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<p>There are a lot of misconceptions and queries regarding <strong>Pre IPO shares</strong> in the market. Many investors are confused between Pre-IPO shares, Unlisted Shares, delisted shares, etc and many other related queries. So to unearth all these queries, today we are presenting a questionnaire to understand all of these in a better way.</p> <h4>1. What are Pre-IPO shares, Unlisted and De-listed Shares?</h4> <p><strong>(i) Pre IPO Shares</strong>: Every company needs funds to run the business. Funds are raised via debt or Equity. When funds are raised via Equity, the investors who are investing in the company want a good return of their investment. Let us suppose investors have invested Rs.500 Crores in the company. Now after 5 years they want to take exit and handover company shares to other investors. So accordingly, the company plans for IPO to give exit to these investors and generally such information comes in media. Before the launch of such IPOs, we at <strong>UnlistedZone</strong> arrange Pre-IPO shares to our investors. <br /><br /><strong>Benefits of <em>Pre IPO Shares</em>:</strong> These days, due to more awareness via social media/news-papers/news channels, IPOs receives a lot of attention and good IPOs are subscribed heavily. Therefore, getting a single lot in IPO is very difficult. <br /><br />Here, the <strong>Pre-IPO shares</strong> play a vital role. You can purchase these shares well below the IPO price before it actually launches on exchanges and gets the maximum benefit. The only lacuna in Pre-IPO shares is that there is a lock-in period of six months. It means you can’t sell stocks before six months from the date of listing. However, we at <strong>UnlistedZone</strong> consider that this should not be an issue because it is a well-known phenomenon that equity always rewards its investors who invest for a longer duration. <br /><br /><strong>Ex</strong>: Nazara Tech, Barbeque Nation, Studds, Chennai Super Kings, HDB, UTI AMC, Fino-Paytech, Suryoday Small Fin Bank, Utkarsh SFB, etc. <br /><br /><strong>(ii) Unlisted Shares:</strong> Unlisted shares simply mean which is not listed on National stock exchanges like NSE or BSE and they don’t have nearby plans for IPO. There are a lot of good companies in the unlisted space which gives a very good dividend to its investors. Such unlisted shares are good investment ideas. The liquidity is an issue in these unlisted shares but we at <strong>UnlistedZone</strong> act as a market maker to buy and sell good rated companies. <br /><br /><strong>Ex:</strong> Tata Technologies, Carrier Air Conditioning, etc. are such companies which are good dividend-paying unlisted companies and have not informed any IPO plans in the media. <br /><br /><strong>(iii) Delisted Shares:</strong> The shares are delisted from national stock exchanges like NSE or BSE and currently not trading. The reason could be anything from not adhering to disclosures as per exchanges requirement or management call to delist the company. <br /><br /><strong>Ex:</strong> Essar Oil gets delisted from exchanges in 2015 when it was acquired by the Russian company. Essar Steel and Electrosteel are an example of other such companies.</p> <h4>2. How is Pre-IPO shares priced?</h4> <p>Pre-IPO shares, much like their counterparts in the listed market, are priced based on the dynamics of demand and supply in the unlisted market. However, there is comparatively less research and analysis available for Pre-IPO shares. At UnlistedZone, we endeavor to comprehensively research and cover high-quality Pre-IPO shares, providing our investors with the necessary insights to make informed decisions. Additionally, we conduct valuations of these shares and compare them with similar entities in the listed market, offering a clear perspective on their market standing.</p> <h4>3. Can you sell Pre-IPO shares immediately?</h4> <p>No, the Pre-IPO shares have a lock-in period of six months. It means you can’t sell stocks before six months from the date of listing.<strong> </strong></p> <h4>4. How Pre-IPO shares are taxed?