Tag: paytm ipo

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Editorial

5 Things Wrong With The Indian Startup and VC Ecosystem

Do you know what’s common between OYO, PayTM, BYJUS, and Swiggy? While they have a valuation of greater than $10 billion, none of them are profitable. Startups have for long aimed for valuation and growth. Profitability is far from visible for many unicorns. 

Speaking of India’s largest IPO turned fiasco, the PayTM IPO. The IPO was oversubscribed 1.89x and ended up listing at a discount, costing investors $900 million in just two days. The party seems to have ended with PayTM IPO, where investors have lost close to 60% of their wealth as of February 2022. Institutional investors and venture capitalists (VCs) offloaded shares right before PayTM’s IPO, while retail investors later bore the brunt. Even anchor investors exited the company as soon as their lock-in period ended.

Starting in 2022, there has been a lot of chatter on startups closing down, firing all of their workforces, employees being ill-treated, startup founders being fired for governance issues, and much more. This brings us to a question: what’s wrong with the Indian startup ecosystem?

Valuation is King! Not Profit

As of February 2022, India is home to 91 unicorns, and most aren’t profitable. While the ultimate aim of a firm used to be ‘profit maximization’, now it has become ‘increasing shareholder’s wealth’. It seems like profits are for businesses and startups earn valuation. While sky-high valuation (with no profitability) is something that helps VCs and founders grow their wealth and enterprises, it lays the groundwork for a bubble that could explode once the ecosystem runs out of liquidity.

Customer Is King…At The Cost Of Employees?

Recent startups have had reports of poor human resource (HR) practices. It seems that the entire ecosystem is following a single motto: ‘Hire To Grow, Fire To Sustain’. Unicorns like OYO, PayTM, and Byju’s have laid off employees without any benefits or even a notice period and violated essential labor laws. Gig workers for unicorns like Zomato and Swiggy often go on strikes and claim to be underpaid.

BYJUS and WhiteHat Jr were in the news after clips of management’s misbehavior with its employees surfaced on social media. Pradeep Poonia, a software engineer, exposed malpractices to startups like BYJUS and WhiteHat Jr. through social media.

LIDO, an edtech startup, shut its operations and fired all of its employees without a notice period or prior intimation. The startup closed down nearly 5 months after it raised $10 million. Tiger Global-backed OkCredit fired around 35% of its workforce. On the contrary, the company had planned to ‘double its workforce’ by the FY22 end. These are not the only reported cases. Most HR malpractices go unquestioned by the ecosystem, making ‘hire to fire’ a norm in the startup world.

High Customer Acquisition Cost (CAC)

Point blank, Indian startups have a very High Customer Acquisition Cost (CAC). At a seed or early stage, when resources are limited, startups tend to spend way too much on advertising, marketing, and promotion. Eventually, startups end up exhausting their capital on acquiring customers instead of spending more on customer service or product development.

Poor Product and Flawed Business Models

Looking around the startup ecosystem markets, it feels like any product + e-commerce = a million-dollar startup. While e-commerce is the backbone of most successful enterprises, startups fail to understand the backbone of the business. They fail to realize that a product is its best salesperson.

Startups Spread Fast and Fail Faster

Startups intend to spread like wildfire and end up getting engulfed by one. Most startups in today’s time want to expand across India. Each area in the country comes with a different set of social, cultural, economic, political, physical, and physiological challenges. Instead of focusing on one area at a time, startups scatter their locations, making it problematic to handle.

Startups have been a hot topic in our country ever since the business reality television series Shark Tank India aired. The general public is more aware that bootstrapped or seed-round startups face challenges. The startup bubbles have started popping, and VCs are now more conscious about practices that could drive a startup down. One can expect startups to have a more disciplined approach and a greater success rate in the next ten years.

What are your views on the current state of the Indian startup ecosystem? Let us know in the comments section of the marketfeed app.

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Editorial

The Hidden Danger in IPOs of 2021

The year 2021 saw a stream of Initial Public Offerings (IPOs) that entered many investors’ pockets. Companies from all sectors and industries tried to unlock their true value by listing on the stock market. According to credit rating agency India Ratings and Research (Ind-Ra), the financial year 2022 has the highest number of IPOs lined up in over two decades. A closer look at the 2021 IPO bull run shows that companies might have tried to list without sufficient reason or cause. The question is, can the recent and upcoming IPOs sustain investor gains? Are the listed companies overpriced? Have the IPO-raised funds been used in the right manner? Read on to know more.

Are IPOs Overpriced?

A total of 72 companies had their IPOs in FY22. Between January and November, 38 out of 52 mainboard IPOs ended up with listing gains. Listing gains happen when a company’s share debuts at a higher price than what the IPO subscribers bought it for. Based on the issue size, the top 10 companies gave average listing gains of nearly ~17%. 

According to Ind-Ra, the IPO count for FY22 stood at 71, amounting to Rs 85,600 crores as against Rs 27,200 crore raised by 56 companies last year. Life Insurance Corporation or LIC is planning to raise nearly Rs 1,00,000 crore through an IPO. If it happens by year-end, it could drive the total issue size for the fiscal to nearly Rs 2,00,000 crore. The IPO bull run is being led by the new-age tech-oriented companies like Zomato, Nykaa, PayTM, Policy Bazaar, to name a few. Unlike traditional companies, new-age tech-oriented companies are listing for brand recognition and premium value unlocking. 

