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Heranba Industries Ltd IPO

2021-02-23T23:59:00.006+05:30

Heranba Industries Ltd IPO

23rd Feb, 2021

About the Company:

The company was incorporated back in 1992, Heranba Industries Ltd is a Gujarat based crop protection chemical manufacturer.

It domestically produces many chemical compounds used to control pest in farms, homes, restaurants, hospitals and schools. It also makes herbicides, fungicides and public health products for pest control.

Heranba has a fully integrated and modern manufacturing facility with an in-house research and development unit. The company has three independent manufacturing units.

In India it as 8600 dealers across 16 states and 1 union territory whereas it exports to more than 60 nations through international distribution partners.

About the IPO

The IPO of Heranba Industries Ltd aims at raising INR 625.24 crores out of which the fresh issue is INR 60 crores and the remaining will be raised through an offer for sale of shares. The IPO will open for subscription on 23rd February (Tuesday) and close on 25th February (Thursday). The price band has been fixed at ₹626 to ₹627 with the minimum lot size of 23 shares. This means one has to pay at least ₹14,421 to bid for the issue.

Emkay Global Financial Services and Batlivala & Karani Securities India are the leading book managers for the issue while Bigshare Services is the registrar of the issue.

Heranba Industries Ltd IPO Details

IPO Date	23rd February, 2021 to 25th February, 2021
Issue Type	Book Built Issue IPO
Issue Size	Eq Shares of ₹10 (aggregating up to ₹625.24 Cr)
Fresh Issue	Eq shares of ₹10 (aggregating upto ₹60 Cr)
Offer For Sale	90,15,000 Eq shares of ₹10
Face Value	₹10 per equity share
IPO Price	₹626 to ₹627 per equity share
Market Lot	23 Shares
Min Order Quantity	23 Shares
Listing at	BSE, NSE

Heranba Industries Ltd IPO Tentative Timetable

Bid/Offer Opens On	23rd Feb, 2021
Bid/Offer Closes On	25th Feb, 2021
Finalisation of Basis of Allotment	2nd Mar, 2021
Initiation of Refunds	3rd Mar, 2021
Credit of Shares to Demat Acct	4th Mar, 2021
IPO Shares Listing Date	5th Mar, 2021

Lot Size And Price

Application	Lots	Shares	Amount
Minimum	1	23	₹14,421
Maximum	13	299	₹1,87,473

Promoter Holding

Pre Issue Share Holding	98.1%
Post Issue Share Holding	74.1%

Objective of the issue:

The main objectives of the issue are:

To meet the business working capital requirements.
To meet the general corporate expenses.
To meet public issue expenses.

Important Finances

Summary Of Financial Information

Particulars	For the year (₹ in million)
	31-Mar-20	31-Mar-19	31-Mar-18
Total Assets	6,247.63	5,604.43	4,504.65
Total Revenue	9,679.06	10,118.38	7,504.10
Profit After Tax	977.50	754.20	468.76

Company's Strength:

The company has dominated the pyrethroids market with a share of 19.5% (2019) of the total market size.
The consumption of pyrethroids is expected to grow by around 20% CAGR between 2020 and 2025.
Given the increasing Indian agrochemical market along with Heranba's expanding geographical footprint, the company has a good scope for expansion.
The company has zero long term debt in its books as of September 2020 and has only a working capital debt of about INR 38 crore.

Risks:

The company faces a high risk due to shoot up in raw material prices which forms a whopping 70% of its expenses.
It also faces steep competition from peers like Rallis India, Bharat Rasayan and Sumitomo Chemicals.

Our Outlook:

The company is financially sound and has a robust business model, hence we would recommend subscribing in this issue for listing gains.

Investors can also invest in this company with a long term perspective.

What is EBITDA?

2021-02-07T19:29:00.002+05:30

EBITDA

What is EBITDA?

EBITDA stands for Earnings before Interest, Tax, Depreciation and Amortization. It is an indication of a company’s raw earnings from its operations and therefore, it is also termed as Operating Profit.

Why is EBITDA important as the financial metric?

The financial performance of a company in any sector is justified by its ability to make profits from its operations. A financially healthy company has always positive cash flows resulting from its operations, and it is from these profits that it decides to give back value to shareholders as dividends and/ or retain some of the profits as cash and reserves for the future growth of the company.

What is EBITDA composed of?

EBITDA represents profits before a company makes interest payments on loans, tax claims to the government and realizes the depreciation and amortization value.

So, it is not the final profit figure earned by the company in a financial year.

To seek the true profits earned by a company, we usually analyse the Profit After Tax (PAT)/ Profit for the Year metric as mentioned in the Income statement.

The elements giving rise to EBITDA is as follows:

What can you learn from EBITDA?

It is always desirable that a company reaps its usual profits from its operations because the latter is what builds up a company’s purpose and gives rise to sustainable profits. A company with higher EBITDA will typically suggest to investors that it is earning largely from its operations, and therefore it will have higher and sustainable returns to pay back to investors.

However, investors should keep in mind that EBITDA is not the truly realized profits of a financial year and may vary drastically from it depending upon the company’s debt burdens, tax obligations and asset depreciation expenses.

We hope this article could give answers to all the questions that you had in mind about EBITDA. But still, if you have any doubt, feel free to ask your question in the comments section below or you can also mail us, we will try to give answers to questions as soon as possible.

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Expectations from Union Budget 2021

2021-01-31T17:28:00.002+05:30

Expectations From Union Budget 2021.

31st Jan 2021

The union budget 2021 is just around the corner and everyone is excited about this budget as the Finance Minister Nirmala Sitharaman has promised 'a budget like never before'.

So here is what you can expect from the budget:

1. Increase in basic income tax exemption limit and investment limit under section 80C

The basic income tax exemption limit needs to be increased from ₹2.5 lakh to ₹5 lakh. The immediate expectation is to reduce the burden on taxpayers to increase liquidity and boost the economy.

The deduction limit for specified tax saving investment which is currently ₹1.5 lakh under section 80C of the Income Tax Act, 1961, should be at least increased to ₹2.5 lakh.

2. Increasing section 80D limit for individuals

Section 80D of the Income Tax Act, 1961, allows a deduction for medical expenditure incurred on senior citizens. This deduction can be claimed by senior citizen himself/herself or his/her if the children if the latter are incurring medical expenses for their senior parents.

With the Covid-19 pandemic, the medical insurance coverage was found to be inadequate for families, the deduction for mediclaim coverage for non-senior citizen should be increased from ₹25,000 to ₹50,000 and for senior citizens from ₹50,000 to ₹75,000.

3. Long-term Capital gains on equity shares and equity mutual funds

Long-term capital gains tax which has been heavily criticized should see a change in this budget.

Long-term capital gains from the equity shares and equity mutual funds are tax exempted up to ₹1 lakh. The gain above ₹1 lakh is subjected to tax at 10% (plus applicable surcharge and cess) without the benefit of indexation.

The government should look at increasing the exemption limit from ₹1 lakh to ₹2 lakh for retail investors or the government may also look at reducing the tax rate to 5% to give a boost to the capital markets.

4. Health care sector to get the attention it requires

With the Covid-19 pandemic, the need for a proper health care system especially in tier II, III, IV cities and in rural areas has been realised.

Currently, the benefits of the deduction for CAPEX are extended only to hospitals having a minimum capacity of 100 beds. No benefits are provided to encourage the setup of smaller hospitals in rural areas.

So the benefits under section 35AD of the Income Tax Act should be extended to hospitals having:

Minimum of 50 beds in tier II, III, IV cities and
Minimum of 25 beds in rural areas.

5. Building a strong primary and preventive health care system

Health care sector should be accorded 'National Priority' status to bring the required attention and investment. Primary and preventive care is vital for a strong healthcare system.

Tax exemption on preventive health check-up should be raised from the current ₹5000 per person (₹7000 for senior citizens) to ₹20,000 under section 80D of the Income Tax Act.

6. Relief for Real Estate sector

The real estate sector of India has been facing liquidity issues for a prolonged period of time now and the sector was also hit hard during the Covid lockdown. The Finance Ministry during the upcoming budget must come up with proactive measures and incentives to help the industry gain a sustainable momentum for recovery.

Also, an aspect that needs to be looked into is the accountability of authorities, they must be analysed by RERA since delays in granting permissions impact the delivery timelines of projects, which further brings liquidity crunch for the developer and negative sentiment among the buyers.

7. Incentives to provide a big push to Renewable Energy

The government needs to focus on creating a more favourable green energy ecosystem backed by a robust manufacturing ecosystem, to make it cost-competitive.

Today, more than half of the components used in solar projects in India come from China.

India must start building massive capacity increases in the components supplier ecosystem which can happen only if there is a strong financial support system as the renewable energy projects are capital intensive.

We need greater incentivisation of local manufacturing, these can be in the form of direct incentives to manufacturers such as interest subvention on term loan working capital loan, lower power cost and export incentives from 2% to 8% under Remission of Duties or taxes on the export product.

We also need to strengthen our power distribution infrastructure. DISCOM's ( Power Distribution Companies) within the Indian power sector continues to be the weakest link that needs to be addressed more seriously.

8. Incentives to boost Farmer's Income

We expect concentrated efforts towards incentives or subsidies or creating state-owned infrastructure to provide cheaper inputs to farmers such as seeds, fertilizers, pesticides etc.

This will help contain the cost and increase profitability on produce. The budget will likely continue to expand allocation towards fertilizer subsidies or also provide a direct benefit scheme for the sector such as financial help schemes for farmers which will enable them to access more credit at cheaper rates.

These are our expectations from the budget.

We hope the Union Budget 2021 will help the Indian economy to bounce back to the pre-Covid levels.

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What is an IPO?

2021-01-10T19:50:00.001+05:30

Initial Public Offering (IPO)

What is an IPO?