</h4> <p>The Pre-IPO shares are taxed as per STCG or LTCG. <br /><br /><strong>STCG (<2 Years): </strong>If you sell Pre-IPO shares before 2 years of buying, capital gain will be charged as per income tax slab. <br /><br /><strong>LTCG (>2 Years): </strong>If you sell Pre-IPO shares after 2 years of buying, a 20% tax with indexation benefit will be levied. In Pre-IPO shares, you don’t have to pay GST or STT (Security Transaction Tax).</p> <h4>5. How to buy Pre-IPO Shares, Unlisted Shares and Delisted Shares?</h4> <p>We at UnlistedZone provide the facility of buying Pre-IPO, unlisted and delisted shares. The link to buy these shares is mentioned below. <a href="https://unlistedzone.com/procedure-to-buy-and-sell-unlisted-shares-with-unlistedzone/">https://unlistedzone.com/procedure-to-buy-and-sell-unlisted-shares-with-unlistedzone/</a></p> <h4>6. What is the Client Master Copy?</h4> <p>In the unlisted market, Client Master Report (CMR) Copy is the most important document which is required to buy unlisted and Pre IPO shares. It contains DP ID, Client ID, PAN number, Bank Number, etc. This can be easily obtained by sending an email to the broker and the same is delivered within 2-3 hrs.</p> <h4>7. How to check the credit of Shares?</h4> <p>After 01.04.2019, SEBI has mandated that no physical shares can be sold. If somebody wants to sell its shares, then first, it must be converted into Demat form. So in the unlisted market, shares are always credited in Demat form only. The credit of shares can be checked by downloading the NSDL or CDSL app. <br /><br /><strong>How do you know which app to download: NSDL or CDSL?</strong> <br /><br />By carefully examining the number format of Demat Account we can easily identify whether the stock broker is registered with CDSL or NSDL. <br /><br /><strong>Demat Account</strong> = 16 Characters which has DP ID + Client ID. DP ID is the unique identification of the Broker. Every broker gets a unique number from CDSL or NSDL. Client ID is the unique identification of the Client. Every client gets this unique number which represents his/her portfolio. In CDSL, all these characters are numbers (1234567891234567). The first 8 digits are DP ID and the next 8 digits are Client Id whereas in NSDL the first two characters are letters which are in accordance with the country IN12345678912345), then 6 unique digits for broker and next 8 digits are client ID. <br /><br /><strong>CDSL</strong> = 12345678 (<strong>DP ID</strong>) and 91234567 (<strong>Client ID</strong>). <br /><br /><strong>NSDL</strong> = IN123456 (<strong>DP ID</strong>) and 78912345 (<strong>Client ID</strong>)</p>
<div class="tatsu-module tatsu-inline-text clearfix tatsu-ry72YOb0Kt "> <div class="tatsu-inline-text-inner "> <p>“As far as the Unlisted market is concerned, Paytm’s poor listing is the single biggest factor behind the fall in other Unlisted stocks” said <strong>Dinesh Gupta,Co- Founder UnlistedZone</strong>.</p> </div> </div> <div class="tatsu-animated-link tatsu-animated-link-style4 tatsu-SJEnKOWAFt tatsu-module tatsu-animated-link-align-none "><a class="tatsu-animated-link-inner " href="https://unlistedzone.com/storage/knowledge-logo/5_6120645962386899796.pdf" target="_blank" rel="noopener" aria-label="Read Full Article Here"><span class="tatsu-animated-link-text">Read Full Article Here</span></a></div>
<p>Amidst the ongoing IPO season, Capital Small Finance Bank is also planning to raise funds via primary market route. The small lender has filed a draft herring prospectus (DRHP) with capital markets regulator SEBI to float an initial public offering (IPO). The IPO consists of a fresh equity share issue worth Rs 450 crore, along with an offer for sale (OFS) of up to 3.84 million equity shares by existing shareholders and promoters. Investors participating in OFS include PI Ventures (3.37 lakh equity shares), Amicus Capital Private Equity I LLP (6.04 lakh equity shares) among others. Proceeds from the issue will be used to augment tier-I capital base to meet the future capital requirements of the lender. As of June 2021, its tier-I capital base was Rs 446 crore. Its capital to risk was 