IPOs Not Helping In Cutting Down Corporate Debt?

According to Ind-Ra, 26% of the companies used the funds for corporate purposes, 19% used them for funding capital expenditure, another 19% used them for repayment of existing loans, and the remaining 11% used it to carry out an offer for sale. 

There has been a shift in trend regarding objects of offer that a company mentions in Red Herring Prospectus (IPO Report). While the purpose of an IPO is generally considered to be either for funding capital expenditure or repaying existing debt, many companies have clearly stated ‘brand recognition’ as the sole reason. 

The availability of cheap Commercial Paper (CP) has also fueled the IPO of Bullrun. CPs are borrowings made from NBFCs for short-term use (up to one year). IPO Investors, mostly institutional ones, would borrow from Non-Banking Financial Companies (NBFCs) to fuel their IPO gig. The Reserve Bank of India has now capped an individual borrowers limit for NBFCs to Rs 1 crore. This move could significantly impact the subscription status of the IPOs.

The Way Ahead

The bull run in 2021 was fuelled by the enormous liquidity offered by monetary and fiscal easing. Once the central banks start cutting interest rates, the money could make its way out of the recent IPO stocks, many of which are known to be overvalued. 

Another cause of worry is the reason why certain companies got listed. Many have done so with the intent of getting a premium valuation from the hype caused by retail and institutional investors alike. If a company does not utilize the IPO funds correctly, it might face operational or financial bottlenecks in the future, which could be the reason for the investor’s dissatisfaction. This dissatisfaction could drive down the valuation of the company. The upcoming quarter is crucial for the stock market. With fears regarding the Omicron variant of COVID-19, sensitive oil prices, and interest rate cut expectations, investors need to weigh their investments in light of these risks and make the right choices.

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Editorial

Why Was The PayTM IPO a Flop Show?

India’s largest IPO in a decade has turned a flop show! One97 Communications Ltd, the parent company of digital payments app PayTM, lost 27% of its share price on the day of its listing. Domestic retail investors had high hopes on the Rs 18,300 crore IPO. Nevertheless, investors were left surprised when the shares were listed at a discount on the stock exchanges. In this piece, we explore the possible causes that led to the failure, and whether the stock has any future investment prospects. 

Offloading By Promoters and Hedge Funds

The company planned to raise a total of Rs 18,300 crore through its IPO, Rs 8300 through a fresh issue (which goes to the company), and Rs 10,000 through an Offer For Sale (which goes to the promoters). The signs of an IPO debacle were pretty much evident at the beginning of the month. The highest number of shares were offloaded by Jack Ma’s Antfin (Netherlands) Holding B.V, Alibaba Group, and SoftBank Group. Other offloaders included some promoters and hedge funds. Hedge funds and Investment funds have an appetite for risk. They generally avoid playing on smooth grounds. Seemingly, the investment, venture capital, and hedge funds tried to take some money home by offloading stakes in the company. This wouldn’t have been the case if the companies saw a greater opportunity in the IPO.

Retail Investor Hype!

On November 3, 2021, the US Fed announced its plans to begin tapering quantitative easing by reducing interest rates and selling government bonds. While the announcement did not trigger a sudden reaction, investors knew it was time to slowly get their hands off high-risk assets, but obviously not the retail investors. Retail investors are individuals like me and you. The IPO was subscribed only 18% on Day 1. The retail segment was subscribed 78%, while the Qualified Institutional Buyers (QIB) and Non-Institutional Investor (NII) segments were subscribed only 2% and 5% respectively. By Day 3, India’s ‘largest’ IPO was subscribed 1.89 times, a small number for the hype around the company. In the end, the Foreign Institutional Investors and Retails investors managed to see the IPO through an oversubscription. 

Bad Timing

Timing is the most crucial element in an IPO. PayTM’s IPO is one of the last few IPOs of this season. The IPO bull run was powered by a rush of liquidity globally through quantitative easing and expansionary fiscal policies by various governments. This sudden rush of liquidity made its way to shares, IPOs, and other high-risk venues. The NIFTY and SENSEX are at an all-time high, and all the available liquidity has already been invested in the markets or IPOs. Almost all of PayTMs peers, despite high valuations, sailed through smoothly and gave investors a bang for the buck. This makes us ask, why did PayTM IPO fail while the IPO of its tech peers like Nykaa and Zomato sailed through smoothly?

We at marketfeed, in our article titled ‘Nykaa IPO: All You Need To Know’, pointed out the following: “The IPOs are coming out all at once with extremely high valuations and buzz in the market. It might leave the market out of liquidity. Nykaa is the first IPO going up in November and might therefore have a first-mover advantage. The company has grown significantly in a very small period, much faster than its other tech-commerce peers.”