Initial Public Offering (IPO) is the process of offering shares of a private company to the public for the very first time, if there is a second round of funding then it is called as Further Public Offering or Follow-up Public Offering (FPO).

Basically, after an IPO a private company with a limited number of shareholders like founders, angel investors, friends become a public company with lakhs of shareholders.

Why does a company issue an IPO?

There are many reasons behind a company issuing an IPO, here are some reasons:

1. The most common and primary objective of an IPO, that is to raise capital for business expansion.

2. To raise money for their working capital, working capital means the money required for day to day working of a company.

3. If a company is listed on a stock exchange, it increases the credibility of a company as there is the transparency of financial data because they have to report it to SEBI periodically.

4. Another use of IPO money is to invest in similar other businesses. Using IPO money for diversification is a common strategy for many companies.

5. Many companies that plan to go public have high debt loads. Therefore many companies look to reduce their debt levels by using the IPO money.

What is an Underwriting Firm?

Underwriting Firm typically is an investment bank, when the underwriting firm takes up the job they put the money to fund the IPO, essentially buying the shares before they are listed anywhere.

The firm works with the company to determine the offering price, number of shares, type of security and the optimum time to bring the company to the public market.

The underwriter's goal is to sell the shares to the public for more than it paid to the company.

Drawbacks of Going Public

1. The issuance of public equity is one of the most expensive forms of funding. The preparation of launching an IPO is an expensive affair, there are underwriters commissions, legal and accounting fees.

2. The company has to reveal all the sensitive information. It has to disclose its strategies, finances, contacts and key projects to the public.

3. Control of the management as well as the management positions can be taken away from the existing management if an investor or group of investors obtain majority control. Which means you could get fired from the company that you founded (scary, isn't it?).

4. There is an increased risk of legal or regulatory issues.

The Dutch East India Company was the world's first company that held its IPO in August 1602.

We hope this article could give answers to all the questions that you had in mind about IPO. But still, if you have any doubt, feel free to ask your question in the comments section below or you can also mail us, we will try to give answers to questions as soon as possible.

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How Important is Diversifying your Portfolio?

2020-12-21T01:54:00.184+05:30

How Important is Diversifying your Portfolio?

What Is Diversification?

Diversification is the act of putting your investments across different asset classes like equities, bonds in a portfolio. This is essentially done to mitigate the risks that come with investing in only one kind of security.

An example to help you understand better

In a simpler language, suppose you put all of your capital into one small-cap stock ABC Ltd. If ABC Ltd has a strong bullish rally, then the profits you will reap will be definitely exponential to the initial investment amount. However, if the stock price plummets and never recovers, then you will have to suffer extensive losses and it could go up to losing the entire capital you had invested earlier in case of bankruptcy.

Now, let’s consider another situation wherein you want to divide your capital and based on certain weights, invest proportionately into 6 stocks wherein three are large-cap, two are mid-cap and one is a small-cap stock. Apart from stocks, you also want to invest in a different asset class so you buy a corporate bond.

In this portfolio, even if the small-cap stock plummets in price, you will be able to reduce the extent of losses by the returns of the other stocks (considering that they perform positively). Even if the entire stock market is hit and all your stocks underperform, you will be safeguarded by the investment you have made in the bond market and thus, able to neutralise the performance of your portfolio.

What are the ways to diversify a portfolio?

1. Understand your risk tolerance and decide the capital allocation you want to make to each security

By this time, I believe it is clear that we should have various investments in a portfolio. Now, we come on to an important question as to how to determine what the capital allocation we should make to each asset class?
It requires a broader discussion, but to make it simpler and specific, it depends upon the risk tolerance of an investor. Risk tolerance is the amount of loss that an investor can take or withstand in their portfolio. If your portfolio consists of 100% stocks, then you would be considered as having a higher risk appetite because stocks are not mandated to provide definite returns.
Conversely, a lower risk-taker would give a larger capital allocation to bond instruments (Gives fixed returns in the form of interest), ETFs or even commodities like gold or silver.

2. Low correlation among asset classes

Now, another important aspect of diversification is to invest in assets or securities with low correlation to each other.

Correlation measures the strength of the relationship between assets and determines the degree to which two assets move together. If two stocks in your portfolio are highly correlated with each other, then their movements in prices will also be identical; if one increases in price, the other will too and if one falls, the other one will fall as well.

The correlation of different securities in your portfolio should be ideally low so that the entire portfolio is not severely impacted by a loss in individual security.

Example of how correlation works:

Gold and Silver which are commodities (Asset class) are used as safe havens or alternatives for investment during financial turmoil or uncertainty, especially when it is reflected in the equity market.

If two pairs of assets offer the same return at the same risk, choosing the pair that is less correlated decreases the overall risk of the portfolio.

Diversifying options in the stock market

In the stock market as well, large-cap, mid-cap and small-cap stocks have varying degrees of risk associated with themselves. It is always better to have a larger proportion of your portfolio built with large caps because these are established companies with a lot of cash and hence, will provide you definite returns and low-risk exposure. Growing mid-cap companies can provide you with better returns but with more exposure to risk. Small-cap stocks are the riskiest among all the types because, in phases of financial turmoil, they do not usually have the liquidity or cash support to mitigate the losses and survive. An investor should have the lowest capital allocation to small-cap stocks to prevent any major losses.

Diversification and how it works is rather a really large area of discussion. This article was made to shed some light on the important details; however, we will keep on publishing to help you understand diversification in its entirety.

In case you have any doubt about this topic, you can ask your questions in the comment box, we will try to answer your question as soon as possible.

So Keep tuned. Stay Home. Stay Safe.

Things to know about Antony Waste Handling Cell Ltd IPO

2020-12-20T18:10:00.004+05:30

Things to know about Antony Waste Handling Cell Ltd IPO

20th Dec 2020

About the Company:

The company was incorporated back in 2001, starting with a simple business of collection and transportation of waste, it has come a long way in the field of solid waste management since then.

The company is a part of the 'Antony' group. The company is one of the top five players in the Indian Municipal Solid Waste (MSW) management industry with an established track record of 17 years.

The company is currently undertaking projects for the Municipal Corporations of Greater Mumbai, Navi Mumbai, Thane, North Delhi, Ulhasnagar, Mangalore. In the past, it has also undertaken projects for Municipal Corporations of Delhi, Gurgaon Amritsar, Kalyan Dombivali and Jaipur.

About the IPO

The IPO of Antony Waste Handling Cell Ltd aims at raising INR 300 crores out of which the fresh issue is of INR 85 crores comprising 26,98,412 shares and the remaining INR 215 crores will be raised through offer for sale of 68,24,933 shares. The IPO will open for subscription on 21st December (Monday) and close on 23rd December (Wednesday). The price band has been fixed at ₹313 to ₹315 with the minimum lot size of 47 shares. This means one has to pay at least ₹14,805 to bid for the issue.

Equirus Capital and IIFL Securities are the leading book managers for the issue.

Antony Waste Handling Cell Ltd IPO Details

IPO Date	21st December, 2020 to 23rd December, 2020
Issue Type	Book Built Issue IPO
Issue Size	95,23,345 Eq Shares of ₹5 (aggregating up to ₹300 Cr)
Fresh Issue	26,98,412 Eq shares of ₹5 (aggregating upto ₹85 Cr)
Offer For Sale	68,24,933 Eq shares of ₹5 (aggregating upto ₹215 Cr)
Face Value	₹5 per equity share
IPO Price	₹313 to ₹315 per equity share
Market Lot	47 Shares
Min Order Quantity	47 Shares
Listing at	BSE, NSE

Antony Waste Handling Cell Ltd IPO Tentative Timetable

Bid/Offer Opens On	21st Dec, 2020
Bid/Offer Closes On	23rd Dec, 2020
Finalisation of Basis of Allotment	29th Dec, 2020
Initiation of Refunds	30th Dec, 2020
Credit of Shares to Demat Acct	31st Dec, 2020
IPO Shares Listing Date	1st Jan, 2021

Lot Size And Price

Application	Lots	Shares	Amount
Minimum	1	47	₹14,805
Maximum	13	611	₹1,92,465

Promoter Holding

Pre Issue Share Holding	51.10%
Post Issue Share Holding	46.02%

Objective of the issue:

The company will utilise its fresh issue proceeds towards part-financing for the waste-to-energy project at Pimpri Chinchwad through investment in its subsidiaries AG Enviro and ALESPL.

It also plans at reducing consolidated borrowings of the company and its subsidiaries by infusing debt in its subsidiary.

Important Finances

Summary Of Financial Information

Particulars	For the year (₹ in million)
	31-Mar-20	31-Mar-19	31-Mar-18
Total Assets	6,721.03	5,126.38	4,280.70
Total Revenue	4,646.11	2,985.18	2,907.78
Profit After Tax	620.76	346.82	398.84

Company's Strength:

It is one of the leading names in MSW management with end-to-end capabilities
The efficiency of the company's processes is boosted by having access to technology-backed vehicles and equipment.
It has 17 years of experience in executing solid waste projects and has a track record as a comprehensive service provider equipped with resources to handle large scale projects.
The company should be able to replicate the top-line performance for FY21.
The company expects to double its market share in the industry in the next five years.

Risks:

High dependence on municipal authorities for a substantial proportion of business and revenue. Any decline in the budgetary allocation towards MSW projects will have an adverse impact on the company's business.
Dependence on a limited number of customers and limited geographies.
Solid waste management industry tends to require companies to have high working capital. If the company fails to meet the working capital requirement, then it can affect its business.
The company doesn't have any experience in WTE (Waste-To-Energy) projects, hence it cannot assure investors better returns or any returns at all from the two WTE projects in its portfolio.

