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India’s insurance sector has been at the center of policy reforms in recent years, aiming to improve financial inclusion and make risk protection more affordable. The latest discussion revolves around removing Goods and Services Tax (GST) on health and life insurance premiums. On the surface, this may look like a boon for customers. But beneath the surface, the implications are more complex—for insurers, the financial markets, and even long-term policyholders.
Currently, insurance premiums in India attract an 18% GST (except a few segments like certain micro-insurance products). For example:
Removing GST would reduce the immediate outflow for customers. However, insurers today enjoy input tax credit (ITC) on GST paid for their services, technology, and operations. If GST is removed, insurers lose this credit and may face higher net costs.
At first glance, policyholders save money upfront. A ₹25,000 health insurance policy would cost exactly₹25,000 instead of ₹29,500 (with GST). This reduction could encourage more people, especially in middle-income households, to purchase insurance.
However, if insurers pass on their increased operational costs due to loss of ITC, premiums could rise in the medium term. Customers may face:
For insurers, this move is a double-edged sword. On one side, the industry can promote insurance as more affordable and expand penetration. On the other side, companies may face-
This could also trigger industry consolidation, with stronger players leveraging technology and scale to offset costs.
India’s stock markets are highly sensitive to regulatory shifts, and insurance companies are a key part of the financial services sector indices (Nifty Financial Services, Nifty 50 in case of HDFC Life, SBI Life, ICICI Prudential).
For investors, GST exemption means:
Example: If SBI Life manages to offset ITC loss through its wide distribution and bancassurance tie-ups, it could sustain margins better than smaller peers.
The GST Council and Insurance Regulatory and Development Authority of India (IRDAI) both play a role in shaping this decision.
This reform aligns with the government’s larger push toward “Insurance for All by 2047”.
For investors trying to under stand the bigger picture, navigating the insurance sector’s dynamics requires research-backed insights.
At Swastika Investmart (SEBI Registered Research Analyst), we provide:
Q1. Will customers really save money if GST is removed from insurance premiums?
Yes, initially premiums will appear cheaper, but insurers may increase base premiums later due to higher operating costs.
Q2. How will this affect listed insurance companies like HDFC Life or SBI Life?
They may face margin pressure in the short term, but companies with scale and strong distribution can manage better.
Q3. Is this reform final?
Not yet. The GST Council has proposed it, but final implementation depends on government approval.
Q4. Will this boost insurance penetration in India?
Yes, lower upfront costs could encourage more middle-class families to buy insurance, supporting long-term penetration goals.
Q5. What should investors do?
Investors should monitor quarterly results of insurance companies and track how each adapts to regulatory shifts before making decisions.
The idea of insurance premiums without GST sounds appealing to customers, but the story is more nuanced. While households may save upfront, insurers could face margin pressures, potentially leading to higher premiums in the future. For investors, this is acritical policy shift that can reshape stock valuations in the financial services sector.
As the sector evolves, staying informed and guided by expert research is essential. With Swastika Investmart, you get trusted insights, tech-enabled investing tools, and dedicated support to help you make better financial decisions.
RatingSUSBCRIBE (Only Aggressive Investors)Issue OfferIssue Opens on Dec 08, 2021Issue Close on Dec 10, 2021Total IPO size (cr) 600Fresh issue 250Offer For Sale (cr) 350Price Band (INR) 113-118Market Lot 125Face Value (INR) 10Retail Allocation 10%Listing On NSE, BSEObjects of the issue ⮚ For repayment of borrowings. ⮚ For general corporate purposes.Issue Break-up (%)QIB Portion 75NIB Portion 15Retail Portion 10⮚ Shareholding (No. of Shares)Pre Issue 148,411,448Post Issue 169,597,889Indicative TimetableFinalisation of Basis of Allotment 15-12-2021Refunds/Unblocking ASBA Fund 16-12-2021Credit of equity shares to DP A/c 17-12-2021Trading commences 20-12-2021
The company's financials have been on a weaker note where revenues of the company are declining while the company turned loss-making since FY20. The company's revenues in FY19 were Rs. 723 cr, which fell to Rs 501 cr in FY21, while it made a profit of Rs 48 cr in FY19 and a loss of Rs 67 cr in FY21.