The Future

Analysts had already signalled overvaluation for the company. An overvalued IPO can only sustain in a bull run. When the bears kick in, the fall can be bloody. The market has correctly valued the company through the discounted listing, dragging it towards the median valuation. As they say, the market decides its best value. Macquarie (a research firm) has assigned its lowest rating ‘underperform’ to the company. 

Despite being a loss-making company, Paytm has managed to trim its losses and expenses. While the company remains in net loss, its financial growth and stability have been healthy recently. The company does not have one specific listed competitor. It has a competitor in just about every domain it operates. This over-diversification can stunt the growth of the company in parent segments. The Macquarie report has mentioned that the company has ‘too many fingers in too many pies’. 

We are at the peak of the market cycle The flopped PayTM IPO is a red flag for over-valuation. While the company’s promoters made quite some money because of overvaluation, the retail investors suffered. Certain news reports suggest that analysts have advised to ‘sell and book loss’ to those who have received an allotment. It is advised that retail investors perform thorough research and take due caution before making a move.

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Editorial

PayTM IPO Analysis: The Biggest Indian IPO is Here!

India’s largest IPO in a decade is near! One 97 Communications Limited, the parent company of PayTM, is expected to raise Rs 18,300 crore through its IPO next week. This piece covers the company’s financial position and business model.

About PayTM

PayTM is an Indian multinational company that specializes in digital payment systems, e-commerce, and finance. Founded in 2010 in Noida by Vijay Shekhar Sharma with an initial investment of $2 million, the company now holds a valuation of $16 billion or Rs 1.2 lakh crore. The company is backed by investors like Jack Ma’s Ant Group, SoftBank, and even Warren Buffet’s Berkshire Hathaway, to name a few.

Paytm is coming up with what could be known as the biggest IPO in a decade. It plans to raise nearly Rs 18,300 through its public issue. According to the RHP, the company would raise Rs 8,300 through a Fresh Issue and the balance Rs 10,000 through Offer For Sale (OFS). The draft papers had stated that the company had plans to raise Rs 2,000 crore in a pre-IPO placement. However, the plan was later scrapped since Paytm faced disagreements with investors over its valuation. 

Business Model

The company has a payments-led super-app, through which it offers innovative and intuitive digital products and services. It offers consumers a wide selection of payment options on the Paytm app, which include (i) Paytm Payment Instruments, which allow them to use digital wallets, sub-wallets, bank accounts, buy-now-pay-later and wealth management accounts, and (ii) major third-party instruments, such as debit/credit cards and net banking.

Merchants can use in-store and online payment solutions to accept payments through Paytm Payment Instruments as well as major third-party payment methods. To help them acquire and retain customers, and create demand, PayTM offers them services like selling tickets to customers, advertising, mini-app listings, channel, and loyalty solutions.

Paytm offers services to nearly 33.3 crore customers with 2.1 crore merchants on its network, as of March 2021. The company’s Gross Merchandise Value (GMV) stands at Rs 4 lakh crore. GMV refers to the rupee value of total payments made to merchants through transactions through Paytm Payment Instruments or its payment solutions, over a period.

According to a Redseer Report, Paytm has an overall payments transaction volume market share of approximately 40%, and wallet payments transaction market share of 65-70% in India as of FY 2021.

Paytm provides mobile banking services through Paytm Payments Bank, in which it owns a 49% equity stake. It offers a comprehensive suite of digital banking products for individuals, small and medium enterprises, and large corporates including current account, savings account, salary accounts, fixed deposits, and debit cards. As of March 31, 2021, Paytm Payments Banks had 64 million savings accounts, the largest UPI beneficiary bank with a market share of 17.1%.

Paytm also offers wealth management services through the Paytm app and the Paytm Money app. Paytm Payments Bank has launched fixed deposits on the Paytm app in partnership with commercial banks. It also launched Paytm Gold, which allows consumers to purchase gold for as low as Rs 1. Paytm Money offers mutual funds, equity, and derivatives trading through a registered investment advisor (RIA) license and equity broking license from SEBI.

Source:PayTM RHP

Financial Performance

Paytm has three revenue segments— Payment and Financial Services, Commerce and Cloud Services, and Other Income. The maximum revenue contribution is made by the Payments and Financial Services segment. This segment includes wallet payments, Paytm Payments Bank, Paytm Money, Paytm Postpaid, and other financial services. 

Between FY19 and FY21, the contribution of the Commerce and Cloud Services segment has reduced by ~54%. This was mainly due to the disruption caused by the COVID-19 pandemic, which affected the travel, e-commerce, and entertainment business of Paytm. Paytm is a loss-making company. Between FY19 and FY21, the company has managed to limit its losses by ~59%. 

Paytm has also managed to trim down its expenses by ~38%. Most of the company’s expenditure is made on payment processing charges due to high volumes of transactions taking place on the app. In FY21, close to 40% of the total expenses were payment processing charges. Another major expense was ‘Marketing and Promotional Expenses’. Between FY19 and FY21, the company managed to reduce Marketing and Promotional expenses by 84% from Rs 3,408 crore in FY19 to Rs 532 crore. 

Paytm holds a short-term debt of Rs 544.9 crores. 

