Sansera Engineering is an engineering-led integrated producer of complicated and crucial precision designed components.
They manufacture and provide a comprehensive range of quality forged and machined components comprising of connecting rods, rocker arms, crankshafts, stem comps, and forged Aluminium parts for vertical two-wheelers, passenger automobiles, and commercial vehicles' engine, gearbox, suspension, brakes, chassis, and other systems and assemblies for the automobile industry.
The firm manufactures and sells precise components for aerospace, off-road, agriculture, and other industries, including engineering and capital goods, in the non-automotive industry.
Sansera Engineering's initial public offering (SME IPO) subscription has started on Tuesday, September 14, 2021. It will end on Thursday, September 16, 2021. The business plans to raise 1283 crores through an initial public offering (IPO) with a price range of 734 to 744 rupees.
The IPO's minimum bid is 20 shares, which costs Rs. 14,880 per lot. According to the RHP papers, employee investors will receive a 36 per cent discount per equity share.
The company's initial public offering of 17,244,328 equity shares is an offer for sale (OFS) by current shareholders and promoters. In the grey market, it charges a premium of Rs 70.
Sansera Engineering IPO details Subscription Dates14 – 16 September 2021 Price Band INR734 – 744 per share Fresh issue Nil Offer For Sale17,244,328 shares (INR1,265.73 – 1,282.98 crore)Total IPO size17,244,328 shares (INR1,265.73 – 1,282.98 crore)Minimum bid (lot size)20 shares Face Value INR2 per share Retail Allocation 35% Listing On NSE, BSE
The allocation for the investors is in the following manner. The retail institutional investors of this IPO is 35%, the QIB portion is 50%, and the HNI portion is 15%.
Automotive generated 88.45 per cent of sales in FY21, while non-automotive contributed 11.45 per cent. India accounts for around 65 per cent of the company's income, with the remaining 35 per cent coming from other nations. The firm is a leading provider of connecting rods all around the world. The firm has 15 production facilities in India, with nine of them in Bangalore.
In FY21, the average capacity utilization across its manufacturing units fell from 69 per cent in FY19 to 49 per cent. It was able to profit from its product range and product mix diversity.
In FY21, sales in India accounted for 64.98 per cent of SEL's total income, while international sales accounted for 35.02 per cent. Sansera was able to retain a better EBITDA margin than its counterparts in the car components business.
The company is showing growth in profit in the last 3 years where we saw a minor dip in FY20 on the back of COVID-19. Profits of the company have grown at a CAGR of 3.86% from Rs 980 cr to Rs 1098 cr over the period of FY19 to FY21, while revenue declined by 4.35% from Rs 16,408.09 cr to Rs 15,723.64 cr over the period of FY19 to FY21.
According to our Senior research analyst at Swastika Investmart, at the upper band of INR 744, the issue is valued at P/E 35(x) to its FY21 EPS of INR 21.02. The casting and forging business is expected to grow at a pace of 13%44% as compared to 5%-7% currently which is going to be lead by the efforts made by govt to rejuvenate the economy on the back of Make in India.
A big push is expected from infrastructure, oil and gas, mining, railways, and defence sectors also the attraction of Electric Vehicles will provide a boost in the industry.
The IPO is attractively priced, however, there are many listed and well-reputed players in the industry also the issue is purely OFS based. Thus, we assign an "AVOID" rating to the IPO.
अमेरिकी डॉलर में तेज़ी रहने से कीमती धातुओं के भाव में दबाव है। सोना में ऊपरी स्तरों पर दबाव रहने से इसकी ऊपर बढ़ने की गति कम हो गई है और इसकी बढ़त ऊपरी स्तरों पर टिक नहीं रही है । अमेरिकी डॉलर की मजबूती के दौर में कॉमेक्स सोना पिछले सप्ताह में करीब 2 प्रतिशत की गिरावट के साथ 1799 डॉलर प्रति औंस पर आ गया है।
घरेलु वायदा सोना 1.25 प्रतिशत टूट कर 46930 रुपये प्रति दस ग्राम के स्तरों पर है। पिछले सप्ताह अमेरिकी रोज़गार की रिपोर्ट ठीक रही लेकिन देश में कोवीड-19 दैनिक मामलों और मौतों की लगातार बढ़ती संख्या चिंता का विषय बनी हुई है जो कीमती धातुओं के भाव को सपोर्ट करती है। एशिया पैसिफिक, चीनी मुद्रास्फीति के आंकड़े, जिसके अनुसार उपभोक्ता मूल्य सूचकांक अगस्त में महीने-दर-महीने 0.1 प्रतिशत और साल-दर-साल 0.8 प्रतिशत बढ़ा है।
उत्पादक मूल्य सूचकांक साल-दर-साल 9.5 प्रतिशत बढ़ा है। मिले जुले आंकड़े होने से कीमती धतुओं के भाव सीमित दायरे में बने हुए है। इस बीच, वर्ल्ड प्लेटिनम इन्वेस्टमेंट काउंसिल (डब्ल्यूपीआईसी) ने गुरुवार को पूर्वानुमान लगाया है की वैश्विक प्लेटिनम बाजार इस साल पर्याप्त आपूर्ति में होगा क्योंकि खदान की आपूर्ति में तेजी आई है और निवेश की मांग में गिरावट आई है।
यूरोपीय सेंट्रल बैंक ने गुरुवार को अपनी मौद्रिक नीति को अपरिवर्तित रखा, लेकिन अपने महामारी आपातकालीन खरीद कार्यक्रम के तहत शुद्ध संपत्ति खरीद की गति को धीमा करने का विकल्प चुना है। यूरो क्षेत्र की मुद्रास्फीति अगस्त में एक दशक के उच्च स्तर 3 प्रतिशत पर पहुंच गई और यूरो क्षेत्र के 19-सदस्यीय आम मुद्रा ब्लॉक में जीडीपी दूसरी तिमाही में 2 प्रतिशत बढ़ गई, जो अर्थशास्त्री अपेक्षाओं को बढ़ा रही है।
इस सप्ताह कीमती धातुए सीमित दायरे में रह सकती है। सोने में 46400 रुपये पर सपोर्ट है और 48000 रुपये पर प्रतिरोध है। दिसंबर वायदा चांदी में 62500 रुपये पर सपोर्ट और 66500 रुपये पर प्रतिरोध है।
Many people waste a lot of their hard-earned money on such things which they don’t necessarily need.
Are you one of those? If yes, then you have come to the right place. Here we are giving you some fascinating tips to improve your wealth in the simplest ways.
But before that, let’s understand the thinking of squander like what they do while having money in hand.
Many of us have a bad habit of spending money on the things that attract us the most. For instance, a new smartphone or a car that just launched in the past week. How many people will go for it and buy it? A lot. But the thing is they don’t even realize it and after a few days they end up regretting their foolish decisions.
Here, the irony is, even the smartest people also do such things and then suffer from budget leaks.
Before taking any decision in regards to buying? You need to ponder it. Before buying anything which is a new arrival in the market; just ask yourself: Do you really need that smartphone or car or do you just want to buy because your relatives or neighbour has already got that?
Well, if these are the reasons then you need to think carefully about your decisions.
Whether it’s careless spending or tiny indulgences, your actual spending's are going into the drain and you can’t even notice it.
Now let’s look at the ways to improve your financial health with these wealth management tricks:
COVID 19 pandemic has significantly affected the investor’s portfolio to a greater extent. Also, many people have lost their jobs which ultimately impacted wealth creation.
At this point, wealth creation could be a difficult thing to accomplish. Also, the ability to take risks versus one’s willingness to take risks can be a different thing.
For instance, an investor had a risk tolerance to face losses of up to 30% of your investment portfolio before the break, you may not be in a position to take any losses.
The risk assessment is what someone can do right now. Accurate risk tolerance can help you to restart the creation of wealth while saving money at the same time.
Put your financial goals on the top of the priority list as you maintain the wealth, it will lead you to a post comfortable retirement life. The current pandemic where many of the incomes are getting choked can impact your chances of achieving all your financial goals.
Pandemic has completely changed everyone’s life. Be in investment goals, lifestyle, financial liberty etc. Take a positive outlook on it and start rebalancing your portfolio. After the pandemic, everyone’s risk appetite, financial goals, return expectation has changed.
Therefore it is important to rebalance your portfolio as well. Re-shuffling of securities among different asset classes will increase your wealth capital for sure.
Having multiple sources of income is a better way to combat any financial crisis. For instance, many people have lost their jobs in the current pandemic. However, there are some people too, whose financial condition remains unaffected.
