Investors marked a heavy decline in venture funding especially in the 3rd week of July. This is because the week saw other activities such as SME IPO launching, M&A acquisition and global companies that were seeking interest in other major companies.

The 3rd week of July saw a major decline in venture capital funding as the total cost of funding went up to $209 million across 29 deals while in the previous week, the VC funding amounted to $ 847 million.

Also, the startup ecosystem has witnessed many renowned companies that are quite famous among Indian citizens. Here, we are talking about the much-awaited food tech Zomato’s IPO.

Other companies that the investors are witnessing are global logistic giant FedEx which has recently invested in Delhivery while Google; a search engine giant also invested in Slang labs. Oyo Rooms also raised $ 600 million in debt.

In this year, 21 Indian startups entered the unicorn club in 2021. Apart from food tech giant Zomato, there are other startups too who witnessed the first healthcare, social commerce, crypto and pharmacy unicorn this year.

Moreover, there are eight startups are also in line which entered the unicorn club in April 2021. These are Fintech Startup CRED, Sharechat, Social media Startup Meesho, Wealth management company Groww, messaging platform Gupshup.

Key Highlights

News aggregator app Inshorts raised $60 million in funding with participation from existing investors.

Online storytelling app Pratilipi also witnessed that it raised $ 48 million in funding led by Krafton Inc, a South Korean gaming company.

Social e-commerce platform Trell also raised a capital of $ 45 million which is led by MIRAE Asset, LB investment and H&M Group.

Real estate startup Square Yards raised $25 million in growth financing from ADM capital.

Company Investors Total Amount Raised News Aggregator Inshorts $60 Million Online Story telling Pratilipi $48 Million Social E-commerce Trell $45 Million Real Estate Square Yards$ 25 Million

Other Transactions

• Tech Startup One code raised $ 5 million led by Sequoia Capital India’s surge and Nexus Venture Partners.
• Aquaconnect, the fisheries focused startup, raised $ 4 million from Rebright Partners and Flourish Ventures.
• Ati Motors, an all-electric autonomous industrial vehicle maker, raised $3.5 million from Exfinity Venture Partners.
• Pankhuri, a women social community platform, raised $ 3.2 million from Taurus Ventures.
• Edtech Startup Oliveboard raised a whopping amount of Rs 23 Crore from Yukti Securities, Education Catalyst Fund.
• Spacetech startup Dirgantara raised $2.5 million as part of its seed funding from Kalaari Capital.
• Financial Education Startup Kredent Infoedge raised Rs 10 Crore capital from Kotak Securities.
• Blockchain Startup Archana Network raised $ 375000 in a seed round from a group of angel investors.
• LDU (Lets Dress Up) raised $ 300000 from Titan Capital and other groups of investors.
• Education Technology Startup Little Leap raised $ 3,60,000 by Ah Ventures, First Cheque VC.
• Data Technology Startup Sapio Analytics raised $ 15,0000 from Parthiv Group of Companies.
• WorkSpace Startup BHyve raised a whooping capital of $ 300000 from JITO Angel Network, LETS Venture etc.

In addition to this, The Ayurveda Company, SMOOR, UrbanKisaan and Indienergy raised an undisclosed amount of funding last month.

India Connect

M Power Financing raised $100 million through venture capital. The company provides education loans for the students who study in North America.

Bookee, a SAAS startup, raised undisclosed capital from angel investors. The company primarily focuses on the fitness industry.

Multiplier, an HR tech startup raised $4 million in funding led by India’s Surge and other investors.

AI Startup Netradyne raised capital of $ 150 million from the Softbank Vision Fund and other investors.

M&A (Merger & Acquisition)

Edtech unicorn Vedantu also seeks to acquire a majority of stakes in Pedagogy; an e-learning platform.

Trentar acquired a 75% stake in GarudaUAV; a Noida based drone service provider.

Entry Valuation

Last month Elevation and Sequoia raised a capital of $38 million in Fampay, a banking startup for youngsters primarily teenagers. It was considered as one of the largest startups in India’s startup history whose company valuation services went up to $150-170 million for a company that has yet to make any revenue.

