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The craziness of IPOs in India reaching new heights with reports claiming that it will hit the Rs 100 Lakh Crore IPO mark at the end of the year. As many companies had suffered from a big financial loss due to COVID 19 outbreak, this is looking like a positive sign.

The stock market has recovered well as we can see the Sensex is reaching new heights every day.

A positive stock market thing has grown up the confidence in the companies to go public to grab this opportunity.

As a result, numerous IPOs are expected to go live in October 2021.

IPOs in the Calendar Year of 2021

There are around 42  SME-IPOs registered in the calendar of 2021. And the total amount raised only through IPO in 2021 is around Rs 58,000 Crores.

The numbers are enough to tell you about the craziness of IPOs, but still, there is a lot to come this year.

Top companies such as LIC IPO, Ola, Nykaa, Star Health, Oyo, Policybazaar and many more are ready in the line.

Companies such as Zomato, Barbeque Nation, Paras Defense, Devyani International have closed their share issues with great success. While others are preparing to file their DRHP with stock market regulator SEBI.

Below is the list of companies that are ready to launch their IPOs between October 2021 and March 2022.

Companies Tentative Size LICRs 55000 CrorePolicyBazaarRs 6000 CroresEmcure PharmaceuticalsRs 4,500 CroresPaytmRs 16,600 CroresNykaaRs 4000 CroresPharmEasyRs 3700 CroresBoat ElectronicsRs 3500 CroresLava InternationalRs 2400 CroreStar health insuranceRs 2000 CroreMobiKwikRs 1900 CroresMedplusRs 1600 CroresPenna CementRs 1550 CroreHelthium MedtechRs 1,500 CroreSupriya LifesciencesRs 1200 CroreApeejay Surrendra Park HotelsRs 1000 CroreMedi Assist Healthcare ServicesRs 850 CroreHP AdhesivesTo be announcedDelhiveryTo be announcedOyo Hotels and HomesTo be announcedESDS Software Solutions LtdTo be announcedOlaTo be announcedAnand Rathi Financial Services LtdTo be announced

IPOs to Expect in October 2021

Here is a complete list of IPOs that are gearing up to go public in October 2021.

Note** - This information is unconfirmed and subject to change as further updates are available.

Company NameIPO Lot SizeExpected DateArohan FinancialsRs 1800 CroreOctober 2021MobiKwikRs 1900 CroreOctober 2021CMS InfosystemsRs 2000 CroreOctober 2021Star Health Allied InsuranceRs 3000 CroreOctober 2021NykaaRs 4000 CroreOctober 2021Emcure PharmaceuticalsRs 4500 CroreOctober 2021

Emcure Pharmaceuticals

Emcure Pharmaceuticals is an Indian multinational pharmaceutical company. Headquartered in Pune, Emcure Pharmaceuticals works in manufacturing, developing and marketing a wide range of pharmaceutical products worldwide.

The company was founded by Satish Mehta, a pharma distributor’s son. He started Emcure as a contract manufacturer for multinationals in 1981, then started to sell his own branded generics.

About Emcure IPO

Emcure is gearing for an IPO of about Rs 4,500 Crore. The public issue involves a fresh issue of equity shares of Rs 1100 Crores and an offer for sale of nearly 18 million sales by the current stakeholders and promoters.

The company uses these funds to repay its current debt.

Nykaa

Nykaa is an Indian eCommerce company, primarily known for selling beauty, fashion and wellness products across websites.

Nykaa was founded in 2012 by Falguni Nayar, a former managing director at Kotak Mahindra Capital Company. Earlier, it was launched as an eCommerce portal, serving a wide range of beauty and wellness products.

In 2015, the company expanded its business and began selling fashion products online. In 2018, Nykaa launched Mykaa men with an intention to provide multi attire for men’s grooming.

In 2020, Nykaa launched Nykaa Pro. It's a premium membership program that provides special access to professional beauty products.

About Nykaa IPO

The total valuation of the total public issue is Rs 4000 Crore. It comprises fresh issue shares of Rs 525 crores and an Offer for Sale of up to 43 million shares.

The user base of Nykaa has been constantly increasing every year. Right now, the company has about 1.5 million shares. The company has more than 1200 brands on its website.

As of November 2020, Nykaa has a valuation of $ 1.8 billion. After this IPO, the company targets a valuation of $5 billion.

Nykaa is only the startup, which is expecting a profit from IPO launching.

Star Health and Allied Insurance Co. Ltd

Star Health and Allied Insurance Company is a health insurance company which is located in Chennai. The company is known for providing services in health, travel insurance, and personal accident.

On 21 July 2021, Star Health and Allied Insurance filed DRHP with SEBI in regards to IPO launching.

About Star Health and Allied Insurance

Currently, Star health occupies a market share of 15.8% in the private insurance sector.

The company has filed a DRHP with the regulator SEBI to launch an IPO of Rs 3000 Crore.

The public issue comprises a fresh issue equity share of Rs 2000 Crore and an Offer for sale of about Rs 6 Crore equity shares.

The objective of IPO is to maintain solvency level and expand its capital base.

CMS Info Systems

CMS info systems are India’s one of the leading cash management payment collusion companies. It offers its customers a wide range of cash management and managed service solutions, including ATM network management and managed services. This includes ATM network management, retail management and more.

The company is founded by the Blackstone Group, in partnership with Mr Rajiv Kaul - Ex CEO of Microsoft India.

About CMS IPO

This year, CMS has filed DRHP with SEBI to launch its IPO of Rs 2000 Crore.

Here, the public issue consists of an OFS or offer for sale only.

MobiKwik

Mobikwik is an online recharge and bill payment company in India. It is a fintech company that is one of the largest Buy Now Pay Later players in India.

MobiKwik was founded in 2009, by Bipin Preet Singh and Upasana Taku with an initiative of providing mobile wallets to make digital payment convenient for users.

About MobiKwik IPO

This year, MobiKwik has filed DRHP to go public with an IPO of Rs 1900 Crore.

The public issue comprises a primary share sale of Rs 1500 Crore and the rest will be an OFS.

The company has reserved 4.5 million or 7% of its equity for its employees.

MobiKwik has plans to touch the $1 billion valuations with the IPO

Arohan Financial Services

Arohan Financial Service is a leading NBFC that came with an initiative to provide loans for financially penetrated low-income states of India. Arohan provides income-generating loans and other financial services to customers who have limited or no access to financial services.

About Arohan Financial Services IPO

Arohan Financial Services has recently filed DRHP with SEBI this year. It is planning to go public with an IPO of around Rs 1800 Crore.

The public issue comprises an OFS of 27,055,893 shares and fresh issue equity shares of Rs 850 Crore.

To Apply for IPO visit https://ipo.swastika.co.in/

You often come across the news that the value of the rupee is appreciating or depreciating against the dollar.

• Have you ever tried to find out the root cause of it?
• Why do we always measure the rupee in reference to the dollar?

The answer is because of the exchange rate. The exchange rate tells us that the worth of one currency in terms of another currency.

For example: if we buy 1$ = 73.81 Indian rupees, means the exchange rate of the two currencies would be $ 1 =73.81 Indian rupees.

The exchange rates are of two types: Fixed Exchange Rate and Floating Exchange Rate.

The fixed exchange rate is the rate that doesn’t fluctuate due to the government’s interference.

In the case of floating exchange rate, it keeps on changing such as stock market. here, the government intervention is almost null.

Here, the question arises: which type of exchange rate does India have?

In India, there is a managed floating rate exchange system where the Indian government interferes only if the exchange rates go beyond the boundaries set by the country.

This can be done by increasing or decreasing the money supply as the situation demands.

Now, let’s discuss the common terminology used: Rupee Appreciation and Rupee Depreciation.

Rupee Appreciation means the currency i.e. Rupee is gaining strength and its value is growing with respect to the dollar.

When the value of the Rupee is depreciating, that means the value of the currency is going down and its value is decreasing with respect to the dollar.

Let’s understand it with an example:

Suppose, the current exchange rate is $1= Rs  73.81. After few weeks, let’s say after 11 months, you will notice the changes happen in the rupee.

Case 1:

The exchange rate is $1= Rs 70. This clearly indicates the value of the Rupee has gotten stronger and you are required to pay less amount for a dollar.

Case 2:

Suppose the exchange rate is $1 = Rs 75. This shows that the value of the Rupee has gone down and you end up paying more amount for a dollar.

The import-export business; pharma and IT sector are susceptible to changes in the forex rate and have an abundance of stake in the Indian stock market.

Why Does the Rupee Appreciate or Depreciate?

Appreciation or depreciation of a rupee heavily depends on the change in the demand and supply for both currencies. If the demand for the Rupee grows up, the Rupee appreciates; if the demand for the Rupee goes down; it depreciates.

Now, the question arises: what are factors affects a currency?

Interest Rate

A demand for a currency heavily depends on the interest rate differential between the two countries.

A country like India where the interest rate is around 7-8% shows a great capital inflow as investors get much better returns than what they get in the US (as the inflation rate in the US is 2-3% ).

This gives rise to rupee appreciation.

Inflation Rate

The demand for a country’s goods and services would be more if the inflation rate is lower in that country compared to other countries. Higher demand for goods and services means higher demand for that currency which results in the appreciation of that currency.

Import-Export

If a country exports more than its imports from other countries, that means the demand for that currency is more and hence the currency gains wide appreciation against other currencies.

Trading in Currencies in the Forex Market

Rupee’s appreciation or depreciation also depends on the exchange rate fluctuates every minute due to the speculative currency trading in the market.

Impact of Rupee Appreciation and Depreciation

When the Rupee Appreciates

Needless to say, the appreciation of the Rupee against other currencies will definitely uplift the economy. However, it can put a downturn in the stock market.  Let’s understand it with a suitable example:

When the Rupee Appreciates, the markets that mostly get affected by the appreciation are IT and exports. When the value of the Rupee grows higher against the dollar, IT sectors are mostly affected as most of their revenue is generated by exports.

This is because the appreciation of the Rupee makes exports costlier while the domestic exporters face losses as they end up earning less Rupee when exchanging the dollars.

Hence, the companies who are majorly into exports (IT, pharma, petroleum products and jewellery) will get affected more. This may heavily affect their share prices to a greater extent.

When the Rupee Depreciates

When the Rupee depreciates, companies that imports commodities such as oil and gas, food, beverages suffer the most. This can happen only as the value of the Rupee goes down against the US dollars and imports becomes much expensive.

Hence, when the value of the Rupee is depreciating, it mainly affects the company that imports raw materials, foreign borrowings etc.

Besides, the company that majorly relies on exports will benefit the most from Rupee depreciation. Therefore, stocks of IT and pharma will mark a bullish trend.

It is essential to know that the depreciation can affect the market sentients a lot as it causes a decline in foreign investment. When the value of the Rupee starts to decrease, foreign investors pull out their investments, which may put an adverse effect on the stock market.