Our Outlook:

We don't expect listing gains similar to Burger King's IPO but investors can invest with a long term perspective.

Reverse Merger of IDFC and IDFC Frist Bank?

2020-12-18T22:47:00.000+05:30

Reverse Merger of IDFC and IDFC Frist Bank?

18th Dec 2020

In August this year, there was news about the reverse merger of IDFC and IDFC First Bank but later the IDFC First Bank clarified that these were pure speculation and there has been no discussion regarding the reverse merger with IDFC Ltd at the Board of the Bank or at any level.

But now the probability of this reverse merger is very high and the company is waiting for RBI's guidelines on NBFC's according to Zee Business sources.

Almost a year may be required for this reverse merger to take place.

What if the reverse merger takes place?

For every 1 share of IDFC Ltd shareholders will get 1.4 shares of IDFC First Bank.
This reverse merger will unlock the value of IDFC Ltd as the company has a 40% stake in IDFC First Bank.
IDFC Ltd will also be benefitted from IDFC Mutual Fund which has AUM (Asset Under Management) of almost one lakh crore.

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What is ROCE?

2020-12-13T20:48:00.010+05:30

What is ROCE and How to Analyse it?

What is Return on Capital Employed (ROCE)?

Return on Capital Employed or ROCE, in a mathematical perspective, is the ratio of operating profit (EBITDA) to the capital employed by the firm. In the simplest terms, it indicates how efficiently a company is utilizing its capital to generate profits or returns for shareholders.

Unlike Return on Equity (ROE) which only factors in shareholder’s equity, ROCE considers both debt and shareholder’s equity as sources of capital for the firm, so it gives investors a more accurate picture of the firm's profitability in relation to the entire capital burden.

What are the components of ROCE?

How should we use ROCE?

ROCE can be used to gauge the performance of peer companies in the same sector or industry. It especially becomes important in asset-heavy industries like telecom and utilities that are known to have high debt burdens. This is because ROCE sees the performance of companies considering debt and equity, so it neutralizes the performance of companies with heavier debts.

It is also important to go through the historical ROCE of a company. A stable and increasing ROCE over the years indicates that the company has strong financial health and is utilizing its capital efficiently to generate value. (NOTE: Do not see the ROCE of a single year only; always compare it with preceding years to make sure it’s not a one-time peak or value only.)

A real-time example to understand ROCE

Let us take an example of Cipla Ltd and Aurobindo to understand this concept:

Note: While reading this article on mobile phone, some images may get cropped in portrait mode, so please read in landscape mode. Sorry for the inconvenience.

The EBIT of Aurobindo and Cipla stands at INR 1135 and INR 3000 respectively in FY2020. As you can see, the ROCE trend of Cipla Ltd has been increasing steadily without any volatile movements in contrast to Aurobindo whose ROCE has dipped in the last two years. It’s important to understand the reason behind declines in ROCE values because it indicates that the profitability of a company is going down.

Note: Instead of the absolute values in any given financial year, the trend of ROCE is much more important.

What happens if the ROCE is negative?

If a company has a negative ROCE, it necessarily means that the company has undergone a loss in the financial year. However, if the loss is caused by the company’s investment in acquiring new assets, then it could be a good thing because it is a sign of the company expanding operations or investing in growth.

We hope this article could give answers to all the questions that you had in mind about ROCE. But still, if you have any doubt, feel free to ask your question in the comments section below or you can also mail us, we will try to give answers to questions as soon as possible.

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What is CAGR?

2020-12-06T12:07:00.008+05:30

What is CAGR?

Compounded Annual Growth Rate is the rate at which your investment grows over a specified amount of time. It is essentially done to smooth out year-to-year growth rates (which could either be rising or falling) to present a clearer and bigger picture of how much the investment has grown or declined over a certain period.

An Example of how CAGR works

Let’s say we want to invest in a company-branded as ABC Ltd whose profits in the beginning of 2017 were INR 80,000 (Beginning Value).

In the span of another four years, the company faced many ups and downs reflected in its capability of profit-making, with years 2018 and 2019 showing a profit of INR 1,20,000 and INR 90,000 respectively. Finally at the end of 2020, it recorded a profit of INR 2,00,000 (Closing Value).

Now, while calculating CAGR, we do not take into consideration the price fluctuations caused on a year-to-year basis, instead we focus only on the beginning balance, closing balance and the time that elapsed between these metrics.

Note: It is assumed that profits generated each year are reinvested in growing the business while calculating CAGR.

Why do we need CAGR?

CAGR in itself represents the steady growth rate of an investment. It could be used to estimate the future or historical growth rates in industries, sectors, any security like stock or even the portfolio that is held by an investor.

CAGR can be useful in terms of comparing various investments and determining which one has undergone the most growth. This comparison can be drawn to peer companies in the same sector or business as well.

What should be kept in mind while looking at the CAGR?

CAGR will help you to understand which investment has been historically deemed to give the most returns.

However, CAGR provides a picture of returns increasing steadily over the time duration. However, in reality, securities, especially stocks have fluctuations or volatility in the way they provide returns to investors. Some periods may have rising returns while others might have declining ones. Therefore, CAGR does not consider the aspect of volatility in its calculation.

It is also important to understand that the calculation of CAGR is dependent on time and therefore, can be manipulated to show positive results. If a company deliberately chooses a time frame which has only good returns, the CAGR would be inflated and would not provide you with a complete picture,

Therefore, it’s important as an investor to go through the financials of the company as well and see the top-line and bottom-line figures. A stock investor should also go through risk-adjusted return metrics that take into account the risk inherent in a stock (CAGR ignores risk associated with security).

Some of the sectors in India with a good CAGR projection and market scope:

FY stands for “Financial Year”.

We hope this article could give answers to all the questions that you had in mind about CAGR. But still, if you have any doubt, feel free to ask your question in the comments section below or you can also mail us, we will try to give answers to questions as soon as possible.

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Is Burger Kings IPO as Mouth Watering as Their Burger?

2020-12-02T10:14:00.002+05:30

Is Burger Kings IPO as Mouth Watering as Their Burgers?

About the Company:

Founded in 1954, Burger King is the second-largest fast-food hamburger chain in the world with a global network of 18,675 restaurants in more than 100 countries as of September 2020.

Technopak report says Burger King India is one of the fastest-growing Quick Service Restaurant (QSR) brands among international QSR brands in India during the first five years of operations.

As of November 25, the company had 259 its owned Burger King restaurants and 9 sub-franchised Burger King restaurants.

About the IPO

The IPO of Burger King aims at raising INR 810 crores out of which the fresh issue is of INR 450 crores comprising 7,50,00,000 shares and the remaining INR 360 crores will be raised through offer for sale of 6,00,00,000 shares. The IPO will open for subscription on 2nd December (Wednesday) and close on 4th December (Friday). The price band has been fixed at ₹59 to ₹60 with the minimum lot size of 250 shares. This means one has to pay at least ₹15,000 to bid for the issue.

Kotak Mahindra Capital Company and CLSA India, JM Financial and Edelweiss Financial Services are the leading book managers for the issue.

Burger King IPO Details

IPO Date	2nd December, 2020 to 4th December, 2020
Issue Type	Book Built Issue IPO
Issue Size	13,50,00,000 Eq Shares of ₹10 (aggregating up to ₹810 Cr)
Fresh Issue	7,50,00,000 Eq shares of ₹10 (aggregating upto ₹450 Cr)
Offer For Sale	6,00,00,000 Eq shares of ₹10 (aggregating upto ₹360 Cr)
Face Value	₹10 per equity share
IPO Price	₹59 to ₹60 per equity share
Market Lot	250 Shares
Min Order Quantity	250 Shares
Listing at	BSE, NSE

Burger King IPO Tentative Timetable

Bid/Offer Opens On	2nd Dec, 2020
Bid/Offer Closes On	4th Dec, 2020
Finalisation of Basis of Allotment	9th Dec, 2020
Initiation of Refunds	10th Dec, 2020
Credit of Shares to Demat Acct	11th Dec, 2020
IPO Shares Listing Date	14th Dec, 2020

Lot Size And Price

Application	Lots	Shares	Amount
Minimum	1	250	₹15,000
Maximum	13	3250	₹1,95,000

Promoter Holding

Pre Issue Share Holding	99.39%
Post Issue Share Holding	60.08%

Objective of the issue:

The company will utilise the net fresh issue proceeds to finance roll out of owned Burger King Restaurants by way of repayment or prepayment of outstanding borrowings to set up new owned restaurants and general corporate purposes.

But the company won't get any proceeds from the offer for sale as the money will go to the promoters selling shares.

Important Finances

Summary Of Financial Information

Particulars	For the year (₹ in million)
	31-Mar-20	31-Mar-19	31-Mar-18
Total Assets	11,977.07	9,204.72	7,303.55
Total Revenue	8,468.29	6,441.20	3,887.37
Profit After Tax	765.70	382.79	822.32

Comparison With Peers:

Company	Revenue (Rs. Crore)	OPM (%)	Price to Sales	EV/EBITDA
Jubilant Foodworks	3885.8	22.6	8.5	38.7
Westlife Development	1547.8	14.1	4.4	31.3
Burger King	841.2	12.4	2.7	29.5

Company's Strength:

Strong customer value proposition.
Vertically managed and scalable supply chain.
Well defined restaurant roll out and development process.
Exclusive national master franchise rights in India.
Experienced and professional management team.

Our Outlook:

The sentiments are positive and we recommend subscribing for listing gains and you can also keep it in your portfolio with long term perspective.

Bond Market Vs Stock Market

2020-11-25T21:12:00.002+05:30

Bond Market Vs Stock Market

In this article, you will learn about the basics of Bond Market and Stock Market with more emphasis on Bond Market and later on, we'll list out some key differences between the two.

What is Bond Market?

