1":2,"2":"#,##0","3":1}" data-sheets-formula="=R[0]C[-5]">98</td> </tr> <tr style="height: 23px;"> <td style="height: 23px; text-align: center;" data-sheets-value="{"1":2,"2":"Total Income"}"><strong>Total Income</strong></td> <td style="height: 23px; text-align: center;" data-sheets-value="{"1":3,"3":1245.6799999999998}" data-sheets-numberformat="{"1":2,"2":"#,##0","3":1}" data-sheets-formula="=sum(R[-2]C[0]:R[-1]C[0])">1,246</td> <td style="height: 23px; text-align: center;" data-sheets-value="{"1":3,"3":964.089}" data-sheets-numberformat="{"1":2,"2":"#,##0","3":1}" data-sheets-formula="=sum(R[-2]C[0]:R[-1]C[0])">964</td> <td style="height: 23px; text-align: center;" data-sheets-value="{"1":3,"3":826.71}" data-sheets-numberformat="{"1":2,"2":"#,##0","3":1}" data-sheets-formula="=sum(R[-2]C[0]:R[-1]C[0])">827</td> </tr> <tr style="height: 23px;"> <td style="height: 23px; text-align: center;" data-sheets-value="{"1":2,"2":"Operating Expenses"}"><strong>Operating Expenses</strong></td> <td style="height: 23px; text-align: center;" data-sheets-value="{"1":3,"3":736.34}" data-sheets-numberformat="{"1":2,"2":"0","3":1}" data-sheets-formula="=R[1]C[-5]">736</td> <td style="height: 23px; text-align: center;" data-sheets-value="{"1":3,"3":545.05}" data-sheets-numberformat="{"1":2,"2":"0","3":1}" data-sheets-formula="=R[1]C[-5]">545</td> <td style="height: 23px; text-align: center;" data-sheets-value="{"1":3,"3":476.48}" data-sheets-numberformat="{"1":2,"2":"0","3":1}" data-sheets-formula="=R[1]C[-5]">476</td> </tr> <tr style="height: 47px;"> <td style="height: 47px; text-align: center;" data-sheets-value="{"1":2,"2":"Profit before Provisions"}">Profit before Provisions</td> <td style="height: 47px; text-align: center;" data-sheets-value="{"1":3,"3":509.3399999999998}" data-sheets-numberformat="{"1":2,"2":"#,##0","3":1}" data-sheets-formula="=R[-6]C[0]-R[-2]C[0]">509</td> <td style="height: 47px; text-align: center;" data-sheets-value="{"1":3,"3":419.0390000000001}" data-sheets-numberformat="{"1":2,"2":"#,##0","3":1}" data-sheets-formula="=R[-6]C[0]-R[-2]C[0]">419</td> <td style="height: 47px; text-align: center;" data-sheets-value="{"1":3,"3":350.23}" data-sheets-numberformat="{"1":2,"2":"#,##0","3":1}" data-sheets-formula="=R[-6]C[0]-R[-2]C[0]">350</td> </tr> <tr style="height: 23px;"> <td style="height: 23px; text-align: center;" data-sheets-value="{"1":2,"2":"Provisions"}"><strong>Provisions</strong></td> <td style="height: 23px; text-align: center;" data-sheets-value="{"1":3,"3":447.87}" data-sheets-numberformat="{"1":2,"2":"0","3":1}" data-sheets-formula="=R[-2]C[-5]">448</td> <td style="height: 23px; text-align: center;" data-sheets-value="{"1":3,"3":307.22}" data-sheets-numberformat="{"1":2,"2":"0","3":1}" data-sheets-formula="=R[-2]C[-5]">307</td> <td style="height: 23px; text-align: center;" data-sheets-value="{"1":3,"3":163.49}" data-sheets-numberformat="{"1":2,"2":"0","3":1}" data-sheets-formula="=R[-2]C[-5]">163</td> </tr> <tr style="height: 23px;"> <td style="height: 23px; text-align: center;" data-sheets-value="{"1":2,"2":"Profit after Provisions"}">Profit after Provisions</td> <td style="height: 23px; text-align: center;" data-sheets-value="{"1":3,"3":61.4699999999998}" data-sheets-numberformat="{"1":2,"2":"#,##0","3":1}" data-sheets-formula="=R[-4]C[0]-R[-2]C[0]">61</td> <td style="height: 23px; text-align: center;" data-sheets-value="{"1":3,"3":111.81900000000007}" data-sheets-numberformat="{"1":2,"2":"#,##0","3":1}" data-sheets-formula="=R[-4]C[0]-R[-2]C[0]">112</td> <td style="height: 23px; text-align: center;" data-sheets-value="{"1":3,"3":186.74}" data-sheets-numberformat="{"1":2,"2":"#,##0","3":1}" data-sheets-formula="=R[-4]C[0]-R[-2]C[0]">187</td> </tr> <tr style="height: 23px;"> <td style="height: 23px; text-align: center;" data-sheets-value="{"1":2,"2":"Net-Profit"}"><strong>Net-Profit</strong></td> <td style="height: 23px; text-align: center;" data-sheets-value="{"1":3,"3":61.4699999999998}" data-sheets-numberformat="{"1":2,"2":"#,##0","3":1}" data-sheets-formula="=R[-2]C[0]">61</td> <td style="height: 23px; text-align: center;" data-sheets-value="{"1":3,"3":111.81900000000007}" data-sheets-numberformat="{"1":2,"2":"#,##0","3":1}" data-sheets-formula="=R[-2]C[0]">112</td> <td style="height: 23px; text-align: center;" data-sheets-value="{"1":3,"3":186.74}" data-sheets-numberformat="{"1":2,"2":"#,##0","3":1}" data-sheets-formula="=R[-2]C[0]">187</td> </tr> </tbody> </table> </div> As you can see the net-interest margins are increasing at good rate in the last 3 years that means the Utkarsh Small Finance bank is increasing the loan book. However, due to high provisions for NPAs, the profitability is reducing in the last 3 years from 187 Crores in FY19 to just at 60 Crores in Fy22. <strong>Rising NPAs in Utkarsh Small Finance Bank</strong> COVID 2nd wave caused significant healthcare crisis and had a major impact on the economic and financial activities. As Utkarsh Small Finance Bank book is mainly Microfinance business comprises >75% of Bank’s loan book and it was the most impacted loan book on account of underlying borrowers being marginal income profile as well as largely engaged in the self-employed activity. As a result, the Bank’s asset quality was impacted significantly during FY 2021-22 with increase in Gross NPAs from 3.75% as of March 31, 2021 to 6.10% as of March 31, 2022. The Bank’s Net NPAs increased to 2.31% as of March 31, 2022 from 1.33% as of March 31, 2021. Bank is holding provisional coverage of 63.62% as of March 31, 2022. <div class="table-overflow-init"> <strong>Unlisted Shares of Utkarsh Microfinance</strong> The shares of Utkarsh Small Finance Banks are not available in the unlisted market but instead of this its parent company i.e. Utkarsh Micro Finance are available in the unlisted market. However, at present the investment in this company is risky as 75% book is micro-finance which was impacted by Covid-19 and now inflation will also impact this. https://unlistedzone.com/shares/share-price-utkarsh-micro-finance-buy-sell-unlisted-shares/ </div>
<p><span style="font-weight: 400;">Leading non banking financial company HDB Financial Services has announced its results for the quarter ending June 30, 2022 on July 16, 2022. <br /><br />The company was able to clock a total income from its operation of Rs. 2980.2 crore which is an increase of 5.89% compared to Rs 2814.4 crore in the same period previous year.</span> <br /><br /><span style="font-weight: 400;">The company has reported an increase in net profit by almost 4 times to Rs. 441.3 crore from Rs. 86.6 crore compared to the same quarter previous year . However, there is a marginal increase of 3.34 percent in net profit to 441.3 crore from 427 crore compared to the previous quarter. </span> <br /><br /><span style="font-weight: 400;">Talking about provisions, the company has reported an astounding drop by 54.19 percent from Rs. 869.6 crore quarter ended on 30 June, 2021 to Rs. 398.3 crore quarter ended on 30 June 2022 and 5.57 percent drop compared to the previous quarter which is good for a company. This shows that the NPAs of HDB Financial Unlisted Share are getting reduced and the company is on the path of profitability. <br /><br /></span> <span style="font-weight: 400;">In the financial year 2021-22, the board has decided a final dividend of Rs 1 per equity share.</span> <span style="font-weight: 400;">HDB financial services limited is one of the subsidiaries of HDFC Bank. It is fully owned by HDFC Bank with 95 percent stake. The major sources of income for the company are interest from lending business and BPO services. </span> <br /><br /><span style="font-weight: 400;">HDB financial services limited was incorporated in 2007, which offers a wide range of secured and unsecured loans to customers and BPO services. As of now, it has more than 1300 branches across 24 states and 3 union territories. It has a digital platform which enables its customers to have easy access to its products and services. </span> <br /><br /><strong>Financial Results Discussion of HDB Financials Q1FY23 (</strong><em>Fig. in Crores</em><strong>)</strong></p> <div class="table-overflow-init"> <table style="width: 79.2745%; height: 345px;" width="100%"><colgroup> <col width="203" /> <col width="100" /> <col width="100" /> <col width="100" /></colgroup> <tbody> <tr style="height: 23px;"> <td style="height: 23px; text-align: center; width: 22.026%;"><strong>Particulars (Fig in Crores)</strong></td> <td style="height: 23px; text-align: center; width: 21.1896%;" data-sheets-value="{"1":2,"2":"Q1FY23"}"><strong>Q1FY23</strong></td> <td style="height: 23px; text-align: center; width: 17.0074%;" data-sheets-value="{"1":2,"2":"Q4FY22"}"><strong>Q4FY22</strong></td> <td style="height: 23px; text-align: center; width: 18.1227%;" data-sheets-value="{"1":2,"2":"Q1FY22"}"><strong>Q1FY22</strong></td> </tr> <tr style="height: 23px;"> <td style="text-align: center; height: 23px; width: 22.026%;" data-sheets-value="{"1":2,"2":"NIM (Net Interest Margins)"}">NIM (Net Interest Margins)</td> <td style="text-align: center; height: 23px; width: 21.1896%;" data-sheets-value="{"1":3,"3":1326}">1326</td> <td style="text-align: center; height: 23px; width: 17.0074%;" data-sheets-value="{"1":3,"3":1319}">1319</td> <td style="text-align: center; height: 23px; width: 18.1227%;" data-sheets-value="{"1":3,"3":1290}">1290</td> </tr> <tr style="height: 23px;"> <td style="text-align: center; height: 23px; width: 22.026%;" data-sheets-value="{"1":2,"2":"Other Income"}">Other Income</td> <td style="text-align: center; height: 23px; width: 21.1896%;" data-sheets-value="{"1":3,"3":858}">858</td> <td style="text-align: center; height: 23px; width: 17.0074%;" data-sheets-value="{"1":3,"3":829}">829</td> <td style="text-align: center; height: 23px; width: 18.1227%;" data-sheets-value="{"1":3,"3":655}">655</td> </tr> <tr style="height: 23px;"> <td style="text-align: center; height: 23px; width: 22.026%;" data-sheets-value="{"1":2,"2":"(Total Income)"}"><strong>Total Income</strong></td> <td style="text-align: center; height: 23px; width: 21.1896%;" data-sheets-value="{"1":3,"3":2184}">2184</td> <td style="text-align: center; height: 23px; width: 17.0074%;" data-sheets-value="{"1":3,"3":2148}">2148</td> <td style="text-align: center; height: 23px; width: 18.1227%;" data-sheets-value="{"1":3,"3":1945}">1945</td> </tr> <tr style="height: 23px;"> <td style="text-align: center; height: 23px; width: 22.026%;" data-sheets-value="{"1":2,"2":"Operational Cost"}">Operational Cost</td> <td style="text-align: center; height: 23px; width: 21.1896%;" data-sheets-value="{"1":3,"3":1173}">1173</td> <td style="text-align: center; height: 23px; width: 17.0074%;" data-sheets-value="{"1":3,"3":1119}">1119</td> <td style="text-align: center; height: 23px; width: 18.1227%;" data-sheets-value="{"1":3,"3":930}">930</td> </tr> <tr style="height: 23px;"> <td style="text-align: center; height: 23px; width: 22.026%;" data-sheets-value="{"1":2,"2":"Profit before Provisioning [1-2]"}">Profit before Provisioning</td> <td style="text-align: center; height: 23px; width: 21.1896%;" data-sheets-value="{"1":3,"3":1011}">1011</td> <td style="text-align: center; height: 23px; width: 17.0074%;" data-sheets-value="{"1":3,"3":1029}">1029</td> <td style="text-align: center; height: 23px; width: 18.1227%;" data-sheets-value="{"1":3,"3":1015}">1015</td> </tr> <tr style="height: 23px;"> <td style="text-align: center; height: 23px; width: 22.026%;" data-sheets-value="{"1":2,"2":"Provisioning"}">Provisioning</td> <td style="text-align: center; height: 23px; width: 21.1896%;" data-sheets-value="{"1":3,"3":398}">398</td> <td style="text-align: center; height: 23px; width: 17.0074%;" data-sheets-value="{"1":3,"3":421}">421</td> <td style="text-align: center; height: 23px; width: 18.1227%;" data-sheets-value="{"1":3,"3":869}">869</td> </tr> <tr style="height: 23px;"> <td style="text-align: center; height: 23px; width: 22.026%;" data-sheets-value="{"1":2,"2":"Profit after Provisioning [3-4]"}">Profit after Provisioning</td> <td style="text-align: center; height: 23px; width: 21.1896%;" data-sheets-value="{"1":3,"3":613}">613</td> <td style="text-align: center; height: 23px; width: 17.0074%;" data-sheets-value="{"1":3,"3":608}">608</td> <td style="text-align: center; height: 23px; width: 18.1227%;" data-sheets-value="{"1":3,"3":146}">146</td> </tr> <tr style="height: 23px;"> <td style="height: 23px; text-align: center; width: 22.026%;" data-sheets-value="{"1":2,"2":"PBT"}">PBT</td> <td style="height: 23px; text-align: center; width: 21.1896%;" data-sheets-value="{"1":3,"3":591}">591</td> <td style="height: 23px; text-align: center; width: 17.0074%;" data-sheets-value="{"1":3,"3":575}">575</td> <td style="height: 23px; text-align: center; width: 18.1227%;" data-sheets-value="{"1":3,"3":111}">111</td> </tr> <tr style="height: 23px;"> <td style="height: 23px; text-align: center; width: 22.026%;" data-sheets-value="{"1":2,"2":"TAX"}">TAX</td> <td style="height: 23px; text-align: center; width: 21.1896%;" data-sheets-value="{"1":3,"3":150}">150</td> <td style="height: 23px; text-align: center; width: 17.0074%;" data-sheets-value="{"1":3,"3":148}">148</td> <td style="height: 23px; text-align: center; width: 18.1227%;" data-sheets-value="{"1":3,"3":27}">27</td> </tr> <tr> <td style="text-align: center; width: 22.026%;">PAT</td> <td style="text-align: center; width: 21.1896%;">447</td> <td style="text-align: center; width: 17.0074%;">440</td> <td style="text-align: center; width: 18.1227%;">70</td> </tr> </tbody> </table> <br /><a href="https://unlistedzone.com/shares/buy-sell-hdb-financial-services-unlisted-shares-hdb-finance-share-price/">https://unlistedzone.com/shares/buy-sell-hdb-financial-services-unlisted-shares-hdb-finance-share-price/</a></div> <div class="table-overflow-init"> </div>
<p>Indian Government has setup an ambitious target of reaching $20 Trillion economy in 2040 from the current level of $2.5 trillion, this is a steep target (12.25% CAGR Growth in GDP). Now, to achieve that, the most important sector will be the infrastructure. That is why Government has launched PM Gati Shakti Portal last year in Oct-21, so that the infrastructure projects can be launched and finished fast. <br /><br /><strong>Q1) What is PM Gati Shakti Portal?</strong> <br /><br /><strong>Ans:</strong> Prime Minister launched PM Gati Shakti - National Master Plan for Multi-modal Connectivity, essentially a digital platform to bring 16 Ministries including Railways and Roadways together for integrated planning and coordinated implementation of infrastructure connectivity projects. The multi-modal connectivity will provide integrated and seamless connectivity for movement of people, goods and services from one mode of transport to another. It will facilitate the last mile connectivity of infrastructure and also reduce travel time for people. The portal will include all the existing and planned initiatives of various Ministries and Departments with one centralised portal. Each and every Department will now have visibility of each other's activities providing critical data while planning & execution of projects in a comprehensive manner. <br /><br /><strong>Q2) What is India’s target of Green Energy by 2030?</strong> <br /><br /><strong>Ans: </strong>Currently, in India we have a total power generation capacity close to 350 GW. And, major chunk that is almost 70% is being produced from Coal and rest from green sources like Solar, Hydro and Nuclear. Government is targeting to achieve 500 GW by 2030 from renewable sources which is currently close to 100 GW. So, Government is targeting 5x growth in renewable energy in next 8 years. <br /><br /><strong>Q3) How to achieve the 500 GW renewable Energy Target and role of Sterlite Power?</strong> <br /><br /><strong>Ans: </strong>Now to achieve this ambitious target of 500 GW of Energy by 2030, we need combination of both i.e. Generators (that will produce electricity) and transmission lines (which transfers electricity). The transmission lines will be helpful in transferring electricity from a Zone where abundance of renewable energy available to a Zone which has abundance of consumption. So, transmission lines will act as a bridge between demand and source. <br /><br /><strong>Q4) How this Gati Shakti Portal will help transmission companies like Sterlite Power?</strong> <br /><br /><strong>Ans: </strong>As per MD of Sterlite Power Mr. Pratik Aggarwal, 2/3 time of transmission projects are wasted in route planning and sourcing various permits and approvals from government. This new portal will help companies like Sterlite Power to digitally identifies the most optimal route to get accurate location of railways, highways etc and also they will get fast approval for ROW (Right of Way) permission. This will not only save time but also costs as they will able to find right routes at first instance. The biggest USP of this portal is “Single Window Clearance”. <br /><br /><strong>Q5) Has Power Ministry identified any transmission projects under this portal?</strong> <br /><br /><strong>Ans: </strong>The power ministry has identified 9 transmission lines projects in rich renewable energy states like Rajasthan, Gujarat, Madhya-Pradesh, Maharashtra, Tamilnadu and Karnataka. We hope that this initiative of Government of India will help achieve their target of 500 GW of renewable energy by 2030. If you think Sterlite Power will be a big beneficiary of this project and wanted to invest in the unlisted shares of Sterlite Power then check the below link. https://unlistedzone.com/shares/sterlite-power-transmission-limited-share-price-buy-sell-unlisted-shares-of-sterlite-power-transmission/</p>
<strong>Fincare Small Finance Bank which has 80% loan books in Micro Finance has come up with its annual results. Let us look at the results at a glance.</strong> <strong>1.</strong> Revenue in Fy22 has increased to 1674 Crores from 1376 Crores last year. Revenue is mainly contributed by Interest Income and Investment income. <strong>2.</strong> Total expenditure has increased from 1000 Crores in Fy21 to 1216 Crores in Fy22. <strong>3.</strong> Operating Profit has increased from 363 Crores to 431 Crores in Fy22. <strong>4.</strong> Loan Book of Fincare Small Finance Bank has increased from 5300 Crores to 7036 Crores. Until this stage, the Fincare Small Finance Bank has shown decent growth. However, if you see the Net-Profit, it has come down heavily from 146 Crores in Fy21 to just 5 Crores in Fy22. Almost 100% profit is decline. The main reason for the profit to decline is due to very high provisioning. In Fy21, the total provision for bad loans was just 216 Crores but that has increased to massive 425 Crores in Fy22. <strong>5.</strong> The Gross NPA has increased from 6.42% in Fy21 to 7.79% in Fy22. <strong>6.</strong> ROA (Return on Assets) has decreased from 1.44% to 0.09%. <strong>7.</strong> D/E has also increased from 1.04 to 1.52. <strong>8.</strong> Capital Adequacy Ratio has also reduced from 29.56% to 22.32% in Fy22. <strong>ESOPs Issued to Management</strong> During the quarter and year ended 31 March, 2022, the fincare Bank has received approval from RBI to grant stock options of 2,65,748 shares under Employee Stock Option Scheme to MD & CEO for FY 2022 (Pertains to FY 21 – proposal for FY 22 is yet to be submitted to the RBI). <strong>Valuations of Fincare Bank Unlisted Share</strong> Total Net-Worth as on 31.03.2022 is 1107 Crores. Total Shares Outstanding = 22 Crores Book Value = 50 CMP = 150 P/B = 3x <strong>Conclusion:</strong> Though Fincare Small Finance Bank has shown decent growth in loan book in Fy22 but the profitability was marred by increase in provisioning due to large bad loans. It means bank has still not able to come out from the shocks which Covid-19 has given to the banking and NBFC sectors in India. <a href="https://unlistedzone.com/storage/knowledge-logo/FSFBL-Regulation-march31.pdf">Results Link</a> Want to invest in Fincare Small Finance Bank? <a href="https://unlistedzone.com/shares/buy-sell-latest-price-fincare-small-finance-bank-unlisted-shares/">Click here</a>
<strong>Let us understand the deal with below-mentioned FAQs.</strong> <strong>Ques 1. What will happen to the shareholders of Aricent Technologies(Holding) after the merger?</strong> <strong>Answer:</strong> The merger of Aricent Technologies in Capgemini is a share swap deal. The swap ratio is mentioned below. “As per the valuation report dated 10 January 2022 obtained from M/s. SSPA & Co., Chartered Accountants, the share exchange ratio is arrived as of 1:17 (i.e., 1 equity share of Rs. 10 each of the Transferee Company for every 17 equity shares of Rs. 10 each of the Transferor Company)”. In layman terms, if you are holding 17 shares of Aricent Technologies, then you will get 1 share of Capgemini Tech. Services in your demat account. <strong>Ques 2. What is the Capgemini Tech Services India and Aricent Tech. Valuation as per above report?</strong> <strong>Answer:</strong> As per valuation report, the value of Capgemini Tech Services per share is Rs. 6509.62 and Aricent Technology Services India is Rs. 378.95 per share. So, 6509.62/378.95 = ~17 <strong>Ques 3. What is the Mcap of Capgemini Tech Services Mcap after the merger?</strong> <strong>Answer: </strong>Capgemini Tech Services = 59,13,95,00 After the merger, Capgemini Tech Services will issue new shares i.e. ~135054 Shares to public shareholders only. So, after merger, Total Outstanding Shares would be ~59274554. Valuation Price = 6509.62 Mcap = ~38000 Crores. <strong>Ques 4. What is Capgemini’s Current Unlisted Market price?</strong> <strong>Answer:</strong> Currently, in the unlisted market it is available at Rs.12000 per share. And, the Standalone Profit of Capgemini is 1800 Crores. EPS (FY22) would be 316 per share. So, P/E is 37x. The P/E is very high. If you see Indian peers like Infosys, Wipro, TCS etc they are currently available at 19x-30x P/E. The fair Value of Capgemini Unlisted Share Price would be somewhere around Rs. 7500-8000. <strong>Ques 5. Whether this merger is final?</strong> <strong>Answer: </strong>Yes, it is final. Though for the formalities they have given a chance to any equity shareholder who is desirous to express his/her views or ask questions during the Meeting, may register themselves by logging on to https://emeetings.kfintech.com and click on the ‘Speaker Registration’. Speaker Registration will be open from 26 July 2022 to 28 July 2022. Please note the shareholders who will have shares as on 23rd July 2022 will be applicable to cast their votes or ask question. But as majority shareholder is Capgemini Tech with 98.25% shareholding in Aricent Tech consider this merger as final. <strong>Ques 6. Why this merger is happening?</strong> <strong>Answer: </strong> <strong>a. </strong> The amalgamation is expected to enable pooling of resources of the Transferor Company and the Transferee Company to their common advantage, resulting in more productive utilization of the said 35 resources and cost and operational efficiencies which would be beneficial for all stakeholders. <strong>b.</strong> The amalgamation is expected to bring greater management focus, integration, enhanced greater financial strength, and economies of scale. <strong>c.</strong> The amalgamation is expected to reduce costs, administrative and procedural work and legal compliances, and generally improve efficiency in the corporate decision making of the merged entity. <strong>Ques 7. What will happen to the Aricent Tech Unlisted Shares Shareholders if they are not holding shares in the multiple of 17?</strong> <strong>Answer:</strong> Suppose you are an Aricent Tech Shareholder and holding 100 shares of it. So, 100/17 = 5.88 In this case, you will get 5 shares of Capgemini Tech Shares. For the 0.88 fraction, you will get cash after deducting the TDS. <strong>Ques 8. Who will get the Capgemini Tech Shares after merger if shareholder of Aricent Tech is no more?</strong> <strong>Answer: </strong>The concerned heirs, executors, administrators or successors shall be obliged to produce evidence of title satisfactory to the Board of Directors or its duly constituted committee of Capgemini Tech. <strong>Ques 9. What is the business of Capgemini Tech is all about?</strong> <strong>Answer:</strong> <strong>a)</strong> CTSIL is primarily engaged in providing Information Technology (‘IT’) and IT - enabled operations offshore outsourcing solutions and services to large and medium-sized organizations using an offshore/onsite model. <strong>b)</strong> CTSIL has its subsidiaries in India, Singapore, United States and United Kingdom. <strong>c)</strong> IT services and IT-enabled operations offshore outsourcing solutions are delivered using the offshore centres located in Bangalore, Gurgaon, Bhubaneswar, Hyderabad, Chennai, Noida, Mumbai, Pune, Kolkata, Trichy, Salem and Gandhinagar in India. <strong>Ques 10. What is the business of Aricent Tech is all about?</strong> <strong>Answer: </strong>ATHL, provides software development and support services to Altran Group companies, for use in the telecommunications industry. <strong>b)</strong> The software development services comprise software coding, documentation, testing, and maintenance activities which is undertaken by ATHL under the instructions/ guidance of Associated Enterprises (‘AEs’). <a href="https://unlistedzone.com/storage/knowledge-logo/Notice-to-Equity-Shareholders-of-Capgemini.pdf">Notice to Equity Holders</a> Want to Buy Capgemini Technology Service India Limited Unlisted Shares? <a href="https://unlistedzone.com/shares/capgemini-technology-services-india-limited-unlisted-shares/">Click Here</a>
<strong>1.</strong> Dalmia Bharat Refractories Ltd, part of the Dalmia Bharat Group, plans to tap into ex- port markets particularly Europe, West Asia, Africa and Asia apart from consolidating presence in India. <strong>2.</strong> Dalmia Bharat Refractories Ltd was formed following the merger of three different refractory units of the Dalmia Bharat Group. The merger was completed in March 2022. The company aims to be listed on the BSE by end-FY23 (one of the merged entity is listed on the Calcutta Stock Exchange and Metropolitan Exchange). <strong>3.</strong> Dalmia Bharat Refractories Ltd, the company is eyeing a turnover of 1,500 crore this fiscal, a 20 per cent rise year-on-year. In both the domestic and inter national markets, refractory growth is being driven by the steel and cement sectors, and also a "China plus one strategy" that companies are taking up to de-risk supply chains post Covid-led disruptions. <strong>4.</strong> We have started some trials in Germany before we turn regular suppliers and tap deeper into the export market. We are already present in added advantage". Germany, Belgium, Italy and France in Europe for steel re- fractories; in Spain, Canada, West Asia, Nigeria, Kenya and Morocco for cement refractory. We are looking to gain a greater share of the customers' wallet in these markets and in India. <strong>5.</strong> At least one of the two acquisitions we are looking at should materialise by the end of this calendar year. We can take external funding, if required.Dalmia Bharat Refractoies will also look at a capex of 300 crore over the next three-four years as it looks at a capacity ramp-up and "investment towards R&D" across units. Around 80-100 crore has been spent between FY19 and FY21.6. In unlisted market, shares of Dalmia Refractory were previously available but after the merger in March-2022, the name of Dalmia Refractory has been changed to Dalmia Bharat Refractory. So, all the shareholders who were previously holding Dalmia Refractory are now having Dalmia Bharat Refractory shares in their demat account. But after the merger, the company has locked the shares of Dalmia Bharat Refractory. So, they can't be transferred. <strong>6.</strong> In unlisted market, shares of Dalmia Refractory were previously available but after the merger in March-2022, the name of Dalmia Refractory has been changed to Dalmia Bharat Refractory. So, all the shareholders who were previously holding Dalmia Refractory are now having Dalmia Bharat Refractory shares in their demat account. But after the merger, the company has locked the shares of Dalmia Bharat Refractory. So, they can't be transferred. Check <a href="https://unlistedzone.com/shares/dalmia-bharat-refractory-unlisted-shares-price/">Dalmia Bharat Refractory Share Price</a>
Indicative prices, company research and your enquiries — in your pocket. Get price notes on the names you follow and reach our team from anywhere.