Despite strong brand recognition, the company has suffered losses during the COVID, when real estate and housing were booming. Being a loss-making company retail portion is 10%.
The SME IPO is arriving at a P/BV of 2.09x while the industry average is 3.69x which might attract minor listing gain. However, we believe that there are many reputable listed companies such as Sobha, Brigade, Prestige, etc., and only "AGGRESSIVE INVESTORS" should apply for the IPO.
SHRIRAM PROPERTIES LIMITED
⮚ M. Murali is the Chairman and Managing Director and individual Promoter of the Company. He has over 17 years of work experience with this Company and was first appointed as a Director on March 30, 2003.
⮚ S. Natarajan is a Non-Executive Director of the Company.
He is a member of the Institute of Chartered Accountants of India since 1975. He has been associated with the Shriram group for over 17 years and has been a Director of the Company since March 30, 2003.
⮚ Raphael Dawson is a Non-Executive Nominee Director of the Company. He has more than 15 years of work experience.
⮚ Gautham Radhakrishnan is a Non-Executive Nominee Director of the Company. His career has been exclusively in private equity and corporate finance.
⮚ T.S. Vijayan is an Independent Director of the Company. He has many years of experience in the insurance sector and was formerly the Chairman of the Life Insurance Corporation of India.
⮚ K.G. Krishnamurthy is an Independent Director of the Company. He has over 38 years of experience in the real estate sector.
⮚ Anita Kapur is an Independent Director of the Company. She has been a director of the Company since November 14, 2018.
⮚ Professor R. Vaidyanathan is an Independent Director of the Company. He has been a director of the Company since December 13, 2018.
⮚ Part of the Shriram Group and Backed by Marquee Investors.
⮚ One of the Leading Residential Real Estate Development Companies in South India with a Focus on Mid-market and Affordable Housing Categories.
⮚ Demonstrated Capabilities in Project Identification and Strong Execution Track Record
⮚ Established Strategic Relationships
⮚ Scalable and Asset Light Business Model supported by our Strong Financial Position
⮚ Well Positioned to Benefit from Regulatory and Industry Developments
⮚ Experienced and Professional Management Team
⮚ The company has strong, proven capabilities in the identification and execution of projects.
⮚ Their business is capital intensive and is significantly dependent on the availability of real estate financing in India.
⮚ Shortages or disruption in the supply of labor and key building materials could affect the estimated construction cost and timelines.
⮚ They depend on landowners or developers for obtaining certain regulatory approvals for the development management business any failure in that may adversely affect the business.
⮚ The Indian real estate sector is heavily regulated. Changing laws, rules and regulations and legal uncertainties.
⮚ An increase in competition in the Indian real estate sector may adversely affect profitability.
⮚ The company has a significant amount of debt which could affect its ability to obtain future financing or pursue its growth strategy.
SHRIRAM PROPERTIES LIMITED
COMPARISON WITH LISTED INDUSTRY PEERS
Name of the Company EPS (Basic) NAV P/E P/BV Total Income (mn)c Shriram Properties Limited (4.60) 56.44 - 2.09 5,013.08 Peer Group Sobha Limited 6.57 255.97 133.13 3.32 21,904.00Prestige Estates Projects Limited 36.32 166.52 12.86 2.68 75,018.00Brigade Enterprises Limited (2.24) 111.32 - 4.08 20,103.90Godrej Properties Limited (7.48) 299.32 - 6.70 13,330.90Oberoi Realty Limited 20.33 257.68 45.29 3.24 20,905.87Sunteck Realty Limited 2.98 19.75 160.64 2.28 6,308.42
FINANCIALS (RESTATED CONSOLIDATED)
Particulars (Rs. In Millions) FY 2021 FY 2020 FY 2019Equity Share Capital 1,481.10 1,481.10 1,481.10Other Equity 6,791.78 7,459.82 8,215.10 Net Worth 8,272.88 8,940.92 9,696.20Total Borrowings 7,271.69 7,372.47 8,456.65 Revenue from Operations 5,013.08 6, 318.43 7,237.80 EBITDA 1,210.53 904.14 799.30Profit Before Tax (452.00) (816.58) 829.21 Net Profit for the year (674.80) (864.25) 480.62
In this Blog, we will discuss the Impact of FIIs Selling. In the last few days, foreign investors have sold sharply in the Indian stock market. They have withdrawn more than 17,000 crore rupees in just 5 days. Experts say investors have a good chance of buying every fall.