Bond Market which is often referred to as the debt market is a place where investors buy debt securities that are brought to the market by government or publicly traded corporations.

Now you must be wondering what is a debt security, so first let's learn about debt securities.

Debt Security

Debt Security is a financial asset that is created when one party lends money to another. Debt Securities entitles their owners to a fixed stream of income from interest payments hence it is also known as fixed-income securities.

Examples of debt securities include government bonds, corporate bonds, municipal bonds, certificate of deposit etc.

I hope this is pretty much clear to you if you have any doubt regarding debt securities, leave your question in the comment section or mail us, now let's get back to Bond Markets.

Primary and Secondary Bond Markets

The bond market is also divided into two segments, primary and secondary market like the stock market.

In the primary market, the transaction occurs directly between the bond issuers and bond buyers. This means only the new issues which have not been offered to the public previously are traded in this market.

In the secondary market, investors can purchase the bonds from a broker. Here the securities that have been already sold in the primary market are bought and sold at later dates.

Types of Bond Markets:

1. Corporate Bonds:

A corporate bond is a debt issued by a company to raise capital. An investor who buys a corporate bond is actually lending money to the company in return for a series of interest payments.

Companies issue corporate bonds to raise money for financing current operations, expansion etc.

2. Government Bonds:

A government bond is a debt issued by a government and sold to investors to support government spending and obligations. Government bonds are usually considered low-risk investments as the government backs them.

Because of their relatively low risk, government bonds typically pay low-interest rates.

3. Municipal Bonds:

Municipal Bonds are locally issued by states, cities, special-purpose districts, publicly owned airports and seaports and other government bond entities who seek to raise cash to fund various projects.

4. Emerging Market Bonds:

These debt instruments are issued by countries with a developing economy. These bonds provide much greater growth opportunities, but also greater risk, than domestic or developed bond markets.

What is Stock Market?

A stock market is a place where investors go to trade equity securities, such as common stocks and derivatives including options and futures. Stocks are traded on stock exchanges.

Stock exchanges are secondary markets, where existing owners of shares can transact with potential buyers.

Stock Market and Stock Exchange are used interchangeably but a stock exchange is a subset of the stock market. The primary function of the stock market is to bring buyers and sellers together into a fair, regulated, and controlled environment where they can execute their trades.

Like the bond market, the stock market also has two components. The primary market is reserved for first-run equities i.e. initial public offerings (IPO) are issued in this market. Equities are then opened in the secondary market where the trading activity takes place.

Some Key Differences

Bonds come with a fixed date of maturity. Shares on the other hand don't have any such feature, traders can buy and sell shares as desired. However, investors may also sell bonds before its maturity.

Bonds may be issued by the government and government institutions, by municipal bodies and by financial companies. Stocks are issued by Corporates.

Stocks are comparatively riskier as compared to bonds.

Bonds also come with a fixed rate of interest that is mentioned at the time of bond issuance so earnings are more regular with bonds. Stocks may earn dividend but there is no guarantee. While bondholders earn from interest stock traders earn from buying shares at low prices and selling at higher prices.

We hope this article could give answers to all the questions that you had in mind about the bond markets and how it is different from the stock market. But still, if you have any doubt, feel free to ask your question in the comments section below or you can also mail us, we will try to give answers to questions as soon as possible.

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Understanding Finance Ministers Atmanirbhar Bharat 3.0

2020-11-13T19:08:00.003+05:30

Understanding Finance Ministers Atmanirbhar Bharat 3.0

12th Nov 2020

Due to the ongoing pandemic and lockdown, the economy has taken a serious toll and so to support the economy the central govt. has announced a stimulus package worth Rs 2,65,080 Crore as a part of 12 announcements under "Atmanirbhar Bharat 3.0".

Let's try to understand these 12 announcements:

1. Atmanirbhar Bharat Rozgar Yojana

The Atmanirbhar Bharat Rozgar Yojana will be effective from October 1, 2020.

The scheme will cover any new employee joining employment in EPFO-registered establishment on monthly wages less than Rs 15,000. It would also cover EPF members drawing monthly wages of less than Rs 15,000, who made an exit from employment during COVID-19 pandemic from March 1, 2020, and is employed on or after October 1, 2020.

The scheme will be operational till June 30, 2021.

2. ECLGS (Emergency Credit Line Guarantee Scheme) extended

ECLGS extended till 31st March 2021.

MSMEs, business enterprises, individual loans for business purposes, MUDRA borrowers will be eligible for this scheme. Rs 2.05 lakh crore already sanctioned to 61 lakh borrowers under this scheme.

ECLGS 2.0 will be used to support stressed sectors. It is to be utilized for 100% guaranteed collateral-free additional credit at the capped interest rate.

3. PM Awaas Yojana - Urban (PMAY-Urban)

The Finance Minister told that the Government has outlaid an additional Rs 18,000 Crore (over and above the budget allocation of Rs 8,000 crore). As per the government, this decision will help 12 lakh houses to be launched and 18 lakh houses to be completed and create 78 lakh additional jobs.

4. Support for Construction and Infrastructure sector

Performance security on contracts will be now reduced from 5-10% to 3%. Also, the Earnest Money Deposit (EMD) will not be required for tenders.

5. Income Tax Relief for Developers and Home-Buyers

For primary residential real estate sales of up to Rs 2 crores, the differential between circle rate and agreement value increased to 20% from 10%. The offer will be applicable till 30 June 2021.

Circle rate is a minimum rate per square feet for land or property fixed by the government.

6. Rs 65,000 crore provided for Subsidised Fertilizers

Government has given Rs 65,000 crore support for agriculture in form of subsidised fertilisers, 14 crore farmers will be benefited from this.

7. PM Garib Kalyan Rozgar Yojana

An additional outlay of Rs 10,000 crore under PM Garib Kalyan Roazgar Yojana will be provided in the current financial year.

It can be used for schemes including MGNREGA and PMGSY.

8. NIIF Debt Platform

Rs 1.1 lakh crore platform for Infra Debt Finance; ₹ 6,000 crore equity infusion in NIIF Debt Platform

Rs 6,000 equity infusion by the government, rest to be raised from the private sector.

9. To help Exports

The assistance of ₹ 3,000 crores to be given to EXIM Bank for lines of credit

10. Rs 900 Crore for Covid Vaccine

Rs 900 crore will be provided for R&D of COVID-19 vaccine under COVID Suraksha Mission for Research and Development of Indian COVID Vaccine To Department Of Biotechnology.

11. Credit Guarantee Scheme to Include 26 Stressed Sectors

Finance Minister said 26 stressed sectors have been identified and to support these sectors Credit Guarantee Scheme has been launched. For these sectors, ECLGS 2.0 scheme will be launched.

This scheme will be operational till 31st March 2021.

12. Production Linked Incentives

The Union Cabinet Wednesday approved Production Linked Incentive (PLI) scheme worth up to Rs 1.46 lakh crore for 10 key sectors in a bid to boost India’s manufacturing capabilities and enhancing exports. The scheme will make Indian manufacturers globally competitive, attract investment and enhance exports.

Gland Pharma IPO, Subscribe or Not?

2020-11-07T20:22:00.002+05:30

Gland Pharma IPO, Subscribe or Not?

About the Company:

Gland Pharma was established in Hyderabad, India in 1978 and is one of the fastest-growing generic injectable companies. The company has a strong presence in sterile injectables including oncology and ophthalmic and focus on high-value generics, such as complex molecules, First-to-File products and 505 (b)(2) filings for new drug applications. They have a portfolio of injectables across various therapeutic areas and delivery systems and they offer an array of injectables developed independently by them.

The company follows a business to business (B2B) model to sell its products in over 60 countries including the United States, Europe, Canada, Australia, India and the rest of the world.

About the IPO

The IPO of Gland Pharma aims at raising INR 6,480 crores out of which the fresh issue is of INR 1,250 crores comprising 4,31,96,968 shares and the remaining INR 5229.55 crores will be raised through offer for sale of 3,48,63,635 shares. The IPO will open for subscription on 9th November (Monday) and close on 11th November (Wednesday). The price band has been fixed at ₹1490 to ₹1500 with the minimum lot size of 10 shares. This means one has to pay at least ₹15,000 to bid for the issue.

Citi Group Global Markets India, Haitong Securities India, Kotak Mahindra Capital Company and Nomura Financial Advisory and Securities (India) are the leading book managers for the issue.

Gland Pharma IPO Details

IPO Date	9th November, 2020 to 11th November, 2020
Issue Type	Book Built Issue IPO
Issue Size	4,31,96,968 Eq Shares of ₹1 (aggregating up to ₹6479.55 Cr)
Fresh Issue	83,33,333 Eq shares of ₹1 (aggregating upto ₹1250 Cr)
Offer For Sale	3,48,63,635 Eq shares of ₹1 (aggregating upto ₹237.6 Cr)
Face Value	₹1 per equity share
IPO Price	₹1490 to ₹1500 per equity share
Market Lot	10 Shares
Min Order Quantity	10 Shares
Listing at	BSE, NSE

Gland Pharma IPO Tentative Timetable

Bid/Offer Opens On	9th Nov, 2020
Bid/Offer Closes On	11th Nov, 2020
Finalisation of Basis of Allotment	17th Nov, 2020
Initiation of Refunds	18th Nov, 2020
Credit of Shares to Demat Acct	19th Nov, 2020
IPO Shares Listing Date	20th Nov, 2020

Lot Size And Price

Application	Lots	Shares	Amount
Minimum	1	10	₹15,000
Maximum	13	130	₹1,95,000

Promoter Holding

Pre Issue Share Holding	74%
Post Issue Share Holding

Objective of the issue:

The company will utilise the net fresh issue proceeds to finance the increasing working capital requirements of the company, funding capital expenditure requirements and general corporate purposes.