This is because they have multiple sources of income which makes them financially strong even if the situation is adverse.
Having an emergency fund is one of the finest ways to improve financial health. Suppose, if you are encountered with any unexpected financial emergency, this fund will act as a lifesaver for you as with the help of it, you will be able to save a lot of debt.
Making a retirement plan at the early stage of your life is the smartest way to raise your wealth. Retirement may be a few years away or a long time, but the earlier you save, the more time you will have to compound your money.
Debt is a huge financial obstacle to overcome when it comes to raising wealth. This is because debt comes with other problems too such as the ability to save money or also, it impacts your credit score. This can end up costing you higher interest rates while planning your home or buying any expensive gadget.
If you have adequate debt, make it a priority to pay off that debt asap. Make a plan to pay your debt. Make a complete list of all your debts such as how much you owe, how much you should put towards the debt payment and how long it would take to repay loans.
Stick to this plan until you finish all your debts.
People often think that saving money while having debt is not possible. However, this is not the case. You can’t save a 20% amount of your salary, but a little of your savings assure you no future debt.
Make an appropriate budget and spend your income accordingly. Make sure that your spending should be less than your earnings. This advice should biased towards wealth, no matter how little or more you earn - don’t save more than what you can afford.
Focus on a simple saving strategy, such as giving up a gym membership just because you have a local garden where you can do exercise, can result in bulk savings. If you follow some simple strategies, you can easily differentiate between necessary expenses and luxury expenses.
Becoming financial wealthy is not difficult as it seems. Anyone can achieve it irrespective of their financial circumstances.
If you want to build a strong wealth, you can achieve it with the help of certain tips: cut down your expenses, think before purchasing anything, avoid debt, plan a budget and stick to it.
Although these are the basics that help you to save money, they can't be enough. Hiring a relationship manager will provide you with a good solution in such cases.
A relationship manager builds your portfolio, rebalances it promptly so that you won't find any financial difficulty even in a crisis.
Vijaya Diagnostic Center is certainly considered one of the most important diagnostic networks in India. It helps in the delivery of fast, cost-effective, and cutting-edge diagnostic care in a great atmosphere.
Vijaya Diagnostic Centre provides pathology and radiology offerings to it as clients through its community of 80 diagnostic centres and 11 reference laboratories throughout 13 towns and cities with inside the states of Telangana and Andhra Pradesh and the National Capital Region and Kolkata. They have massive groups and networks that are serving as exceptional providers to the nation.
For the convenience of their clients, they provide value-added services such as home specimen collection, house visits, and various delivery or access options (i.e., diagnostic centres, SMS, email, and online portal) for test reports.
The Vijay Diagnostic IPO comprises an OFS amounting to 1,895.04 cr. The issue will open on Sept 01, 2021, and closes on Sept 03, 2021. The issue is priced at 522 to 531 per equity share.
The minimal bid lot is 28 stocks and in multiples of 28 stocks subsequently. It will close on September 3. While the corporation will now no longer acquire any proceeds from the SME IPO the promoting shareholders will get them it expects the list of the stocks to decorate its visibility and brand image.
Qualified Institutional Buyer constitutes 50 percent. around 15 per cent is allocated to Non-Institutional Investors and around 35 per cent is kept for retail investors. For retail investors, it is kept at a minimum of one lot, primarily based totally on availability for each shareholder.
The corporation witnessed a CAGR of 13 per cent in case of sales from operations, from Rs 292.6 crore in FY 2019 to Rs 376.7 crore in FY 2021. In the case of adjusted EBITDA, the corporation witnessed a CAGR of 24 per cent from FY 2019 to FY 2021.
The corporation operations have been improved considerably from 61 diagnostic centres as of March 31, 2019, to 81 diagnostic centres as of June 30, 2021. The corporation’s earnings for the 12 months grew from Rs 46.27 crore for 2019 to Rs 84.91 crore for 2021.
Subscription Dates1 – 3 September 2021Price BandINR522 – 531 per share Fresh issue Nil Offer For Sale35,688,064 shares (INR1,862.92 – 1,895.04 crore)Total IPO size35,688,064 shares (INR1,862.92 – 1,895.04 crore)Minimum bid (lot size)28 shares Face Value INR1 per share Retail Allocation35%Listing On NSE, BSE
Indian diagnostics market was up to Rs.730 billion in FY21 and projected to grow at a CAGR of 13% to reach approximately Rs.980 billion by FY23 where the growth is expected from the awareness of healthcare and spending on preventive and wellness.
IPO is priced at a PE of 64x on the EPS of Rs. 8.26 which is slightly lower as compared to its peers. There have been negative sentiments for pure OFS based IPO and we saw that few recent IPOs have not performed well in the last couple of months. Thus we assign an "Avoid" rating to the IPO.
What is Vijaya Diagnostic IPO?
Vijaya Diagnostic IPO is the main board IPO of having 35,688,064 equity shares of the face value of ₹ 1 that aggregates up to ₹ 1895.04. The issue is priced at ₹ 522 to ₹ 531 per equity share.
The minimum order quantity is 28 shares.
The IPO opens on September 1, 2021, and closes on 3 September 2021.
1.Visit the Swastika website and click on it to open Demat account.
2. Submit the IPO application form.
For more details, click on https://kyc.swastika.co.in/customer/login
The distinction between investment banking and commercial banking is a common query among those seeking clarity about the banking system.
In India, banking is integral across all levels of society, from high-profile businessmen to middle-class families and even those in poverty. Bank accounts are essential for everyday financial transactions, including deposits and withdrawals.
Commercial Banking:
Commercial banking, often referred to as retail banking, involves providing financial services to individuals and businesses. These services include accepting deposits, offering savings and checking accounts, providing loans and mortgages, and offering other basic financial products. Commercial banks generate revenue primarily through the interest they earn on loans and the fees they charge for their services.
Key Functions of Commercial Banking
Regulatory Framework
Commercial banks are regulated by the Reserve Bank of India (RBI) under the Banking Regulation Act, 1949. The RBI ensures the safety and soundness of the banking system through measures like capital adequacy norms, asset classification and provisioning standards, and corporate governance requirements. Commercial banks in India are regulated by the Reserve Bank of India (RBI) under the Banking Regulation Act, 1949. The RBI ensures the safety and soundness of the banking system through measures like capital adequacy norms, asset classification and provisioning standards, and corporate governance requirements.
Investment Banking:
Investment banking, on the other hand, differs significantly from commercial banking. They specialize in helping organizations raise capital and provide financial advisory services. Investment banks act as intermediaries between entities seeking capital (such as corporations and SMEs) and those looking to invest (HNIs and institutional investors).
Key Functions of Investment Banking
Regulatory Framework
Investment banks operate under a different regulatory framework compared to commercial banks. The Securities and Exchange Board of India (SEBI) regulates investment banking activities under the SEBI Act, 1992, and the various regulations issued thereunder. Additionally, the RBI oversees certain aspects of investment banking operations, especially for banks engaged in these activities.
Key Differences between Investment Banking and Commercial Banking
Clientele: Commercial banks serve the general public and businesses, whereas investment banks cater to large corporations, governments, and institutional investors.
Services Provided: Commercial banks focus on deposit-taking, lending, and basic financial services, while investment banks specialize in complex financial transactions like underwriting, M&A advisory, launching IPOs, valuations of companies, and trading.
Revenue Sources: Commercial banks earn revenue from interest on loans and service fees, while investment banks generate income through fees from underwriting, advisory services, trading profits, asset management fees, and fund raising fees.
Regulation: Commercial banks are regulated by the RBI to ensure stability and protect depositors, with a focus on capital adequacy and risk management. SEBI regulates investment banks to ensure market integrity and protect investors, with a focus on transparency and reducing systemic risk.
Risk Exposure: Commercial banks face credit risk from loan defaults and interest rate risk. Investment banks face market risk, liquidity risk, and operational risk due to their involvement in trading and complex financial activities.
Conclusion
While both investment banking and commercial banking are essential components of the financial system in India, they serve different purposes and operate in distinct ways. Commercial banks are the backbone of everyday financial transactions and credit provision for individuals and businesses. In contrast, investment banks are the architects of capital markets, enabling large-scale funding and facilitating major corporate transactions. Understanding these differences is crucial for anyone looking to engage with the financial sector in India, whether for personal finance, corporate finance, or investment purposes.