The Indian stock market has been declining for the past month. Experts say the selling round may continue next month. However, FIIs are expected to return in the new year. Since then the market has been in a downward trend. it has fallen to 58680 levels. The Sensex has lost 3581 points.
According to information on SEBI's website, foreign investors sold for Rs 17900 crore in November. 87,000 crore has been withdrawn from the Indian stock market since the current financial year i.e. April 1.
On the other hand, domestic investors have made purchases worth Rs 13,000 crore in November. While shares worth Rs 69,000 crore have been purchased this fiscal.
Stock market experts said that the US is the main reason for foreign investors withdrawing money from India.
In the First place, experts revealed that the US central bank, the Federal Reserve, had given a relief package to bail out the economy from the corona. Under this package, the amount was directly received by the general public. Many more steps were taken for the economy at that time.
Secondly, those relief steps are set to be withdrawn. One of these is the decision on the interest rate. next month the US the central bank could raise federal reserve interest rates. In such a situation, the Indian markets will not be very beneficial for investing money.
The U.S. dollar will rise. This will increase the weakness in the rupee. That's why investors are returning to the U.S. markets. benchmark US 10-year treasury yields rose sharply, reducing the yield gap between the US and India.
Now, the situation is like FIIs are relocating their assets to the United States because of the dollar's strength over other currencies. This permits homegrown financial investors to buy Indian equities at a flexible discount, bringing about the inconsistency between DII inflows and FII outflows.
All through this fiscal year, the Federal Reserve has been out of a way for the clearing post-pandemic time, remembering a decrease for bond buys.
At last, US 10-year depository yields expanded all the more quickly, shutting the yield divergence between the US and India. This caused FIIs to pull out certain funds, while domestic investors maintained their positions very well, another analyst said.
Many stock market research analysts said that small investors have a good chance of buying Indian stocks. Hence, it would be the right decision to invest money in the shares of banking and financial companies.
The US has a 34 per cent stake in foreign investors investing money in India. it is followed by Mauritius (11 per cent), Singapore (8.8 per cent), Luxembourg (8.6 per cent), Britain (5.3 per cent), Ireland (4 percent), Canada (3.4 per cent), Japan (2.8 per cent) and Norway and the Netherlands (2.4 per cent).
These 10 countries hold 83 per cent of Indian FPI investment. Coming to equity trading investment, the US accounts for 37 per cent, followed by Mauritius with 11 per cent. Singapore (29 per cent) tops debt investment and Luxembourg (11 per cent) is second.
Authorities on the matter agree worldwide that the move would diminish interest rates dissimilarity between the US and developing business markets like India, making them less appealing compared to others.
