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ipo IPO Watch

Tatva Chintan Pharma, Chemplast Sanmar Chem receives approval from the SEBI for IPOs

According to a Monday update with Sebi, Chemplast Sanmar and Tatva Chintan Pharma Chem acquired Sebi’s findings on July 2 and June 30, respectively. Any firm planning to conduct a public offering, such as an initial public offering (IPO), a follow-on public offering (FPO), or a rights issue must adhere to Sebi’s guidelines.

According to the draught papers, Chemplast Sanmar’s Rs 3,500 crore IPO includes a Rs 1,500 crore fresh issue of equity shares and a Rs 2,000 crore offer for sale. Sanmar Holdings Ltd and Sanmar Engineering Services Ltd are selling shares worth Rs 1,850 crore and Rs 150 crore, respectively, in the offer for sale.

About Chemplast Sanmar

Chemplast Sanmar is a prominent specialised chemicals company that specialises in speciality paste PVC (polyvinyl chloride) resin and bespoke manufacturing of raw ingredients and intermediates for the pharmaceutical, agrochemical, and fine chemicals industries. The net proceeds would be used to pay for the early redemption of the company’s non-convertible debentures (NCDs) to the tune of Rs 1,238.25 crore. The money will also be put to good use in the company.

About Tatva Chintan Pharma Chem

According to the draft red herring prospectus, Tatva Chintan Pharma Chem’s IPO consists of a fresh issue of equity shares worth Rs 225 crore and an offer of sale by current founders and shareholders for Rs 225 crore .The proceeds from the new offer will be utilised to pay capital expenditures for the company’s Dahej manufacturing facility, as well as upgrades to its R&D facility in Vadodara and other general business reasons.

Source; Economic times

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Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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Property

Initiating Coverage of Pexa with a AUD 13.20 Fair Value Estimate and a Wide Moat Rating

Close up young business woman holding house model on hands with free copy space. Real estate loan banking concept. Building and construction.

Pexa’s competitive advantages will be undermined somewhat following the introduction of interoperability in 2023. However, this will only impact its network effect, with customer switching costs likely to remain robust.

In turn, Pexa’s economic moat should enable relatively high investment returns and profit margins and the asset-light business model should enable strong cash generation and ultimately sustainable franked dividends.

Despite Pexa’s attractive attributes, the shares look expensive. Our base-case equity value of AUD 2.2 billion, or AUD 13.20 per share is 23% below the market price of AUD 17.15.

The strong market price is due to a combination of Pexa’s highly defensive annuity-style earnings coupled with record low interest rates, investor excitement about Pexa’s growth options, and recent real estate market strength. Link Group (ASX:LNK), which owns 43% of Pexa, offers cheaper exposure to Pexa.

Company Profile

Pexa is the first electronic conveyancing platform for real estate in Australia and derives revenues by charging fees to facilitate real estate transactions over its network. The emergence of electronic conveyancing creates a number of efficiencies and replaces the historical labour-intensive process which was vulnerable to errors. Having achieved dominance of the Australian electronic conveyancing market, Pexa is looking to expand overseas and replicate its success in international locations. The company was founded in 2010 by a group of Australian state governments with Australia’s “big four” banks beginning to transact on the platform shortly after.

(Source: Morningstar)

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Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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Currencies Trading Ideas & Charts

5 Cryptos Outperformed Bitcoin in FY21, delivering more than 2500%

Euro currency money banknotes background. Payment and cash concept. Announced cancellation of five hundred euro banknotes. Top view.

While Bitcoin returned a remarkable 300 percent to its investors last year, it pales in comparison to the returns from the following cryptocurrencies.

Theta (CRYPTO: THETA)

Theta token is the first cryptocurrency on the list to outperform Bitcoin in terms of returns. This is a ‘governance’ token, which means that its holders have a say in the project’s development. Theta’s creators want to shake up the traditional content delivery techniques.

As advisors, the initiative has Steve Chen, co-founder of Youtube, and Justin Kan, co-founder of Twitch. During the financial year, Theta grew by 2745 percent, confirming its position as the 20th largest cryptocurrency by market capitalization, at $8.17 billion. At the moment, the token is worth $8.16.