सोने- चांदी के भाव पिछले सप्ताह जैक्सन होल सिम्पोसियम के होने के कारण एक सीमित दायरे में ही रहे और कीमती धातुओं में कारोबार का दायरा सकारात्मक रहा। अमेरिका की 10 साल बांड उपज बढ़कर 1.34 प्रतिशत हो गई है।
डॉलर की तुलना में रूपया पिछले सप्ताह में 0.37 प्रतिशत मजबूत हुआ है जबकि डॉलर इंडेक्स जो सोने की विपरीत दिशा में चलता है, 0.82 प्रतिशत की गिरावट दर्ज की गई है। अमेरिका से जारी बेरोज़गारी के दावे और प्रिलिम जीडीपी के आंकड़े अनुमान से कमजोर दर्ज किये गए।
दूसरी ओर, अफगानिस्तान में बदतर होती परिस्थिति के कारण निवेशकों का भरोसा सोने में बना हुआ है। कच्चे तेल के भाव में 300 रुपये प्रति बैरल की तेज़ी पिछले सप्ताह में देखि गई है जिससे सोने के भाव को सपोर्ट मिला है।
शुक्रवार को हुए जैक्सन होल सिम्पोजियम के भाषण मे पॉवेल के मुताबिक इस बात पर विश्वास करने का कोई कारण नहीं है कि मूलभूत अवस्फीति के कारण अचानक बदल गए हैं, और मुद्रास्फीति लगातार घटने की संभावना है।
श्रम बाजार में पर्याप्त सुस्ती और महामारी जारी रहने के साथ, गलत समय पर नीतिगत कदम विशेष रूप से हानिकारक हो सकता है। संपत्ति खरीद कार्यक्रम इस साल के अंत तक घटाया जा सकता है लेकिन सीधे तोर पर ब्याज दर वृद्धि के संकेत नहीं है।
फेड प्रमुख जेरोम पॉवेल के बयां के बाद कीमती धातुओं में निचले स्तरों से उछाल देखा गया। और अक्टूबर वायदा सोना निचले स्तरों से 400 रुपये मजबूत होकर 47200 रुपये प्रति दस ग्राम पर रहा।
इस सप्ताह कीमती धातुओं में तेज़ी रह सकती है। सोने में 46700 रुपये पर सपोर्ट है और 48000 रुपये पर प्रतिरोध है। दिसंबर वायदा चांदी में 62500 रुपये पर सपोर्ट और 64500 रुपये पर प्रतिरोध है।
Treasury bonds can turn out to be a good investment for the ones who seek stable returns or for those who are close to retirement. Are treasury bonds a good investment choice?
Investors consider several factors before applying for a bond: these factors include the type of bond, the amount the interest the bond pays, and the time duration their investment will be tied up.
Apart from these factors, there are other things also which can bear risk tolerance with a bond’s risk of default. These bonds are guaranteed by the US government.
US Treasury bonds are also a type of fixed income type that help investors to get guaranteed returns.
Fixed income refers to those investment securities that pay a fixed sum of interest or dividend payments till their maturity date. Government and fixed income bonds are considered as one of the safest fixed income instruments in the world.
A bond is a debt security issued by an investor to a borrower. Here, the investors are: governments and organizations where they raise funds by issuing bonds and borrowers are the ones who purchase these securities and in turn achieve a significant amount of interest from the government.
It may be noted that the government pays you the principal amount on the date of maturity.
If you want to diversify your portfolio with the purpose of equity, you need to consider bonds as an asset class. Just like the equity trading market where investing comes with profits and loss, investing in bonds also has its good or bad.
Here are some of the pros and cons:
Before taking a deep dive into bonds, let’s take a look at the terminologies:
The amount of bond will be worth only at its maturity. It is the reference amount that the issuer issues while calculating the interest payments. For instance, if someone purchased a bond worth $1K, that becomes the face value of that bond.
The rate of interest issuers will pay on the face value of the bond. A coupon rate of 5% will mean the bondholder will receive 5% every year on the $1K invested.
Dates on which the bond issuer will pay interest. The coupon date can be monthly, quarterly, annually.
The date at which the bond will mature and the bond issuer will return the face value of the bond.
An expense ratio is an annual fee a fund charges to cover its expenses. For instance, if an ETF has an expense ratio of 1%, it means the fund uses 1% of the assets to cover the expenses.
Bonds are classified through their credit ratings of which the highest quality of bonds are classified as investment grade.
Under this category, bonds are issued by the US government and stable blue-chip companies. Different bonds are available and therefore it is up to you which bond you want to invest in. Bonds that have poor credit ratings have a higher risk of default.
High rated bonds are rated as AAA while D means default. Bonds that come with a longer maturity date usually have a higher rate of interest. This is because such bonds have bondholders to default risk that can be extended for a longer period.
Agencies like S&P, Moody’s, and CRISIL have the authority to give credit ratings to bonds.
US government bonds are generally issued by the federal government for a specific duration. These bonds are considered as less defaulter and therefore they carry the lowest rate of default. The bonds that the US Treasury issues are known as T-bills or treasury bills.
Treasury bills are a type of government bond at which the maturities start from a few days to 52 weeks. These short term government bonds are sold at a discount from their face value.
These bonds have a tenor of 20 or 30 years as these bonds pay interest every six months.
Government securities are issued with maturities of two, three, five, seven and ten hours.
There are securities that are issued with maturities of five, 10 and 30 years. These securities pay interest every six months. The only difference from the bonds is that the issuer adjusts the principal of such securities based on the Consumer Price Index (Consumer Price Index).
FRNs are issued for a two years term and pay interest to their shareholders on a quarterly basis. The interest rates rise and fall which is based on discount rates for 13-week Treasury bills.
These are low-risk savings products that not only earn interest but also protect you from inflation fluctuations.
These are savings products that pay interest based on current market rates until 30 years or you cash them.
ETFs are the easiest way to invest US treasuries and corporate bonds as these are very lost cost securities than other securities. These types of investments are made under the Liberalized Remittance Scheme of the RBI.
Below is a list of some ETFs of different tenors that you can consider for investing in US Treasuries.
This ETF tracks treasury bonds with short term maturities ranging from 1-3 years. The fund carries an expense ratio of 0.15%. It has total assets worth $19.5 2B and a dividend yield of 0.46%.
The fund offers exposure which has a tenure of three to 10 years. The fund has the lowest expense ratio at 0.05%. This ETF has assets worth $7.62B under management.
This ETF records an index that offers exposure to US treasuries having a maturity of 10 years and more. It carries minimal credit risk but a significant amount of risk associated with it. The fund has an expense ratio of 0.06% and has an AUM of $3.56.
Bonds can be considered as the safest yet most trusted investment security irrespective of age. This is because bonds can provide income, safety, and help to minimize the risk in an investment portfolio.
Starting a business is challenging, similar to navigating a ship through turbulent seas. In today's technology-driven world, innovative ideas have the potential to create significant impact, with thousands of startups emerging each year, promising to revolutionize various sectors. However, many of these startups fail within two to three years despite their promising beginnings. Understanding why this happens, the steps necessary for success, and how investment bankers can support these ventures is crucial for any entrepreneur.
What is an Investment Bank?
An investment bank primarily helps companies, including startups, access capital markets to raise money for growth and other business needs. Unlike commercial banks that offer loans at fixed interest rates and are subject to regulatory limits on lending, investment banks offer a broader range of financial services and are not as restricted by lending limits. This makes them particularly valuable for startups needing substantial funding.
Key Services Provided by Investment Banks
Beyond fundraising, investment banks conduct thorough research, analyze company valuations, and provide accurate data for business expansion. They also help startups determine how much capital is required and map out their financial structure.
How Investment Banking Works for Startups
Investment banks are crucial for startups as they provide the necessary capital and strategic advice to help these new ventures grow and succeed. Here's how they work:
Detailed Due Diligence
Before partnering with a startup, investment bankers conduct extensive research and due diligence. This involves reviewing the startup's business model, financial projections, market potential, and competitive landscape. This ensures that the startups they present to potential investors are robust and have a high likelihood of success.
Fundraising Strategies
Investment bankers are adept at crafting fundraising strategies that meet the specific needs of a startup. They identify the best sources of capital, whether through equity, debt, or hybrid instruments, and structure the deals to maximize the startup's financial health and growth potential.
Building Investor Relationships
Investment bankers have extensive networks of potential investors, including venture capitalists, private equity firms, and institutional investors. They leverage these relationships to connect startups with suitable investors, facilitating deals that might not have been possible otherwise.