21.12%. Capital Small Finance Bank mainly focuses on the needs of the middle income segment, providing its products and services in that area of operations. The lender is backed by a number of financial behemoths and institutional investors including SIDBI, ICICI Prudential and HDFC Life among others. According to the details given in DRHP, Capital Small Finance Bank is present in four states of north India including Punjab, Haryana, Delhi and Rajasthan, with lender having 159 branches and 161 ATMs. <img class="alignnone wp-image-21682" src="https://unlistedzone.com/storage/knowledge-logo/Screenshot-2021-09-21-at-12.40.06-PM.png" alt="" width="516" height="357" /> </p> <table style="width: 100%; height: 599px;"> <tbody> <tr style="height: 46px;"> <td style="text-align: center; height: 46px; width: 16.5869%;" width="228"><strong>Particulars (Fig. In Cr)</strong></td> <td style="text-align: center; height: 46px; width: 12.9187%;" width="110"><strong>2016</strong></td> <td style="text-align: center; height: 46px; width: 11.3238%;" width="103"><strong>2017</strong></td> <td style="text-align: center; height: 46px; width: 10.5263%;" width="114"><strong>2018</strong></td> <td style="text-align: center; height: 46px; width: 15.311%;" width="106"><strong>2019</strong></td> <td style="text-align: center; height: 46px; width: 10.5263%;" width="95"><strong>2020</strong></td> <td style="text-align: center; height: 46px; width: 10.5263%;" width="89"><strong>2021</strong></td> <td style="text-align: center; height: 46px; width: 10.5263%;" width="102"><strong>Jun-21</strong></td> </tr> <tr style="height: 70px;"> <td style="text-align: center; height: 70px; width: 16.5869%;">Revenue from Operation</td> <td style="text-align: center; height: 70px; width: 12.9187%;">0.14</td> <td style="text-align: center; height: 70px; width: 11.3238%;">33</td> <td style="text-align: center; height: 70px; width: 10.5263%;">111</td> <td style="text-align: center; height: 70px; width: 15.311%;">358</td> <td style="text-align: center; height: 70px; width: 10.5263%;">667</td> <td style="text-align: center; height: 70px; width: 10.5263%;">2335</td> <td style="text-align: center; height: 70px; width: 10.5263%;">1100</td> </tr> <tr style="height: 46px;"> <td style="text-align: center; height: 46px; width: 16.5869%;">Other Income</td> <td style="text-align: center; height: 46px; width: 12.9187%;">0.08</td> <td style="text-align: center; height: 46px; width: 11.3238%;">0.87</td> <td style="text-align: center; height: 46px; width: 10.5263%;">2.58</td> <td style="text-align: center; height: 46px; width: 15.311%;">5.62</td> <td style="text-align: center; height: 46px; width: 10.5263%;">70</td> <td style="text-align: center; height: 46px; width: 10.5263%;">25</td> <td style="text-align: center; height: 46px; width: 10.5263%;">100</td> </tr> <tr style="height: 46px;"> <td style="text-align: center; height: 46px; width: 16.5869%;">Total Revenue</td> <td style="text-align: center; height: 46px; width: 12.9187%;">0.22</td> <td style="text-align: center; height: 46px; width: 11.3238%;">34</td> <td style="text-align: center; height: 46px; width: 10.5263%;">114</td> <td style="text-align: center; height: 46px; width: 15.311%;">363</td> <td style="text-align: center; height: 46px; width: 10.5263%;">737</td> <td style="text-align: center; height: 46px; width: 10.5263%;">2360</td> <td style="text-align: center; height: 46px; width: 10.5263%;">1200</td> </tr> <tr style="height: 23px;"> <td style="text-align: center; height: 23px; width: 16.5869%;">Purchases</td> <td style="text-align: center; height: 23px; width: 12.9187%;">0.75</td> <td style="text-align: center; height: 23px; width: 11.3238%;">42</td> <td style="text-align: center; height: 23px; width: 10.5263%;">118</td> <td style="text-align: center; height: 23px; width: 15.311%;">377</td> <td style="text-align: center; height: 23px; width: 10.5263%;">700</td> <td style="text-align: center; height: 23px; width: 10.5263%;">2266</td> <td style="text-align: center; height: 23px; width: 10.5263%;">1234</td> </tr> <tr style="height: 46px;"> <td style="text-align: center; height: 