Conclusion

Indian IT sector heavily depends on foreign clients. Our 70% revenue comes from the IT sector. Thus, when an IT company receives a project from a foreign client, a contract is signed where the cost of the project is pre-decided. The contracts with the US clients are fully quoted in terms of dollars. Hence, the fluctuation in the exchange rates makes a huge difference in the performance of a company.

Nowadays, people are much aware of their future goals, and plans. To accomplish this, they seek the best investment options which can help them to generate outstanding stock trading returns.

While selecting the investment instruments, investors are mostly looking for options that provide them low risk, tax benefits and liquidity.

Many people often start their investments either with SIP or PPF. However, some experienced investors park their money into equity (i.e. stocks).

PPF and Mutual Funds are the two main investment options that suit ordinary people of India. Let’s understand the investment instruments in detail and try to understand which one provides high liquidity and interest rates.

SIP or Systematic Investment Plan

A systematic Investment Plan or SIP is considered one of the best ways of investing in mutual funds. Newbies or students prefer to choose SIP over other investments because it teaches the financial discipline with wealth building for the future.

In SIP, you are allowed to invest a fixed amount for the investment in the market at regular intervals.

SIP needs a regular investment that helps you average out the purchase price and guards you from inadvertently catching a market peak when you invest.

How do SIPs Work?

SIP work on the two principles:

Rupee Cost Averaging

As investors, we don't know which is the right time to enter the market? Even top-notch investors often experience the same difficulty in finding the right moment when to enter and exit the market.

This mostly happens, when we start to rely on our emotions, getting sentimental by the market movements and end up buying when the market is going higher and selling when they are lower.

This is what we should not be doing.

Rupee cost averaging helps us to reduce the guesswork. In Rupee Cost Averaging, you need to invest a fixed amount of money no matter, the market goes up or down. This makes you buy more units when the market faces a downward trend and lesser units when it is at the peak.

This approach brings down your average cost per unit in the long run.

Compounding

The amount you save for the long term may provide an exponential impact on your investment. This all happens because of the effect of the compounding.

Let’s understand it with a suitable example:

Person A starts investing for his retirement at the age of 40. Considering interest rates of 7% with a monthly investment of Rs 1000, his total investment at the end of 20 years will be Rs 5,28,000.

Person B, on the other hand, starts investing for his retirement at the age of 20. Considering interest rates of 7% with a monthly investment of Rs 1000, his total investment at the end of 40 years would be Rs 26,56,436 - almost 5 times higher than person A.

Advantages of Investing in SIP

Financial Discipline

Needless to say, the regular investment amount brings financial discipline to the inventors. In other words, it encourages discipline and helps you earn wealth without disturbing your lifestyle.

Lower Risks

Even if mutual funds are subject to market risks, they are still better than equity. This is because SIP diversifies your investment amount thus minimize the risk to capital that will help you achieve volatility.

Convenience

SIPs give you the flexibility to increase or decrease the amount of investment at any time which in turn makes it the most hassle-free mode of investment.

Public Provident Fund or PPF

Public Provident Fund or PPF is a government-backed scheme where you will get fixed returns but set by the government every quarter. Many people consider PPF is a retirement saving scheme offered by GOI with the motive of providing a secure life post-retirement.

In PPF, the minimum deposit one can make is Rs 500 per financial year whereas the maximum deposit amount is Rs 1.5 Lakh.

As said earlier, the PPF interest rate for Q2 (July-September) has been fixed at 7.1%.

Difference Between SIP and PPF

ParametersPPFSIPInvestment AmountMin-Rs 500, Maximum Rs 1.5 LakhMinimum Rs 500, No Max. LimitInvestment Tenure15 Years minimum, Extendable in blocks of 5 yearsCan be low as 6 months and high as 20 years.Lock-in-period15 YearsNo-lock-in-periodInvestment RiskSince it’s a govt.backed scheme. Hence totally safeIt is risky as SIP is linked with market-linkedTax-BenefitsEEE (Exempt-Exempt-Exempt) category of taxDepends on the type of mutual fund. For instance, ELSS is eligible for tax deduction under Section 80CLiquidityLowHighReturns7.1% (Q1of FY 2021-22)**Market Linked

SIP Vs PPF: A Comparison

1. Safety

PPF is a government-backed saving investment instrument where the money deposited in PPF is utilized by the government. Also, the interest on the same is also paid by the government. Therefore, it is considered the safest instrument to invest in.

On the other hand, money in the mutual fund is subject to market risk. The value of equity funds also fluctuates every day. Debt funds also grow up and down due to changes in the bond prices.

However, a mutual fund offers higher growth in the long run. Also, investment in mutual funds through SIP will minimize the market risk and volatility by diversifying your money into different sections.

2. Returns

The returns of a PPF account are fixed and guaranteed by the government. However, the interest rate is declared by the government every quarter.

Here is the interest rate of PPF

Period Interest Rates January to March 20217.1%October to December 20207.1%July to September 20207.1%April to June 20207.1%January to March 20207.90%October to December 20197.90%April to June 20198.0%

Returns of the mutual fund, on the other hand, are market-linked. The returns of mutual funds vary as per the market conditions and the performance of the fund manager. The returns of a few of India’s largest funds are mentioned below:

Fund SIP Return Aditya Birla Sun Life Frontline Equity9.60%Kotak Standard Multicap Fund13.29%ICICI Balanced Advantage Fund10.22%SBI Small Cap Fund15.83%

3. Liquidity

Mutual funds are much more liquid than PPF. This is because PPFs have a lock-in period of 15 years. In a mutual fund, you can redeem your investments on any business day. This is the reason mutual funds are more liquid than PPF.

4. Tax-Benefits

Investment in PPF accounts for a tax deduction up to 1.5 Lakh per annum under section 80C of the income tax act, 1961. The interest that arrives on the PPF is exempt from the tax but must be declared in the annual income tax return.

The PPF maturity amount is also exempt from tax. Hence, PPF provides exempt-exempt-exempt-tax treatment.

Mutual fund returns are taxed according to the type of mutual fund scheme and investment time period.

Investment in a specific category of mutual funds is called ELSS funds tax also gives you a tax deduction of up to 1.5 Lakh per annum under section 80C. This exemption does not apply to other mutual fund categories.

Which Investment Option Should You Select?

It is difficult to compare one investment instrument with the other i.e. market-linked. PPF is apt for those who want zero risks in their investments. While mutual funds are for those investors, who are willing to take the moderate risk so that they can earn higher returns. The risk can further be reduced by investing through a long-term SIP in mutual funds.

SEBI is currently planning to implement its new strategy about allotment of shares which is currently T+2. Now, the time of settlement of shares has changed, the new time of allotment of shares is T+1.

Suppose, if an investor purchases shares in any company be it BSE or NSE, he will receive his shares in his Demat account in T+2 days i.e. trade +2. After receiving shares in a Demat account, he has a right to sell his share or hold it.

On the other hand, if the investor wants to share his shares, he will get funds transferred to his account within T+48 days.

Now, as per the SEBI rule, the settlement is proposed to be T+1 day. Earlier, the settlement cycle was T+3 days.

The settlement cycle refers to the time between the trade date when the order is executed, and the settlement date when the participants exchanged cash for securities; then only trade is considered final.

SEBI proposed the option to adopt T+1 based on readiness starting from 2022. The SEBI circular said that if the stock exchange wants to opt for the T+2 settlement cycle in between, it needs to give notice one month in advance.

Why did SEBI bring this new arrangement of settlement of shares?

SEBI has come up with this proposal only after some of the market participants have requested it. Here the T+1 refers to the shares that will be transferred in T+24 hours.

SEBI did not take this decision overnight, there are certain things involved such as consultation with market infrastructure institutions such as stock exchange, clearing corporations and depositors.

Very few market players have expressed their concerns on the operation problems in this arrangement such as the T+1 settlement cycle.

Minimizing the settlement cycle will directly impact the efficiencies in the stock market which in turn further protects investor’s interest. The new settlement cycle eliminates liquidity requirements, operational risks, counterparty risks that in turn minimize the margin requirement and collateral requirement for broker-dealers.

How Does It Impact Different Types of Investors?

The decision to change the settlement cycle leaves a great impact on many investors. For instance, high net worth investors such as FIIs, DIIs will extract a huge benefit from it. Earlier settlement i.e. T+1 can provide them more liquidity and minimize margin requirement.

It shall not impact small or retail investors as well.

Advantages and Disadvantages for Common Investors for T+1 Settlement Cycle:

With the help of the T+1 settlement cycle, investors now receive an earlier receipt of their funds after trade execution and settlement.

T+1 settlement cycle will require significant planning, execution and testing and it would change the market structure for sure.

If the infrastructure is upgraded with robust technology; the settlement process will be seamless and fast which in turn mitigates the probabilities of technical glitches.

Will the new cycle of settlement make any difference to the volatility in the market?

The new settlement of the cycle will increase the volatility in the market. Many developed countries such as the USA, UK, and Japan currently follow the T+2 trade cycle.

Needless today, there are some difficulties in the arrangement but minimizing the settlement cycle will generate greater operational efficiencies with low capital requirements.

Hence, we recommend you to do a test for two days and if everything is alright; it can be extended to one week and on successful testing, these things can be implemented permanently.

Media and entertainment giant Zee entertainment Enterprises Ltd said in an interview that it has given official approval for its merger with Sony Pictures Network India. Post this announcement, the stocks of Zee entertainment limited rose nearly 20% on the 24th of September.

It has marked that Zee, has been experiencing constant pressure from the top investors in regards to management shuffle which also include the exit of the chief executive Punit Goenka from the board.

Zee further said that the company and Sony Pictures signed a non-binding term sheet into which they had to work together in multiple streams such as digital assets, production operations, linear networks, program libraries and more.

As part of the proposed deal, Sony Pictures Network India will hold a 52.93% stake in Zee entertainment while Zee shareholders will hold a 47.07% stake.

The total period of a term sheet is of 90 days during which both the companies will conduct mutual diligence and finalize definitive agreements, the filing said.

As a part of the merged entity, Punit Goenka will continue to be the managing director and CEO of the whole deal.

Let’s understand, what’s the merger means to Zee entertainment and its shareholders:

How Does the Deal Benefit Zee Entertainment?

Zee Entertainment is considered as one of the largest entertainment players in the industry with an outstanding market share including a strong pan-India presence. Apart from the Hindi entertainment segment, the company nailed its presence in regional languages as well.

Currently, the company operates 49 channels in 11 different languages which in turn help the company to generate an extra audience base in the country. Also, Zee has its own OTT app called Zee5, which attracts its young audience as well.

However, during the pandemic, many things have been restricted which also hits the company hard in terms of revenue and fresh content availability. However, the company again took a fresh start and now it has started growing again.