Advisory Services
Beyond raising capital, investment bankers provide valuable advisory services. They help startups with financial planning, corporate restructuring, and strategic decision-making, ensuring that the business is well-positioned for long-term success.
Why Should Startups Engage with Investment Bankers?
Engaging with investment bankers can provide startups with several advantages:
To illustrate the impact of investment banking on startups, let's look at a few success stories in India:
Flipkart, one of India's largest e-commerce platforms, benefited significantly from investment banking services. Early on, Flipkart raised substantial funds through multiple rounds of equity financing, facilitated by investment banks. These funds allowed Flipkart to scale rapidly, expand its product offerings, and improve its logistics and supply chain management.
Paytm, a leading digital payment platform in India, also leveraged investment banking services to fuel its growth. Investment banks helped Paytm raise billions of dollars in capital from prominent investors, enabling it to diversify its services, enter new markets, and compete with global giants like Google Pay and Amazon Pay.
Ola, a popular ride-hailing service in India, used investment banking to secure funding from international investors. This capital infusion allowed Ola to expand its fleet, enhance its technology platform, and extend its services to smaller cities and towns, solidifying its market position.
While engaging with investment bankers can provide significant advantages, startups should also be aware of potential challenges:
1. Cost: Investment banking services can be expensive, with fees based on the capital raised or the complexity of the transaction. Startups need to weigh these costs against the benefits.
2. Dilution of Ownership: Raising equity capital often involves issuing new shares, which can dilute the ownership of existing shareholders. Startups need to carefully consider the implications of this dilution.
3. Regulatory Compliance: Navigating the regulatory landscape can be complex, especially for startups unfamiliar with the requirements. Investment bankers can help ensure compliance, but startups must still be diligent in understanding their obligations.
4. Alignment of Interests: It's crucial for startups to find investment bankers whose interests align with their own. Misalignment can lead to conflicts and suboptimal outcomes.
Investment banking can be a powerful tool for startups in India, providing access to capital, strategic advice, and valuable networking opportunities. By understanding the services offered by investment banks and how they can support growth, startups can better navigate the challenging landscape of entrepreneurship. Engaging with investment bankers requires careful consideration of costs, regulatory requirements, and the alignment of interests, but the potential benefits can far outweigh the challenges. As illustrated by success stories like Flipkart, Paytm, and Ola, the right partnership with an investment bank can propel a startup to new heights, turning innovative ideas into successful, sustainable businesses.
सोने में पिछले सप्ताह 900 रुपये की गिरावट आने के बाद निचले स्तरों से सुधार दर्ज किया गया और कीमते सप्ताह में सपाट रही। अमेरिकी मुद्रास्फीति के आंकड़े कमजोर रहने के कारण सोने में नीचले स्तरों से अच्छा सुधार देखा गया। छह प्रमुख मुद्राओ का मापक डॉलर में ऊपरी स्तरों पर हल्का दबाव रहा लेकिन सप्ताह में यह 0.18 प्रतिशत मजबूत हुआ है।
सोने में निवेशक फेड की अगली मौद्रिक नीति की प्रतीक्षा में है जिसमे संपत्ति खरीद कार्यक्रम को कम करने के लिए समय की घोषणा हो सकती है। जिससे सोने और चांदी के भाव में लम्बी अवधि के लिए नई दिशा मिल सकती है। लेकिन अमेरिका के कोर कंस्यूमर प्राइस इंडेक्स के आंकड़े अनुमान से कमजोर दर्ज किये गए जिसके कारण संपत्ति खरीद कार्यक्रम को टाले जाने की अटकले निवेशकों में रही और सोने के भाव को पिछले सप्ताह निचले स्तरों पर सपोर्ट रहा।
वही, अमेरिकी प्रोड्यूसर प्राइस इंडेक्स में 1 प्रतिशत की मजबूती दर्ज की गई है जो की एक दशक के किसी महीने में सबसे अधिक है। हालांकि फेड अधिकारियो ने नियंत्रित मौद्रिक नीति पर समय को लेकर विभिन्न विचार दिए है। इस बीच, अमेरिकी आकड़ो के मुताबिक पिछले सप्ताह में 375,000 प्रारंभिक बेरोजगार दावे दायर किए गए, जो पहले दायर किए गए 387,000 दावों से कम थे। घरेलु वायदा सोने में कीमते सप्ताह में सपाट रही जबकि चांदी के भाव में 4 प्रतिशत की मंदी दर्ज की गई है।
इस सप्ताह अमेरिका के प्रमुख आंकड़े है जिनमे : मंगलवार को रिटेल सेल्स, फेड चेयर जेरोम पॉवेल का बयान और बुधवार को फ़ेडरल रिज़र्व की बैठक प्रमुख है।
इस सप्ताह सोने और चांदी में ऊपरी स्तरों पर दबाव रह सकता है। सोने में 47000 रुपये पर प्रतिरोध है और 46000 रुपये पर सपोर्ट है। चांदी में 64000 रुपये पर प्रतिरोध और 61000 रुपये पर सपोर्ट है।
Windlas Biotech founded in 2001, is one of India's top pharmaceutical formulations contract development and manufacturing organisations (CDMOs).
From product discovery to product development, licencing, and commercial manufacture of generic products, including complex generics, the firm provides a full spectrum of CDMO services.
The company's current emphasis is on the development of complicated generic medicines in the chronic therapeutic category for lifestyle-related diseases.
CDMO Products and Services, Domestic Trade Generics, and Over-the-Counter (OTC) Market (Nutraceutical and Health Supplement Product) are the three verticals in which the company works. It also offers its own branded products in the generics and over-the-counter (OTC) sectors.
The SME IPO consists of a fresh issue of Rs 165 crore and an offer for the sale of 51,42,067 equity shares by existing selling shareholders.
The offer for sale consists of promoter Vimla Windlass selling 11.36 lakh equity shares and investor Tano India Private Equity Fund II selling 40,06,067 equity shares. Tano India Private Equity Fund would leave the firm through an offer for sale, selling its whole 22 per cent share.
Windlas Biotech will use the net proceeds from its new issue to acquire equipment for capacity expansion of the current facility at Dehradun Plant – IV, as well as adding injectable dosage capabilities to the existing facility at Dehradun Plant-II (Rs 50 crore).); working capital requirements (Rs 47.56 crore); and repayment of certain borrowings (Rs 20 crore). The firm is currently in debt to the tune of Rs 30 crore. The debt is expected to be reduced by Rs 10 crore following the IPO:
Subscription Dates 4 – 6 August 2021 Price BandINR448 – 460 per share Fresh issueINR165 crore Offer For Sale5,142,067 shares (INR230.36 – 236.53 crore) Total IPO sizeINR395.36 – 401.53 crore Minimum bid (lot size)30 shares Face Value INR5 per share Retail Allocation 35% Listing On NSE, BSE
The firm is concentrating on developing and launching complicated generic medicines in the chronic therapeutic category for lifestyle-related diseases.
The company supplies seven of India's top ten pharmaceutical companies.
In terms of revenue, it is one of the top five companies in India's domestic pharmaceutical formulations contract development and manufacturing organization (CDMO) market-consistent revenue growth the company has a negligible amount of net debt (around Rs 20 lakh) and its interest-coverage ratio was around 42 times as of FY21.
We recommend subscribing to this IPO. Multi-drug therapy has gained relevance in the healthcare industry over the last few years and is projected to help the expansion of pharmaceutical consumption.it is one of India's major contract development and manufacturing firms (CDMO) for pharmaceutical formulations.
It also intends to enhance its capacity with the funds obtained, which will benefit the firm in the long run.
Rolex Rings, Incorporated in 2003, based in Rajkot, Gujarat, is one of the country's largest makers of forged and machined components. The business has established a long-term relationship with its clients.
Rolex Rings made a profit of Rs 86.95 crore for the fiscal year ended March 31, 2021, up from Rs 52.94 crore the previous year, its net profit at a compounded annual growth rate stands at 21.3%.
More than half of the company's revenue comes from outside the country, with 60 customers in 17 countries, including India.
Domestic and worldwide markets are spread across two-wheelers, passenger vehicles, commercial vehicles, off-highway vehicles, electric vehicles), industrial machinery, wind turbines, and railways, among other areas.
It produces a diverse range of bearing rings, that are appropriate for a wide range of end-users.
Some of the main worldwide and local names that Rolex Rings serves are SKF India, Timken India, and NRB etc.
