Analysis, guides and explainers on India's unlisted market — from IPO pipelines to ESOP liquidity.
<span style="font-size: 12pt;">As per filing to the exchanges on 07.02.2020, Religare Enterprise Limited, the promoter of Religare Health Insurance, has entered into the definitive agreements on February 06, 2020, with <strong>M/s. Kedaara Capital Fund II LLP</strong> and <strong>M/s. Trishikhar Ventures LLP</strong> (jointly referred to as ‘Kedaara’ ) for;</span> <span style="font-size: 12pt;"><strong>a)</strong> Sale of part of the investment in Religare Health Insurance Company Limited (‘RHICL’), a subsidiary company for a consideration aggregating to Rs 200 crores, and</span> <span style="font-size: 12pt;"><strong>b)</strong> Primary capital infusion of Rs 200 crores in RHICL by Kedaara.</span> <span style="font-size: 12pt;">This is good news for the shareholders of <strong>Religare Health Insurance</strong> that Kedaara group entity, Trishikhar Ventures LLP, a leading private equity investment firm is investing in its health insurance subsidiary - Religare Health Insurance Company Limited (“RHICL”).</span> <span style="font-size: 12pt;"><strong>Commenting on the transaction, Mr. Anuj Gulati, MD & CEO, Religare Health Insurance, said - </strong>“This transaction will enable us to increase our investment in technology, distribution and service capability. I would like to convey my sincerest appreciation to our current shareholders, the board of directors, customers, distribution partners and employees for reposing their faith in us over the years. I also warmly welcome our incoming shareholders and thank them for the belief that they have vested in us. We remain committed to building an institution that will be relevant beyond 100 years.”</span> <span style="font-size: 12pt;">Pursuant to the above transactions, the Company would have divested part of its investment constituting 6.761% of RHICL. Post consummation of the transaction, the Company will hold a 76.18% stake in RHICL.</span> <span style="font-size: 12pt;">This deal will support the growth of the health insurance business and will enable REL to become debt free after the completion of this transaction and the divestment of its lending business to the TCG Group. This will, in turn, help the company to emerge as a strong financial services company.</span> <span style="font-size: 12pt;"><strong>The deal will need approval from IRDA, as well.</strong></span>
<span style="font-size: 12pt;">Motilal Oswal Financials Services( Holding Company ) has come up with Q3 numbers for the FY19-20 and the same has been informed to the exchanges on 22.01.2020. The board has also declared a dividend of Rs.4 for FY19-20.</span><!--more--> <span style="font-size: 12pt;"><strong>A)</strong> Motilal Oswal Financials Services( Holding Company ) provides the following services through its subsidiaries:</span> <span style="font-size: 12pt;"><strong>1.</strong> Broking Services</span> <span style="font-size: 12pt;"><strong>2</strong>. Asset Management and Advisory Services</span> <span style="font-size: 12pt;"><strong>3</strong>. Fund based Services</span> <span style="font-size: 12pt;"><strong>4</strong>. Investment Banking</span> <span style="font-size: 12pt;"><strong>5</strong>. Home Finance.( Motilal Oswal Home Finance Unlisted Share)</span> <span style="font-size: 12pt;"><strong>Results Analysis</strong>( Consolidated)</span> <span style="font-size: 12pt;"><strong>(i)</strong> Consolidated revenues stood at Rs 644 Crores, +3.2% YoY in Q3FY20.</span> <span style="font-size: 12pt;"><strong>(ii)</strong> Consolidated PAT was at Rs 168 Crores in Q3FY20 vs Rs 35 Crores in last year the same period.</span> <span style="font-size: 12pt;"><strong>(iii)</strong> Consolidated revenues for 9MFY20 were at Rs. 1873Crores, +.4% YoY and consolidated PAT for 9MFY20 was at Rs 442 Crores, +213% YoY.</span> <span style="font-size: 12pt;"><b>(iv) </b><strong>Some of the key highlights for the 9MFY20 include;</strong></span> <span style="font-size: 12pt;"><strong>a)</strong> 7% YoY growth in AMC AUM.</span> <span style="font-size: 12pt;"><strong>b)</strong> 8% YoY growth in PE & RE AUM.</span> <span style="font-size: 12pt;"><strong>c)</strong> 15% YoY growth in Wealth AUM.</span> <span style="font-size: 12pt;"><strong>d)</strong> 16% YoY growth in Distribution business AUM.