Analysis, guides and explainers on India's unlisted market — from IPO pipelines to ESOP liquidity.
Mohindra Fasteners Limited (MFL) is coming up with a rights issue aggregative to Rs 4.82 crore. The board of directors of the company has approved a rights issue for the shareholders. The board of directors met on December 31, 2021 to consider the proposal, which was approved by the panel, suggesting the latest regulatory filing from the company. The New Delhi based company has fixed the size of rights issue to 5,35,680 equity shares at a price of Rs 90 apiece (including a premium of Rs 80 per share) aggregating to Rs 4,82,11,200. The company has fixed the right entitlement ratio at 1:10, that means that eligible shareholders will be entitled for a single share for every 10 existing shares held by them as on the record date. The record date for determining the eligible shareholders for the rights entitlement for the issue is fixed as Thursday, January 06, 2022. The rights issue of Mohindra Fasteners Limited will open on January 24, 2022 (Monday) and the last date for on-market renunciation is fixed on February 7, 2022 (Monday). The issue closes on February 11 (Friday). Incorporated in 1995, MFL is a manufacturer of High Tensile Fasteners which are used in the automotive and engineering sector. Fasteners are the components that join one thing to another. Over the years, it has successfully emerged as a name to reckon with in the Indian fastener industry. It is listed on Metropolitan Stock Exchange of India (MSEI). The company offers a wide range of cold and hot forged fasteners and precision machined components for automotive and industrial applications, employing more than 400 headcounts. Mohindra Fasteners derives 40% of revenue from the domestic market, whereas North America, UK and Europe contribute the remaining 60% of the revenue. MFL has three manufacturing plants on Delhi-Rohtak Road, Haryana. The company has a strong client base including Hero Motocorp, Maruti Suzuki, Hyundai India and Tata Motors. In the financial year ended on March 31, 2021, the company reported a net profit of Rs 10.38 crore with a revenue of Rs 108 crore in the fiscal. Earning per share (EPS) of the company stood at Rs 19 per share during the financial year.
Continuing its aggressive shopping spree, Reliance Retail has picked up a huge stake in the Bengaluru based Dunzo, quick commerce startup, for a whopping $200 million. The retail arm of Mukesh Ambani led Reliance Industries has been busy in adding items to shopping cart lately, as the company invested $240 million in the latest round of funding from its kitty. According to the official statement of the company, Reliance Retail has picked a 25.8 percent stake in Dunzo. Existing investors of the startup including Lightbox, Lightrock, 3L Capital and Alteria Capital also participated in this round. India's largest conglomerate access to Dunzo establishes the fact that the domestic behemoth has been bullish on the rapid delivery, which is the latest and hottest theme attracting the bevy of the investors. Reliance Retail said that the capital will be used for the growth and expansion of Dunzo to make it the largest quick commerce player in the nation, enabling instant delivery of essentials from a network of micro warehouses. The company is also eyeing to expand its business to business (B2B) vertical to enable logistics services for local merchants in the Indian cities. The deal gives Dunzo ammunition to compete against Blinkit (erstwhile known as Grofers), another newbie upstart Zepto, Swiggy-owned Instamart, and BigBasket, among others to deliver groceries and essential items to urban households quickly. This is Reliance’s second major entry of sorts into the grocery delivery space, besides its own JioMart service. It also acquired Milkbasket last year, which delivers milk and daily staples to households in Delhi, Bengaluru, and other cities. According to earlier reports, Dunzo held conversations with Zomato, Swiggy and Tata Group for investment, but somehow, the deal could not be sealed.
Allied Blenders & Distillers Private Limited, a homegrown brewery player, is eying to raise primary funds as much as $300 million (about Rs 2,260 crore) via initial public offering (IPO). According to an Economic Times report, the company may launch its initial stake sale in the next year valuing itself at $2.5 billion (Rs 18,850 crore). The company, which is known for manufacturing 'Officer's Choice' whiskey, is likely to file its draft red herring prospectus (DRHP) in the first quarter of next calendar, the report said citing sources. According to the sources, the company has not finalized anything over the timing and valuations, and has kept the doors of discarding the IPO route. The Mumbai based distiller officially has not commented anything so far on the media reports. However, the company has joined the pipeline of domestic player, which are in slew of considering the IPOs. The Government of India backed Life Insurance Corporation of India and Flipkart Online Services, the Indian e-commerce firm controlled by Walmart, are among key players to make debut on the bourses in the next year. Allied Blenders sells various kinds of alcohol based drinks including whiskey, rum, brandy and vodka in more than 29 countries, the company website said. According to the company data, it has as many as nine bottling units, one distilling facility and over 20 outsourced manufacturing sites. Alcoholic beverage consumption in India is on the rebound as pandemic-linked curbs are eased. Consumption will expand at about 1.5 times the rate of economic growth, according to S Group AG earlier this month.