About the IPO

Paytm plans to use the Rs 8,300 crore that it raises from the IPO as follows:

Growing and strengthening its ecosystem, including through acquisition and retention of consumers and merchants and providing them with greater access to technology and financial services.Rs 4,300 crore
Investing in new business initiatives, acquisitions, and strategic partnerships.Rs 2,000 crore

Paytm hasn’t specified where it will be using the remaining Rs 2,000 crore. 

Chinese mogul Jack Ma’s Antfin (Netherlands) Holding B.V. owns close to 29.6% equity stake in Paytm, the highest in the company. According to SEBI regulatory requirements, no shareholder can hold more than 25% in a ‘professionally managed company’. Since Paytm has decided to list as a professionally managed company, it cannot have a promoter. Antfin will be the largest seller in the IPO. It will be selling shares worth Rs 4,704 crore out of the total OFS of Rs 10,000 crore. Jack Ma’s Alibaba too holds a 7.2% stake in Paytm separately. Other shareholders include Berkshire Hathaway, Elevation Capital, SoftBank, and CEO Vijay Shekhar Sharma. 

According to SEBI regulations, the company needs to offer not less than 75% of the net offer to Qualified Institutional Buyers (QIBs). This will bring down the retail quota from 35% to 10% as is the requirement laid down by SEBI. Therefore, retail investors like you and me have a lesser chance of getting an allotment due to supply-side restraint. 

Despite being a loss-making company, Paytm has managed to trim its losses and expenses. It has diversified its revenue stream, which ensures that impact on one vertical does not affect the other. While the company remains in net loss, its financial growth and stability are healthy. The company does not have one specific listed competitor. It has a competitor in just about every domain it operates. 

What are your views on this IPO? Will you be applying for it? Let us know in the comments section of the marketfeed app.

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RIL Reports 43% YoY Rise in Net Profit in Q2 – Top Indian Market News

Reliance Industries Q2 Results: Net profit rises 43% YoY to Rs 13,680 crore

Reliance Industries Ltd (RIL) reported a 43% YoY increase in net profit to Rs 13,680 crore for the quarter ended September (Q2 FY22). Net profit increased by 11% compared to the previous quarter. Its revenue from operations rose 49% YoY (or 21% QoQ) to Rs 1.74 lakh crore during the same period. The company posted a record quarterly consolidated operating profit of Rs 30,283 crore, an growth of 30% YoY.

 Jio Platforms reported a net profit of Rs 3,728 crore in Q2, up 23% YoY. Its revenue from operations rose ~7% YoY (or 4.4% QoQ) to Rs 19,777 crore.

Read more here.

Tata Consumer Q2 Results: Net profit rises 4% YoY to Rs 268 crore

Tata Consumer Products Ltd (TCPL) reported a 4.2% YoY increase in consolidated net profit to Rs 268.04 crore for the quarter ended September (Q2 FY22). Net profit increased by 44.77% compared to the previous quarter. Its revenue from operations rose 9.1% YoY to Rs 3,033.1 crore during the same period. TCPL’s revenue growth in Q2 was aided by a 14% YoY rise in the India beverages segment and a 23% YoY rise in the India foods business.

Read more here. 

Adani Green’s subsidiary secures 450 MW wind energy project

Adani Renewable Energy Holding Fifteen Ltd (AREHFL) has received a Letter of Award (LOA) for setting up a 450 megawatt (MW) wind energy project. AREHFL is a subsidiary of Adani Green Energy Ltd (AGEL). The fixed tariff for this project capacity is Rs 2.70 per kilowatt-hour (kWh) for 25 years. With this, AGEL has a total renewable energy project portfolio of 20,284 MWac capacity

Read more here.

HDFC Life Q2 Results: Net profit falls 16% YoY to Rs 276 crore

HDFC Life Insurance reported a 16% YoY decline in consolidated net profit to Rs 275.91 crore for the quarter ended September (Q2 FY22). Its total income rose 24.6% YoY to Rs 20,478.46 crore during the same period. HDFC Life’s net premium income (NPI) stood at Rs 11,445.33 crore in Q2 FY22, compared to Rs 10,056.71 crore in Q1 FY21.

Read more here.

RBI announces scale-based regulatory framework for NBFCs

The Reserve Bank of India (RBI) has introduced a revised scale-based regulatory framework for non-banking financial companies (NBFCs). The framework encompasses different aspects of regulation of NBFCs, including capital requirements, governance standards, and prudential regulation. There will also be a ceiling of Rs 1 crore per borrower for financing subscription to an Initial Public Offer (IPO). It will be effective from October 1, 2022.

Read more here.

PVR Q2 Results: Net loss at Rs 153 crore

PVR Limited reported a consolidated net loss of Rs 153.13 crore for the quarter ended September (Q2 FY22). It had posted a net loss of Rs 184.06 crore in the corresponding quarter last year (Q2 FY21). Its revenue from operations jumped nearly three-fold YoY to Rs 120.32 crore in Q2 FY22. PVR’s total expenses rose 18.31% YoY to Rs 460.68 crore during the same period.

Read more here.

