FinBytes

India's digital economy has changed thanks to Unified Payments Interface, which has also sped up the country's move toward a cashless society. In comparison to other payment systems throughout the world, India's UPI system is noticeably more advanced.

According to NPCI, Unified Payments Interface transactions in India increased by 7.7% in October to reach 730 crores, with a total value of more than Rs. 12.11 lakh crore. There were 678 billion UPI transactions in September, with a total value of Rs. 11.16 lakh crore.

Phone Pe

PhonePe is an Indian financial technology and digital payments company with its headquarters in Bengaluru, Karnataka, India.  Sameer Nigam, Rahul Chari, and Burzin Engineer cofounded PhonePe In December 2015.  The PhonePe app, which is based on the Unified Payments Interface (UPI), went online in August 2016. Flipkart is the owner of PhonePe.

G-Pay

Google Pay is a mobile payment service that allows customers to use their Android watches, tablets, or phones to make payments for goods and services in-app, online, and in-person.

PhonePe and Google Pay made up 83% of the total amount of Unified Payments Interface payments

Paytm

Based in Noida, Paytm is an Indian provider of financial services and digital payments. Vijay Shekhar Sharma launched it in 2010 under One97 Communications.

The transaction values at Paytm Payments Bank, the third-largest UPI provider, increased by 34% month over month to Rs 80,508 crore with an 11% market share.

CRED

CRED is a Bangalore-based fintech business in India. It is a credit card payment app that uses rewards that was established in 2018 by Kunal Shah. Additionally, Cred offers short-term credit lines and allows customers to pay their rent on their homes

Cred, a financial start up, tripled its market share to 1.8% in H1FY22 from a mere 0.42% in H1FY21 on the strength of its inclusion on the coveted unicorn list.

Others

Whatsapp Pay

Despite a sluggish start, analysts predict that Whatsapp Pay will quickly overtake Walmart's PhonePe and GPay to win the most market share if it receives regulatory approval to launch fully.

Since its inception in December 2020, Whatsapp Pay has garnered a minuscule amount of market share in India's escalating UPI competition. Only 0.58 million UPI transactions out of the total 2.7 billion were handled by WhatsApp Pay in March. In reality, Whatsapp's payment service's transaction volume dropped to 0.56 million in January, the second month after it launched, from 0.81 million in December. Since then, the volume of transactions has remained constant.

Bhim

The National Payments Corporation of India created the Unified Payments Interface-based mobile payment app called BHIM.

Amazon Pay

Online payment processing service Amazon Pay is owned by Amazon. Launched in 2007, Amazon Pay focuses on offering consumers the opportunity to use their Amazon accounts to make purchases on websites run by external merchants while utilizing the customer base of Amazon.com.

NPCI Take and Rules ahead

The country's UPI operator, NPCI, declared last month that it will impose a cap of 30% on each player's transaction volume starting in 2021.

According to the rules, the market cap will be determined by the monthly transactions made on the app and will not take into account the total number of users.

When the number of transactions on a certain app exceeds the 25% transaction limit, NPCI will send an alert to the firm that owns the app. When the transactions on the same app exceed the 27% mark, a second alert will be sent. The total number of transactions conducted by UPI over the previous three months will be considered to determine the cap of 30%.

Existing players and third-party app providers (TPAPs) who exceed the set cap will have two years starting in January 2021 to gradually comply with the new rules.

Market giants Google Pay and PhonePe have strongly criticized this decision, arguing that it violates UPI's "free market" principles and might impede the development of the nation's payment infrastructure.

Conclusion

According to UPI's announcement in October 2020, there were 2,071.62 million total transactions, of which 1,655 million were completed using either PhonePe or Google Pay. Just four UPI applications handled over 97% of all transactions, while the remaining 17 UPI apps managed less than 3%.

Introduction

Pidilite Industries Limited is a multinational chemical firm based in India. Founded by Balvant Parekh, Mr Madhukar Parekh is its current Chairman. It has been a leader in consumer and specialty chemicals in India since its establishment in 1959.

The headquarters of the business is in Mumbai, Maharashtra, India. The corporation operates five cutting-edge technological research and innovation facilities in Singapore, Thailand, Brazil, Dubai, and the United States in addition to three fully equipped internal R&D centres in India. The company employs more than 6,000 employees and has an annual revenue of 7300 crore rupees.

Up till now, four investments have been made by Pidilite Industries Limited. When Build Next raised $3.5M on July 7, 2022, they made their most recent investment. Pidilite Industries Limited has purchased three businesses. Huntsman Advanced Materials was their most recent purchase as of October 30, 2020. For 21 B, they bought Huntsman Advanced Materials.

Did you know that LIC holds around 3% shares of Pidilite?

Talking about its Top 7 shareholders, the list includes:

Holder Name Holding (%)

• Genesis Indian Investment Co Ltd 5.0
• Life Insurance Corporation Of India 3.0
• Axis Asset management Co Ltd 2.3

• Vanguard Group 0.9

• Blackrock Inc. 0.8

• Norges Bank 0.7

• UTI Asset Management Company 0.4

More than two-thirds of total sales come from its product range which primarily includes Adhesives and Sealants, Construction and Paint Chemicals, Automotive Chemicals, Art Materials, Industrial Adhesives, Industrial and Textile Resins and Organic Pigments and Preparations

Financials of Pidilite Industries Limited:

Around 15% of Pidilite Industries' total sales come from the industrial segment area, while the majority of those sales come from the consumer and retail market, which includes flagship products like Fevicol and M-Seal.

This only implies that these stock's major drivers continue to bring volume growth in the consumer and retail segments.

Over the years, Pidilite industries have proved to be a multibagger stock. Have a look at its story:

Growth of Pidilite Industries Ltd:

1. In the last quarter, solid demand conditions and staggered pricing actions drove robust double-digit revenue growth.
2. Consumer and Bazaar (C&B) and Business to Business (B2B) both had broad-based expansion, with metropolitan areas experiencing faster development than rural areas.
3. All categories and B2B growth were up, according to C&B, with continuous growth in industrial activity as well
4. The ongoing rise in input costs is having an effect on gross margins. Through pricing strategies, increasing volumes, and operational improvements, the business maintained EBITDA margins within its historical range. It has also continued to invest in its brands.
5. C&B's domestic affiliates reported solid revenue growth. Due to a rebound in real estate and construction-related activity, domestic subsidiaries' B2B performance has improved sequentially.

Impact on Stock Market:

The optimism among investors appears to be maintained by two sources. Pidilite holds a dominant position in the adhesives industry. Additionally, it is said that since the adoption of the goods and services tax, it has been gaining market share from unorganized businesses. Since there is intense competition, price hikes by paint manufacturers might harm short-term demand, particularly in the decorative market.

Conclusion

Further seeing given its strong brand, solid balance sheet position, and practically unrivaled supply chain network in the sector, the firm will be a forerunner in sales recovery and wealth compounding.

The period of November saw a series of IPOs delivering, leaving the financial investors happy. India's greatest IPO to date, PAYTM, worth Rs 18,300 Crores opened up to the world in November 2021.

Sigachi Industries, which opened up to the world on the fifteenth November 2021, returned over 250% on opening, making it one of the top-performing SME-IPOs of the Month.

The COVID-19 pandemic has been unpleasant for the worldwide economy, yet India's market has recuperated rapidly. Right now, the securities exchange is enjoying some real success, and firms are attempting to receive its rewards by opening up to the world in this time frame.

Checking out this, here we bring to you the following IPOs that are lined up to open up to the world in December 2021.

Let’s take a detailed insight into the companies that are going live in December 2021:

Company Name IPO Size Date of Launching Go Airlines Rs 3,600 Crores To Be Announced RateGain Rs 375 Crore7 Dec-9 Dec 2021Anand Rathi WealthRs 660 Crore2 December - 6 DecemberEmcure PharmaceuticalsRs 4,500 CroresTo Be AnnouncedStar Health & Allied InsuranceRs 3000 CroreTo Be AnnouncedJana Small Finance BankRs 2000 CroreTo Be AnnouncedCMS InfosystemsRs 2000 CroreTo Be AnnouncedMobiKwikRs 1,990 CroreTo Be AnnouncedArohan FinancialsRs 1800 CroreTo Be AnnouncedNorthern Arc CapitalRs 1,800 CroreTo Be AnnouncedIxigoRs 1,600 CroreTo Be AnnouncedPenna CementRs 1,500 CroreTo Be AnnouncedEuro PanelINR 7014-16 DecemberSterlite Power Transmission--To Be AnnouncedRategain TRavel Technologies--To Be AnnouncedESAF Small Finance Bank--To Be AnnouncedShriram Properties--To Be AnnouncedShri Bajrang Power & Ispat--To Be AnnouncedStudds Accessories Limited--To Be Announced

Euro Panel

Also known as Archer trading house Pvt limited, Euro Panel is known for manufacturing several Aluminium composite panels in different designs, colors and textures.

ACPs are majorly used for the exterior covering of commercial buildings.

The subscription date of Euro panel is 14 -16 December. The OFS for the company is 8,28,000 shares whereas the fresh issue of shares is 56,72,000 shares. The lot size of the company is of total 2000 shares.

RateGain Travel Technologies

The company is a prominent name in distribution technology globally and also, it is the SAAS provider company in the travel and hospitality industry in India. It offers services like travel and hospitality services across different vertices like hotels, airlines, package providers, car rentals, cruises, hotels and ferries.

Anand Rathi Wealth

Anand Rathi wealth is a leading non-wealth solution company in India and has been ranked amongst the top three non-bank mutual fund distributors in India by gross commission earned in Fiscal 2020.

It serves a wide spectrum of clients via wealth solutions, financial product distribution and technology solutions.

Emcure Pharmaceuticals

Emcure Pharmaceuticals is a leading organization in the pharmaceutical industry that has plans to open up to the world about an IPO of about Rs. 4,500 crores.

This IPO will involve both new equity shares and an OFS.

Around 18 million shares will be accessible under an offer for sale by the organization advertisers and existing shareholders.

While the new issue value will incorporate an offer of about Rs. 1,100 crores.

The primary goal of this public offering is to reimburse the current debts of the organization.

Go Airlines

GO Airlines is one of India's leading aircraft organizations and is all set to launch its IPO of Rs. 3,600 crores on 8 December 2021. This public issue holds the only fresh issue of equity shares at a face value of Rs. 10 per share.

Furthermore, the organization also plans an anchor investment of Rs. 1,500 crores.

The primary goal of this public offering is to assist the organization with paying off its present debts and meet general corporate purposes.

Star Health and Allied Insurance Co. Ltd.

Star Health and Allied Insurance Co. Ltd. is one of India's leading insurance providers. They are driving the rundown of India's private insurance cover provider with a market share of 15.8%.

The organization has submitted its DRHP to the Securities and Exchange Board of India. This public issue has a company valuation of about Rs. 3,000 crores.

The IPO consists of a fresh issue of equity trading shares of Rs 2000 Crore and 6 Crore equity shares under OFS.

In the last monetary year, Star Health has acquired a gross return premium of Rs. 9,438.95 crores.

According to its DRHP, this IPO will help the organization keep its solvency levels and develop its present capital base.

Jana Small Finance Bank

Jana Small Finance Bank is one of the leading finance banks of this country.

According to its DRHP, Jana Small Finance Bank's IPO will have a valuation of Rs. 2,000 crores, involving OFS and new fresh equity issue. The proposal available to be purchased should assemble Rs. 1,300 crores, and the fresh issue equity shares offers will produce the leftover Rs. 700 crores.

CMS Info Systems

CMS Info System is a notable name in the business vertical of cash management services. Its customers are spread across the financial sector.

