Analysis, guides and explainers on India's unlisted market — from IPO pipelines to ESOP liquidity.
As per the news published in ET, the RBI has directed to payment gateways aggregators such as<strong> Paytm</strong> and <strong>RazorPay,</strong> to comply with the regulation of Payment and Settlement Systems Act (2007). Under this act, the following is needed to comply. <strong>a)</strong> The minimum Net-Worth of Payment gateway to be 15 Cr. <strong>b)</strong> Strict Governance, Operational, and Fit and Proper norms for the board of directors, similar to what we see in Banks. <strong>c)</strong> Mandatory compliance on technology and cyber-security requirements at par with standards for the regulated financial institution. The above compliances will increase operational overheads for these companies. The sector is already working on very small margins, so for smaller companies the business would become difficult. As per market statistics, there are close to 65-70 payment aggregators working in our country. With these guidelines in place, the bigger companies such as <strong>Paytm</strong> and <strong>RazorPay</strong> will benefit as competition will reduce from smaller companies. Interested folks can buy <strong>Paytm Unlisted shares</strong> at our website.
<strong>Under this article, we will discuss the business profile of Inkel Limited, a Govt. of Kerala entity.</strong> (i) As on 31.03.2019, the Inkel Limited has following projects under their kitty. Over the next 30 months, these projects are expected to generate a revenue of around Rs.80 Crores, after accounting for the receipts so far. <table width="377"> <tbody> <tr> <td style="text-align: center;" width="291"><strong>Project Description Project Cost</strong></td> <td style="text-align: center;" width="87"><strong>(Rs. in crore)</strong></td> </tr> <tr> <td style="text-align: center;" width="291">Healthcare Institutions</td> <td style="text-align: center;" width="87">2587.57</td> </tr> <tr> <td style="text-align: center;" width="291">Treasury Infrastructure – 55 locations</td> <td style="text-align: center;" width="87">150</td> </tr> <tr> <td style="text-align: center;" width="291">KINFRA Defence Park, Ottappalam</td> <td style="text-align: center;" width="87">120</td> </tr> <tr> <td style="text-align: center;" width="291">Alappuzha Mobility Hub</td> <td style="text-align: center;" width="87">493.06</td> </tr> <tr> <td style="text-align: center;" width="291">Muzris Heritage Projects – Phase 1 & 2</td> <td style="text-align: center;" width="87">36.17</td> </tr> <tr> <td style="text-align: center;" width="291">Alleppey Heritage – Tourism projects</td> <td style="text-align: center;" width="87">60.06</td> </tr> <tr> <td style="text-align: center;" width="291">CREST Institute, Kozhikode</td> <td style="text-align: center;" width="87">16</td> </tr> <tr> <td style="text-align: center;" width="291">KSIDC Life Science Park, Trivandrum</td> <td style="text-align: center;" width="87">11.36</td> </tr> <tr> <td style="text-align: center;" width="291"><strong>Total</strong></td> <td style="text-align: center;" width="87"><strong>3474.22</strong></td> </tr> </tbody> </table> <strong>(ii) In renewable energy business,</strong> the year saw the company making a strategic shift from the solar street light business to setting up Solar power generation plants. Though, the solar division reported a decline in revenues, the company has been able to complete some quality projects, aggregating 2 MW of solar power generation capacity. <strong>(iii)</strong> During the FY18-19, the Company has been appointed by Department of General Education, Govt of Kerala as the PMC for Infrastructure upgradation of 239 schools across the state. The estimated project cost is Rs 699 crores, with a potential fee income of Rs 24 cr. The entire project is planned to be completed within 18-24 months. <strong>(iv)</strong> The company has bagged an EPC tender from KSEB for setting up 8 MW of ground mounted solar plant at three locations–Brahmapuram, Agali and Nenmara. The total estimated cost is Rs 45 crores, to be commissioned in the Fy19-20. <strong>(v) Business Parks -Angamali & Malappuram</strong> Built-up space at Angamali Tower II is almost fully leased out. The Company is encouraging small and medium entrepreneurs to lease small parcels of land, which have received good response. During FY18-10, 5.91 acres have been allotted to entrepreneurs at Malappuram who are in the process of setting up new ventures in the allotted land. 99% of the land that are suitable for industrial usage have been leased out to more than 51 units. <strong>(vi) Road Project</strong> The successful commissioning of 58 km State Highway project for RICK Ltd under