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In December, CMS Info Systems Limited IPO was listed. Incorporated in 2008, CMS Info Systems Limited is India's largest cash management company in terms of the number of ATM points and retail pick-up points as of March 31, 2021.
The company is engaged in installing, maintaining, and managing assets and technology solutions on an end-to-end outsourced basis for banks, financial institutions, organized retail as well as e-commerce companies in India.
In the first place, CMS integrated business platform is supported by customized technology and process controls.
In addition CMS enables it to offer its customers a wide range of tailored cash management and managed services solution.
The Company caters to a broad set of outsourcing requirements for banks, financial institutions, organized retail as well as e-commerce companies in India.
firstly, the demand for cash and cash related services in India has increased, banks and other participants in India are increasingly outsourcing their ATM operations and management.
Secondly, As of August 31, 2021, it has a network of 3,965 cash vans , 238 branches , offices to cover all of India's states , union territories and covering 97.04% of India’s 742 districts, 14,949, or 77.46%, Indian postal codes.
At last the revenue of the cash management market in India grew from approximately ₹10.0 billion in the Fiscal Year 2010 to approximately ₹27.7 billion in the Fiscal Year 2021, a CAGR of 10.88%
Despite consistent growth in revenues, we saw a decline in FY21 which can be attributed to COVID-19. According to the company, the revenue in FY20 was Rs. 1388.29 Crores and fell to Rs 1321.92 crore in FY21.
However, the company has improved its net profit from Rs. 134.7 crore in FY 20 to Rs. 168.52 crore in FY 2021. Also the company has stable financial performance and increasing margins.
In the first place, the risk of market volatility needs to be considered right now on the back of rising cases from the omicron variant.
As the government focuses on digital payments, a further decrease in the use and availability of cash can have an adverse effect on business activities.
The IPO is priced at a PE of 19x to its FY21 EPS of Rs 11.09 and a P/BV of 3.24x on the NAV of Rs 66.52, which is in line with its listed peers. Thus we assign an "Avoid" rating to the IPO.
RatingSUSBCRIBE Issue OfferIssue Opens onDec 14, 2021Issue Close onDec 16, 2021Total IPO size (cr)588.22Fresh issue (cr)240.00Offer For Sale (cr)348.22Price Band (INR)555-585Market Lot25Face Value (INR)2Retail Allocation35%Listing OnNSE, BSEObjects of the issue ⮚ For Repayment of borrowings ⮚ For Funding working capital requirementIssue Break-up (%)QIB Portion 50NIB Portion 15Retail Portion ⮚ 35Shareholding (No. of Shares)Pre Issue 47,784,086Post Issue 51,886,650Indicative TimetableFinalisation of Basis of Allotment 21-12-2021Refunds/Unblocking ASBA Fund 22-12-2021Credit of equity shares to DP A/c 23-12-2021Trading commences 24-12-2021
Established in 1985, Data Patterns is a defence and aerospace electronics solutions provider specializing in indigenously designed defence equipment. The firm provides equipment for all types of defence and aerospace systems, including space, air, land, and sea.
Electronic hardware design and development, software and firmware design and development, mechanical design and development, product prototype design and development, functional testing and validation, environment testing and verification, and engineering services opportunities are among the company's core competencies.
⮚ It was one of the fastest-growing firms in terms of revenues among significant Indian defence and aerospace companies between Fiscal 2019 and Fiscal 2021, according to the Company Commissioned F&S Report, with a revenue increase of 71%.
⮚ The company's strengths throughout the gamut of defence and aerospace electronics solutions from design to delivery give it a considerable competitive edge in terms of overall development time and cost, as well as competitive pricing when bidding on defence and aerospace contracts.
⮚ The company has design capabilities across the entire spectrum of strategic defence and aerospace electronics solutions including processors, power, radio frequencies (“RF”) and microwave, embedded software and firmware and mechanical engineering.
⮚ The company is upgrading and expanding its facility, with a proposed doubling of available floor area and manufacturing capacity, as well as the addition of large and heavy equipment handling capability, large radar and mobile electronic warfare system integration, and a satellite integration facility. Its testing capabilities are also proposed to be further strengthened.
In the last 3 years, the company has shown strong growth in revenue where it grew at a CAGR of 19% from Rs 132.50 cr to Rs 226.55 cr over the period of FY19 to FY21, during the same period profit has grown at a CAGR of 97% from Rs 7.70 cr in FY19 to Rs 54.6 cr in FY21. The margins of the company are also expanding.
As part of the 'Make in India' initiative, the company will bid on bigger, more challenging contracts. Data Patterns increased its net profitability by approximately 158% between FY20 and FY21.
We believe that the company has enormous potential to grow rapidly thanks to the government's focus on Defense and Aerospace. The IPO is priced at a 49x PE and 13x P/BV to its FY21 earnings at an upper price band of Rs 585. Attractiveness in the defence sector is likely to boost sentiment for the IPO.
DATA PATTERNS (INDIA) LIMITED
⮚ Srinivasagopalan Rangarajan is the Chairman and Managing Director of the Company. He has been associated with the Company since its incorporation. He holds a Bachelor’s Degree of Technology in Chemical Engineering and he has over three decades of experience in business development, corporate affairs, finance and marketing.
⮚ Venkata Subramanian Venkatachalam is the Chief Financial Officer of the Company. He is a fellow member of the Institute of the Chartered Accountants of India. He has over two decades of experience in the finance sector.
⮚ Manvi Bhasin is the Company Secretary and Compliance Officer of the Company. She is an associate of the Institute of the Company Secretaries of India. She has three years of experience in legal and secretarial matters.
⮚ Vijay Ananth K is the Chief Operating Officer and Chief Information Security Officer of the Company. He has more than two decades of experience in software engineering and product management.
⮚ Desinguraja Parthasarathy is the Chief Technical Officer of the Company. He has 32 years of experience in Product Development.
⮚ Thomas Mathuram Susikaran is the Senior Vice President-Business Development. He holds a bachelor’s degree in engineering. He has over 21 years of experience in business development and marketing.
⮚ Nandaki Devi Ramachandracharya is the Deputy General Manager and Management Representative Quality Management System. She has 22 years of experience in test engineering.
⮚ Integrated and strategic defence and aerospace electronics solutions provider based in India, well-positioned to profit from the Make in India initiative.
⮚ Innovation focused business model.
⮚ Sound order book with orders from several prestigious customers in the Indian defence ecosystem. ⮚ The modern certified manufacturing facility of international standards.
⮚ Track record of profitable growth.
⮚ The experienced management team and skilled workforce.
⮚ Continue expansion of product portfolio with complex technology-based products.
⮚ Focus on repeat large volume production orders.
⮚ Improving manufacturing infrastructure and enhancing design and development capabilities
⮚ Augmenting the design and development capabilities and expanding manufacturing infrastructure
⮚ Focus on increasing revenues by leveraging core competencies and growing the services business
⮚ Focus on increasing export business
⮚ The company depends on a limited number of customers for major business.
⮚ Subject to strict quality requirements, customer inspections and audits, and any failure to comply with quality standards may lead to cancellation of existing and future orders
⮚ Failure to qualify for or win bids could have an adverse effect on its business.
⮚ If it does not maintain its technical information and processes discreet, it may lose its competitive advantage.
⮚ The company has significant working capital requirements.
DATA PATTERNS (INDIA) LIMITED
COMPARISON WITH LISTED INDUSTRY PEERS (AS ON 31ST MARCH 2021)
Name of the Company EPS (Basic) NAV P/E Operational Rev (cr) RoNW Data Patterns (India) Ltd 11.89 44.38 49 223.95 26.79% Peer Group MTAR Technologies Ltd 16.99 154.99 83.56 246.43 9.66%Astra Microwave Products Ltd 3.33 64.51 51.28 640.91 5.16%Centum Electronics Ltd 13.31 173.14 34.90 817.43 5.40%Bharat Electronics Ltd 8.62 45.39 23.49 14,108.69 18.99%
FINANCIALS (RESTATED CONSOLIDATED)
Particulars (Rs. In Millions) FY 2021 FY 2020 FY 2019Equity Share Capital 17.00 17.00 17.00Other Equity 2060.70 1517.95 1311.93Net Worth 2077.70 1534.95 1328.93Total Borrowings 332.21 605.66 601.33Revenue from Operations 2239.50 1560.98 1310.63EBITDA 945.88 472.50 269.93Profit Before Tax 745.34 284.29 103.59Net Profit for the year 555.71 210.48 77.02
Issue Opens on Dec 15, 2021Issue Close on Dec 17, 2021 Total IPO size (cr)125.96 Fresh issue (cr) 113.44 Offer For Sale (cr) 12.53 Price Band (INR) 262-274 Market Lot 50 Face Value (INR)10 Retail Allocation 10% Listing On NSE, BSE
⮚ For funding the working capital.
⮚ Capital expenditure for expansion.