46px; width: 16.5869%;">Change in Inventory</td> <td style="text-align: center; height: 46px; width: 12.9187%;">-0.59</td> <td style="text-align: center; height: 46px; width: 11.3238%;">-9.82</td> <td style="text-align: center; height: 46px; width: 10.5263%;">-11</td> <td style="text-align: center; height: 46px; width: 15.311%;">-42</td> <td style="text-align: center; height: 46px; width: 10.5263%;">-58</td> <td style="text-align: center; height: 46px; width: 10.5263%;">-114</td> <td style="text-align: center; height: 46px; width: 10.5263%;">-126</td> </tr> <tr style="height: 46px;"> <td style="text-align: center; height: 46px; width: 16.5869%;">Employee Benefit Exps</td> <td style="text-align: center; height: 46px; width: 12.9187%;">4</td> <td style="text-align: center; height: 46px; width: 11.3238%;">14</td> <td style="text-align: center; height: 46px; width: 10.5263%;">38</td> <td style="text-align: center; height: 46px; width: 15.311%;">80</td> <td style="text-align: center; height: 46px; width: 10.5263%;">137</td> <td style="text-align: center; height: 46px; width: 10.5263%;">270</td> <td style="text-align: center; height: 46px; width: 10.5263%;">165</td> </tr> <tr style="height: 23px;"> <td style="text-align: center; height: 23px; width: 16.5869%;">Other Exps</td> <td style="text-align: center; height: 23px; width: 12.9187%;">7</td> <td style="text-align: center; height: 23px; width: 11.3238%;">34</td> <td style="text-align: center; height: 23px; width: 10.5263%;">63</td> <td style="text-align: center; height: 23px; width: 15.311%;">185</td> <td style="text-align: center; height: 23px; width: 10.5263%;">275</td> <td style="text-align: center; height: 23px; width: 10.5263%;">481</td> <td style="text-align: center; height: 23px; width: 10.5263%;">215</td> </tr> <tr style="height: 23px;"> <td style="text-align: center; height: 23px; width: 16.5869%;">EBITDA</td> <td style="text-align: center; height: 23px; width: 12.9187%;">-11</td> <td style="text-align: center; height: 23px; width: 11.3238%;">-47</td> <td style="text-align: center; height: 23px; width: 10.5263%;">-97</td> <td style="text-align: center; height: 23px; width: 15.311%;">-243</td> <td style="text-align: center; height: 23px; width: 10.5263%;">-386</td> <td style="text-align: center; height: 23px; width: 10.5263%;">-569</td> <td style="text-align: center; height: 23px; width: 10.5263%;">-292</td> </tr> <tr style="height: 23px;"> <td style="text-align: center; height: 23px; width: 16.5869%;">OPM</td> <td style="text-align: center; height: 23px; width: 12.9187%;">-7319.05%</td> <td style="text-align: center; height: 23px; width: 11.3238%;">-141.73%</td> <td style="text-align: center; height: 23px; width: 10.5263%;">-87.65%</td> <td style="text-align: center; height: 23px; width: 15.311%;">-67.82%</td> <td style="text-align: center; height: 23px; width: 10.5263%;">-57.85%</td> <td style="text-align: center; height: 23px; width: 10.5263%;">-24.38%</td> <td style="text-align: center; height: 23px; width: 10.5263%;">-24.45%</td> </tr> <tr style="height: 23px;"> <td style="text-align: center; height: 23px; width: 16.5869%;">Finance Cost</td> <td style="text-align: center; height: 23px; width: 12.9187%;">0.07</td> <td style="text-align: center; height: 23px; width: 11.3238%;">0.18</td> <td style="text-align: center; height: 23px; width: 10.5263%;">2.86</td> <td style="text-align: center; height: 23px; width: 15.311%;">5.12</td> <td style="text-align: center; height: 23px; width: 10.5263%;">12</td> <td style="text-align: center; height: 23px; width: 10.5263%;">43</td> <td style="text-align: center; height: 23px; width: 10.5263%;">20</td> </tr> <tr style="height: 23px;"> <td style="text-align: center; height: 23px; width: 16.5869%;">Depreciation</td> <td style="text-align: center; height: 23px; width: 12.9187%;">0.23</td> <td style="text-align: center; height: 23px; width: 11.3238%;">1.26</td> <td style="text-align: center; height: 23px; width: 10.5263%;">3.74</td> <td style="text-align: center; height: 23px; width: 15.311%;">6.24</td> <td style="text-align: center; height: 23px; width: 10.5263%;">19</td> <td style="text-align: center; height: 23px; width: 10.5263%;">32</td> <td style="text-align: center; height: 23px; width: 10.5263%;">17</td> </tr> <tr style="height: 46px;"> <td style="text-align: center; height: 46px; width: 16.5869%;">Profit Before Tax</td> <td style="text-align: center; height: 46px; width: 12.9187%;">-11</td> <td style="text-align: center; height: 46px; width: 11.3238%;">-48</td> <td style="text-align: center; height: 46px; width: 10.5263%;">-101</td> <td style="text-align: center; height: 46px; width: 15.311%;">-248</td> <td style="text-align: center; height: 46px; width: 10.5263%;">-347</td> <td style="text-align: center; height: 46px; width: 10.5263%;">-620</td> <td style="text-align: center; height: 46px; width: 10.5263%;">-319</td> </tr> <tr style="height: 23px;"> <td style="text-align: center; height: 23px; width: 16.5869%;">Tax Exps</td> <td style="text-align: center; height: 23px; width: 12.9187%;">0.01</td> <td style="text-align: center; height: 23px; width: 11.3238%;">0.07</td> <td style="text-align: center; height: 23px; width: 10.5263%;">-2</td> <td style="text-align: center; height: 23px; width: 15.311%;">-5</td> <td style="text-align: center; height: 23px; width: 10.5263%;">-11</td> <td style="text-align: center; height: 23px; width: 10.5263%;">21</td> <td style="text-align: center; height: 23px; width: 10.5263%;">-6</td> </tr> <tr style="height: 46px;"> <td style="text-align: center; height: 46px; width: 16.5869%;">Profit After Tax</td> <td style="text-align: center; height: 46px; width: 12.9187%;">-11</td> <td style="text-align: center; height: 46px; width: 11.3238%;">-48</td> <td style="text-align: center; height: 46px; width: 10.5263%;">-100</td> <td style="text-align: center; height: 46px; width: 15.311%;">-243</td> <td style="text-align: center; height: 46px; width: 10.5263%;">-335</td> <td style="text-align: center; height: 46px; width: 10.5263%;">-641</td> <td style="text-align: center; height: 46px; width: 10.5263%;">-313</td> </tr> <tr style="height: 23px;"> <td style="text-align: center; height: 23px; width: 16.5869%;">NPM</td> <td style="text-align: center; height: 23px; width: 12.9187%;">-7415.27%</td> <td style="text-align: center; height: 23px; width: 11.3238%;">-143.67%</td> <td style="text-align: center; height: 23px; width: 10.5263%;">-90.19%</td> <td style="text-align: center; height: 23px; width: 15.311%;">-67.92%</td> <td style="text-align: center; height: 23px; width: 10.5263%;">-50.23%</td> <td style="text-align: center; height: 23px; width: 10.5263%;">-27.46%</td> <td style="text-align: center; height: 23px; width: 10.5263%;">-26.23%</td> </tr> <tr style="height: 23px;"> <td style="text-align: center; height: 23px; width: 16.5869%;">EPS (Basic)</td> <td style="text-align: center; height: 23px; width: 12.9187%;">-93</td> <td style="text-align: center; height: 23px; width: 11.3238%;">-415</td> <td style="text-align: center; height: 23px; width: 10.5263%;">-865</td> <td style="text-align: center; height: 23px; width: 15.311%;">-2090</td> <td style="text-align: center; height: 23px; width: 10.5263%;">-12</td> <td style="text-align: center; height: 23px; width: 10.5263%;">-2</td> <td style="text-align: center; height: 23px; width: 10.5263%;">-0.77</td> </tr> </tbody> </table> <div> </div>
<p>PharmEasy, a leading name in India's e-pharmacy sector, has recently made a significant move towards its growth trajectory by filing for an Initial Public Offering (IPO). API Holdings, PharmEasy's parent company, has submitted a Draft Red Herring Prospectus (DRHP) to SEBI, the capital markets regulator. This step marks a pivotal point in PharmEasy's journey, aligning with the trend of public issues by dynamic Indian startups.</p> <p>The PharmEasy IPO aims to mobilize substantial funds, targeting a figure of Rs 6,250 crore through the sale of fresh equity shares. This fundraising initiative is a testament to the company's ambition to strengthen its foothold in the pharmaceutical market. Additionally, PharmEasy is contemplating a pre-IPO private placement, potentially amounting to Rs 1,250 crore. If pursued, this will adjust the total size of the IPO, maintaining compliance with market regulations that mandate a minimum issue size constituting at least 10% of the post-issue paid-up equity share capital.