The promoter's stake sale has been addressed and the company has some plans to undertake investment in the upcoming years. At this time, Sony’s merger with the company would aid the growth of Zee entertainment in the upcoming year.

Now, the company is planning to increase its content offering on the OTT platform Zee5 app to receive worldwide attention from the audience. The increased consumption of the content on the OTT platforms will surely benefit Zee entertainment in many ways.

As per the sources, the company continues to increase its viewership base and is likely to see a rise in it due to its lowered annual subscription fee which is Rs. 499 per year.

Recently, Zee released 11 shows and movies on the Zee5 platform. With fresh investments, there are more such shows and movies are likely to be released in the upcoming months. This, in turn, improves its overall subscription revenue.

As per the source, the company is all set to release 30 new shows in September month that is going to be featured in Hindi, Marathi and Tamil languages.

Also, it has started thinking to expand its movie production business which has suffered a lot in this pandemic.

Although the company faced a huge loss during the pandemic; it keeps maintaining its audience through the OTT platform Zee5.

As Zee entertainment is one of the oldest and leading companies in the entertainment and media industry, it has a strong audience base. It leaves no stone unturned in retaining and mesmerizing its new audience base through the television channel. In addition to this, Zee also plans to expand the movie production business that assists the company to monetize from different business segments.

Financials

If we look at the revenue model of Zee entertainment, then we will get to know that the company gets 40-45% of its revenue from its subscription and the rest is generated from the advertisements.

In the June quarter FY22, the company achieved revenue growth of nearly 30% than the last year. This was only due to the low base effect of the June quarter last year. The main reason behind the 30 per cent recovery growth is the subscription and the advertising revenue which has helped the company a lot.

If you compare the revenue of the company to the previous quarter i.e. March, id had failed by 17% due to the lockdown restrictions due to the second wave of COVID 19.

How Does This Deal Impact on the Investors

As everything looks good with the Zee-Sony merger, it takes a while for it to start generating revenue. This is because the pandemic leaves a heavy impact on all of us. In such cases, going to a theatre would be a huge risk.

However, the company can achieve revenue growth with the help of advertisements and the OTT platform Zee5.

The company’s advertisement revenue will heavily depend on the corporates’ performance also. Hence, in the long run, the Zee-Sony merger will bring something positive for the company and the investors.

Let’s quickly review the highlights of the Zee-Sony Pictures Limited Deal

Highlights

Sony Pictures will hold a majority stake in the Zee-Sony merger, where Zee holds 47.07% and the remaining stakes 52.93% to be held by Sony Pictures shareholders.

The board of directors will be nominated by Sony Pictures.

This merger is going to be a publicly listed company in India.

As per the non-binding term sheet, the promoters of the Zee-Sony group are free to raise their shareholders from 4% to 20%.

The final transaction would be subject to completion of customary due diligence and execution of definitive agreements and required third party approval, regulatory and corporates, including the votes of Zee’s shareholders.

Takeaway

Zee-Sony merger would take a drastic turn in investors lives. As the deal is closed, the shares of Zee entertainment ltd have increased to a greater extent. This will improve investors’ portfolios. The merger also leaves a heavy impact on retail investors as they can benefit a lot from Zee entertainment shares.

Traders invest most of their time in planning entry strategies but ending up taking bad exits. Do remember, just like entry trading, exit also matters in stock trading.

Many of us lack in planning effective share trading exit strategies which in turn force us to leave the stock market at the worst possible price.

There are bundles of questions that revolve in our minds while online trading. For instance, people don’t know how to deal with the fear of missing out. Do they think what happens if the scrip goes up after I sell?

The question often circulates in the mind of retail investors. If you are the one who has many doubts about exit trading, we have got you covered.

Before getting started, let’s take a quick tour of the holding period i.e. why the holding period is so important and how it plays an important role in the successful exit strategies.

Holding Periods

It’s impossible to discuss exit strategies without explaining holding periods. The holding period is the duration at which you can hold the stock and sell it after the relevant time. The time frame in the holding period helps you to identify the time you need to extract money from the stock market.

• Day Trading or Intraday Trading: Minutes to Hours
• Swing Trading: Hours to Days
• Position Trading: Days to Week
• Investment Timing: Week to Month

Here, you need to select the category that aligns most closely with your market because it shows how long you have to book profit or loss. This approach requires strict discipline as some positions perform exceptionally well so that you want to hold them beyond time constraints.

While you can stretch the holding period according to market conditions, don’t forget to take an exit within the time limits. Because such things increase your profitability and stock market trading skills.

Market Timings

Before entering the stock market, it would be ideal to get into the habit of profit and loss and risks associated with it. Try to figure out the next resistance level within the time constraints of your holding period.

Now, try to analyze the point at which you will be proven wrong if the stock prices go against your prediction and hit it. That’s your risk. Now calculate the risk-reward ratio which should be 2:1. If anything less and you should skip the trade, move for a better opportunity.

Signs That Shows to Exit from the Particular Stock

Let’s understand it with an example:

Imagine a situation where you invested in a company called ABC Limited. The price of the stock went high within a few years to touch a level of Rs 700 but started to make a fall and now it is trading at Rs 27 today.

Now, let’s think you did full stock market research in the company ABC limited and you believe the company may show a heavy growth and hence you have decided to stick with the stock even if the prices drop.

So, where did you go wrong? Aren't, you supposed to buy right, sit tight? The answer is Yes. Yes should do so but this is not the case sometimes.

There are few things you need to ponder that give you an idea: what is the best time to exit from a stock?

1. Fundamentals of a Company are Constantly Changing

Is there any change in the fundamentals of a company that affects a stock’s price?

Check out the quarter performance of the company. If you see any sort of delays in the company’s growth report and the company consistently underperforms, then it’s high time to deeply monitor the company’s fundamentals.

Check the company’s fundamentals for at least 3-4 quarters. Also, check the other parts such as the utilization of a company (if there is any decline) or if the NPA is growing up.

Another important factor to check the company’s performance is Debt. Many stocks now have become multi-baggers only because they have zero or negligible debt. Take a quick tour of the debt to market cap ratio.

The debt to market ratio is a way to measure the debt against the company’s ability to raise capital. If the debt percentage is less, the company’s performance is more stable. If you see the number has increased, it’s high time to exit from the stock.

2. Company’s Involvement in Corporate Governance Issues

Corporate governance issues tell you many things such as how well a company manages its stakeholder relations. Here, as an investor checkout for their disclosure policy, dividend policy, conflict resolution between internal and external shareholders. It’s also important how well the upper management handles these setbacks.

Another important thing to note is: if there has been any legal dispute between the senior authorities that haven't been resolved yet or if the company suffers a lot where you can see the exit of the senior business leader. These heavily impact the price of scrip and you see it gets down to a greater extent.

3. When the Company becomes Extremely Overvalued in Short Time

Normally, the share price of a fundamentally strong company goes high with time. There are certain cases, where the price of a stock goes too high compared to a very short period. In such circumstances, it would be ideal if you immediately sell the stock and book profit.

What to do After You Sell the Stock?

Many times it happens that after selling a stock, you keep questioning your decisions. This is apt for the investors who have worked with the company for years and get emotionally attached to the company.

The bottom line here is that you are in the stock market only to create wealth and hence you should not have stuck with the emotions. Don’t let your emotions overpower your mind.

Takeaway

Planning an exit strategy is effectively important as an entry into the stock market. Proper exit from stock not only prevents you from huge losses but also helps you to take certain actions on time which will help you in the near future. See, the stock market always depends on the strategies and therefore a meaningful strategy will lead you to achieve more returns from the stock market.

पिछले सप्ताह की शुरुवात में सोने के कीमतों में अच्छी बढ़त देखि गई लेकिन अमेरिकी फ़ेडरल रिज़र्व की बैठक में मौद्रिक नीति को नियंत्रित करने के निर्णय पर सोने और चांदी के भाव ऊपरी स्तरों से टूटे गए। 10 वर्ष अमेरिकी बांड उपज में भी लगातार बढ़त दर्ज की गई है। फेड के अतिरिक्त कुछ देशो की अर्थव्यवस्थाओं में मौद्रिक नीति को नियंत्रित करने की बात से कीमती धातुओं में दबाव रहा है।

घरेलु बाज़ारो में श्राध्द के चलते सोने और चांदी की खुदरा मांग में कमी रहने के आसार है जिससे कीमती धातुओं में दबाव बना हुआ है। लेकिन, फेस्टिवल सीजन करीब होने के कारण निचले स्तरों पर सपोर्ट रहने की सम्भावना है। चीन मे चल रहे रियल स्टेट संकट के कारण कीमती धातुओं में निवेश की मांग बढ़ सकती है।

एमसीएक्स वायदा सोने के भाव में 300 रुपये प्रति दस ग्राम की साप्ताहिक बढ़त रही और पिछले सप्ताह के अंत तक कीमते 46100 प्रति दस ग्राम के करीब रही है। अमेरिकी फ़ेडरल रिज़र्व के निर्णय का असर चांदी के भाव में कम रहा और घरेलु वायदा चांदी के भाव में भी 700 रुपये प्रति किलो का साप्ताहिक सुधार देखा गया है। अमेरिकी बेरोज़गारी और सर्विस पीएमआई के कमजोर आकड़ो से भी चांदी के भाव को सपोर्ट रहा है। डॉलर जो सोने की विपरीत दिशा में चलता है, सप्ताह के निचले स्तरों पर है।

तकनीकी विश्लेषण

इस सप्ताह प्रमुख अर्थव्यवस्थाओं के केंद्रीय बैंक सदस्यों के बयान होने के कारण कीमती धातुओं में उठा पटक रहने के आसार है लेकिन कीमतों में निचले स्तरों से सुधार होने की संभावना तकनीकी चार्ट पर नज़र आ रही है। सोने में 45600 रुपये पर सपोर्ट है और 46500 रुपये पर प्रतिरोध है। दिसंबर वायदा चांदी में 58000 रुपये पर सपोर्ट और 61800 रुपये पर प्रतिरोध है।

IPO Season is On!

Like other months, this week will be a busy one on the IPO front. Here, we will discuss some of the companies that are likely to file or have drafted DRHP with SEBI for the initial public offering to make their company public limited from private limited.

In the IPO process, the company is required to file DRHP (draft red herring prospectus) and then final RHP (red herring prospectus). After the completion of these processes, SEBI approves the initial public offer for the companies and they are ready to get launched in the primary market.

Here is a complete list of IPOs in September 2021:

• Sansera Engineering Limited
• Paras Defence and Space Technologies
• Arohan Finance Services Limited IPO
• MobiKwik IPO
• Seven Islands Shipping IPO
• Aadhar Housing Finance IPO
• Ruchi Soya Industries FPO
• ESAF Small Finance Bank
• PayTM IPO
• LIC IPO

IPO Launches Later in 2021

• Nykaa
• LIC
• Bajaj Energy
• Penna Cements
• Paytm IPO
• Annai Infra Developers
• Apeejay Surrendra Park Hotels
• Samhi Hotels

Now, let’s discuss the IPOs that may hit the primary market in 2021

1) Sansera Engineering Limited IPO

Sansera Engineering Limited is an engineering-led integrated manufacturing company that develops complex and critical engineered products in various sectors mainly automotive and non-automotive sectors.