CMS Info System has submitted its DRHP for an IPO of Rs. 2,000 crores with the Securities and Exchange Board of India. Also, this IPO will just involve a proposal available to be purchased and no new fresh issue of equity shares.

Ruchi Soya

Among this IPO fest, Ruchi Soya is an exemption with its subsequent public proposition. The organization is starting an FPO with a valuation of about Rs. 4,300 crores.

Among this IPO fest, Ruchi Soya is starting an FPO with a valuation of about Rs. 4,300 crores.

Arohan Financial Services

Arohan Financial Services has filed its DRHP record with SEBI, the organization's first sale of stock will be worth Rs. 1,800 crores. It will have a new issue of equity shares adding up to Rs. 850 crores, and an OFS of 27,055,893 value shares by current stakeholders

Penna Cement

The IPO of Penna Cement according to its DRHP will be worth Rs. 1,550 crores. It will involve a fresh issue of equity shares adding up to Rs. 1,300 crores and make available for the purchase of Rs. 250 crores.

Utkarsh Small Finance Bank

This IPO will have a valuation of Rs. 1,350 crores. This incorporates an OFS of Rs. 600 crores and a fresh issue of equity shares of Rs. 750 crores.

Fincare Small Finance Bank

According to their DRHP, this IPO will have a valuation of about Rs. 1,330 crores, including a new fresh issue of equity shares of Rs. 330 crores and OFS of Rs. 1,000 crores by the company promoters.

ESAF Small Finance Bank Ltd

ESAF Small Finance Bank is one more SFB that is going public in FY2022. At first, the monetary organization had plans to go public in mid-2021, yet the pandemic halted that progress.

The DRHP of this IPO will have a valuation of Rs. 998 crores. This will incorporate fresh issue equity shares of Rs. 800 crores, and the leftover Rs. 198 crores are through and OFS.

Takeaway

Since many IPOs are knocking at your doors in the last of the Year 2021, it would be imperative for you to make yourself prepared and get the chance to put resources into new age technology-empowered companies. However, before investing, you must have a Demat Account with a SEBI enrolled stock broker!

IPO Note : RATEGAIN TRAVEL TECHNOLOGIES LTD.

KEY MANAGERIAL PERSONNEL

⮚ Bhanu Chopra is the Chairman and Managing Director of the Company. He is also one of the Promoters of the Company and has been a member of the company’s Board since incorporation. He is an entrepreneur with experience of over 15 years.

⮚ Megha Chopra is an Executive Director of the Company. She is also one of the Promoters of the Company and has been a member of the Company’s Board since incorporation. Prior to her directorship in this Company, she was associated with HCL Infosystems Limited.

⮚ Nishant Kanuru Rao is a Non-Executive Nominee Director of the Company. Currently, he is a partner at Avataar  Venture Partners, which was founded by him in 2019.

⮚ Girish Paman Vanvari is an Independent Director of the Company. He was appointed to the Board of the Company on June 29, 2021.

Previously, he has been associated with KPMG, India as the national head of tax.  Currently, he is a partner at Transaction Square, which was founded by him in 2018.

⮚ Aditi Gupta is an Independent Director of the Company. She was appointed to the Board of the Company on  July 15, 2021. She has experience of over 10 years as a company secretary.

⮚ EC Rajakumar Konduru is an Independent Director of the Company. He was appointed to the Board of the  Company on July 15, 2021. He is a venture capitalist with an experience of over 13 years in equity investments.

COMPETITIVE STRENGTHS

⮚ Marquee global customers with long-term relationships

⮚ Innovative AI-driven industry-relevant SaaS solutions.

⮚ Diverse and comprehensive portfolio of revenue maximization and business-critical solutions

⮚ Strong financial performance with a track record of successful acceleration post acquisitions

⮚ Strong Global and diverse management team with relevant technology and domain expertise and focus on  employee welfare

KEY STRATEGIES

⮚ New product development capabilities.

⮚ Continue to scale DaaS and Distribution offerings through cross-selling and geographical expansion in existing and  adjacent verticals

⮚ Focus on MarTech solutions for the hospitality and travel sector

⮚ Continue to leverage unique data assets to create new AI product offerings

⮚ Pursue strategic investment and acquisition opportunities

KEY CONCERNS

⮚ The company is running at a loss for the last two financial years.

⮚ The hotel and travel industry has suffered a lot due to the COVID epidemic.

⮚ The activities of a small number of marketplaces account for a substantial percentage of their revenue.

⮚ Exchange rate changes may negatively affect their results of operations.

⮚ Failure to defend their intellectual property rights may have a negative impact on their business and brand

⮚ Failure to deliver excellent customer service and assistance may have a negative impact on their existing client relationships.

COMPARISON WITH LISTED INDUSTRY PEERS

There are no listed companies in India that engage in a business similar to that of the Company. Accordingly, it is not possible to  provide an industry comparison in relation to the Company

FINANCIALS (RESTATED CONSOLIDATED)

Particulars (Rs. In Millions) FY 2021 FY 2020 FY 2019Equity Share Capital 6.55 6.55 6.55Instrument entirely equity in nature 1.48 0.85 0.85Other Equity 2,441.18 1,369.84 1,424.89Net Worth 2449.21 1377.24 1432.29Total Borrowings 1117.93 1158.08 244.19Revenue from Operations 2,507.93 3,987.14 2,615.74EBITDA 194.57 338.59 328.84Profit Before Tax (246.28) (177.62) 94.87Net Profit for the year (285.75) (201.04) 110.34

Sapphire Foods India limited one of YUM’s franchisee operators in the Indian subcontinent. They are also Sri Lanka’s largest international QSR chain, in terms of revenue. Company also established a presence in the Maldives. Company-owned and operated 209 KFC restaurants in India and the Maldives, 239 Pizza Hut restaurants in India, Sri Lanka and the Maldives, and two Taco Bell restaurants in Sri Lanka. They operate their restaurants in high traffic and high visibility locations in key metropolitan areas and cities across India and develop new restaurants in new cities as part of their brand and food category expansion. The company has an in-house supply chain function and works with vendor partners for food ingredients, packaging, warehousing, and logistics. The company operates warehouses across 5 Indian cities and has invested in building technology solutions in their restaurants. The company employs YUM brand's global online and digital channel solutions to enhance customer experience and achieve operational efficiency and financial control.

• Food services is a key segment in the Indian economy, with a market size of US$26.8 billion in the financial year 2021 growth of the food services sector in India is expected to grow more.
• Company’s franchisee Arrangement also provides a right to use YUM’s system and system property covering all aspects of business operations, as well as the flexibility to undertake, with YUM’s approval, local or regional promotions, while meeting YUM’s global quality assurance standards.
• The organized market, consisting of chain and organized standalone outlets, is expected to increase its share in the food services market in India from 37.8% in financial year 2020 to 51.3% in financial year 2025.

Outlook & Valuation:

The Company recorded a loss of Rs (99.89) cr. in the financial year FY21 against a loss of Rs (159.25) cr. in the previous year FY20. Revenue from operations in the same period declined to Rs 1,019.62 cr. in FY21 from Rs 1,340.41 cr. in FY20 due to the Covid-19 crisis. The issue is priced at a P/BV of 14.63 based on its NAV of Rs. 80.67 as of June 30. Sapphire Foods is a Leading quick-service restaurant brand with a large market presence and size. Their initial public offer will be a pure offer for the sale of its equity shares; also the company is loss-making in the last three financial years. The company aims to break even in the near future. We are in a bull run of IPO's where new edge businesses are on the front seat. IPO euphoria might lead to listing gain as the IPO is arriving at a P/S of 7x which is half to its peers however we expect the peers to outperform Sapphire Food over the long run. Thus we assign a "SUBSCRIBE" rating with a cautious view.

KEY MANAGERIAL PERSONNEL

• Sanjay Purohit is the Whole Time Director and Group CEO of the Company. He has over 30 years of work experience across consumer product categories including food and apparel retail, packaged food, and paints.
• Sunil Rewachand Chandiramani is the Chairman and Independent Director of the Company. He has experience of over 29 years and has worked in the field of accounting and advisory services.
• Sumeet Subhash Narang is a Non-Executive Director of the Company as a nominee of Sapphire Foods Mauritius Limited.
• Manish Mehta is a Non-Executive Director of the Company as a nominee of Sapphire Foods Mauritius Limited. He has experience of over 17 years.
• Vikram Ranjan Agarwal is a Non-Executive Director of the Company as a nominee of QSR Management Trust for the past 13 years and has worked in the field of private equity.
• Kabir Kishin Thakur is a Non-Executive Director of the Company. He has experience of over 14 years
• Deepa Gopalan Wadhwa is an Independent Director of the Company.
• Anu Ram Aggarwal is an Independent Director of the Company.

COMPETITIVE STRENGTHS

• Leading QSR brands with a substantial market presence and scale
• Strong relationship with YUM
• Continuous focus on delivering great customer experience
• Operational excellence
• Scalable new restaurant economic model for expansion
• Great place to work led by experienced management team and backed by institutional capital

KEY CONCERNS

• Company reported loss for the last three financial years and may incur additional losses in the future.
• The Coronavirus disease (COVID19) pandemic has substantially affected and may continue to affect the business
• Company will not receive any proceeds from the Offer for Sale. The Selling Shareholders will receive the net proceeds from the Offer for Sale.
• Company incurred indebtedness and may incur additional indebtedness in the future which could affect their ability to obtain future financing or pursue any growth strategy.
• There are material outstanding legal proceedings involving the Company, Subsidiaries, and Directors...

Incorporated in 2000, One97 Communications Limited (Paytm) is India’s leading digital ecosystem for consumers and merchants. Paytm offers ‘Payment Services’, ‘Commerce and Cloud Services’, and ‘Financial Services’ to 33.3 crore consumers and over 2.18 crore merchants registered with them, as of June 30, 2021.

Their 2-sided (consumer and merchant) ecosystem enables commerce, and provides access to financial services, by leveraging technology to improve the lives of their consumers and help their merchants grow their businesses.

In 2009, the company launched the first digital mobile payment platform, "Paytm App" to offer cashless payment services to customers and now, it became India's largest payment platform and the most valuable payments brand with a total brand value of US$6.3 billion as per Kantar Brands India 2020 Report.

The app enables customers to do cashless transactions at stores, top-up mobile phones, online money transfers, pay bills, access digital banking services, purchase tickets, play games online, buy insurance, make investments, and more. However, merchants can use the platform for advertising, online payment solutions, offering products to customers, and loyalty solutions. They have created a payments-led super-app, through which they offer their consumers innovative and intuitive digital products and services. They offer their consumers a wide selection of payment options on the Paytm app, which includes:

1. Paytm Payment Instruments, which allow them to use digital wallets, sub-wallets, bank accounts, buy-now-pay-later, and wealth management accounts.
2. Major third-party instruments, such as Debit and Credit Cards and Net Banking.

Offer services such as Paytm Wallet, Paytm QR, Paytm Soundbox, Gold investments, and Fixed Deposit, Paytm Postpaid, Merchant Cash Advance and FASTag.

Outlook & Valuation

The revenues of the company have been on the declining side, in FY19 revenue was at ₹3,579 cr while in FY21 it was at ₹3,186 cr. Also, it is a loss-making company with a loss of ₹(4,230.9) cr in FY19 which however reduced to ₹(1,701) cr in FY21.

We are in an era of new-age businesses where we have seen many unicorns getting listed recently. It is really arduous to provide a valuation for such types of companies. We expect only leaders will survive over a period of time and only a few such companies will be wealth creators while many can be wealth destroyers. As India is on the verge of digitalization, we may expect the company to get benefited from the same also new acquisition and strengthening of the PAYTM ecosystem from the IPO will be beneficial for the company. Thus we assign a "SUBSCRIBE" rating only for aggressive investors.

KEY MANAGERIAL PERSONNEL

• Vijay Shekhar Sharma is the Founder, Managing Director, and Chief Executive Officer of the company, and the Chairman of the Board. He oversees the Company's key strategic efforts including engineering, design, and marketing.
• Madhur Deora is the President and Group Chief Financial Officer of the company. He has been associated with the company since October 3, 2016.
• Manmeet Singh Dhody is the Chief Technology Officer, Payments. He has been associated with the company since April 1, 2020.
• Vikas Garg is the Chief Financial Officer of the company. He has been associated with the company since May 21, 2014, and was previously associated with the company from August 25, 2008, to September 28, 2012.
• Sudhanshu Gupta is the Chief Operating Officer of Paytm First Games Pvt Ltd, their Subsidiary. He has been associated with Paytm First Games Pvt Ltd since June 1, 2018.
• Bhavesh Gupta is the Chief Executive Officer of the Lending Business of the company. He has been associated with the company since August 4, 2020.
• Renu Satti is the Chief Operating Officer of Offline Payments of the company. She has been associated with the company since October 11, 2006.
• Praveen Kumar Sharma is the Managing Director and Chief Executive Officer of Paytm Payments Services Ltd. He has been associated with the company since September 2, 2019.
• Harinderpal Singh Takhar is the Chief Executive Officer of Paytm Labs Inc, their Subsidiary. He has been associated with Paytm Labs Inc. since June 2013.

COMPETITIVE STRENGTHS

• India's leading digital payment service platform.
• Strong brand identity with a brand value of US$6.3 billion.
• Large customer base with 333 million total customers, 114 million annual transacting users, and 21 million registered merchants.
• Paytm Super-app to access a wide range of digital payment services over mobile phones.
• Strong macro tailwinds.
• Increasing pace of digitization.
• Digital payments in India evolving rapidly
• Under-penetration and rising digitization of financial services

KEY CONCERNS

• They have a history of net losses and we may not be able to achieve profitability.
• The ongoing COVID-19 pandemic and measures intended to prevent its spread have had, and may continue to have, a material and adverse effect on the business and results of operations.
• The company may suffer if they are unable to retain existing customers, acquire new customers, grow the amount of consumer transactions, or increase in the client acquisition expenses.
• Their payment services account for the majority of their income. Their attempts to broaden their service offerings and market reach may not be successful, which might have a negative impact on their income.
• The business might suffer if they do not maintain or develop their technological infrastructure.

COMPARISON WITH LISTED INDUSTRY PEERS

There are no listed companies in India that engage in a business similar to that of the Company. Accordingly, it is not possible to provide an industry comparison in relation to the company

RatingSUBSCRIBE (Long Term Only)Issue OfferIssue Opens on Nov 30, 2021Issue Close on Dec 02, 2021Total IPO size (cr) 7,249.18Fresh issue 2000.00Offer For Sale (cr) 5,249.18Price Band (INR) 870-900Market Lot 16Face Value (INR) 10Retail Allocation 10%Listing On NSE, BSEObjects of the issue ⮚ To augment the company’s capital base and  insolvency level.Issue Break-up (%)QIB Portion 75NIB Portion 15Retail Portion 10Shareholding (No. of Shares)Pre Issue 553,289,944Post Issue 575,620,567Indicative TimetableFinalisation of Basis of  Allotment 07-12-2021Refunds/Unblocking  ASBA Fund 08-12-2021Credit of equity shares to  DP A/c 09-12-2021Trading commences 10-12-2021

SME-IPO of Star Health Insurance is on the boom as Star Health and Allied Insurance Company Ltd is one of the largest  private health insurers in India with a market share of 15.8% in Fiscal  2021. From being the first standalone health insurance ("SAHI") company established in India in 2006, it has grown into the largest SAHI  company in the overall health insurance market in India, according to  CRISIL Research.

Company offer a range of flexible and comprehensive  coverage options primarily for retail health, group health, personal  accident and overseas travel, which accounted for 87.9%, 10.5%, 1.6%  and 0.01%, respectively, of their total Gross written premium (GWP) in  Fiscal 2021.

Individual agents are the primary distributors of the  company's health insurance plans, accounting for 78.9% of their GWP  in Fiscal 2021. In addition, the company has successfully built one of  India's largest health insurance hospital networks, with 11,778 hospitals  as of September 30, 2021.

⮚ Company consistently ranked first in the retail health insurance  market in India based on retail health GWP over the last three Fiscal Years, according to CRISIL Research.

⮚ The retail health market segment is expected to emerge as a key  growth driver for the overall health insurance industry in India after  the COVID-19 crisis in India.

⮚ As of September 30, 2021 its distribution network had grown to  779 health insurance branches spread across 25 states and 5 union  territories in India.

⮚ The company has also successfully built one of the largest health  insurance hospital networks in India, with 11,778 hospitals, of which  7,741 hospitals, or 65.7 percent of the total number of hospitals in  their network, entered into pre-agreed arrangements with in Fiscal  2021.

Outlook & Company Valuation:

The company has mixed set on financials over the  last three years where the company's GWP has increased over the years  while the company suffered a loss in FY21. In FY19, the revenues of the  company were Rs 3713 cr while in FY21 it grew to 5283 cr.

The Profit  was at Rs 128 cr in FY19 while the company suffered a loss of Rs 825 cr  in FY21. The health insurance sector is likely to flourish as individuals  become more aware of the benefits of health insurance. If we look at  the company's financials, we can see that it was doing well until Covid  hit last year. The company has the largest market share which is  positive for the company however the industry is getting competitive.

The valuation of the company is stretched. At the upper price band of  Rs. 900, Star Health is demanding an MCAP to net premium earned  multiple of 10.3x, which is at a premium to the peer average.

IPO Note

STAR HEALTH AND ALLIED INSURANCE  COMPANY LTD IPO

KEY MANAGERIAL PERSONNEL

⮚ Venkatasamy Jagannathan is the Chairman and CEO of the Company. He holds master’s degree of arts in  economics and have more than 47 years of experience in the insurance industry

⮚ Subbarayan Prakash is the Managing Director of the Company. He has several years of experience as a surgeon  and has previously worked with Saudi Operation & Maintenance Company Limited.

⮚ Anand Shankar Roy is the Managing Director of our Company. He holds a bachelor’s degree in commerce and he has 21 years of experience in the insurance industry

⮚ Sumir Chadha is a Non-Executive Nominee Director of the Company he has several years of investing  experience in Indian companies, both public and private.

⮚ Deepak Ramineedi is a Non-Executive Nominee Director of the Company. He has several years of experience in  the private equity industry

⮚ Utpal Hemendra Sheth is a Non-Executive Nominee Director of the Company. He holds a bachelor’s degree in  commerce.

⮚ Rohit Bhasin is an Independent Director of the Company

⮚ Anisha Motwani is an Independent Director of the Company.

⮚ Berjis Minoo Desai is an Independent Director of the Company

⮚ Kaarthikeyan Devarayapuram Ramasamy is an Independent Director of the Company

⮚ Rajni Sekhri Sibal is an Independent Director of the Company

⮚ Rajeev Krishnamuralilal Agarwal is an Independent Director of the Company

COMPETITIVE STRENGTHS

⮚ Largest private health insurance company in India with leadership in the attractive retail health segment.

⮚ Largest and well spread distribution network in the health insurance industry.

⮚ Diversified product suite with a focus on innovation and specialized products.

⮚ Strong risk management with superior claims ratio and quality customer services.

⮚ Substantial investment in technology and innovative business processes.

⮚ Demonstrated track record of operating and financial performance.

⮚ Experienced senior management team with strong sponsorship.

KEY CONCERNS

⮚ Star Health Incurred Claim Ratio has increased from average 63.5% (FY2018 to FY2020) to 94% in FY21 and  91% in Q1 FY22. This is the main reason company has negative revenues and losses in the last 1.5 years.

⮚ The recent Covid-19 outbreak has had a significant impact on the company's business and operations.

⮚ They were able to keep their market share because of their strong brand name. However, if they fail to keep  such a brand name, their business will suffer.

⮚ Company can be subject to claims by customers and/or regulators for alleged mis-selling.

⮚ Insurance companies depend on the accuracy and completeness of information provided by customers and  counter parties for pricing and underwriting their insurance policies.

⮚ Any increase in competition could negatively impact the company’s profitability

IPO Note

STAR HEALTH AND ALLIED INSURANCE  COMPANY LTD IPO

COMPARISON WITH LISTED INDUSTRY PEERS (As on 31st March 2021)

Name of the Company EPS (Basic) NAV P/E Net Worth (cr) RoNW (%)Star Health and Allied Insurance Co Ltd (16.54) 63.58 - 3,484.64 (23.69)% Peer GroupICICI Lombard General Insurance Co Ltd.* 32.41 163.56 46.66 7,435.15 19.81%New India Assurance Co Ltd 9.95 112.17 15.30 18,485.38 8.81%

*ICICI Lombard General Insurance Company Ltd. is not strictly comparable with the Company as they operate under general insurance with health  insurance not forming a significant component, whereas the Company is a standalone health insurance provider.

FINANCIALS (RESTATED CONSOLIDATED)

Particulars (Rs. In Cr) FY 2021 FY 2020 FY 2019Equity Share Capital 548 491 456Other Equity 3,676 1,153 587Net Worth 4,224 1,644 1,043Total Borrowings 250 250 250Premiums earned (Net) 5,023 4,693 3,580Operating Profit/(Loss) (1,071) 361 165Profit Before Tax (1,046) 413 182Net Profit for the year (825) 268 128

Rating SUBSCRIBE Issue Offer Issue Opens onNov 17, 2021Issue Close onNov 22, 2021Total IPO size (cr)1013.61Fresh issue125Offer For Sale (cr)888.61Price Band (INR)655-690Market Lot21Face Value (INR)10 Retail Allocation10%Listing OnNSE, BSE Issue Break-up (%) QIB Portion75NIB Portion15Retail Portion10Shareholding(No.ofShares)Pre Issue52,197,390Post Issue54,008,984 Indicative Timetable Finalisation of Basis ofAllotment25-11-2021Refunds/Unblocking ASBA Fund26-11-2021Credit of equity shares toDP A/c29-11-2021Trading commences30-11-2021

SME IPO of Go Fashion gathers a lot of attention as the company Go Fashion (India) Limited is one of the largest women's bottom-wear brands in India. The company is engaged in the development, design, sourcing, marketing, and retailing of a range of women's bottom-wear products under the brand, 'Go Colors'.

The company offers one of the widest portfolios of bottom-wear products among women's apparel retailers in terms of colors and styles. It is among the few apparel companies in India to have identified the market opportunity in women’s bottom-wear and have acted as a ‘category creator’ for bottom-wear.

It was the first company to launch a brand exclusively dedicated to women’s bottom-wear category and have leveraged this advantage to create a direct-to-consumer brand with a diversified and differentiated product portfolio of premium quality products at competitive prices. The company’s bottom-wear products, which include churidars, leggings, dhotis, harem pants, Patiala, palazzos, culottes, pants, trousers and jeggings, are sold across multiple categories such as ethnic wear, western wear, fusion wear, at leisure, denim, plus sizes and girls wear making their portfolio ‘universal’ and for every occasion.

• The women’s apparel market is estimated to be approximately 36% of the total apparel market while the women’s bottom-wear market contributed 8.3% of the women’s apparel market in Fiscal 2020
• The women’s clothing market in India has evolved in the past decade from traditional one-piece apparel to two-piece and mix-and-match apparel, with bottom-wear becoming an essential
• The company serve its customers primarily through its extensive network of 459 EBOs (Exclusive Brand Outlets) that are spread across 23 states and union territories in India, as of September 30, 2021.
• The company have its in-house design and merchandising team that designs and develops bottom-wear products across categories with their deep understanding of consumers’ requirements.

Financials and Outlook

The company has mixed set on financials over the last three years where the company's revenue grew in FY20 and fell back in the year FY21. However, the fall in revenue can be due to COVID-19. Profit also turned negative in a recent year where the company reported a loss of Rs (3.53) cr in FY21 VS a profit of Rs 52.63 cr in FY20. Go Colors has a strong brand value but has fluctuating revenues and the company moved into losses in FY21 but as the number of working women is increasing along with the evolving fashion trend it is expected that the company has strong growth momentum. The company has a mixed bag of financials and IPO is arriving at a P/BV of 13.65 based on its NAV of Rs. 50.56 as of Q1FY22, which seems to be attractively priced for the investors. Thus, we assign a "SUBSCRIBE" rating for listing gain and long term.

KEY MANAGERIAL PERSONNEL

• Prakash Kumar Saraogi is the Managing Director of the Company. He is a promoter of the Company and has over 28 years of experience in garment manufacturing, fashion industry and retail industry.
• Gautam Saraogi is an Executive Director and the Chief Executive Officer of the Company. He is also a promoter of the Company and has over 10 years of experience in consumer retail, marketing, brand building and garment
• Rahul Saraogi is a Non-Executive Director of the Company. He is a promoter of the Company and has over 10 years of experience in the garment industry.
• Ravi Shankar Ganapathy Agraharam Venkataraman is a Non-Executive Nominee Director of the Company. He has over 15 years of experience in private equity funds.
• Srinivasan Sridhar is the Chairperson of the Company’s Board and an Independent Director of the Company He has over 38 years of experience in commercial and development banking and is an associate of the Indian Institute of Bankers.
• Rohini Manian is an Independent Director of the She has over 8 years of experience in real estate and management space.
• Dinesh Madanlal Gupta is an Independent Director of the Company. He has over 37 years of experience in the transport and manufacturing industry.
• R Mohan is the Chief Financial Officer of the He has been associated with the company since April 16, 2019.
• Gayathri Venkatesan is the Company Secretary and Compliance Officer of the company. She has been associated with the company since October 25, 2019.

COMPETITIVE STRENGTHS

• Largest women’s bottom-wear brand in India with well-diversified product
• Multi-channel pan-India distribution network with a focus on EBOs, enhancing brand visibility
• Strong unit economics with an efficient operating model
• Extensive procurement base with highly efficient and technology-driven supply chain management
• In-house expertise in developing and designing products
• Demonstrated track record of strong financial performance
• Continue to expand retail network with a focus on EBOs
• Leverage technology to bring cost efficiency and enhance customer experience

KEY CONCERNS

• A major part of the issue is the offer for sale which would go to selling share
• The company carries operations from a single warehouse located in Southern India which could be a geographical limitation
• The company has incurred losses for FY21 for Rs 5 Crores and revenues also declined.
• Covid-19 pandemic has impacted the company and it might continue to impact future
• Dependency on the third party for the major operational part such as transportation and manufacturing

सोयाबीन दिसंबर वायदा में पिछले सप्ताह 10 प्रतिशत का उछाल दर्ज किया गया और कीमते 6100 रुपये प्रति क्विंटल तक के स्तरों पर पहुंच गई है। सोयाबीन की फसल आने के बाद इसकी आपूर्ति कम रही जिसके कारण कीमतों में अच्छी तेज़ी देखि गई है। अमेरिकी सोयाबीन में भी पिछले सप्ताह तेज़ी रही और कीमतों में 5 प्रतिशत तक हुई है यूनाइटेड स्टेट्स डिपार्टमेंट ऑफ़ एग्रीकल्चर (यूएसडीए ) की नवंबर रिपोर्ट के मुताबिक साल 2021-22 के लिए यू.एस. सोयाबीन का उत्पादन कम रहेगा। सोयाबीन का उत्पादन 4.42 अरब बुशेल रहने का अनुमान है, जो कम यील्ड के कारण 23 मिलियन घटा है। लेकिन इसका वैश्विक आयात कम होने रहने के कारण स्टॉक में बढ़ोतरी रहने का अनुमान है। वैश्विक सोयाबीन का उत्पादन 1.1 मिलियन टन घटकर 384 मिलियन हो गया है। संयुक्त राज्य अमेरिका और अर्जेंटीना में जो उत्पादन की कमी आई है वह भारतीय उत्पादन से बराबर हुआ है। ग्लोबल सोयाबीन निर्यात 1 मिलियन टन घट कर 172.1 मिलियन टन रह गया है। चीन का आयात 1.0 मिलियन टन घट कर 100 मिलियन टन रह गया है। घरेलु बाजार में सोयाबीन की कीमते कम रहने के कारण मंडियों में आपूर्ति कम रही है। चीन में नेगेटिव मार्जिन और पॉवर कमी के कारण उत्पादन कम रहा जो आयात में कमी का एक कारण रहा है, लेकिन सामान्य होती हुई स्थिति से इसका आयात बढ़ने के आसार है। ब्राज़ील में सूखा मौसम के बीच सोयाबीन की सोइंग होने पर उत्पादन कम रहने की सम्भावना भी है। जिससे सोयाबीन के भाव में वैश्विक स्तर पर तेज़ी देखने को मिल रही है।

तकनिकी विश्लेषण

एनसीडीईएक्स दिसंबर वायदा सोयाबीन में तेज़ी रहने की सम्भावन है। इसमें ₹5600 - ₹5300 रुपये पर सपोर्ट है और ₹6300 - ₹6900 पर रेजिस्टेंस है।

Rating SUBSCRIBE

Issue Offer

Issue Opens on Nov 15, 2021Issue Close on Nov 17, 2021Total IPO size (cr)1,023.47Fresh issue150.00Offer For Sale (cr)873.47Price Band (INR)635-662Market Lot22Face Value (INR)2Retail Allocation35%Listing On NSE, BSE

Objects of the issue

⮚ For Repayment/prepayment of liabilities ⮚ For Funding of the capital expenditure

Issue Break-up (%)

QIB Portion50NIB Portion15Retail Portion35

Shareholding (No. of Shares)

Pre Issue5,09,40,420Post Issue5,32,06,281

Indicative Timetable

Finalization of Basis of  Allotment23-11-2021Refunds/Unblocking ASBA Fund24-11-2021Credit of equity shares to  DP A/c25-11-2021Trading commences26-11-2021

About Tarson Products Limited IPO:

Tarsons Products Limited is a Indian labware company engaged in the designing, development, manufacturing and marketing of ‘consumables’,  ‘reusables’ and ‘others’ including benchtop equipment, used in various  laboratories across research organizations, academia institutes,  pharmaceutical companies, Contract Research Organizations (CROs),  Diagnostic companies and hospitals.

Company’s product portfolio is  classified into three key categories which include consumables,  reusables, and others. ‘Consumables’ category includes products such as  centrifuge ware, cryogenic ware, liquid handling, PCR consumables and  petri dish, transfer pipettes and others. ‘Reusables’ category includes  products such as bottles, carboys, beakers, measuring cylinders and  tube racks. ‘Others’ category includes benchtop instrumentation such as  vortex shakers, centrifuges pipettors and others. Company is one of the  leading Indian company in terms of revenue in the plastic labware market in India

⮚ Company currently operates through their five manufacturing  facilities located in West Bengal. These facilities are vertically  integrated and equipped with automated support systems that help  them to maintain quality, increase productivity, and reduce costs.

⮚ They have over 36 years of experience in life sciences through  which they gained expertise in the production of a wide range of  labware products.

⮚ Company have received CE-IVD certificate for their products such  as micro and macro tips, cryo vials and centrifuge tubes.

⮚ Company supply their products to over 40 countries across both  developed and emerging markets through a blend of branded and  ODM sales.

⮚ They supply products to life sciences industry under the brand label‚ TARSONS WITH THE WORDS -TRUST DELIVEREDTM.

Outlook & Company Valuation:

The company has shown stable growth in  revenue in the last 3 years where we saw a minor dip in FY20 on the  back of COVID-19. Revenue of the company has grown from Rs 184.7  cr to Rs 234.3 cr over the period of FY19 to FY21; during the same  period profit has grown from Rs 39 cr in FY19 to Rs 68.9 cr in FY21.

The margins of the company have grown significantly on the back of  declining debt. Tarson products limited is a company with great brand  awareness and high-quality goods, India’s leading life sciences supplier.

The company aims to be debt fee post the IPO and is planning for  CAPEX which will further increase the revenues. The IPO is arriving at  a PE of 34x on annualized Q1FY22 EPS of Rs. 4.88 which seems to be  attractively priced. Thus we assign a "SUBSCRIBE" rating for listing  gain and long term.

KEY MANAGERIAL PERSONNEL

⮚ Sanjive Sehgal is the Chairman and Managing Director of the Company. He holds a bachelor’s degree in science  from Xavier College, Calcutta. He has over 30 years of experience in this Company.

⮚ Rohan Sehgal is the Whole-Time Director of the Company. He holds a bachelor’s degree in science (management)  from the University of Manchester. He has over 7 years of experience in this Company.

⮚ Gaurav Podar is the Non-Executive Nominee Director of the Company. He has over 10 years of experience in the  finance industry. He has been Non-Executive Nominee Director in this Company from June 10, 2019.

⮚ Viresh Oberai is the Independent Non-Executive Director of the Company. He holds a bachelor’s degree in history  from the University of Delhi; He has over 22 years of experience with Tata Steel.

⮚ Sucharita Basu De is the Independent Director of the Company. She has over 20 years of experience in commercial  and corporate agreements, capital markets and real estate.

⮚ Girish Vanvari is the Independent Director of the Company. He holds a bachelor’s degree in commerce from the  University of Bombay and is a member of the Institute of Chartered Accountants of India.

⮚ Piyush Khater is the Company Secretary and Compliance Officer of the Company. He holds a bachelor’s degree in  commerce with specialisation in accounting & finance from St. Xavier’s College, University of Calcutta. He has over  4 years of experience and has previously worked with Ashok Kumar Duggar & Associates. In his last position, he  was assistant manager with Consolidated Consultancy Services Private Limited. Since he joined our Company on  July 28, 2021, he did not receive any remuneration during the Financial Year 2021.

⮚ Santosh Agarwal is the Chief Financial Officer of the Company. He holds a bachelor’s degree in commerce from the  University of Calcutta. He has over 20 years of experience and has previously worked with Polar Fans, Genpact,  ICA group and Gruas Jaso Group. In his last position, he was the chief financial officer and company secretary of  Jaso India. He joined the Company on October 1, 2019

COMPETITIVE STRENGTHS

⮚ Leading Indian supplier to life sciences sector with strong brand recognition and quality products.

⮚ Company provide a diverse range of labware products across varied customer segments

⮚ They operate in an industry which has a large addressable market with long-standing relationships with key end  customers

⮚ Well-equipped and automated manufacturing facilities

⮚ Wide geographic reach through their pan India sales and distribution network

⮚ Experienced Promoter backed by strong management team

KEY CONCERNS

⮚ All manufacturing plants are based in West Bengal (Geographical risk).

⮚ Over 85% of the IPO proceeds would go to selling shareholders of the company.

⮚ Company imports over 75% of its raw materials. Any delay, interruption or reduction in supply of raw materials to  manufacture its products can adversely affect its business.

⮚ Company’s manufacturing facilities are concentrated in West Bengal. Such geographical concentration can pose  risk to its business.

⮚ In case of plastic products manufactured by the company gets banned in India or any markets where the company  exports its products can have a material and adverse effect on its business.

COMPARISON WITH LISTED INDUSTRY PEERS

As per the RHP document, there are no listed entities whose business portfolio is comparable with that of Tarsons’s business and hence we cannot conclude whether the issue price is underpriced or overpriced. However, the IPO is arriving at a PE of 34x on annualized Q1FY22 EPS of Rs. 4.88 which seems to be attractively priced.

FINANCIALS (RESTATED CONSOLIDATED)

Particulars (Rs. In Millions) FY 2021 FY 2020 FY 2019Equity Share Capital 1.92 2.00 1.92Other Equity 2,441.46 1,973.69 1,350.81Net Worth 2,443.38 1,975.69 1,352.73Total Borrowings 334.54 358.95 645.13Revenue from Operations 2,289.11 1,759.02 1,787.48EBITDA 1,034.38 692.54 716.67Profit Before Tax 924.34 531.33 558.25Net Profit for the year 688.70 405.31 389.58

The Smartphone Industry has been steadily developing and evolving; both, in terms of market size and varied models. Factors such as the rise in disposable income of individuals, the development of robust telecom infrastructure, the introduction of budget-centric smartphones, and the increasing number of product launches are collectively contributing to the holistic growth of the smartphone market.

List of Smartphone Players by Market Share

Samsung topped the list of smartphone players with a market share of 19 per cent, followed by Apple with a 15 per cent of market share. Huawei stood third, holding 14 per cent of the market share. Xiaomi came in fourth on the list with an 11 per cent market share, followed by Oppo at 8 per cent, rest 33 per cent are held by other players in the market.

Of late, Samsung is the market leader that makes numerous best-selling Android phones, and with over 300 million sales a year, it is now the largest smartphone maker in the world. Keeping pace with advancing technology, Samsung also expanded its 5G smartphone lineup at entry and midrange price bracket of phones.

Right behind Samsung, there's Apple, an ultra-premium brand that offers flagship iOS-based smartphones, unlike other brands which are dealing in the Android OS.

China's stronghold in the world smartphone market can't be overlooked. Huawei is the largest smartphone manufacturer in China and the second-largest in the world, after South Korea’s Samsung. Huawei has a subsidiary brand, named 'Honor' that also designs and sells smartphones.

Xiaomi is another china's big giant emerging as one of the top leaders in the market with a   mighty online customer base and fast expansion in the global markets beyond the Asian-Pacific region driven by investments via retail channels and partnerships with top communication services providers.

Another renowned china based smartphone maker 'Oppo' has grown tremendously by popular-priced mid-range smartphones, a wider distribution network, and robust marketing strategies in Western Europe.

Demand for smartphones continued to grow as users tilted towards higher specifications and a better user-friendly experience. The improvement in consumer outlook sustained learning, and work from home culture, along with pent-up demand from 2020, is also boosting sales of smartphones in 2021.

RatingSubscribeIssue OfferIssue Opens on Nov 01, 2021Issue Close on Nov 03, 2021Total IPO size (cr) 125.43Fresh issue 125.43Offer For Sale (cr) NilPrice Band (INR) 161-163Market Lot 90Face Value (INR) 10Retail Allocation 35%Listing On NSE, BSEObjects of the issue ⮚ CAPEX of MCC at Dahej, Gujarat ⮚ CAPEX of MCC at Jhagadia, Gujarat ⮚ CAPEX of CCS at Kurnool ⮚ For General Corporate Purposes.Issue Break-up (%)QIB Portion 50NIB Portion 15Retail Portion 35Share Holding Pattern %Promoters & Promoter group 64.6 48.5Public 35.4 51.5Indicative TimetableFinalisation of Basis of  Allotment 10-11-2021Refunds/Unblocking  ASBA Fund 11-11-2021Credit of equity shares to  DP A/c 12-11-2021Trading commences 15-11-2021

Sigachi Industries was incorporated as a private limited company in  1989, with the business to manufacture chlorinated paraffin and hydrochloric acid in its manufacturing unit situated at Hyderabad.

In the year 1990, Company diversified its product portfolio to manufacture microcrystalline cellulose which is widely used as an excipient for finished dosages in the pharmaceutical industry.

The inert non-reactive, free-flowing and versatile nature of MCC have varied applications in the pharmaceutical, food, nutraceuticals and cosmetic industries. The company manufactures MCC of various grades ranging from 15 microns to 250 microns.

• The major grades of MCC  manufactured and marketed by our Company are branded as HiCel and  AceCel. It operates three manufacturing units namely, Unit I situated at  Hyderabad and two manufacturing units, Unit II and Unit III are situated at Jhagadia and Dahej, respectively located in Gujarat.
• The company has an in-house research and development division located in Unit II and Unit III with the objective to implement a  performance-oriented approach with the help of technologies developed in-house.
• Received a certificate of suitability from the European Directorate for  the Quality of Medicines and HealthCare on December 4, 2020
• The company commenced its export operations in the year 1996 by  exporting its first order of MCC to Bangkok
• The company foresees an increase in demand for MCC and to tap the growing market, it intends to utilize the Net Proceeds of this  Issue to enhance the production capacity 154 of MCC by increasing the existing capacity of Unit II and Unit III and manufacturing of CCS  in the Proposed Unit at Kurnool.

Outlook & Valuation

The company had consistent revenue growth in the last 3 years where they grew at a CAGR of 13%. In FY21 revenue was at Rs 196 crore VS Rs 133 cr in FY19 while profit grew at CAGR of  17% and in FY21 net profit was Rs 30 cr Vs Rs 19 cr in FY19. The margins of the company are improving gradually. The CAPEX from the  IPO would also help the company to increase its revenue further.

The  Indian foods and beverage market, as well as the pharmaceutical market, are growing rapidly which should drive MCC’s demand forward.

Due to the small size of the IPO the company is going to list in the T2T Segment. The IPO is arriving at a PE of 14x on the average EPS of the last three years i.e. Rs. 10.88 and P/BV of 2.19 which seems to be reasonably priced for investors. Thus, we assign a “SUBSCRIBE” rating to the IPO for listing gains and long term.

IPO Note

SIGACHI INDUSTRIES LTD

KEY MANAGERIAL PERSONNEL

• Swami Das Nigam is the Chairman of the Board and Non-Executive Director of the Company and has been associated with the Company since the year 2014.
• Rabindra Prasad Sinha, is the Whole-time Director, the Chairperson of the Company and one of the Promoters  who has been associated with the Company since its inception
• Chidambarnathan Shanmuganathan is the Whole-time Director of the Company and is one of the Promoters  associated with the Company since its inception
• Amit Raj Sinha, is the Managing Director, Chief Executive Officer and is one of the Promoters of the Company
• Vijaykumar Amrutlal Bhavsar is the Whole-time Director of the Company. He has an experience of more than  two decades in the chemical and pharmaceutical industry
• Dhanalakshmi Guntaka is an Additional Independent Director of the Company. She was appointed as an  Additional Director of the Company with effect from October 18, 2021.
• Lijo Stephen Chacko is an Independent Director of our Company
• Sarveswara Reddy Sanivarapu, aged 56 years is an Independent Director of the Company. He is an associate of the Institute of Company Secretaries of India and has also received the certificate of practice as a company secretary.

COMPETITIVE STRENGTHS

• One of the leading manufacturers of MCC (cellulose-based excipient) in India with over 30 years of experience.
• Pan India and International market presence.
• Well experienced management team with proven project management and implementation skills.
• A comprehensive product portfolio enables them to serve diverse end-use applications.
• Presence across diverse industry verticals with long-standing relationships with customers.
• Growth led by continuous investment and focus on R&D.
• Quality Assurance and Quality Control of products
• Strategically located manufacturing facilities

KEY STRATEGIES

• Increasing manufacturing capacity to focus on the growing demand for core products.
• Increasing focus on its core business segment
• Diversifying and increasing penetration in markets
• Increasing its global presence

KEY CONCERNS

• Depending on a few customers, for a significant portion of their revenue
• The company has received a Demand Notice from Saffron Capital Advisors Private Limited, under the Insolvency  and Bankruptcy Code, 2016
• The company has benefited from certain export benefits from the Government of India, which is withdrawn or modified may have a significant impact on results operations.
• There are outstanding litigations involving the Company
• The company is subject to foreign exchange control regulations which can pose a risk of currency fluctuations.

IPO Note

SIGACHI INDUSTRIES LTD

COMPARISON WITH LISTED INDUSTRY PEERS

There are no listed companies in India that engage in a business similar to that of the Company. Accordingly, it is not possible to provide an industry comparison in relation to the Company. However, The IPO is arriving at a PE of 14x on the average EPS of the last three years i.e. Rs. 10.88 and P/BV of 2.19 which seems to be reasonably priced for investors.

FINANCIALS (RESTATED CONSOLIDATED)

Particulars (Rs. In Lacs) FY 2021 FY 2020 FY 2019Equity Share Capital 768.25 768.25 307.30Other Equity 8,651.69 5,690.27 4,180.97Net Worth 9,419.94 6,458.52 4,488.27Total Borrowings 2092.70 3,037.94 2,519.11Revenue from Operations 19,275.58 13,906.26 12,898.81EBITDA 4,204.44 2,965.00 2,985.12Profit Before Tax 3,848.37 2,534.39 2,472.84Net Profit for the year 3,026.03 2,031.55 1,901.27

RatingSubscribe(Aggressive Investors)Issue OfferIssue Opens on Nov 01, 2021Issue Close on Nov 03, 2021Total IPO size (cr) 5,625Fresh issue 3,750Offer For Sale (cr) 1,875Price Band (INR) 940-980Market Lot 15Face Value (INR) 2Retail Allocation 10%Listing On NSE, BSEObjects of the issue ⮚ For enhancing visibility and business  expansion ⮚ To expand consumer base including offline presence.  ⮚ Strategic investments and acquisitions ⮚ For General corporate purposes.Issue Break-up (%)QIB Portion 75NIB Portion 15Retail Portion 10Indicative TimetableFinalisation of Basis of  Allotment 10-11-2021Refunds/Unblocking  ASBA Fund 11-11-2021Credit of equity shares to  DP A/c 12-11-2021Trading commences 15-11-2021

PB Fintech is India’s largest online platform for insurance and lending products leveraging the power of technology, data and innovation.

It provides convenient access to insurance, credit and other financial products and aims to create awareness amongst Indian households about the financial impact of death, disease and damage. The company launched Policybazaar, its flagship platform, in 2008 to respond to Consumers’  need for more awareness, choice and transparency and create a  consumer-pull based, provider-neutral model for insurance distribution.

In 2014, the company launched Paisabazaar with the goal to transform how  Indians access personal credit by accentuating ease, convenience and transparency in selecting a variety of personal loans and credit cards.

⮚ In Fiscal 2020, Policybazaar was India’s largest digital insurance marketplace among all online insurance distributors with a 93.4%  market share based on the number of policies sold.

⮚ Paisabazaar was India’s largest digital consumer credit marketplace  with a 53.7% market share, based on disbursals in Fiscal 2021

⮚ Follows an asset-light capital strategy and do not underwrite any insurance or retain any credit risk on their books. Policybazaar is registered with and regulated by IRDAI as a direct insurance broker.

⮚ The market for insurance products as well as the lending market in  India is expected to be more than double by 2030, which represents a meaningful market opportunity for the company.

⮚ Policybazaar offers an information-rich, user-friendly, and tech-driven self-service platform for

1. pre-purchase research,
2. purchase, including application, inspection, medical check-up, and  payment; and
3. post-purchase policy management, including claims  facilitation, renewals, cancellations, and refunds

Outlook & Valuation

The company had consistent revenue growth in the last 3 years. The company's revenue for FY21 was at Rs 957.4 crore VS  Rs 855.56 cr in FY20 while the company has never registered profit.

The company recorded a loss of (150.24) cr in FY21 against a loss of Rs  (304.03) cr in FY20. New edge businesses are garnishing investors'  interest in India and we have seen many multi-baggers from such kinds of businesses in the USA and China.

PB fintech is the operator of  India's largest online platform for insurance and lending products and aiming toward expansion of its offline and customer base. The valuation of the company cannot be ascertained as the company is loss-making while the EV/Sales work out 47.6x.

Eying the positive outlook of the company and under penetration of the insurance industry, we assign a  “SUBSCRIBE” only for Aggressive investors.

IPO Note

PB FINTECH IPO (POLICY BAZAAR)

KEY MANAGERIAL PERSONNEL

⮚ Mr Yashish Dahiya is the Chairman, Executive Director and CEO of the Company He holds a bachelor’s degree  in technology from IIT, Delhi, a PGDM from IIM, Ahmedabad

⮚ Mr Alok Bansal is a Whole-time Director and CFO of the Company. He was previously associated with Voltas  Ltd., GE (India), iGate Global Solutions Ltd, M&M and FE Global Technology Services Pvt. Ltd.

⮚ Ms Kitty Agarwal is a Non-executive Director of the Company. She is currently associated with Info Edge  Ventures as a partner and was previously associated with Info Edge Ltd. as head of corporate development.

⮚ Mr Sarbvir Singh is the President of Policybazaar and Non-executive Director of the Company.

⮚ Mr Munish Ravinder Varma is a Non-executive Director of the Company. He currently serves as a managing partner at SoftBank Investment Advisers. He was also associated with Deutsche Bank AG.

⮚ Mr Kaushik Dutta is an Independent Director of the Company He is a fellow member of the Institute of  Chartered Accountants of India with over 25 years of experience.

⮚ Ms Veena Vikas Mankar is an Independent Director of the Company. Ms. Mankar started her career with ICICI  Limited and has worked with various financial institutions.

⮚ Ms Lilian Jessie Paul is an Independent Director of the Company.

⮚ Mr Nilesh Bhaskar Sathe is an Independent Director of the Company.

⮚ Mr Gopalan Srinivasan is an Independent Director of the Company.

COMPETITIVE STRENGTHS

⮚ Created strong, Consumer-friendly brands offering wide choice, transparency and convenience well-diversified business model.

⮚ Proprietary Technology, Data and Intelligence Stack

⮚ Benefits from economies of segmentation

⮚ Strong network effects for Policybazaar and Paisabazaar platforms.

⮚ High renewal rates provide clear visibility into future business and deliver superior economics.

⮚ Capital efficient model with low operating costs.

⮚ Founders with clarity of purpose backed by experienced management.

KEY CONCERNS

⮚ The company has a history of losses and it anticipates increased expenses in the future.

⮚ The COVID-19 pandemic, or a similar public health threat, could adversely affect their business, financial condition, and results of operations.

⮚ Failure to deal effectively with any fraud perpetrated on our platforms could harm our business.

⮚ Their strategy to expand internationally involves risks that could increase expenses, adversely affect results of operations and require increased time and attention from the management.

⮚ Business is subject to intense competition.

⮚ Failure to maintain brand recognition and reputation will adversely affect business financials.

⮚ The insurance broking business is subject to various laws and regulations.

⮚ Highly dynamic and competitive online fintech industry.

IPO Note

PB FINTECH IPO (POLICY BAZAAR)

COMPARISON WITH LISTED INDUSTRY PEERS

There are no listed companies in India that engage in a business similar to that of the Company. Accordingly, it is not possible to provide an industry comparison in relation to the Company while the EV/Sales work out to be 47.6x.

FINANCIALS (RESTATED CONSOLIDATED)

Particulars (Rs. In Millions) FY 2021 FY 2020 FY 2019Equity Share Capital 12.35 11.09 8.77Other Equity 19,904.99 12,647.38 4,894.17Net Worth 19,917.34 12,658.47 4,902.94Total Borrowings -- -- --Revenue from Operations 8,866.62 7,712.97 4,922.45EBITDA (1,597.63) (3,198.92) (2,512.32)Profit Before Tax (1,419.14) (2,948.41) (3,374.30)Net Profit for the year (1,502.42) (3,040.29) (3,468.11)

Incorporated in 2012, Nykaa is a consumer technology platform,  delivering a content-led, lifestyle retail experience to consumers. The company has a diverse portfolio of beauty, personal care, and fashion products, including their own brand products manufactured by them.

The company operates under 2 major verticals: Nykaa: Beauty and personal care and Nykaa Fashion: Apparel and accessories. They have a  diverse portfolio of beauty, personal care and fashion products,  including their owned brand products manufactured by them.

⮚ As of March 31, 2021, Nykaa offered approximately 3.1 million SKUs from 4,078 national and international brands to their consumers across business verticals.

For the 3 months ended June  30, 2021, the total GMV was ₹1,469.61 crore, which grew 238.8%  from the 3 months ended June 30, 2020.

⮚ The beauty and personal care offering is extensive with 256,149  SKUs from 2,644 brands primarily across make-up, skincare, haircare, bath and body, fragrance, grooming appliances, personal  care, and health and wellness categories as of August 31, 2021

⮚ The company manufactures owned brand beauty and personal care which are sold under their owned brands such as “Nykaa  Cosmetics”, “Nykaa Naturals” and “Kay Beauty”.

⮚ The company provides an omnichannel shopping experience to its customers by providing both online and offline shopping channels. Online channels include mobile apps, websites, and mobile sites while in the offline channel Nykaa opened their first physical store in 2014, and has 80 physical stores across 40 cities as of August 31,  2021. Their physical stores currently exist in 3 formats, Nykaa Luxe,  Nykaa On Trend and Nykaa Kiosks.

KEY MANAGERIAL PERSONNEL

⮚ Falguni Nayar is the Founder, Executive Chairperson & Managing Director and Chief Executive Officer of the company. She has over 26 years of experience in e-commerce, investment banking and broking. Prior to founding the company, she was associated with Kotak Mahindra Capital Co Ltd for 18 years where she also served as a managing director.

⮚ Sanjay Nayar is an Additional Non-Executive Director of the company. He has over 35 years of experience in banking and private equity. He was associated with Citibank N.A. for over 23 years, where he also served as the chief executive officer of the bank in India for over 6 years. He was chief executive officer of KKR India Advisors  Pvt Ltd from 2009 to 2020.

⮚ Adwaita Nayar is the Executive Director of the company, since July 1, 2021. She also serves as the chairperson and chief executive officer of Nykaa Fashion. She co-founded the company and has been involved in the areas of marketing, operations and product development.

⮚ Anchit Nayar is the Executive Director of the company, since July 1, 2021. He also serves as the chairman and chief executive officer of Nykaa E-Retail. He has previously served as the vice president of the Investment  Banking Division at Morgan Stanley, New York. He is currently responsible for the beauty business and also serves as a member of the investor relations team

⮚ Arvind Agarwal is the Chief Financial Officer of the company. He has been associated with the company since  June 1, 2020. He has over 21 years of experience in various fields, including accounting, finance, regulatory and strategic planning. Previously, he was associated with Amazon Seller Service Pvt Ltd, Vodafone India Ltd, Tata  Teleservices Ltd, YOU Telecom and Adani Port Ltd.

⮚ Rajendra Punde is the Head - Company Secretary & Legal and Compliance Officer of the company. He has been associated with the company since October 22, 2020. He has more than 17 years of experience in legal,  compliance and company secretarial.

Issue Break-up (%)QIB Portion 75NIB Portion 15Retail Portion 10

‍Shareholding (No. of Shares) Pre Issue 467,036,850Post Issue 472,924,550

‍Indicative Timetable Finalization of Basis of  Allotment 08-11-2021Refunds/Unblocking  ASBA Fund 09-11-2021Credit of equity shares to  DP A/c 10-11-2021Trading commences 11-11-2021

COMPETITIVE STRENGTHS

⮚ Continue to acquire new consumers and increase consumer loyalty

⮚ Deepen and broaden the brand relationships

⮚ Leveraging on the art of retailing to expand into lifestyle adjacencies and launch new channels

⮚ One of India's leading speciality beauty and personal care companies.

⮚ Major brands offering their products on Nykaa's platform for sale

⮚ Capital efficient business with strong growth and profitability

⮚ Company's advanced technology platform

KEY CONCERNS

⮚ They may not be able to boost revenue if they are unable to attract new customers or do it in a cost-effective manner.

⮚ Any damage to their brand or reputation could have a negative impact on their business.

⮚ The sale of their own items exposes them to new risks and increases the severity of others.

⮚ They operate in an extremely competitive sector, and their inability to compete successfully could affect their bottom line.

⮚ Their business’ seasonality has an impact on their quarterly performance and puts a burden on their operations.

Issue OfferIssue Opens on Oct 28, 2021Issue Close on Nov 01, 2021Total IPO size (cr) 5,351.92Fresh issue (cr) 630Offer For Sale (cr) 4,721.92Price Band (INR) 1085 – 1125Market Lot 12Face Value (INR) 1Retail Allocation 10%Listing On NSE, BSE

FSN E–Commerce Ventures Limited IPO (Nykaa)

FINANCIALS (RESTATED CONSOLIDATED)

Particulars (Rs. In Millions) FY 2021 FY 2020 FY 2019Equity Share Capital 150.58 145.50 142.43Other Equity 4,748.81 3,075.99 2,163.15Net Worth 4,899.39 3,221.49 2,305.58Total Borrowings 1,874.65 2,675.49 2,256.43Revenue from Operations 24,408.96 17,675.33 11,113.94EBITDA 1,614.26 810.55 205.10Profit Before Tax 753.38 (124.30) (317.20)Net Profit for the year 619.45 (163.40) (245.39)

COMPARISON WITH LISTED INDUSTRY PEERS

There are no listed companies in India that engage in a business similar to that of the Company. Accordingly, it is not possible to provide an industry comparison in relation to the Company.

Outlook & Valuation

Nykaa redefined the art of e-retailing beauty and personal care in India. Nykaa's revenue for FY 2021 was at Rs 2,452  crore VS Rs 1,777 cr while profit for the year in the FY 2021 was Rs  61.9 cr, as compared to a restated loss of Rs 16.3 cr for 2020.

Q1FY22  financials also looked better than previous years, but need to see how it grows further. The beauty and personal care market have a large market opportunity especially in India where millennials are more into buying brands and look for easy buying options such as e-commerce.

At the upper price band of Rs 1125, the PE works out to be 839x and the price to sales comes at 21.6x to its FY21 earnings. The valuation of the IPO is pretty high however eyeing the higher valuations of other unicorns we may expect some listing gain.

Thus, we assign a “SUBSCRIBE” rating to the IPO only for listing gains.

RatingAVOIDIssue OfferIssue Opens on Oct 29, 2021Issue Close on Nov 02, 2021Total IPO size (cr) 1,200.30Fresh issue 300.00Offer For Sale (cr) 900.30Price Band (INR) 560 – 577Market Lot 25Face Value (INR) 10Retail Allocation 10%Listing On NSE, BSEObjects of the issue ⮚ Augmenting Bank’s Tier – 1 capital base ⮚ Achieve the benefits of listingIssue Break-up (%)QIB Portion 75NIB Portion 15Retail Portion 10Shareholding (No. of Shares)Pre Issue 78,014,996Post Issue 83,214,302Indicative TimetableFinalisation of Basis of  Allotment 09-11-2021Refunds/Unblocking  ASBA Fund 10-11-2021Credit of equity shares to  DP A/c 11-11-2021Trading commences 12-11-2021

Incorporated in 2017, Fino Payments is a growing fintech company offering a wide portfolio of digital financial products and services in  India. The company offers a diverse range of financial products and services via a pan-India distribution network and proprietary technologies. Since 2017, they have grown their operational presence to cover over 90% of districts as of September 31, 2021.

⮚ Fino Bank operates an asset-light business model that is underpinned by their “phygital” delivery model (i.e., a combination of physical and digital) and relies on their merchant network and other participants.

⮚ The company is looking to target a population of India which has low levels of financial literacy and technology use and typically does not have access to even basic banking services.

⮚ In 2020, the Ministry of Electronics & Information Technology ranked Fino payments third among banks in facilitating digital transactions in India. According to CRISIL, the company also has the largest network of micro-ATMs and the third-highest deposit growth rate in FY' 2021.

⮚ Fino Banks has built a pan-India presence with 724,671 merchants  (own and API) which are typically located in Tier-2 and Tier-3 towns.  They currently have approximately 17,430 active BCs across India.  Additionally, they operate 54 branches and 130 Customer Service  Points (“CSPs”).

⮚ Their retailers also use their existing client connections in their communities to help us cross-sell additional financial products and services like third-party gold loans, insurance, bill payments, and recharges.

Outlook & Valuation:

The revenues of the company have seen consistent growth in the last 3 years. The company's revenue for FY  2021 was at Rs 791 crore VS Rs 691 cr in FY 2020 while profit for the year in the FY 2021 was Rs 20.4 cr Vs loss of Rs 32 cr in 2020.

The company has a brief history while the margins of the company might expand. Fino Payment is a fast-growing fintech company and it is one of its kind company to list on the stock exchanges. If we consider last year's profit then the PE ratio turns out to be around 235 however it has carried forward losses which is a major concern. Its unique DTP  network and new edge business model may garner investors' interest while we have an "AVOID" rating for this on the back of expensive valuation and regulatory risk.

IPO Note

FINO PAYMENTS BANK LIMITED

KEY MANAGERIAL PERSONNEL  

⮚ Rishi Gupta is the Managing Director and CEO of the Bank. He is a founding member of the Bank and he was an employee of Financial Information Network and Operations Pvt Ltd (erstwhile name of their Promoter, Fino  PayTech Ltd). Prior to joining Fino PayTech Ltd, he worked with International Finance Corporation, ICICI Bank  Ltd and Maruti Udyog Ltd.

⮚ Ashish Ahuja is the Chief Operations Officer of the Bank, he joined the Bank with effect on April 1, 2017.

⮚ Ketan Dhirendra Merchant is the Chief Financial Officer of the Bank, he joined the Bank with effect on August 30, 2018.

⮚ Shailesh Pandey is the Chief Sales Officer of the Bank, he joined the Bank on April 1, 2017.

⮚ Vinod Kumar KB is the Chief Information Officer/ Infrastructure and Facilities of the Bank. He joined the Bank with effect from July 18, 2017.

⮚ Bharat Bhanushali is the Head – Business Technology of the Bank, he joined the Bank with effect on April 1,  2017.

⮚ Amit Kumar Jain is the Head of – Business Alliance of the Bank, he joined the Bank with effect on April 1, 2017.

⮚ Anand Bhatia is the Chief Marketing Officer of the Bank and he joined the Bank with effect from February 5,  2018.

⮚ Pratima Pinto Thomas is the Head- Human Resources of the Bank and she joined the Bank with effect from May  27, 2019.

⮚ Basavraj Loni is Company Secretary and Compliance Officer of the Bank, he has been associated with Fino since  November 1, 2017, and was transferred to the Bank as Head – Legal and Secretarial with effect from May 6,  2020.

COMPETITIVE STRENGTHS

⮚ Unique DTP (Distribution, Technology, Partnership) network helps in better customer servicing.

⮚ A technology-focused business model with an advanced digital platform

⮚ Customer centricity and innovation at the core of business

⮚ Asset light and scalable business model

⮚ Operational experience and expertise

⮚ The socially inclusive model with positive social impact

⮚ Highly experienced and committed leadership team, supported by marquee investor base in our promoter and  shareholder

KEY CONCERNS

⮚ The company has a limited operating history as a payments bank.

⮚ The company is engaged in fee and commission-based operations, and their financial performance could be impacted if they are unable to collect revenue from these sources.

⮚ The company relies heavily on their information technology platforms, and any flaw or failure in such systems, as well as a data breach, could have a negative impact on its business.  

⮚ The company has introduced new products and services and will continue to do so, but they cannot guarantee that such products and services will be successful today or in the future.

⮚ In the financial years 2019 and 2020, the company made losses.

IPO Note

FINO PAYMENTS BANK LIMITED

COMPARISON WITH LISTED INDUSTRY PEERS

There are no listed companies in India that engage in a business similar to that of the Company. Accordingly, it is not possible to provide an industry comparison in relation to the Company.

FINANCIALS (RESTATED CONSOLIDATED)

Particulars (Rs. In Millions) FY 2021 FY 2020 FY 2019Equity Share Capital 445.80 445.80 445.80Other Equity 1,059.67 854.9 1,175.29Net Worth 1,505.47 1,300.70 1,621.09Total Borrowings 1,807.98 1,107.90 829.03Revenue from Operations 7,910.27 6,913.97 3,711.21Expenses 7,705.53 7,234.33 4,335.05Net Profit for the year 204.74 (320.36) (623.84)Margin (%) (16.8) (4.6) 2.6

INTRODUCTION

The Tata Group is one of the country's oldest and largest companies. The company is divided into seven business sectors. It is made up of 96 firms and employs 350,000 people across six continents.

IT:

TCS

Tata Consultancy Services was established in the year 1968. It is regarded as India's first software services firm, establishing a new era. Today, it is a global company in 46 nations.

TATA ELXSI

It is extremely popular and is one of the world's top design and technology services providers in the automotive, health and transport industries, etc. The business was first to start on EV software as a design and technology services unit for the Tata Group.

METAL:

TATA STEEL

Tata Steel is a global Indian steel manufacturer with headquarters in Mumbai, Maharashtra, presently situated in Jamshedpur, Jharkhand. It is a Tata Group Subsidiary.

TATAMETALIKS

A trustworthy brand Tata Metaliks. They are regarded as pioneers in pig iron and pipe production in India.

TATASTBSL

One of the major participants of the Indian Steel industry is Tata Steel BSL Ltd. The company is presently India's 5th biggest secondary steel manufacturer, with an existing capacity of 5.2 million tonnes per annum, supported by over three decades' expectation.

TINPLATE

A subsidiary of Tata Steel Ltd is Tata Tinplate, known as The Tinplate Company of India Limited. Founded in 1920, TCIL is the oldest company in India today. TCIL has a market share of 70 per cent in India.

TIMKEN

The Timken Company is a global producer of covers and products for power transmission. Timken is based in 42 countries.

AUTOMOTIVE:

TATA MOTORS

With the foundation in the year 1945, the Tata Engineering and Locomotive Company continues to grow rapidly. Tata Motors was renamed in 2003. The firm aims to provide clients with accessible and viable choices for automobile finance. It has developed a novel strategy to the financing of vehicles, including low-cost EMI, bullet funding etc., to promote and enhance all of the Tata EVs.

RETAIL:

VOLTAS

Voltas founded in the year of 1954 has become a prominent provider of engineering solutions and air conditioning brand and partnered with several important projects.

TITAN

In 1984, Titan Industries, JV of the Tamil Nadu Industrial Development Corporation (TIDCO), became a part of the group.

TRENT

Trent Limited is the retail hand of the Mumbai, Maharashtra headquartered group of Tata. Starting in 1998, Trent manages Westside, one of Mumbai's many expanding retail brands in India, and Landmark, a brick and mortar chain in India.

TATA COFFEE

TGBL's JV founded in 2012 - is welcomed by coffee enthusiasts with the international coffee powerhouse, Starbucks. The next five years will see the quickest shop deployment in the history of Starbucks.

TATA CHEMICAL

1939 – The remote, seaside Mithapur consists of Tata Chemicals. As the firm becomes a market leader, a flourishing community is growing around the facility.

TATA CONSUMER

Tata Consumer Products is a rapidly growing consumer products firm based in Kolkata, West Bengal, India, and a Tata Group affiliate. It is the second-largest tea maker and distributor in the world and one of the biggest coffee producers.

INFRA:

TATA POWER

In the year 1910, Sir Dorabji decided to bring to light the goal of Jamsetji of bringing clean energy into Mumbai through the creation of the first hydropower plant in India. Since then It's been known as Tata Power.

TELECOM:

TATA COM

Tata Communications Limited was previously known as an Indian telecom firm named Videsh Sanchar Nigam Limited. Previously, it was a government-owned service provider and was owned by the Telecommunication Department, the Communications Ministry of the government of India.

TTML

The Indian broadband, telecom and cloud service provider is Tata Tele Business Services Limited, previously known as Tata TeleServices Limited. It is an Indian Conglomerate of the Tata Group.

AEROSPACE & DEFENSE:

TAML has also worked on the development of special composite containers for transporting various sensitive items utilized by the Indian defence forces throughout the years The Tata Advanced Materials Limited (TAML) Aerospace Division is responsible for the design, manufacture, and supply of composite components, parts, and sub-assemblies for use in aircraft, spacecraft, and helicopters.

NELCO

In 1940, as a groundbreaking electronics firm, Nelco, part of US$ 116 Bn Tata Group, has had numerous firsts to be named over the years.

TRADING & INVESTMENT:

TATA INVESTMENT

Tata Investment Corporation Limited is an investment-driven non-banking financial business. Tata Investment invests in a broad portfolio of shares, including different functioning and financially sound industries. The Company will pursue a combination of value and growth as its normal investing approach.

TOURISM & TRAVEL:

INDIAN HOTELS

IHCL has welcomed visitors with a world-class elegance and friendliness from the opening in 1903 of the renowned Taj Mahal Palace in Bombay while being strongly anchored in local tradition and strong global ideals.

TAJ UK

With the acquisition in the year 1982 of St. James Court in London, UK, two years after the business had acquired its first international Hotel in Yemen, Taj Group would now expand internationally.

PESTICIDES & AGROCHEMICAL:

RALLIS INDIA

Rallis, a TATA company is a Tata Chemicals subsidiary that operates vertically in the Farm Essentials. More than 40 thousand retail stores in India span over 80 per cent of India's districts are reached by 2,300 distributors. Rallis has extensive knowledge of Indian farming, ongoing contacts with farmers, high-quality agrochemicals, branding skills and marketing expertise and an extensive array of crop management solutions.

In India, there are 74 issuers of credit cards, including the top three Indian private banks (HDFC Bank, Axis Bank and ICICI Bank). The credit card markets of India continue to be significantly underpenetrated, though.

HDFC Bank is the market leader with the greatest share in the credit card sector, while the share of City Union Bank is the lowest. Despite the Reserve Bank of India's prohibition on issuing new credit cards in the previous eight months, HDFC Bank has been able to preserve its leading status with a 23.06% market share. Let us consider India's Credit Card market share:

Commercial Banks

Although commercial banks are certain kinds that serve customers on a daily basis, commercial banks tend to focus on supporting enterprises. Big and small enterprises can utilize commercial banks when a checking or a savings account has to be opened, borrow money, get credit or transfer cash to foreign market companies.

Private Banks

Private banks are banks where private shareholders and not the government own a majority of their holdings. Private sector banks have private promoters, they are managed and controlled and they are allowed to function according to market forces. There are typically regulated hence guaranteeing the security of public deposits entrusted to such entities and is also governed by directives issued periodically by central banks.

Private Sector Banks  AXIS BANK LTD731192211.44%DCB BANK LTD46900.01%DHANALAKSHMI BANK LTD60210.01%FEDERAL BANK LTD206870.03%HDFC BANK LTD1474286223.06%ICICI BANK LTD1145868217.92%IDBI LTD377390.06%IDFC Bank Limited4570150.71%INDUSIND BANK LTD16182622.53%JAMMU AND KASHMIR BANK852450.13%KOTAK MAHINDRA BANK LTD24192033.78%RATNAKAR BANK LIMITED30071874.70%TAMILNAD MERCANTILE BANK LTD311500.05%YES BANK LTD9971811.56%

Public Sector Banks

Public sector banks are the largest kind of government-controlled banks in India, with a majority share (i.e. above 50%) held by the Government of India's finance ministry or Indian state finance ministry. Gazette officers are those employed by officers and their subsidiaries. The workers that work for these particular organizations and their subsidiaries are likewise fully qualified officials. These banks' shares are listed on the stock exchanges.

Public Sector Banks BANK OF BARODA6792711.06%BANK OF INDIA1661240.26%BANK OF MAHARASHTRA633020.10%CANARA BANK8825771.38%INDIAN BANK1352710.21%INDIAN OVERSEAS BANK660160.10%PUNJAB NATIONAL BANK3116120.49%STATE BANK OF INDIA1240506819.40%UNION BANK OF INDIA5131080.80%

Foreign Banks

The majority of foreign banks in India are foreign bank subsidiaries. They come from overseas promoters and are managed. In India, some international banks are Citibank, Bank of America, Standard Chartered Bank and Hong Kong Bank.

Foreign Banks AMERICAN EXPRESS14575442.28%BANK OF AMERICA239280.04%CITI BANK25939994.06%HONGKONG AND SHANGHAI BKG CORPN8105711.27%SBM Bank India1821670.28%STANDARD CHARTERED BANK LTD14038632.20%AU SMALL FINANCE BANK LIMITED352080.06%

Conclusion

The expenditure on credit cards grew strongly, from 2015 to 2019, with the CAGR rising by 32 percent. In all, the increase in credit card expenditures should still reach Rs. 15 trillion by 2024. The Government has fostered its goal of a cashless society, digitization, e-commerce and the growth of its POS infrastructure.

A financial service firm (AMC) is one that offers a large variety of mutual fund investment strategies.

In India as of now, there are 44 asset management companies (February 2017). The private sector includes 35 such AMCs. Association of Mutual Funds in India (AMFI) India includes all asset management companies (AMFI). In 1995, AMFI was established in all registered AMCs in India as a non-profit association.

SBI AMC

The SBI Mutual Fund was launched in 1987 and has been active for over 30 years in the Indian Mutual Fund sector. The fund administers approximately 5.4 million investment mandates. It's one of India's oldest and best-known AMCs. SBI Mutual Fund offers systems in different categories to meet different requirements of individuals.

HDFC AMC

Housing Development Finance Corporation Limited (HDFC) is a firm that is located in Mumbai, India. it is an Indian Financial Services organization. Through its subsidiary HDFC Asset Management Company Limited, HDFC provides mutual fund services. This is India's second-largest AMC.

ICICI Prudential Asset Management Company Ltd.

The AMC works along with Prudential of the United Kingdom and ICICI Bank of India, one of India's largest banks. Prudential Plc. is a major player in the financial services sector in Great Britain. Founded in Mumbai on 13 October 1993, this AMC has an asset basis of about Rs 2,93,338, with more than 1,400 supplies. The AMC provides a wide array and high marked service choices.

Aditya Birla Sun Life Mutual Fund

AUM, which distributes over 600+ schemes, is presently managing over Rs 2,41,107 crore. The AMC was established by Aditya Birla Group of India and Sun Life Financial Inc. of Canada in 1994 as a joint venture.

From broad equity trading plans to industry-specific plans, the Birla Sun Life mutual fund delivers a variety of mutual fund programmes. There are also debt-mutual funds, hybrid schemes, fund schemes, monthly income plans and offshore funds. It has a large range of investments and a strong financial base.

Kotak AMC

Since 1988, Kotak's huge client base with investor lakhs has already been created. AMC provides a variety of solutions, catering with new goods to a variety of clients. With minimal SIP commitment of 1000 and 500, Kotak Equity Opportunities Fund, Standard Multicap funds have improved growth.

Nippon India AMC

Founded by the late Dhirubhai Ambani, Nippon India AMC (formerly known as Reliance Asset Management Limited) is one of the most prominent Indian AMCs. It was then partnered with the Japanese Nippon Life Insurance. In 2019, the Insurance company Nippon Life held a 75% interest in the mutual fund, which allowed Anil Ambani to exit the Mutual fund industry. It was then called Nippon India Asset Management Company

Axis AMC

Axis Mutual Fund is India's fifth-biggest asset-size mutual fund company. For the quarter ending June 2020, the Fund House would handle assets of Rs 1.34 lakh crore. The fund house's asset size fell by 2,90% from the quarterly number in March 2020. For over 11 years the fund house has existed. Axis Bank Limited controls 74.99% of the funds, while Schroder Singapore Assets Private Limited retains the remaining 25% of the holdings.

UTI AMC

Founded in 1963, UTI is one of India's leading asset management firms. As the first mutual fund provider to offer, UTI promises certain reliable returns, Easy and accessible investment in UTI at any time of year. UTI mutual funds schemes are handled by the most acute financial institutions and hence their returns are trustworthy and in accordance with their goals for capital appreciation. The AMC manages 1,53,364 crore rs in AUM with around 1400 products and offers funds in different categories.

IDFC AMC

The IDFC Mutual Fund is India's ninth-largest asset house. For the quarter ending June 2020, the investment firm manages assets (AUM) worth Rs 1.01 lakh crore. For almost 20 years, the fund house has been around. It enables investors to make quality investments through rigorous research and creation of the product mix while taking the risk profile of their investors into account to support the fund house. In the approximately 46 cities and 280 towns in the nation, the IDFC Mutual Fund holds more than 1 million investors' accounts.

DSP AMC

DSP BlackRock Mutual Fund is the world's largest investment management company. It has a record of more than 20 years of investing excellence. An investment host of equities, debt, hybrids, the Fund of Funds, international FoFs etc. which can be used by the investors. The AMC has a highly skilled investing staff.

The BSE stands for 'Bombay Stock Exchange. Established in 1875, BSE is the first and one of the major stock marketplaces in India's. The NSE is brief for National Stock Exchange.

BSE - Major Stock Market in India

Established in 1972 somewhat later than BSE, the stock exchange is identical to BSE. While BSE is older, NSE is higher with more everyday business and more sales.

The Sensex is a free-floating stock market index of 30 well-established firms that are financially healthy and listed in BSE and has been in operation since 1875.

In addition to the popular Sensex, BSE employs additional stock indexes.

BSE 100 and BSE 500 are the indicators. Sensex is the pulse of the domestic stock exchanges in India and was listed on 1 January 1986. On 1 April 1979, the base value of the Sensex and its base year 1978-79 is taken as 100.

Sensex is a weighted index of market capitalization. The overall market value of all 30 stocks in various industries is reflected. The total value for the market is calculated by multiplying the stock price by the number of outstanding shares.

The Sensex daily computation should be done by dividing an index number known as the index divider of the total market value of the 30 businesses. The splitter covers the original Sensex base period.

SEBI CEO Ajay Tyagi made his opinion on retail investors' interest in the Indian securities market implying that it has grown dramatically to average 2.45 million Demat monthly accounts during April-June.

The cumulative total Demat Accounts rose to 55 million, from 41 million at the start of FY21 to 34.7% at the conclusion ofFY21.

In the year from 2019-20, capital-acquisition cash market sales grew by 70.2 per cent from Rs 96.6 lakh crore to Rs 164.4 lakh crore in 2020-21. Furthermore, the share of people in sales rose by around 5 percentage points to 51.4%

The major reasons behind these were the existing low-interest rates and the easy availability of money are key reasons for India's growing investment interest.

While the convenience of stock market trading on new technological platforms, including mobile phone applications, has also led investors to the stock market, the absence of adequate real estate and debt instruments returns also added to their numbers.

Here is a Timeline of Sensex:

Here is the Sensex journey starting from level 1,000 to 60,000. July 19901001 January 19922020 February 19923,000 March 19924,000 October 19995,000 February 20006,000 June 20057,000 September 20058,000 December 20059,000 February 200610,000 March 200611,000 April 200612,000 October 200613,000December 200614,000 July 200715,000 September 200716,000 September 200717,000 October 200718,000 October 200719,000 December 200720,000 November 201021,000 March 201422,000 May 201423,000 May 201424,000 May 201425,000 July 201426,000 September 201427,000 November 201428,000 January 201529,000 March 201530,000 May 201731,000 July 201732,000 October 201733,000 December 201734,000 January 201835,000 January 201836,000 July 201837,000 August 201838,000 April 201939,000May-201940,000 26th November 201941,000 16th January 202042,00010th November 202043,000 18th November 202044,000 4th December 202045,000 9th December 202046,000 18th December 202047,000 4th January 202148,000 11th January 202149,000 21st January 202150,000 8th February 202151,000 15th February 202152,000 23rd June 202153,000 4th August 202154,000 13th August 202155,000 24th August 2021,56,000 31st August 202157,000 3rd September 202158,000 16th September 202159,000 24th September 202160,000

IT Companies Stacking up Against Accenture

In terms of technology innovation and strategy, Accenture has always been a market leader. Accenture has always been a forward-thinking company with swift decision-making capabilities. It has made significant investments in future technology and has been aggressively training its staff in specialist future skill areas to ensure that they are always future-ready. Accenture is also incredibly diverse, and it values both diversity and inclusion. It has a lot of wonderful people. Accenture has generated exceptionally in-depth and complete deliverables and artifacts based on each industry due to their extensive industry understanding. These objects are cutting-edge and can be deployed to the client in a matter of seconds.

Here you can know about the IT companies in detail –

Accenture

Accenture is a market leader in technology and a worldwide, digital, cloud and security professional services firm. They offer strategic and consulting, interactive, technological and operational services, all driven by the world's largest network of advanced technology and smart operations centers

The team constitutes of more than 500,000 individuals who serve customers in over 120 countries.

TCS

TCS is one of the world's top consulting firms and provides IT services with a $144+ B market capitalization. They have over 450,000 of the greatest IT experts, growth and digital transformation at a great level in order to become flexible, smart, automated and cloud-based.

Cognizant

Cognizant is one of the world's top businesses for business, operations and technology for customers in the digital era. They provide services such as the digitization of their products, services and customer experiences.

Cognizant is specialized in helping some of the world's most established companies stay among the most devoted brands in today's fast-changing technical landscapes by promoting all aspects of how they serve their customers.

Infosys

Infosys is a leading worldwide technology and consulting company. They have customers in over 50 countries to develop and implement digital transformation plans.

They assist customers in discovering and solving challenges effectively from engineering through application development, knowledge management and business process management.

HCL

HCL has 150,000+ employees in 46 countries globally and a global R & D network, innovation laboratories and delivery centers.

The main services and products are offered by three business divisions: IT & business services, engineering and R&D, and product & platforms, and they are a global leader in technology. In order to detect and solve difficult commercial issues across a large number of sectors, they have technologies such as AI, IoT, machine learning and cloud.

HealthPlan Services (HPS)

HealthPlan Services (HPS) is the nation's leading independent supplier of insurance and management services, benefits management, maintenance, reform and technology solutions.

It was formed in 1970 and employs 1,500 or more employees with its headquarters in Tampa, Florida. It is a leader in the insurance sector and provides connection exchange, administration, distribution and technology services to individual, small group, voluntary, and corporate insurers as well as useful solutions to thousands of brokers and agents around the country.