</span> <span style="font-size: 12pt;"><strong>e)</strong> Positive net flows in MF for consecutive quarters amid moderate industry flows, Accelerated pace of new client addition in the broking business.</span> <span style="font-size: 12pt;"><strong>f)</strong> Rating upgrade from CRISIL for MOH FL to AA- (Stable) from A+ earlier and MOHFL's NPA pool sale to ARC.</span> <span style="font-size: 12pt;"><strong>B)</strong> The Motilal Oswal Financial Services holds 97.94% shares in the Home Finance company( <strong>Motilal Oswal Home Finance</strong>).</span> <span style="font-size: 12pt;">Let us check how <strong>Home Finance</strong> is doing the business and how well it has performed this quarter?</span> <span style="font-size: 12pt;"><strong>(i)</strong> Motilal Oswal Home Finance (MOH FL) reported a profit of Rs 21.4 Crores in 9MFY20 and Rs 16.1 in Q3FY20.</span> <span style="font-size: 12pt;"><strong>(ii)</strong> Margins have improved to 5.2% in 9MFY20, on account of improvement in yield and lower cost of funds.</span> <span style="font-size: 12pt;"><strong>(iii)</strong> The loan book stood at <strong>Rs 3800 Crores as of 9MFY20</strong>. Disbursements in 9MFY20 were Rs 146 Crores, new book sourced from April'18 validates the new credit policy with 11 cases in NPA out of-4500 loan cases.</span> <span style="font-size: 12pt;"><strong>(iv)</strong> CRISIL has upgraded MOHFL's rating to AA- (stable outlook) from earlier A+ (stable). This will further benefit MOH FL in bringing down the cost of funds and improve spreads.</span> <span style="font-size: 12pt;"><strong>(v) </strong>Strong support from parents continues with total capital infusion to Rs 850 Crores.</span> <span style="font-size: 12pt;"><strong>UnlistedZone Take</strong></span> <span style="font-size: 12pt;">Overall, we can say the Home finance business is doing really good and started showing a sign of marked improvement in loan disbursement and profitability. The more detailed about Book Value and other valuation parameters are not generally available in quarterly results, however, the same will be studied and shared once the annual results or annual report is filed.</span>
NCL Alltek & Seccolor has changed its name to NCL Buildtek to reflect its range of building materials including windows, doors, putties, paints and building blocks to tiling solutions. K. Madhu(<strong> in the below pic</strong>), Managing Director, NCL Builtek said that the new identity is designed to help clients visualize a one-stop solution for all their building material needs. “As NCL manufactures the widest range of building materials, NCL Buildtek will more accurately reflect the present, and ever-expanding building material offerings, while maintaining their current image of providing top-quality products and accompanying services,” he further added. <figure id="attachment_35080" class="wp-caption alignleft" aria-describedby="caption-attachment-35080"><img class="wp-image-35080 size-medium" src="https://wfmmedia.com/wp-content/uploads/2020/01/NCL-300x217.jpg" sizes="(max-width: 300px) 100vw, 300px" srcset="https://wfmmedia.com/wp-content/uploads/2020/01/NCL-300x217.jpg 300w, https://wfmmedia.com/wp-content/uploads/2020/01/NCL.jpg 500w" alt="K. Madhu Managing Director NCL Buildtek" width="300" height="217" /><figcaption id="caption-attachment-35080" class="wp-caption-text"></figcaption></figure> The re-brand and name change have been designed to align all business verticals – Walls, Coatings, Windoors & Services, under one recognizable brand name – NCL, across the nation. <em><strong>NCL Builtek is planning to set up a steel door unit in Sangareddy district, with an investment of over INR 10 crore.</strong></em> <em><strong>The company is also setting up an AAC (autoclaved aerated concrete) block manufacturing unit in Nellore with the investment of INR 80 crore</strong></em>. It will be the biggest investment from the company to date and will be the second such but larger facility of the company. The Nellore plant can produce about 5 lakh cubic meters of AAC blocks per year, while the capacity of the first plant near Vijayawada is about 2.2 lakh cubic meters. As the company concluded the rebranding of their current products Alltek, Seccolor with NCL, the existing products and all subsequent new products, will bear the new NCL Buildtek Ltd name as the trade name. The company has also moved its head office to NCL Pearl, Secunderabad.