Solana (CRYPTO: SOL)

This concept was first envisioned in 2017 and was launched earlier this year by The Solana Foundation, a Geneva-based company. Solana’s proof-of-history consensus is a crucial and appealing feature, as it allows for better protocol scalability.

Solana can process 50,000 transactions per second, according to the project’s website. During FY21, the Solana token soared 3,706 percent to $47.32 per SOL. Over the same time span, this is more than ten times the return on Bitcoin.

Theta Fuel (CRYPTO: TFUEL)

The second native token associated with the Theta video streaming project is Theta Fuel. There are 5.23 million TFUEL tokens in circulation right now. As more TFUEL is generated as ‘staking rewards,’ this amount rises.

During FY21, the value of Theta Fuel increased by 4,510 percent. An tremendous increase that far outweighs Bitcoin’s. This cryptocurrency has a market capitalization of $2.54 billion.

Dogecoin (CRYPTO: DOGE)

During the previous financial year, Dogecoin most certainly exceeded all of its investors’ expectations. Elon Musk, the CEO of Tesla Inc, boosted the dog meme-inspired cryptocurrency with a series of tweets.

The possibility of it being adopted by the electric vehicle industry spread like wildfire. Despite the fact that the frenzy has subsided, dogecoin continues to produce incredible gains. Dogecoin increased by 5,095 percent in the previous fiscal year, nearly 52 times. The cryptocurrency is now the sixth most valuable in the world.

Polygon (CRYPTO: MATIC)

Polygon (formerly known as MATIC) is an Indian blockchain scalability platform called ‘the Ethereum’s Internet of Blockchains’. Polygon states it can offer up to 65,000 transactions per second with confirmation times of less than 2 seconds.

More than 350 decentralised applications have been built on Polygon thanks to a mix of extremely low fees and additional features. In FY21, the Polygon price soared 6,760 percent due to increased use of the network and its token. That result puts Bitcoin’s 300 percent performance to disgrace.

(Source: The Motley Fool)

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Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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Dividend Stocks

The Strategic review of Tabcrop Favours a Demerger Rather Than a Sale

Further, Tabcorp’s retail exclusivity has little value when punters can place bets with competitors from their smart phones while inside TAB-exclusive venues, such as pubs. We currently model Tabcorp as a combined entity with the demerger earmarked for completion by June 2022, and make no changes to our AUD 3.40 fair value estimate and no-moat rating.

With long-dated licences across all Australian states other than Western Australia, the lottery business enjoys an monopolistic position in its addressable market, and this is bolstered by the scale of its national prize pool. Optimistic about the lottery segment’s opportunity to better realise these competitive advantages and support a strong dividend payout ratio once unshackled from the beleaguered wagering business–the highly cash-generative lotteries business has historically acted as a funding source for capital-intensive wagering investment.

While signaling it remains opens to improved bids, Tabcorp has baulked at the myriad conditions and hurdles to get the various proposals lobbed for its wagering and media business over the line–notably approval from state gaming regulators and racing industry partners.

Company Profile

Tabcorp operates through principally three segments: wagering and media, lotteries and keno, and gaming services. The firm conducts wagering activities under the TAB brand both online and physically in every Australian state and territory other than Western Australia, reaching 90% of the population through a network of retail venues. Tabcorp also operates regulated lotteries in every Australian state except Western Australia. In addition, Tabcorp Gaming Solutions provides services to electronic gaming machine venues.

(Source: Morningstar)

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Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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Global stocks

Positive Position for ABF in Q3 with Primark’s Share Gains In U.K. Reflecting Strength of Brand

Primark achieved volume and value share improvements on a two-year basis during the seven-week period following reopening in the overall U.K. clothing market, which includes online sales, a reflection of its excellent brand and execution, despite not offering a transactional online channel.

We increase our fair value estimate to GBX 2,560 per share from GBX 2,350 to account for the time value of money and stronger sales growth rebound in Primark as reopening gradually resumes. Our discounted cash flow-derived fair value estimate is slightly lower than our sum-of-the-parts valuation at GBX 2,620 per share, with Primark accounting or about 50% of the group’s valuation. Although uncertainty around restrictions has been significantly reduced in recent weeks, the stock already trades in 3-star territory, and we advise investors to wait for a better entry point.