If we talk about the automotive sector, the company primarily manufacturers and supply a wide range of machined components and assemblies such as rocker arm, gear shifter fork, crankshaft, stem comp, aluminum forged parts that are essential for engine, transmission, suspension, braking and other systems that are used for a two-wheeler, passenger vehicle and commercial vehicle verticals.

In the non-automotive sector, the company manufactures and supplies critical yet precision components for aerospace, agriculture, off-road and other things including capital goods.

2) Paras Defence and Space Technologies Limited IPO

As of December 2020, the company is known as the third largest seaborne logistics company in India by deadweight tonnage. As per the CRISIL Report, In 2020, the company held a significant market share in crude oil imports.

The company is involved in liquid products such as white oil, black oil, lube oils etc. Furthermore, the company is also engaged in crude oil logistics where it transports the crude oil in vessels classified as Suezmax and Very Large Crude Carriers.

3) Arohan Financial Services Limited IPO

Arohan Financial Services Limited is a leading NBFC-MFI mainly operated under low-income states in India. Arohan’s main objective is to provide income-generating loans and financial inclusion related products to the people who are not capable of accessing financial services or who have limited access.

Arohan offers a broad range of financial products to under served customers. The financial products are classified into credit and insurance products that include income-generating loans for numerous household purposes.

Also, the company generates several insurance products that include life cover and health insurance covers that are underwritten by certain insurance companies with whom the company has done tie-ups.

4) MobiKwik IPO

MobiKwik is a fintech company that is one of the largest mobile wallets yet largest buy now pay later players in India.

As we have seen digital payment has been rapidly growing in India but the credit card penetration is still only 3.5%. Keeping in mind, MobiKwik comes with an idea to promote digital payment with a unique concept of buy now pay later.

The company was founded in 2009 by Bipin Preet Singh and Upasana Taku, who came up with an idea to start a mobile wallet to make digital payments convenient for users.

Here, the services provided by MobiKwik includes digital bill payment, food delivery, petrol pump, eCommerce shopping, large retailer chain, grocery shops and more. The platform also enables peer to peer payments through Unified payment interface or UPI or MobiKwik Wallet to bank payments.

5) Seven Islands Shipping IPO

Seven Islands Shipping Limited is a Mumbai based liquid seaborne liquid logistics company that has been operating ocean-going for the past 19 years after coming under the Companies Act 1956.

Also, the company is committed to safe transportation with efficient services and cleaner seas. They do all the transportation with a huge responsibility such as safety of life at sea and thus ensuring a cleaner environment which in turn maintains high standards of their fleet.

Seven Island Shipping Limited currently owns a fleet of 21 vessels - 2 crude oil tankers and 18 product carriers.

6) Aadhar Housing Finance IPO

Aadhar Housing Finance Limited is one of the leading affordable housing finance companies that is known for fulfilling the home financing needs of the low-income sections of society.

With a motive to provide a home to underserved millions, Aadhar offers a wide range of mortgage-related loan products including loans for residential property purchase and construction, home improvement and extension loans, loans for commercial properties and construction and acquisition.

7) Ruchi Soya Industries FPO

Ruchi Soya Industries is one of the leading FMCG brands in the Indian edible oil sector. If we talk about the soya foods, Ruchi soya comes as the largest manufacturer of soya foods with a presence in almost the entire value chain in upstream and downstream business with secured palm plantation.

8) ESAF Small Finance Bank

ESAF Small Finance Bank is one of the leading small finance banks in India in terms of CAGR, AUM, client base size, the yield on advances, net interest margin in rural and semi-urban areas and the ratio of microloan advances to growth advances.

9) Paytm IPO

Paytm covers payments (wallet/UPI), merchant acquiring, credit saving, insurance and broking services to upgrade its e-commerce/e-ticketing platform. As of now, Paytm covers over 350 million installed base, 50 million active user base, and over 20 million merchant base. Paytm has around 100 million users which are KYC compliant.

10) LIC (Life Insurance Corporation)

In India, there are nearly 24 life insurance companies currently in operation. Out of which LIC comes at the top place with a market share of 69% in FY20. LIC comes under the government segment that holds a 95% stake in the overall company.

Takeaway

The IPOs that are stated above are not the only ones for this month. Many of the IPOs are still in the pipeline and may expect to get launched in the primary market by 2021 i.e. may be in the month of November and December.

We have seen a major decline in startup funding in the past few weeks. However, this week saw a significant rise in the total funding and startup raised.

The current week comes with many unexpected things such as Indian Startups that have raised over $130 Mn this week compared to $ 228 Mn in the last week i.e (Before 16 August - 21 August).

With over 27 funding rounds, the biggest round raised was by Skit, earlier known as Vernacular.ai which secured $23 Mn in series B round.

D2C health brand Soothe Healthcare just finished its Series C round and raised $ 13.6 Million to improve its growth plans and domestic manufacturing.

Also, Mumbai based fraud detection startup company IDfy has managed to raise a capital of $ 12 Mn through TransUnion International and Blume Ventures.

Mobile e-commerce company Bikayi raised $ 10.8 Million in series A funding by Sequoia capital India in order to increase product development, talent hiring and acquisition.

Out of all the 27 IPO deals, most investments have come into the following categories: enterprise tech, fintech and eCommerce sectors.

Here, we have mentioned all the funding rounds disclosed this week:

Startup Sector Sub sector Funding InvestorsSkit (Vernacular.ai)Enterprise TechSaaS$ 23 MnWestBridge Capital, Kalakari Capital & moreSoothe HealthcareHealth TechPersonal Hygiene$ 13.6 MnGulf islamic investment, Northern Arc, IncredIDfyEnterprise TechHR Tech$ 12 MnTransunion international, Blume VenturesBikayiEcommerceEcommerce Enablers$ 10.8 MnSequoiaSugar.fitHealth TechFitness & Wellness$ 10 MnCult.fit, Endiya Partners, Tangline Venture PartnersApps For BharatMedia & EntertainmentSpiritual$ 10 MnElevation capital, Saurabh Gupta, Ankur Sachdeva, Farid Ahsan, Kunal Shah and more.SkepsFintechEnterprise Tech$ 9.5 MillionBertelsmann India Investments, AccelDezervFintechInvestment Tech$ 7 MillionElevation Capital, Matrix Partners India, Kunal Shah, Ramakant Sharma, Ashish Mohapatra, Vidit Atreya, Anurag Sinha and more.OTOFintechLeading Tech$ 6 MnMatrix Partners India, Prime Venture Partners, Better Capital, Ramakant Sharma and moreApp JarFintechInvestment Tech$ 4.5 MnTribe Capital, Akram ventures, WEH Ventures and moreREVOSTransport techEV Charging$ 4 MillionUnion Square Ventures, Prime Venture PartnersBumberryE-commerceD2C$ 3.04 MnThe Chennai Angels, Konglo, Kerala AngelsMagicpinEnterprise TechSaaS$ 3 MillionRitesh Agarwal, Lightspeed, The Bunting FamilyRattleEnterprise TechSaas$ 2.8 MillionLightspeed, Sequoia Capital India, Ellen Lavy, Krish and RamanElevarEcommerceD2C$ 2.6 MillionKalaari Capital, Dream Capital1BridgeEcommerceRural Ecommerce$ 2.5 MillionC4D Partners, KAAJ Ventures and moreMy Classroom FoundationEdtechFoundation Courses$ 1.5 MillionPrem PrakashmoneyHOPFintechNeobank$ 1.25 MillionUndisclosedCondigalEdtechSkill Development$ 1.2 MillionY Combinator, Summer Capital, Nate Lipscomb, Peter Weck and moreAltiusFintechInvestment Tech$ 821 KUndisclosedPeppermintEnterprise TechSaaS$ 684 KVenture Catalysts, Indian Angel Network, Vinners Group and moreHabbitEdtechSkill Development$ 320 KAshok Goyal, Sanjeev Goenka, Kunal Ojha and more.Powerhouse 91EcommerceEcommerce EnablersUndisclosedFJ Labs, Ryan Gnesin, Sujay Tyle, Haresh Chawla and more.KraftInnEcommerceD2CUndisclosedNEDFi Venture CapitalSecLogicEnterprise techCyber SecurityUndisclosedIndia AcceleratorSynergyXHealth TechEnterprise ServicesUndisclosedAsha TripathiTealfeedMedia & EntertainmentKnowledge SharingUndisclosedAh! Ventures

Other Startup Deals

Startup Files for DRHP Startups Going for IPO Startups M&A this Week MapmyIndiaSnapdealBillDeskNykaaOlaJustdial – Acquired by RelianceMobiwikOYO RoomsThe Better Home – Acquired by GLobal BeesPaytmFlipkartCoding Elements- Acquired by Scalar Academy-Nykaa

Startups Already file DRHP with SEBI

MapmyIndia

MapmyIndia has recently filed its DRHP i.e. draft red herring prospectus with SEBI. As per news sources, the startup wants to go public by selling 7,547,959 equity shares to raise funds.

In the IPO, MapmyIndia’s executive director Rashmi Verma will be uploading (approve) 3,070,033 shares. MapmyIndia’s early backer Qualcomm is seeking to sell 2,026,055 equity shares.

Start-Up Going for IPO

Snapdeal is All Set to Raise $ 400 Mn IPO

Soon, Snapdeal files for an SME-IPO which could raise a capital of $ 400 Mn. The Softbank backed eCommerce site is seeking its first listing on the Bombay Stock Exchange with a valuation of $ 2.5 Billion.

Apart from Snapdeal, there are other startups too who are planning to go public next year.

These startups are: Olacabs, OYO rooms, and Walmart owned company Flipkart.

Ola offers Citigroup and Kotak Mahindra to Manage its IPO

Ridesharing company Ola has selected Citigroup and Kotak Mahindra to manage its IPO, which is going to happen next year. Also, Ola has hired an investment bank, Morgan Stanley, for its speculated $1 Billion IPO.

Soon Ola will file DRHP with SEBI before the end of the year. In August, Ola’s founder Bhavish Agarwal had mentioned ola’s plan to go public for the next year, followed by a public listing.

US- Based T Rowe Marks up Paytm’s Share by 16% and Above

T Rowe; an investment giant which invested in Paytm in 2019, has decided to raise the share price of the company by 16% or more from the original price it paid during its investment.

In June 2021, at least two mutual funds priced at $ 295 compared to the original $ 254 (complete the sentence) This is an increase of approximately 57% in the company valuation services as compared to the previous year where the shares were marked to $ 188.