Now the question arises: Was the whole deal expensive? Yes, of course. Despite knowing all the risks, Elevation invested in Fampay because they think that the founders are two years ahead of anyone else in the market.

If at an early stage, you are predicting a multi-billion dollar outcome, the entry valuation costs hardly matter, said a person close to the firm.

On 25 December 2020, numerous VCs, founders etc went on a break after the arrival of COVID 1st wave.

During those panic times, partners at Accel and Sequoia have kept their operations of finalizing terms to invest in Powerplay.

They need not have shown that type of hustle in the normal market. They know the market is quite volatile where you have to keep yourself super fast said one of the top VCs.

Angel Investments

An angel investor is an individual who gives capital to a start-up, and in return, they expect convertible debt or ownership equity. Angel investors generally provide support for startups that are at their initial stages and when most investors are not prepared to back them.

Nowadays, a small but increasing number of angel investors invest online through trading crowdfunding as well as to provide advice to their portfolio companies.

VC firms are also enquiring about their portfolio founders’ angel investors which are made in early-stage startups. They keep an eye on all the startups as VCs don’t want to see a single company.

The speed of making deals has increased as the founders and investors made many calls to the investors during the pandemic.

Before the initial phase of COVID 19, physical meetings were the norm and because both the start-up members and other people wanted the comfort of in-person discussions that take time to set up and the whole discussion.

Earlier, investors used to do three calls with a founder before issuing a term sheet. However, they still do three calls but in a shorter period.

Takeaway

Startup companies who want expansion for their business growth often go for IPO launching. It is a better opportunity for companies to get recognized on equity trading platforms.

Evaluation of a company is essentially important for business owners to assess both opportunity and opportunity costs as it helps them to identify the strength and weaknesses of the reviewed company.

Just like AGRIDEX, NCDEX had launched another price based index named GUAREX which is mainly based on the price movements of Guarseed and Gurugum where the weights are 63.43% and 36.57% respectively.

Guar (Cyamopsis tetragonoloba) is a leguminous crop, which grows best in sandy soils and needs moderate, intermittent rainfall. It is a hardy, drought-resistant bush and is sown after the first monsoon showers between the second half of July and early August.

Guar gum is used as a thickening and binding agent in the food, textile, paper, pharmaceutical and oil industries.

Highly refined guar gum is used in the food industry as a stabilizer in ice creams, as a meat binder and a stabilizer for cheeses, instant puddings and whipped cream substitutes.

Guar gum is used in industrial applications including cloth and paper manufacture, oil well drilling, explosives, ore flotation, and many other applications.

India is the major producer of Guar as it produces almost 80% of the world’s total production where Rajasthan contributes the highest almost 70-80% of the total production of India.

GUAREX index is a real-time commodity futures price index as it is designed to provide exposure to market participants who are dealing in guar complexes. This index will act as an important hedging tool as it will help in diversifying the positions.

BENEFITS:

• Cash settlement
• Very little margin is required compared to the underlying
• Low transaction cost
• Steady returns
• SEBI has now allowed the benefit in Commodity Index futures
• Multiple entries and exit points

CONTRACT SPECIFICATIONS:

• LOT SIZE - 100 UNITS

The much-awaited IPO of the largest insurance company will be coming at the end of the current financial year. This can only be done after the government finishes the process of disinvestment of at least three PSUs.

As per the economic time’s reports, three companies National Fertilizers Limited, Mishra Dhatu Nigam Limited and Rashtriya Chemical and Fertilizers Limited will get divested through a simpler method called to offer for sale or OFS before the launching of LIC IPO.

A senior finance ministry official has declared that the LIC’s IPO will hit the market in the next year, adding that other issues will be completed before all necessary applications are in place.

It may be noted that LIC had got principle approval from the cabinet committee on the economic affairs before the launching of LIC IPO.

As per the news source, it is estimated that the 10% stake sale of LIC would generate a whopping amount of Rs 1 Crore to 1.5 Crore. To launch the LIC IPO, the government has already started working towards strategic disinvestment in major companies such as Air India and BPCL.