Hybrid Annuity (in Kottayam and Thiruvananthapuram districts) have given the company, the confidence to explore opportunities for taking up large projects. During FY18-19, the Company concluded an agreement with M/s KMC Constructions Ltd, Hyderabad for investment in Calicut Expressway Private Ltd (CEPL), a special purpose vehicle established to undertake the six-laning of 28 km Kozhikode bye-pass under NHAI’s Hybrid Annuity Model. As per the agreement, the Company’s 100% subsidiary IIDPL would hold 49% of the shares of CEPL which is developing the project, subject to approval by the National Highway Authority of India (NHAI). The balance shares of this SPV will come under the control of INKEL, after the mandatory lock-in period of 4 years, comprising 2 years for construction and 2 years for operations . The project cost of Rs 1669 crore is to be met through a mix of NHAI Grant, Debt and Equity. The investment with profits will be returned to the Company in the form of half yearly annuity for the operations period of 15 years. <strong>So, basically Inkel Limited takes Govt. projects, finish them up, and finally gets their commission. The business model which is very similar to NBCC, though it is only doing the real state business, on the other hand, Inkel Limited has a diversified business.</strong>
As per source from ET, the Bira Beer is planning to launch 40-50 limited beer options in the next one year. They are planning to launch one new beer every week from its newest brewery in Mysore. Bira will be completing its five-year journey in 2020. The plan of the company is to have feedback of customers after every release so that as per demand more production of the popular beer can be done. For all this to happen successfully, Bira will rely on its team of brewmasters stationed at each of its four breweries to come up with the new limited release beers. The company’s team of 24 brewers, along with a similarly sized quality assurance team will drive the ambitious program that the company’s release cycle hinges on. The company in the last 1-2 years has doubled its market share riding on the capacity which has grown from 4-5 million cases to 20 million cases. We at UnlistedZone feel that, if this model of bringing new beer very weekend gets a good response from customers, the Bira will definitely take a big stride in the Indian liquor market in the coming years and profitability at the bottom line will follow soon.
Tamilnad Mercantile Bank has sent the notice to its shareholders for the Annual General Meeting <strong>(AGM),</strong> and the final decision on all the points which will be discussed in the AGM will be made public on 09.04.2020. <span style="font-size: 14pt;"><strong>We will list the most important points to be discussed in the AGM.</strong></span> <strong>1.</strong> Reduction of the Authorized Share Capital from 500 Cr at FV=10, to 280 Cr at FV=10. It implies that TMB is reducing its total authorized shares from 50 Cr to 28 Cr, by canceling 22 Cr shares. The <b>reduction</b> of <b>capital</b> is done for numerous reasons, including increasing shareholder value and producing a more efficient <b>capital</b> structure. <strong>2. </strong> The bank is planning to issue 1,58,40,000 Equity Shares via <strong>IPO</strong>( Initial Public Offering ) and 71,25,570 Equity shares via OFS( Offered for Sale ). <strong>3</strong>. The company may issue Pre-IPO shares to investors before IPO. However, the IPO size will not exceed 1,58,40,000. <strong>4</strong>. Once it is approved, the company will file DRHP soon. <span style="font-size: 14pt;"><strong>UnlistedZone Take:</strong></span> From the above extract, it is clear that TMB bank's management is looking to come up with an IPO soon, however, the question is at what value the IPO will come? <span style="font-size: 14pt;"><strong>Small Stats of TMB bank as on 31.12.2019:</strong></span> <strong>(i)</strong> Total Business= 62,544 Cr <strong>(ii)</strong> Total Deposit = 35,174 Cr <strong>(iii)</strong> Total Advances = 27,369 Cr <strong>(iv)</strong> Net-Profit(9M)= 243 Cr <strong>(v)</strong> Net-NPA = 2.13% <strong>(vi)</strong> Book Value = 267 As of 31.12.2019, the TMB has a book value of 267. So, if you give a book value multiple of 2-2.5x, the IPO price could be in the range of 520 to 667. However, given the poor condition of the economy and market, it would be a million-dollar question, the value merchant bankers give to the bank in IPO. <span style="text-decoration: underline;"><span style="font-size: 14pt;"><a href="https://unlistedzone.com/storage/knowledge-logo/AGM-Notice.pdf"><strong>Extract of AGM</strong></a></span></span>