The SME IPO is worth Rs.731 crore. The new issue is worth 56 crore rupees. This will be utilized to meet long-term working capital needs as well as other corporate needs. The promoters are given a sale offer for the remaining 675 crores. The issue opens on July 28, 2021, and will close on July 30, 2021. The issue is priced at 880 to 900 per equity share.
About 50 per cent is kept for Qualified Institutional Buyers,15 per cent for non-institutional buyers, and 35 per cent for retail investors.
The funds obtained through the IPO will be used in the following manner:
Rolex Rings IPO details
Subscription Dates: 28 – 30 July 2021
Price Band
INR880 – 900 per share
Fresh issue
INR56 crore
Offer For Sale
7,500,000 shares (INR660 – 675 crore)
Total IPO size
INR716 – 731 crore
Minimum bid (lot size)
16 shares
Face Value
INR10 per share
Retail Allocation
35%
Listing On
NSE, BSE
Rolex Rings, a global vehicle parts producer, is ready to launch its public offering as the comeback gathers steam.
By investing in renewable energy, the corporation hopes to lessen its reliance on changing electricity costs and lower its carbon footprint.
The company now operates wind turbines with an installed capacity of 8.75 MW. The company is in the midst of extending its solar project capacity by 12 MW and has already placed purchase orders for the necessary equipment.
The automobile industry is slowly rebounding in 2021 after a tough ride in 2020. Auto sales are being driven by a number of factors, including the relaxation of lockout restrictions and pent-up demand.
The term Debenture comes from the Latin word “debentur” which means borrow. Here, Debentures means a company's debt. They are one of the most popular debt instruments along with bonds.
When companies or government want to raise their funds from the public, they issue debentures.
Like others, these financial securities are repayable after a certain time period and the company pays the holder a fixed interest at fixed intervals such as quarterly, monthly, and annually.
Generally, the companies pay interest against debentures before paying the debentures.
A company has the authority to issue different types of debentures; however, they depend on their objectives and requirements. The classification of a debenture is based on certain things such as security, tenure, coupon rate, redemption mode, convertibility, security, etc.
Two types of debentures are issued by the companies: Convertible Debentures and Non-Convertible Debentures.
Another category of debenture that is also available that is of lesser-known type is a partially convertible debenture. In such cases, the company which issues partially convertible debenture decides the fixed percentage of debenture that may or may not be converted into company stocks.
Let’s get acquainted with some of the most common types of debentures:
There is a type of debentures where the investors have a right to convert their full debenture holdings into equity shares of the company. On a normal note, the rights of the debenture holders, trigger date for conversion, the conversion date is already mentioned at the time of issuing debentures.
Non-convertible debentures are issued by companies that don’t give the option to convert debentures into equity shares.
In the case of registered debenture, the company that issues the debentures takes all the details of the holder such as the name and address of the investors, in the register of debenture, the number of debentures issued by the company to the debenture holder.
Also, known as bearer debentures, unregistered debentures issued by a company allow their holders to not maintain any records. Here, the company pays the principal amount along with the bearer of the debenture irrespective of the name written in it.
Another feature of this type of debenture is easily transferable in the market.
These types of debentures are redeemable where the redeemable date is clearly mentioned on the company’s debenture certificate. Once the redemption date comes, the company is bound to return the principal amount to the debenture holder.
These debentures are the exact opposite of irredeemable debentures where irredeemable debentures have a specific redeemable date, these debentures have no fixed date regarding the payment to the debenture holder. It is redeemable only when the company goes into the liquidation process.
The primary reason behind the issuing of debentures is to raise funds from the public. The company uses such funds for several purposes such as the company's growth and research and development in the market.
Companies prefer issuing debentures over equity shares for two reasons: First, issuing debentures has nothing to do with ownership dilution. Two, the cost of raising funds through debenture is quite cheaper than the cost of raising funds through equity shares.
In many cases, the company issued registered secured NCDs as it protects investors against their investment.
Convertible debentures are the debentures that can be converted into equity shares of the company.
Non-convertible debentures are the type of debentures that cannot be converted into equity shares.
If we compare the rate of interest between the two, then convertible debentures have a lower interest rate than non-convertible debentures because the holders have the authority to convert them into equity shares.
The non-convertible debentures have a higher interest rate. However, they are less risky than convertible debentures and bonds.
The maturity value of convertible debentures heavily depends on the company’s stock price at the time of issuing the debentures. A higher stock price means higher returns and a low stock price means the company provides fewer returns.
Vanilla convertible bonds give investors a facility to hold the bond until maturity or you can convert it into stocks. If the stock price has decreased since the bond’s issue date, the investors can hold the bond until maturity and get paid the face value.
The maturity value of non-convertible debentures remains fixed as they provide fixed returns on maturity.
Status is the distinguishing factor between convertible and non-convertible debentures. If you hold convertible debentures, you can enjoy either the status of being a creditor of the company or the owner of the company. On the other hand, if you hold non-convertible debentures, your status will be considered as the creditor of the company.
Debentures as a source of finance are used by companies that have regular earnings to service the debt and also have a higher proportion of fixed assets in their asset structure that offers proper security.
Also, the company needs to ensure the debt-to-equity ratio.
The recent changes that have been noticed in the issuing of debentures are quite encouraging and promising which are as follows:
Debentures play a very important role for debentures as it pays them a regular interest rate or coupon rate return to investors. Convertible debentures can be converted to equity shares after a specific period, making them more appealing to investors.
The fast-moving consumer goods or FMCG companies are the ones that manufacture the daily use products. People, no matter rich or poor, use these products on a daily basis. The products comprise toothpaste, detergents, soaps, dish wash bars, oil, shampoo and others which are widely used in daily lives.
As urbanization grows at a large pace, the sector’s growth remains strong and robust. If we look at the smaller cities, towns and villages, the usage of products has been started on a broad basis. They have started to consume branded products without thinking about the prices of a product.
For instance, they have started to use the products from the organized sectors and therefore the large conglomerates are doing their duty by fulfilling the needs of the customers. Such things add more appeal to the sector. However, the paradigm of the sector is constantly changing and evolving. In other words, the sector acts as a dynamic in nature.
Despite all the difficulties faced by this sector, the FMCG sector has maintained its performance which indicates a strong and subtle future. This indicates that the sector still falls under the category of "believe to be" and investors find it as an attractive option for investors’ portfolios.
The sector is so dynamic that it has been called out as Rampant as the companies need to shift their branding, positioning, strategies within a short period of time. For instance, as the customer focus shifted towards the entry of Patanjali in Ayurveda and Organic products, the growth of the sector has been affected in a negative way.
Keeping this in mind, top companies such as Dabur and Hindustan Unilever have changed their plans and they subsequently started to move towards herbal products.
Due to the constant demand for regular use of products, investors start to believe that the FMCG sector is a steady performer in the stock market; however, the growth of the sector is still slow.
The data of Statistica states that the FMCG sector in India has shot four times to $110 billion (8.15 lakh Crore) which was less than Rs 2 lakh crore in 2011.
By 2025, it is estimated that the FMCG sector will grow at the rate of 15% on an annual basis, increasing the volume to $220 billion (Rs 16.30 lakh Crores). With the entry of top-notch e-commerce companies such as Amazon, Flipkart, the sector is likely to bounce back in the coming years.
Nowadays, the government of India also started encouraging the sector thus making a healthy and wealthy future. The government also declared several incentives to support the FMCG industry. Also, GOI has allowed 100% Foreign Direct Investment or FDI in order to receive growth.
The government minimizes the burden of corporate taxation on MSME to further elevate the sentiment. The GST has aided the sector, even more, boosting the sentiments for the industry.
Hindustan Unilever is the largest FMCG company in the country with a market capitalization of 6 lakhs. It is a listed company that is headquartered in London, UK. British conglomerate. Its products include Dove, Lifebuoy, Lux, Hamam, Lyril, Rexona, Surf Excel, Comfort, Sunsilk, Fair and Lovely, Lakme, Vaseline, Lipton, Brooke Bond, Pepsodent and others.
Incorporated on 24 August 1910, ITC was later named as Indian Tobacco Company. Headquartered in Kolkata, the company is diversified across multiple industries such as FMCG, hotels, packaging, agribusiness, and cigarettes. The famous brands like Nescafe, Gold flake, Classmate Notebooks and Wills Navy Cut.
Nestle was incorporated in March 1959, in Vevey Switzerland and operates in India. It brags a market cap of over Rs 1.7 lakh Crore. The company mainly produces dairy products that manufacture top brands such as Maggi, Kit-Kat, Milo, Milkmaid, Barone and Nestea.