QIB Portion 75 NIB Portion 15 Retail Portion 10
Pre Issue1,42,34,947Post Issue1,83,74,947
Finalization of Basis of Allotment 22-12-2021 Refunds/Unblocking ASBA Fund 23-12-2021 The credit of equity shares to DP A/c 24-12-2021 Trading commences 27-12-2021
Registered in 2019, HP Adhesives Limited is an adhesives and sealants company. The company manufactures a wide range of consumer adhesives and sealants such as PVC, cPVC, and uPVC solvent cement, synthetic rubber adhesive, PVA adhesives, silicone sealant, acrylic sealant, gasket shellac, other sealants, and PVC pipe lubricants.
These adhesives and sealant products have applications in multiple industries such as plumbing and sanitary, drainage and water distribution, general-purpose building/ construction, and interior operations as well as for glazing operations, woodwork, footwear, automotive, foam-furnishing, and other varied industries.
⮚ Apart from the above products, the company also sells ancillary products like ball valves, thread seals, and other tapes and FRP products for drainage and architectural solutions.
⮚ The company has grown from a single product to a multi-product adhesives company with sales across India (through a pan-India distribution network) and also in international markets.
⮚ Over the years, Company’s brands “HP” and “Strong Weld” in the PVC adhesives product category have gained increasing acceptance on account of high product quality and efficient pricing.
⮚ The company has a solid business model that focuses on consistently expanding its product portfolio by introducing new product categories and SKUs to cater to a wide range of end-use applications and selling them through its distribution network across India.
⮚ As of September 30, 2021, its distribution network comprised of 4 depots situated in Delhi, Kolkata, Bengaluru, and Indore and more than 750 distributors who cater to more than 50,000 dealers in India
⮚ The company wants to expand its manufacturing capacity at Village Narangi, Raigad, Maharashtra to cater to the growing demand for several product categories.
In the last 3 years, the company has shown stable growth in revenue where it grew from Rs 87.97 cr to Rs 123.87 cr over the period of FY19 to FY21, during the same period profit has grown from Rs 4 cr in FY19 to Rs 10.05 cr in FY21, but the company faced a huge loss of Rs. (4.67) cr in FY20 on the back of exceptional item.
The industry is expected to grow at a CAGR of 6-8% while the company is in a growth phase and is expanding installed capacities for its product lines and is also expanding its portfolio.
The IPO is valued at a PE of 35x and P/BV of 28x to its FY21 earnings. However, if we annualized FY22 earnings PE and P/BV work out to be 81x and 10.38x which is in line with the peer. Due to its small size, the SME-IPO is going to be listed in the T2T segment.
We have an "AVOID" rating for the IPO.
For additional information & risk factors please refer to the Red Herring Prospectus
⮚ Anjana Haresh Motwani, with over 40 years of experience in the adhesive industry, is currently designated as the Executive Director and Chairperson of the Company.
⮚ Karan Haresh Motwani currently holds the position of Managing Director of the Company. He was admitted to the partnership M/s. HP International in 2007.
⮚ Mr Mihir Shah, is the chief financial officer of the Company. He has been associated with the Company since May 2021. He has an overall experience of nearly 15 years in investment banking.
⮚ Ms Jyoti Nikunj Chawda is the Company Secretary & Compliance Officer of the Company. She is a commerce and law graduate from the University of Mumbai and holds an overall experience of nearly 7 years in secretarial and compliance functions.
⮚ Ms Nidhi Haresh Motwani is the Vice President – Operations of the Company, She has been associated with the Company since February 2016. She has an overall experience of 10 years in the fields of branding, marketing, and sales.
⮚ Mr Saurabhraj Bhatt is the Vice President – Sales and Marketing, of the Company. He has an overall experience of about 22 years. He handles the product promotion, branding, sales, and marketing functions of the Company.
⮚ Mr. K. P. Unnikrishnan is the Assistant Vice President – New Product Development of the Company. He has a multi-functional experience of 36 years
⮚ Mr. Sabrinath Gopalkrishnan Nair is the Senior Manager – Purchase of the Company. He has experience of over 28 years in accounts, inventory control and logistics operations.
⮚ Consistently growing company with established brand presence
⮚ Wide Product Portfolio and Multiple SKUs
⮚ Focusing on multiple end-user industries
⮚ Extensive distribution network across India catering to customers.
⮚ Efficient manufacturing set-up with scope for expansion
⮚ Effective quality checks
⮚ R&D set up for constant product improvement and new product development
⮚ Further, strengthen brand image
⮚ Expansion of manufacturing facility
⮚ Further expansion of distribution network across India and globally
⮚ The impact of the COVID-19 pandemic on business and operations is uncertain.
⮚ The company does not have any long-term arrangements with its distributors.
⮚ Restrictions on the import of raw materials may adversely impact the business.
⮚ Prices of the principal raw materials are subject to changes in the prices of crude oil.
⮚ The company has incurred losses in the recent past.
HP ADHESIVES LIMITED
COMPARISON WITH LISTED INDUSTRY PEERS (AS OF 31ST MARCH 2021)
Name of the Company EPS (Basic) NAV P/E Total Income (Mn) RoNW (%)HP Adhesives Limited 7.74 9.74 35 118.16 79%Peer GroupPidilite Industries Limited 22.26 114.78 81.28 7293.00 114.78
FINANCIALS (RESTATED CONSOLIDATED)
Particulars (Rs. In Lakh) FY 2021 FY 2020 FY 2019Equity Share Capital 1,300.00 1,300.00 1,300.00Other Equity (34.12) (1,051.56) 166.23Net Worth 1,265.88 248.44 1,466.23Total Borrowings 3,138.52 3,405.98 2,358.33Revenue from Operations 11,816.16 9,547.93 8,741.75EBITDA 1,768.67 691.95 870.09Profit Before Tax 1,323.02 (536.06) 405.91Net Profit for the year 1,005.96 (467.05) 400.07
Rating SUBSCRIBE Issue Offer Issue Opens on Dec 13, 2021Issue Close on Dec 15, 2021Total IPO size (cr) 1,398.30Fresh issue (cr) 600.00Offer For Sale (cr) 798.30Price Band (INR) 780-796Market Lot 18Face Value (INR) 2Retail Allocation 35%Listing On NSE, BSE
Objects of the issue
⮚ For funding working capital requirement of the subsidiary.
⮚ For general corporate purposes. Issue Break-up (%)QIB Portion 50NIB Portion 15Retail Portion
⮚ Shareholding (No. of Shares)Pre Issue 111,761,165Post Issue 119,305,676
Indicative Timetable
Finalisation of Basis of Allotment 20-12-2021Refunds/Unblocking ASBA Fund 21-12-2021Credit of equity shares to DP A/c 22-12-2021Trading commences 23-12-2021
Incorporated in 2006, Medplus Health Services is India's second-largest pharmacy retailer in terms of the number of stores and revenue.
The company offers pharmaceutical and wellness products i.e. medicines, vitamins, medical devices, test kits, and fast-moving consumer goods i.e. home and personal care products, baby care products, sanitisers, soaps, and detergents, etc.
It is also the first pharmacy retailer in India to offer an omnichannel platform wherein customers can purchase products through stores, place orders over the telephone, online orders, and a Click and Pick facility.
⮚ According to the Technopak Report, it is India's first pharmaceutical retailer to offer an omnichannel platform. This approach aims to broaden and expand the Company's client base while also enhancing "convenience" as a primary customer value proposition and retaining customers inside its ecosystem.
⮚ As of September 30, 2021, we operated 546 stores in Karnataka, 475 stores in Tamil Nadu, 474 stores in Telangana, 297 stores in Andhra Pradesh, 224 stores in West Bengal, 221 stores in Maharashtra and 89 stores in Odisha.
⮚ The company has an established track record of delivering strong financial performance. Between the financial year 2019 and financial year 2021, total revenue from operations grew at a compound annual growth rate (“CAGR”) of 16.21% from ₹22,727.37 million to ₹30,692.69 million.
⮚ The company’s business operations across the entire value chain are backward integrated and are wholly managed and operated by itself. The company's operations are supported by its technology-driven supply chain and distribution infrastructure, which is arranged in a hub-and-spoke model and gives it a strong foundation and substantial power to continue to grow.
Over the period of FY19 to FY21, company revenue increased from Rs 2,284.94 crore to Rs 3,090.81 crore, while profits grew from Rs 11.92 crore in FY19 to Rs 63.11 crore in FY21 with only a slight dip in FY20.
Margins of the company are increasing slowly.
The company is the second-largest pharmacy retailer in India which offers an omnichannel platform. After a dismal performance for FY20, the company posted super earnings recently.
The company has low margins, but it is expanding. We believe that there are growth opportunities in the industry and might perform better over the period. There are no listed peers and IPO is arriving at a PE of 71x to its annualized FY22 earnings.
Prima-facie the valuation looks expensive but over the period of time, we believe the company's growth may justify its valuation.
MEDPLUS HEALTH SERVICES LIMITED
⮚ Ganga Madhukar Reddy is the Managing Director and Chief Executive Officer of the Company. He is one of the Promoters of the Company and has been a Director of the Company since its incorporation on November 30, 2006. He holds a bachelor’s degree in medicine and surgery and a master’s degree in business administration.
⮚ Cherukupalli Bhaskar Reddy is the Chief Operating Officer – outlet operations of the company. He joined the company on March 1, 2007. He has over 14 years of experience in the pharmaceutical industry.
