Analysis, guides and explainers on India's unlisted market — from IPO pipelines to ESOP liquidity.
Below are the quick updates about the ICEX financial performance highlights and regulatory requirements. 1. The operating income for F.Y 2019-20 is ₹ 3.23 Crore as against ₹ 1.90 Crore in F.Y 2018-19. 2. The net loss after tax for the year ended March 31, 2020, stood at ₹ 42.32 Crore as against ₹ 28.57 Crore for the year ended March 31, 2019.<!--more--> 3. The net worth as of March 31, 2020, stood at ₹129.37 crores. 4. In FY19-20, the Company has launched Paddy Basmati Futures Contract on July 11, 2019, thereby marking another milestone. ICEX has created the world’s first organized, transparent, and regulated derivatives market for diamonds. 5. ICEX Company had envisioned and has started a business in Mutual Fund Distribution Scheme and its related activities during the financial year 2019-20. 6. The average daily turnover during F.Y 19-20 was ₹ 156.41 crores as compared to ₹ 93.62 crores in F.Y 2018-19 (single side) with a total of 7098 clients traded on the Exchange. 7. The total turnover of commodity futures traded on ICEX Exchange for F.Y. 19-20 stood at ₹ 40511 crores as against ₹ 24000 crores in F.Y 2018-19. 8. ICEX has a national reach with 138 SEBI registered members, having 1298 Authorised Persons, operating through 3340 terminals including Computer to Computer Link (CTCL) across 329 cities/towns across India as of March 31, 2020. <strong>Regulatory Updates:</strong> In order to develop the commodity derivatives market and Mutual Funds, applicable to ICEX Exchange, SEBI has brought the following reforms among others as under:- 1. Participation of Eligible Foreign Entities (EFEs) in the commodity derivatives market. 2. Participation of Foreign Portfolio Investors (FPIs) in Commodity Derivatives. 3. Uniformity in the procedure for obtaining samples of goods at the Exchange accredited warehouse. 4. Total Expenses Ratio (TER) and performance Disclosure for Mutual Funds. 5. Instant Access Facility (IAF) in Mutual Funds.
Paytm Money, the subsidiary of Paytm, which recently started as the full-fledged retail broking service in the Indian stock market, has today announced the facility of applying in the IPO from its app itself. The platform has enabled investors to instantly apply for all the latest IPOs via UPI ID, linked to their bank accounts to quickly complete the IPO application process. The company is leveraging the convenience of UPI infrastructure, which was recently allowed by SEBI for applying in IPOs to reduce the time required to complete the process of IPO from 6 days to 3 days.<!--more--> Paytm App is also providing the option to check the upcoming IPOs, the company details, prospectus details, etc. The platform also gives an option to modify, and cancel the IPO application. <em>Varun Sridhar, CEO — Paytm Money said, “The Indian start-up ecosystem has a growing appetite for entering the capital market, now more companies want to raise capital from a broader set of investors with a public listing. Likewise, investors are also increasingly willing to diversify their portfolios. This presents a big opportunity and we intend to make the process more accessible to our fellow citizens. In near future, we plan to launch IPO funding, derivatives trading, margin finance, and a host of other value-adding features to make investing seamless and convenient. This is aligned with our mission to drive financial inclusion across the country.”</em> Paytm is trying to attract IPO investors which in itself is a very big market. In the month of Sept and Oct-2020, we have seen how dozens of companies raised money from the IPO market. The investors who have applied in the IPOs too have made big money. This presents a big opportunity for Paytm to capture the market. If Paytm able to capture the interest of clients with ease of service to apply in the IPOs, then they will surely increase their presence in the broking business. We at UnlistedZone think that Paytm in the broking business with the use of technology will try to copy-cat Zerodha features and services one by one. Now the time will tell whether it can replicate the performance of Zerodha or not.