HDFC ERGO Health erstwhile Apollo Munich Health Insurance will merge with HDFC ERGO through a share swap deal. The board of director of HDFC ERGO and HDFC ERGO Health at its meeting on January 15, approved a scheme of arrangement and amalgamation between the two entities, HDFC Ltd said in a regulatory filing. The scheme envisages amalgamation and will lead to the dissolution of HDFC Ergo Health without winding up, it said. <em><strong>"The board of directors of HDFC ERGO and HDFC ERGO Health at the meeting also approved the share exchange ratio of 100:385 that is for every 385 shares of Rs 10 each of held in HDFC ERGO Health as on the record date, 100 shares of Rs 10 each of HDFC ERGO would be allocated," the company said in the filing.</strong></em> Post completion of the said merger, HDFC Limited will hold a 50.58 percent stake in HDFC ERGO, it said. Earlier this month, HDFC ERGO got regulatory approvals for acquiring a majority shareholding in Apollo Munich Health Insurance Co Ltd. <span style="font-size: 14pt;"><strong>Source: Business Standard</strong></span>
<p><strong>(i)</strong> HDB Financials is a non-deposit NBFC offering a wide range of loans and assets finance products to individuals, emerging businesses, and micro-enterprise. As of 31.12.2019, the <strong>HDFC Bank</strong> holds 95.3% stakes in HDB Financials.</p> <!--more--> <p><strong>(ii)</strong> HDFC Security is the leading retail broking firms in India with ~8 Lakh active clients and the second-biggest broker after Zerodha. As of 31.12.2019, the <strong>HDFC Bank</strong> holds 97.3% stakes in HDFC Security. Today, they have come up with Q3FY20 results of HDB Financials and HDFC Security, along with their promoter's HDFC Bank. Let us see how both Unlisted shares have performed? <br /><br /><span style="font-size: 14pt;"><strong>HDB Financials Unlisted Share:</strong></span> <br /><br />1. Total AUM as on 31.03.2019 was ~Rs. 55000 Crores which has increased to ~Rs. 59000 Crores in the first 9M of FY20. [ Positive Growth ] <br /><br />2. For the first 9M of FY20, the interest income grew by 22.2% to Rs. 3034 Crores as against Rs. 2483 in the first 9M of FY19. [ Positive Growth ] <br /><br />3. In the first 9MFY20, PAT stands at Rs.770 Crores as compared to Rs. 820 Crores in the previous 9M of FY19. [ Negative Growth ] <br /><br /><span style="font-size: 14pt;"><strong>HDFC Security Unlisted Share:</strong></span> <br /><br />1. For the first 9M of FY20, the total income was Rs. 584 Crores as against Rs. 565 Crores, in the first 9M of FY19. [ Positive Growth ] <br /><br />2. PAT for the nine months of FY20 was Rs. 250 Crores as against Rs. 223 Crores for the first 9M of FY19. [ Positive Growth ].</p>
Mohan Meakin, the maker of the popular brand of rum "Old Monk", has submitted its papers with the Metropolitan Stock Exchange (MSE) to re-list on the exchanges. "In the next two to three months, the procedures towards re-listing will be complete." The 163-year-old company looks to return to the capital markets 16 years after it had de-listed its equity shares from the Delhi and Calcutta stock exchanges. <div class="hide-moblie mid-arti-ad"> <div id="Moneycontrol_Mobile_WAP/MC_WAP_News/MC_WAP_News_Internal_OutStream"> The firm, which is the oldest liquor brewing company in India, had a paid-up capital of Rs 4.25 crore, reserve and reserves and surpluses of Rs 27.01 crore at the time of de-listing in 2003. In FY 2019, the company's net profit stood at Rs 33 crore and total debt was at Rs 11 crore as compared to about Rs 30 crore in the previous year. The company's net worth in FY 19 was at Rs 92 crore, higher than Rs 58 crore seen in the previous year. The company's "Old Monk" brand has seen a loyal customer base, and although the liquor business was impacted by a ban from a few state governments in the last few years, the consumption of liquor has increased significantly. In FY19, the alcohol segment grew 46 percent. Old Monk contributes nearly 80 percent of the total sales for Mohan Meakin and in FY19 the contribution from Old Monk itself would be approximately Rs 758.3 crore. <span style="font-size: 14pt;"><strong>Source: Moneycontrol.</strong></span> </div> </div>
As per the news published in livemint, the Govt. is planning to introduce a provision in the Company's Act 2013 to make unlisted companies give their financial results on a quarterly or Half-yearly basis, similar to listed companies, in place of yearly disclosure. Unlisted companies mostly provide annual financial data in the month of Oct or Nov. This means, the annual results ending in March, becomes available to investors via Ministry of Corporate Affairs, after 6 Months. <span style="font-size: 14pt;"><strong>UnlistedZone Take:</strong></span> <strong>1</strong>. All companies should not fall into this provision, as it will increase unnecessary compliance costs of filling & auditing of financials data, etc, especially for smaller companies. So, turnover or PAT based criterion must be adopted to select which company has to comply with this provision and should not be applied to all in unison. <strong>2</strong>. This is a good step considering, today, we get to know about the financials of the companies once in a year. So, if this provision comes into the picture, then we can gauze company performance on a 3-Months or 6-Months basis, which will give more insight into the business of the company. <strong>3</strong>. Good for unlisted shares investors as they will come in par with listed companies shareholders, in terms of frequency of disclosures.
<strong>Hero-Fin Corp( HFCL )</strong> is looking to raise ~Rs.1000 Crores by a way of preferential allotment through a private placement at Rs.820 per share to following investors. The company is issuing total 1,31,09,753 Equity shares.<!--more--> <strong>(i)</strong> Hero MotoCorp Limited = 53,99,319 Equity Shares <strong>(ii)</strong> Hero InvestCorp Private Limited = 1,46,342 Equity Shares <strong>(iii)</strong> Bahadur Chand Investments Private Limited = 26,82,927 Equity Shares <strong>(iv)</strong> RK Munjal and Sons Trust = 7,90,394 Equity Shares <strong>(v)</strong> Pawan Munjal Family Trust = 7,90,394 Equity Shares <strong>(vi)</strong> Survam Trust = 2,43,905 Equity Shares <strong>(vii)</strong> Otter Limited = 8,24,405 Equity Shares <strong>(viii)</strong> Link Investment Trust = 12,544 Equity Shares <strong>(ix)</strong> Credit Suisse (Singapore) Limited = 1,70,732 Equity Shares <strong>(x)</strong> APIS Growth II (HIBISCUS) PTE. LTD. = 20,48,781 Equity Shares The valuation report is prepared by CMA Rajendra Kumar Joshi and the date of valuation is 30.11.2019. HFCL is a Non-Banking Finance Company (“NBFC”) engaged in providing financial services in India. The Company was incorporated in 1991 and is based in New Delhi, India. Hero MotoCorp Limited (“HMCL”) holds 41.18% stake in HFCL. The Company provides two-wheeler financing and a bouquet of other financial products including used car financing, personal loan, inventory funding, loan against property, loans to Small and Medium Enterprises (“SMEs”) and emerging corporates. <span style="font-size: 14pt;"><strong>UnlistedZone Take:</strong></span> The company has shown tremendous growth in the last 5 years. In 2015-16, the company had revenue of Rs.772 Crores which has reached Rs.2492 Crores in FY18-19. More detail can be accessed at<span style="text-decoration: underline; font-size: 14pt;"> <strong><a href="https://unlistedzone.com/shares/hero-fincorp-limited-share-price-buy-sell-unlisted-shares-of-hero-fincorp/">Link</a></strong></span> Price to Book multiple is the tool to gauze the valuation of financial companies. <strong>Let us see how Hero-Fin Corp fairs up?</strong> Book Value ( FY18-19 ) = 321 per share. On the basis of the book value and price of Rs.820 per share( <strong>as per valuation report</strong> ), the P/B stands at 2.55x. We are expecting the P/B of 350 in FY19-20, on that basis, the P/B stands at 2.34x. The stock currently is available in the unlisted market at Rs. 1025 per share. So on that basis, in the unlisted market, the share is available at P/B multiple of 3.19x, which is fair considering the growth shown by the company.
<strong>Below is the management commentary, as to how Bira has performed in the year 2018-19. The transcript is extracted from the annual filing, which is looking promising as far as growth and expansion are concerned.</strong> (i) During the Last One Year, Bira continued to grow significantly and maintained its position in the premium beer market going on to set up India’s largest dispense beer network in restaurants and bars across the country. <strong>(ii)</strong> The Company during the year has also expanded its sales operations in Nagpur and Indore by enhancing its existing production capacity to meet the demand of the consumers and to capture new markets. <strong>(iii)</strong> The Company expands its sales operations and makes its presence felt in Delhi, Haryana, Chandigarh, Uttar Pradesh, Rajasthan, Madhya Pradesh, Chhattisgarh, West Bengal, Telangana, Maharashtra, Goa, Andhra Pradesh, Karnataka and Puducherry and planning to add few more in coming years. Further, in addition to ongoing Breweries located at Indore, Mysore, and Nagpur, the Company is also planning to enhance its production by setting up new breweries in Telangana. <strong>(iv)</strong> The Company focused on expanding its ability to service consumer wants – increasing its geographical presence globally as well by entering into the market of the United Kingdom (UK), Nepal, Singapore, Hong Kong, UAE and Bahrain in addition to the USA. <strong>(v)</strong> During the year, the Company has come up with a new Brand-named Boom and it has shown an early success for the Company within 8 weeks of its launch and crossed over 2,30,000 Cases in dispatch for the liquid. <strong>(vi)</strong> The Company during the year has come up with a major Partnership with International Cricket Council (“ICC”) and BIRA91 has become the official Sponsor for the ICC Global Tournaments including the ICC Cricket World Cup, ICC T20 World Cup, ICC World Test Championship, ICC Champions Trophy and ICC Women’s World Cup. The partnership will cover all aspects including pitch branding, branding on perimeter boards, broadcasting branding, exclusive pouring right across the stadium, hospitality opportunities, bar and screening activation. <strong>(vii)</strong> As an official partner, Bira 91 will integrate the partnership across broadcast and digital platforms, and in-venue activations at all ICC events through their range of products. The ICC partnership is a key moment for Bira 91 as it embark on creating the first global consumer brand to come out of India. <strong><span style="font-size: 14pt;">UnlistedZone View:</span></strong> The company has clocked a revenue of Rs.192 Crores in FY18-19, an increase of 20% from last year. The losses have almost doubled to Rs.200 crores as compared to Rs. 100 crores last year. Let us see why losses have doubled up. <span style="font-size: 14pt;"><strong>Expense:</strong></span> <strong>1</strong>. Employee benefits expense has gone up in from Rs.37 Crores in FY17-18 to Rs.45 Crores in FY18-19. <strong>2</strong>. Finance cost has doubled to 19 Crores in FY18-19 as compared to 8.3 Crores last year. <strong>3</strong>. Other expenses have gone up from 139 Crores in FY17-18 to 196 Crores in FY18-19. As the company is in the growth phase, the losses are bound to happen. The company is expecting a break-even in FY20-21, said Ankur Jain, owner of Bira Beer. <strong><span style="font-size: 14pt;">Bira Beer latest funding</span></strong> Recently, in Nov-19, the company has raised funding of Rs.20 Crores from Shinhan Neoplux Energy Newbiz Fund, Impulse International and two more individuals, valuing the company at Rs.2400 Crores.<span style="font-size: 14pt;"><strong> </strong></span>
<span style="font-size: 12pt;">We all must have heard the names of Indian start-ups like <strong>OLA</strong>, <strong>Swiggy</strong>, <strong>Zomato</strong>, <strong>Paytm</strong>, <strong>Byjus</strong>. The millennial must have booked a ride with OLA, ordered food from Swiggy or Zomato, paid utility bills with Paytm or have enrolled with Byjus for learning various subjects. But, d</span><span style="font-size: 12pt;">o we know, when these start-ups were formed, how much revenue they are clocking, how much profit or loss these companies are making, or what is the valuation of these companies? or a</span><span style="font-size: 12pt;">re these companies have achieved the status of Unicorn? Well, let us first understand the meaning of the word, Unicorn. </span> <span style="font-size: 12pt;">" <em><strong><span style="text-decoration: underline;">A</span> unicorn is a privately held startup company valued at over $1 billion. The term was coined in 2013 by venture capitalist Aileen Lee, choosing the mythical animal to represent the statistical rarity of such successful ventures</strong></em>"</span> <span style="font-size: 12pt;">Below is the information collected from various sources regarding Indian unicorns performances and valuations.</span> <table style="width: 100.864%;" width="1053"> <tbody> <tr> <td style="text-align: center; width: 12.5201%;" width="145"><span style="font-size: 14pt;"><strong>Company</strong></span></td> <td style="text-align: center; width: 10.8994%;" width="140"><span style="font-size: 14pt;"><strong>Year </strong></span></td> <td style="text-align: center; width: 11.8679%;" width="133"><span style="font-size: 14pt;"><strong>Revenue(Cr)</strong></span></td> <td style="text-align: center; width: 11.8594%;" width="162"><span style="font-size: 14pt;"><strong>P&L(Cr)</strong></span></td> <td style="text-align: center; width: 15.0782%;" width="184"><span style="font-size: 14pt;"><strong>Valuation</strong></span></td> <td style="text-align: center; width: 24.5849%;" width="192"><span style="font-size: 14pt;"><strong>Founder</strong></span></td> </tr> <tr> <td style="text-align: center; width: 12.5201%;"><span style="font-size: 14pt;"><strong>OLA</strong></span></td> <td style="text-align: center; width: 10.8994%;"><span style="font-size: 14pt;">2010</span></td> <td style="text-align: center; width: 11.8679%;"><span style="font-size: 14pt;">2542</span></td> <td style="text-align: center; width: 11.8594%;"><span style="font-size: 14pt;">(2592)</span></td> <td style="text-align: center; width: 15.0782%;"><span style="font-size: 14pt;">$6 Billion</span></td> <td style="text-align: center; width: 24.5849%;"><span style="font-size: 14pt;">Bhavish Aggarwal</span></td> </tr> <tr> <td style="text-align: center; width: 12.5201%;"><span style="font-size: 14pt;"><strong>Zomato</strong></span></td> <td style="text-align: center; width: 10.8994%;"><span style="font-size: 14pt;">2008</span></td> <td style="text-align: center; width: 11.8679%;"><span style="font-size: 14pt;">1442</span></td> <td style="text-align: center; width: 11.8594%;"><span style="font-size: 14pt;">(2026)</span></td> <td style="text-align: center; width: 15.0782%;"><span style="font-size: 14pt;">$2 Billion</span></td> <td style="text-align: center; width: 24.5849%;" width="192"><span style="font-size: 14pt;"> Deepinder Goyal, and Pankaj Chaddah</span></td> </tr> <tr> <td style="text-align: center; width: 12.5201%;"><span style="font-size: 14pt;"><strong>Swiggy</strong></span></td> <td style="text-align: center; width: 10.8994%;"><span style="font-size: 14pt;">2014</span></td> <td style="text-align: center; width: 11.8679%;"><span style="font-size: 14pt;">1297</span></td> <td style="text-align: center; width: 11.8594%;"><span style="font-size: 14pt;">(2364)</span></td> <td style="text-align: center; width: 15.0782%;"><span style="font-size: 14pt;">$3.33 Billion</span></td> <td style="text-align: center; width: 24.5849%;" width="192"><span style="font-size: 14pt;"> Koramangala, Bengaluru's startup hub.</span></td> </tr> <tr> <td style="text-align: center; width: 12.5201%;"><span style="font-size: 14pt;"><strong>Paytm</strong></span></td> <td style="text-align: center; width: 10.8994%;"><span style="font-size: 14pt;">2010</span></td> <td style="text-align: center; width: 11.8679%;"><span style="font-size: 14pt;">3300</span></td> <td style="text-align: center; width: 11.8594%;"><span style="font-size: 14pt;"> (4000)</span></td> <td style="text-align: center; width: 15.0782%;"><span style="font-size: 14pt;">$16 Billion</span></td> <td style="text-align: center; width: 24.5849%;"><span style="font-size: 14pt;">Vijay Shekhar</span></td> </tr> <tr> <td style="text-align: center; width: 12.5201%;"><span style="font-size: 14pt;"><strong>Byjus</strong></span></td> <td style="text-align: center; width: 10.8994%;"><span style="font-size: 14pt;">2011</span></td> <td style="text-align: center; width: 11.8679%;"><span style="font-size: 14pt;">1430</span></td> <td style="text-align: center; width: 11.8594%;"><span style="font-size: 14pt;">20</span></td> <td style="text-align: center; width: 15.0782%;"><span style="font-size: 14pt;">&5 Billion</span></td> <td style="text-align: center; width: 24.5849%;" width="192"><span style="font-size: 14pt;"> Byju Raveendran</span></td> </tr> </tbody> </table> <span style="font-size: 12pt;"><strong>Note:</strong> Revenue and P&L shown above are for FY18-19.</span> <span style="font-size: 12pt;">From the above data, it is clear that Paytm is the most valued unicorn in India. Its valuation is whopping Rs. 1.14 Lakh Crores in the latest funding round completed in Nov 2019.</span> <span style="font-size: 12pt;">The Byju's is the only unicorn in India who has turned profitable and the rest all are making losses.</span> <span style="font-size: 12pt;">Zomato and Swiggy, are making ~2x losses in size with revenue. However, management is confident this year to reduce losses.</span> <span style="font-size: 12pt;">OLA is planning for IPO in the next 2 years, so they are trying different ways of reducing expenses and make it profitable.</span> <span style="font-size: 12pt;">The largest expense for all these unicorns is " <strong>Advertisements</strong>", as these companies are trying to capture market share by offering freebies. As per report, Swiggy and Zomato, make a loss of Rs.20-30 per order they serve. However, once these companies acquired substantial footfalls, getting good profits growth would not be an issue.</span> <span style="font-size: 12pt;">PE/Venture investors are now cautioned with the painful experience of Softbank with recent "We Work", the largest co-Office and Workstation sharing company in the world, where they lost close to $4 Billion dollars due to the fear of expensive valuation and no sign of profitability in near future and have given clear instructions to all companies where they have done investment to focus on profitability to avoid such incidents in the future.</span> The next 5-10 years will be challenging for these unicorns to make their mark in this world. Till now all are making a good fortune with huge investment flowing in. From here on, they need to work really hard and make the company profitable so that they can bring IPO and give investors a good return on their investments.