⮚ Surendranath Mantena is the Chief Operating Officer – MedPlus Mart of the company. He joined the company on October 1, 2010.
⮚ Hemanth Kundavaram is the CFO of the company. He joined the company on January 2, 2021. He has over 15 years of experience in corporate finance and accounting in various industries.
⮚ Parag Jain is the company secretary and compliance officer of the company. He joined the company on March 10, 2014. He has 14 years of experience as a company secretary.
⮚ Atul Gupta is the Non-Executive Director of the company. He has over 13 years of experience in the investment industry.
⮚ Murali Sivaraman is the Non-Executive Independent Director of the company. He was previously associated with Philips Lighting.
⮚ India’s Second Largest Pharmacy retailer Company.
⮚ Strong brand name and customer value proposition.
⮚ Successful Track Record of Expansion Using a Distinct Cluster-based and Replicable Store Unit Expansion Approach
⮚ High-Density Store Network Enhancing Omni-channel Proposition
⮚ Lean Cost Structure and Technology-Driven Operations
⮚ Well Qualified, Experienced and Entrepreneurial Board and Senior Management Team
⮚ Strong promoter background and an experienced and entrepreneurial management team
⮚ Strengthen the Market Position by Increasing Store Penetration in Existing Clusters and Developing New Cluster
⮚ Further Develop the Omni-channel Platform with a Hyper-local Delivery Model
⮚ Increase the Share of Private Labels and Enhance the Stock Keeping Unit (“SKU”) Mix
⮚ Continue to Increase Operating Efficiency and Enhance Supply Chain Management to Drive Profitability
⮚ Enhance Revenue and Increase Customer Wallet Share.
⮚ Changes in prescription medicine prices and commercial terms may have a negative impact on their business.
⮚ Their company, subsidiaries, promoters, and directors are involved in ongoing legal procedures.
⮚ Privacy and security rules govern the use and sharing of personally sensitive information, especially personal health information.
⮚ Their financial success may be harmed if they will not effectively manage inventory and forecast demand.
⮚ Any negative news or occurrence related to the Indian pharma industry may have a negative impact on their business.
MEDPLUS HEALTH SERVICES 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 2019 Equity Share Capital 4.48 1.94 1.94Other Equity 7,301.05 5,276.08 2,911.43 Net Worth 7,305.53 5,278.02 2,913.37 Total Borrowings 1,352.35 1,050.51 1,044.02 Revenue from Operations 30,692.69 28,706.03 22,727.37 EBITDA 2,382.13 1,509.62 1,313.47 Profit Before Tax 950.98 293.59 227.51 Net Profit for the year 631.11 17.94 119.22
Rating SUSBCRIBE Issue Offer Issue Opens on Dec 09, 2021Issue Close on Dec 13, 2021 Total IPO size (cr) 1,039.61Fresh issue Nil Offer For Sale (cr) 1,039.61Price Band (INR) 1,000-1,003 Market Lot 14 Face Value (INR) 2Retail Allocation 35%Listing On NSE, BSE
⮚ For achieving the benefits of listing on the stock exchanges.
Issue Break-up (%)QIB Portion 50NIB Portion 15Retail Portion 35
C.E. Info systems limited (MapmyIndia) is a leading provider of advanced digital maps, geospatial software, and location-based IoT technologies in India. The company is a data and technology products and platforms company, offering proprietary digital maps as a service (MaaS), software as a service (SaaS), and platform as a service (PaaS). The company provides products, platforms, application programming interfaces (APIs), and solutions across a range of digital map data, software, and IoT for the Indian market under the (MapmyIndia) brand, and for the international market under the (Mappls) brand.
⮚ Company provide 2D and 3D visual and voice-based navigation platforms that are interactive, capable of outdoor and indoor map rendering, location search, geocoding and reverse geocoding, as well as traffic and turn-by-turn route planning optimization.
⮚ Its geo-analytics services assist customers in a variety of industries in analyzing their markets and developing prediction models using geographical patterns offered by them. These services also give consumers with near-real-time dashboarding and monitoring capabilities.
⮚ Company’s IoT platform, ‘InTouch’, enables connectivity with real world sensors, phones and IoT devices. It provides a wide range of applications for near real-time vehicle and asset tracking, geo fencing alerts, historical movement and driver behavior analysis, predictive vehicle health alerts, as well as fleet, transport and logistics management
⮚ The company's digital maps comprehensively cover India; approximately its digital maps cover 6.29 million kilometers of roads in India, representing 98.50% of India’s road network.
Shareholding (No. of Shares)Pre Issue 53,242,967Post Issue 53,242,967
Indicative Timetable
Finalisation of Basis of Allotment 16-12-2021Refunds/Unblocking ASBA Fund 17-12-2021Credit of equity shares to DP A/c 20-12-2021Trading commences 21-12-2021
The company has shown stable growth in revenue, where it grew from Rs 163.35 cr to Rs 192.27 cr over the period of FY19 to FY21, over the same period profit, has grown from Rs 33.56 cr in FY19 to Rs 59.43 cr in FY21 with a minor dip in FY20. MapmyIndia is the leader in digital mapping in India and has an early mover advantage. We believe that new edge technology including SaaS, PaaS, and MaaS platform providers has a sparkling future for the next few years. The company serves various industries and sectors which is also a positive. The company saw stable revenue growth in the last few years where the margins have improved too also there are no listed peers currently. The IPO is arriving at a PE of 93x and P/BV of 15x on FY21 earnings, being the first mover the company is seeking higher valuation.
C.E. INFO SYSTEMS LIMITED
⮚ Rakesh Kumar Verma is the Chairman and Managing Director of the Company. He co-founded this Company along with Rashmi Verma in 1995 and has significant experience as an entrepreneur in the field of digital maps and geospatial information technologies.
⮚ Rohan Verma is the Whole-time Director and the CEO of the Company. He joined this Company in 2007 and worked in various capacities and was appointed as CEO of the Company with effect from April 1, 2019.
⮚ Anuj Kumar Jain is the Chief Financial Officer of the company and has been associated with the company since May 2011. He has significant experience in the field of finance, taxation, and accounting.
⮚ Saurabh Surendra Somani is the Company Secretary and Compliance Officer of the company with effect from July 27, 2021. He has significant experience in the fields of legal, secretarial and listing compliance.
⮚ Rashmi Verma is the co-founder and chief technology officer of the company. Prior to founding the company, she worked in the U.S.A., including with the IBM Corporation till 1988. She has significant experience as an entrepreneur in the fields of information technology, management, and the geospatial industry, and digital mapping in India.
⮚ Shishir Verma is the senior vice-president, human resources and corporate affairs, and had joined the company on January 17, 2014. He has to look after corporate and legal affairs of the company.
⮚ Pioneers of digital mapping in India having an early mover advantage.
⮚ Leading the B2B and B2B2C market for digital maps and location intelligence in India.
⮚ Market position built around proprietary technology and network effect resulting in strong entry barriers.
⮚ Independent, global geospatial products and platforms company with strong data governance. ⮚ Prestigious customers across sectors with strong relationships.
⮚ Profitable business model with consistent financial track record, high operating leverage and strong cash flows.
⮚ Continue to scale and expand the customer reach leveraging market presence in India.
⮚ Augment company products, platforms and the technology lead.
⮚ Drive expansion in international markets and geospatial sector
⮚ Pursue selective strategic acquisitions and investments to grow their business
⮚ The entire proceeds of the IPO is Offer for Sale. Means, the IPO proceeds would go to selling shareholders and company would not get anything except for listing gains.
⮚ Part of the business is dependent on the performance of the auto sector in India. Any adverse changes in the conditions affecting this sector can impact the business.
⮚ Company’s inability to maintain or update its map database or errors in its map database could harm the reputation of the company.
⮚ Company depends on a limited number of customers for a significant portion of its revenues.
⮚ Company is dependent on trends in the sectors where enterprise customer operates.
C.E. INFO SYSTEMS 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 38.33 38.33 38.33Convertible Preference Shares 1,289.64 1,289.64 1,289.64Other Equity 2,252.01 1,649.43 1,524.03Net Worth 3,579.97 2,977.39 2,851.99Total Borrowings 5.90 8.80 0.00Revenue from Operations 1,524.63 1,486.29 1,352.55EBITDA 543.24 371.87 404.60Profit Before Tax 787.66 315.96 418.02Net Profit for the year 594.33 231.95 335.66
Rating
SUSBCRIBE (Only Long-Term Investors)Issue Offer
Issue Opens on Dec 10, 2021Issue Close on Dec 14, 2021Total IPO size (cr) 1,367.51Fresh issue 295.00Offer For Sale (cr) 1072.51Price Band (INR) 485-500Market Lot 30Face Value (INR) 5Retail Allocation 35%Listing On NSE, BSE
Objects of the issue
⮚ For meeting Capex requirements.