Startups M&A This Week

PayU Acquires BillDesk For $4.7 Billion

This is going to be the biggest fintech deal where Prosus, the parent company of Fintech startup PayU has acquired Indian payment gateway company BillDesk for $4.7 Billion.

This deal allows both payU and Billdesk to own a wide market share in the online payments and billing providers and become one of the biggest online payment industries.

It may be noted that Billdesk will be the fourth major acquisition by PayU post-Wimbay, Paysense and CitrusPay.

Global Bees Acquire D2C Home Care Brand: The Better Home

Firstcry’s Global Bees has acquired sustainable home care product company The Better Home, which began as a content platform The Better India. Soon, the core team of Better India will join Globalbees and start working as per the prevailing product roadmap.

Reliance Acquires India’s Biggest Local Search Engine Company Justdial

Reliance Retail has now become the largest shareholder and takes sole control of Just Dial by purchasing a 40.98% stake in the company.

Justdial allotted 2.12 Crore equity shares of INR 10 each at INR 1022.25 per share on September 1.

This represents 25.35% of the post preferential issue paid-up share capital of Justdial to Reliance Retail.

Scaler Academy Acquires Coding Elements for $1 Mn

Interviewbit, now known as Scaler academy is an upskilling platform that has acquired edtech platform coding elements in a full cash deal which is worth $1Mn. Both the companies have been in talk post Scaler ventured into data science and machine learning process.

Takeaway

Startups play an important role in making the country self-dependent. They are the primary element of a country’s growth story. Startups not only upgrade a country’s economy but also uplift and benefit society at large.

As the economy, India now becomes the most favorite investment destination for FIIs. The primary thing that has initiated India’s growth in terms of a startup is its digital adoption, improved stock market listings and growing infrastructure. In this blog, we have mentioned all the major startups that have raised over $ 130 Million this week.

About the Company

Paras Defence is India's sole Infrared Optics producer. It is a leading private sector company in India engaged in designing, manufacturing, developing, and testing defence and space engineering products and solutions.

The company has five major product category offerings - Defence & Space Optics, Defence Electronics, Heavy Engineering, Electromagnetic Pulse Protection Solutions, and Niche Technologies.

The Tier 2 defence engineering firm is one of the most advanced and offers a large number of defence goods and solutions. They have an excellent client base with names such as ISRO, Bharat Dynamics, HAL, TCS, Tata Power and others.

About the IPO

The first public offering (SME IPO) for Paras Defense and Space Technologies will all begin next week from 21 September to 23 September. The IPO's size concerns Rs.170 crore including Rs.140 crore fresh and Offering for Sale (OFS) of Rs.30 crore.

Paras Defence IPO details

Subscription Dates21 – 23 September 2021Price BandINR165 – 175 per shareFresh issueINR140.6 croreOffer For Sale1,724,490 shares (INR28.45 – INR30.18 crore)Total IPO sizeINR169.05 – 170.78 croreMinimum bid (lot size)85 sharesFace Value INR10 per shareRetail Allocation35%Listing OnNSE, BSE

Objectives:

• Requirements for capital spending of the Fund.
• Incremental financing requirements for working capital.
• Corporate general objectives.
• Repayment or advance payment of all or part of some of the company's existing borrowing or loan arrangements.

Allocation

This SME IPO shows that the QIB part is 50 per cent reserved, while the Retail portion is reserved at 35 per cent. on the other hand, 15% of the NII component is retained.

IPO Strength

• They are one of the few players in high-quality optics for space and defence application manufacture in India.
• Strong innovation-oriented R&D capabilities
• They are in a good position to take advantage of "Atmanirbhar Bharat" and "Make in India" initiatives.
• Wide range of products and solutions for both defence applications

IPO Risk

• Due to loss, shutdown or slowdown in business activities, their firm and operating performance and financial performance may suffer substantially.
• A small number of customers make up a big amount of their company.
• Insufficient cash flows from their activities might have a significant and unfavorable influence on their operating capital needs.
• Their business is also dependent on contracts between the Government of India and related institutions such as government military enterprises and state research agencies. A reduction in orders, Indian defence and space budget

Financial Highlights:

For the six months ending on 30 September 2020, the firm has recorded overall revenues of Rs. 149.05 crore and Rs.37.94 crore. Consolidated PAT (profit after tax) in FY 2020 was Rs. 19.65 and for the six-month period ending 30 September 2020, it caused a loss in the amount of Rs. 14 lakh.

In 2021 the profit was Rs.15.79 crore compared with Rs.19.66 crore in 2020. In recent years the company has performed stably and will continue to do the same thing that will result in consistent business growth.

Recommendation

According to Swastika Investmart Analyst, eyeing the government's focus on the Space and Defense sector, it is expected that both the segments of the company are likely to be benefited. The "Make in India" campaign by the government to be self-reliant by 2027 will give a boost to the industry.

Since there are no listed players in the industry it is difficult to make an apple to apple comparison. The company is going to be listed in T2T-Segment.

The financials of the company has been mixed. However, in the long company may benefit from the initiatives by the government and is expected to perform well. The company has a strong order book and the IPO is priced at PE of 31x. Thus, we recommend a "Subscribe" rating to the IPO.

Sansera Engineering is an engineering-led integrated producer of complicated and crucial precision designed components.

They manufacture and provide a comprehensive range of quality forged and machined components comprising of connecting rods, rocker arms, crankshafts, stem comps, and forged Aluminium parts for vertical two-wheelers, passenger automobiles, and commercial vehicles' engine, gearbox, suspension, brakes, chassis, and other systems and assemblies for the automobile industry.

The firm manufactures and sells precise components for aerospace, off-road, agriculture, and other industries, including engineering and capital goods, in the non-automotive industry.

About the IPO

Sansera Engineering's initial public offering (SME IPO) subscription has started on Tuesday, September 14, 2021. It will end on Thursday, September 16, 2021. The business plans to raise 1283 crores through an initial public offering (IPO) with a price range of 734 to 744 rupees.

The IPO's minimum bid is 20 shares, which costs Rs. 14,880 per lot. According to the RHP papers, employee investors will receive a 36 per cent discount per equity share.

The company's initial public offering of 17,244,328 equity shares is an offer for sale (OFS) by current shareholders and promoters. In the grey market, it charges a premium of Rs 70.

Sansera Engineering IPO details

Sansera Engineering IPO details Subscription Dates14 – 16 September 2021 Price Band INR734 – 744 per share Fresh issue Nil Offer For Sale17,244,328 shares (INR1,265.73 – 1,282.98 crore)Total IPO size17,244,328 shares (INR1,265.73 – 1,282.98 crore)Minimum bid (lot size)20 shares Face Value INR2 per share Retail Allocation 35% Listing On NSE, BSE

Objectives

1. Strengthen worldwide market share in the present automotive product portfolio
2. Improve profits by focusing on operational efficiency.
3. Continue to increase the addressable market by leveraging current skills to diversify into non-automotive businesses.
4. Diversify into new products
5. Continually focus on technical capabilities to maintain and improve technology leadership

Allocation

The allocation for the investors is in the following manner. The retail institutional investors of this IPO is 35%, the QIB portion is 50%, and the HNI portion is 15%.

Financial Highlights of the Company

Automotive generated 88.45 per cent of sales in FY21, while non-automotive contributed 11.45 per cent. India accounts for around 65 per cent of the company's income, with the remaining 35 per cent coming from other nations. The firm is a leading provider of connecting rods all around the world. The firm has 15 production facilities in India, with nine of them in Bangalore.

In FY21, the average capacity utilization across its manufacturing units fell from 69 per cent in FY19 to 49 per cent. It was able to profit from its product range and product mix diversity.

In FY21, sales in India accounted for 64.98 per cent of SEL's total income, while international sales accounted for 35.02 per cent. Sansera was able to retain a better EBITDA margin than its counterparts in the car components business.

The company is showing growth in profit in the last 3 years where we saw a minor dip in FY20 on the back of COVID-19. Profits of the company have grown at a CAGR of 3.86% from Rs 980 cr to Rs 1098 cr over the period of FY19 to FY21, while revenue declined by 4.35% from Rs 16,408.09 cr to Rs 15,723.64 cr over the period of FY19 to FY21.

Competitive Advantages

1. The company majors in engineering and design.
2. It is the leading provider of high-quality accurately designed components to the automotive and non-automotive industries.
3. The company financial results are excellent
4. It has strong ties with well-known Indian and international OEMs.
5. It consists of a well-balanced portfolio of categories, goods, clients, and locations.
6. The Management staff is skillful.

Risks

1. They don't have any long-term supply contracts with their customers.
2. Their business is dependent on the sale of their products to some of their loyal customers.
3. The company's future growth rate is not positive.
4. They provide completed components to OEMs for the majority of their products, resulting in considerable value addition.
5. The production process is time-consuming and expensive with unpredictable deadlines and consequence.
6. The COVID-19 epidemic has had a major detrimental impact on their business and will continue to do so.

Recommendation

According to our Senior research analyst at Swastika Investmart, at the upper band of INR 744, the issue is valued at P/E 35(x) to its FY21 EPS of INR 21.02. The casting and forging business is expected to grow at a pace of 13%44% as compared to 5%-7% currently which is going to be lead by the efforts made by govt to rejuvenate the economy on the back of Make in India.

A big push is expected from infrastructure, oil and gas, mining, railways, and defence sectors also the attraction of Electric Vehicles will provide a boost in the industry.

The IPO is attractively priced, however, there are many listed and well-reputed players in the industry also the issue is purely OFS based. Thus, we assign an "AVOID" rating to the IPO.