However, the company will not receive any proceeds from the offer for sale. The offer for sale proceeds will be received by the selling shareholders.

Important Finances

Summary Of Financial Information

Particulars	For the year (₹ in million)
	31-Mar-20	31-Mar-19	31-Mar-18
Total Assets	40,860.39	35,235.49	29,294.68
Total Revenue	27,724.08	21,297.67	16,716.82
EBITDA	10,874.53	7,918.96	5,838.94
Profit After Tax	7,728.58	4,519.07	3,211.15

Company's Strength:

It has extensive and vertically integrated injectable manufacturing capabilities with a consistent regulatory compliance track record.
It has diversified B2B led model across markets.
It has an experienced management and qualified team is promoted by Shanghai Fosun Pharma.
It has a track record of growth and profitability from a diversified revenue base with healthy cash flows.
It has an extensive portfolio of complex products supported by internal R&D and regulatory capabilities.

Risk Factors:

Gland Pharma is susceptible to product liability claims and associated risks of litigation that could expose it to material liabilities, loss in revenues and increased expenses and thus have a material adverse effect on its business.
The injectables pharmaceutical market is highly competitive both globally and domestically.
Gland Pharma has significant working capital requirements, if it experiences insufficient cash flows to fund its working capital requirements or if it is unable to provide collateral to obtain credit in sufficient quantities, there may be an adverse effect on its business, cash flows and results of operations.

Our Outlook:

The sentiments are not very positive as the company is backed by Chinese promoters. And also due to the poor performance of Mazgaon Dock, the participation in Gland Pharma issue becomes uncertain.

The company is financially sound and has a robust business structure with good and experienced management but still, we would suggest staying away from this IPO for listing gains.

In case of bad listing, investors can buy the stock for long term.

Why Are Some Shares Expensive Than Others?

2020-11-01T19:56:00.004+05:30

Why Are Some Shares Expensive Than Others?

Before getting on with this topic, if you want to know about "How is a Share Price determined?", just click here.

We have already written an article on that topic.

Now let's talk about today's topic, Why are some Shares Expensive than Others?

There are multiple possibilities as to why some stocks are expensive than others, we will try to cover most of the possibilities here in this article. We will list out the possibilities first and then discuss them later in the article.

1. Market Capitalization

2. Stock Split

3. Reverse Split

4. Demand & Supply

5. Fundamentals of the Company

1. Market Capitalization:

We have already discussed this topic in detail in the article "How is a Share Price determined?". So here we'll be discussing it in short.

Market Capitalization is the product of "Number of outstanding Shares" and "Share Price"

So if we re-arrange this formula, we get,

Share Price = Market Capitalization / Number of Outstanding Shares

This shows Share Price is inversely proportionate to Number of outstanding Shares. The more are the number of shares of a particular company in the market the lesser will be its price.

2. Stock Split:

A stock split is a decision taken by the company's board of directors to increase the number of outstanding shares. Thus reducing the share price.

For example in a 2 for 1, if a shareholder has 1000 shares of a company at ₹800 each, after the split the shareholder will have 2000 shares at ₹400 each. So if a company had 10 crore outstanding shares in the market before the split, it will have 20 crore outstanding shares after the 2 for 1 split.

Most of the companies opt for the stock split to keep the stock price in a reasonable range and also to increase the liquidity in the stock.

3. Reverse Split:

A reverse split as the name suggest is the opposite of stock split. In a reverse stock split, the company decreases the number of outstanding shares. Thus increasing the share price.

For example in a reverse 1 for 5 split, if a shareholder has 1000 shares of a company at ₹10 each, after the split the shareholder will have 200 at ₹50 each. So if a company had 10 crore outstanding shares in the market before the split, it will have 2 crore outstanding shares after the reverse 1 for 5 split.

Companies usually opt for the reverse stock split to reduce the volatility in the stock or for gaining more respectability in the market.

4. Demand & Supply:

This is probably the easiest concept in this article. It is based on the standard demand & supply theory.

If the demand is more than the supply or in terms of share market if the Buyers are more than the Sellers the price will be higher.

If the supply is more than the demand, that means if the Sellers are more than the Buyers the price will go down.

5. Fundamentals of the Company:

This is the most important point of all and the shares must be evaluated on this basis.

Fundamental analysis focuses on stock value rather than the stock price, a fundamentally strong stock may trade at a lower price than it's fundamentally weak peers because of the reasons mentioned above. And the goal of an investor should be identifying stocks that are currently undervalued by the market.

Now we hope you have understood "Why are some Shares Expensive than Others".

So we hope now you won't judge a stock/share just by its price. Expensive is not always good.

If you have any problems understanding the content of the article or if you have any doubt, feel free to ask your question in the comments section below or you can also mail us, we will try to give an answer to question as soon as possible.

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How Is Share Price Determined?

2020-10-26T20:20:00.004+05:30

How Is Share Price Determined?

A company's market capitalization is first established in an event called Initial Public Offering (IPO). During this process, the company usually pays to an investment bank to use different valuation techniques to derive the company's value. They also determine how many shares will be offered to the public and at what price.

What is Market Capitalization?

Market Capitalization which is also referred to as Market Cap is nothing but the product of the company's share price and the number of shares.

Market Capitalization = Share price x Number of outstanding shares

How is the IPO Price Determined?

The shares of an IPO are first issued in the primary market.

The most common methods used are as follows:

1. Absolute Valuation Method

2. Relative Valuation Method

1. Absolute Valuation Method:

In this method, the value of the asset is derived only based on the characteristics of that asset. There is no consideration regarding the value of other comparable assets that are trading in the market place. These methods are basically known as Discounted Cash Flow methods (DCF methods).

2. Relative Valuation Method:

Relative Valuation Method is different from DCF method as it doesn't value a firm or an asset based on its intrinsic value. The approach followed in this method is to find a benchmark valuation. It determines the share price by comparing the financial health of the company to similar companies in the sector. There are many variations to this method, we can use price to earnings ratio, price to book value ratio or any number of ratios.

What happens after a company goes public?

This is also known as the Secondary Market.

Once the company gets listed, its share price is determined by simple Supply and Demand Theory. That means if there is a high demand and less supply then the share price will increase (Buyers are more than Sellers) and if the supply is more and demand is less then the share price will decrease (Sellers are more than Buyers).

Factors Affecting Share Price

Besides the supply and demand, the price of a share can be influenced by other factors as well. These include:

1. Financial Health

2. Company, Industry and Economy News

1. Financial Health

Stocks that perform well usually have solid earnings and strong financial statements. Investors use these financial statements and share price to see whether the company is financially healthy or not.

2. Company, Industry and Economy News

Any good news about a company or the sector in which the company works will have a positive impact on the share price, be it earnings report, new product launch or Govt. policies like imposing anti-dumping duties. Similarly, bad news will have a negative impact on the share price.

We hope now you know the answer to "How is the share price determined?" if you have any doubt regarding this feel free to ask them in the comment section, we will definitely try to solve your doubts.

Soon we'll be uploading article on the topic "Why are some shares expensive than others?", follow us and subscribe so that you will be notified when we upload our next article.

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Things To Know Before Applying for Equitas Small Finance Bank's IPO

2020-10-18T23:02:00.002+05:30

Things To Know Before Applying for Equitas Small Finance Bank's IPO

About the Company
Equitas Small Finance Bank Ltd was incorporated in 1993 and currently, it is the largest small finance bank in terms of the number of outlets and second-largest considering asset under management and total deposits. It being an SFB (Small Finance Bank) it serves un-served and the under-served sectors. The various loans provided by the bank include small business loans, microfinance, vehicle finance, MSE finance, corporate loans. The highest percentage of loans given are to small businesses.

Type of Loan	% of Gross Total Advances	Avg Ticket Size (₹ in thousand)	Eligible Customers
Small Business Loans	41.6%	50-2000	Self Employed Individuals (garages,farmers,dairy business etc.) includes Housing Finance
Micro Finance	23.2%	5-35	Group Loans for women - 7 to 30 members
Vehicle Finance	24.3%	Not Specified	First time formal financial channel borrowers
MSE Finance	4.6%	1000-50,000	Enterprises engaged in manufacturing and trading businesses
Corporate Loans	5.0%	1,50,000-5,00,000	Term loans to NBFC's
Others	1.4%	Not Specified	Loans against Gold, unsecured business loans etc.

About the IPO

The IPO of Equitas Small Finance Bank Ltd aims at raising INR 518 crores out of which the fresh issue is of ₹280 crores comprising 8,50,00,000 shares and for the remaining ₹237.6 crores the holding company will sell its 7,20,00,000 shares. The IPO will open for subscription on 20th October (Tuesday) and close on 22nd October (Thursday). The price band has been fixed at ₹32 to ₹33 with the minimum lot size of 450 shares. This means one has to pay at least ₹14,850 to bid for the issue.

JM Financial Ltd, Edelweiss Financial Services Ltd and IIFL Securities Ltd are the book running lead managers to the offer.

Equitas Small Finance Bank IPO Details

IPO Date	20th Oct, 2020 to 22nd Oct, 2020
Issue Type	Book Built Issue IPO
Issue Size	15,70,00,000 Eq Shares of ₹10 (aggregating up to ₹517.60 Cr)
Fresh Issue	8,50,00,000 Eq shares of ₹10 (aggregating upto ₹280 Cr)
Offer For Sale	7,20,00,000 Eq shares of ₹10 (aggregating upto ₹237.6 Cr)
Face Value	₹10 per equity share
IPO Price	₹32 to ₹33 per equity share
Market Lot	450 Shares
Min Order Quantity	450 Shares
Listing at	BSE, NSE

Equitas Small Finance Bank IPO Tentative Timetable

Bid/Offer Opens On	20th Oct, 2020
Bid/Offer Closes On	22nd Oct, 2020
Finalisation of Basis of Allotment	27th Oct, 2020
Initiation of Refunds	28th Oct, 2020
Credit of Shares to Demat Acct	29th Oct, 2020
IPO Shares Listing Date	2nd Nov, 2020

Lot Size And Price

Application	Lots	Shares	Amount
Minimum	1	450	₹14,850
Maximum	13	5850	₹1,93,050

Promoter Holding

Pre Issue Share Holding	100%
Post Issue Share Holding	82-83%

Objective of the issue:

The objective of fresh issue is to increase the bank's tier-I capital base to meet their future capital requirements such as growth and expansion. Qualified Institutional Buyers (QIB) will get to bid for 50% of the offer while retail investors will bid for 35%.