Company Profile

Associated British Foods is a diversified international retail, food, and ingredients group with 130,000 employees and operations in 50 countries across Europe, southern Africa, the Americas, Asia, and Australia. The group sells branded grocery products, grows and processes sugar, supplies farmers with crop input and animal feed, and runs the popular Primark clothing retail chain. It also supplies ingredients like bakers’ yeast, enzymes, lipids, and cereal specialties. Some 40% of sales are in the U.K., and Primark generates more than half of the firm’s operating profit.

 (Source: Morningstar)

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Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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IPO Watch

India’s Paytm Plans $2.3 Billion of the Biggest IPO

The $2.3 billion IPO of the Paytm in India will be the leading and expected to be the biggest public listing in India in terms of dollar after the state-run miner coal India in 2010 and reliance power in 2008.

The timing is ideal for an IPO because competition is heating up and Paytm’s popularity is waning; the IPO could be the difference in their ability to compete.

Paytm’s Offer for Sale

Paytm extended an offer for sale (OFS) to its employees earlier this month, allowing them to sell all or portion of their equity shares in the IPO or keep them. The IPO plans were approved by Paytm’s board “in principle,” and the preliminary prospectus is anticipated to be filed in July.

According to Indian regulations, 10% of shares must be floated within two years, and 25% must be floated within five years. Paytm’s stock must be a combination of new and existing stock.

Its investors include Alibaba of China and Softbank of Japan and Paytm is seeking shareholder approval at the EGM to offer up to 120 billion rupees in new share issue and maintain an alternative to retain up to 1% of an over-subscription.

For the IPO, Paytm has enlisted the help of JPMorgan Chase, Morgan Stanley, ICICI Securities, Goldman Sachs, Axis Capital, Citi, and HDFC Bank.

Company Profile

Paytm is one of the biggest company providing financial services that offers full-stack payments & financial solutions to consumers, offline merchants and online platforms. One97 Communications is the parent of Paytm and is established by Vijay Shekhar Sharma. It’s headquarter is in Noida, Uttar Pradesh.

(Source: THE ECONOMIC TIMES and PYMNTS.com)

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Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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Global stocks Shares

Admiral Benefits from a Pricing Flaw in Motor Insurance

Admiral tends to aggressively increase its customer numbers in times of pricing flux by undercutting the competition in terms of pricing. We have seen this at least once before, and we believe that much more recently, such as last year, we saw this happen again. As Admiral grows these customer numbers, it increases not only its profit from underwriting but also these ancillary sources.

There are three factors causing flux in U.K. motor insurance prices: emerging from lockdown, regulatory pricing review, and regulatory restructuring of claims. These are all affecting motor insurance prices and giving Admiral Opportunities to undercut the competition and expand its customer base.

We believe consensus completely ignores this dynamic of customer growth at Admiral, and on this

Element we are very different. Our estimates for customer numbers are only three fourths of the numbers that investors witnessed during the last global financial crisis, but we are still well over double the 590-basis-point average annual customer growth as per Visible Alpha consensus.

Company Profile

Admiral is a personal lines insurer that writes most of its business in the United Kingdom. The company operates three business divisions: U.K. insurance, international car insurance, and other. This is a reduction from four since April 2021, when new CEO Milena Mondini de Focatiis announced the sale of Admiral’s price comparison businesses within Penguin Portals. This included www.confused.com, www.rastreator.com, www.lelynx.fr, and the group’s technology division, Admiral Technologies. The sale excluded Admiral’s U.S. price comparison business, www.compare.com. The total net transaction value was GBP 460 million, which Admiral intends to return to shareholders.

(Source: Morningstar)

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Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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IPO Watch

Zomato’s $1 Billion IPO Approved by SEBI

The company filed papers in April seeking regulatory approval for the Rs. 7,875 crore IPO, the year’s most anticipated public offering.

The approval comes after one of the company’s largest shareholders, Info Edge India, decided to reduce its offer for sale (OFS) in the IPO to Rs. 375 crore from Rs. 750 crore previously.

Info Edge India Ltd., one of Zomato’s early investors, will sell its stake in the company in the upcoming IPO for Rs750 crore.