Dabur is also known as Daactor Burman is a Ghaziabad based FMCG company that primarily manufactures healthcare-related products including Dabur honey, Chyawanprash, Dabur Hajmola and more.
The consumer product company is best known for manufacturing liquid detergents, soaps, Cinthol, Godrej No.1, Godrej Shikakai, colourants Godrej powder hair dye, Coloursoft, and Ezee liquid detergents.
Headquartered in Mumbai, the company has a market cap of more than 90,000 crores. Other listed companies include Marico, Gamble Hygiene, Jubilant FoodWorks, Britannia Industries, Emami, Tata Consumer Products amongst others.
If you want to buy a solid, strong yet steady portfolio, you should buy and hold FMCG shares for a longer period of time. Not only do these stocks offer attractive returns but also provide a decent dividend.
Here are reasons; why should you own them:
FMCG companies release new products at fixed intervals as the stock market is highly competitive. A company does not always fully depend on older products to remain in the game. Keeping this in mind, major FMCG companies have shifted towards ayurvedic and herbal products across the board. The company continues to launch new products to ensure market shares for them.
FMCG companies find India is a huge market with 1.3 billion people, which is more than 15% of the total population. Needless to say, the per cent is quite more and as per the research, a large part of the population comes from rural and suburban areas.
As long as the government gives a thumbs up to these sectors, FMCG is likely to grow at a rapid speed. One of the prime reasons is that the sector offers lucrative returns to its shareholders.
FMCG companies believe in innovation and hence the companies grab and get higher market returns. Nevertheless, the companies who fail to upgrade with time, often get the last seats in a row. Innovation of FMCG sectors is based on the following factors: research, consumer behavior, market demands.
The competition of FMCG companies is rising day by day which means there is a limited scope of extracting higher margins in indubitable products. As the product rates go beyond the standards, it is a huge possibility that the users may shift to the same products of different companies.
Hence, the margins are limited and dwarf to get higher sales and revenue.
It may be noted that the FMCG sector gives a moderate performance during bull markets, however, when the stock market goes down, the same sector gives outstanding returns.
In addition to this, the majority of FMCG companies launch new products on a constant basis and if you include them in your portfolio, chances are high that your portfolio is screened from any unfavorable market segments.
In the Primary or the New Issue Market, new issues of securities are raised, which are issued to the public for the first time. It is used by new and present companies. The company issues new shares and debentures for gathering lengthy-time period funds. The issue of securities is made thru the prospectus.
The purchaser of new shares and debentures can also be businessmen, clients of the company, personnel of the company, current shareholders, etc.
It enables capital formation through channelizing money from personal savers into perfect productive investments. It consists of a company, an investor, and an underwriter.
The company issues IPO: The securities for the first time are issued in the primary market. This system is acknowledged as an Initial Public Offering IPO. Since the securities are bought for the first time, the primary market is recognized as the New Issue Market.
Role of the underwriter: It is a whole method of raising capital by way of promoting new stock to investors through an IPO. The underwriter then decides the sale price of the new issue of securities. The underwriter enables and monitors the new issue offering. Financial establishments such as funding banks, insurance plan companies, and so on provide underwriting services.
Investors: They are the purchasers of the new securities in the primary market
Public Offering: A public offering happens when a listed company makes an offer document. The document may be of the fresh issue of securities or an offer for sale to the public.
Rights Issue: The right Issue is when a listed company issue fresh securities to the existing shareholder. It is best suitable for companies that would like to raise capital to fund their operations or looking for better growth opportunities.
Private Placement / Preferential Issue: Private placement is basically an issue of shares or convertible securities by listed companies which is neither a right issue nor a public issue. It is an effective way for the company to raise equity capital.
There are two types of investigation that are carried out:
The preliminary investigation includes designated learning about economical, financial, legal, and technical factors to make certain the soundness of the project.
The structure of financial arrangements involves requirements and availability of promoter’s equity, equity from the public, different ratios, and overseas exchange requirements.
The service provider bankers can be banks, financial institutions, private funding firms, etc.
An essential component of the company of new shares is the information about adequacy and structure of financial arrangements.
The second feature is carried out via sponsoring institutions. They supply advisory services. The advisory carrier includes Types of issue, Thug, Pricing, Methods of issue, etc.
The underwriting means guaranteed buy of a targeted quantity of new issues at a fixed price. The buy may additionally be for sale to the public, for solely one’s portfolio or for each purpose. Minimum subscription is assured by using underwriters. If the issue is absolutely subscribed, no legal responsibility would be left for the underwriters.
If the underwriter fails to promote the assured quantity of shares to the public, it will have to buy the unsold shares via itself. They can be banks or economic establishments or specialized underwriting firms.
Distribution of new issues means the sale of the stock to the public. The distribution job is finally hand over to brokers and dealers. The stock broker or dealers hold direct contact with the supreme investors.
Last week the Indian stock market was very interesting! The reason is the Zomato IPO. Needless to say, the much-awaited IPO knocked at your door last week!
Started as Foodiebay Online Service Private Limited, in 2008 by two IIT students Deepinder Goyal and Pankaj Chaddah, the company has grown much which is now extended to 24 countries.
As per the sources, Zomato brought a revolution to the Indian stock market. An Indian startup is a leading Online Food Service Company in terms of food sold as of December 31, 2020.
The company offers business customer services mainly food delivery and dine out where customers can search and find out the location of restaurants, restaurant menu, order food delivery, make payments for the online delivery etc.
Before we move ahead, we want you to go through the complete analysis of Zomato DRHP. It will give you an idea of the company's business and financials.
In this blog, we take a dig deep into Zomato’s IPO.
Zomato Ltd is a leading online food service company in India that connects restaurants, customers and delivery partners. Zomato mainly works on business to consumer segment or B2C that offers online food delivery and dining out services. It allows customers to easily search, find restaurants, reserve a table, order online food and make payments through Zomato’s mobile application.
Zomato’s other B2B or business-to-business services generate revenue from Hyper pure. It supplies high-quality ingredients and kitchen products and restaurants. Also, it enables restaurants to buy fruits, vegetables, groceries, poultry, meat, seafood and beverages.
Hyperpure has direct contact with farmers, producers, and processors to source these products.
On August 1, 2020, Zomato offered a facility called Zomato Pro, a customer loyalty program. The subscription-based program offers discounts on the best restaurants across dine out and delivery.
Due to the highly successful business model, Zomato is able to generate more revenue, which helps restaurants to drive more sales. Furthermore, the company also host Zomaland, India’s greatest food carnival that brings some of the top eateries, DJs, musicians, and stands up comedians under one roof.
Due to its vast services that spread across the world, the Zomato brand is widely recognized across India. They are widespread and recognized across India. In 2020, the company popped up in the headlines when it acquired UberEats.
Ona recent basis, the company received approval from the CCI or Competition Commission of India to acquire a 9.3% stake in Grofers, an online delivery platform.
Now, they also ventured into cloud kitchen space in which multiple brands/restaurants can prepare food for takeaway or delivery.
As of 2020, Zomato App has been the most downloaded application under the food and drink category in India. Keeping this in mind, restaurants pay a significant amount of fees to the company so that they can be easily available on Google Playstore and iOS App store.
Now, the company has 3.89 lakh active restaurant listings and more than 1.69 lakh delivery partners. It has 15 Lakh Zomato pro members and ~ 3.2 crore monthly active users.
The members are present in more than 500 cities in India. The company's operations are also spread across 24 countries including Canada, Australia, New Zealand, United Arab Emirates. Due to its vast spreading of operations, the company has decided to start the usage of Electric vehicles (EV) for delivery by 2030.
The issue was publicly opened on July 14 and closed on July 16. The price of Zomato IPO per lot was fixed at Rs 72-76 per share. The fresh issue of shares (of the face value of Re 1 each) aggregates to Rs 9000 Crore.
The IPO consists of an OFS or Offer For Sale by a promoter called Info Edge India Ltd, which aggregates up to Rs 375 Crore. Investors who want to invest in the Zomato IPO, are required to go through a bidding process with minimum equity shares of 195 (1 lot). You will need a minimum of Rs 14,820 to apply for the Zomato IPO. Retail investors apply for 2,535 equity shares (13 lots).
Zomato Utilizes the Income Generated from IPOs for the following purposes:
If we look at the overall structure of the IPO then, we will get to know that Zomato firmly prioritizes its duties towards the growth of the company. At the same time, the promoters of the company will continue to hold a fixed stake in the firm, which makes sense in the company’s future prospectus.