Financials:

Summary Of Financial Information

Particulars	For the year (₹ in million)
	31-Mar-20	31-Mar-19	31-Mar-18
Total Assets	1,93,145.47	1,57,626.51	1,33,011.5
Total Revenue	29,277.95	23,948.32	17,729.03
Profit After Tax	2,436.35	2,105.66	318.31

Comparison With Peers:

Company	Total Income (₹ in million for fiscal 2020)	P/E based on Dil. EPS	EPS Diluted	RoNW (%)	NAV	P/B	CMP
Equitas Small Finance Bank	29,277.95	13.81	2.39	8.92%	25.92	0.8	-
AU Small Finance Bank	49,919.76	32.91	22.32	15.45%	143.60	5.1	733
Ujjivan Small Finance	30,258.14	15.09	2.18	11.71%	17.29	1.8	31
Credit Access Grameen	17,054.80	32.54	23	12.43%	186.43	3.7	665.9

Risk Factors:

The bank’s deposits depend on a limited number of customers and a loss of such customers could materially and adversely affect its deposit portfolio, funding sources, financial condition, results of operations and cash flows.

The value of the bank’s collateral may decrease or it may experience delays in enforcing collateral when borrowers default on their obligations, which may result in failure to recover the expected value of collateral security exposing it to potential losses.

The bank’s microfinance loan portfolio and unsecured business loan portfolio are not supported by any collateral that could help ensure repayment of the loan, and in the event of non-payment by a borrower of one of these loans, it may be unable to collect the unpaid balance.

Our Outlook:

We would suggest to stay away from this IPO as we are not expecting any fancy listing gains from the IPO.

RBI Monetary Policy

2020-10-09T11:39:00.000+05:30

Key Takeaways:

Monetary Policy Committee has voted unanimously to keep the repo rate unchanged at 4% and reverse repo rate at 3.35%.

Stance also kept accommodative for as long as needed to support the growth.

Inflation will ease closer to target Q4 FY21 and GDP growth may also turn positive by Q4.

India is likely to see speedy recovery with variations across sectors. Agriculture, consumer goods, power and pharma sectors to see quicker recovery.

FY21 GDP may be seen contracting by 9.5%.

Special OMO (Open Market Operations) worth ₹20,000 crores will be conducted next week.

RBI to conduct on tap TLTRO (Targeted Long Term Repo Operations) of ₹1 lakh crore at floating rates linked to repo rates. TLTRO funds to be deployed in corporate bonds and debentures.

Ways & Means Advance (WMA) limit for the centre has been kept at ₹1.25 lakh crores.

RBI Monetary Policy Committee proposes round the clock availability of RTGS from December 2020.

JP Morgan Chase to Pay $920 million for Spoofing

2020-09-30T16:30:00.001+05:30

JP Morgan Chase to Pay $920 million for Spoofing

30th September, 2020

JP Morgan Chase, the largest bank in the United States of America agreed to pay a record $920 million to settle charges against them for illegal trade practices in futures of gold and silver.

They were involved in deceptive conduct for a period of almost eight years, that included hundreds of thousands of spoof trades. In a statement JP Morgan said that the violations took place between 2008 and 2016 and emphasized that those traders no longer work for the company.

What is spoofing?

Spoofing is an illegal form of market manipulation in which a trader places a large order to buy or sell a financial asset like stocks, bonds or futures contract with the purpose of creating the impression of interest in the asset, thus driving up its price. However, the trader has no intention of actually executing the trade and instead places thousands of much smaller trades that profit on the higher price and then cancels the larger order.

This is the biggest monetary penalty ever imposed by the Commodity Futures Trading Commission (CFTC), which includes $436.4 million fine, $311,7 million in restitution and about $172 million in disgorgement, according to a CFTC statement. This penalty far exceeds previous spoofing related fines and is the toughest sanction imposed in the Justice Department's years long crackdown on spoofing.

This is not the first time JP Morgan has faced charges, in 2015 the bank pleaded guilty admitting to rig the U.S dollar and euros. The Justice Department said it took the previous plea into account in determining penalties.

Gulf Oil Strengthens Its Relationship with S-Oil Corporation

2020-09-29T18:08:00.005+05:30

Gulf Oil Strengthens Its Relationship with S-Oil Corporation

29th September, 2020

Gulf Oil Lubricants India and South Korea's S-Oil Corporation have been doing business together for the past 15 years. S-Oil Corporation supplied base oil to the Gulf Oil Lubricants. However On Monday (28th September, 2020) the two companies took these relations one step forward with their marketing and manufacturing tie up.

As per the deal, the company will exclusively manufacture and market S-Oil's entire range of lubricants under the brand S-Oil Seven only for the Indian market. For international markets the products will be supplied directly from South Korea.

It is for the first time ever that S-Oil is manufacturing their products outside of South Korea. S-Oil has approved the manufacturing to take place in Gulf Oil's Chennai Plant and they have already started producing pilot batches.

Gulf Oil Lubricants India have 7.5-8% share in the Indian market currently out of which only 4% consists of passenger car market, but now with this tie up they are hoping to increase their market share in passenger car market as S-Oil has a good reputation and experience in the passenger car market globally.

According to the management of Gulf Oil Lubricants India, the products of S-Oil Seven will hit the Indian market in the third quarter of the current financial year.

UTI AMC IPO: Good or Bad

2020-09-27T18:33:00.008+05:30

UTI AMC IPO: Good or Bad

About the Company
UTI AMC is the second largest asset management company in terms of total AUM (Assets Under Management). Incorporated in 2002 it is in the business of managing the domestic mutual funds of UTI Mutual Fund, provides portfolio management services to institutional clients and high net worth individuals, manages retirement funds and alternative investment funds. UTI AMC has four sponsors SBI, LIC, BoB and PNB each of which has Government of India as a majority shareholder, it also a global asset management company T. Rowe Price International Ltd as one of its major stake holders with 26% stake in the company.

About the IPO

The IPO of UTI AMC aims to raise INR 2,160 crores of capital through issuance of 38,987,081 equity shares at face value of INR 10. The IPO will open for subscription on 29th September (Tuesday) and close on 1st October (Thursday). The price band of UTI AMC has been fixed at ₹552 to ₹554 with the minimum lot size to be of 27 shares (And multiples thereon). This means that one has to shell out at least INR 14,958 to bid for the issue. SBI, LIC and BoB are offering to sell 1,04,59,949 shares each while PNB and T. Rowe Price International are going to offload 38,03,617 shares each. The company has also reserved 2 lakh equity shares for its eligible employees.

The book running lead managers appointed for the issue are Kotak Mahindra Capital Company, Citigroup Global Markets India, ICICI Securities, SBI Capital Markets, JM Financial, Axis Capital and DSP Merrill Lynch.

UTI AMC IPO Details

IPO Date	29th Sep, 2020 to 1st Oct, 2020
Issue Type	Book Built Issue IPO
Issue Size	38,987,081 Eq Shares of ₹10 (aggregating up to ₹2,159.88 Cr)
Face Value	₹10 per equity share
IPO Price	₹552 to ₹554 per equity share
Market Lot	27 Shares
Min Order Quantity	27 Shares
Listing at	BSE, NSE

UTI AMC IPO Tentative Timetable

Bid/Offer Opens On	29th Sep, 2020
Bid/Offer Closes On	1st Oct, 2020
Finalisation of Basis of Allotment	7th Oct, 2020
Initiation of Refunds	8th Oct, 2020
Credit of Shares to Demat Acct	9th Oct, 2020
IPO Shares Listing Date	12th Oct, 2020

Lot Size And Price

Application	Lots	Shares	Amount
Minimum	1	27	₹14,958
Maximum	13	351	₹1,94,454

Promoter Holding

Pre Issue Share Holding	100%
Post Issue Share Holding	69.2%

Objective of the issue:

The objects of the IPO are to achieve the benefits of listing the equity shares on the stock exchanges and to carry out the sale of equity shares offered for sale by the promoters. In addition, the listing of the company's equity shares will enhance visibility and brand name among existing and potential customers.

Financials:

Summary Of Financial Information

Particulars	For the year (₹ in million)
	31-Mar-20	31-Mar-19	31-Mar-18
Total Assets	31,549.18	30,132.63	29,192.52
Total Revenue	8,909.61	10,808.94	11,627.47
Profit After Tax	2,764.85	3,479.27	4,050.91

Comparison With Peers:

Company	FV	Share Price	MCap (in million)	AUM (in miilion)	MCap/AUM
Nippon India	10	₹ 282	₹ 1,73,140	₹ 20,08,670	8.60%
HDFC AMC	05	₹ 2143	₹ 4,56,210	₹ 38,03,720	12.10%
UTI AMC	10	₹ 554	₹ 65,170	₹ 15,56,470	4.18%

Risk Factors:

A substantial portion of UTI's domestic fund QAAUM (Quarterly Assets Under Management) is concentrated in a few schemes.
UTI AMC's market share has declined consistently over the past years and may continue to do so, which could have an adverse impact on the business, financial condition and results of operation.
Credit risk related to the debt portfolio of funds to significant losses, which may have a material adverse effect on the business, financial condition and results of operations.