Press Trust of India has informed that the Ministry of Road, Transport, and Highway today announced that the 2-Wheelers will have to compulsory manufacture and use BIS-certified helmets. This will reduce the low-quality helmets sold in India and also help in saving the lives of the rider during accidents. <!--more--> Following the directions of the Supreme Court Committee on Road Safety, a committee was formulated to consider lighter helmets in India suiting the country's climatic conditions and that for ensuring compliance among citizens to wear the helmets. The total number of two-wheelers being manufactured in India annually is nearly 1.7 crore. This is great news especially for unlisted companies like Studds Accessories, as the use of BIS-certified helmets will help the company in gaining more market share from the unorganized players which were selling non-standard helmets.
Fino Payment Bank which has shown a record growth of transactions in the COVID-19 time has come up with an excellent Q2FY21 number showing PAT of 4.5 Crores. The PAT has gone up from 1.9 Crores in Q1FY21 to 4.5 Crores in Q2FY21. This shows that Fino-Payment bank is growing on a QoQ basis.<!--more--> Last year i.e. FY19-20, the company was profitable at the EBITDA level but now in FY20-21, the company has shown a profit at the PAT level in the consecutive quarters. The reason for profitability is a lean variable cost of operations along with increasing revenue and pushing out of high-margin products. Fino-Payment bank has reported a total transaction settlement of Rs 33,000 crore in Q2, up 43 percent from the year-ago period. As per Rishi Gupta, the CEO of Fino-Payment Bank that; <em>"The biggest positive for us is the change in customer’s banking behavior resulting in increased transactions. We will continue to explore growth opportunities in payment services as well as the trillion-dollar digital payments space and create value for all our stakeholders. </em>. We at UnlistedZone are in the view that the COVID-19 has presented a similar opportunity that had come in 2016 after demonetization, where companies focussing on digital payment will grab more and more market share in the payment business. The people are happy to pay and transfer money instead of using cash to safeguard themselves from COVID-19. After this excellent performance at the PAT level in consecutive quarters, Fino-Payment bank has become the second profitable payment bank in India after Paytm. Recently, the RBI committee has also given a recommendation allowing Payment banks having operations for 3 years to convert into Small Finance Bank. Let us see if these recommendations are accepted by RBI. If this happens, the Fino-Payment bank will grab the opportunity with both hands. Previously, the time frame was of 5 years. <strong>Valuation of Fino-Paytech?</strong> In the Unlisted market, the shares of Fino-Paytech, the parent company of Fino-Payment bank are available. The current price of shares is 120 per share. As of 31.03.2020, the total outstanding shares are 12.25 Crores. Mcap = 1500 Crores.
The state Government of Karnataka has signed an agreement with Tata Technologies, a flagship company of Tata Group, to upgrade the infrastructure of 150 ITIs( Industrial Training Institute) with the latest technology. The overall cost of project is 4636 Crores. The agreement has been signed in the presence of Karnataka's Chief minister BS Yediyurappa. As per project, Tata Technologies will train 1 lakh youth every year for the next 10 years.<!--more--> This is the excellent step taken by the Karnataka Government to educate youth with latest technologies, so that they can get the skills which are required to get jobs in this present world. <strong>Who will bear the project cost?</strong> In this agreement, Tata Technologies will provide Rs 4,080 crore and rest money i.e. 556 Crores will be provided by State government. Three hundred trainers from Tata Technologies and associate industries will impart training in these 150 ITIs. At present in the Karnataka we have total 1,713 ITIs out of which 270 are run by government, 196 aided and 1,247 private - where around 1.8 lakh students are enrolled. Of the 270 state-run ITIs, 150 have their own building. And Tata Technologies along with other players will train these 150 ITIs. <strong>Sector to focus on?</strong> The agreement will focus on electric vehicles, agricultural machinery, aerospace/defence, horticulture, smart cities and other sectors. And these are the trending sectors where lot of employment will be generated in the future.
