Analysis, guides and explainers on India's unlisted market — from IPO pipelines to ESOP liquidity.
<div class="gmail_default"> Mukesh Ambani led Reliance Retail is inching towards signing in as the new India franchisee US based fashion brand Gap Inc. According to media reports, Reliance Retail has been in talks with Gap for months now. After being the front runner for months, Reliance Industries' retail arm is likely to clinch the deal ahead of Flipkart backed Myntra, which was also in talks with the fashion brand. </div> <div class="gmail_default"> According to the sources familiar to the matter, Reliance Retail is likely to get a huge concession of manufacturing 100% of all Gap products to be sold in India. Earlier, Arvind Fashion had the franchisee, which could only produce 70% of the products locally. Gap has been scouting for an India partner for more than a year, after it terminated its deal with Arvind Fashion in the previous year. However, Gap Inc refused to comment anything on the matter, whereas Reliance Group did not comment anything. Despite constant efforts like closing and pruning store sizes and increasing local sourcing for the brands in India, Arvind Fashions failed to turn Gap's India business profitable. Recently, the Indian apparel retail business has intensified further in India, ever since the entry of global players like Zara, H&M and Japan's Uniqlo, disrupting the markets. Gap is a household brand in the US but in India it is still a premium brand, which is out of the pockets for many potential buyers. Wrenching Covid-19 pandemic wrecked havoc on the company's business as its store's were shut for a large part of year in the wake of spreading virus, which lead to nationwide lockdown. Gap contributed less than 5% to the Arvind's revenue. Reliance Retail-owned online fashion platform Ajio already sells almost the entire collection for men, women and kids from Gap and is one of the largest stockists on Ajio. </div> <!--more--> <!--more--> <!--more--> <div> <div dir="ltr" data-smartmail="gmail_signature"> <div dir="ltr"></div> </div> </div>
<p>HDFC Bank, the listed entity has yesterday announced the results and same is available at BSE website. We all know, HDFC Securities and HDB Financials are the subsidiary of HDFC Bank, so along with their results, they have to show the results of their subsidiaries as well. And, both the subsidiaries are well known unlisted shares. Let us see how both the subsidiaries have performed and current valuation.</p> <!--more--> <p><strong>HDB Financials Q2FY22 Results Update:</strong> <br /><br /><strong>1.</strong> Total Loan book stands at 60,000 Crores as on 30.09.2021 which was ~59774 Crores as on 30.09.2020. And, liquidity coverage ratio is at 157%, which is quite healthy. <br /><br /><strong>2.</strong> Revenue for the Q2FY22 has grown to 1900 Crores from 1700 Crores in Q2FTY21. A jump of 12% in revenue. <br /><br /><strong>3.</strong> Operational Profit before Provisioning and Contingency was 885 Crores in Q2FY22 as compared to 816 Crores in Q2FY21. <br /><br /><strong>4. </strong> Provisioning and Contingency has reduced to 629 Crores in Q2FY22 as compared to 929 Crores in Q2FY21. <br /><br /><strong>5.</strong> This quarter they have generated a PAT of 191 Crores against a loss of 85 Crores last year in the same quarter. <br /><br /><strong>6</strong>. This quarter the Gross Stage 3 NPA stands at 6.1% as compared to 8.1% last year in the same period. <br /><br /><strong>HDFC Securities Q2FY22 Results Update:</strong> <br /><br /><strong>1.</strong> HDFC Securities has clocked revenue of 433 Crores in Q2FY22 as compared to 344 Crores in Q2FY21. 42% jump in revenue. <br /><br /><strong>2.</strong> It has generated a PAT of 240 Crores this quarter as compared to 165 Crores in the same quarter last year. <br /><br /><strong>3.</strong> EPS stands at ~150 per share for second quarter. So, if we annualise the PAT and EPS of first two quarter, we may see PAT of 1000 Crores and EPS of ~600 for FY21-22. Current market price of HDFC Securities unlisted share is ~18000 per share. Then ~P/E would be 30x. Its nearest peer in the listed market is ICICI Securities which is currently trading at P/E of 24x. So, HDFC Securities looks tad expensive now. <br /><br /><strong>Result Analysis in Video</strong> <br /><br /><iframe title="YouTube video player" src="https://www.youtube.com/embed/79zB-gz-wBM" width="400" height="250" frameborder="0" allowfullscreen="allowfullscreen"><span data-mce-type="bookmark" style="display: inline-block; width: 0px; overflow: hidden; line-height: 0;" class="mce_SELRES_start"></span></iframe></p>