Our Outlook:

The valuation at which shares are offered is very attractive as compared to peers like HDFC AMC and Nippon India. One can bid in this IPO for listing gains.

GMM PFAUDLER OFS And What Management Has to Say About It

2020-09-24T18:16:00.009+05:30

GMM PFAUDLER OFS And What Management Has to Say About It

24 Sept, 2020

GMM PFAUDLER's share price goes into lower circuit for three consecutive days followed by announcement of Offer for Sales with a floor price of ₹3,500 at 33% discount to prevailing market price of ₹5,203.

What caused distress amongst investors :

According to the timeline:

1. Active Borrowing of GMM PFAUDLER from SLB Segment.

Between September 15 and September 20 at a stock price of INR 5,900 to INR 5,200 , approximately 74,000 shares of GMM PFAUDLER were borrowed from NSE’s SLB segment.

What is a SLB?

SLB stands for Security Lending and Borrowing wherein a lender lends its security to an investor (borrower) in exchange for a collateral for a specific period of time.

The collateral provided to the lender is usually more in market value than the security lent itself to compensate the lender for any loss if in case, the borrower is unable to return back the security.

Borrowers borrow securities, usually stocks, to perform short selling. Short selling becomes important in a bearish market wherein an investor feels confident that the market and the associated stock will go down in price.

After borrowing, an investor sells the stocks at a higher price, only to buy them back later at a lower price when the stock price falls following a bearish movement.

The stocks of GMM PFAUDLER were never borrowed in the SLB segment till this activity. The borrowed shares were short-sold between INR 5,900 and INR 5,200 and the traded volume in this duration was recorded to be nearly 49,500 shares.

2. Announcement of Offer for Sales (OFS) at INR 3,500 by DBAG

On September 21, after the market hours, GMM PFAUDLER announced OFS issue at a floor price of INR 3,500.

It was a steep discount (33.3%) from the prevailing market price of INR 5,203 which raised questions such as why the shareholder is doing so when the business prospects are good for GMM PFAUDLER and they can demand higher profits.

3. The shares of GMM PFAUDLER went into lower circuit for 3 consecutive days since the announcement.

Why is this correlated to SLB?

As mentioned earlier, securities are typically borrowed with the intention of short selling. The borrowers of GMM PFAUDLER short-sold their shares between INR 5,900 and INR 5,200.

These short-sellers could have purchased the shares again at INR 3,500 through the OFS offer which could have easily provided them with the profit of INR 1,700 to INR 2,400 per share excluding the lending fees to borrow shares.

This is further solidified with the exponential increase of trading volume to 6 lakhs between September 17-21 and the fact that the shares of GMM PFAUDLER were never borrowed before.

Managements' take:

Today, MD of GMM PFAUDLER in an interview with Zee Business clarified various instances related to their recent activities. He said that DBAG which is a private equity firm that also happens to be a major investor in the company for the last 6 years decided to monetize it’s 25% stake as usually private equity firms sell their stake in about 4-5 yrs. He further added that even at a 33% discount offer i.e at ₹ 3,500 the valuations are very rich as it is still 72 times it’s price to earnings recorded in FY20.

He also told that the Promoters, DBAG and Patel family are locked in for a period of 3 yrs from now, so no dilution will take place now.

As for the possible case of SLB fraud, the company clarified that no such instances were possible from their side due to their confidence in ethics and integrity and they are willing to cooperate for an investigation.

Patel family, shareholders of GMM PFAUDLER also provided 2% of their stake in OFS which earned proceeds of $14 Million. These earnings will be directed to the company’s benefits and thus, will be invested in acquiring 26% stake in their International business.

Lastly, following the above movements, the share holding pattern in the company will be as follows:

Patel family will hold about 22%, DBAG will come down to about 30% and public shareholding will increase to more than 50%.

Our Outlook:

GMM PFAUDLER has been performing well and we expect it to do so provided no possible cases of fraud are reported. The historical data of the company provides us with insights like large amounts of free cash flows (In simpler terms, more profits), strong entry barriers (Negligible competition for Glass lined Equipment's for healthcare industry) and reputed & reliable investors.

The retail investors can apply for OFS issues at INR 3,500 or purchase the trading shares at an ongoing price of nearly INR 4,000. Since the future of the company seems very positive to us, the prices might take off again earning profitable returns for investors.

Share Market Crash and How To Benefit From it

2020-09-23T03:01:00.005+05:30

Share Market Crash and How To Benefit From it

23rd Sept, 2020.

NIFTY sheds almost 100 points, BANK NIFTY sheds 227.7 points and SENSEX goes down by 300 points.

Yesterday i.e on 22nd Sept, 2020, we witnessed a strong bearish move for the second consecutive day and NIFTY breached it's important resistance levels of 11,200 and 11,150 after 14th Aug, 2020 and BANK NIFTY broke the important resistance level of 21,250, creating a panic in the market.

However, towards the end of the trading session there was a little recovery shown in the share market, unfortunately that didn't last for long. With all the Global Indices showing weakness and Indo-China border tensions we were expecting a bearish move. And that was clearly visible on charts as well.

How can you benefit from this stock market crash?

Look at this as a buying opportunity, this is the time when one must invest money, right now you can buy good quality stocks at cheap price and earn strong returns in the short term.

In Nov, when the US elections are about to take place, the markets may get volatile again and give another buying opportunity.

Our Outlook:

We feel, Pharma and IT sector will lead the market from here, Pharma sector is finally performing after a very large consolidation and has the potential to outperform the markets.

What should traders do?

Traders have to be cautious, although we feel most of the correction has already taken place but still keeping your positions light and saving your profits is what a trader should do in this kind of market, as they say "Live to Trade another day".

CAMS IPO

2020-09-20T18:23:00.011+05:30

Insights into CAMS IPO

About the Company
CAMS, a Chennai based venture, was founded in 1988 and is a third party service provider to financial institutions. The company is co-owned by powerful shareholders- NSE Investments Limited, HDFC Bank, Warburg Pincus LLC (Global PE Firm), Faering Capital (Indian PE Firm) and Acsys Investments Private Limited (Founding Promoter).

About the IPO

The IPO of CAMS aims to raise INR 2,250 crores of capital through issuance of 18,246,600 equity shares at face value of INR 10. The IPO will open for subscription on 21st September (Monday) and close on 23rd September (Wednesday); same as the timeline of Chemcon Chemicals IPO. The price band of CAMS has been fixed at Rs. 1,229 to Rs. 1,230 with the minimum lot size to be of 12 shares (And multiples thereon). At an upper price band, a person has to invest at least INR 14,760 to be an investor in the firm. The firm,prior to its IPO, has attracted an anchor investment of INR 660 crores from SmallCap World Fund, HSBC, Abu Dhabi Investment Authority, Caisse de Depot et Placement First State Investments, Eastspring Investments, Fidelity Investment Trust, Goldman Sachs, Government of Singapore, Nomura Funds Ireland Public Ltd. The fact that these anchor investors are known to be globally huge and reliable institutional investors, provides us with a good future outlook for CAMS IPO

CAMS IPO Details

IPO Date	21st Sep, 2020 to 23rd Sept, 2020
Issue Type	Book Built Issue IPO
Issue Size	1,82,46,600 Eq shares of ₹10 (aggregating up to ₹2,244.33 Cr)
Offer For Sale	1,82,46,600 Eq shares of ₹10 (aggregating up to ₹2,244.33 Cr)
Face Value	₹10 per equity share
IPO Price	₹1229 to ₹1230 per equity share
Market Lot	12 Shares
Min Order Quantity	12 Shares
Listing at	BSE

CAMS IPO Tentative Timetable

Bid/Offer Opens On	21st Sep, 2020
Bid/Offer Closes On	23rd Sept, 2020
Finalisation of Basis of Allotment	28th Sept, 2020
Initiation of Refunds	29th Sept, 2020
Credit of Shares to Demat Acct	30th Sept, 2020
IPO Shares Listing Date	1st Oct, 2020

Lot Size And Price

Application	Lots	Shares	Amount
Minimum	1	12	₹14,760
Maximum	13	156	₹1,91,880

Promoter Holding

Pre Issue Share Holding	43.53%
Post Issue Share Holding

What CAMS does:

CAMS is essentially a service provider to financial institutions and retail investors (General Public).

CAMS is the leading R&T agent for mutual fund agencies in India serving almost 70% of the average assets under management as of July 2020.

A Registrar and Transfer Agent (R&T Agent) is a third party affiliated with a mutual fund house that is responsible for keeping record transactions of all investors in the mutual fund, detail of dividend distribution, maturity dates of investments and form submissions to regulatory bodies such as SEBI.

In simpler terms, an R&T agent can be thought of as a one stop destination for all

information related to a particular asset management company.

As for its B2C market in conjecture with retail customers, it provides a variety of touchpoints such as a pan India network of Service centers, White Label Call center, Online, Mobile app, and Chatbot Services.

Competition:

There are two main R&T agents in India—Computer Age Management Services (CAMS) and Karvy. These companies deploy technology enabled services to banks, NBFCs, private equity funds and mutual fund managers, etc.

The competition in this sector is very limited and entry barriers in the industry are set because of the need to have superior technology and skilled human resources.

In our opinion, whenever a sector has strong entry barriers, the companies can gain profits over the long term without any significant competition or threat.

CAMS being the only company out of the sector getting listed in the share market, it is expected to maintain monopoly from our point of view.

The P/E multiple of the company is 36.55 with Market price taken at upper price band level. There is no other company in the same sector competing with CAMS.