FY 2018FY 2019FY 2020Revenue487.01,397.72,742.7Expenses594.03,607.95,006.3Comprehensive Income-104.1-1013.1-2,362.8Margin %-21.4-72.5-86.1
One of the primary risk factors in Zomato DRHP is:
Zomato has seen exponential growth over the years. However, the company said that it may not be able to sustain its historical growth rate. At the same time, its historical performance may not depend on its future growth and financial results.
The company has experienced huge losses in the past few years. It expects a rise in costs and losses in the future.
The financial performance and operations of the company could be adversely affected if they are unable to increase revenue, growth and maintain cash flows.
The COVID 19 pandemic has impacted the company’s online food ordering business to a greater extent. It has been seen that many restaurants were temporarily closed due to heavy lockdown.
Zomato’s business would be negatively affected if they fail to retain the existing restaurant partners or food delivery partners.
Zomato’s IPO is heavily subscribed by the HNI and retail investors on the launching of its first day. This is because it is a brand that everyone loves, admires and depends on. As per the interview, Zomato delivery partners gave us a satisfactory note that they are happy with Zomato’s perks and remuneration.
Because of its oversubscription and GMP (Grey Market Premium), investors of the IPO received huge benefits through listing gains.
Applying for an IPO is quite subjective and if you are planning to buy Zomato’s shares, don't’ forget to check all the pros and cons.
सोने के भाव एमसीएक्स और कॉमेक्स में लगातार चार सप्ताह से बढ़त बनाए हुए है। सोने के विपरीत चलने वाला डॉलर इंडेक्स पिछले चार सप्ताह से सीमित दायरे में बना हुआ है और ऊपरी स्तरों पर इसमें दबाव भी रहा है जिसके चलते सोने के भाव को अच्छा सपोर्ट मिला है।
अमेरिका की लम्बी अवधि की बांड उपज में लगातार तीसरे सप्ताह गिरावट दर्ज की गई है और 10 साल की बांड उपज 1.54 प्रतिशत से घटकर 1.33 प्रतिशत तक के स्तरों पर है। निवेश के लिहाज से सोने के विकल्प के रूप में देखे जाने वाले बिटकॉइन में बिकवाली का दबाव बना हुआ है और यह पिछले सप्ताह 6 प्रतिशत टूट गया है जिससे निवेशकों का रुझान सोने की तरफ बना हुआ है।
अमेरिकी फेड प्रमुख जेरोम पावेल ने अपने बयान में मुद्रास्फीति को अस्थाई बताया है और सेंट्रल बैंक द्वारा अमेरिकी अर्थव्यवस्था को सपोर्ट करते रहने को कहा। हालांकि, निवेशकों को व्यापक रूप से उम्मीद है कि फेड 2022 के अंत तक संपत्ति की कमी शुरू कर देगा और 2022 की शुरुआत में ब्याज दर में वृद्धि की भी संभावना है।
लेकिन यह भी स्वीकार करना होगा कि कोविड डेल्टा संस्करण का डर एक बड़ा आर्थिक जोखिम बना हुआ है जिससे सोने के भाव को सपोर्ट है। सोने के प्रमुख उपभोक्ता चीन से दूसरी तिमाही के सकल घरेलू उत्पाद (जीडीपी) के आंकड़े अनुमान से कम दर्ज किये गए है। कच्चे माल की उच्च लागत और नए कोविड -19 के बढ़ते मामले जीडीपी में धीमी वृद्धि के कारण रहे है।
घरेलु वायदा सोना 0.7 प्रतिशत सप्ताह में तेज़ रहा और कीमते 48250 रुपये प्रति दस ग्राम के करीब रही। चांदी के भाव में भी सुधार रहा लेकिन यह सप्ताह में सपाट रह कर 69300 रुपये प्रति किलो पर रहे।
इस सप्ताह सोने और चांदी में हल्के सुधार के बाद तेज़ी रहने के आसार नज़र आ रहे है। सोने में 48600 रुपये पर प्रतिरोध और 47500 रुपये पर सपोर्ट है। चांदी में 71000 रुपये पर प्रतिरोध और 68400 रुपये पर सपोर्ट है।
अमेरिकी फेड की नई मुद्रा नीति पर बैठक के बाद सोने के भाव में फिर बढ़त देखि गई। एक मजबूत होता डॉलर और घटती यू.एस. ट्रेजरी उपज सोने के लिए लाभ को सीमित भी कर रही है। डॉलर, जो आमतौर पर सोने के विपरीत चलता है, तीन महीने में अपने उच्चतम स्तर पर पहुंच गया है। लेकिन अमेरिकी बांड उपज में गिरावट सोने के भाव को सपोर्ट कर रही है।
फेड की जून की बैठक के मिनटों ने संकेत दिया कि केंद्रीय बैंक 2021 के अंत तक अपनी संपत्ति खरीद को कम करने की दिशा में कदम उठा रहा है। हालांकि फेड अधिकारियों ने अमेरिकी आर्थिक सुधार पर आगे की प्रगति को जारी रहना जरुरी बताया और वे सहमत हुए की उम्मीद से ज्यादा जल्दी संपत्ति को घटाने की आवश्यकता है।
जबकि यूरोपियन सेंट्रल बैंक द्वारा फेड के विपरीत नजरिया रखा गया है। अटलांटा फेड के अध्यक्ष राफेल बॉस्टिक ने चेतावनी दी कि अधिक घातक डेल्टा प्लस संस्करण कोवीड-19 मामलों में एक नया उछाल लेकर आ सकता है और उपभोक्ताओं को बाज़ारो से दूर कर सकता है जो अमेरिकी सुधार को धीमा करने का कारण बन सकता है।
उधर, चीन की सरकारी बॉन्ड यील्ड में तेजी से गिरावट आई, क्योकि अधिकारी अर्थव्यवस्था का समर्थन करने के लिए बैंकों के रिज़र्व रेश्यो में समय पर कटौती का उपयोग करेंगे। पिछले सप्ताह चीन की तरफ से रिज़र्व रेश्यो रेट 0.5 प्रतिशत घटाया गया है। कॉमेक्स में सोना 1 प्रतिशत सप्ताह में तेज़ होकर 1800 डॉलर प्रति औंस और घरेलु वायदा सोना भी करीब 1 प्रतिशत तेज़ होकर 47700 रुपये प्रति दस ग्राम पर रहा है।
सोने और चांदी में इस सप्ताह तेज़ी बनी रहने की सम्भावना है। सोने में 48400 रुपये पर प्रतिरोध है और 47400 रुपये पर सपोर्ट है। चांदी में 71000 रुपये पर प्रतिरोध और 66000 रुपये पर सपोर्ट है।
Many people think that doing investment is a challenging job as it requires a lot of hard work, patience and a little bit of research. This can be true to some extent but not fully. Investments can give you outstanding results if done properly.
Make sure that all the investment that you have made or will make should be under control with your investment profile that includes income, expenditure risk profile and financial goals.
You can select an investment option that depends on your affordability such as lump sum amount or SIP.
The investment mode can make a difference in one’s portfolio. To learn more, let’s understand the difference between the duo.
SIP and lump sum investment allow investors to benefit from huge wealth creation. However, the primary difference between lump sum and SIP is the frequency of investment.
SIP refers to the Systematic Investment Plan that allows you to invest a fixed amount periodically.
Many schemes declared the minimum SIP amount is ₹500. Investors are required to submit the NACH mandate at the starting of SIP that enables the fund houses to debit the SIP amount from the bank account of the investors on a fixed date every month.
With a lump sum option, investors are required to invest a lump sum amount in a mutual fund scheme depending completely on their choice.
You are free to select any amount and then withdraw the same anytime if you have invested in an open-ended scheme. However, ELSS has a lock-in period.
A regular income person always prefers SIP over Lumpsum in SIP. But why is SIP better? This eliminates the burden to invest a huge amount at once. A salaried person who invests in equity funds and seeking long-term investment, SIP is highly recommended.
Also, investing in SIP always works when the market falls. It happens because investors can accumulate a large number of mutual fund units when the price is low.
If we break down the monthly SIP of ₹5,000/month in the same returns for the five years, you will receive a return that would be close to ₹4,10,000 at the end of 5 years.
1. Investors Don’t Necessarily Require to Monitor the Market Closely
Lump-sum investments mean bulk commitments that investors must have known when they enter the stock market. It is suggested to do investment in lumpsum investment only if you invest when the stock market is low.