As per Bombay Stock exchange filing, <strong>Reliance Retail Ventures Limited</strong>, a subsidiary of Reliance Industry, and having ~99% stakes in <strong>Reliance Retail</strong>, has acquired 7,86,191 equity shares representing 100% of the equity share capital of Shri Kannan Departmental Store Private Limited (SKDS) for a consideration of INR 152.5 crores. <strong>SKDS,</strong> incorporated on September 15, 1999, is engaged in the business of retailing fruits & vegetables, dairy, staples, home & personal care and general merchandise to consumers. <strong>SKDS</strong> currently operates 29 stores across Coimbatore and nearby areas with a retail area of over 6 lakh sq. ft. <strong>SKDS</strong> reported revenue from operations of INR 415 crore, INR 450 crore and INR 481 crore and Net Profit of INR 2 crore, INR 3 crore and INR 4 crore in FY2018-19, FY2017-18 and FY2016-17 respectively. The aforesaid investment will further strengthen the group’s retail operations and presence in the state of Tamil Nadu and will further enable retail and new commerce initiatives. <strong>Positive for Reliance Retail share, as they are getting a company that is generating an annual revenue of Rs. 450 Cr at just Rs. 152 cr.</strong>
<span style="font-size: 12pt;"><strong>As per the news published in the ET today, Paytm subsidiary Paytm Insurance Broking has secured a brokerage license from sector regulator IRDAI</strong>.</span> <span style="font-size: 12pt;">They are looking to offer insurance products across Auto, Health, and Life.</span> <span style="font-size: 12pt;">The wholly-owned subsidiary of Paytm has tied up with 20 insurance firms to sell insurance products. It has surrendered its corporate agency license and applied for Brokerage license recently. As corporate license allows to sell for a specific company and not allows to sell for all available pool of Insurance companies.</span> <span style="font-size: 12pt;">Paytm Insurance is going to give millions of our users the option of buying bite-sized insurance products at a competitive price, said Amit Nayyar, President- Paytm. The company is in the process of shortlisting merchant partners who would be trained to become Point of Sales Persons (PoSP). The company plans to rope in 2 lakh such PoSPs this year.</span> <span style="font-size: 12pt;">We at <a href="http://www.unlistedzone.com">UnlistedZone</a> feel that this is a good step by the company as the insurance business will boost company revenue and with 15 cr customer base, the selling of product won't be difficult.</span>
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Yesterday, the news was published in the Economic Times, wherein Mukesh Ambani's Reliance Retail has been tagged among the 50 fastest growing retail company globally, by Deloitte's Global Powers of Retailing 2020 index, between FY 2013-2018. Walmart is the top leader among all the retail companies. <span style="font-size: 1rem; line-height: 1.66;"> </span> <section id="fullPage" class="temp1"><section id="mainPage" class="articlePage"><article class="articleData"> <div class="artText"> Deloitte ranked 250 firms globally in its annual report based on their revenues for FY2018. The Reliance Retail major secured the 56th spot this year against the 94th rank the previous year. </div> <div></div> <div class="artText"><section id="fullPage" class="temp1"><section id="mainPage" class="articlePage"><article class="articleData"> <div> <div class="artText"> Factors that enabled the company to achieve top spot were a strong focus on boosting e-commerce growth through its website <strong>Ajio.com</strong>; a push for sales of smartphones and other consumer electronics online; an aggressive pricing strategy across its offline stores; the acquisition of Hamleys, UK-based toy retailer; and new store openings," the report said. </div> </div> </article></section></section>The Reliance Retail in the year 2019 also becomes India's first retail company to cross the revenue of more than <strong>1 Lakh Crores</strong>. Currently, they have more than 10,000 stores and command a rough Mcap of ~ 4 Lakh Crores. This roughly translates into a valuation of 40 cr per store. On the other hand, Dmart the listed entity is having Mcap of 1.5 Lakh Crores with only 200 stores. This roughly translates into a valuation of 750 Cr per store, which is beyond imagination. </div> </article></section></section>Going forward, the Reliance is focussing on Retail and JIO business to steam up the gas in the future. So, if anyone is looking to buy Reliance Retail shares, may visit <span style="text-decoration: underline;"><strong><a href="https://unlistedzone.com/shares/reliance-retail-limited-unlisted-shares/">www.unlistedzone.com</a></strong></span>, India's fastest growing start-up in unlisted space.