</p> <p>The proceeds from the PharmEasy IPO are earmarked for specific strategic uses. A significant portion, amounting to Rs 1,929 crore, is allocated for the repayment or prepayment of outstanding debts. Furthermore, the company plans to invest Rs 1,259 crore in organic growth initiatives, while Rs 1,500 crore is set aside for inorganic growth and other strategic ventures, alongside general corporate purposes.</p> <p>PharmEasy has demonstrated remarkable financial growth, with its revenue from operations soaring to Rs 2,335 crore in FY21, a substantial leap from Rs 668 crore in the previous year. Despite these impressive revenues, the company reported a widening net loss, reaching Rs 645 crore in FY21 compared to Rs 335 crore in the previous fiscal year. The first quarter of the current fiscal year saw revenues of Rs 1,197 crore, accompanied by a net loss of Rs 314 crore.</p> <p>Significantly, API Holdings operates without an identifiable promoter, striving to establish itself as a professionally managed entity post-listing. The company emphasizes its commitment to investing in marketing, supply chain infrastructure, and technological capabilities to fuel further growth.</p> <p>For the PharmEasy IPO, esteemed financial institutions such as Kotak Mahindra Capital Company, Morgan Stanley India, BofA Securities India, Citigroup Global Markets India, and JM Financial have been appointed as Book Running Lead Managers (BRLMs). Link Intime India is designated as the registrar to the issue.</p> <p>The PharmEasy IPO places the company alongside other prominent Indian startups like Zomato, Paytm, Nykaa, and Policybazaar, all of which have embraced the public issue route this year, marking a new era in the Indian startup ecosystem.</p>
Chennai-based Five Star Business Finance (FSBFL) is planning to raise capital via an initial stake sale. The nonbanking finance company (NBFC) has filed its draft red herring prospectus (DRHP) with the capital markets regulator Sebi. The NBFC, backed by TPG Capital, Sequoia, Matrix Partners, Norwest Venture, KKR, and TVS Capital, is looking at a valuation of more than $ 3 billion. The company will raise up to Rs 2,751.95 crore via its primary stake sale. The issue will entirely be an offer-for-sale (OFS), where its promoters and existing shareholders will offload stakes. Promoters and shareholders participating in OFS include SCI Investments V, Matrix Partners India Investment Holdings, Matrix Partners India Investment II Extension, Norwest Ventures Partners X- Mauritius, TPG Asia VII SF PTE, Deendayalan Rangasamy, and Varalakshmi Deendayalan. In March 2021, Five Star Business raised around $234 million (Rs 1,700 crore) from its new and existing set of investors. The company has a strong presence in the Southern states of India, primarily in Tamil Nadu. It provides secured business loans of around Rs 2-10 lakhs against the security of self-occupied residential property to micro-entrepreneurs. The company has had a strong run from 103 branches in 2017 to nearly 260 plus branches as of date across 120 districts in 8 states. Its consolidated portfolio expanded at a CAGR of 81 percent during FY16-FY20, while it grew at a moderate pace of 14 percent in FY2021 due to the impact of the Covid-19 pandemic. The AUM stood at Rs 4,445 crore as of March 31, 2021, compared to Rs 3,892 crore as of March 31, 2020. The NBFC posted a 34 percent growth in revenues at Rs 1051 crore in FY21, while its net profit jumped 37 percent to Rs 359 crore. 50 percent of the issue will be reserved for qualified institutional buyers, whereas non-institutional investors will have 10 percent shares allocated to them. The remaining 35 percent portion will be allocated to retail bidders. The company has appointed ICICI Securities, Edelweiss Financial Services, Kotak Mahindra Capital Company, and Nomura Financial Advisory and Securities (India) as the book running lead managers to the issue, whereas KFin Technologies is the registrar to the issue.
<div class="gmail_default"> Amidst the ongoing IPO season, Capital Small Finance Bank is also planning to raise funds via primary market route. The small lender has filed a draft herring prospectus (DRHP) with capital markets regulator SEBI to float an initial public offering (IPO). The IPO consists of a fresh equity share issue worth Rs 450 crore, along with an offer for sale (OFS) of up to 3.84 million equity shares by existing shareholders and promoters. Investors participating in OFS include PI Ventures (3.37 lakh equity shares), Amicus Capital Private Equity I LLP (6.04 lakh equity shares) among others. Proceeds from the issue will be used to augment tier-I capital base to meet the future capital requirements of the lender. As of June 2021, its tier-I capital base was Rs 446 crore. Its capital to risk was 21.12%. Capital Small Finance Bank mainly focuses on the needs of the middle income segment, providing its products and services in that area of operations. The lender is backed by a number of financial behemoths and institutional investors including SIDBI, ICICI Prudential and HDFC Life among others. According to the details given in DRHP, Capital Small Finance Bank is present in four states of north India including Punjab, Haryana, Delhi and Rajasthan, with lender having 159 branches and 161 ATMs. As of June 2021, the lender had deposits worth more than Rs 5,483 crore, which were Rs 4,687 crore a year ago. Advances stood at Rs 3,642 crore compared to Rs 3,145 crore last year. For the June 2021 quarter, net interest income (NII) rose 20% from a year ago to Rs 570.49 crore and the net profit stood at Rs 12.18 crore, which was Rs 6.8 crore a year ago The lender saw an increase in net non-performing assets 1.44% from 1.27% previous year. Provisions and contingencies rose to Rs 10.40 crore against Rs 8.78 crore. The lender has appointed Edelweiss Financial Services, Axis Capital and SBI Capital Markets as the book running lead managers to the issue. </div> <div> <div dir="ltr" data-smartmail="gmail_signature"> <div dir="ltr"></div> </div> </div>
<p>The latest auction of the two teams for the upcoming edition of the Indian Premier League (IPL) has unlocked the valuation of Chennai Super Kings (CSK) in the unlisted market. The recently crowned champion has been roaring high in the unlisted space, commanding a valuation of nearly Rs 7,000 crore following the sale of two new teams. <br /><br />The RP-Sanjiv Goenka Group and equity investment firm CVC Capital Partners have bagged the two new Indian Premier League (IPL) franchises, the IPL Governing Council announced earlier this week. According to the official statement from the Board of Control for Cricket in India (BCCI), RPSG Ventures made the highest bid of Rs 7,090 crore for Lucknow, Irelia Company (CVC Capital Partners) bid Rs 5,625 crore for the Ahmedabad team. <br /><br />Sanjiv Goenka-owned RPSG group had previously owned Rising Pune Supergiants, a defunct IPL team, which was formed for two years along with Gujarat Lions when Chennai Super Kings and Rajasthan Royals were suspended. <br /><br />Goenka also owns a franchise, named ATK Mohun Bagan, based out of Kolkata in the domestic soccer tournament Indian Super League (ISL). <br /><br />BCCI was expecting to reap about Rs 10,000 crore, but surprisingly the richest cricket board in the world has a windfall of Rs 12,715 crore. Chennai Super Kings, one of the most followed IPL franchises, is likely to become the first-ever Indian sports unicorn but the current valuations fall marginally short of achieving this feat. It has raced past its parent India Cements in terms of market capitalization. <br /><br />MS Dhoni-led franchise reported a profit after tax (PAT) of Rs 40.26 crore in 2020-21, which was 20 percent less than the PAT of Rs 50.33 crore clocked in the previous financial year. Investors should now focus on the upcoming broadcasting and online streaming rights for the cycle of 2023-2027. These rights may fetch Rs 36,000 crore boosting the top line of the company. <br /><br />Value investor Radhakishan Damani and IPO-bound Life Insurance Corporation of India (LIC) are the key shareholders of CSK. LIC holds a 6.04 percent stake in the company, whereas Damani's stake is not disclosed in its annual report. <br /><br />Barring the two bid winners, more than 20 interested parties had picked up tender documents, and nine had submitted their final bids. The list included the Adani Group, the Glazer family that owns Manchester United, Allcargo Logistics, and Ahmedabad-headquartered Torrent Group. The other bids were below Rs 5,000 crore.</p>