Zomato will raise Rs. 7,500 crore from the public offering through the issuance of new equity shares. The proceeds will be used to fund organic and inorganic growth opportunities worth over Rs. 5,500 crore by the company.

The much-awaited initial public offer (IPO) of online food delivery and restaurant discovery platform Zomato is expected to open for subscription on July 19 at a price band of Rs 70-72 per share, said people with direct knowledge of the development. The offer size will likely be as much as Rs 9,375 crore at this price.

Revenue

Zomato reported revenue of Rs 2,743 crore in FY20, a 463 percent increase from revenue of Rs 487 crore in FY18. Its revenue was Rs 1,368 crore in the nine months ending December 31, 2020. In FY18, FY19, FY20, and the nine months ended December 31, 2020, the company reported losses of Rs 106.9 crore, Rs 1,010 crore, Rs 2,385.6 crore, and Rs 682 crore, respectively.

Company Profile

Zomato is an Indian multinational restaurant aggregator and food delivery companyfound in 2008. Zomato provides online information, menus and user-reviews of restaurants as well as food delivery options from partner restaurants in select cities.

(Source: The Economic Times)

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Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

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Currencies Trading Ideas & Charts

In May, India Inc’s foreign borrowings fell by 51% to USD 738 million.

In May, no borrower used rupee-denominated bonds to raise cash from international markets, as in the previous month.

Among the largest borrowers were BW Global United LPG India Pvt Ltd (USD 198.41 million for capital goods imports), Renew Sun Waves (USD 140 million for new projects), and Indian Oil Corporation NSE 0.32 percent (USD 100 million for working capital requirements). According to the data, Tata SIA Airlines Ltd raised USD 110.40 million for the import of capital goods.

Source:Economic times

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.

Categories
Property

Acquisition of EzStorage and Strong Pandemic Performances Elevating the Public Storage FVE to $279

Given the short-term nature of these leases and the growing demand for self-storage space, management had been able to achieve material rent increases from new and existing tenants. The industry has experienced tremendous growth in the last several years, and we see further societal shifts fueling that growth for years to come, albeit at a more modest pace.

Public Storage has achieved impressive growth over the years, but we do not think management can increase prices indefinitely. The low cost of building and the undifferentiated nature of self-storage facilities allow supply to enter the market and absorb tenants who eventually get priced out of Public Storage units.

Raising Public Storage FVE to $279 on Acquisition of ezStorage and Strong Pandemic Performance

We are increasing our fair value estimate for no-moat Public Storage to $279 from $207 after incorporating the recently announced acquisition of ezStorage for $1.8 billion into our model. The 48 self-storage facilities acquired are almost all high quality in Mid-Atlantic markets with higher-than average barriers to entry and a strong growth outlook. The impact of the company’s stronger-than-anticipated first-quarter results, which led us to increase our short-term internal growth outlook..

Additionally, we now anticipate increased storage facility usage over the next few years as the millennial generation seeks to move from their urban apartments to suburban homes, which could create additional short-term demand as they look for a new home.

Financial Strength

Public Storage’s balance sheet has long been the gold standard among real estate investment trusts light on debt and heavy on progressively cheaper preferred stock, with a good portion of acquisitions and facility developments fueled directly with cash flow from operations. Public Storage’s industry-leading EBITDA coverage ratio separates its balance sheet from its self-storage REIT competitors. Public Storage benefits from a diversified stream of financing, including minority investments from which it receives cash dividends.

Bulls Say

  • Public Storage’s commanding lead in supply restricted markets leads to consistent revenue growth.
  • Life changes related to the corona virus crisis will increase demand for self-storage facilities.
  • Public Storage’s industry-leading balance sheet leaves room for low-cost consolidation opportunities in a fragmented market.

Company Profile

Public Storage owns and operates over 2,500 self-storage facilities in 38 states, with over 150 million net rentable square feet of storage space. Through equity interests, it also has exposure to the European self-storage market through Shurgard Europe and to an additional 29 million net rentable square feet of commercial space in the United States through PS Business Parks.

(Source: Morningstar)

General Advice Warning

Any advice/ information provided is general in nature only and does not take into account the personal financial situation, objectives or needs of any particular person.