In the case of SIP, you can enter the market during different stock market cycles. Investors don't require to watch market movements as closely as they would for lump sum investments.
2. Low Investment Requirements
You can begin investments with as little as ₹500 per month. However, lump-sum investments require at least ₹1000 although mutual funds in India set a lower limit as ₹5000. To calculate the estimated returns, investors can use SIP calculators.
3. Power of Compounding
SIP works on the power of compounding. In this, the interest earned on SIP investments is reinvested in the scheme.
4. Averaged Costs
As SIP leads to mutual fund purchases during different market cycles, the cost per unit is averaged out over the overall investment horizon.
More units are purchased during a market low, compensating for purchases made during a market high. This can help tide over market fluctuations and even out the cost. Units can then be sold when the market is performing well.
5. Inculcate Financial Discipline
SIPs improve your financial discipline as it automatically puts you in the habit of saving frequently.
The following factors help you to identify the right investment route:
1. Amount
If you have a huge amount in your bank, a lump sum investment may be a good strategy for you as it saves you from spending a huge amount of money. If you are a salaried person, then SIP would be a good option for you.
2. Market Timing
When a stock market becomes low, lump-sum investments will generate high returns. If you are not comfortable with the stock market cycle, SIP will help you as it can minimize your market risks.
3. Fund Type
Market volatility plays a crucial role when it comes to stock market returns. In the case of equity funds, market volatility highly matters. Debt funds are less affected by the market trends and give higher returns for SIP and lump sum investments.
Highly Affordable
SIP helps you to start your investment with a minimum amount of ₹500.
Disciplined Investing
SIP helps you to maintain disciplined investing as with SIP
Power of Rupee Cost Averaging
Rupee Cost Averaging helps in reducing the average price of the purchased units.
Less Stressful
SIPs minimize the requirement for you to time the market. You can invest a fixed amount every month throughout the life cycle.
Power of Compounding
If you make a lump sum investment of ₹3,00,000 in an equity fund for 5 years that gives 12% returns per year, the estimated returns would be around ₹5,25,000.
Better Control on Investments
Lump-sum investments allow you to switch between the schemes that are based on the market conditions and you can earn higher returns. However, this requires considerable investment experience.
Investment via SIP or Lumpsum always offers you better returns than other investment types. If you are a beginner who wants to start investing with less risk, always go for SIP as it may provide you with good returns. Also, with SIP you get the returns that are heavily based on compounding effects.
सोने और चांदी मे ब्याज दरें बढ़ोतरी के निर्णय के बाद आई मंदी आगे तक जारी रहने की सम्भावना नजर नहीं आ रही है। निचले स्तरों पर सोना और चांदी के भाव पिछले सप्ताह सपोर्ट लेते दिखे और कीमते सीमित दायरे में रहने के बाद हल्का सुधार दर्ज किया गया है। चांदी के भाव में भी पिछले सप्ताह सकारात्मक कारोबार रहा। सोने के विपरीत दिशा में चलने वाला डॉलर इंडेक्स में ऊपरी स्तरों पर दबाव बना है।
और 10 साल अमेरिकी बॉन्ड यील्ड में सामान्य तेज़ी रही। क्रिप्टो करेंसी बिटकॉइन मे पिछले सप्ताह दबाव बना रहा। अमेरिकी फेड के अन्य सदस्यों के अनुसार मुद्रास्फीति छोटी अवधि में मुद्रा नीति निर्धारकों के अनुमान से ज्यादा हो सकती है। जबकि फेड प्रमुख जेरोम पॉवेल ने पिछले सप्ताह ब्याज दर वृद्धि को धीमी गति से बढ़ाने पर जोर दिया है।
जिससे कीमती धातुओं में हुई गिरावट थम गई है। डॉलर इंडेक्स मे सप्ताह में 0.5 प्रतिशत की गिरावट रही जबकि कॉमेक्स में सोना पिछले सप्ताह 0.7 प्रतिशत तेज़ हुआ और 1800 डॉलर प्रति औंस से 1770 डॉलर के दायरे मे कारोबार किया। एमसीएक्स में सोना 0.7 प्रतिशत और चांदी 1 प्रतिशत तेज़ी रही। अगस्त वायदा सोना 47050 रुपये प्रति दस ग्राम और जुलाई वायदा चांदी के भाव 68300 रुपये प्रति किलो पर रहे।
इस सप्ताह सोने और चांदी मे तेज़ी रहने की सम्भावना है। इसमें 46600 रुपये पर सपोर्ट है तथा 47400 रुपये पर प्रतिरोध है। चांदी में 67000 रुपये पर सपोर्ट और 69000 रुपये पर प्रतिरोध है।
Any investment portfolio whether it is of the stock market or other, is often associated with different types of risks.
No one knows when there may be a stock market crash but to cope with it, we can take certain measures to minimize the stock market risks by using tested and certified tactics.
The most appropriate way to save your portfolio from the stock market crash is hedging and diversification.
Whether you are planning to pick an individual stock or ETF investing, a lot of hedging strategies can be used to minimize the downside risks and other risks as well.
Hedging in finance refers to a list of strategies that help us to reduce the risk of uncertainties while monitoring our current finances.
Hedging tactics help investors to limit their strategies arising because of ups and downs in the price of the investment.
In short, hedging in the stock market acts as a safeguard against the losses occurring from the investment strategies.
Portfolio hedging is a list of strategies used by investment managers that mitigate the risks of adverse price movements in an asset.
For example: if we have an open position in the stock that is trading at Rs. 200, but due to some negative news circulating in the market regarding the stock, the price of the stocks has fallen.
Now, to mitigate the losses, we can choose an alternative path by taking a short position in the same stock in the derivative market.
You can implement a hedging process by buying another asset that has the ability to give you high returns with less time or by short selling an asset. Many investors use short selling during the stock market crash as they find the best way to overcome the potential losses.
It may be noted that hedging is used to reduce or minimize the losses but it cannot eliminate the complete risks associated with the stocks. Hence many investors only hedge a part of their portfolio so as they can save themselves from a complete loss.
Derivatives
Derivatives are the most effective hedging tool that is used against their underlying assets. Traders mostly use derivatives as a strategy where the loss for one investment is compensated by the gain of incomparable derivatives.
Derivatives are the financial contracts that derive their value from an underlying asset such as stock, commodity, currency or more. An option is a type of derivative that gives you the right but not an obligation to buy or sell a specific stock within a particular time.
Using Derivative as a Hedging Tool
Let’s consider a hypothetical situation, where you bought a stock with a belief that the price would go up. At the same time protect your stocks against the losses if the prices move down.
Here, we can hedge several risks associated with a stock with a put option. In a put option, we can have the right to sell the stock at the same price. For that, you have to buy a premium.
If the price of the stock falls, then we can exercise the put option and bring back the amount we invested minus the premium amount that we paid for the put option.
If we couldn't use the premium option as a hedging tool here, we would have lost the full investment amount.
Another hedging tool we can use is “Diversification”. In this strategy, we add multiple stocks to our portfolio that doesn’t rise or fall simultaneously. If the price of one asset collapses, the others remain safe. For instance, to minimize risks, many investors own bonds to compensate for the losses occurring from the stocks.
Thus when the stock price falls, the bond prices rise or vice versa.
Below are the 5 hedging strategies commonly used by investment managers to minimize the risks:
1. Forward
The forward contract refers to the agreement in which traders can buy or sell underlying assets at a fixed price on a date that is pre-defined by the two parties. Forward contracts include many contracts such as forward exchange contracts for currencies, commodities and more.
2. Futures
A futures contract refers to a contract where two parties agree to buy and sell a particular asset at a predetermined price at a specified date in the future.
3. Money Market
A money market is a type of financial market where short term buying and selling can be made with financial assets that are having a maturity of one year or less such as selling, borrowing, lending with a maturity of one year or less.
1. Asset Allocation
Traders use asset allocation to diversify their portfolio with more than one asset class used. For instance, traders can invest 60% in equity and the rest 40% in other asset classes such as bonds, derivatives in order to have a balanced portfolio.
2. Structure
Traders can invest a part of the portfolio in debt and others in derivatives. As the debt portion maintains the stability of the portfolio, derivatives on the other hand protect the portfolio from the downside risk.
3. Options
The option is a good strategy that helps traders to buy a put option to reduce the losses from the equity market.
Hedging is used to overcome potential losses in the stock market. A hedge is an investment that protects our finances from a risky situation. It is done for minimizing the chance that your asset will lose its value and also limits our losses to a known amount if the asset does lose value.
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