Buying unlisted shares is a newfag among Indian equity investors. Thanks to the ease of accessibility and growing awareness, the deep penetration of the internet have led to a sharp rise in the number of investors in the unlisted space. However, there is a streamlined process of buying unlisted shares or the Pre-IPO equity. Though, you would require some bare minimum and basic requirements to be met for buying their shares. Investors can buy shares of a public company, which is not listed on the bourses, from the pre-IPO market where private players or employees of the company offload their stake at better prices. The equity shares of the company get listed on the BSE and/or NSE, where they are freely tradable across retail and institutional investors. If you invest in the shares of a listed company, you purchase those listed shares. But when the company is not listed on any exchange and falls in the category of an unlisted public company, it can also offer share capital to the investors, which are known as unlisted shares. There are multiple examples of companies trading in unlisted markets for example Reliance Retail, Sterlite Power, Tata Technologies, AGS Transact, and more. Not only the traditional companies, but investors can also buy a stake in various start-ups which include Oravel Stays (OYO), One97 Communications (Paytm), ANI Technologies (Ola), and more. To buy or sell unlisted shares, one needs a trusted dealer or share brokers like UnlistedZone, which not only have a soundtrack record but also have more shares in the kitty and give proper advice to investors to make a long term relationship. The companies issue shares to private investors to raise funds or their employees as rewards during the early stage, especially at the growing stage. The companies, with innovative ideas and new technology, come with their equity sales to generate revenue and can grow up to become established players. Also, investors buy shares of the companies which are subsidiaries of homegrown conglomerates, which are backed by strong parentage, anticipating that these subsidiaries will be a big success and post strong returns in the future. More often than not, unlisted shares are owned by employees of the companies, angel investors, venture capitalists, or startups and intermediaries. They offload their stake in the open market to liquidate their positions. To crack such deals, the existing investors require an unconventional market and ample buyers to offload their stake. Though these shares lack a fair price mechanism as the price completely depends upon the demand and supply of the shares. <strong>The Process of Sale </strong> The process of selling unlisted shares is very much easy if you are able to find a genuine dealer. Get in touch with the concerned spokesperson. An Investor will need to share his details with proofs including the DEMAT account, Client Master Report (CMR), and bank account details. CMR is the most important document in the transition. The seller needs to transfer the unlisted share which he wants to sell with the quantities to the buyer's Demat account. Once the transfer of the amount is done, shares are transferred to the Demat account. The payment is done via the preferred mode of transfer. <strong>What is a Client Master Report (CMR)? </strong> Client Master Report (CMR) copy is a paramount document, required to buy unlisted and Pre IPO shares. CMR contains Depository Participant Identity (DP ID), Client ID, PAN number, Bank Account Number, along with more details. This can be easily obtained by sending an email to the broker and the same is delivered within a few hours. The dealer will require a PAN Card, Aadhar Card, and a copy of DIS Slip, which is used to transfer shares into the account. <strong>How to transfer unlisted or Pre-IPO shares? </strong> It is possible to transfer shares from one Demat account to another using a simple procedure. Trading through a Demat account is just like making transactions through a bank account. The only difference is that you transfer shares through the Demat account instead of money. <strong>Offline procedure </strong> With respect to shares held