<p>RP-Sanjiv Goenka Group (RPSG) wins the bid to buy the Lucknow team in the Indian Premier League. Moneycontrol’s Nisha Poddar caught up with owner Sanjiv Goenka on the win and return proposition from the investment of Rs 7000 crore. <br /><br /><strong>Q: How do you feel about this particular acquisition and what is the vision with which you have bought into the IPL team?</strong> <br /><br />A: So the first reaction is, it feels good to be back in IPL. Yeah, this is just the beginning. Now it's about getting to build a team and performing well on the ground.</p> <!--more--> <p><strong>Q: What’s the payout mechanism for the Rs 7000 crore buy?</strong> <br /><br />A: Rs 7,000 crore is the enterprise value to be paid over in 10 years, the first-year payout is Rs 700 crore. In the same period, I expect to get over Rs 3,500 crore from the Cricket Board. <br /><br /><strong>Q: Is over 3500 crore an assumption, or is there any agreement on the payout to RPSG as a team owner?</strong> <br /><br /><strong>A: </strong>No, this estimate is based on their broadcast rights, which they have said will be between Rs 32,000 crore and Rs 35,000 crore for five years and thereafter higher. So, it can be even Rs 4,000 crore as per our research but to be on the cautious side we estimate Rs 3,500 crore in over 10 years. So the net present value of that is Rs 2,600 crore. <br /><br /><strong>Q: While your payment every year is fixed at Rs 700 crore, is the amount you receive will be equal or will vary year on year?</strong> <br /><br />A: No, in this first year what we receive of the Rs 3,500 crore will be less than the next five years, say about Rs 90 crore is what we expect over the next five years; thereafter, it should be between Rs 500 crore and Rs 550 crore every year. <br /><br /><strong>Q: Which entity of the group will own the IPL team?</strong> <br /><br />A: It will be owned by closely held group entities. Companies such as CECS, FirstSource, Saregama, and Philip Carbon Black will have no involvement in this business. This is largely going to be held personally and partially by RPSG Ventures. <br /><br /><strong>Q: What are the return propositions from this investment?</strong> <br /><br />A: In five years I expect it to be worth Rs 10,000 crore. The Rs 7000 crore valuation is to go up to Rs 10,000 crore. So, if I'm investing Rs 2,500 crore and in five years it becomes worth Rs 10,000 crore, that's a pretty good investment. <br /><br /><strong>Q: What is the value unlocking proposition expected?</strong> <br /><br />A: If we did a public issue or divested a minority stake at a higher valuation, we will make good returns on this investment in future. <br /><br /><strong>Q: Besides the acquisition cost, what are the other expenses and investments required in the IPL team?</strong> <br /><br />A: There are other expenses and also other revenue streams. We'll have to see how it works out. On sponsorship numbers, we won't be anywhere near the other larger franchise in the country. There is around Rs 90 crore reserve capital for the player acquisition cost. In other revenue streams, there is advertising, stadium revenues, sponsorships and jersey receipts. <br /><br /><strong>Note:</strong> The article is copied without any editing of the content from Money-Control.</p>
<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>
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