Hindustan Zinc Q2 Results: Net profit rises 4% YoY to Rs 2,017 crore

Hindustan Zinc Ltd (HZL) reported a 3.9% YoY increase in net profit to Rs 2,017 crore for the quarter ended September (Q2 FY22). Its revenue from operations rose 7.6% YoY to Rs 5,958 crore during the same period. The company’s total expenses increased by 4.2% YoY to Rs 3,571 crore in Q2. HZL said it is progressing well on its Environmental, Social, and Governance (ESG) journey and has committed to Net Zero emissions by 2050.  

Read more here.

Federal Bank Q2 Results: Net profit rises nearly 50% YoY to Rs 460 crore

Federal Bank reported a nearly 50% YoY increase in net profit to Rs 460.26 crore for the quarter ended September (Q2 FY22). Net profit rose ~25% compared to the previous quarter. Its net interest income (NII) rose 7% YoY to Rs 1,479.4 crore during the same period. The bank’s gross non-performing assets (GNPA) ratio stood at 3.24% in Q2, compared to 3.50% in the previous quarter. Provisions declined by 53.9% YoY (or 54.8% QoQ) to Rs 245 crore in the July-Sept quarter of FY22. 

Read more here. 

Paytm gets SEBI approval for Rs 16,600 crore IPO

One97 Communications, the parent company of fintech platform Paytm, has received approval from market regulator SEBI to launch its Rs 16,600 initial public offering (IPO). The IPO comprises a fresh issue of shares of up to Rs 8,300 crore and an offer for sale (OFS) of up to Rs 8,300 crore. The proceeds from the IPO will be used to strengthen Paytm’s payment ecosystem and for new business initiatives and acquisitions.

In other news, FSN E-Commerce Ventures will open its IPO on October 28 (next Thursday). The company runs Nykaa, an online marketplace for beauty and wellness products. The price band of the IPO is fixed at Rs 1,085-1,125 per share. 

Read more here.

Tata Elxsi Q2 Results: Net profit rises 59% YoY to Rs 125 crore

Tata Elxsi Ltd reported a 58.9% YoY increase in net profit to Rs 125.33 crore for the quarter ended September (Q2 FY22). Net profit increased 10.55% compared to the previous quarter. The IT company’s revenue from operations rose 38.4% YoY (or 6.6% QoQ) to Rs 595.3 crore during the same period. 

Yes Bank Q2 Results: Net profit rises 74% YoY to Rs 225 crore

Yes Bank reported a 74.3% YoY increase in net profit to Rs 225 crore for the quarter ended September (Q2 FY22). Net profit increased ~9% compared to the previous quarter. Its net interest income (NII) fell 23.4% YoY to Rs 1,512 crore during the same period. The bank’s gross non-performing assets (GNPA) ratio stood at 15% in Q2, compared to 15.6% in the previous quarter. Provisions declined by 65% YoY to Rs 377 crore in the July-Sept quarter of FY22. 

Read more here. 

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Zomato IPO Subscribed 38.25 Times on Final Day of Bidding – Top Indian Market News

Zomato IPO subscribed 38.25 times on final day of bidding

The Rs 9,375 crore initial public offering (IPO) of Zomato Limited was subscribed 38.25 times on the final day of bidding. The IPO has received bids for 2,751.25 crore equity shares against the issue size of 71.92 crore shares. Retail investors have subscribed 7.45 times against their reserved portion. Non Institutional investors (NIIs) and Qualified Institutional Buyers (QIBs) have subscribed 32.96 times and 51.79 times, respectively, against their reserved portions. 

HDFC AMC Q1 Results: Net profit rises 14% YoY to Rs 345.45 crore

HDFC Asset Management Company (AMC) reported a 14% YoY increase in net profit to Rs 345.45 crore for the quarter ended June (Q1 FY22). Net profit has increased by 9.3% when compared to the previous quarter. Its revenue from operations rose 23% YoY (or 0.8% QoQ) to Rs 507.1 crore during the same period. The company’s Quarterly Assets Under Management (QAAUM) rose 17% YoY to Rs 4,16,900 crore in Q1. HDFC AMC holds a 12.6% market share in QAAUM of the mutual fund industry.

Read more here.

One97 Communications files DRHP for Rs 16,600 crore IPO

One97 Communications Ltd, the parent company of digital payments platform Paytm, has filed a Draft Red Herring Prospectus (DRHP) for its IPO with market regulator SEBI. The company aims to raise Rs 16,600 crore via the public issue. The fresh issue of shares (of the face value of Rs 1 each) aggregates to Rs 8,300 crore. Existing shareholders of the firm will offload their stake worth Rs 8,300 crore. The company will use the IPO proceeds to strengthen its payment ecosystem and drive new business initiatives and acquisitions.

Read more here.

JMC Projects secures orders worth Rs 1,624 crore

JMC Projects (India) Ltd has secured new orders worth Rs 1,624 crore. The work includes a road project in Ghana, South Africa, and a few building projects in India. The company’s order inflow has reached Rs 4,659 crore in the current financial year (FY22). JMC Projects (India) is a subsidiary of Kalpataru Power Transmission Ltd. It is one of the leading civil construction and infrastructure EPC companies in India.

Read more here.

Tata Power partners with HPCL to set up EV charging stations at petrol pumps

Tata Power has signed an agreement with Hindustan Petroleum Corp Ltd (HPCL) to provide electric vehicle (EV) charging stations at HPCL’s petrol pumps across the country. Under the agreement, Tata Power will provide EV charging infrastructure at HPCL’s retail outlets for EV users. People can use the Tata Power EZ Charge mobile application to utilise charging facilities. Tata Power Company owns a network of over 500 public chargers in petrol pumps, metro stations, and shopping malls in 100+ cities in India.

Read more here.

L&T Finance Q1 Results: Net profit rises 20% YoY to Rs 178 crore

L&T Finance Holdings Ltd reported a 20% YoY increase in net profit to Rs 178 crore for the quarter ended June (Q1 FY22). Net profit has declined by 33% when compared to the previous quarter. Its revenue from operations declined by 7% YoY (or 8% QoQ) to Rs 3,140 crore during the same period. L&T Financial Services is a leading non-banking finance company (NBFC) that offers farm equipment finance, two-wheeler finance, micro-loans, etc. It is a subsidiary of Larsen & Toubro (L&T).

Read more here.

NIIT partners with Sushant University to offer future-ready programs

NIIT Limited has partnered with Gurugram-based Sushant University to offer their upcoming batches of Bachelors in Computer Application (BCA) and BTech in Computer Science specialization in Banking & Finance and StackRoute – Full Stack Product engineering, respectively. The partnership aims to deliver future-ready programs to improve learning and employability for fresh graduates. The programs would empower them with the necessary skills to become ‘Day-1 job-ready industry professionals’.

Read more here.

DEN Networks Q1 Results: Net profit falls 29% YoY to Rs 41 crore

DEN Networks Ltd reported a 29% YoY decline in net profit to Rs 41.15 crore for the quarter ended June (Q1 FY22). Net profit has increased by 11% when compared to the previous quarter. Its revenue from operations increased by 0.6% YoY to Rs 302 crore during the same period. DEN Networks distributes and promotes television channels through an extensive digital cable distribution network in India. It also offers over-the-top (OTT) entertainment and broadband services.

Tatva Chintan Pharma Chem IPO subscribed 4.5 times on first day

The Rs 500 crore IPO of Tatva Chintan Pharma Chem was subscribed 4.51 times on the first day of bidding. The IPO has received bids for 1.46 crore equity shares against the issue size of 32.61 lakh shares. Retail investors have subscribed 8.24 times against their reserved portion. Non Institutional investors (NIIs) and Qualified Institutional Buyers (QIBs) have subscribed 1.14 times and 50%, respectively, against their reserved portions.

To learn more about the IPO, click here.  

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India to Target 20% Ethanol Blending in Petrol by 2025, says PM Modi – Top Indian Market News

petrol prices

India advances 20% ethanol blending in petrol to 2025: PM Modi

Prime Minister Narendra Modi, on Saturday, said the target date for achieving 20% ethanol-blending with petrol has been advanced by five years to 2025 to cut pollution and reduce import dependence. The E100 pilot project related to the production and distribution of ethanol was also launched in Pune today. Ethanol extracted from sugarcane and damaged food grains is less polluting and its use will also provide farmers with an alternate source of income. 

Last year, the Central government had set a target of reaching 10% ethanol blending in petrol (10% ethanol mixed with 90% diesel) by 2022 and 20% doping in 2030.

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VA Tech Wabag Q4 Results: Net profit at Rs 32 crore

VA Tech Wabag Ltd reported a standalone net profit of Rs 32.82 crore for the quarter ended March 2021 (Q4 FY21). It had posted a net profit of Rs 1.38 crore in the corresponding quarter last year (Q4 FY20). Total income rose 39.2% YoY to Rs 701.09 crore in Q4 FY21. For the financial year ended March 31, 2021 (FY21), net profit rose 24.3% YoY to Rs 73.03 crore. VA Tech Wabag is a water treatment company based in Chennai.

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IOL Chemicals Q4 Results: Net profit declines 16% YoY to Rs 75 crore

IOL Chemicals and Pharmaceuticals Ltd reported a 16.63% YoY decline in net profit to Rs 75.25 crore for the quarter ended March (Q4). Net profit has declined by 35.5% when compared to the previous quarter. Its revenue from operations rose 4% YoY to Rs 467 crore during the same period. Net profit for the financial year ended March 31, 2021 (FY21) rose 23.05% YoY to Rs 444.46 crore. The company’s board has recommended a final dividend of Rs 2 per share.

Read more here.

GST collection declines in May; still holds above Rs 1 lakh crore mark 

The gross Goods and Services Tax (GST) revenue collected in May 2021 stood at Rs 1,02,709 crore, as per data released by the Ministry of Finance. This marks the eighth month in a row that GST revenue has stayed above the Rs 1 lakh crore mark. GST collection took a severe hit in May due to lockdowns and other restrictions imposed by states to curb the second wave of Covid-19 infections. The total GST revenue in May 2021 stands 65% higher than the corresponding month last year. GST collections in April 2021 stood at a record high of Rs 1.41 lakh crore.

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PNB targes 3-fold rise in profit at nearly Rs 6,000 crore in FY22 

Punjab National Bank (PNB) announced that it is expecting a nearly three-fold jump in net profit to Rs 6,000 crore during the current financial year (FY22). The lender said this target will depend on credit growth and overall demand in the economy. It projects a loan growth of 8-10% for the banking industry on the assumption that the economy will grow at 9.5% in 2021-22. PNB has also identified bad loans (NPAs) worth Rs 8,000 crore, which will be transferred to the National Asset Reconstruction Company Ltd (NARCL).

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REC subsidiary transfers two project specific SPVs to PowerGrid

REC Power Distribution Company Ltd, a wholly-owned subsidiary of REC Limited, has handed over two project-specific Special Purpose Vehicles (SPVs) to Power Grid Corporation of India. The SPVs include Fatehgarh Bhadla Transco Ltd and Sikar New Transmission Ltd. The selection of PowerGrid was carried out through Tariff Based Competitive Bidding (TBCB) conducted by the Ministry of Power, Government of India.

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Dynemic Products Q4 Results: Net profit declines 27% YoY to Rs 5.8 crore

Dynemic Products Ltd reported a 27.72% YoY decline in consolidated net profit to Rs 5.79 crore for the quarter ended March (Q4). Net profit has declined by 30% when compared to the previous quarter. Its revenue from operations rose 29.43% YoY to Rs 56.56 crore during the same period. Net profit for the financial year ended March 31, 2021 (FY21) rose 17.87% YoY to Rs 28.49 crore. Dynemic Products is a leading manufacturer of food colours.

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IPO-bound Paytm reports loss of Rs 1,701 crore in FY21

One97 Communications Ltd, the parent company of Paytm, reported a consolidated loss of Rs 1,701 crore for the financial year ended March 31, 2021 (FY21). It had posted a loss of Rs 2,942 crore in FY20. Its total revenue declined by 10% YoY to Rs 3,186 crore. Expenses fell 22% YoY to Rs 4,782.95 crore. Last week, Bloomberg reported that Paytm is planning to raise ~Rs 21,800 crore via an initial public offering (IPO). The digital payments provider is targeting a valuation of $25 billion to $30 billion.

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NHPC to lease electric vehicles, fast charging devices from EESL

NHPC Limited has signed an agreement with Energy Efficiency Services Ltd (EESL) for leasing 25 electric vehicles (EVs) and three fast-charging devices to be used by its officials. With the induction of these EVs, NHPC will have the biggest fleet of zero-emission cars among all major public sector undertakings (PSUs). EESL has been procuring EVs from automakers such as Tata Motors and Mahindra & Mahindra (M&M) and supplying them to different ministries and PSUs.

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IFGL Refractories Q4 Results: Net loss at Rs 2.53 crore

IFGL Refractories Ltd reported a consolidated net loss of Rs 2.53 crore for the quarter ended March 2021 (Q4 FY21). It had posted a net loss of Rs 13.93 crore in the corresponding quarter last year (Q4 FY20). Its revenue from operations rose 27.66% YoY to Rs 283.52 crore in Q4 FY21. For the financial year ended March 31, 2021 (FY21), net profit jumped 237.22% YoY to Rs 65.59 crore. The company’s board has approved a total dividend of Rs 10 per share.

IFGL Refractories is a manufacturer of specialised refractories (materials that can withstand very high temperatures) used in steel plants.

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Kalyan Jewellers Reports 54% YoY Rise in Net Profit in Q4 – Top Indian Market News

Kalyan Jewellers Q4 Results: Net profit rises 54% YoY to Rs 74 crore

Kalyan Jewellers reported a 54% YoY increase in consolidated net profit to Rs 73.9 crore for the quarter ended March (Q4). Its revenue from operations rose 42.78% YoY to Rs 3,050.60 crore during the same period. For the financial year ended March 31, 2021 (FY21), the company posted a net loss of Rs 6.07 crore. This is compared to a net profit of Rs 142,27 crore in FY20. Kalyan Jewellers has announced plans to open 21 showrooms in India in the current financial year (FY22).

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Indian economy not as hard hit as first wave, but uncertainties remain: RBI

The Reserve Bank of India (RBI) said that India’s economy has not moderated to the extent it did during the first wave of the Covid-19 pandemic, but uncertainties can act as a deterrent in the short term. In its annual report, RBI said India’s growth prospects now essentially depend on how fast the country can contain the second wave of infections. The central bank has also expressed concerns over the ‘bubble’ in the Indian equity markets and has hinted that high valuations in the market are far from ground realities.

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Cadila Healthcare Q4 Results: Net profit rises 73% YoY to Rs 679 crore

Cadila Healthcare reported a 73.25% YoY increase in consolidated net profit to Rs 679 crore for the quarter ended March (Q4). Net profit has increased by 28.7% when compared to the previous quarter. Its total revenue from operations rose 2.52% YoY to Rs 3,846.70 crore during the same period. For the financial year ended March 31, 2021 (FY21), net profit rose 81.34% YoY to Rs 2,133.6 crore. The pharma company’s board has recommended a final dividend of Rs 3.5 per share. 

The company has announced plans to seek emergency use approval (EUA) for its Covid-19 vaccine, ZyCov-D, from the Drugs Controller General of India (DCGI) within the next two weeks.

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Lupin receives $50 million from Boehringer Ingelheim for achievement of key milestones

Lupin Limited has received a payment of $50 million (~Rs 363.5 crore) from Germany-based Boehringer Ingelheim for the achievement of ‘key milestones’ for its novel MEK inhibitor compound. The MEK inhibitor compound is under development by Boehringer Ingelheim as potential targeted therapy for patients with difficult-to-treat cancers. ‘Key milestones’ can be referred to as various successful steps on the way to a drug getting regulatory approval.

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Strides Pharma Q4 Results: Net profit at Rs 46 crore

Strides Pharma Science reported a consolidated net profit of Rs 46.09 crore for the quarter ended March (Q4 FY21). It had posted a net loss of Rs 203.93 crore in the corresponding period last year (Q4 FY20). Total revenue from operations rose 46.85% YoY to Rs 908.5 crore in Q4 FY21. The pharma company’s board has approved a final dividend of Rs 2.5 per share.

In a separate filing, Strides Pharma said it has partnered with Taiwan-based TLC to launch Liposomal Amphotericin B in India. The drug is used for the treatment of mucormycosis or Black Fungus.

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Dixon Tech Q4 Results: Net profit rises 60% YoY to Rs 44.3 crore

Dixon Technologies reported a 60% YoY increase in consolidated net profit to Rs 44.3 crore for the quarter ended March (Q4). Net profit has declined by 28% when compared to the previous quarter. Its total revenue from operations jumped 146% YoY to Rs 2,109.7 crore during the same period. Dixon Tech’s consumer electronics division posted a three-fold increase in revenues to Rs 1,178.6 crore in Q4. The company’s board has approved a final dividend of Rs 1 per share. 

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Paytm targets $3 billion IPO this year: Report

According to a report from Bloomberg, digital payments provider Paytm is aiming to raise $3 billion (~Rs 21,800 crore) via an initial public offering (IPO) late this year. This would be India’s biggest-ever IPO. The company, formally called One97 Communications Ltd, plans to list in India around November. It is targeting a valuation of around $25 billion to $30 billion. Paytm is backed by Japan’s SoftBank Group, Warren Buffett’s Berkshire Hathaway Inc, and China-based Ant Financial.

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IRB Infra Q4 Results: Net profit declines 36.85% YoY to Rs 97.46 crore

IRB Infrastructure Developers Ltd reported a 36.85% YoY decline in consolidated net profit to Rs 97.46 crore for the quarter ended March (Q4). Net profit has increased by 40.2% when compared to the previous quarter. Its revenue from operations rose 1.35% YoY to Rs 1,605.85 crore during the same period. For the financial year ended March 31, 2021 (FY21), net profit has declined 83.75% YoY to Rs 117.15 crore.  

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Sun Pharma Q4 Results: Net profit jumps 123% YoY to Rs 894 crore

Sun Pharmaceutical Industries Ltd reported a 123.6% YoY increase in consolidated net profit to Rs 894 crore for the quarter ended March (Q4). Net profit has declined by 52% when compared to the previous quarter. Its revenue from operations rose 4% YoY to Rs 8,522 crore during the same period. For the financial year ended March 31, 2021 (FY21), net profit has declined by 22.8% YoY to Rs 2,903.82 crore. The pharma company’s board has declared a final dividend of Rs 2 per share.

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Liquor sales rise 6% in Q4; declines by 12% in FY21

The sales of Indian-made foreign liquor recovered in the January-March quarter (Q4) with a 6% growth, but it declined 12% in FY 2020-21 on an overall basis. States such as Uttarakhand, Himachal Pradesh, and Haryana reported over 40% growth in liquor sales. Maharashtra and Goa reported a 23% and 22% growth, respectively. According to estimates, the liquor industry contributes ~Rs 2 lakh crore to state exchequer through taxes and levies.

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Infibeam Avenues Q4 Results: Net profit at Rs 32 crore

Infibeam Avenues Ltd reported a consolidated net profit of Rs 32 crore for the quarter ended March (Q4 FY21). It had posted a net profit of Rs 24 crore in the corresponding quarter last year (Q4 FY20). The company’s gross revenue rose 42% YoY to Rs 201 crore in Q4 FY21. Its board has recommended a final dividend of Rs 0.05 per share. Infibeam Avenues’ board has also approved a further investment of Rs 1.05 crore in Avenues Payments India Pvt Ltd (RemitGuru). Ahmedabad-based Infibeam offers digital payments, e-commerce software, and internet services. 

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Petrol, diesel prices hiked for 14th time in May

The prices of petrol and diesel were hiked again on Thursday (May 27), touching fresh record highs across the country. In the national capital, the petrol price rose by 24 paise and that of diesel rose 29 paise. Following the latest price revision, petrol in Delhi is now retailing at Rs 93.68 per litre, while diesel is retailing at Rs 84.61 per litre. In Mumbai, petrol price neared Rs 100 per litre-mark and now stands at Rs 99.94 per litre.

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