सोने और चांदी के भाव में पिछले सप्ताह भी गिरावट दर्ज की गई है। कीमती धातुओं के भाव कोरोना वायरस के नए संस्करण ओमीक्रॉन आने के कारण निचले स्तरों पर सपोर्ट लेते दिखे और एक सीमित दायरे में रहे। साउथ अफ्रीका में बदले हुए वायरस के इस रूप के कारण निवेशक जोखिम भरी संपत्ति में निवेश से पीछे हटते दिखे।
वायरस के नए संस्करण का फैलाव कई देशो में हो चुका है और इसके बढ़ते प्रभाव के कारण कीमती धातुओं की मांग मजबूत होने की सम्भावना बढ़ने लगी है। भारत में भी ओमीक्रॉन के मामले मिल चुके है और प्रभावितो की कोई ट्रेवल हिस्ट्री नहीं थी जिससे यह अनुमान है की इसके फैलने की गति तेज़ है। आने वाले दिनों में वायरस का प्रभाव बढ़ता है तो यह सोने के भाव को सपोर्ट कर सकता है। अभी इसके कोई ज्यादा घातक परिणाम सामने नहीं आये है लेकिन यह अर्थव्यवस्था की गति को धीमा करने में सक्षम है जिसके कारण कीमती धातुओं में निवेश की मांग बढ़ सकती है।
जबकि अमेरिकी फेड के इन संकेतो से कि मुद्रास्फीति के दबाव को कम करने के लिए उम्मीद से पहले परिसंपत्ति की कमी और ब्याज दरों में वृद्धि की गति को तेज करेगा, जिससे सोने और चांदी के भाव में दबाव बना हुआ है। इस बीच, गुरुवार को जारी अमेरिकी आंकड़ों से पता चला है कि पूरे सप्ताह में 222,000 प्रारंभिक बेरोजगार दावे दायर किए गए, जो अनुमान से बेहतर रहे।
जबकि अमेरिकी नॉनफार्म एम्प्लॉयमेंट चेंज के आंकड़े अनुमान से कमजोर दर्ज किये गए जिससे सोने और चांदी के भाव को सपोर्ट मिला है। सोने के विपरीत चलने वाला, डॉलर में अभी मजबूती बनी हुई है जबकि अमेरिकी बॉन्ड यील्ड में अस्थिरता है। इस सप्ताह मुद्रास्फीति के आंकड़े कीमती धातुओं के लिए महत्वपूर्ण होंगे।
इस सप्ताह सोने और चांदी के भाव सीमित दायरे में रह सकते है। फ़रवरी वायदा सोने में 47000 रुपए पर सपोर्ट और 48600 रुपए पर प्रतिरोध है। मार्च वायदा चांदी में 59800 रुपए पर सपोर्ट और 62700 रुपए पर प्रतिरोध है।
IPO Note : RATEGAIN TRAVEL TECHNOLOGIES LTD.
⮚ Bhanu Chopra is the Chairman and Managing Director of the Company. He is also one of the Promoters of the Company and has been a member of the company’s Board since incorporation. He is an entrepreneur with experience of over 15 years.
⮚ Megha Chopra is an Executive Director of the Company. She is also one of the Promoters of the Company and has been a member of the Company’s Board since incorporation. Prior to her directorship in this Company, she was associated with HCL Infosystems Limited.
⮚ Nishant Kanuru Rao is a Non-Executive Nominee Director of the Company. Currently, he is a partner at Avataar Venture Partners, which was founded by him in 2019.
⮚ Girish Paman Vanvari is an Independent Director of the Company. He was appointed to the Board of the Company on June 29, 2021.
Previously, he has been associated with KPMG, India as the national head of tax. Currently, he is a partner at Transaction Square, which was founded by him in 2018.
⮚ Aditi Gupta is an Independent Director of the Company. She was appointed to the Board of the Company on July 15, 2021. She has experience of over 10 years as a company secretary.
⮚ EC Rajakumar Konduru is an Independent Director of the Company. He was appointed to the Board of the Company on July 15, 2021. He is a venture capitalist with an experience of over 13 years in equity investments.
⮚ Marquee global customers with long-term relationships
⮚ Innovative AI-driven industry-relevant SaaS solutions.
⮚ Diverse and comprehensive portfolio of revenue maximization and business-critical solutions
⮚ Strong financial performance with a track record of successful acceleration post acquisitions
⮚ Strong Global and diverse management team with relevant technology and domain expertise and focus on employee welfare
⮚ New product development capabilities.
⮚ Continue to scale DaaS and Distribution offerings through cross-selling and geographical expansion in existing and adjacent verticals
⮚ Focus on MarTech solutions for the hospitality and travel sector
⮚ Continue to leverage unique data assets to create new AI product offerings
⮚ Pursue strategic investment and acquisition opportunities
⮚ The company is running at a loss for the last two financial years.
⮚ The hotel and travel industry has suffered a lot due to the COVID epidemic.
⮚ The activities of a small number of marketplaces account for a substantial percentage of their revenue.
⮚ Exchange rate changes may negatively affect their results of operations.
⮚ Failure to defend their intellectual property rights may have a negative impact on their business and brand
⮚ Failure to deliver excellent customer service and assistance may have a negative impact on their existing client relationships.