अमेरिकी डॉलर में तेज़ी रहने से कीमती धातुओं के भाव में दबाव है। सोना में ऊपरी स्तरों पर दबाव रहने से इसकी ऊपर बढ़ने की गति कम हो गई है और इसकी बढ़त ऊपरी स्तरों पर टिक नहीं रही है । अमेरिकी डॉलर की मजबूती के दौर में कॉमेक्स सोना पिछले सप्ताह में करीब 2 प्रतिशत की गिरावट के साथ 1799 डॉलर प्रति औंस पर आ गया है।

घरेलु वायदा सोना 1.25 प्रतिशत टूट कर 46930 रुपये प्रति दस ग्राम के स्तरों पर है। पिछले सप्ताह अमेरिकी रोज़गार की रिपोर्ट ठीक रही लेकिन देश में कोवीड-19 दैनिक मामलों और मौतों की लगातार बढ़ती संख्या चिंता का विषय बनी हुई है जो कीमती धातुओं के भाव को सपोर्ट करती है। एशिया पैसिफिक, चीनी मुद्रास्फीति के आंकड़े, जिसके अनुसार उपभोक्ता मूल्य सूचकांक अगस्त में महीने-दर-महीने 0.1 प्रतिशत और साल-दर-साल 0.8 प्रतिशत बढ़ा है।

उत्पादक मूल्य सूचकांक साल-दर-साल 9.5 प्रतिशत बढ़ा है। मिले जुले आंकड़े होने से कीमती धतुओं के भाव सीमित दायरे में बने हुए है। इस बीच, वर्ल्ड  प्लेटिनम इन्वेस्टमेंट काउंसिल (डब्ल्यूपीआईसी) ने गुरुवार को पूर्वानुमान लगाया है की वैश्विक प्लेटिनम बाजार इस साल पर्याप्त आपूर्ति में होगा क्योंकि खदान की आपूर्ति में तेजी आई है और निवेश की मांग में गिरावट आई है।

यूरोपीय सेंट्रल बैंक ने गुरुवार को अपनी मौद्रिक नीति को अपरिवर्तित रखा, लेकिन अपने महामारी आपातकालीन खरीद कार्यक्रम के तहत शुद्ध संपत्ति खरीद की गति को धीमा करने का विकल्प चुना है। यूरो क्षेत्र की मुद्रास्फीति अगस्त में एक दशक के उच्च स्तर 3 प्रतिशत पर पहुंच गई और यूरो क्षेत्र के 19-सदस्यीय आम मुद्रा ब्लॉक में जीडीपी दूसरी तिमाही में 2 प्रतिशत बढ़ गई, जो अर्थशास्त्री अपेक्षाओं को बढ़ा रही है।

तकनीकी विश्लेषण

इस सप्ताह कीमती धातुए सीमित दायरे में रह सकती है। सोने में 46400 रुपये पर सपोर्ट है और 48000 रुपये पर प्रतिरोध है। दिसंबर वायदा चांदी में 62500 रुपये पर सपोर्ट और 66500 रुपये पर प्रतिरोध है।

Many people waste a lot of their hard-earned money on such things which they don’t necessarily need.

Are you one of those? If yes, then you have come to the right place. Here we are giving you some fascinating tips to improve your wealth in the simplest ways.

But before that, let’s understand the thinking of squander like what they do while having money in hand.

Many of us have a bad habit of spending money on the things that attract us the most. For instance, a new smartphone or a car that just launched in the past week. How many people will go for it and buy it? A lot. But the thing is they don’t even realize it and after a few days they end up regretting their foolish decisions.

Here, the irony is, even the smartest people also do such things and then suffer from budget leaks.

Before taking any decision in regards to buying? You need to ponder it. Before buying anything which is a new arrival in the market; just ask yourself: Do you really need that smartphone or car or do you just want to buy because your relatives or neighbour has already got that?

Well, if these are the reasons then you need to think carefully about your decisions.

Whether it’s careless spending or tiny indulgences, your actual spending's are going into the drain and you can’t even notice it.

Now let’s look at the ways to improve your financial health with these wealth management tricks:

1) Reassess your Risk Tolerance

COVID 19 pandemic has significantly affected the investor’s portfolio to a greater extent. Also, many people have lost their jobs which ultimately impacted wealth creation.

At this point, wealth creation could be a difficult thing to accomplish. Also, the ability to take risks versus one’s willingness to take risks can be a different thing.

For instance, an investor had a risk tolerance to face losses of up to 30% of your investment portfolio before the break, you may not be in a position to take any losses.

The risk assessment is what someone can do right now. Accurate risk tolerance can help you to restart the creation of wealth while saving money at the same time.

2) Prioritize Your Financial Goals

Put your financial goals on the top of the priority list as you maintain the wealth, it will lead you to a post comfortable retirement life. The current pandemic where many of the incomes are getting choked can impact your chances of achieving all your financial goals.

3) Re-balancing your Investment Portfolio

Pandemic has completely changed everyone’s life. Be in investment goals, lifestyle, financial liberty etc. Take a positive outlook on it and start rebalancing your portfolio. After the pandemic, everyone’s risk appetite, financial goals, return expectation has changed.

Therefore it is important to rebalance your portfolio as well. Re-shuffling of securities among different asset classes will increase your wealth capital for sure.

4) Focus on Having Multiple Sources of Income

Having multiple sources of income is a better way to combat any financial crisis. For instance, many people have lost their jobs in the current pandemic. However, there are some people too, whose financial condition remains unaffected.

This is because they have multiple sources of income which makes them financially strong even if the situation is adverse.

Having an emergency fund is one of the finest ways to improve financial health. Suppose, if you are encountered with any unexpected financial emergency, this fund will act as a lifesaver for you as with the help of it, you will be able to save a lot of debt.

5) Contributing Towards your Retirement

Making a retirement plan at the early stage of your life is the smartest way to raise your wealth. Retirement may be a few years away or a long time, but the earlier you save, the more time you will have to compound your money.

6) Having a Plan for Debt

Debt is a huge financial obstacle to overcome when it comes to raising wealth. This is because debt comes with other problems too such as the ability to save money or also, it impacts your credit score. This can end up costing you higher interest rates while planning your home or buying any expensive gadget.

If you have adequate debt, make it a priority to pay off that debt asap. Make a plan to pay your debt. Make a complete list of all your debts such as how much you owe, how much you should put towards the debt payment and how long it would take to repay loans.

Stick to this plan until you finish all your debts.

People often think that saving money while having debt is not possible. However, this is not the case. You can’t save a 20% amount of your salary, but a little of your savings assure you no future debt.

7) Spend Less than you Earn

Make an appropriate budget and spend your income accordingly. Make sure that your spending should be less than your earnings. This advice should biased towards wealth, no matter how little or more you earn - don’t save more than what you can afford.

Focus on a simple saving strategy, such as giving up a gym membership just because you have a local garden where you can do exercise, can result in bulk savings. If you follow some simple strategies, you can easily differentiate between necessary expenses and luxury expenses.

Takeaway

Becoming financial wealthy is not difficult as it seems. Anyone can achieve it irrespective of their financial circumstances.

If you want to build a strong wealth, you can achieve it with the help of certain tips: cut down your expenses, think before purchasing anything, avoid debt, plan a budget and stick to it.

Although these are the basics that help you to save money, they can't be enough. Hiring a relationship manager will provide you with a good solution in such cases.

A relationship manager builds your portfolio, rebalances it promptly so that you won't find any financial difficulty even in a crisis.

Vijaya Diagnostic Center is certainly considered one of the most important diagnostic networks in India. It helps in the delivery of fast, cost-effective, and cutting-edge diagnostic care in a great atmosphere.

Vijaya Diagnostic Centre provides pathology and radiology offerings to it as clients through its community of 80 diagnostic centres and 11 reference laboratories throughout 13 towns and cities with inside the states of Telangana and Andhra Pradesh and the National Capital Region and Kolkata. They have massive groups and networks that are serving as exceptional providers to the nation.

For the convenience of their clients, they provide value-added services such as home specimen collection, house visits, and various delivery or access options (i.e., diagnostic centres, SMS, email, and online portal) for test reports.

The Vijay Diagnostic IPO comprises an OFS amounting to 1,895.04 cr. The issue will open on Sept 01, 2021, and closes on Sept 03, 2021. The issue is priced at 522 to 531 per equity share.

The minimal bid lot is 28 stocks and in multiples of 28 stocks subsequently. It will close on September 3. While the corporation will now no longer acquire any proceeds from the SME IPO the promoting shareholders will get them it expects the list of the stocks to decorate its visibility and brand image.

Objectives:

1. The company wants the Prepayment or repayment of all or a portion of the outstanding borrowings to be availed on a consolidated basis.
2. To fulfill general corporate objectives.

Strengths:

1. Largest and fastest-developing diagnostic chain in Southern India.
2. Affordable, one-stop answer diagnostics service company with the focal point on superior quality.
3. All laboratories have National Accreditation
4. Strong technical capabilities, present-day diagnostic testing technology, and strong IT infrastructure.

Risks:

1. If they're not able to keep and extend their brand call and image, their corporation and future can also suffer
2. The COVID-19 epidemic can also additionally have a terrible effect on their corporation, and the long-time period outcomes are unknown.
3. Any disruptions at their flagship centre and different diagnostic centres may affect their potential to conduct diagnostic assessments, which could harm their commercial enterprise.
4. Because of the competitive business climate, and their inability to compete successfully might damage their company business.
5. Their potential to execute operations is probably affected if their device fails or malfunctions.
6. Their CEO Sura Suprita Reddy is accused of a criminal case.

Basis of Allotment

Qualified Institutional Buyer constitutes 50 percent. around 15 per cent is allocated to Non-Institutional Investors and around 35 per cent is kept for retail investors. For retail investors, it is kept at a minimum of one lot, primarily based totally on availability for each shareholder.

Financial Highlights:

The corporation witnessed a CAGR of 13 per cent in case of sales from operations, from Rs 292.6 crore in FY 2019 to Rs 376.7 crore in FY 2021. In the case of adjusted EBITDA, the corporation witnessed a CAGR of 24 per cent from FY 2019 to FY 2021.

The corporation operations have been improved considerably from 61 diagnostic centres as of March 31, 2019, to 81 diagnostic centres as of June 30, 2021. The corporation’s earnings for the 12 months grew from Rs 46.27 crore for 2019 to Rs 84.91 crore for 2021.

IPO Details

Vijaya Diagnostic Centre IPO details

Subscription Dates1 – 3 September 2021Price BandINR522 – 531 per share Fresh issue Nil Offer For Sale35,688,064 shares (INR1,862.92 – 1,895.04 crore)Total IPO size35,688,064 shares (INR1,862.92 – 1,895.04 crore)Minimum bid (lot size)28 shares Face Value INR1 per share Retail Allocation35%Listing On NSE, BSE

Recommendation

Indian diagnostics market was up to Rs.730 billion in FY21 and projected to grow at a CAGR of 13% to reach approximately Rs.980 billion by FY23 where the growth is expected from the awareness of healthcare and spending on preventive and wellness.

IPO is priced at a PE of 64x on the EPS of Rs. 8.26 which is slightly lower as compared to its peers. There have been negative sentiments for pure OFS based IPO and we saw that few recent IPOs have not performed well in the last couple of months. Thus we assign an "Avoid" rating to the IPO.

Vijaya Diagnostic IPO FAQ's

What is Vijaya Diagnostic IPO?

Vijaya Diagnostic IPO is the main board IPO of having 35,688,064 equity shares of the face value of ₹ 1 that aggregates up to ₹ 1895.04. The issue is priced at ₹ 522 to ₹ 531 per equity share.

The minimum order quantity is 28 shares.

The IPO opens on September 1, 2021, and closes on 3 September 2021.

How to apply in Vijaya Diagnostic IPO through Swastika?

1.Visit the Swastika website and click on it to open Demat account.