The price band of LIC IPO is estimated at Rs 400-600 shares taking into account total capital and valuation. The paid-up capital is reported as Rs 25000 Crore while the total valuation of the IPO would be between 10 -15 Lakh Crore.

Strength of LIC IPO

• The company offers several life insurance plans, money back plans, term life insurance plans, endowment plans.
• As per the LIC annual report of 2019-2020, LIC occupied a market share of 69% in the life insurance space.
• LIC is also involved in other businesses such as LIC Housing Finance, LIC Pension Fund, LIC Mutual Fund, LIC Cards Services.

How Investors Likely Get Benefit from the LIC IPO

LIC policyholders who have brought over 28.9 crore policies have now got reason to be amazed. This is because the government has decided to allocate a 10% of the issue size for LIC policyholders. Also, they would receive a fair discount on the floor price.

Rules Set by LIC on Such Reservations

Life Insurance Corporation Rules of 2021 said that any reservation made by the corporation in favor of its policyholders on a competitive basis on a public issue should be made in a manner similar to that applicable to a reservation on a competitive basis for employees in a public issue under any regulation made and issued by Security Exchange Board of India.

However, if any company made an allotment of equity shareholders against any reservation made in their favor should be done in consultation with the stock exchanges.

As per the IPO norms, an issuer company offers shares to its employees with a maximum discount of 10% at which the shares are offered to other categories.

Disinvestment of equity shares has recently been approved by the Union Cabinet minister.

Also, they allow merchant bankers to launch their IPOs. The lot size of LIC shares will decide the finance ministry and in conversation with the Finance minister Nirmala Sitaraman, a panel has decided that it will take full responsibility for the size share of LIC IPO.

For the upcoming LIC IPO, the government has decided to amend the LIC Act of 1956. To get the IPO launched, LIC has appointed Arijit Basu. After the amendment, the corporation is now governed by the Companies Act and SEBI Act in order to prepare its quarterly balance sheet with P&L and make public-key developments.

How will Policyholders Benefit?

Even if the government offers a 10% discount to LIC policyholders, the post-issue market capitalization of LIC would go up to Rs 15 lakh Crore valuation once the valuation gets known. According to the new SEBI rule, for a 10 lakh Crore market capitalization, LIC will have to make an issue of Rs 55000 Crore (Rs 10,000 Crore plus 5% of Rs 9 lakh Crore)

Many investors think that LIC policyholders would get less bonus after launching its IPO. However, this is not so true. The sources said that LIC will find new ways to offer the same bonus.

The main concern of LIC is the pricing of the issue. If we look at the past then we get to know that two general insurance companies - General Insurance Corporation of India and New India Assurance Co Limited which were listed in 2017, are now trading at Rs 174.60 and Rs 161.

Why is the LIC IPO matter for the Government?

Since the GOI performed disinvestment of two major companies, it is very important for the government to meet its disinvestment target especially at the time when the government plans to make two PSB banks a privatized banks and one insurance firm.

The government’s main objective is to mop up Rs 1.75 Lakh Crore in the current fiscal from privatization. Out of this, Rs 1.75 Lakh Crore is supposed to come up from selling its share in public sector banks and other financial institutions, while Rs 75000 Crore comes as a CPSE disinvestment receipt.

Why Should Investors Look Forward to It?

According to investors, the LIC IPO will be a turning point for many as the largest life issuers company is all set to launch its IPO for the very first time. Also, LIC covers a total market share of 66% with the first-year premium of Rs 1.84 Lakh Crore. The company has 2.9 lakh employees with a network of 22.78 lakh agents.

As per the internal source, if the 22 lakh agents sell only one extra policy to the people, it will make a huge volume. Apart from it, LIC is considered the biggest institutional investor in India and has a huge investment portfolio that can generate outstanding returns in the future.

A marginal per employee business productivity improvement every year is quite more than the few sized insurance firms; according to a stock market trading expert.

Takeaway

Life Insurance Corporation is a top-notch insurance company that offers many insurance covers to people. The company is known for providing high term benefits to its shareholders.

Also, LIC provides maturity benefits to its shareholders which means if a policyholder completes the maturity of the policy, he/she will receive 40% of the basic sum assured added with bonus and extra bonus.

