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Wednesday, 16 June 2021

Five Star Business Finance (FSBL) is eyeing an IPO in the next 12 to 18 months.

*Source- Annual Report of the Company & Moneycontrol News Section- https://www.moneycontrol.com/news/business/startup/we-did-not-grow-until-we-perfected-the-business-model-five-star-finance-chairman-6722021.html

Tuesday, 8 June 2021

Paytm to lend Rs 743 crore to two Vijay Shekhar Sharma companies ahead of IPO

One97 Communication Ltd , parent company of online payments app Paytm is set to extend Rs 743 crore funding to two companies owned by founder Vijay Shekhar Sharma. This development comes ahead of the $3 billion IPO planned later this year. The proposal will be put to vote at the company's annual meeting on June 30.

According to the proposal, as sent in a note to shareholders after Paytm board meeting on May 28, the company will buy Rs 491.93 crore of optionally convertible debentures to be sold by VSS Holdings Pvt Ltd, where Vijay Shekhar Sharma (VSS) is a director. The debentures will mature in 10 years and bear an annual interest rate of 15 per cent, as mentioned in a report in Livemint.

The note, as per the daily, stated that the funding will be one in one or more tranches. The payments company will own 96 per cent in VSS HoldCo on converting the debentures into shares that can be done at any point.

VSS HoldCo will utilise the funds for its primary business activities in the country. VSS HoldCo is involved in activities related to financial intermediation.

The other loan, as proposed, is an amount of Rs 250.79 crore to VSS Investco Pvt Ltd through inter-corporate deposits or ICDs. This is likely to be done in one or more tranches.

In the note to shareholders, VSS Investco will have to repay the amount within 12 months or before Paytm's IPO, stated the company. Sharma will raise external funding or sell his shares in the company to repay the loan. This amount will also be used for principal business activities.

Paytm is one of the leading players in the payment space in the country. Due to the increase in demand for digital transactions amid the pandemic, Paytm's valuation rose significantly to more than $25 billion in the last 18 months. The company is aiming to launch its IPO in November this year. The IPO might witness partial exit of existing investors including SoftBank.

Source- Business Today

Wednesday, 28 April 2021

Tamilnad Mercantile Bank plans IPO of up to Rs 1,200 crore this fiscal

The Tamilnad Mercantile Bank (TMB), which will turn 100 this year, will come out with an initial public offering (IPO) of about Rs 1,000 crore to Rs 1,200 crore, said a top official of the bank.

The official also said that TMB logged an after tax profit of Rs 603.33 crore for the year ending March 31, 2021, as compared to Rs 407.69 crore reported in the corresponding period of the previous fiscal.

The bank's total business for FY 2020-21 stood at Rs 72,511.45 crore (deposits Rs 40,970.42 crore, advances Rs 31,541.03 crore), up from Rs 65,061.21 crore (deposits Rs. 36,825.03 crore, advances Rs. 28,236.18 crore) reported last fiscal.

Speaking to reporters of Business Standard, K.V. Rama Moorthy, Managing Director and Chief Executive Officer (CEO), said that there will also be an offer for sale of 5 per cent so that the existing shareholders can dilute their holdings.

He said TMB will file the necessary IPO papers with the Securities and Exchange Board of India (SEBI) in 8-10 weeks time.

"Overall, the post issue dilution will be about 10 per cent," he said.

With a capital adequacy ratio (CAR) of 18.94 per cent (Basel III norms), Moorthy agreed that TMB is not short of capital and the IPO proceeds will be used in branch expansion and others.

The Tuticorin-based TMB currently has about 509 branches and Moorthy said the target is to increase that to 650 by the next fiscal.

Though TMB doesn't have any pending new branch licence, it plans to add 66 branches this year and the rest in the next fiscal.

The bank has 1,132 automatic teller machines (ATM), 47 e-lobbies and 260 cash recycler machines.

On the impact of Covid-19, Moorthy said he is apprehensive about how it would pan out and there may not be another countrywide lockdown.

With Covid-19 vaccination, the situation would improve and it is for the Central government and the RBI to decide on loan moratoriums for micro, small and medium enterprises (MSME), Moorthy said.

Wednesday, 3 February 2021

Gaming Firm Nazara Technologies files for IPO - https://3adeal.com/it-software-en/nazara-technologies-limited/

Global gaming and media sports company Nazara Technologies has filed a draft red herring prospectus (DRHP) on January 14 with market regulator Securities and Exchange Board of India (SEBI) for its initial public offering (IPO).

The veteran investor Rakesh Jhunjhunwala-backed company had earlier received approval from SEBI for its initial public offering in April 2018. However, it was yet to file its DRHP.

The IPO will make Nazara the first Indian gaming company to enlist in the market. As per the DRHP filed by Nazara, the company will offer 49,65,476 equity shares for sale by promoters and investors with a face value of Rs 4.

At the beginning of January, financial and wealth advisor Plutus Wealth Management LLP had bought shares in Nazara worth Rs 500 crore from WestBridge Capital.

Founded in 2000 by Nitish Mittersain, Nazara has asserted itself in the interactive gaming and sports sector through investments and acquisitions in various gaming categories including esports, edutainment, infotainment, fantasy sports, multiplayer games like carrom and mobile cricket games, etc. Over the last two decades, Nazara has also expanded globally to 74 countries across Asia, Africa and the Middle East.

In 2019, Nazara had invested in PaperBoat App, Absolute Sports, Crimzocode Education Private limited and fantasy sports platform Halaplay Technologies. In 2020, the gaming and sports company became a majority stakeholder in PaperBoat App and Halaplay Technologies.