⮚ For general corporate purposes.Issue Break-up (%)QIB Portion 50NIB Portion 15Retail Portion 35
Established in 1955, Metro Brands Limited is one of the largest Indian footwear speciality retailers. Customers' footwear demands are met by a diverse assortment of branded products of Company for men, women, unisex, and children, as well as for various events. The company targets the mid and premium segments in the footwear market which have a higher presence of organized players and growth in the overall footwear industry. Metro, Mochi, Walkway, Da Vinchi, and J. Fontini, as well as Crocs, Skechers, Clarks, Florsheim, and Fitflop, are among the company's well-known brands. The company follows the "company owned and company operated" (COCO) model of retailing through their own Multi Brand Outlets (MBOs) and Exclusive Brand Outlets (EBOs), to manage their stores.
⮚ The company’s total store count has grown from 504 in 116 cities as of March 31, 2019, to 586 stores across 134 cities as of March 31, 2021, and to 598 stores across 136 cities as of September 30, 2021, also Company had the third-highest number of exclusive retail outlets in India, in Fiscal 2021
⮚ The company also offers accessories such as belts, bags, socks, masks and wallets, at its stores. It also offers foot care and shoe care products at stores through its joint venture, M.V. Shoe Care Private Limited, making it a ‘one-stop-shop’ for all footwear and related accessories for customers.
⮚ In Fiscal 2021, In-Store Product Sales, Online Product Sales, and Omni-Channel Product Sales represented 91.93%, 6.15%, and 1.09%, of the Company’s revenue from operations, respectively.
⮚ The company’s retail operations are carried out through stores and distributors as well as through online channels. It primarily follows the ‚company owned and company operated‛ (COCO) model of retailing through its own Multi Brand Outlets (MBOs) and Exclusive Brand Outlets (EBOs), to better manage customer experience at stores.
The company's revenue dropped by 33% in the
Shareholding (No. of Shares)
Pre Issue 265,607,426Post Issue 271,507,426
Indicative Timetable
Finalisation of Basis of Allotment 17-12-2021Refunds/Unblocking ASBA Fund 20-12-2021Credit of equity shares to DP A/c 21-12-2021Trading commences 22-12-2021
Year FY21 to Rs 878 cr from Rs 1311 cr in FY20 on the back of the Covid-19 pandemic. Similarly, profit also declined from Rs. 160.5 cr in the year FY20 to Rs. 64.61 cr in the FY21. The margin of the company was flat in FY19 and FY20 while it dropped since COVID. Metro Brands Limited has demonstrated its growth, profitability, and financial discipline in the past as one of India's leading pan-India footwear retailers. The sector is mostly under-rated and may see a re-rating. The majority of their revenue is from third parties and the company has an asset-light business model however we believe that the IPO is priced aggressively. The IPO is arriving at PE of 205x and P/BV of 16x while if we annualized the FY22 earnings PE works out to be 157x.
SME-IPO Note
METRO BRANDS LIMITED
⮚ Rafique A. Malik is the Chairman of the Company’s Board. He has been associated with this Company as a director since January 19, 1977. He has over 50 years of experience in the field of footwear retail.
⮚ Farah Malik Bhanji is the Managing Director of the Company. She has been associated with the Company as a director since December 5, 2000. She has over 20 years of experience in the field of footwear retail.
⮚ Mohammed Iqbal Hasanally Dossani is the Whole-time Director of the Company. He holds a bachelor’s degree in commerce, Financial Accounting and Auditing.
⮚ Utpal Hemendra Sheth is the Non-Executive Director of the Company. He holds a bachelor’s degree in commerce. He was first appointed as an alternate director in the Company on March 14, 2007.
⮚ Manoj Kumar Maheshwari is the Independent Director of the Company. He has been associated with the Company as an Independent Director since July 24, 2009.
⮚ Aruna Bhagwan Advani is the Independent Director of the Company. She has been associated with the Company as an Independent Director since July 27, 2010.
⮚ Arvind Kumar Singhal is the Independent Director of the Company. He has been associated with the Company as an Independent Director since August 12, 2016.
⮚ Vikas Vijaykumar Khemani is the Independent Director of the Company. He has been associated with the Company as an Independent Director since March 12, 2019. He is an associate of the Institute of Chartered Accountants of India
⮚ Tina Srikanth Velamakanni is the Independent Director of the Company. He has been associated with the Company as an Independent Director since March 25, 2021.
⮚ One of India's largest footwear retailers brands.
⮚ Wide range of brands and products catering to all occasions across age groups and market segments
⮚ Efficient operating model through deep vendor engagements and TOC based supply chain.
⮚ Asset light business with an efficient operating model leading to sustained profitable growth
⮚ Presence across multiple formats and channel
⮚ Strong track record of growth and profitability and financial discipline
⮚ Strong promoter background and an experienced and entrepreneurial management team
⮚ Expand the store network in existing and new Indian cities.
⮚ Increase the contribution of e-commerce and omnichannel sales as a proportion of the sales.
⮚ Expand the portfolio of accessories and grow other allied businesses
⮚ The ongoing COVID-19 epidemic has had a substantial impact on their business.
⮚ All of their stores and warehouses are leased spaces.
⮚ For the production of all the items they sell, they rely on third parties.
⮚ They may not be effective in maintaining and increasing brand visibility.
⮚ The selling of third party brands accounts for a major amount of their revenues.
For additional information & risk factors please refer to the Red Herring Prospectus
IPO NoteMETRO BRANDS LIMITEDCOMPARISON WITH LISTED INDUSTRY PEERS (AS OF 31ST MARCH 2021)Name of the Company EPS (Basic) NAV P/E Total Income (Mn) RoNW (%)Metro Brands Limited 2.43 31.17 205 8,785.38 8.24Peer GroupBata India Limited (6.95) 136.79 - 18,025.65 (5.08)Relaxo Footwears Limited 11.74 63.29 118 23,819.20 18.54FINANCIALS (RESTATED CONSOLIDATED)Particulars (Rs. In Millions) FY 2021 FY 2020 FY 2019Equity Share Capital 1,327.67 1,327.67 1,327.67Other Equity 6,948.03 6,745.22 5,170.99Net Worth 8,275.70 8,072.89 6,498.66Total Borrowings 14.06 115.23 98.56Revenue from Operations 8,000.57 12,851.62 12,170.65EBITDA 1709.3 3535.1 3373.3Profit Before Tax 845.05 2,184.17 2,281.28Net Profit for the year 646.19 1,605.75 1,527.30
RatingSUSBCRIBE (Only Aggressive Investors)Issue OfferIssue Opens on Dec 08, 2021Issue Close on Dec 10, 2021Total IPO size (cr) 600Fresh issue 250Offer For Sale (cr) 350Price Band (INR) 113-118Market Lot 125Face Value (INR) 10Retail Allocation 10%Listing On NSE, BSEObjects of the issue ⮚ For repayment of borrowings. ⮚ For general corporate purposes.Issue Break-up (%)QIB Portion 75NIB Portion 15Retail Portion 10⮚ Shareholding (No. of Shares)Pre Issue 148,411,448Post Issue 169,597,889Indicative TimetableFinalisation of Basis of Allotment 15-12-2021Refunds/Unblocking ASBA Fund 16-12-2021Credit of equity shares to DP A/c 17-12-2021Trading commences 20-12-2021
The company's financials have been on a weaker note where revenues of the company are declining while the company turned loss-making since FY20. The company's revenues in FY19 were Rs. 723 cr, which fell to Rs 501 cr in FY21, while it made a profit of Rs 48 cr in FY19 and a loss of Rs 67 cr in FY21.
Despite strong brand recognition, the company has suffered losses during the COVID, when real estate and housing were booming. Being a loss-making company retail portion is 10%.
The SME IPO is arriving at a P/BV of 2.09x while the industry average is 3.69x which might attract minor listing gain. However, we believe that there are many reputable listed companies such as Sobha, Brigade, Prestige, etc., and only "AGGRESSIVE INVESTORS" should apply for the IPO.
SHRIRAM PROPERTIES LIMITED
⮚ M. Murali is the Chairman and Managing Director and individual Promoter of the Company. He has over 17 years of work experience with this Company and was first appointed as a Director on March 30, 2003.
⮚ S. Natarajan is a Non-Executive Director of the Company.
He is a member of the Institute of Chartered Accountants of India since 1975. He has been associated with the Shriram group for over 17 years and has been a Director of the Company since March 30, 2003.
⮚ Raphael Dawson is a Non-Executive Nominee Director of the Company. He has more than 15 years of work experience.
⮚ Gautham Radhakrishnan is a Non-Executive Nominee Director of the Company. His career has been exclusively in private equity and corporate finance.
⮚ T.S. Vijayan is an Independent Director of the Company. He has many years of experience in the insurance sector and was formerly the Chairman of the Life Insurance Corporation of India.
⮚ K.G. Krishnamurthy is an Independent Director of the Company. He has over 38 years of experience in the real estate sector.
⮚ Anita Kapur is an Independent Director of the Company. She has been a director of the Company since November 14, 2018.
⮚ Professor R. Vaidyanathan is an Independent Director of the Company. He has been a director of the Company since December 13, 2018.
⮚ Part of the Shriram Group and Backed by Marquee Investors.
⮚ One of the Leading Residential Real Estate Development Companies in South India with a Focus on Mid-market and Affordable Housing Categories.
⮚ Demonstrated Capabilities in Project Identification and Strong Execution Track Record
⮚ Established Strategic Relationships
⮚ Scalable and Asset Light Business Model supported by our Strong Financial Position
⮚ Well Positioned to Benefit from Regulatory and Industry Developments
⮚ Experienced and Professional Management Team
⮚ The company has strong, proven capabilities in the identification and execution of projects.
⮚ Their business is capital intensive and is significantly dependent on the availability of real estate financing in India.
⮚ Shortages or disruption in the supply of labor and key building materials could affect the estimated construction cost and timelines.
⮚ They depend on landowners or developers for obtaining certain regulatory approvals for the development management business any failure in that may adversely affect the business.
⮚ The Indian real estate sector is heavily regulated. Changing laws, rules and regulations and legal uncertainties.
⮚ An increase in competition in the Indian real estate sector may adversely affect profitability.
⮚ The company has a significant amount of debt which could affect its ability to obtain future financing or pursue its growth strategy.
SHRIRAM PROPERTIES LIMITED
COMPARISON WITH LISTED INDUSTRY PEERS
Name of the Company EPS (Basic) NAV P/E P/BV Total Income (mn)c Shriram Properties Limited (4.60) 56.44 - 2.09 5,013.08 Peer Group Sobha Limited 6.57 255.97 133.13 3.32 21,904.00Prestige Estates Projects Limited 36.32 166.52 12.86 2.68 75,018.00Brigade Enterprises Limited (2.24) 111.32 - 4.08 20,103.90Godrej Properties Limited (7.48) 299.32 - 6.70 13,330.90Oberoi Realty Limited 20.33 257.68 45.29 3.24 20,905.87Sunteck Realty Limited 2.98 19.75 160.64 2.28 6,308.42
FINANCIALS (RESTATED CONSOLIDATED)
Particulars (Rs. In Millions) FY 2021 FY 2020 FY 2019Equity Share Capital 1,481.10 1,481.10 1,481.10Other Equity 6,791.78 7,459.82 8,215.10 Net Worth 8,272.88 8,940.92 9,696.20Total Borrowings 7,271.69 7,372.47 8,456.65 Revenue from Operations 5,013.08 6, 318.43 7,237.80 EBITDA 1,210.53 904.14 799.30Profit Before Tax (452.00) (816.58) 829.21 Net Profit for the year (674.80) (864.25) 480.62
The SME-IPO is purely OFS based where the company will not get anything from proceeding.
COMPARISON WITH LISTED INDUSTRY PEERS (As of 31st March 2021)
Name of the CompanyEPS (Basic)NAVP/EP/BRoNW (%)Aditya Birla Sun Life AMC Limited18.2759.1938.912.0230.87Peer GroupHDFC Asset Management Company Limited62.16224.2850.914.227.76Nippon Life India Asset Management Limited11.0450.2938.48.621.94UTI Asset Management Company Limited38.97255.3130.14.315.27
Particulars (Rs. In Millions)FY 2021FY 2020FY 2019Equity Share Capital180.00180.00180.00Other Equity16,866.1312,988.7312,025.65Net Worth17,046.1313,168.7312,205.65Revenue from Operations11,910.2812,338.3514,060.67EBITDA7,388.877,026.926,839.03Profit Before Tax6,958.886,607.296,457.67Net Profit for the year5,262.804,944.024,467.99
The AMC industry has grown tremendously in recent years on the back of strong flows by the individuals as the AMC companies are increasing penetration across geographies. Also, the tech easiness is helping the millennials to get access to AMC easily.
Exxaro Tiles is a company that specializes in the marketing and production of vitrified tiles. It was founded in 2008. Exxaro Tiles has a product range that includes over 1000 distinct tile designs in six sizes.
The firm's well-known products include the Galaxy Series, Topaz Series, and High Gloss Series. The firm produces glazed vitrified tiles composed of ceramic elements such as quartz, clay, and feldspar, as well as double charge vitrified tiles (double layer pigment).
Large infrastructure projects, such as educational, hotels, educational institutions, government, and hospitals, are also served by the firm.
A pre-IPO placement of up to 22 lakh shares may potentially be considered by the firm.
According to the DRHP, the SME IPO would be for up to 1.34 crore shares, with a fresh issuance of 1.12 crore shares and a Dixit kumar Patel offer for the sale of up to 22.38 lakh shares.
The fresh issue's net proceeds would be used to repay debt, finance working capital requirements, and for general company reasons.
Up to 50% of the shares will be allocated for qualified institutional purchasers, while 15% will be designated for non-institutional investors; the remaining 35% will be reserved for retail investors.
Employees will be entitled to a part of the offer.
Subscription Dates4 – 6 August 2021 Price Band INR 118 – 120 per share Fresh issue 11,186,000 shares Offer For Sale 2,238,000 shares Total IPO size 13,424,000 shares Minimum bid (lot size) 125 shares Face Value INR10 per share Retail Allocation 35% Listing On NSE, BSE
In the fiscal year ending March 2021, the company's top five customers contributed 36.34 per cent of revenue, while the top ten customers accounted for 40.76 per cent of the top line. The Group continues to work to improve its position in the business world by establishing successful verticals.
Through its more than 2,000 registered dealers, it generates over 86 per cent of its income from the domestic retail and institutional market.
The remaining 13.88 per cent of total income comes from exports, the firm has no long-term commitments with any of its institutional clients, resulting in a hazy picture of its order book in the future.
The firm requires a significant quantity of operating capital to continue expanding.
The company's failure to manage its working capital requirements might have a detrimental impact.
We advocate investing in the Stock IPO for the reasons stated above.
Devyani International Ltd is the largest Yum Brands franchisee in India and one of the country's leading operators of chain quick-service restaurants (QSR).
As of March 31, 2021, the company had 655 outlets in 155 cities across India. Yum! Brands Inc. owns and runs KFC, Pizza Hut, and Taco Bell restaurants around the world, with over 50,000 locations in more than 150 countries.
Devyani International IPO subscriptions will begin on August 4th and end on August 6th, 2021. The additional offering of up to Rs. 1,838 crores in the Initial Public Offering of Equity Shares.
The new issuance was reported as raising up to Rs 440 crore and offering up to 155,333,330 equity shares for sale.
The offer's price range has been set at Rs 86–90 per share.
The IPO constitutes an offer for sale of up to 155.33 million shares by the existing shareholders and promoters as well as an Rs440 crore fresh issue.
The objectives of the Devyani International IPO are:(i) Repayment of all borrowings(ii) General corporate purposes
RJ Corp Ltd owns the company are up to 90 million. While Dunearn Investments Mauritius Pte is owned the company up to 65.34 million shares, The proceeds of the offering will then be used to repay some or all of the firm's debts.
The total outstanding borrowings of its Company (on a consolidated level) were 541.59 Crores as of June 2021. Devyani is India's largest quick-service restaurant (QSR) company to be listed on Swiggy and Zomato in 2019-2020
Investment bankers that are been appointed for the Issue are as follows :
Devyani International IPO details Subscription Dates 4 – 6 August 2021Price BandINR86 – 90 per share Fresh issueINR440 crore Offer For Sale155,333,330 shares (INR1,335.87 – 1,398 crore)Total IPO sizeINR1,775.87 – 1,838 crore Minimum bid (lot size)165 shares Face Value INR1 per share Retail Allocation 10% Listing On NSE, BSE
Strength
Risks
Company Strategies
IPO Issue Allocation:
The company is a major QSR player with well-known international brands. However, the company has experienced a net loss in recent years as a result of high advertising costs, license fees, and commissions.
With the current euphoria in the stock market and IPO listings, one can subscribe to the IPO. Despite the epidemic, it has continued to develop its shop network, opening 109 outlets in the last six months across its core brand business.
KFC and Pizza Hut were among the first to provide contactless delivery in May 2020 and June 2020, respectively.
It is expected that considerable interest will be seen through this IPO. It also provides listing gains. With an increasing number of individuals ordering food or visiting restaurants, future growth appears to be optimistic.
Krsnaa Diagnostics Ltd provides a comprehensive variety of technology-enabled diagnostic services to public and private hospitals, medical institutions, and community health centres across India, including imaging (including radiology), pathology/clinical laboratory, and teleradiology. Across many divisions, the company delivers high-quality, all-inclusive diagnostic services at reasonable prices. Krsnaa Diagnostics Ltd's Initial Public Offering (IPO) will commence for bidding on August 4, 2021, and end on August 6, 2021. A new offering of Rs 400 crore will be part of the company's IPO. It also includes an offer by the company's existing promoters and shareholders to sell up to 8.53 million or 85.30 lakh shares. PHI Capital Growth Fund will sell 1.6 million or 16 lakh shares, Kitara PIIN 1104 will sell up to 3.34 million or 33.4 lakh shares, Somerset Indus Healthcare Fund I Ltd will sell up to 3.56 million or 35.6 lakh shares, and Lotus Management Solutions will sell up to 21,380 shares in the Offer for Sale (OFS).
About the IPO
Krsnaa Diagnostics plans to raise Rs 1,213.33 crore through its first public offering. The issue is made up of a new issue of Rs 400 crore and an offer for sale (OFS) for Rs 813.33 crore, comprising 8,525,520 equity trading shares having a face value of Rs 5 each. On August 3, a day before the IPO opens for subscription, all anchor reservations will take place. The issue price range was Rs 933 to Rs 954 per equity share, with a face value of Rs 5 per share. It's an IPO with a book-built issue. The offering has a grey market premium of Rs 400, implying that the shares are trading on the unlisted market at a premium of Rs 1,333 to Rs 1,354 per share. The minimum lot size for the Krsnaa Diagnostics IPO is 15 shares, with an associated application fee of Rs 14,310. On the top end of the lot, there are 195 shares with a Rs 186,030 application amount. Retail investors can apply for up to 13 lots at the higher end of the lot size for this issue.
Strength
For starters, it is one of India's most well-known diagnostic chains. The company's financial picture. It also provides a broad and diversified variety of diagnostic services because of its complicated network and presence in 13 locations, it has a large market footprint. In addition, the firm has a solid financial track record.
Objectives
Strategies:
Investment allocation:
When it comes to investment allocations, the retail part is only 10%. The SME IPO has a 75 percent reservation for qualified institutional buyers (QIBs) and a 15% reservation for non-institutional investors (NIIs).
Financial Highlights:
The firm was able to sustain a high level of performance. For the fiscal year ending March 31, 2020, the film earned Rs 271.38 crore in total revenue. This was increased from Rs 214.31 crore the previous year. The company's net losses increased to Rs 111.95 crore in FY20, up from Rs 58.05 crore the previous year. Krsnaa Diagnostics, on the other hand, had a significant decrease in spending and an increase in income.For the nine-month period ending December 31, 2020, the net profit and sales were Rs 195.93 crore and Rs 562.7 crore, respectively. This trend was caused by increased income from operations as a result of the pandemic's outbreak.
Recommendation: The business model is scalable, and in the present climate, where post-COVID health consciousness is at an all-time high, this industry is only going to grow in the next years. This represents a big market for the firm as well as significant potential.The firm intends to use the proceeds of the offering to pay down debt, which is usually valued accretive for service-oriented enterprises. ) The IPO price for Krsnaa Diagnostics discounts the most recent year's profits at roughly 21X, which is lower than the comparable group. We recommend you to subscribe(Aggressive Investors).
Glenmark Life Sciences is a wholly-owned subsidiary of Glenmark Pharmaceuticals Ltd. Incorporated in 2011 and is situated in Maharashtra, India. Glenmark Life Sciences IPO is in news these days because it is open for a subscription (Initial Public Offering) from 27th July 2021 till 30th July 2021.
The company is responsible for manufacturing and supplying high-quality APIs for gastrointestinal disorders, cardiovascular disease, pain management, and diabetes, anti-infectives, central nervous system disease and other therapeutic areas. The revenues it has generated in India in the last two years have grown at 71.62%. While revenues generated internationally since 2019 have grown at 25.61%.The major competitors of the Glenmark Life sciences IPO within the API market contain Laurus Labs, Divis Labs, Shilpa Medicare, Aarti Drugs, and Solara Active Pharma Sciences.
Fresh equity shares up to a total of Rs 1,060 crore will be issued. Under this public issue, the issue particularly includes an offer for the sale of 63 lakh equity shares by Glenmark Pharma. In this way, a total of Rs 1,513.6 crore will be available at the upper level of the price range under the SME IPO. The company had planned to issue fresh equity for Rs. 1160 cr but then the issue size got reduced to Rs. 1060 cr. Even to the astonishment of investors, the shareholder quota was totally skipped. It then was termed as investor unfriendly move as it sent wrong signals in the primary market. The equity trading of the corporate is going to be listed on BSE and NSE. Glenmark shares are available at a premium of ₹300 within the grey market, that's from the difficulty price of ₹695 to ₹720 about 40 per cent higher. GMP is very volatile because the Glenmark shares were available within the grey market at a premium of ₹200 to ₹205. So, the share market trading is predicted to reply strongly to the public issue.
The reservation was kept in the following manner half of the total issue is for qualified institutional buyers, 35 per cent is kept for retail investors, and the remaining 15 per cent is for non-institutional investors. Glenmark Life Sciences has reduced its IPO size as compared to earlier. Also, if you want to invest in it, then at least 14 to 15 thousand will have to be spent. The company has made a lot of 20 shares. A person can buy at most 13 lots. The company will pay its expenses and borrow from the money earned from this IPO.
Grey market observers are attracted by Glenmark shares. API business is expected to reach USD 306 bn by the year 2027 due to the coronavirus. The second reason being we are becoming independent as of now in China so we don’t plan to export drugs from China. The issue when compared to its peers is reasonably priced in terms of price to its earnings ratio. Hence, we recommend subscribing to the IPO.
Incorporated in 1995, Macrotech Developers [Formerly known as Lodha Developers] is the largest real estate developer in India. The company is primarily engaged in affordable residential real estate developments and in 2019, it entered into the development of logistics and industrial parks and also developed commercial real estate.
The company’s large ongoing portfolio of affordable and mid-income housing projects include Palava (Navi Mumbai, Dombivali Region), Upper Thane (Thane outskirts), Amara (Thane), Lodha Sterling (Thane), LodhaLuxuria (Thane), Crown Thane (Thane), Bel Air (Jogeshwari), LodhaBelmondo (Pune), Lodha Splendora (Thane) and Casa Maxima (Mira Road).
The affordable and mid-income housing developments accounted for Sales of Rs.3055 crores during the financial year 2020 and constituted 57.77% of our total residential sales.
IPO DateApr 7, 2021to Apr 9, 2021Issue TypeBook Built Issue IPOIssue Size51,440,328 Eq Shares of ₹10(aggregating up to ₹2,500.00 Cr)Fresh Issue5,14,40,329Eq SharesOffer for SaleNILFace ValueRs.10 per equity shareIPO PriceRs.483 to Rs.486 equity shareMin Order Quantity30Listing AtBSE, NSE
FY2018FY2019FY20209M FY2021Revenue13,726.611,979.912,561.03,160.5Expenses11,017.09,490.011,560.23,218.8Comprehensive income1,767.91,641.6732.5-264Margin (%)12.913.75.8-8.2
Lodha Group has been involved in the real estate business since 1995. Further, the Company is led by Abhishek M. Lodha, Managing Director and Chief Executive Officer. The company has a leadership team of experienced professionals with relevant functional expertise across different industries who are instrumental in implementing the business strategies.
The company commenced operations in Mumbai, developing affordable housing projects in the suburbs of Mumbai, and later diversified into other segments and regions in the MMR and Pune. In addition to the ongoing and planned projects, as of 31 December 2020, the company has land reserves of approximately 3,803 acres for future development in the MMR, with the potential to develop approximately 322 million square feet of Developable Area.
The company has clocked sales of approximately INR 6,569 crores with gross collections of approximately INR 8,189 crores for FY 19-20. The company reported a total income of ₹3,160.49 crores for the period ended December compared with ₹9,357.35 crores a year ago. The net loss stood at ₹264.30 crores compared to a profit of ₹503.08 crores.
Their residential and commercial spaces are aimed at every segment, right from super luxury to budget, thereby enabling every aspiring consumer to fulfill their dream. The company’s brands include “Lodha”, “CASA by Lodha” and “Crown – Lodha Quality Homes” for our affordable and mid-income housing projects. The “Lodha” and “Lodha Luxury” brands for premium and luxury housing projects, and the “iThink”, “LodhaExcelus” and “LodhaSupremus” brands for office spaces.
The company’s in-house sales team is supported by a distribution network of multiple channels across India as well as key non-resident Indian (“NRI”) markets, such as the Gulf Cooperation Council, United Kingdom, Singapore, and the United States.
The real estate market in India has grown at a CAGR of approximately 10 percent from $ 50 billion in 2008 to $120 billion in 2017 and is expected to further grow at a CAGR of 17.7% to reach $1 trillion by 2030. The real estate market contributed approximately 6 percent to India’s GDP in 2017 and is likely to contribute approximately 13% to India’s GDP by 2025.
Earnings Per Share (EPS): INR18.46Price/Earnings (PE ratio): 26Return of Net Worth (RONW): 17.8%Net Asset Value (NAV): INR103.86 per share
Macrotech Developers has a strong reputation in the Mumbai region with delivery of close to 10,000 homes annually. Has the ability to price at a premium which results in higher margins.
The listed peers are Brigade Enterprises Ltd, DLF Limited, Godrej Properties Ltd, Oberoi Realty Ltd, Prestige Estates Projects Ltd, Sobha Ltd, and Sunteck Realty Limited. Among these, only Sobah Ltd has the lowest P/E ratio of 15.12, while Godrej Properties Ltd has the highest P/E ratio of 135.51
Incorporated in 2006, Barbeque Nation Restaurants is one of the leading casual dining restaurant chains (in terms of outlet count as of September 30, 2020) according to the Technopak Report, and International Barbeque Nation Restaurants. The company also owns and operates Toscano Restaurants and UBQ by Barbeque Nation Restaurant.
The first Barbeque Nation Restaurant was launched in 2006 by SHL, one of our Promoters. The company launched our first Barbeque Nation Restaurant in 2008 and subsequently acquired five Barbeque Nation Restaurants owned by SHL in 2012.
Barbeque Nation have steadily grown our owned and operated Barbeque Nation Restaurant network from a single restaurant in 2008 to 147 Barbeque Nation Restaurants (including opened, temporarily closed and under construction outlets) across 77 cities in India and six International Barbeque Nation Restaurants in three countries outside India as of December 31, 2020.
The company owns 61.35% of the equity share capital on a fully diluted basis of one of our Subsidiaries, Red Apple, which owns and operates nine restaurants under the brand name, “Toscano”, a casual dining Italian restaurant chain and operates one restaurant each under the brand names “La Terrace” and “Collage” respectively.
The first Toscano Restaurant commenced operations in June 2008 and, as of December 31, 2020, we operated eleven Italian Restaurants, nine of which are under the brand name “Toscano”, in three cities in India. In November 2018, Barbeque Nation launched UBQ by Barbeque Nation Restaurant to provide a la carte Indian cuisine in the value segment. At present, UBQ by Barbeque Nation Restaurant predominantly caters to the delivery segment.
Barbeque Nation Restaurants, compared to other fixed-price dining options, offer competitive attractions such as a wide range of vegetarian and non-vegetarian appetizers and main courses, a popular dessert menu, a pleasant and casual dining environment, and prompt service thereby making it a popular destination for celebrations. The company also periodically run popular food festivals at our Barbeque Nation Restaurants offering our guests a range of Indian, international and fusion cuisines.
IPO Details:
IPO Date March 24th, 2021 to March 26th, 2021Issue TypeBook Built Issue IPO Issue SizeRs 452.87 Crores Fresh IssueRs 275 crore Offer for Sale98,22,947 equity shares Face ValueRs.5 per equity share IPO PriceRs.499 to Rs.500 equity share Min Order Quantity30Listing At BSE, NSE
IPO Objective:
Financial Performance:
FY2018 FY2018 FY2019 FY2020 9M FY2021 Revenue 590.4742.5850.8236.6Expenses450.1593.2682.8224.0Comprehensive income-6.5-40.7-35.6-98.6Margin (%)-1.1-5.5-4.2-41.7
Tentative Time Table:
IPO Opens on 24 March 2021
IPO Closes on 26 March 2021
Basis of Allotment Date: Apr 5, 2021
Initiation of Refunds: Apr 5, 2021
The credit of Shares to Demat Account: Apr 6, 2021
IPO Listing Date: Apr 7, 2021
Outlook :
The Barbeque Nation IPO is coming at a time when the COVID-19 pandemic has made many restaurants unviable. Food orders can meaningfully increase and the share of trusted brands is bound to go up vs random mom-pop restaurants that may not be able to assure hygiene.
The restaurant chain has seen compounded annual growth of 14.29%. It has grown from ₹68.60 Crore in FY17 to 89.60 Crore in FY19.
The company is backed by private equity investor CX Partners and ace investor Rakesh Jhunjhunwala’s investment firm Alchemy Capital. Alchemy Capital bought about a 3.5% stake in Barbeque-Nation Hospitality for ₹90 Crore last year.
It also acquired a 61.35% stake in Red Apple Kitchen, which owns Toscano, a casual dining Italian restaurant chain that has ten outlets operating across Bengaluru and Chennai.
Earlier in December last year, Jubilant Foodworks, which operates fast-food chains Domino's Pizza and Dunkin' Donuts in India, had acquired a 10.76 percent equity stake into Barbeque-Nation Hospitality Ltd (BNHL) Rs 92 crore.
Barbeque Nation also launched UBQ through its existing kitchen infrastructure, in November 2018 to provide a la carte Indian cuisine in the value segment, which is also being availed by delivery across 71 cities in India.
The restaurant & hospitality sector, despite being amongst the worst hit due to COVID 19 has tremendous potential in a growing economy like India.
With the rise of nuclear families, changing habits, and increasing urban population with higher disposable income coupled with strong growth of food-related e-commerce platforms, a strong branded player like Barbeque Nation stands to gain in the future. IPO could attract a lot of interest among both retail & institutional investors leading to a strong listing.
Incorporated in 2008, Suryoday Small Finance Bank Ltd is a leading Small Finance Bank (SFB) in India. The company started offering SFB services in 2017. They serve customers in the unbanked and underbanked segments. Before SBF, the company operated as an NBFC.
Suryoday Small Finance Bank Ltd commenced microfinance operations in 2009 and has since expanded operations across 13 states and union territories, as of December 31, 2020.
As of December 31, 2020, our customer base was 1.44 million and our employee base comprised 4,770 employees and operated 554 Banking Outlets including 153 Unbanked Rural Centres (“URCs”).
The company has set up 661 customer service points (“CSPs”) as additional service or touch points during April 1, 2020, and January 31, 2021, and intend to continue to expand our reach through the CSP model.
The delivery platform also includes partnering with business correspondents (“BCs”) for sourcing both asset and liability business and have expanded our network and presence through their reach to promote financial inclusion.
The company has arrangements with various payment banks in India and has been able to leverage our relationship with such payment banks to grow our deposit base.
The distribution network comprises ATMs, phone banking, mobile banking, tablet banking, unified payment interface (UPI), CSPs, and internet banking services. The company’s operations are predominantly in urban and semi-urban locations due to greater income earning capabilities and employment opportunities in such areas compared with rural regions.
Gross Loan Portfolio has grown at a CAGR of 46.98% from ₹ 17,177.84 million as of March 31, 2018, to ₹ 37,108.42 million as of March 31, 2020, and was ₹ 39,082.29 million as of December 31, 2020.
Deposits have grown at a CAGR of 94.95% from ₹ 7,495.22 million as of March 31, 2018, to ₹ 28,487.15 million as of March 31, 2020, and was ₹ 33,438.40 million as of December 31, 2020. As of December 31, 2020, retail deposits comprised 72.40% of our total deposits.
IPO Details:
IPO Date March 17th, 2021 to March 19th, 2021Issue Type Book Built Issue IPO Issue Size19,093,070 Eq Shares of ₹10(aggregating up to ₹582.34 Cr)Fresh Issue8,150,000 Eq Shares of ₹10(aggregating up to ₹248.58 Cr)Offer for Sale10,943,070 Eq Shares of ₹10(aggregating up to ₹333.76 Cr)Face Value Rs.10 per equity share IPO Price Rs. 303 to Rs. 305 equity share Min Order Quantity49Listing At BSE, NSE
IPO Objective:
The Bank proposes to utilize the Net Proceeds from the Fresh Issue towards:
Financial Performance:
ParticularsFor the year/period ended (₹ in Crores)31-Dec-2031-Mar-2031-Mar-1931-Mar-18Total Assets63,50.453,64.537,61.221,55.9Total Revenue6,89.8,54.15,97.03,24.9Profit After Tax54.81,11.190.311.4
Tentative Time Table:
Outlook :
Suryoday SFB is among the leading SFBs in India in terms of net interest margins, return on assets, yields, and deposit growth and had the lowest cost-to-income ratio among SFBs in India in Fiscal 2020. Total assets show consistent growth.
Over the years, it has recorded a CAGR of 47.98%. This can be because of the fact that the gross loan portfolio of Suryoday has shown a CAGR of 46.98% over the past two years, from FY 2018 to FY 2020. The deposits, too, have shown a CAGR of 94.95%. From Rs. 749.52 crores in FY 2018, it has grown to Rs. 2,848.71 crores in FY 2020.
In fact, as of FY 2020, 54.44% of the total deposits came from the retail category. The net profit earned shows an overall increase, but in FY 2017 and FY 2018, the figures show a dip. The CAGR, in this case, is 47.05%. Over the past six years, the company has recorded a positive net cash flow from operating activities in only two years.
The rest of the year is characterized by the increasing negative value of net operating cash flow. This market is dominated by the top three small finance banks – AU, Equitas, and Ujjivan. Together, these three banks accounted for about 63% of the total assets under management in 2020.
Overall, there is significant growth expected in the near future. The deposit base of small finance banks increased by about 48% in FY 2020. A CAGR of 22% is predicted in the loan portfolio in this market. This growth is based on the fact that the Indian economy is focusing on the growth of the banking sector and financial inclusion. There is a significant market opportunity in the rural parts of the country.
Suryoday SFB is showing decent growth in both revenue and profit front whereas there is an improvement on the margin front as well. Over the period FY18-20, Gross Loan Portfolio, and Deposits have grown at a CAGR of 46.98% and 94.95% respectively.
If we talk about valuation then at the upper band the PE ratio works out to be around 23 while the PB ratio is around 2.3 which is in line with peers. This business has good growth potential amid a strong Indian economic growth outlook but it has its own systematic risks. Though valuation is not very lucrative by looking at strong growth in financials.
Incorporated in 1999, Nazara Technologies Ltd is a leading mobile game company in India. The company offers a range of diversified gaming products across the Interactive gaming, eSports, and gamified early learning ecosystem across emerging markets i.e. India, Africa, South East Asia, Middle East, and Latin America.
It is one of the leading live eSports streaming and on-demand eSports media content providers in India. Carrom Clash and World Cricket Championships in mobile games, Kiddopia in gamified early learning, Nodwin and Sportskeeda in eSports, and Halaplay and Qunami are some of its offerings.
The business operates in different segments; Subscription-based business, Freemium Business, eSports, Gamified early learning, and Real money gaming. Subscription business focuses on mass mobile internet users comprising mainly first-time mobile gamers.
The company derives maximum revenue from subscription fees charged from customers under the gamified early learning and eSports business segments.
The company’s Product Portfolio comprises of three businesses:
IPO Details:
IPO Date March 17th, 2021 to March 19th, 2021 Issue Type Book Built Issue IPO Issue Size5,543,052 Eq Shares of Rs.4(aggregating up to Rs. 582.29 Cr)Fresh Issue NIL Offer for Sale5,543,052 Eq Shares of Rs. 4(aggregating up to Rs. 582.29 Cr)Face ValueRs.4 per equity share IPO PriceRs.1100 to Rs.1101 equity share Min Order Quantity13Listing At BSE, NSE
IPO Objective:
The company purposes to utilize funds towards the following objectives:
Financial Performance:
ParticularsFY18FY19FY201HFY21Total Assets470.76514.58776.83798.66Revenue172.00169.70247.50200.50Ebitda48.7016.30-5.506.10Ebitda margin (%)28.309.60-2.203.00Net profit2.7017.50-2.10-5.00Net profit margin: (%)1.5710.31-0.85-2.49
Tentative Time Table:
IPO Opens on :17 March 2021
IPO Closes on: 19 March 2021
Basis of Allotment Date: Mar 24, 2021
Initiation of Refunds: 24Mar, 2021
Credit of Shares to Demat Account: 25Mar, 2021
IPO Listing Date: 30 Mar 26, 2021
The digital gaming market worldwide has seen a paradigm shift in adoption and distribution as well as user behavior. The global games market generated revenue of $104.8 billion in 2016, up by 12.6% from 2015. Revenues will have potentially increased to $116.0 billion in 2017 and will continue to increase to $151.7 billion in 2021. Growth is expected to be driven from South-East Asia, the Middle East and India.
Eyeing the growth of the online gaming industry, the interaction with Smartphones and laptops of the youth and cheaper data prices, it is expected that the gaming industry is expected to reach new highs. Digital adverting is also expected to increase, which will help the tech gaming companies to do much better.
Gaming as a whole is a very big industry worldwide where Nazara Technologies is a leading India-based diversified gaming and sports media platform which has a strong brand name too.
Over the period of FY18-20, the revenues of the company have grown at a CAGR of 12.90% while net profit was on declining mode this was due to the new acquisitions made by the company. In FY19-20, Nazara Tech revenue has grown by 45% and it touched the revenue of 247 Crore. The margins of the company are expected to zoom from the current levels.
Nazara Technologies may even trade at a higher multiple as it is a pure-play in the digital world and which has the potential of more than 30% CAGR growth. Its expansion into freemium and e-sports business will surely help the company to do better in the near future.
Easy Trip Planners is the company behind the online travel booking portal EaseMyTrip.com. The company offers a comprehensive range of travel-related products and services for end-to-end travel solutions, including airline tickets, hotels and holiday packages, rail tickets, bus tickets and taxis as well as ancillary value-added services such as travel insurance, visa processing and tickets for activities and attractions.
As of 30 November 2019, it provided customers with access to more than 400 international and domestic airlines, more than 1,096,400 hotels in India and in international jurisdictions, almost all the railway stations in India as well as bus tickets to and taxi rentals for major cities in India.
The company is among the leading online travel agencies in India in terms of gross booking revenues and had a market share of approximately 3.8%, and 4.5% to 5% in terms of gross booking revenues and gross booking revenues for the airline ticketing segment in India during FY2019.
The company focuses on the B2B2C (business to business to customer), B2C (business to customer), and B2E (business to enterprise) distribution channels.
The company’s products and services are organized primarily in the following segments:
Airline tickets, which consist of the sale of airline tickets as well as airline tickets sold as part of the holiday packages; Hotels and holiday packages, which consist of standalone sales of hotel rooms as well as travel packages (which may include hotel rooms, cruises, travel insurance, and visa processing); and Other services, which consist of rail tickets, bus tickets, taxi rentals and ancillary value-added services such as travel insurance, visa processing and tickets for activities and attractions.
IPO Date March 8th, 2021 to March 10th, 2021 Issue Type Book Built Issue IPO Issue Size Eq Shares of ₹2(aggregating up to ₹510.00 Cr) Fresh Issue NIL Offer for Sale Eq Shares of ₹2(aggregating up to ₹510.00 Cr)Face ValueRs.2 per equity share IPO Price Rs.186 to Rs.187per equity share Min Order Quantity 80 Listing At BSE, NSE
Easy Trip Planners’ financial performance (in INR crore)FY2018FY2019FY20209M FY2021Revenue113.6151.1179.781.6Expenses103109.9132.239.7Net income02434.631.1Net margin (%)015.919.338.1
Easy Trip Planners is the second largest online travel agency in India in terms of volume and 3rd largest in terms of revenues. Easy Trip Planners has the lowest sales and marketing expense as a percentage of its gross booking revenues in 2020 as per a report by CRISIL.
The Indian travel industry is expected to grow at a CAGR of 2% from Fiscal 2020 to Fiscal 2023. As people have slowly started resuming air travel after the COVID-19, the air ticketing segment is expected to grow at a CAGR of 1.5% by Fiscal 2023.
Increasing penetration of the internet and smartphones is expected to continue aiding the growth in this segment, the impact of the pandemic might take some time to wear off.
Easy Trip Planners have stable revenue growth over the last 3 years and it is generating consistent and improved margins. Over FY17-20, Company saw a 31.7% CAGR rise in the gross booking revenue which is led by a 52.4% CAGR growth in the gross booking volume. PAT from operations increased by 23.6% CAGR over FY17-20.
At an EPS of 3.19 and at an upper price band of 187, the PE ratio would be 58.62, however as per the RHP company does not have any peers thus it is ascertained whether the issue price is underpriced or overpriced. The company’s net profit margin in FY2020 is 19.3%.
The company is further claiming to be using sophisticated technology which will help in improving the margins growing further. Thus, the fundamentals of the company would also be improving.
Nureca is a B2C company engaged in the business of home healthcare and wellness products, which offers quality, durability, functionality, usability and innovative designs. The company enables its customers with tools to help them monitor chronic ailments and other diseases, to improve their lifestyle.
Nureca is a digital-first company wherein it sells its products through online channel partners such as e-commerce players, distributors and retailer. It also sells products through its own website drtrust.in. Nureca’s product portfolio is currently classified under the five categories including -
1. Chronic Device Products – products such as blood pressure monitors, pulse oximeters, thermometers, nebulizers, self-monitoring glucose devices, humidifier and steamers.
2. Orthopaedic Products – which includes rehabilitation products such as wheelchairs, walkers, lumbar and tailbone supports and physiotherapy electric massagers.
3. Mother and Child Products – which includes products such as breast pumps, bottle sterilizers, bottle warmers, car seats and baby carry cots.
4. Nutrition Supplements – which includes products such as fish oil, multivitamins, probiotics, biotin, apple cider and vinegar.
5. Lifestyle Products – which includes products such as smart scales, aroma diffusers, and fitness tracker.
The IPO proceeds will be utilized towards the following purposes:
IPO Details
Subscription Dates 15 – 17 February 2021 Price Band ₹396 to ₹400 Per Share Fresh issue INR100 crore Offer For Sale Nil Total IPO size INR100 crore Minimum bid (lot size) Coming soon Face Value INR10 per share Retail Allocation 10% Listing On NSE, BSE
Tentative Timetable
Feb 15, 2021 - IPO Open Date
Feb 17, 2021 - IPO Close Date
Feb 23, 2021 -Basis of Allotment Date
Feb 24, 2021 -Initiation of Refunds
Feb 25, 2021 - Credit of Shares to Demat Account
Feb 26, 2021 - IPO Listing Date
Financial Performance -
Nureca’s financial performance (in INR crore)FY2018FY2019FY2020H1 FY2021Revenue20.162.099.5123.0Expenses15.753.190.974.3Net income3.16.26.436.2Net margin (%)15.410.06.429.4
Risks-
Nureca is a digital-first company wherein the company sells the products through online channels partners such as e-commerce players, distributors and retailer. Further, the company also sell its products through the company’s own website drtrust.in. Currently, 95% of revenues for the Company comes through digital channels (e-Commerce).
As part of this tie-up, Nureca will sell products from its Dr Trust and Dr Physio brands at 30 Croma stores across the country. There are numerous other market players, like Dr. Morepen, Health Sense, Agaro, Lifelong, Omron, Philips, Johnson and Johnson, Roche, Bayer. The company doesn’t have any listed player.
Eyeing the brand recognization and their focus on healthcare products we may see some attraction in the IPO. The innovation of products along with the enhancement of technology would be interesting to see in the near future. One should continuously look at the margins of the company in the next few quarters. Looking at short business history, inconsistent margins, and high debt on books. We assign an "AVOID" rating for the NURECA LIMITED IPO.
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