with NSDL or CDSL depositories, the offline procedure for transfer of shares through off-market transfer is possible. One needs to fill out a DIS (Delivery Instruction Slip). ISIN number of the shares to be transferred, name of the company (security), Demat account, and DP ID of the account to which the shares are being transferred must be filled up in the form. The form needs to be submitted to the old broker’s office for further processing. <strong>Online procedure </strong> If shares are held with CDSL, there is an online facility for the transfer of shares using the ‘EASIEST’ platform. One needs to register on this platform using the link, <a href="https://web.cdslindia.com/myeasi/Home/Login" target="_blank" rel="noopener noreferrer" data-saferedirecturl="https://www.google.com/url?q=https://web.cdslindia.com/myeasi/Home/Login&source=gmail&ust=1634013820401000&usg=AFQjCNFSOKITZ7XOtyA2yUzeq5hq4g-AlQ">https://web.cdslindia.com/<wbr />myeasi/Home/Login</a>, and providing existing Demat account details. Next, a trusted account needs to be added which essentially is the Demat account where the shares are to be transferred. Once the account is successfully added after 24 hours, one can transfer securities from the old Demat account to the new one. Points to note * This transfer of shares does not amount to change of beneficial ownership and does not amount to capital gains on transfer. * The broker may charge a stated fee for processing the transfer request. However, if the old account is being closed, no fee can be charged. Note: Shares could be transferred to the different Demat accounts of the same individual or different persons. In the case of transfer of shares to the same person, there will be no added tax liability. Before one invest in unlisted shares, he/she should understand that: <strong>High Risk:</strong> Unlisted shares require a lot of homework. The risk associated with their shares is more and hence one needs to understand the business model and growth opportunities offered by the company. <strong>Time taken</strong>: Transfer of shares in an unlisted market may take some time. Unlike the listed markets, where shares are instantly transferred from one account to another, unlisted markets take some extra time. <strong>Payment System:</strong> The payment to dealers shall be made from the bank accounts associated with the concerned Demat account only. This is done to eliminate the chances of money laundering and other illegitimate activities. <strong>Paper Work:</strong> Various companies require a lot of paperwork to allot shares and despite completion of documentation, allotment of shares is not guaranteed. Shares of the National Stock Exchange (NSE) are one such big example. <strong>Size of Investment:</strong> Unlike listed markets, investors can not buy a small number of unlisted shares. There is a minimum ticket size for every share. However, the retail ticket size is not very big but it is big enough to justify the transaction cost. <strong>Liquidity:</strong> Unlisted markets may get illiquid as there might not be buyers for the shares you wish to sell. There is a complicated process to settle for the selling price, which is usually lower than the market price levied from buyers. <strong>Mistakes to avoid </strong> Whether listed or unlisted market, if you are not careful, you might end up making losses due to some horrible mistakes. Such mistakes would be costly as you might block your capital, incur opportunity costs and even incur a loss if the shares are devalued. a) Do not follow the herd mentality. Do your homework and research well about the company before investing. b) If you are getting shares at very low rates, do not jump at the chance. There might be a reason for existing investors taking an exit at lower prices. c) Price fluctuations of unlisted shares are considerably high. In case of major fluctuations, assess the fair value of the share based on the company’s prospects. d) Do not invest in unlisted shares with a short-term investment horizon. Remember, unlisted shares prove their mettle with time when the company grows and establishes itself in the market. Have patience and a long-term perspective. e) Do not invest in unlisted shares without a trusted advisor to guide you. If you need advisory services you can get in touch with many of the reputed names which will help you to reap high returns.
<div class="gmail_default"> Tata Group's EV tech play Tata Technology has received new orders worth $100 million (Rs 750 crore) this year. The company is aiming to clock 40% growth in the current financial year 2021-22 to achieve new revenues worth $500 (Rs 3,700 crore). Tata Technologies, global engineering, and product development digital company, is driving towards strong revenue generation in the current fiscal to be back on the growth track via new business opportunities. In the pandemic hit FY 2020-21, the company had registered a 16.5% fall in its new orders to Rs 2,381 crore, thanks to the covid-19 pandemic which jittered the sentiments. Warren Harris, CEO of Tata Technologies in an interview said that the company has bagged new orders worth over $100 million, mainly from embedded vehicle electronics and digital players. The technology company claims to have seen a strong uptick in the various segments like the embedded technology business segment, even in the pandemic. Tata technologies have been partnering with automakers from India, China, US, Japan, and Sweden for more adoption. The company is bagging the majority of overseas orders from four-wheeler OEMs, it is eyeing two-wheeler OEM's too. The company is eyeing to be a major player in the EV category by grabbing more market share. Tata Motors, its major shareholder, is also eyeing to demerge its EV business into a separate entity. Tata Technologies' mechatronics has enabled infotainment integration and validation for a premium European luxury carmaker. Tata Technologies provided complete systems integration for a Swedish carmaker, other than from offering validation and functional safety motor controllers for another Japanese Electronic Vehicle maker. Likewise, Tata Technologies is also said to be helping an Indian OEM with its next-gen electric scooters. Tata Groups chairman Emeritus has invested a big share in Ola Electric. Earlier, OEMs preferred to retain most of the decision-making process within their enterprise while taking support from outside. Nowadays, Tata Technologies gets to develop an entire vehicle program, starting from concept through to managing vendors, testing and validation, and eventually the product launch itself. According to Harris, this is a first in India concept. He reiterated the fact that it will decrease the time to develop vehicles and enable OEMs to cater to their markets better and faster. Tata Technologies's chief executive said that end-to-end time is likely to be reduced to 25-27 months, which was about 38-45 months earlier. The ongoing pandemic has prompted OEMs to become more flexible and agile in order to remain competitive, resulting in a rush of investment towards digitalization, Harris said. The company's proprietary solution, eVMP - an electric vehicle scalable modular platform - is enabling automakers to accelerate their electric goals as EVs are the future for commercial automation. Tata Technologies claims to remain unaffected by semiconductor shortages thus far, which is expected to last for the coming 12-12 months. Also, a few customers of the company may slash their discretionary investments. </div> <div> <div dir="ltr" data-smartmail="gmail_signature"> <div dir="ltr"></div> </div> </div>
<div class="gmail_default">Kerala's Cochin International Airport (CIAL) is the third busiest airport in terms of international traffic. The airport has been able to retain its place for the third consecutive month from July 2021. According to the airport authorities, it handled about 85,395 international passengers in July, which surged to 1.57 lakh in August and about 1.95 lakh in September 2021. The total number of domestic and international passenger footfall for the month of September stood at 3.7 lakh, CIAL added. <br /><br />Cochin International Airport is the first greenfield airport in the country built with a public-private partnership, which is planned and constructed with novel infrastructure ideas to deliver the development. "Cochin International airport Ltd (CIAL) establishes itself as the third airport in the country in terms of international traffic for three consecutive months from July 2021," it said in a release. <br /><br />The airport handles an average of 106 aircraft movements every day, which includes both international and domestic operations. The daily average passenger footfall stands around 14,500. It is also the first airport in the world, which is totally powered by Solar Energy. Overall, it is among the largest airports in the country in terms of air traffic volumes. <br /><br />According to the Cochin Airport Authority, the airport facilitates flights to all the Middle East destinations, London, Male, and Colombo on the international route. The authority expects a decent growth in the international traffic for the month of October as more foreign carriers and airlines are scheduled for frequent services from the city. Sri Lankan Airlines is the latest