Now, the company is all set to launch its IPO which will provide many benefits to its shareholders and other investors. Don’t miss out on a chance to subscribe to the LIC IPO.

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।

Gold has a great economic, aesthetic and emotional value that transcends national boundaries and time. Gold is a diversified tool for traditional assets and alternative assets and is considered a tool for hedging market risks.

This is the reason why the central bank has increased its gold reserves since 2008, which currently account for a large part of the annual demand for gold.

Two Main Factors Leading to this Phenomenon:

Implementation of the Central Bank Gold Agreement (1999) and renewal (2014) and The diversification of gold and foreign exchange reserves by central banks in emerging markets since the financial crisis.

Worldwide, the gold enjoys a reputation of being a safe-haven asset during periods of market instability and geopolitical uncertainty.

1. United States of America: 8,133.5 tons of gold

The United States is still the largest gold reserve, the gold represents more than 75% of its foreign exchange reserves decades before at the height of the Britton Woods system when the United States offered to exchange US dollars for gold in other countries, it was reported that between 90% and 95% of the world's gold reserves were stored in US vaults.

2. Germany: 3362.4 tons of gold

German gold reserves are stored in the German Federal Bank in Frankfurt am Main, that is, the Federal Reserve of the United States, the bank's New York branch and the Bank of England in London.

Germany completed a four-year repatriation operation in 2017, returning 674 tons of gold from the Bank of France and the Federal Reserve Bank of New York to its own vault.

3. Italy: 2,451.8 tons of gold

Ranked fourth in the world with 2,451.8 tons. As a percentage of foreign exchange reserves, gold dominates the Italian investment portfolio, accounting for 70.8%.

4. France: 2,436.0 tons of gold.

The Bank of France vault in Paris is considered to be one of the four designated depository institutions of the International Monetary Fund.

The Central Bank of France has hardly sold gold in recent years. The current reserve includes 100 tons of gold coins and the rest are gold bars, each weighing approximately 12.5 kilograms.

5. Russian Federation: 2292.5 tons of gold

As its global economic ambitions grow, Russia continues to buy gold. Russia has a population of 142 million and a GDP of $ 1.85 trillion, and its gold holdings may grow.

The World Gold Council reports that Russia has added more gold, so reserves may increase again. Previous data show that Russia had purchased tons of gold. it is moving towards becoming an economic superpower.

6. China: 1948.3 tons of gold

An interesting fact about China's gold is, if distributed equally, every 17 people in China will have 1 ounce of gold. The People's Republic of China attaches great importance to the intrinsic value of gold and its reserves are believed to be approximately 1948.3 tones.

7. Switzerland: 1040 tons of gold

Switzerland is known for its banking, tax exemption and geopolitical neutrality. Although was plagued by rumors of gold theft by the Nazis at the end of World War II, Switzerland has a reputation for financial expertise and the promotion of international trade.

8. Japan: 846 tons of gold

Japan is the world's third-largest economy and the eighth largest gold hoarding country. Its central bank has always been one of the most active practitioners of quantitative easing. In January 2016, it lowered interest rates to below zero, which helped boost global demand for gold.

9. India: 705 tons of gold

India has been a stable buyer of gold. Since the government needs to back its currency, this situation can continue even if the economy is unstable.

India became an active buyer in 2009 when it spent nearly $ 7 billion to buy 200 tons of gold, and the IMF sold the gold to raise funds. For the economy to support 1.2 billion people, the central bank must have gold and hard assets.

The Indian population is a large consumer of gold for jewellery and there is a great demand for precious metals that are used to store wealth. Therefore, India will continue to buy gold in the coming years.

10. Netherlands: 612.5 tons of gold

The Central Bank of the Netherlands bank recently repatriated a large amount of gold from the US announced the transfer of its treasury from Amsterdam to the New Amsterdam camp, approximately an hour's drive from the city, citing the heavy burden of its current location security measures.

Contemporary countries might have stayed quiet away from the gold standard, but most central banks still hold gold reserves. The reason is simple; gold is the most accepted currency everywhere. Gold serves Gold helps support the intrinsic value of currencies by setting a lower cap on the valuation of global markets.

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.