<!--more--> <table style="width: 100%;" width="979"> <tbody> <tr> <td style="text-align: center; width: 28.1034%;" width="215"><strong>Parameter(Crores)</strong></td> <td style="text-align: center; width: 16.5517%;" width="185"><strong>Capital SFB</strong></td> <td style="text-align: center; width: 20.8621%;" width="200"><strong>Suryodaya SFB</strong></td> <td style="text-align: center; width: 18.1034%;" width="200"><strong>Ujjivan SFB</strong></td> <td style="text-align: center; width: 16.2069%;" width="179"><strong>AU SFB</strong></td> </tr> <tr> <td style="text-align: center; width: 28.1034%;">Deposits</td> <td style="text-align: center; width: 16.5517%;">4107</td> <td style="text-align: center; width: 20.8621%;">1593</td> <td style="text-align: center; width: 18.1034%;">7379</td> <td style="text-align: center; width: 16.2069%;">19422</td> </tr> <tr style="font-weight: inherit;"> <td style="text-align: center; width: 28.1034%;">Net Advances</td> <td style="text-align: center; width: 16.5517%;">3041</td> <td style="text-align: center; width: 20.8621%;">2712</td> <td style="text-align: center; width: 18.1034%;">10552</td> <td style="text-align: center; width: 16.2069%;">22818</td> </tr> <tr style="font-weight: inherit;"> <td style="text-align: center; width: 28.1034%;">Net Interest Income (NII)</td> <td style="text-align: center; width: 16.5517%;">135</td> <td style="text-align: center; width: 20.8621%;">339</td> <td style="text-align: center; width: 18.1034%;">1106</td> <td style="text-align: center; width: 16.2069%;">1190</td> </tr> <tr style="font-weight: inherit;"> <td style="text-align: center; width: 28.1034%;">Net Profit /(Loss)</td> <td style="text-align: center; width: 16.5517%;">19.4</td> <td style="text-align: center; width: 20.8621%;">87</td> <td style="text-align: center; width: 18.1034%;">199.2</td> <td style="text-align: center; width: 16.2069%;">381</td> </tr> <tr style="font-weight: inherit;"> <td style="text-align: center; width: 28.1034%;">Book value per share</td> <td style="text-align: center; width: 16.5517%;">100</td> <td style="text-align: center; width: 20.8621%;">107</td> <td style="text-align: center; width: 18.1034%;">11.09</td> <td style="text-align: center; width: 16.2069%;">108.28</td> </tr> <tr> <td style="text-align: center; width: 28.1034%;">P/B</td> <td style="text-align: center; width: 16.5517%;">3.2x</td> <td style="text-align: center; width: 20.8621%;">3.17x</td> <td style="text-align: center; width: 18.1034%;">5.22x</td> <td style="text-align: center; width: 16.2069%;">7.6x</td> </tr> <tr> <td style="text-align: center; width: 28.1034%;">Net-worth</td> <td style="text-align: center; width: 16.5517%;">250</td> <td style="text-align: center; width: 20.8621%;">881</td> <td style="text-align: center; width: 18.1034%;">1819</td> <td style="text-align: center; width: 16.2069%;">3162</td> </tr> </tbody> </table> Above is the comparison between two unlisted SFBs i.e. Suryoday Small Finance Bank and Capital Small Finance Bank Vs two listed SFBs i.e. Ujjivan and AU Small Fin bank. If you observed carefully, listed SFBs are almost double in size in terms of <strong>advances</strong> i.e loan disbursed. The more the advances, the more will be the revenue of these banks. So they will obviously command high valuations. However, both the unlisted small finance banks have shown excellent growth in the last 3 years and are available at a good valuation. <strong>Capital Small Finance Bank</strong> is currently trading at Rs. 320 per share in the unlisted market and thereby, valuing at <strong>3.20x</strong> in terms of P/B which is fairly priced.
(i) Operating profit continued to grow in the first 6MFY20 and reached 7 crores from a loss of 12 Crores last year in the same period. (ii) Revenue growth of 72% in the first 6MFY20 against 6MFY19. <!--more--> (iii) Revenue of Q2FY20 stands at Rs. 167 Crores as compared to Rs.69 Crores in Q2FY19. (iv) 79% growth in CASA accounts from Sept ’18 - 12.32 lakhs as on 30th Sept ’19. Newly introduced subscription-based CASA products (“Shubh”) complemented transaction banking momentum. “Shubh” constituted 64% of a/c opened in Q2 with 95% debit card penetration. (v) A total number of partners (Cash management, BC banking & API) grew by 124% to 83. (vi) Fino Payments Bank has received the award for outstanding performance in digital payments for FY 18-19 from Meity. Ranked 1st in digital transaction scorecard for the month of June ’19 amongst all banks. Paytm is the main competitor in digital transactions. (vii) Best Emerging Payment Bank of the Year – ETBFSI Excellence Awards 2019. <span style="font-size: 14pt;">Outlook</span> The next 6MFY20 would be more positive with bank planning to add 50k+ banking outlet and aiming at better customer servicing & increase in income for banking outlets.
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