<strong>Religare Health Insurance</strong> is going to conduct <strong>Extra-Ordinary General Meeting</strong> on Friday, March 13, 2020 at 10.00 am at Vipul Tech Square, Tower C, 3rd Floor, Sector-43, Golf Course Road, Gurugram- 122009 to transact the following businesses: <strong>a)</strong> To approve the issue of private placement/preferential allotment of equity shares to M/s Trishikhar ventures LLP. <strong>b)</strong> To approve private placement allotment of equity shares to a few existing shareholders. <strong>c)</strong> To approve the re-appointment of Mr. Anil Gulati as a managing director & ceo <strong>d)</strong> To approve amendment no. 3 to Religare Health Insurance CEO stock option scheme 2014. <strong>e)</strong> To Change the Name Of The Company <span style="text-decoration: underline; font-size: 14pt;"><strong><a href="https://d2un9pqbzgw43g.cloudfront.net/main/NoticefortheExtrardinary_1582031918.pdf">EGM Notice</a></strong></span>
<span style="font-size: 12pt;">Barbeque Nation has filed for IPO on 17.02.2020 with SEBI. It is one of India's leading casual dining restaurant chains according to the Technopak Report. It is promoted by SHKSL which owns 45.09% shares in the company.</span> <span style="font-size: 12pt;">SHKSL was incorporated as Sayaji Housekeeping Services Limited on March 16, 2016 at Bengaluru. SHKSL is engaged in the business of providing services and expertise for various cleaning and housekeeping requirements as per the needs of facilities, organizations and/or business houses in India or elsewhere, and carries on the business of providing, inter alia, manpower, machines, and material connected with housekeeping and cleaning requirements.</span> <span style="font-size: 12pt;">SHKSL is promoted by Sayaji Hotel Limited, which is a listed company.</span> <span style="font-size: 12pt;">The first Barbeque Nation Restaurant was launched in 2006 by SHL, one of the promoters. They launched the first Barbeque Nation Restaurant in 2008, and subsequently acquired five Barbeque Nation Restaurants owned by SHL in 2012. They have steadily grown owned and operated Barbeque Nation Restaurant network from a single restaurant in Fiscal 2008 to 138 Barbeque Nation Restaurants in 73 cities in India and seven International Barbeque Nation Restaurants in three countries outside India as of November 30, 2019.</span> <span style="font-size: 12pt;">The Company was ranked 13th among best companies to work for in India across all categories by Economic Times “Great Places to Work” survey for 2019 conducted by Great Places to Work Institute.</span> <span style="font-size: 12pt;">For buying and more information of pre-IPO shares of Barbeque nation, please <span style="text-decoration: underline;"><strong><a href="https://unlistedzone.com/shares/buy-sell-barbeque-nation-unlisted-shares-price-today/">click here.</a></strong></span></span>
As per RBI regulation; <em><strong>The Promoters of the Bank are required to maintain a minimum of 26% of the total paid-up share capital of the Bank at all times. As part of the licensing conditions of RBI, the Bank is required to list its Equity Shares by end of year 2020. In view of the impending increase in the paid-up share capital of the Bank and the corresponding requirement of maintaining 26% at all times by the Promoters, the Promoters are required to bring in additional capital.</strong></em> So, Suryoday Small Finance Bank, has decided to issue, offer and allot on a preferential basis up to 50,00,000 ( Fifty Lakhs) equity shares of Rs. 10/- (Rupees Ten) each for cash at a price of Rs. 180 (Rupees One hundred and Eighty only) per share inclusive of a premium of Rs. 170/- (Rupees One hundred and Seventy only ) per share to the Promoters of the Bank as given hereinbelow. <table width="493"> <tbody> <tr> <td style="text-align: center;" width="64"><strong>Sr No.</strong></td> <td style="text-align: center;" width="230"><strong>Name of the Proposed Allottee</strong></td> <td style="text-align: center;" width="199"><strong>Maximum Number of shares proposed to be allotted</strong></td> </tr> <tr> <td style="text-align: center;">1</td> <td style="text-align: center;">Mr. Baskar Babu Ramachandran</td> <td style="text-align: center;">48,15,000</td> </tr> <tr> <td style="text-align: center;">2</td> <td style="text-align: center;">Mr. P S Jagdish</td> <td style="text-align: center;">1,00,000</td> </tr> <tr> <td style="text-align: center;">3</td> <td style="text-align: center;">Mr. G V Alankara</td> <td style="text-align: center;">85,000</td> </tr> </tbody> </table> <span style="text-decoration: underline; font-size: 14pt;"><strong><a href="https://unlistedzone.com/storage/knowledge-logo/SMFL_NOTICE_OF_EGM_FINAL.pdf">Link of the notification</a></strong></span>
<p><em><strong>As per the news published in ET</strong></em>, the market regulator has asked the National Stock Exchange (NSE) to divest its complete stake in its associate company Computer Age Management Systems (CAMS). It implies that NSE will have to sell the entire 1.8 crore shares it currently owns in CAMS.<br /><br />Currently, the CAMS is valued around Rs 6,000 crore implying that NSE’s stake could be valued around Rs 2,000-2,200 crore. Moreover, the CAMS is also looking for IPO wherein existing investors are looking to sell their stakes. So creating this much demand IPO and NSE stake sale may have an impact on the price of CAMS share. <br /><br />CAMS is the largest share registrar and transfer agent in the Indian markets with a market share of more than 60 percent in several segments. The company is promoted by global private equity fund Warburg Pincus and has several marquee institutions, including HDFC Bank and Faering Capital, as shareholders. Securities and Exchange Board of India has observed that NSE failed to obtain prior regulatory approval while buying a stake in CAMS during FY13-14 and hence the investment is in violation of the rules for market intermediary institutions (MIIs).</p>
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