COMPARISON WITH LISTED INDUSTRY PEERS
There are no listed companies in India that engage in a business similar to that of the Company. Accordingly, it is not possible to provide an industry comparison in relation to the Company
FINANCIALS (RESTATED CONSOLIDATED)
Particulars (Rs. In Millions) FY 2021 FY 2020 FY 2019Equity Share Capital 6.55 6.55 6.55Instrument entirely equity in nature 1.48 0.85 0.85Other Equity 2,441.18 1,369.84 1,424.89Net Worth 2449.21 1377.24 1432.29Total Borrowings 1117.93 1158.08 244.19Revenue from Operations 2,507.93 3,987.14 2,615.74EBITDA 194.57 338.59 328.84Profit Before Tax (246.28) (177.62) 94.87Net Profit for the year (285.75) (201.04) 110.34
Mutual funds have emerged as a popular investment option for people looking to grow their wealth. They offer the benefit of professional management, diversification, and the potential for attractive returns. Whether you’re a beginner or an experienced investor, understanding the various types of mutual funds can help you make insightful decisions that align with your financial goals.
In this guide, we’ll explore the different types of mutual funds based on asset class, investment goals, risk appetite, and other factors.
These funds also include some subcategories which we will discuss below.
Equity mutual funds are primarily focused on investing in stocks. The main objective is capital appreciation over the long term. These funds are considered high-risk, but they also offer the potential for higher returns.
Debt mutual funds invest in fixed-income instruments like bonds, debentures, government securities, and treasury bills. They are less volatile than equity funds, making them ideal for conservative investors looking for steady income rather than aggressive growth.
Hybrid mutual funds, also known as balanced funds, invest in both equity and debt instruments, offering a balanced risk-return trade-off. These funds are suitable for investors looking for moderate risk with the potential for growth as well as regular income.
Index funds replicate the performance of a specific stock market index like the Nifty 50 or the Sensex. They offer diversification and are ideal for investors looking for long-term returns without the risk of active stock picking. Since these funds are passively managed, they come with lower expense ratios compared to actively managed funds.
Exchange-Traded Funds (ETFs) are similar to index funds but are traded on the stock exchange like individual stocks. They offer the benefits of both mutual funds and direct stock trading, including diversification and liquidity. ETFs typically have lower expense ratios and can be bought or sold at any time during market hours.
Selecting the right mutual fund depends on various factors, including:
Understanding the different types of mutual funds is essential to making the right investment choices. Whether you're looking for aggressive growth through equity funds or stable returns via debt funds, there’s a mutual fund for every investor. By aligning your investment choices with your financial goals, risk tolerance, and time horizon, you can build a portfolio that helps you achieve your financial objectives.
Welcome! Today, we’re going to explore the world of bonds, a key component of the financial markets. Bonds are essentially loans made by investors to borrowers, usually corporations or governments. In return, the borrower agrees to pay interest over a specified period and repay the principal at maturity. Let's break down the different types of bonds you might encounter.
Government bonds are issued by a national government and are considered one of the safest investments since they are backed by the government's credit. In India, these are known as Government Securities (G-Secs).
Corporate bonds are issued by companies to raise capital. They typically offer higher interest rates than government bonds to compensate for the increased risk.
Municipal bonds are issued by local government bodies, such as states or municipalities, to finance public projects like schools or infrastructure. These bonds often provide tax advantages to investors.
Zero-coupon bonds do not pay periodic interest. Instead, they are issued at a discount to their face value and mature at par. The difference between the purchase price and the face value represents the investor's return.
Convertible bonds offer the option to convert the bond into a predetermined number of the company's equity shares. This feature provides potential upside if the company's stock performs well.
These bonds are designed to protect investors from inflation. The principal and interest payments are adjusted based on inflation rates, ensuring that the purchasing power of the investment is maintained.
Foreign bonds are issued in a country by a non-domestic entity and are denominated in the currency of the country where they are issued.
Bonds are a versatile investment option, offering something for every type of investor, from the risk-averse to those seeking higher returns. Whether you’re interested in the safety of government bonds or the potential growth from corporate and convertible bonds, understanding the different types of bonds can help you make more updated investment decisions.
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