NCL-Buildtek has informed to the investors that the Board of Directors ("Board") of the Company had, in its meeting held on 29<sup>th</sup> November 2021, declared a final dividend of Re. 1 per equity share having nominal value of Rs. 10/- each for the FY ending on 31<sup>st</sup> March 2021. The dividend will be paid subject to the approval of the Members in the 4<sup>th</sup> AGM to be held on 24<sup>th</sup> December, 2021.<!--more--> <strong>Who is eligible for Dividend?</strong> The dividend will be paid to the members holding equity shares in electronic form as at the close of business hours on Thursday, the 16<sup>th</sup> December, 2021 on the basis of details of beneficial ownership furnished by the Depositories and to the Members holding shares in physical form whose names appear in the Register of Members as at the close of business hours on Thursday, the 16<sup>th</sup> December, 2021 after giving effect to valid requests received for transmission/ transposition of shares on or before Thursday, the 16<sup>th</sup> December, 2021. <strong>Dividend Yield of NCl-Buidtek?</strong> Dividend Yield = Total Dividend Per Share/CMP of NCL-Buildtek = 1/250 = 0.4%.
<div class="gmail_default">One of India's most prestigious corporate houses, the Tata Group, is all set to take on Air India in January 2022 from the government of India, under its strategic disinvestment plans.</div> <div class="gmail_default">The Mumbai based conglomerate, with a valuation around $250 billion, will also be receiving a stake in Kerala's Cochin Airport as part of this deal. This will make Tata the only airline to have an operational stake in a major airport at home.</div> <div class="gmail_default"> </div> <div class="gmail_default">The aforesaid acquisition is likely to be windfall gain for the Tata Group, which will get its share in the pie of Cochin International Airport and its subsidiary companies.<br /><br /></div> <div class="gmail_default">Cochin International Airports is a southern strategic centre and the third largest airport in the country in terms of international passenger traffic as it is a connecting hub for India to middle east nations. Private carrier IndiGo, along with Air India and Air India Express, also uses Cochin to ferry rewarding ‘Malayali Gulf traffic’ to multiple places such as Jeddah, Dubai, Abu Dhabi, Riyadh, Sharjah, Doha, Kuwait, among other locations. <br /><br />Air India has 3.27% stake in Cochin International Airport. According to a report of Business Standard, this stake has not been transferred to Air India Asset Holding Limited (AIAHL) as part of the pre-sale restructuring plan. Under this plan, select assets and debts of the national carrier have been removed from the books of AIAHL.<br /><br />The stake in Cochin Airport will be with the buyer, as per the disinvestment documents released by the Centre. The leading conglomerate producing coffee to cars, will get the stake in Cochin Airport as a buyer, according to disinvestment documents released by the Government of India. Air India had infused a sum of Rs 45 crore in this airport. However, it will not get Air India's stake in some other ventures including Hotel Corporation of India, Air India Engineering Services, Airline Allied Services and Air India Transport Services, which holds the cumulative worth of Rs 818 crore. <br /><br />Tata Sons, the holding company of Tata Group, bid for Air India for the sum of Rs 18,000 and the deal was signed with the share purchase agreement with the centre in October this year. Earlier, the government had accepted an offer to pay Rs 2,700 crore in cash and take over the airline's debt worth Rs 15,300 crore for the servicing. Barring the stake transfer to the Tata Group, State Bank of India (SBI), Bharat Petroleum (BPCL) and Housing and Urban Development Corporation (HUDCO) will collectively hold a 10 per cent stake in the Cochin International Airport. Other than these state run players, the private non promoting shareholders of the Cochin International Airport include Synthite Industries (6.53%), Bavaguthu Raghuram Shetty (1.99%), Khadeeja Zeenath (1.57%), Shabira Yusuffali (1.45%) and Amina Mohammed Ali (1.31%). <br /><br />In India, there is no precedent like Tata’s stake in Cochin Airport. More than 50 airlines in the world have a stake in airports and some even have outright ownership of airports, the report said citing data from the Center for Aviation. <br /><br />The financials of the company have deteriorated in the financial year 2020-21, thanks to the coronavirus pandemic, which has put halt on the travelling and international flights. In the financial year ended on March 31, 2021, Cochin International Airport reported a total income of Rs 296 crore with a net loss of Rs 92 and a negative EPS of -2.37 per share. In the FY 2019-20, the company had reported a net profit of Rs 237 crore, supported by a total income of Rs 810 crore. The EPS stood at Rs 6.19 per share during the period under review.</div>