2. Submit the IPO application form.

For more details, click on https://trade.swastika.co.in/

सोने- चांदी के भाव पिछले सप्ताह जैक्सन होल सिम्पोसियम के होने के कारण एक सीमित दायरे में ही रहे और कीमती धातुओं में कारोबार का दायरा सकारात्मक रहा। अमेरिका की 10 साल बांड उपज बढ़कर 1.34 प्रतिशत हो गई है।

डॉलर की तुलना में रूपया पिछले सप्ताह में 0.37 प्रतिशत मजबूत हुआ है जबकि डॉलर इंडेक्स जो सोने की विपरीत दिशा में चलता है, 0.82 प्रतिशत की गिरावट दर्ज की गई है। अमेरिका से जारी बेरोज़गारी के दावे और प्रिलिम जीडीपी के आंकड़े अनुमान से कमजोर दर्ज किये गए।

दूसरी ओर, अफगानिस्तान में बदतर होती परिस्थिति के कारण निवेशकों का भरोसा सोने में बना हुआ है। कच्चे तेल के भाव में 300 रुपये प्रति बैरल की तेज़ी पिछले सप्ताह में देखि गई है जिससे सोने के भाव को सपोर्ट मिला है।

शुक्रवार को हुए जैक्सन होल सिम्पोजियम के भाषण मे पॉवेल के मुताबिक इस बात पर विश्वास करने का कोई कारण नहीं है कि मूलभूत अवस्फीति के कारण अचानक बदल गए हैं, और मुद्रास्फीति लगातार घटने की संभावना है।

श्रम बाजार में पर्याप्त सुस्ती और महामारी जारी रहने के साथ, गलत समय पर नीतिगत कदम विशेष रूप से हानिकारक हो सकता है। संपत्ति खरीद कार्यक्रम इस साल के अंत तक घटाया जा सकता है लेकिन सीधे तोर पर ब्याज दर वृद्धि के संकेत नहीं है।

फेड प्रमुख जेरोम पॉवेल के बयां के बाद कीमती धातुओं में निचले स्तरों से उछाल देखा गया। और अक्टूबर वायदा सोना निचले स्तरों से 400 रुपये मजबूत होकर 47200 रुपये प्रति दस ग्राम पर रहा।

तकनिकी विश्लेषण

इस सप्ताह कीमती धातुओं में तेज़ी रह सकती है।  सोने में 46700 रुपये पर सपोर्ट है और 48000 रुपये पर प्रतिरोध है। दिसंबर वायदा चांदी में 62500 रुपये पर सपोर्ट और 64500 रुपये पर प्रतिरोध है।

सोने में पिछले सप्ताह 900 रुपये की गिरावट आने के बाद निचले स्तरों से सुधार दर्ज किया गया और कीमते सप्ताह में सपाट रही। अमेरिकी मुद्रास्फीति के आंकड़े कमजोर रहने के कारण सोने में  नीचले स्तरों से अच्छा सुधार देखा गया। छह प्रमुख मुद्राओ का मापक डॉलर में ऊपरी स्तरों पर हल्का दबाव रहा लेकिन सप्ताह में यह 0.18 प्रतिशत मजबूत हुआ है।

सोने में निवेशक फेड की अगली मौद्रिक नीति की प्रतीक्षा में है जिसमे संपत्ति खरीद कार्यक्रम को कम करने के लिए समय की घोषणा हो सकती है। जिससे सोने और चांदी के भाव में लम्बी अवधि के लिए नई दिशा मिल सकती है। लेकिन अमेरिका के कोर कंस्यूमर प्राइस इंडेक्स के आंकड़े अनुमान से कमजोर  दर्ज किये गए जिसके कारण संपत्ति खरीद कार्यक्रम को टाले जाने की अटकले निवेशकों में रही और सोने के भाव को पिछले सप्ताह निचले स्तरों पर सपोर्ट रहा।

वही, अमेरिकी प्रोड्यूसर प्राइस इंडेक्स में 1 प्रतिशत की मजबूती दर्ज की गई है जो की एक दशक के किसी महीने में सबसे अधिक है। हालांकि फेड अधिकारियो ने नियंत्रित मौद्रिक नीति पर समय को लेकर विभिन्न विचार दिए है। इस बीच, अमेरिकी आकड़ो के मुताबिक पिछले सप्ताह में 375,000 प्रारंभिक बेरोजगार दावे दायर किए गए, जो पहले दायर किए गए 387,000 दावों से कम थे। घरेलु वायदा सोने में कीमते सप्ताह में सपाट रही जबकि चांदी के भाव में 4 प्रतिशत की मंदी दर्ज की गई है।

साप्ताहिक आंकड़े

इस सप्ताह अमेरिका के प्रमुख आंकड़े है जिनमे : मंगलवार को रिटेल सेल्स, फेड चेयर जेरोम पॉवेल का बयान और बुधवार को फ़ेडरल रिज़र्व की बैठक प्रमुख है।

तकनीकी विश्लेषण

इस सप्ताह सोने और चांदी में ऊपरी स्तरों पर दबाव रह सकता है। सोने में 47000 रुपये पर प्रतिरोध है और 46000 रुपये पर सपोर्ट है। चांदी में 64000 रुपये पर प्रतिरोध और 61000 रुपये पर सपोर्ट है।

Windlas Biotech founded in 2001, is one of India's top pharmaceutical formulations contract development and manufacturing organisations (CDMOs).

From product discovery to product development, licencing, and commercial manufacture of generic products, including complex generics, the firm provides a full spectrum of CDMO services.

The company's current emphasis is on the development of complicated generic medicines in the chronic therapeutic category for lifestyle-related diseases.

CDMO Products and Services, Domestic Trade Generics, and Over-the-Counter (OTC) Market (Nutraceutical and Health Supplement Product) are the three verticals in which the company works. It also offers its own branded products in the generics and over-the-counter (OTC) sectors.

About the IPO

The SME IPO consists of a fresh issue of Rs 165 crore and an offer for the sale of 51,42,067 equity shares by existing selling shareholders.

The offer for sale consists of promoter Vimla Windlass selling 11.36 lakh equity shares and investor Tano India Private Equity Fund II selling 40,06,067 equity shares. Tano India Private Equity Fund would leave the firm through an offer for sale, selling its whole 22 per cent share.

Objectives of the IPO

Windlas Biotech will use the net proceeds from its new issue to acquire equipment for capacity expansion of the current facility at Dehradun Plant – IV, as well as adding injectable dosage capabilities to the existing facility at Dehradun Plant-II (Rs 50 crore).); working capital requirements (Rs 47.56 crore); and repayment of certain borrowings (Rs 20 crore). The firm is currently in debt to the tune of Rs 30 crore. The debt is expected to be reduced by Rs 10 crore following the IPO:

Windlas Biotech IPO details

Subscription Dates 4 – 6 August 2021 Price BandINR448 – 460 per share Fresh issueINR165 crore Offer For Sale5,142,067 shares (INR230.36 – 236.53 crore) Total IPO sizeINR395.36 – 401.53 crore Minimum bid (lot size)30 shares Face Value INR5 per share Retail Allocation 35% Listing On NSE, BSE

Financials

• The company's cash flow from operations was positive in the previous three financial years. the company's revenue increased by only 7 per cent CAGR in the last three years.
• In the preceding three financial years, the company's cash flow from operations was positive.
• As of FY21, the company's net debt is minimal (about Rs 20 lakh), and its interest-coverage ratio is roughly 42 times.
• The company can run its operations without relying on outside funding
• In FY21, the company's short-term borrowings grew by 40%, compared to about 23% in FY20.
• The business is free of significant contingent liabilities
• While the current return on equity is around 18%, the three-year average return on equity is 11.71%.
• Similarly, while the current ROCE is 20.2 per cent, the average ROCE over the last three years has been 16 percent.

Strength

• Take advantage of expansion possibilities by utilizing your CDMO market-leading position.
• Continue to expand the CDMO's clientele.
• Enhance R&D and production capacity to expand product portfolio and delivery methods.
• By leveraging on industry possibilities, focus on the domestic trade Generics and OTC Brands SBV and high-growth export markets.
• A move into the high-growth injectable market.

Recommendation

The firm is concentrating on developing and launching complicated generic medicines in the chronic therapeutic category for lifestyle-related diseases.

The company supplies seven of India's top ten pharmaceutical companies.

In terms of revenue, it is one of the top five companies in India's domestic pharmaceutical formulations contract development and manufacturing organization (CDMO) market-consistent revenue growth the company has a negligible amount of net debt (around Rs 20 lakh) and its interest-coverage ratio was around 42 times as of FY21.

We recommend subscribing to this IPO. Multi-drug therapy has gained relevance in the healthcare industry over the last few years and is projected to help the expansion of pharmaceutical consumption.it is one of India's major contract development and manufacturing firms (CDMO) for pharmaceutical formulations.

It also intends to enhance its capacity with the funds obtained, which will benefit the firm in the long run.

Introduction:

Rolex Rings, Incorporated in 2003, based in Rajkot, Gujarat, is one of the country's largest makers of forged and machined components. The business has established a long-term relationship with its clients.

Rolex Rings made a profit of Rs 86.95 crore for the fiscal year ended March 31, 2021, up from Rs 52.94 crore the previous year, its net profit at a compounded annual growth rate stands at 21.3%.

More than half of the company's revenue comes from outside the country, with 60 customers in 17 countries, including India.

Domestic and worldwide markets are spread across two-wheelers, passenger vehicles, commercial vehicles, off-highway vehicles, electric vehicles), industrial machinery, wind turbines, and railways, among other areas.

It produces a diverse range of bearing rings, that are appropriate for a wide range of end-users.

Some of the main worldwide and local names that Rolex Rings serves are SKF India, Timken India, and NRB etc.

About the IPO

The SME IPO is worth Rs.731 crore. The new issue is worth 56 crore rupees. This will be utilized to meet long-term working capital needs as well as other corporate needs. The promoters are given a sale offer for the remaining 675 crores. The issue opens on July 28, 2021, and will close on July 30, 2021. The issue is priced at 880 to 900 per equity share.

The IPO allocation is as follows:

About 50 per cent is kept for Qualified Institutional Buyers,15 per cent for non-institutional buyers, and 35 per cent for retail investors.

Objective:

The funds obtained through the IPO will be used in the following manner:

• To support the company's long-term working capital needs as for other corporate objectives.
• Rolex Rings intends to gain from the listing of its equity shares on stock exchanges
• the improvement of its brand name among existing and future customers the establishment of a public market.
• The net proceeds would be used to support the company's day-to-day operations to the tune of Rs 45 crore.