addition to operate a daily operation to Colombo from this week. With this addition, CIAL will be handling 58 international arrival and departure operations every day for the month of October thus far. S Suhas, Managing Director, Cochin International Airport said that the airport witnessed significant growth in traffic during September and scheduled more international flights for October. Suhas is optimistic about the global recovery among all the sectors and global aviation is also responding to it. <br /><br />CIAL expects to reach international connectivity to 70% of the pre-pandemic level by next month. On the other hand, domestic air movement is near normalcy, he added, and will reach the normal level in the winter months. It kicked off its commercial airlines in June 1999 and its first international flight landed in Dammam, a city in Saudi Arabia. <br /><br />The company has five subsidiaries. Sri Lankan Airlines, which resumed its daily service to Colombo from October 3, via their flight UL 165 arrives at COK at 0945 and departs as UL 166 to Colombo at 1045 on all days except Sunday. On Sunday, the arrival and departure of the flight UL 165 and UL 166, respectively, are scheduled at 0845 and 0945, respectively. Key domestic players like Bharat Petroleum, Housing and Urban Development Corporation (Hudco), Air India, State Bank of India, (SBI), and Federal Bank hold a significant stake in the CIAL. However, the financial performance of the CIAL was highly affected in the financial year 2020-21 after the Covid-19 pandemic broke out, which led to nationwide lockdown and restrictions, curbing the movement on a domestic and international basis. On a consolidated basis, the company reported a net loss of Rs 92 crore in the financial year ended on March 31, 2021.<br /><br />The company has reported a net profit of Rs 237 crore in the year-ago fiscal. The company registered a total income of Rs 296 crore in FY2021, a fall of over 63 percent compared to the revenue of Rs 810 crore the previous fiscal.</div> <div class="gmail_default"> </div> <div class="gmail_default">Its EPS slipped into the negative territory, while it had an EPS of 6.19 in the FY 2019-20. The company is maintaining its debt-to-equity ratio of less than 0.5 for the last five years. On a standalone basis, the company reported a net loss of Rs 87 in FY 2021 crore against a net profit of Rs 215 crore in the previous year. It was the first time a company reported a loss in a fiscal year, thanks to the pandemic. The company clocked a revenue of Rs 252 crore in the financial year ended on March 31, 2021, which was more than 61 percent down from the total income of Rs 650 crore earned by the company in the period a year ago.</div>
Five Star Business Finance Unlisted Shares has come up with its annual report 2021 and same is available with UnlistedZone. Let us see how it has performed in the last one year. <!--more--> <strong>About Five Star Business Finance Unlisted Shares</strong> Five Star is a NBFC which provides Small Business loans and Small Mortgage loans to the eligible borrowers to meet their business and personal needs, after due underwriting of their cashflows and backed by the collateral of their house property. <strong>Business Highlights of Five Star Business Finance Unlisted Shares</strong> 1. Disbursal of about 1,250 Crores despite losing almost half of the year to COVID, which also resulted in the borrower base crossing 1,75,000 during the year. In FY20, the disbursement was 2409 Crores. So, disbursement fell by almost 50% due to covid-19. 2. The Company also saw its portfolio growing from about 3,900 Crores to almost 4,500 Crores, an increase of 14% in such a turbulent year. 3. Revenue has gone up from 787 Crores to 1051 Crores. 4. Growth in Profit after Tax (PAT) from about 260 Crores to about 360 Crores, an increase of about 37%. 5. Gross NPA of 1.02%, which is one of the best asset quality metrics across the financial services industry. 6. Currently, they have 262 branches PAN India. <strong>Valuation of Five-Star Business Finance?</strong> Seeing the robust performance of Five Star Business Finance even during the pandemic, some of the existing investors and a couple of new investors came together to infuse more capital and also give a complete exit to one of the early investors viz. Morgan Stanley. Five Star Business Finance was valued post money, at 1.4 billion dollars, making it a coveted ‘Unicorn”. The two new investors who have joined the race are viz. KKR and TVS Capital. As on 31.03.2021, Five Star Business Finance has Net-Worth of 2318 Crores and total outstanding shares of 2.564 Crores. Book Value = 905 per share Unlisted Market Price of Five Star Business Finance = 7500 P/B = 8.28x (<strong>which looks very stretched</strong>) Mcap = 19000 Crores. The NBFC is a top class, but the current valuation of the stock in unlisted market is highly overvalued. It was a good buy around Rs. 5000 but not now.