Reliance Retail has purchased 96% stakes in Urban Ladder for just 186 Crores. Why we are just 186 Crores? because last year the valuation of Urban Ladder was 1200 Crores. So, Reliance Retail is getting Urban Ladder at 1/6th of the value. <!--more-->The Urban ladder over the years has been struggling and that is the reason the investors have parted away with the company so cheaply. Reliance Retail has further options to acquire 100% stakes in the company. This is all cash-deal. RRVL proposes to make a further investment of up to INR 75 crore. Further investment is expected to be completed by December 2023. <strong>Urban Ladder:</strong> UrbanLadder was incorporated in India on February 17, 2012. UrbanLadder is in the business of operating a digital platform for home furniture and décor products. It also has a chain of retail stores in several cities across India. UrbanLadder’s audited turnover was INR 434.00 crore, INR 151.22 crore, and INR 50.61 crore, and Net Profit / (Loss) of INR 49.41 crore, INR (118.66) crore, and INR (457.97) crore in FY 2019, FY 2018, and FY 2017 respectively. With this investment, the Reliance Retail group’s digital and new commerce initiatives and widen the bouquet of consumer products provided by the group, while enhancing user engagement and experience across its retail offerings.
Suryoday Small Finance Bank is a new age bank that went live on January 23rd, 2017. The main aim of forming a small finance bank is to bring the best banking solutions to the ‘banked’, ‘under-banked’, and the ‘un-banked’ sections of society. Today, Suryoday Small Finance is the leading Small finance bank in India with 3600 Crores of loan advances and ~3100 Crores of deposits. Suryoday Small Finance Bank will come up with an IPO soon as per RBI regulations.<!--more--> Suryoday Small Finance Bank on 12.11.2020 has published its half-yearly results to the exchanges. <strong>Results Analysis</strong> 1. The interest income for the first 6MFY21 increased to 420 Crores from 365 Crores last year. This shows a growth of 15% in the interest income. 2. To mitigate the risk of Covid-19, the Suryoday Small Finance Bank has kept 91 Crores for Provisions and contingencies. This is up by 20 Crores from last year. 3. PAT for the first 6MFY21 stands at 53 crores down from 83 Crores last year. This is mainly due to higher provisions and contingencies. 4. Suryoday Small Finance Bank has shown an EPS of 6.09 in the first half of FY21. 5. During the half-year ended September 30, 2020, the Bank issued 23,90,020 equity shares ruder private placement aggregating to 62.14 crores. This translates into a share value of 259 per share. 6. GNPA stands at 2.3% and NNPA at 0.35% as of 30.09.2020. 7. Capital Adequacy Ratio stands at 29.48%. 8. Net-Worth stands at Rs. 1187 Crores and no. of shares outstanding 8.912 Crores. So book value per share 133 per share. <strong>COVID-19 Impact and Provisions</strong> The Bank has made an additional provision of 47.99 crores (Retail banking 44,63 crores and Corporate banking 3.36 crores) for potential impact COVID-19 as of September 30, 2020. Further COVID provision of 65.99 crores (Retail banking { 57.43 crores and Corporate banking { 8.56 crores) was created as of March 31, 2020. Without COVID-19 provision segment result for Retail banking and Corporate would have been { 103.79 crores and { 2.72 crores for halfyear ended September 30, 2020, and t 2l 1.04 crores and { 4.07 crores for the year ended March 3 l, 2020 respectively. <a href="https://unlistedzone.com/storage/knowledge-logo/6d89626c-5953-434b-9b9a-f125170e1b6f.pdf">Results Link</a>
Buying gold is always a cumbersome task given the reason that finding pure gold is difficult, a lot of paperwork to buy gold, and later on, selling is also difficult. So, to remove all these burdens, Paytm from its app has given the option of buying gold digitally. <!--more-->And you will be surprised to know that Paytm has sold close to 5000 Kg of gold from its application in the last 6 months. If we take the average price of 45000 per share, the worth of transactions in the last 6 months is ~2200 Crores. This shows that Indians are very much inclined towards investment in gold and if they get a simple platform like Paytm to invest in gold by sitting at the comfort of home, then there is no stopping for gold. By looking at the increase of transactions, Paytm has also increased the transaction limit of digital gold to Rs 1 crore and expects the current momentum of high growth to continue. Diwali and Dhanteras are considered quite auspicious in India to buy gold and that is the added reason for the spurt in the sale of gold via the Paytm app. Paytm Money CEO Varun Sridhar said, “As the pandemic continues, Paytm's digital gold has generated massive interest from Indians who want to continue buying gold for the purpose of investment, personal use, and gifting during these uncertain times, but have been restricted from going out to buy gold or meet friends and family.” <strong>How to buy gold via Paytm App?</strong> <iframe src="https://www.youtube.com/embed/SKXjbwjOCZk" width="677" height="381" frameborder="0" allowfullscreen="allowfullscreen"></iframe>
Paytm is trying to put financial inclusion deeper in our country by enabling collateral-free loans of up to Rs. 500,000 at a low-interest rate and unique daily EMI product customized for micro-merchants.<!--more--> As per Bhavesh Gupta, CEO — Paytm Lending said, “With our collateral-free instant loans, we are trying to help Kirana stores & other small business owners who have been left behind by the traditional banking sector and do not have easy access to loans and credit. Going forward, we will especially focus on EDC merchants and provide higher loan amounts based on their EDC transactions" <strong>How do they give loans instantly?</strong> 1. Their algorithm determines the credit-worthiness of the merchant based on his daily transactions and arrives at a pre-qualified loan offering. 2. They have digitized the entire process starting from the loan application, approval to disbursal with no additional documents required in partnership with NBFCs and banks. 3. Loan repayment is primarily collected from the merchant’s daily settlement with Paytm and there are no prepayment charges on these loans. In the last financial year, Paytm has processed loans worth Rs. 550 crore benefiting over a lakh merchant partner.
The board of Manjushree Technopack Limited has announced that below are the proposals to be passed by the Members through electronic voting: (a) Issue of Compulsorily Convertible Debentures on a preferential basis.<!--more--> Manjushree Technopack is doing preferential allotment on a private placement basis, up to 40,13,002 Compulsorily Convertible Debentures, at par, with a face value of Rs.100 each(“CCDs”), to AI Lenarco Midco Limited (”Investor”), for an aggregate amount of Rs. 40,13,00,200/ being convertible into such number of equity shares of the Company (“Conversion Shares”), as derived on the basis of the conversion price of Rs.1637.96. AI Lenarco Midco Limited is the largest shareholder with a 77% stake in the company. (b) Amendment to the Articles of Association of the Company. (c) Appointment of Mr. Sanjay Digambar Kapote as Managing Director and CEO. <strong>E-Voting</strong> The e-voting period shall commence on Monday, 9th November 2020 at 9:00 a.m. (IST) and end on Tuesday, 8th December 2020 at 5:00 p.m. (IST). The e-voting will be blocked by CDSL thereafter. During this period, Members of the Company holding shares either in physical or dematerialized form, as on the cut-off date, i.e. Friday, 30th October 2020, may cast their vote electronically. <a href="https://unlistedzone.com/storage/knowledge-logo/Postal-Ballot-Notice-23-10-2020.pdf">Postal Ballot Notice</a>
Paytm has announced its partnership with India's biggest credit card player i.e. SBI Cards to provide the credit cards through its Paytm app. The card will be available in two variants, Paytm SBI Card and Paytm SBI Card SELECT, these have been launched on the Visa platform. Paytm SBI Card variants completely reimagine the credit card experience by enabling smart app features and providing superior rewards & benefits for its users.<!--more--> <strong>What are the features available on these cards?</strong> 1. Instant one-touch services such as blocking/ unblocking the card for online transactions. 2. Blocking the card in case of loss. 3. Issuance of a duplicate card. 4. Viewing outstanding credit-limit. 5. Users can register for the card from the app in less than 1 minute. <strong>Offers available on paying through cards.</strong> 1. Cardholders will receive a cashback of 5% and 3% on Paytm SBI Card SELECT and Paytm SBI Card respectively, upon booking movie tickets and travel tickets on the Paytm app as well as on purchasing items from Paytm Mall. 2. For other spending on the Paytm app using the Paytm SBI Card variants, cardholders will receive 2% cashback while 1% cashback is offered on spends elsewhere. <strong>Charges for these Cards?</strong> 1. For Paytm SBI Card Select one has to pay an annual fee of 1499. On that, you will get the benefits such as Complimentary Paytm First Membership worth INR 750, Annual Fee reversal on achieving ₹200,000 Annual Retail spend, Spends based Cashback Benefit Structure, 1% Fuel Surcharge Waiver, Complimentary Cyber Fraud Insurance cover of INR200,000, Complimentary Priority Pass worth US $99 for first two years of cardholder membership, Complimentary 4 Domestic Lounge visits, etc. 2. For a Paytm SBI card one has to pay an annual fee of 499. On that, you will get benefits such as Complimentary Paytm First Membership worth ₹750 on the first settled transaction, Spends based Cashback Benefit Structure, 1% Fuel Surcharge waiver, Complimentary Cyber Fraud Insurance cover of INR 1,00,000, and Complimentary Paytm First Membership E-Voucher on renewal on achieving Annual Retail spend of INR 1,00,000. <strong>Frequently Asked Questions?</strong> 1. How can I apply for a Paytm SBI credit card? The customers can apply for the Paytm SBI Card and Paytm SBI Card SELECT online through their Paytm app. Both the cards can be availed at the annual fee of INR 499 and INR 1499 respectively. Customers will also have an option to choose from two-color variants on the Paytm App. Due to high demand, they are currently offering these credit cards to select Paytm users only. To apply - Log in to your Paytm app - Select Show More and tap on the Loans and Credit Card section - Users can also search ‘Credit Card’ in the Paytm Search bar. 2. What KYC documents are required to apply for a Paytm SBI Credit Card? Once the application has been submitted, the users can book the KYC verification appointment on the app itself as per their convenience and require the following documents for submission: 1. Photo ID proof copy 2. Address proof copy (Either current address or permanent address) 3. Passport size photograph (Please note that in case of any discrepancy, additional documents might be required.) 3. When can I get the card? Post the KYC document verification, the users will be notified about their card approval/ rejection status in the next 1–2 business days. Once approved, they will receive the card in the next 5–7 business days. 4. What is the minimum age to apply for the card? 21 years 5. Is there is a minimum income requirement to apply for the card? There is no minimum income requirement. Both salaried & self-employed users can apply for these cards. However, due to high traffic, the applications have been restricted to a limited audience.
Reliance Industries the parent company of Reliance Retail has yesterday announced that the Public Investment Fund of Saudi Arabia is going to invest Rs.9555 Crores in Reliance Retail for 2.01% stakes. With this new investment, Reliance Retail is currently valued at 4.58 Lakh Crores.<!--more--> This investment will further strengthen PIF’s presence in India’s dynamic economy and promising retail market segment. The investment in RRVL follows PIF’s earlier acquisition of a 2.32% stake in Jio Platforms, the digital services subsidiary of Reliance Industries. PIF manages a $350 billion fund and has already invested in the companies such as Tesla, Uber, Disney, Softbank Vision Fund, Blackstone etc. With this latest investment of PIF, Reliance Retail to date has raised ~47000 Crores and JIO has raised ~1.5 Lakh Crores. So, in total Reliance Industries has raised ~2 Lakh Crores of FDI. <strong>How big this FDI is?</strong> In 2019-20, India has received a ~50 Billion dollar or ~3.5 Lakh Crores of FDI. So, Reliance Industries alone in the first 8 months of FY20-21 has got 58% of last year's FDI. More FDI means more dollar will come to India and when we sell dollar in the currency market to convert into rupee, the demand for rupee appreciates. This will strengthen the rupee. This is good for imports but bad for exports. If you see the chart of dollar and rupee, you will find that this year, the dollar has made a peak of 77.38 in April and now at 74.36. So It has declined ~4% in the last 8 months. Thanks to the mota Bhai FDI raising spree which is helping the economy. <a href="https://unlistedzone.com/storage/knowledge-logo/b6cabaf4-675e-43f5-bee1-53dda6c67d8e.pdf">link</a>
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