Key details

Rolex Rings IPO details

Subscription Dates: 28 – 30 July 2021

Price Band

INR880 – 900 per share

Fresh issue

INR56 crore

Offer For Sale

7,500,000 shares (INR660 – 675 crore)

Total IPO size

INR716 – 731 crore

Minimum bid (lot size)

16 shares

Face Value

INR10 per share

Retail Allocation

35%

Listing On

NSE, BSE

Strengths:

• Among the leading forging companies in India.
• Long-standing customer relationships
• Broad product portfolio
• Manufacturing capabilities giving scalability, flexibility,
• Location advantage
• Domain experts and management team
• Experienced promoters
• Strong financial performance track record

Risks:

• The company has resulted in a CDR because of debt
• Highly reliant on the performance of India's and other nations' automotive sectors.
• Impact of the COVID-19 outbreak.
• Substantial impact on operations, revenues, financial condition, cash flows.
• the government puts more focus on the electric car segment

Financials:

• For the past two years revenue falls by 16% per year. This stands at around 619.75 crores
• The company's total assets have increased during the same time span. 796.92 crore is the total asset for FY 20-21.
• Rolex Rings made a profit of Rs 86.95 crore in the previous fiscal year, up from Rs 52.94 crore the year before.
• In 2020-21, the company's operating sales were Rs 616.36 crore, up from Rs 666 crore the previous year.
• The firm has also increased its margins, which were 9.2 per cent in FY18 and 14.1 per cent in FY21.

Recommendation:

• The casting and forging industry is anticipated to increase at a rate of 13 per cent -14 per cent, up from 5 per cent -7 per cent now, thanks to the government's attempts to revive the economy.
• Infrastructure, oil and gas, mining, railroads, and defence are all projected to make significant contributions. The company's valuations appear to be appealing, with the IPO coming at a PE of 24x, compared to the industry average PE of 47x.

Conclusion

Rolex Rings, a global vehicle parts producer, is ready to launch its public offering as the comeback gathers steam.

By investing in renewable energy, the corporation hopes to lessen its reliance on changing electricity costs and lower its carbon footprint.

The company now operates wind turbines with an installed capacity of 8.75 MW. The company is in the midst of extending its solar project capacity by 12 MW and has already placed purchase orders for the necessary equipment.

The automobile industry is slowly rebounding in 2021 after a tough ride in 2020. Auto sales are being driven by a number of factors, including the relaxation of lockout restrictions and pent-up demand.

In the Primary or the New Issue Market, new issues of securities are raised, which are issued to the public for the first time. It is used by new and present companies. The company issues new shares and debentures for gathering lengthy-time period funds. The issue of securities is made thru the prospectus.

The purchaser of new shares and debentures can also be businessmen, clients of the company, personnel of the company, current shareholders, etc.

BENEFITS

• Less Price manipulation while in comparison to the secondary market.
• There is no brokerage payment, transaction fees, etc
• Market fluctuations do not affect it
• It helps in the diversification of the portfolio
• It helps in raising capital for the companies
• Investors get the share at the same prices
• It helps in cost Reduction

KEY PLAYERS

• Corporations - They require funds to grow and run their operations
• Institutions referred to as “Buy Side” Fund Managers
• Investment Banks are referred to as the “Sell Side”
• Public Accounting Firms

FUNCTIONING OF PRIMARY MARKETS

It enables capital formation through channelizing money from personal savers into perfect productive investments. It consists of a company, an investor, and an underwriter.

The company issues IPO: The securities for the first time are issued in the primary market. This system is acknowledged as an Initial Public Offering IPO. Since the securities are bought for the first time, the primary market is recognized as the New Issue Market.

Role of the underwriter: It is a whole method of raising capital by way of promoting new stock to investors through an IPO. The underwriter then decides the sale price of the new issue of securities. The underwriter enables and monitors the new issue offering. Financial establishments such as funding banks, insurance plan companies, and so on provide underwriting services.

Investors: They are the purchasers of the new securities in the primary market

PREREQUISITES FOR INVESTORS:

• PAN Number
• Bank Account
• Demat Account

TYPES OF ISSUES

Public Offering: A public offering happens when a listed company makes an offer document. The document may be of the fresh issue of securities or an offer for sale to the public.

Rights Issue: The right Issue is when a listed company issue fresh securities to the existing shareholder. It is best suitable for companies that would like to raise capital to fund their operations or looking for better growth opportunities.

Private Placement / Preferential Issue: Private placement is basically an issue of shares or convertible securities by listed companies which is neither a right issue nor a public issue. It is an effective way for the company to raise equity capital.

ROLE AND FEATURES OF PRIMARY MARKET:

• Organization
• Underwriting
• Distribution

1) The Organization of New Issues:

There are two types of investigation that are carried out:

The preliminary investigation includes designated learning about economical, financial, legal, and technical factors to make certain the soundness of the project.

The structure of financial arrangements involves requirements and availability of promoter’s equity, equity from the public, different ratios, and overseas exchange requirements.

The service provider bankers can be banks, financial institutions, private funding firms, etc.

An essential component of the company of new shares is the information about adequacy and structure of financial arrangements.

The second feature is carried out via sponsoring institutions. They supply advisory services. The advisory carrier includes Types of issue, Thug, Pricing, Methods of issue, etc.

2) Underwriting of New Issues:

The underwriting means guaranteed buy of a targeted quantity of new issues at a fixed price. The buy may additionally be for sale to the public, for solely one’s portfolio or for each purpose. Minimum subscription is assured by using underwriters. If the issue is absolutely subscribed, no legal responsibility would be left for the underwriters.

If the underwriter fails to promote the assured quantity of shares to the public, it will have to buy the unsold shares via itself. They can be banks or economic establishments or specialized underwriting firms.

3) Distribution of New Issue:

Distribution of new issues means the sale of the stock to the public. The distribution job is finally hand over to brokers and dealers. The stock broker or dealers hold direct contact with the supreme investors.

DISADVANTAGES

• During over subscription, small investors don't get an allocation.
• Money gets locked in for a long time.
• Quite expensive
• Disclosure of information
• Decision’s take time

Last week the Indian stock market was very interesting! The reason is the Zomato IPO. Needless to say, the much-awaited IPO knocked at your door last week!

Started as Foodiebay Online Service Private Limited, in 2008 by two IIT students Deepinder Goyal and Pankaj Chaddah, the company has grown much which is now extended to 24 countries.

As per the sources, Zomato brought a revolution to the Indian stock market. An Indian startup is a leading Online Food Service Company in terms of food sold as of December 31, 2020.

The company offers business customer services mainly food delivery and dine out where customers can search and find out the location of restaurants, restaurant menu, order food delivery, make payments for the online delivery etc.

Before we move ahead, we want you to go through the complete analysis of Zomato DRHP. It will give you an idea of the company's business and financials.

In this blog, we take a dig deep into Zomato’s IPO.

Brief Profile on Zomato IPO

Zomato Ltd is a leading online food service company in India that connects restaurants, customers and delivery partners. Zomato mainly works on business to consumer segment or B2C that offers online food delivery and dining out services. It allows customers to easily search, find restaurants, reserve a table, order online food and make payments through Zomato’s mobile application.

Zomato’s other B2B or business-to-business services generate revenue from Hyper pure. It supplies high-quality ingredients and kitchen products and restaurants. Also, it enables restaurants to buy fruits, vegetables, groceries, poultry, meat, seafood and beverages.

Hyperpure has direct contact with farmers, producers, and processors to source these products.

On August 1, 2020, Zomato offered a facility called Zomato Pro, a customer loyalty program. The subscription-based program offers discounts on the best restaurants across dine out and delivery.

Due to the highly successful business model, Zomato is able to generate more revenue, which helps restaurants to drive more sales. Furthermore, the company also host Zomaland, India’s greatest food carnival that brings some of the top eateries, DJs, musicians, and stands up comedians under one roof.

Due to its vast services that spread across the world, the Zomato brand is widely recognized across India. They are widespread and recognized across India. In 2020, the company popped up in the headlines when it acquired UberEats.

Ona recent basis, the company received approval from the CCI or Competition Commission of India to acquire a 9.3% stake in Grofers, an online delivery platform.

Now, they also ventured into cloud kitchen space in which multiple brands/restaurants can prepare food for takeaway or delivery.

Facts About Zomato

As of 2020, Zomato App has been the most downloaded application under the food and drink category in India. Keeping this in mind, restaurants pay a significant amount of fees to the company so that they can be easily available on Google Playstore and iOS App store.

Now, the company has 3.89 lakh active restaurant listings and more than 1.69 lakh delivery partners. It has 15 Lakh Zomato pro members and ~ 3.2 crore monthly active users.

The members are present in more than 500 cities in India. The company's operations are also spread across 24 countries including Canada, Australia, New Zealand, United Arab Emirates. Due to its vast spreading of operations, the company has decided to start the usage of Electric vehicles (EV) for delivery by 2030.

About the IPO

The issue was publicly opened on July 14 and closed on July 16. The price of Zomato IPO per lot was fixed at Rs 72-76 per share. The fresh issue of shares (of the face value of Re 1 each) aggregates to Rs 9000 Crore.

The IPO consists of an OFS or Offer For Sale by a promoter called Info Edge India Ltd, which aggregates up to Rs 375 Crore. Investors who want to invest in the Zomato IPO, are required to go through a bidding process with minimum equity shares of 195 (1 lot). You will need a minimum of Rs 14,820 to apply for the Zomato IPO. Retail investors apply for 2,535 equity shares (13 lots).

Zomato Utilizes the Income Generated from IPOs for the following purposes:

1. It is estimated that 75% of the issue will be used for the funding of organic and inorganic initiatives.
2. 25% of the net issue will be used to meet corporate purposes.

If we look at the overall structure of the IPO then, we will get to know that Zomato firmly prioritizes its duties towards the growth of the company. At the same time, the promoters of the company will continue to hold a fixed stake in the firm, which makes sense in the company’s future prospectus.

Financial Performance of Zomato IPO

FY 2018FY 2019FY 2020Revenue487.01,397.72,742.7Expenses594.03,607.95,006.3Comprehensive Income-104.1-1013.1-2,362.8Margin %-21.4-72.5-86.1

Risk Factors of Zomato IPO

One of the primary risk factors in Zomato DRHP is:

Zomato has seen exponential growth over the years. However, the company said that it may not be able to sustain its historical growth rate. At the same time, its historical performance may not depend on its future growth and financial results.

The company has experienced huge losses in the past few years. It expects a rise in costs and losses in the future.

The financial performance and operations of the company could be adversely affected if they are unable to increase revenue, growth and maintain cash flows.

The COVID 19 pandemic has impacted the company’s online food ordering business to a greater extent. It has been seen that many restaurants were temporarily closed due to heavy lockdown.

Zomato’s business would be negatively affected if they fail to retain the existing restaurant partners or food delivery partners.

The Bottom Line

Zomato’s IPO is heavily subscribed by the HNI and retail investors on the launching of its first day. This is because it is a brand that everyone loves, admires and depends on. As per the interview, Zomato delivery partners gave us a satisfactory note that they are happy with Zomato’s perks and remuneration.

Because of its oversubscription and GMP (Grey Market Premium), investors of the IPO received huge benefits through listing gains.

Applying for an IPO is quite subjective and if you are planning to buy Zomato’s shares, don't’ forget to check all the pros and cons.