Important Finances

Summary Of Financial Information

Particulars	For the year (₹ in million)
	31-Mar-20	31-Mar-19	31-Mar-18
Total Assets	8,025.34	7,363.24	6,978.48
Net Sales	6,614.58	6,513.48	6,059.64
Total Revenue	7,213.43	7,118.08	6,578.20
EBITDA	2,252.98	1,762.52	2,325.98
Profit After Tax	1,734.56	1,308.95	1,463.05

Capital Structure:

While we were analysing the financial statements of CAMS, one of the most important things we came across is that this company does not have any kind of debt burden pertaining to both short-term and long-term loans.

This company only utilises equity capital and retained earnings for its expansion and growth without any kind of financial leverage. Therefore, it does not carry the risk of defaults that come with other companies and the D/E ratio is essentially 0.

This is a very positive indication of the strength of the company's profitability.

Cash Flow Structure:

The cash flow from operating activities has increased over time with significant growth in period FY18-19 and gradual growth in FY19-20. The company generates enough profits to maintain stable operations with any debt burden. The cash flow from investing activities is negative because the company is investing in acquiring new assets and maintaining them. So, it is a positive sign of expansion by CAMS.

Another impressive point in the financial statements is that the cash flows from financing activities over the years are negative because the company is heavily distributing dividends to the shareholders.

Dividends Paid:

The company has paid out dividends to existing shareholders incrementally during FY2018-19 with most of the financing cash outflows resulting from the same. The dividends paid during FY2020 were lesser in amount, probably due to the need of reinvesting cash in the growth of the company and preparations of IPO.

From the cash flows, we can derive that the company has a huge inclination towards maximising the wealth of shareholders with efficient and profitable operations.

Our Outlook:

Future outlook- very very very positive. Investing in this IPO can give you handsome returns in the share market.

Chemcon IPO

2020-09-20T15:55:00.008+05:30

Everything To Know before Investing In Chemcons' IPO

About the Company

Chemcon Chemicals is a specialty chemical specialised company that was established in early 1988 to cater to the needs of oilfield chemicals, pharmaceutical chemicals and silanes.

The highest stake in the company is essentially owned by its founders, Mr Kamal Aggarwal and Mr Nareshkumar Goyal with 37.53% and 16.63% respectively.

About the IPO

Through the IPO, Chemcon Chemicals have plans to raise INR 318 crores of funding through listing of 45,00,000 equity shares as a part of a fresh issue. These shares will be available for subscription in the lot sizes of 44 shares to the general public (and multiples thereon) from 21st September 2020 to 23rd September 2020. The price band issued for such shares is fixed at Rs. 338-340. So, at the upper end of the price band, an investor has to pay INR 14,960 to be able to purchase one lot size.

The firm, prior to its IPO, has already raised INR 84 crores in capital from anchor investors like ICICI Prudential child care plan, gift plan IIFL Special Opportunities Fund Series 7, HSBC Global Investment Funds, Mirae Asset funds and others. Anchor investors are institutional investors that can infuse capital in a firm before it hits public markets and they also raise the confidence of retail investors or the general public.

Chemcon IPO Details

IPO Date	21st Sep, 2020 to 23rd Sept, 2020
Issue Type	Book Built Issue IPO
Issue Size	93,52,940 Eq shares of ₹10 (aggregating up to ₹318.00 Cr)
Fresh Issue	4,852,940 Eq Shares of ₹10 (aggregating up to ₹165.00 Cr)
Offer For Sale	4,500,000 Eq Shares of ₹10 (aggregating up to ₹153.00 Cr)
Face Value	₹10 per equity share
IPO Price	₹338 to ₹340 per equity share
Market Lot	44 Shares
Min Order Quantity	44 Shares
Listing at	BSE,NSE

Chemcon IPO Tentative Timetable

Bid/Offer Opens On	21st Sep, 2020
Bid/Offer Closes On	23rd Sept, 2020
Finalisation of Basis of Allotment	28th Sept, 2020
Initiation of Refunds	29th Sept, 2020
Credit of Shares to Demat Acct	30th Sept, 2020
IPO Shares Listing Date	1st Oct, 2020

Lot Size And Price

Application	Lots	Shares	Amount
Minimum	1	44	₹14,960
Maximum	13	572	₹1,94,480

Promoter Holding

Pre Issue Share Holding	100%
Post Issue Share Holding	74.47%

Sector Analysis

Before getting into the company details, it is important to understand how the market scope of the sector in which the company operates is. Specialty chemicals are high-performance and low-volume chemicals that predominantly find their usage in function specific industries like adhesives, pharmaceuticals, paints and coatings, etc. China is the largest producer of specialty chemicals, closely followed by India. Due to tightening of environmental regulations in China (2015) and rising costs of human resource, manufacturing backed by FIs is moving out to other competitive places like India. Following the Covid-19 crisis, the major supply chains have been disrupted with specialty chemicals deficient markets not being able to import their daily stock. Looking at the state of affairs, Chemcon Chemicals is ready to capitalize on this opportunity by being a leading exporter in high innovation product categories.

Company not only serves the domestic market but also exports it's products in overseas market such as USA, China, Japan, UAE, Serbia, Russia, Malaysia and Azerbaijan. It has a manufacturing plat at Manjusar near Vadodara in Gujarat, 5 operational plants, 3 warehouses and 2 leased warehouses.

The product portfolio of Chemcon chemicals is relatively small but the profit margins on these products gives it a high surplus.

Product/Service	No. of Products	Special Note
Oilfield Chemicals	4	1.One of the reliable partners for Completion Brines and the largest manufacturer of calcium bromide in India in 2019. 2.Manufactures Calcium bromide, Sodium bromide and Zinc Bromide, offering major oil and gas companies worldwide.
Pharmaceutical Chemicals	4	1.India’s largest manufacturer of specialised chemicals, such as Hexamethyldisilazane / Hexamethyldisilane (HMDS) and Chloromethyl Isopropyl Carbonate (CMIC), which are predominantly used in the pharmaceuticals industry. 2.One of the key suppliers to formulations and API manufacturers like Heteron Labs, Aurobindo, Laurus Labs and IndSwift Laboratories. 3.Largest revenue from pharmaceutical chemicals.
Silanes	3	1.The firm provides customized products of Silanes as per the final application. 2.Includes Hexamethyl Disilazane, Trimethyl Chlorosilane and Hexamethyl Disiloxane.
Contract Manufacturing Services (CRAMS)	1.The firm provides manufacturing services for production of customized chemicals. 2.They take up projects right from developmental scale to commerical production.

Important Finances

Summary Of Financial Information

Particulars	For the year (₹ in million)
	31-Mar-20	31-Mar-19	31-Mar-18
Total Assets	2257.92	1,730.33	970.66
Net Sales	2620.52	3041.68	1701.58
Total Revenue	2,660.17	3,053.26	1,583.91
EBITDA	649.22	612.03	418.64
Profit After Tax	488.53	430.41	263.81

Capital Structure:

The Debt to Equity (D/E) ratio of the company has grown from 0.51 to 1.36 from FY2018 TO FY2020 with long term loans increasing from INR 5.20 to 14.59 Crores. The debt burden should be considered before investing by the investors.

The D/E ratio tells us about the capital mix and financial leverage of a company.

*Note: D/E ratio < 1: The company has sufficient equity capital to cover the cost of debt. In simpler terms, the debt burden on the company is less.

D/E ratio > 1: The company is financing its operation with a substantial amount of debt. It is risky in the long term if the equity in the company is not able to cover debt expenses.

The Price to Earnings ratio (P/E) multiple for the company is 22.12 (based on upper price band) as compared to industry P/E of 35.74. The P/E ratio tells us about the future earnings potential of the company and investor confidence in the same.

Cash Flow Structure:

As for the cash generated by operating activities, the value has increased overtime which indicates that the company is making sufficient profits through its business and operations. We also understand that the company is investing in acquiring new assets including plants and machineries. So, it is a positive indication that Chemcon Chemicals is interested in expanding their business plans. As for the financing activities, through the issuance of equity shares in IPO, it is bound to increase in this year.

Our Outlook:

Positive future. The outlook for Chemcon Specialty Chemicals seems positive. Investing in this IPO may give you strong returns in share market.

About Us

2020-09-19T00:21:00.011+05:30

About Us

Our team consists of three people. (Shreyash Nikam, Sagar Sarkale & Aksheeta Jadhav). We are childhood friends and our bond was further strengthened with similar interests in the art of investing.

When we were in the nascent stages of investing, there were a lot of things we missed out upon or overlooked because of the absence of easy guidance. So our main objective is to let people tackle and learn that behind all the big jargons in finance, there lies an easy and basic concept. Together, we hope to make you fearless on the face of investing.

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Heranba Industries Ltd IPO

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23rd Feb, 2021 About the Company:

About the Company:

About the IPO

Heranba Industries Ltd IPO Details

Heranba Industries Ltd IPO Tentative Timetable

Lot Size And Price

Promoter Holding

Objective of the issue:

Important Finances

Summary Of Financial Information

Company's Strength:

Risks:

Our Outlook:

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EBITDA

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Expectations From Union Budget 2021.

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Initial Public Offering (IPO)

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20th Dec 2020 About the Company:

About the Company:

About the IPO

Antony Waste Handling Cell Ltd IPO Details

Antony Waste Handling Cell Ltd IPO Tentative Timetable

Lot Size And Price

Promoter Holding

Objective of the issue:

Important Finances

Summary Of Financial Information

Company's Strength:

Risks:

Our Outlook:

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About the Company:

About the IPO

Burger King IPO Details

Burger King IPO Tentative Timetable

Lot Size And Price

Promoter Holding

Objective of the issue:

Important Finances

Summary Of Financial Information

Comparison With Peers:

Company's Strength:

Our Outlook:

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23rd Feb, 2021

About the Company:

20th Dec 2020

About the Company: