OYO Files DRHP with SEBI for

 OYO Files DRHP with SEBI for IPO

 ●        OYO files DRHP to raise INR 8430 cr (~$1.2 bn^^)

●        OYO’s IPO consists 83% fresh issue (INR 7000 cr) and 17% offer for sale (INR 1430 cr)

●        OYO has improved its adjusted gross margin from 10% in FY20 to 33% in FY21

●        With over 70% of employees based in India, OYO is building products in India for the world

Global travel technology company, OYO (Oravel Stays Limited) has filed its draft red herring prospectus (DRHP) for its initial public offering (IPO) of INR 8,430 cr ($1.2bn) with the Securities and Exchange Board of India (SEBI).

Founded in 2012, OYO is a leading new-age technology platform empowering the large yet highly fragmented global hospitality ecosystem. It has been focused on reshaping the short-stay accommodation space since its incorporation and has developed a unique two-sided technology platform focused on comprehensively addressing key pain points of Patrons (being the owners, lessors and/or operators of storefronts listed on our platform) on the supply side with our flagship products like Co OYO and OYO OS, and to Customers (being travellers and guests who book storefronts on the Company’s platform) on the demand side. OYO has more than 157,000** storefronts across more than 35 countries that benefit from its platform. On the consumer side, the OYO App has been rated as the most downloaded accommodation app in Asia and third largest in the world in 2020 as per Sensor Tower.

While OYO has a global footprint, its Core Growth Markets comprise India, Indonesia, Malaysia and Europe. These are the most mature markets in terms of scale and unit economics. OYO’s share** of the total addressable market in its Core Growth Markets is less than 1%*creating significant opportunities for it to grow its footprint. As of December 2019, the company’s Total Addressable Market opportunity consisted of 54 million* short-stay storefronts. Around 88%* global hotel storefronts are in the unorganized sector, thus creating significant opportunities for OYO. The scale of OYO’s business drives a self-reinforcing flywheel underpinned by strong local network effects and operating leverage. The virtuous cycle created by this flywheel effect enhances OYO’s platform stickiness and unit economics for both OYO and its patrons with an ever-increasing scale.

 OYO’s initial public offering consists of equity shares of face value of Re. 1 each of Oravel Stays Limited aggregated up to Rs. 8,430 cr (~$1,163 million) (the “Offer”). The offer comprises a fresh issuance up to Rs. 7,000 cr (~$966 million) (the “Fresh Issue”) and an offer for sale aggregating up to Rs. 1,430 cr (~$197 million). The IPO will consist of 83% fresh issue and 17% offer for sale. The Company and its stakeholders may, in consultation with Lead Managers, consider a further issue of equity shares for cash consideration aggregating up to Rs.1,400 million (~$193 million) (the “Pre-IPO placement”). The Pre-IPO placement, if undertaken, will be at a price to be decided by the company and its stakeholders in consultation with the Lead Managers and the Pre-IPO placement will be undertaken prior to filing of the Red Herring Prospectus with the ROC.

Over the past year, the Company implemented a number of measures as a part of its COVID-19 response strategy, including accelerated development and adoption of technology and products to reduce operating costs, and repositioning its offerings. The Company also streamlined strategic and shared services functions, such as revenue management, supply, human resources, legal and finance, from country teams to regional teams to streamline processes, create more efficiencies and reduce costs. As a result of various initiatives that the Company took, its Adjusted Gross Profit Margin improved from 9.7% in Fiscal 2020 to 33.2% in Fiscal 2021 along with ~79% reduction in EBITDA losses from FY20 to FY21 despite the pandemic.

The company has an asset light business model and a lean cost structure. As of March 31, 2021, 99.9% of the company’s storefronts did not have contracts with minimum guarantees or fixed payout commitments from the company, with any investments, capital expenditure, storefront employee costs borne largely by Patrons. This enables the company to be capital-efficient and scale its business with minimal marginal costs.

OYO is able to drive the highest share of Direct-to-Consumer (D2C) channel-led demand compared to other leading traditional hotel chains in India and quite high globally**. OYO was the 3rd^ most downloaded travel app globally in 2020. With over 9.2 million subscribers just in India, OYO Wizard, is the largest loyalty program among online hotel or food brands in India.

OYO is able to ensure higher repeat rates of around 68%, in comparison to various other travel D2C players in India as well as globally*. This is driven by OYO’s wide choice of storefronts, affordability, strength in D2C channel offering and the trust it has been able to generate in the customers’ mind over time, amongst other factors. This also fuels OYO’s revenue generating capability for its patrons.

OYO aims to increase its Patrons’ revenue generation potential by providing them with access to a large Customer base through its D2C direct channels, coupled with its suite of innovative products. In India, Indonesia and Malaysia, as per Redseer study, OYO storefronts that joined the platform in 2018 and 2019, performed better* than independent hotels of similar sizes in 2019 on average. After 12 weeks of joining the OYO platform, OYO hotel storefronts generated 1.5 to 1.9* times more revenue on average compared with the average revenue estimated at an independent hotel of a similar size. In Europe, OYO home storefronts earned an average of 2.4* times more revenue compared with the average revenue estimated at an independently managed home in 2019.

With over 70% of OYOpreneurs and most of the core engineering team based out of India, OYO is building its best in class technologies and products from India for the world.

OYO has proposed/plans to use the net proceeds from the Fresh Issue towards funding the following objects: (i) Prepayment or repayment, in part, of certain borrowings availed by certain Subsidiaries; (ii) Funding organic and inorganic growth initiatives; and (iii) General corporate purposes.

Investors including Ritesh Agarwal, Lightspeed Venture Partners, Sequoia Capital, Star Virtue Investment Limited (Didi), Greenoaks Capital, AirBnB, HT Media and Microsoft are not diluting their shareholding. The offer for sale comprises of aggregate shares from a small part of SVF India (Softbank), A1 Holdings Inc. (Grab), China Lodging, and Global IVY Ventures LLP.

The Global Co-ordinators and Book Running Lead Managers to the offer are Kotak Mahindra Capital Company Limited, J.P. Morgan India Private Limited and Citigroup Global Markets India Private Limited. The Book Running Lead Managers to the offer are ICICI Securities Limited, Nomura Financial Advisory and Securities (India) Private Limited, JM Financial Limited and Deutsche Equities India Private Limited.

Metal and Mining Co., Tega Industries files for

Metal and Mining Co., Tega Industries files for its IPO

Tega Industries Limited, global leader in the design & production of consumables for the mineral beneficiation, mining & bulk solids handling industry has filed for initial public offer of Rs 700-750 crore with the market regulator, according to market sources.

 

The issue will be a complete Offer for Sale (OFS) of 1,36,69,478 Equity Shares of face value of Rs. 10 each by Promoter and Investor Selling Shareholders. Details of OFS are “Promoter Selling Shareholders” 33,14,657 Equity Shares by Madan Mohan Mohanka, up to 6,62,931 equity shares by Manish Mohanka and up to 96,91,890 by Wagner Limited, an affiliate of the US-based private equity firm TA Associates. The Company will not receive any proceeds from the Offer since it involves only the Offer for Sale.

The portion reserved for Qualified Institutional Buyers will be upto 50% of the offer, Non-Institutional Investors to have upto 15% of the portion reserved while upto 35% will be reserved for the Retail Investors. The Equity Shares offered are proposed to be listed on the BSE & NSE Stock Exchanges.

 

Headquartered in Kolkata, India, Tega offers a range of abrasion and wear resistant products and services required for mining, mineral processing, screening, grinding, material handling and beneficiation of minerals. Tega’s philosophy is to uphold traditional values through the empowerment of professionals, providing technical and economically unrivalled solutions to complex problems in mining, beneficiation, power, material handling and engineering.

 

Between FY19 to FY21, it’s Earnings before interest, tax, depreciation and amortization (EBITDA) has grown at a CAGR of 50.04% and Return on capital employed has almost doubled.

 

As per the F&S Report quoted in the DRHP, Globally, it is the second largest producers of polymer-based mill liners in terms of revenues for calendar year 2020, in a near oligopolistic market structure. Present across the value chain of a mineral processing site, providing a wide range of products and solutions for processing across different stages of mineral processing.

 

With an extensive global footprint in over 70 countries, Tega’s focus end-customers are mineral processing sites involved in gold and copper ore beneficiation accounting for 34.92 % and 27.25 % respectively, of its revenue from sale of products. It has manufacturing operations at Dahej in Gujarat and at Samali and Kalyani in West Bengal, and our international manufacturing operations are in proximity to the world’s major copper and gold mining locations in Chile, South Africa and Australia, with a total built-up area of 74255 Sq. mts.

 

Additionally, its DRHP states, despite some volatility in capital expenditure cycles for gold and copper mining sites, our business was not impacted, as a majority of our products were linked to the operating expenditure budget of a mining site and not capital expenditure.

 

Investment Bankers appointed to the issue are Axis Capital Limited, JM Financial Limited and Link Intime India Private Limited is the registrar to the offer.

Paytm’s devices from PoS, to All-in-One QR code to Soundbox

 Paytm’s devices — from PoS, to All-in-One QR code to Soundbox — have helped the company grow its popularity with merchants

 

 

India’s leading digital payments and financial services platform Paytm has filed its DRHP on 15^th July 2021, for its $2.2 billion IPO, which is set to be the largest market debut in India.

The company’s prospectus shares a lot of insights into how the company is building India’s largest financial services platform. And a big part of that is its focus on merchants.

 

Paytm has on-boarded over 21.1 million merchants on its platform as of FY21 — growing rapidly from 11.2 million in FY19 to 16.3 million in FY20.

As per its DRHP, these are Paytm’s top offerings for merchants “, (i) a full suite of payment services, and (ii) technology solutions to grow their businesses and our share of their payments.” 

In line with the same, Paytm offers a suite of devices to merchants that makes payments easier for them.In fact, Paytm is the pioneer of QR code-based payment method for in-store merchants, being the first company to have launched QR payments for in-store merchants in India in 2015, according to RedSeer. 

 

QR codes allow small shopkeepers to accept digital payments at zero upfront cost, and at zero MDR, without needing access to the internet or paying for a POS machine.

 

The company said in its DRHP that it launched the All-in-One QR Code in January 2020, which gives merchants the power to seamlessly accept payments from multiple instruments like Paytm Wallet, Paytm UPI, Net Banking, all major debit cards, credit cards and prepaid cards, and all other UPI apps directly into their bank account, and benefit from a single point reconciliation on the Paytm for Business app.

As per Redseer data, more merchants use Paytm QR-codes as compared to any other payments company in India. In 2019, Paytm had forayed into the Smart PoS devices arena and has gone on to launch a number of devices — Paytm All-in-One Android POS devices, All-in-One Android Smart POS, among others, including devices with the ability to generate a dynamic QR.

In 2020, Paytm launched All-in-One Portable Android Smart POS, a low-price handheld mobile device for accepting orders and payments on the go.

In 2021, the company launched the Paytm Smart POS for Android phones, an application which transforms a smartphone into a device that accepts contactless payments from all major debit, credit card and prepaid payments, supported by the Paytm for Business app.

Another great device in the segment is the Paytm Soundbox, a battery operated IoT-based device providing voice-based confirmation of QR code payments to merchants.

“In 2021, we upgraded the capabilities of the Paytm Soundbox with the launch of Paytm Soundbox 2.0 with a digital screen that gives instant visual confirmation of the paid amount along with the voice notification,” said the company in its DRHP.

 

Paytm also runs a merchant-only app called Paytm for Business, which enables merchants to make bill payments, transfer payments to their bank accounts, select their settlement frequency, link or change their destination bank account, view all their transactions in one place, open a Paytm Payments Bank account and order Paytm QR-supported merchandise (such as QR codes, and Soundbox).

ESAF Small Finance Bank files for

 ESAF Small Finance Bank files for Rs 998 cr IPO

 

Kerala based, ESAF Small Finance Bank on Monday filed its Draft Red Herring Prospectus (DRHP) with markets regulator Securities and Exchange Board of India for an IPO. As per the DRHP filed the aggregate issue size is up to ₹997.78 crs; comprising of a fresh Issue component of up to ₹  800 crs and an Offer for Sale up to ₹  197.78 crs by promoter and other selling shareholders i.e PNB Metlife India Insurance Company, Bajaj Allianz Life Insurance Ltd, PI Ventures LLP, and John Chakola.

 

The net proceeds from the fresh issue will be used to augment the bank’s Tier 1 capital (primarily loans, advances and investment portfolio) to meet future capital requirements.

 

The company may consider a Pre-IPO placement of up to ₹ 300 crs subject to counsel from the lead managers.

 

As per the CRISIL report, ESAF, is one of the leading small finance banks in terms of yield on advances, AUM growth rate and share of retail deposits. It currently operates across 21 states and two union territories with 550 Branches, 421 customer service centres (which are operated by our business correspondents), 12 business correspondents, 158 banking agents and 327 ATMs and serves over 4.68 million customers. 

The bank that follows a social business strategy seeking an impact across people, planet and prosperity, has asset products comprising of micro loans, retail loans, MSME and corporate loans and agricultural loans.

 

As of March 2021, its gross advances stood at Rs 8,415 crs compared with Rs 6,606.51 crs a year ago and total deposits were at Rs 8,999.43 crs against Rs 7028.38 crs.

 

Additionally, the DRHP states that the bank will continue to focus on its rural and semi urban franchisees and increase deposits across NRIs and CASA. As on date, it stands to have the highest share of retail deposits as a percentage to the total deposits when compared to the other small finance banks. 

 

Investment Bankers appointed to the issue are Axis Capital Ltd, Edelweiss Financial Services Ltd, ICICI Securities Ltd and IIFL Securities Ltd

Star Health and Allied Insurance Company Limited files

 Star Health and Allied Insurance Company Limited 

files DRHP with SEBI for its IPO

 DRHP Link: https://www.investmentbank.kotak.com/downloads/star-health-and-allied-insurance-company-limited-DRHP.pdf

Star Health and Allied Insurance Company Limited (‘SHAICL’ or the ‘Company’), the largest private health insurer in India with a market share of 15.8% in the Indian health insurance market in Fiscal 2021, according to CRISIL Research, filed its Draft Red Herring Prospectus (DRHP) with the market regulator SEBI for its Initial Public Offering (IPO).

The Initial Public Offering comprises of equity shares of face value of ₹10 each (“Equity Shares”) of Star Health and Allied Insurance Company Limited comprising a fresh issue aggregating up to ₹20,000 million (the “Fresh Issue”) and an offer for sale of up to 60,104,677 equity shares, including up to 30,683,553 equity shares by Safecrop Investments India LLP (“Promoter Selling Shareholder”), up to 137,816 equity shares by Konark Trust, up to 9,518 equity shares by MMPL Trust (“Promoter Group Selling Shareholders”) up to 7,680,371 equity shares by Apis Growth 6 Limited, up to 4,110,652 equity shares by Mio IV Star, up to 7,438,564 equity shares by University of Notre Dame Du Lac, up to 4,110,652 equity shares by Mio Star, up to 2,509,099 equity shares by ROC Capital Pty Limited, up to 1,476,140 equity shares by Venkatasamy Jagannathan, up to 1,804,312 equity shares by Sai Satish and up to 144,000 equity shares by Berjis Minoo Desai (collectively, the “Other Selling Shareholders”). The offer includes a reservation for subscription by eligible employees (“Employee Reservation Portion”).

The Net Proceeds from the Fresh Issue are proposed to be utilized augmentation of the Company’s capital base.

 Kotak Mahindra Capital Company Limited, Axis Capital Limited, BofA Securities India Limited, Citigroup Global Markets India Private Limited and ICICI Securities Limited are the Global Co-Coordinators and Book Running Lead Managers to the Issue.

CLSA India Private Limited, Credit Suisse Securities (India) Private Limited and Jefferies India Private Limited are the Book Running Lead Managers to the Issue.

Ambit Private Limited, DAM Capital Advisors Limited (Formerly IDFC Securities Limited) and IIFL Securities Limited are the Co-book Running Lead Managers to the issue.

Paras Defense And Space Technologies Ltd. files for

Paras Defense And Space Technologies Ltd. files for IPO

Paras Defense And Space Technologies Ltd., one of the ‘Indigenously Designed Developed and Manufactured Company’ (IDDM) category private sector company in India, primarily engaged in designing, developing, manufacturing and testing of a wide range of defense and space engineering products and solutions; has filed its Draft Red Herring Prospectus (DRHP) with the markets regulator for IPO.

The Issue will comprise of a Fresh Issuance of equity shares aggregating up to Rs 120 cr and an Offer For Sale of up to 17,24,490 equity shares by Promoter Selling Shareholders and Individual Selling Shareholders. The Company, in consultation with BRLMs, may consider a pre-ipo placement of equity shares for cash consideration aggregating up to Rs. 35 crore; further to which particular amount raised from the pre-ipo placement will not be reduced from the fresh issue.

The Company intends to utilize the net proceeds from the Fresh Issue towards purchase of machinery and equipment, funding incremental working capital requirements, repaying of certain borrowings and for general corporate purposes.

As per the F&S Report, Paras Defense And Space Technologies Ltd., is amongst India’s leading private sector Company catering to four major segments of Indian Defence Sector namely defence and space optics, defence electronics, electro-magnetic pulse (“EMP”) protection solution, and heavy engineering. Paras Defense is the sole Indian supplier of critical imaging components which also offers niche technologies through its product offerings. The Company manufactures high precision optics for the defense and space applications such as thermal imaging and space imaging systems. As per the F&S Report, it is the only Indian Company to have the design capability for space-optics and opto-mechanical assemblies.

The Mumbai based Company has contributed towards various space and defence programmes by providing optics; and under its defence electronics operations it has managed to provide a wide array of high performance computing and electronic systems for defence applications, including sub systems for border defence, missiles, tanks and naval applications. The Company has undertaken and delivered customized turnkey projects specializing in the defence electronics and EMP protection segments backed by specialized technology capabilities. Currently, the Company operates through two manufacturing facilities in Maharashtra, located at Nerul (Navi Mumbai) and Ambernath (in Thane).

At the domestic front, Paras Defense’s customer base ranges from PSUs to various defense public sector undertakings like Bharat Electronics Limited (BEL), Bharat Dynamics Limited (BDL) and Hindustan Aeronautics Limited (HAL); and has supplied products and solutions to private entities including Tata Consultancy Services Ltd., and Alpha Design Technologies Ltd. The Company has also catered to foreign customers like Advanced 138 Mechanical and Optical Systems (AMOS), Belgium, Chaban (Israel), Tae Young Optics Company Limited (South Korea), and Green Optics (South Korea).

The consolidated total income stands at ₹ 379.40 million for the six-month period ended September 30, 2020, and ₹1,490.51 million, ₹1,571.69 million and ₹1,525.33 million for the fiscal years ended March 31, 2020, 2019 and 2018, respectively. Consolidated profit after tax was ₹(1.39) million for the six month period ended September 30, 2020, and ₹196.57 million, ₹189.70 million and ₹250.80 million for the fiscal years ended March 31, 2020, 2019 and 2018, respectively.

The portion reserved for Qualified Institutional Buyers will be upto 50% of the offer, Non-Institutional Investors to have upto 15% of the portion reserved while upto 35% will be reserved for the Retail Investors.

Anand Rathi Advisors Ltd. is the Book Running Lead Manager to the issue.

Specialty Chemicals Company Anupam Rasayan files for

 Specialty Chemicals Company Anupam Rasayan files for Rs. 760 Cr IPO

Speciality chemicals company has filed its DRHP with the regulators to raise an aggregate of Rs. 760 Crs. The issue proceeds would be used mainly for repayment of debt. As stated in the DRHP, the company may consider an employee discount for eligible employees bidding for the employee reservation portion.

The company commenced operations in 1984 with conventional products and has now carved a niche for itself into speciality chemicals that involve multi step synthesis and complex chemistries such as Etherification, Acylation, Cyclization, Diazotization and Hydrolysis etc. It currently operates out of 6 multi-purpose manufacturing facilities based in Gujarat of which 4 facilities are located in notified Industrial Estate at Sachin and are in close proximity to the Adani Hazira Port, the latter 2 are located in notified Industrial Estate at Jhagadia. All the facilities have a combined aggregate installed capacity of around 23,396 metric tonne, out of which 6,726 metric tonne was added in March 2020 with the commercialization of Jhagadia Unit – 5 and Sachin Unit – 6.

Owing to its R&D capabilities and transparent cost model, it has been able to act as a “one-stop solution” for process innovation and development of “life science related speciality chemicals” catering to the agrochemical, personal care and pharmaceutical sectors which in FY20 accounted for 95.37% of its revenues and “Other speciality chemicals” used in speciality pigments and polymer additives contributed the balance. Anupam is one of the few companies in the world to have developed continuous and flow chemistry technology on a commercial scale and has been acknowledged for is innovation capabilities by its customers and has long term business with clients like Syngenta Asia Pacific, Sumitomo Chemical Company, UPL Limited across Europe, Japan, United States and India.

From FY18 to FY20, the company’s revenues have grown at CAGR of 24.29 % and its EBITDA for FY20 stood at Rs. 134.90 Crs. In spite of the lockdown imposed due to the COVID-19 pandemic the company’s half-yearly revenues increased by 51.51% i.e. from Rs 234.40 Crs to Rs 355.12 Crs for the comparable periods of September 30, 2019 and September 30, 2020, respectively.

India’s specialty chemicals industry stands to achieve serious growth in the global speciality chemicals segment, as currently the Indian speciality chemicals segment caters to only 1-2% of the global demand and is poised to grow at a 10-11% CAGR over the next 5 years, due to the rising demand from end user industries globally. (Source: F&S Report)

Bankers appointed to the Issue are Axis Capital, Ambit Private, IIFL Securities and JM Financial

Casual Dining Giant, Barbeque Nation refiles

Casual Dining Giant, Barbeque Nation refiles for IPO

Barbeque Nation Hospitality Limited, the single largest player in the organised dining space has refiled a fresh draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). The Issue comprises a fresh issue of shares of ₹275 and an offer for sale of up to 98,22,947 equity shares. The Company may consider to do a pre ipo placement not exceeding ₹150 crore, as stated in the DRHP.

The promoters of BNHL are Sayaji Hotels, Sayaji Housekeeping Services, Kayum Dhanani, Raoof Dhanani and Suchitra Dhanani and is backed by private equity investor, CX Partners who made its first investment 2013 and again in 2015.

The Promoter and Promoter group holds 60.24 percent, CX Partners owns 33.79 percent and renowned stock market investor Rakesh Jhunjhunwala's investment firm Alchemy Capital holds 2.05 percent in the company owned and company operated restaurant chain.

IIFL Securities Limited, Axis Capital Limited, Ambit Capital Private Limited, and SBI Capital Markets Limited are the Book Running Lead Managers to the issue.

Up to 50 per cent of the offer will be available for allocation to qualified institutional buyers (QIBs). Further, up to 15 per cent of the offer shall be available for allocation on a proportionate basis to non-institutional bidders and 35 per cent of the offer will be available for the allocation to retail individual bidders.

According to market sources, the Issue size will approximately be between ₹1000-1200 crore. The proceeds of the issue will be utilized to repay an outstanding borrowing of Rs 205 cr in part or full and general corporate purposes.

As a part of its expansion plans, BNHL which pioneered the format of over the table barbeque concept in indian restaurants, has diversified itself, the cuisine offered and customer segement outreach by recently acquiring 61.35% stake in Red Apple Kitchen which owns a well-established brand, Toscano, a casual dining Italian restaurant chain which currently has 10 outlets operating across Bengaluru and Chennai. Additionally through its existing kitchen infrastructure, it launched UBQ in November 2018 to provide a la carte Indian cuisine in the value segement which is currently being availed by delivery across 71 cities

The consolidated total revenue from continuing operations, EBITDA and Adjusted EBITDA of the company grew from ₹4,985.81 million, ₹1,217.33 million and ₹695.69 million, respectively, in FY2017 to ₹7,425.41 million, ₹1,493.87 million and ₹777.31 million, respectively, in FY2019, at a CAGR of 22.04%, 10.78% and 5.70%, respectively.

Since its earlier filing in August 2017, the fast growing restaurant chain has opened up 59 new outlets and is currently operating 138 outlets across 78 cities across 24 states in India and 7 outlets in UAE, Oman and Malaysia. The restaurant has seen 14.29 % CAGR increase in its in dining covers in India which has grown from 6.86 mn in FY17 to 8.96 mn in FY 19, pillared by referrals and recommendations of customers

According to Technopak, the chain CDR market is one of the fastest growing segments in the Indian restaurant Industry and is projected to grow at a CAGR of 20% between FY19- FY24

NSE, Warburg Pincus backed CAMS, files for

NSE, Warburg Pincus backed CAMS, files for IPO

Computer Age Management Services (CAMS), India’s largest technology driven financial infrastructure and services provider to the growing mutual fund industry, serving an AAUM of Rs. 18.7 trillion as on November, 2019 which is 69.4% of total mutual fund assets held by 16 Mutual Funds, on Thursday filed its Draft Red Herring Prospectus (DRHP) with markets regulator Securities and Exchange Board of India (SEBI) for its Initial Public Offering (IPO).

 

The IPO will be an Offer for Sale (OFS), in which 1,21,64,400 equity shares of face value Rs. 10 each will be offloaded by the Great Terrain Investment Ltd (an affiliate of Warburg Pincus), NSE Investments Ltd , Acsys Investments Ltd, HDFC Ltd and HDB Employees Welfare Trust  The issue includes an eligible employee reservations of upto 1.5% of the post offer paid up equity share capital. The Net Offer will have a 50% allocation to Qualified Institutional Buyers, 15% to Non Institutional Investors and 35% to Retail Individual Buyers.

The Book Running Lead Managers (BRLMs) to the offer are Kotak Mahindra Capital Company Limited, HDFC Bank Limited, ICICI Securities Limited and Nomura Financial Advisory and Securities (India) Private Limited.

Market sources estimate the IPO size to be anywhere between Rs. 1500-1600 crore

Spearheading the financial services segment since over 2 decades and augmenting fund growth, CAMS, offers an integrated canvas of services across physical and electronic touch points for receipt, verification and processing of financial and non-financial transactions for the BFSI sector, largely to the MF industry, in services of transaction origination and execution, payment, settlement and reconciliation; dividend processing, record keeping, report generation, intermediary empanelment and brokerage computation and compliance related services via its proprietary technology platforms and application suites such as myCAMS (2.9mn users), GoCORP (2400+ users), CAMSsmart, digiSIP, digiINFO,edge360 which caters to investors and intermediaries               

The AUM of equity mutual funds serviced by CAMS grew from Rs. 2,180 billion as of March 31, 2015 to Rs. 6,643 billion as of March 31, 2019, at a CAGR of 32.1%, and as of September 30, 2019 was Rs. 6,701 billion.

According to the DRHP, its total income and profit after tax for FY19 stood at Rs. 7,114.96 mn and Rs. 1308.95 mn respectively, its revenues have grown at a CAGR of 19% since 2017.

CAMS, the largest registrar and transfer agent for MFs going forward seeks to maintain its leadership position by deepening its technology integration and improving its value delivery, in addition to its focus on growing its business across insurance, electronic payment collection, Alternative Investment Funds, KYC Registration and Software Solutions.

According to the CRISIL Report, AAUM of the mutual fund industry has grown at a CAGR of 16.2 % between 2010 and 2019. This growth was led by increase in share of mutual funds in household savings as well as the increase in number of individual and institutional investors investing in mutual funds. Indian MF industry has a lot of headroom to grow keeping in mind higher disposable incomes and investable surplus, a growing investor base, increasing financial savings and Govt fillps towards awareness, ease, digitization and perception of MFs as a long term wealth creator 

Ujjivan Small Finance Bank files DRHP for Rs 1200 cr IPO

Ujjivan Small Finance Bank files DRHP for Rs 1200 cr IPO

 Ujjivan Small Finance Bank (USFB), which caters to the unbanked urban poor and young middle class customers, filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for its proposed IPO.

According to the DRHP, the company seeks to raise Rs 1200 crore, including reservation of equity shares of up to Rs 120 crore by eligible UFSL shareholders. The equity shares being offered are at a face value of Rs 10 each.

According to the DRHP filed by USFB, it may, in consultation with the book running lead managers, consider a pre-issue placement of an aggregate amount not exceeding Rs. 300 crore( PRE- IPO Placement). The PRE-IPO Placement, if undertaken, will be at a price to be decided by USFB in consultation with the BRLMs and the PRE-IPO Placement will be undertaken prior to filing of the Red Herring Prospectus with the ROC. If the Pre-IPO Placement is undertaken, the amount raised from the Pre-IPO Placement will be reduced from the issue, subject to the minimum issue size constituting at least 10% of the post-issue paid-up equity share capital of USFB.

According to the DRHP filed by the company, the mass focused SFB is committed to building financial inclusion in the country and is among the leading SFBs in terms of deposits, advances, branch count and Geographic Spread as of March 31, 2019.

Ujjivan has served 4.72 million customers from its 474 banking outlets, which include the 120 unbanked rural centers as of June, 2019. In FY-19, the SFB operationalized 287 banking outlets and has a network of 387 ATMs.

USFB has appointed Kotak Mahindra Capital Company Limited, IIFL Securities Limited and JM Financial Limited as the running lead managers to the issue.

The bank has posted consistent gains on the back of its focus on technology led initiatives like customer relationship and document management systems, biometric ATMs and tablet based loan origination systems.