<div class="gmail_default"> Fino Payments Bank has received the go-ahead from the capital markets regulator Sebi to float its initial public offering (IPO) and raise funds. The fintech player, which is eyeing to raise up to <strong>Rs 1,300 crore</strong> from its stake sale, had filed its draft red herring prospectus (DRHP)in July 2021. The company will issue<strong> fresh equity shares worth Rs 300 crore</strong> and promoter company Fino Paytech Limited's stake worth up to <strong>1,56,02,999 equity shares of the company.</strong> According to this calculation, the price band for the issue is likely to be around Rs 640 per equity share. The company has reserved equity shares worth Rs 3 crore for its eligible employees. Fino Payments Bank has obtained observations from Sebi on October 1, which is mandatory before launching any public issue like IPO, follow-on public offer (FPO), and rights issues. The lender may consider a pre-IPO placement worth Rs 60 crore after the consultation with merchant bankers. If the company opts for pre IPO placement, the fresh issue size will be trimmed. The net proceeds from the issue will be utilized for augmenting its Tier-1 capital base to meet its future capital requirement and general corporate purposes. Fino Payments Bank offers a diverse range of digital financial products and services and has a payments focus. Since 2017, it has grown its operational presence to cover over 94% of Indian districts as of March 2021. The company operates on an asset-light model which is primarily dependent on the fee and commission income, generated from its vast and pan India merchant network. The company became profitable in the final quarter of the fiscal year 2019-20 and has remained in the black in the subsequent quarters since then. In FY20 and FY21, it facilitated more than 318.56 million and 434.96 million transactions, respectively. It recorded the gross transaction values of Rs 94,452.6 crore and Rs 1,32,930.7 crore, respectively during the period under review. Axis Capital, CLSA India, ICICI Securities, and Nomura Financial Advisory Services are appointed as the book running lead managers to the issue, whereas Kfin Technologies has been appointed as the registrar for the issue. </div> <div> <div dir="ltr" data-smartmail="gmail_signature"> <div dir="ltr"></div> </div> </div>
<div class="gmail_default">Oravel Stays limited has also joined the domestic IPO fiesta as the operator of OYO Rooms has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). Founded by Ritesh Agarwal and backed by Softbank, the hospitality startup is eyeing to <strong>raise about Rs 8,430 crore</strong> via its initial stake sale, the draft paper said. <br /><br />The unicorn's IPO will consist of the issuance of a fresh issue of <strong>equity shares worth Rs 7,000 crore,</strong> with a face value of Re 1 each, and an <strong>offer for sale (OFS) of up to Rs 1,430 crore</strong> by promoters and existing shareholders. This makes the 83% issue is the fresh one, whereas 17% of the issue is an offer for sale. <br /><br />The hospitality tech player is considering issuing shares worth Rs 14,300 crore ($193 million) in a pre-IPO fundraise. Interestingly, any major investor or the <strong>founder Ritesh Agarwal, who holds a 34% stake in the company</strong>, will not be diluting any stakes in the company in this IPO, which is expected to launch by end of this year or in January. <br /><br />SoftBank owns over 45% of the Gurugram-headquartered startup. Other investors include Lightspeed Venture, Airbnb, Grab, Microsoft, and Sequoia Capital. With its IPO filing, Oyo has joined a host of top tier Indian tech startups including Paytm, PolicyBazaar, Nykaa, and others, making their way to capital markets Online food delivery firm Zomato, in July, made a stellar debut on the bourses here setting the stage for domestic startups to ride on the current IPO wave. Prior to this, EasyTripPlanners made its debut. In the OFS, SVF India Holdings (Cayman) will offload a stake worth Rs 1,328.53 crore, whereas A1 Holdings Inc will sell shares worth Rs 51.62 crore. Following the suite, China Lodging Holding (HK) will sell equity shares worth Rs 23.13 crore and Ivy Ventures LLP will sell shares worth Rs 26.71 crore. <br /><br />The proceeds from its fresh issuance worth Rs 2,900 crore will be utilized for organic and inorganic growth initiatives, whereas Rs 2,441 crore will be utilized for the repayment and/or prepayment of certain borrowings. The remaining proceeds will be used for general corporate purposes. 75% of the net offer has been reserved for qualified institutional buyers. 15% of the offer shall be available for non-institutional investors and the remaining 10% shall be available for allocation to retail individual bidders. In the financial year 2020-21, <strong>Oyo Rooms reported a 52% fall in revenue to Rs 6,329.73 crore against a revenue of Rs 13,168.15 crore a year ago.</strong> <br /><br />The company reported a restated loss from continuing operations of Rs 2,294.31 crore in the fiscal year ended on March 31, 2021, which was Rs 11,079.79 crore in the previous financial year. Oyo has appointed Kotak Mahindra Capital, JP Morgan India, and Citigroup Global Markets India as the global co-ordinators and BRLMs to the issue, whereas Link Intime India has been chosen as the registrar to the issue. ICICI Securities, Nomura Financial Advisory and Securities (India), JM Financial, and Deutsche Equities India are the merchant bankers to the issue.</div> <div> <div dir="ltr" data-smartmail="gmail_signature"> <div dir="ltr"> </div> </div> </div>
Integrated services player BVG India is eyeing to raise funds from primary markets as the company has filed its draft red herring prospectus with the markets regulator SEBI to float its initial public offering (IPO). According to the DRHP, the issue will consist of the issuance of <strong>fresh equity shares worth Rs 200 crore</strong> and an offer for <strong>(OFS) of up to 7,196,214 equity shares</strong> by promoters and existing shareholders. Participating in OFS, promoters of the company, Hanmantrao Ramdas Gaikwad and Umesh Gautam Mane will offload about 2 million equity shares. Other key shareholders including Strategic Investment FM (Mauritius) Alpha Limite, Strategic Investment FM (Mauritius) B, and Other shareholders will sell about 5.2 million equity shares from their stake. The company will utilize the net proceeds from the fresh issue to repay and/or prepay certain borrowings of the company and the remaining proceeds will be used for general corporate purposes. The company has allocated 60 percent of the net offer for qualified institutional buyers (QIBs), whereas 15 percent of allocation shall be made to noninstitutional investors (NIIs), and the remaining 35 percent shall be available for allocation to retail bidders. The Pune-based BVG India is among the largest integrated services companies in India with a headcount of more than 54,000 employees on June 30, 2021. In the financial year 2020-21, the company served over 582 clients in more than 100 cities, spread across 20 states and five union territories of the country. The company offers a wide range of integrated services including soft services such as mechanized housekeeping, industrial housekeeping, manpower supply, security services, and janitorial services, hard services. Backed by UK private equity major 3i Group, BVG India also provides beach development and cleaning services and also undertakes the operation and maintenance of buses including electric buses In the financial year 2021, BVG India's revenue from operations declined about 13.6 percent to Rs 1,667.72 crore against Rs 1,930.12 crore a year ago. The company reported a net profit at Rs 86.11 crore in the fiscal year ended on March 31, 2021, a decline of 30 percent from Rs 122.50 crore the previous financial year. ICICI Securities, JM Financial, and HSBC Securities and Capital Markets (India) are the merchant bankers to the issue. Link Intime India has been appointed as the registrar to the issue.
Tata Technologies has entered into a strategic partnership with the government of Manipur to transform technical training and encourage entrepreneurship and innovation in the state. The global engineering major and digital services firm has collaborated for three years as both the parties have inked a Memorandum of Agreement (MoA) for the purpose. Under the partnership, a center for invention, innovation, incubation and Training (CIIIT) on industrial experiential learning and development will be established in Manipur. The total investment under this project is pegged at about <strong>Rs 200 crore</strong> and the center will be up and running by the first quarter for the next financial year. It is likely to have the <strong>capacity to train 1,500 students every year</strong>. The center would be spread across about 20,000 square feet of area and will showcase the latest infrastructure, tools, and technologies around industry 4.0, robotics, 3D printing, and electric vehicle design, and more. "<strong>The latest center is expected to bring qualitative improvements in the field of engineering education in Manipur and will cater to industry requirements of making available job-ready engineers,</strong>" the company said. Tata Technologies added that the project will improve the availability of advanced skills required for the manufacturing value chain in the northeastern state and will thereby incentivize businesses to invest in Manipur and create more jobs. N Biren Singh, Chief Minister, Manipur said that he wants the state to be at the forefront of the technology revolution that is taking place. "Through our collaboration with Tata Technologies, we aim to create the best of its kind CIIIT that will empower the youth of Manipur and create better employment and entrepreneurship opportunities for them," he added. The CM of the state also emphasized the need for the availability of job-ready engineers which in turn will transform the state into a potential investment destination for those industry players. The collaboration is aimed at building a futuristic training ecosystem to implement the best-of-its-kind training infrastructure, curriculum and enable people of Manipur to be at the forefront of the technology revolution. Warren Harris, Managing Director, and CEO, Tata Technologies said that the partnership will produce engineers who will be capable of innovating the future-ready products and rapidly transforming the ecosystem of technology. "<strong>In collaboration with the government of Manipur, we intend to leverage our product engineering expertise and manufacturing domain knowledge to train and skill future-ready engineers,</strong>" he added. <script src="chrome-extension://lmnganadkecefnhncokdlaohlkneihio/enable.js"></script>
The domestic mobile phone manufacturer <strong>Lava International</strong> is all set to raise funds from primary markets via its primary offering. The company filed draft papers (DRHP) with the Securities and Exchange Board of India (SEBI) for its IPO. According to the DRHP, the issue will consist of the issuance of fresh equity worth <strong>Rs 500 crore</strong> and an offer for sale of up to <strong>43.73 million</strong> shares by its existing shareholders and promoters. Existing shareholders participating in the proposed IPO include <strong>Hari Om Rai (up to 12.54 million shares), Shailendra Nath Rai (up to 3.14 million shares), Sunil Bhalla and Vishal Sehgal (up to 7.84 million shares each), Unic Memory Technology (up to 11.27 million shares) and Tupperware Kitchenware (up to 0.97 million shares)</strong>. Axis Capital, BOB Capital Markets, DAM Capital Advisors, and SBI Capital Markets have been appointed to manage the issue, whereas Link Intime India has been appointed as the registrar to the issue. The net proceeds from the issue will be utilized for marketing and brand building activities, funding acquisition and other strategic initiatives, and investment in material subsidiaries for funding its working capital requirements. Lava is a leading end-to-end focused mobile handset and mobile handset solutions company based in Noida (India), with operations in more than a dozen countries. Up to 50 percent of the total offer is reserved for qualified institutional buyers, and 15 percent for non-institutional investors. The remaining 35 percent stake is allocated to the retail investors. It designs, manufactures, markets, distributes, and services mobile handsets, tablets, and other electronics accessories under its own LAVA and XOLO brands, and provides value-added software services. The firm also offers mobile handsets solutions to original equipment manufacturers (OEMs) ranging from sourcing, design, manufacturing, quality testing, embedding software, and distribution. The company recently inked a partnership license agreement with Lenovo, which entitles it to distribute mobile handsets manufactured by it under the Motorola brand in India and overseas. Also, Lava International has entered a multi-year contract with HMD for an end-to-end design, manufacturing, supply chain, and distribution of mobile handsets under the Nokia brand in India and overseas. It has a manufacturing facility located in Noida. As of August 2021, it had more than 15 assembly lines operated by more than 3,100 workforces with a production capacity of 42.52 million feature phone equivalent handsets per annum. As of July, it had 705 service centers and 60 service wheels across India. For the fiscal year ended on March 31, 2021, the company clocked a revenue from operations to <strong>Rs 5512.87 crore</strong> against Rs 5264.33 crore a year ago. Net profit for the period stood at <strong>Rs 172.61</strong> crore as against 107.76 crores last year. <strong>For buying and selling of Pre-IPO or Unlisted Shares in India, please visit our website www.unlistedzone.com or drop us an email at [email protected].</strong> <script src="chrome-extension://lmnganadkecefnhncokdlaohlkneihio/enable.js"></script>
Electrosteel Steels has bagged Nadidih BICO iron ore block at Odisha auctions as the company has bid the highest bid for the block in the last week. According to the sources, the steel player bid a premium of 95.6% for the block. Last year, the iron ore block had been bagged by Sociedade De Fomento, offering 141.25% in premium but the Goa-based miner chose not to sign a lease agreement on grounds that the MDPA was too aggressive for this reserve. Bidding for this particular block, Rungta Group's BICO mined started at 76.1% premium, which was offered by Vedanta's Electrosteel as the IPO price. The other four qualified bidders in this forward round included Ramgad Minerals, Rungta, AM/NS India and Odisha Metaliks. On the other hand, JSW's latest acquisition Bhushan Power bid 30% and Jagannath Power bid 27% premium. Both the lower bids were disqualified from the second round. The mine has an area of 74.5 Ha with explorations done up to G2 level and has total geological resources of around 27 million tonnes of iron ore. The mine produces 89.34% fines and 10.67% lumpy ore. The government has put 10 iron ore blocks under the hammer in this round. These include Nadidih BICO, Kasia, Gandhalpada, JumkaPatrishohi to name a few. Department of Steel and Mines of the Odisha Government expects to complete the auction process by the end of September 2021. After the current tranche of 11 mineral blocks, it may auction another five blocks as composite leases. The Odisha government is expected to announce the technically qualified bidders for other mines gradually in the coming days.
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