<div class="gmail_default"><strong>Clear picture on NSE valuations awaited as SEBI likely clear merger with NCDEX</strong></div> <div class="gmail_default"><br />Capital markets regulator Securities and Exchange Board of India (SEBI) may approve the proposed merger of National Commodity and Derivatives Exchange Limited (NCDEX) with the National Stock Exchange (NSE) this week.<br /><br /></div> <div class="gmail_default">According to a report of Zee Business, “In-principal approval of merger of NCDEX-NSE may come at any point of time.” Both the exchanges have applied with the markets regulator for the merger. Earlier, NCDEX mulled the IPO plans, which were later shunned and NSE intended the proposed merger. Currently, NSE holds about 15 percent stake in the NCDEX. <br /><br />If the merger is approved by SEBI, the deal will be done on share swap ratio. Both the parties will have to move to National Company Law Tribunal (NCLT) for the merger after the approval from the SEBI. Life Insurance Corporation of India (LIC), National Bank for Agriculture and Rural Development (NABARD) and Indian Farmers Fertiliser Cooperative Limited (IFFCO) hold 11.1 percent stake each in NCDEX. Punjab National Bank (PNB), Canara Bank and Shree Renuka Sugars hold 5 percent stake each and CRISIL holds 3.7 percent stake in NCDEX. <br /><br />All the stakeholders will be allotted shares of NSE, once the share swap ratio is agreed. The merger will unlock the real valuations of National Stock Exchange, which is in the pipeline of its initial stake sale. <br /><br />The is likely to rotate the NSE valuations in the unlisted market, ahead of the much awaited mega IPO. Also, NSE, prior to its initial public offering, will strengthen its agri-commodity business, where it was lagging behind, to become a multi-dimensional trading platform. <br /><br />NSE is already the market leader in the equity segment and world's largest derivative exchange. NCDEX has the highest market share in the agri commodities and their merger can turn the tides for the agri-commodity business. <br /><br />After the proposed merger, NCDEX is likely to emerge as a strong player in the agri-commodity segment, where FPI will soon get the entry to trade. Mutual Funds are already a player in the segment, and banks too may get a chance to play the game. Following the footsteps of Multi Commodity Exchange (MCX), NCDEX was the second exchange which allowed the commodity derivative change platform in 2003. MCX started its operations a month earlier, compared to NCDEX. However, MCX planned to move out of the business and made the exit strategically as the agri-commodity business is highly sensitive. MCX focussed more on non-agri commodities, especially base metals and bullions including precious ones. <br /><br />NCDEX was highly focussed on agri-commodities and many of them directly affected the domestic household and inflation status in the nation. So, it was inclined to politically sensitive business as the government could directly impact and intervene in the business. <br /><br />Currently, majorly NCDEX volume is contributed by thin base commodities. Like Guar Seed or Guar Gum which produce only in three states Rajasthan, Haryana and Gujarat. Similarly with castor seed mainly in Gujarat, Rajasthan and Andhra Pradesh. Those commodities which have pan India production or consumption are either banned by the government or not traded on NCDEX. Recently, Sebi has banned future and option trading of Chana and Mustard after consultation with the government. Both commodities are volume generators for this exchange.</div> <div class="gmail_default"> </div> <div class="gmail_default">After the Forward Market Commission merger with Sebi most of the things were at par with the equity market. However, participation of domestic institutional investors is lacking on agri commodities. NSE-NCDEX merger talks were going on for more than two years. In between NCDEX tried to launch Initial Public Offer also which was scrapped as the coronavirus pandemic hit the markets badly.</div>
<p>Amidst the ongoing IPO season, Capital Small Finance Bank is also planning to raise funds via primary market route. The small lender has filed a draft herring prospectus (DRHP) with capital markets regulator SEBI to float an initial public offering (IPO). The IPO consists of a fresh equity share issue worth Rs 450 crore, along with an offer for sale (OFS) of up to 3.84 million equity shares by existing shareholders and promoters. Investors participating in OFS include PI Ventures (3.37 lakh equity shares), Amicus Capital Private Equity I LLP (6.04 lakh equity shares) among others. Proceeds from the issue will be used to augment tier-I capital base to meet the future capital requirements of the lender. As of June 2021, its tier-I capital base was Rs 446 crore. Its capital to risk was 21.12%. Capital Small Finance Bank mainly focuses on the needs of the middle income segment, providing its products and services in that area of operations. The lender is backed by a number of financial behemoths and institutional investors including SIDBI, ICICI Prudential and HDFC Life among others. According to the details given in DRHP, Capital Small Finance Bank is present in four states of north India including Punjab, Haryana, Delhi and Rajasthan, with lender having 159 branches and 161 ATMs. <img class="alignnone wp-image-21682" src="https://unlistedzone.com/storage/knowledge-logo/Screenshot-2021-09-21-at-12.40.06-PM.png" alt="" width="516" height="357" /> </p> <table style="width: 100%; height: 599px;"> <tbody> <tr style="height: 46px;"> <td style="text-align: center; height: 46px; width: 16.5869%;" width="228"><strong>Particulars (Fig. In Cr)</strong></td> <td style="text-align: center; height: 46px; width: 12.9187%;" width="110"><strong>2016</strong></td> <td style="text-align: center; height: 46px; width: 11.3238%;" width="103"><strong>2017</strong></td> <td style="text-align: center; height: 46px; width: 10.5263%;" width="114"><strong>2018</strong></td> <td style="text-align: center; height: 46px; width: 15.311%;" width="106"><strong>2019</strong></td> <td style="text-align: center; height: 46px; width: 10.5263%;" width="95"><strong>2020</strong></td> <td style="text-align: center; height: 46px; width: 10.5263%;" width="89"><strong>2021</strong></td> <td style="text-align: center; height: 46px; width: 10.5263%;" width="102"><strong>Jun-21</strong></td> </tr> <tr style="height: 70px;"> <td style="text-align: center; height: 70px; width: 16.5869%;">Revenue from Operation</td> <td style="text-align: center; height: 70px; width: 12.9187%;">0.14</td> <td style="text-align: center; height: 70px; width: 11.3238%;">33</td> <td style="text-align: center; height: 70px; width: 10.5263%;">111</td> <td style="text-align: center; height: 70px; width: 15.311%;">358</td> <td style="text-align: center; height: 70px; width: 10.5263%;">667</td> <td style="text-align: center; height: 70px; width: 10.5263%;">2335</td> <td style="text-align: center; height: 70px; width: 10.5263%;">1100</td> </tr> <tr style="height: 46px;"> <td style="text-align: center; height: 46px; width: 16.5869%;">Other Income</td> <td style="text-align: center; height: 46px; width: 12.9187%;">0.08</td> <td style="text-align: center; height: 46px; width: 11.3238%;">0.87</td> <td style="text-align: center; height: 46px; width: 10.5263%;">2.58</td> <td style="text-align: center; height: 46px; width: 15.311%;">5.62</td> <td style="text-align: center; height: 46px; width: 10.5263%;">70</td> <td style="text-align: center; height: 46px; width: 10.5263%;">25</td> <td style="text-align: center; height: 46px; width: 10.5263%;">100</td> </tr> <tr style="height: 46px;"> <td style="text-align: center; height: 46px; width: 16.5869%;">Total Revenue</td> <td style="text-align: center; height: 46px; width: 12.9187%;">0.22</td> <td style="text-align: center; height: 46px; width: 11.3238%;">34</td> <td style="text-align: center; height: 46px; width: 10.5263%;">114</td> <td style="text-align: center; height: 46px; width: 15.311%;">363</td> <td style="text-align: center; height: 46px; width: 10.5263%;">737</td> <td style="text-align: center; height: 46px; width: 10.5263%;">2360</td> <td style="text-align: center; height: 46px; width: 10.5263%;">1200</td> </tr> <tr style="height: 23px;"> <td style="text-align: center; height: 23px; width: 16.5869%;">Purchases</td> <td style="text-align: center; height: 23px; width: 12.9187%;">0.75</td> <td style="text-align: center; height: 23px; width: 11.3238%;">42</td> <td style="text-align: center; height: 23px; width: 10.5263%;">118</td> <td style="text-align: center; height: 23px; width: 15.311%;">377</td> <td style="text-align: center; height: 23px; width: 10.5263%;">700</td> <td style="text-align: center; height: 23px; width: 10.5263%;">2266</td> <td style="text-align: center; height: 23px; width: 10.5263%;">1234</td> </tr> <tr style="height: 46px;"> <td style="text-align: center; height: 46px; width: 16.5869%;">Change in Inventory</td> <td style="text-align: center; height: 46px; width: 12.9187%;">-0.59</td> <td style="text-align: center; height: 46px; width: 11.3238%;">-9.82</td> <td style="text-align: center; height: 46px; width: 10.5263%;">-11</td> <td style="text-align: center; height: 46px; width: 15.311%;">-42</td> <td style="text-align: center; height: 46px; width: 10.5263%;">-58</td> <td style="text-align: center; height: 46px; width: 10.5263%;">-114</td> <td style="text-align: center; height: 46px; width: 10.5263%;">-126</td> </tr> <tr style="height: 46px;"> <td style="text-align: center; height: 46px; width: 16.5869%;">Employee Benefit Exps</td> <td style="text-align: center; height: 46px; width: 12.9187%;">4</td> <td style="text-align: center; height: 46px; width: 11.3238%;">14</td> <td style="text-align: center; height: 46px; width: 10.5263%;">38</td> <td style="text-align: center; height: 46px; width: 15.311%;">80</td> <td style="text-align: center; height: 46px; width: 10.5263%;">137</td> <td style="text-align: center; height: 46px; width: 10.5263%;">270</td> <td style="text-align: center; height: 46px; width: 10.5263%;">165</td> </tr> <tr style="height: 23px;"> <td style="text-align: center; height: 23px; width: 16.5869%;">Other Exps</td> <td style="text-align: center; height: 23px; width: 12.9187%;">7</td> <td style="text-align: center; height: 23px; width: 11.3238%;">34</td> <td style="text-align: center; height: 23px; width: 10.5263%;">63</td> <td style="text-align: center; height: 23px; width: 15.311%;">185</td> <td style="text-align: center; height: 23px; width: 10.5263%;">275</td> <td style="text-align: center; height: 23px; width: 10.5263%;">481</td> <td style="text-align: center; height: 23px; width: 10.5263%;">215</td> </tr> <tr style="height: 23px;"> <td style="text-align: center; height: 23px; width: 16.5869%;">EBITDA</td> <td style="text-align: center; height: 23px; width: 12.9187%;">-11</td> <td style="text-align: center; height: 23px; width: 11.3238%;">-47</td> <td style="text-align: center; height: 23px; width: 10.5263%;">-97</td> <td style="text-align: center; height: 23px; width: 15.311%;">-243</td> <td style="text-align: center; height: 23px; width: 10.5263%;">-386</td> <td style="text-align: center; height: 23px; width: 10.5263%;">-569</td> <td style="text-align: center; height: 23px; width: 10.5263%;">-292</td> </tr> <tr style="height: 23px;"> <td style="text-align: center; height: 23px; width: 16.5869%;">OPM</td> <td style="text-align: center; height: 23px; width: 12.9187%;">-7319.05%</td> <td style="text-align: center; height: 23px; width: 11.3238%;">-141.73%</td> <td style="text-align: center; height: 23px; width: 10.5263%;">-87.65%</td> <td style="text-align: center; height: 23px; width: 15.311%;">-67.82%</td> <td style="text-align: center; height: 23px; width: 10.5263%;">-57.85%</td> <td style="text-align: center; height: 23px; width: 10.5263%;">-24.38%</td> <td style="text-align: center; height: 23px; width: 10.5263%;">-24.45%</td> </tr> <tr style="height: 23px;"> <td style="text-align: center; height: 23px; width: 16.5869%;">Finance Cost</td> <td style="text-align: center; height: 23px; width: 12.9187%;">0.07</td> <td style="text-align: center; height: 23px; width: 11.3238%;">0.18</td> <td style="text-align: center; height: 23px; width: 10.5263%;">2.86</td> <td style="text-align: center; height: 23px; width: 15.311%;">5.12</td> <td style="text-align: center; height: 23px; width: 10.5263%;">12</td> <td style="text-align: center; height: 23px; width: 10.5263%;">43</td> <td style="text-align: center; height: 23px; width: 10.5263%;">20</td> </tr> <tr style="height: 23px;"> <td style="text-align: center; height: 23px; width: 16.5869%;">Depreciation</td> <td style="text-align: center; height: 23px; width: 12.9187%;">0.23</td> <td style="text-align: center; height: 23px; width: 11.3238%;">1.26</td> <td style="text-align: center; height: 23px; width: 10.5263%;">3.74</td> <td style="text-align: center; height: 23px; width: 15.311%;">6.24</td> <td style="text-align: center; height: 23px; width: 10.5263%;">19</td> <td style="text-align: center; height: 23px; width: 10.5263%;">32</td> <td style="text-align: center; height: 23px; width: 10.5263%;">17</td> </tr> <tr style="height: 46px;"> <td style="text-align: center; height: 46px; width: 16.5869%;">Profit Before Tax</td> <td style="text-align: center; height: 46px; width: 12.9187%;">-11</td> <td style="text-align: center; height: 46px; width: 11.3238%;">-48</td> <td style="text-align: center; height: 46px; width: 10.5263%;">-101</td> <td style="text-align: center; height: 46px; width: 15.311%;">-248</td> <td style="text-align: center; height: 46px; width: 10.5263%;">-347</td> <td style="text-align: center; height: 46px; width: 10.5263%;">-620</td> <td style="text-align: center; height: 46px; width: 10.5263%;">-319</td> </tr> <tr style="height: 23px;"> <td style="text-align: center; height: 23px; width: 16.5869%;">Tax Exps</td> <td style="text-align: center; height: 23px; width: 12.9187%;">0.01</td> <td style="text-align: center; height: 23px; width: 11.3238%;">0.07</td> <td style="text-align: center; height: 23px; width: 10.5263%;">-2</td> <td style="text-align: center; height: 23px; width: 15.311%;">-5</td> <td style="text-align: center; height: 23px; width: 10.5263%;">-11</td> <td style="text-align: center; height: 23px; width: 10.5263%;">21</td> <td style="text-align: center; height: 23px; width: 10.5263%;">-6</td> </tr> <tr style="height: 46px;"> <td style="text-align: center; height: 46px; width: 16.5869%;">Profit After Tax</td> <td style="text-align: center; height: 46px; width: 12.9187%;">-11</td> <td style="text-align: center; height: 46px; width: 11.3238%;">-48</td> <td style="text-align: center; height: 46px; width: 10.5263%;">-100</td> <td style="text-align: center; height: 46px; width: 15.311%;">-243</td> <td style="text-align: center; height: 46px; width: 10.5263%;">-335</td> <td style="text-align: center; height: 46px; width: 10.5263%;">-641</td> <td style="text-align: center; height: 46px; width: 10.5263%;">-313</td> </tr> <tr style="height: 23px;"> <td style="text-align: center; height: 23px; width: 16.5869%;">NPM</td> <td style="text-align: center; height: 23px; width: 12.9187%;">-7415.27%</td> <td style="text-align: center; height: 23px; width: 11.3238%;">-143.67%</td> <td style="text-align: center; height: 23px; width: 10.5263%;">-90.19%</td> <td style="text-align: center; height: 23px; width: 15.311%;">-67.92%</td> <td style="text-align: center; height: 23px; width: 10.5263%;">-50.23%</td> <td style="text-align: center; height: 23px; width: 10.5263%;">-27.46%</td> <td style="text-align: center; height: 23px; width: 10.5263%;">-26.23%</td> </tr> <tr style="height: 23px;"> <td style="text-align: center; height: 23px; width: 16.5869%;">EPS (Basic)</td> <td style="text-align: center; height: 23px; width: 12.9187%;">-93</td> <td style="text-align: center; height: 23px; width: 11.3238%;">-415</td> <td style="text-align: center; height: 23px; width: 10.5263%;">-865</td> <td style="text-align: center; height: 23px; width: 15.311%;">-2090</td> <td style="text-align: center; height: 23px; width: 10.5263%;">-12</td> <td style="text-align: center; height: 23px; width: 10.5263%;">-2</td> <td style="text-align: center; height: 23px; width: 10.5263%;">-0.77</td> </tr> </tbody> </table> <div> </div>
<p>PharmEasy, a leading name in India's e-pharmacy sector, has recently made a significant move towards its growth trajectory by filing for an Initial Public Offering (IPO). API Holdings, PharmEasy's parent company, has submitted a Draft Red Herring Prospectus (DRHP) to SEBI, the capital markets regulator. This step marks a pivotal point in PharmEasy's journey, aligning with the trend of public issues by dynamic Indian startups.</p> <p>The PharmEasy IPO aims to mobilize substantial funds, targeting a figure of Rs 6,250 crore through the sale of fresh equity shares. This fundraising initiative is a testament to the company's ambition to strengthen its foothold in the pharmaceutical market. Additionally, PharmEasy is contemplating a pre-IPO private placement, potentially amounting to Rs 1,250 crore. If pursued, this will adjust the total size of the IPO, maintaining compliance with market regulations that mandate a minimum issue size constituting at least 10% of the post-issue paid-up equity share capital.</p> <p>The proceeds from the PharmEasy IPO are earmarked for specific strategic uses. A significant portion, amounting to Rs 1,929 crore, is allocated for the repayment or prepayment of outstanding debts. Furthermore, the company plans to invest Rs 1,259 crore in organic growth initiatives, while Rs 1,500 crore is set aside for inorganic growth and other strategic ventures, alongside general corporate purposes.</p> <p>PharmEasy has demonstrated remarkable financial growth, with its revenue from operations soaring to Rs 2,335 crore in FY21, a substantial leap from Rs 668 crore in the previous year. Despite these impressive revenues, the company reported a widening net loss, reaching Rs 645 crore in FY21 compared to Rs 335 crore in the previous fiscal year. The first quarter of the current fiscal year saw revenues of Rs 1,197 crore, accompanied by a net loss of Rs 314 crore.</p> <p>Significantly, API Holdings operates without an identifiable promoter, striving to establish itself as a professionally managed entity post-listing. The company emphasizes its commitment to investing in marketing, supply chain infrastructure, and technological capabilities to fuel further growth.</p> <p>For the PharmEasy IPO, esteemed financial institutions such as Kotak Mahindra Capital Company, Morgan Stanley India, BofA Securities India, Citigroup Global Markets India, and JM Financial have been appointed as Book Running Lead Managers (BRLMs). Link Intime India is designated as the registrar to the issue.</p> <p>The PharmEasy IPO places the company alongside other prominent Indian startups like Zomato, Paytm, Nykaa, and Policybazaar, all of which have embraced the public issue route this year, marking a new era in the Indian startup ecosystem.</p>
Chennai-based Five Star Business Finance (FSBFL) is planning to raise capital via an initial stake sale. The nonbanking finance company (NBFC) has filed its draft red herring prospectus (DRHP) with the capital markets regulator Sebi. The NBFC, backed by TPG Capital, Sequoia, Matrix Partners, Norwest Venture, KKR, and TVS Capital, is looking at a valuation of more than $ 3 billion. The company will raise up to Rs 2,751.95 crore via its primary stake sale. The issue will entirely be an offer-for-sale (OFS), where its promoters and existing shareholders will offload stakes. Promoters and shareholders participating in OFS include SCI Investments V, Matrix Partners India Investment Holdings, Matrix Partners India Investment II Extension, Norwest Ventures Partners X- Mauritius, TPG Asia VII SF PTE, Deendayalan Rangasamy, and Varalakshmi Deendayalan. In March 2021, Five Star Business raised around $234 million (Rs 1,700 crore) from its new and existing set of investors. The company has a strong presence in the Southern states of India, primarily in Tamil Nadu. It provides secured business loans of around Rs 2-10 lakhs against the security of self-occupied residential property to micro-entrepreneurs. The company has had a strong run from 103 branches in 2017 to nearly 260 plus branches as of date across 120 districts in 8 states. Its consolidated portfolio expanded at a CAGR of 81 percent during FY16-FY20, while it grew at a moderate pace of 14 percent in FY2021 due to the impact of the Covid-19 pandemic. The AUM stood at Rs 4,445 crore as of March 31, 2021, compared to Rs 3,892 crore as of March 31, 2020. The NBFC posted a 34 percent growth in revenues at Rs 1051 crore in FY21, while its net profit jumped 37 percent to Rs 359 crore. 50 percent of the issue will be reserved for qualified institutional buyers, whereas non-institutional investors will have 10 percent shares allocated to them. The remaining 35 percent portion will be allocated to retail bidders. The company has appointed ICICI Securities, Edelweiss Financial Services, Kotak Mahindra Capital Company, and Nomura Financial Advisory and Securities (India) as the book running lead managers to the issue, whereas KFin Technologies is the registrar to the issue.
<div class="gmail_default"> Amidst the ongoing IPO season, Capital Small Finance Bank is also planning to raise funds via primary market route. The small lender has filed a draft herring prospectus (DRHP) with capital markets regulator SEBI to float an initial public offering (IPO). The IPO consists of a fresh equity share issue worth Rs 450 crore, along with an offer for sale (OFS) of up to 3.84 million equity shares by existing shareholders and promoters. Investors participating in OFS include PI Ventures (3.37 lakh equity shares), Amicus Capital Private Equity I LLP (6.04 lakh equity shares) among others. Proceeds from the issue will be used to augment tier-I capital base to meet the future capital requirements of the lender. As of June 2021, its tier-I capital base was Rs 446 crore. Its capital to risk was 21.12%. Capital Small Finance Bank mainly focuses on the needs of the middle income segment, providing its products and services in that area of operations. The lender is backed by a number of financial behemoths and institutional investors including SIDBI, ICICI Prudential and HDFC Life among others. According to the details given in DRHP, Capital Small Finance Bank is present in four states of north India including Punjab, Haryana, Delhi and Rajasthan, with lender having 159 branches and 161 ATMs. As of June 2021, the lender had deposits worth more than Rs 5,483 crore, which were Rs 4,687 crore a year ago. Advances stood at Rs 3,642 crore compared to Rs 3,145 crore last year. For the June 2021 quarter, net interest income (NII) rose 20% from a year ago to Rs 570.49 crore and the net profit stood at Rs 12.18 crore, which was Rs 6.8 crore a year ago The lender saw an increase in net non-performing assets 1.44% from 1.27% previous year. Provisions and contingencies rose to Rs 10.40 crore against Rs 8.78 crore. The lender has appointed Edelweiss Financial Services, Axis Capital and SBI Capital Markets as the book running lead managers to the issue. </div> <div> <div dir="ltr" data-smartmail="gmail_signature"> <div dir="ltr"></div> </div> </div>
<p>The latest auction of the two teams for the upcoming edition of the Indian Premier League (IPL) has unlocked the valuation of Chennai Super Kings (CSK) in the unlisted market. The recently crowned champion has been roaring high in the unlisted space, commanding a valuation of nearly Rs 7,000 crore following the sale of two new teams. <br /><br />The RP-Sanjiv Goenka Group and equity investment firm CVC Capital Partners have bagged the two new Indian Premier League (IPL) franchises, the IPL Governing Council announced earlier this week. According to the official statement from the Board of Control for Cricket in India (BCCI), RPSG Ventures made the highest bid of Rs 7,090 crore for Lucknow, Irelia Company (CVC Capital Partners) bid Rs 5,625 crore for the Ahmedabad team. <br /><br />Sanjiv Goenka-owned RPSG group had previously owned Rising Pune Supergiants, a defunct IPL team, which was formed for two years along with Gujarat Lions when Chennai Super Kings and Rajasthan Royals were suspended. <br /><br />Goenka also owns a franchise, named ATK Mohun Bagan, based out of Kolkata in the domestic soccer tournament Indian Super League (ISL). <br /><br />BCCI was expecting to reap about Rs 10,000 crore, but surprisingly the richest cricket board in the world has a windfall of Rs 12,715 crore. Chennai Super Kings, one of the most followed IPL franchises, is likely to become the first-ever Indian sports unicorn but the current valuations fall marginally short of achieving this feat. It has raced past its parent India Cements in terms of market capitalization. <br /><br />MS Dhoni-led franchise reported a profit after tax (PAT) of Rs 40.26 crore in 2020-21, which was 20 percent less than the PAT of Rs 50.33 crore clocked in the previous financial year. Investors should now focus on the upcoming broadcasting and online streaming rights for the cycle of 2023-2027. These rights may fetch Rs 36,000 crore boosting the top line of the company. <br /><br />Value investor Radhakishan Damani and IPO-bound Life Insurance Corporation of India (LIC) are the key shareholders of CSK. LIC holds a 6.04 percent stake in the company, whereas Damani's stake is not disclosed in its annual report. <br /><br />Barring the two bid winners, more than 20 interested parties had picked up tender documents, and nine had submitted their final bids. The list included the Adani Group, the Glazer family that owns Manchester United, Allcargo Logistics, and Ahmedabad-headquartered Torrent Group. The other bids were below Rs 5,000 crore.</p>
<p>RP-Sanjiv Goenka Group (RPSG) wins the bid to buy the Lucknow team in the Indian Premier League. Moneycontrol’s Nisha Poddar caught up with owner Sanjiv Goenka on the win and return proposition from the investment of Rs 7000 crore. <br /><br /><strong>Q: How do you feel about this particular acquisition and what is the vision with which you have bought into the IPL team?</strong> <br /><br />A: So the first reaction is, it feels good to be back in IPL. Yeah, this is just the beginning. Now it's about getting to build a team and performing well on the ground.</p> <!--more--> <p><strong>Q: What’s the payout mechanism for the Rs 7000 crore buy?</strong> <br /><br />A: Rs 7,000 crore is the enterprise value to be paid over in 10 years, the first-year payout is Rs 700 crore. In the same period, I expect to get over Rs 3,500 crore from the Cricket Board. <br /><br /><strong>Q: Is over 3500 crore an assumption, or is there any agreement on the payout to RPSG as a team owner?</strong> <br /><br /><strong>A: </strong>No, this estimate is based on their broadcast rights, which they have said will be between Rs 32,000 crore and Rs 35,000 crore for five years and thereafter higher. So, it can be even Rs 4,000 crore as per our research but to be on the cautious side we estimate Rs 3,500 crore in over 10 years. So the net present value of that is Rs 2,600 crore. <br /><br /><strong>Q: While your payment every year is fixed at Rs 700 crore, is the amount you receive will be equal or will vary year on year?</strong> <br /><br />A: No, in this first year what we receive of the Rs 3,500 crore will be less than the next five years, say about Rs 90 crore is what we expect over the next five years; thereafter, it should be between Rs 500 crore and Rs 550 crore every year. <br /><br /><strong>Q: Which entity of the group will own the IPL team?</strong> <br /><br />A: It will be owned by closely held group entities. Companies such as CECS, FirstSource, Saregama, and Philip Carbon Black will have no involvement in this business. This is largely going to be held personally and partially by RPSG Ventures. <br /><br /><strong>Q: What are the return propositions from this investment?</strong> <br /><br />A: In five years I expect it to be worth Rs 10,000 crore. The Rs 7000 crore valuation is to go up to Rs 10,000 crore. So, if I'm investing Rs 2,500 crore and in five years it becomes worth Rs 10,000 crore, that's a pretty good investment. <br /><br /><strong>Q: What is the value unlocking proposition expected?</strong> <br /><br />A: If we did a public issue or divested a minority stake at a higher valuation, we will make good returns on this investment in future. <br /><br /><strong>Q: Besides the acquisition cost, what are the other expenses and investments required in the IPL team?</strong> <br /><br />A: There are other expenses and also other revenue streams. We'll have to see how it works out. On sponsorship numbers, we won't be anywhere near the other larger franchise in the country. There is around Rs 90 crore reserve capital for the player acquisition cost. In other revenue streams, there is advertising, stadium revenues, sponsorships and jersey receipts. <br /><br /><strong>Note:</strong> The article is copied without any editing of the content from Money-Control.</p>
Indicative prices, company research and your enquiries — in your pocket. Get price notes on the names you follow and reach our team from anywhere.
