Stampede Capital Ltd
Other Financial Services
FV – Rs 1; 52wks H/L –80/28.23; TTQ – 6 Lacs; CMP – Rs 44(As On July 26, 2016; 15.30);                          

            Market Cap – Rs 1005.36 Crs

Consolidated Financials and Valuations for FY16 (Amt in Rs Crs unless specified)

*Virtually debt free.

Consolidated Financials and Valuations for Q4 FY16

Valuation Parameters:

1. Long Term Debt to Equity – Nil
2. ROE % – 47
3. Market Cap/Sales – 5.2

Key Updates:

Stampede Capital said it is finalising the investment banker and global audit firms for listing a Singapore-incorporate subsidiary overseas.

http://www.vccircle.com/news/technology/2016/01/04/stampede-aims-overseas-listing-singapore-arm

Stampede is a Liquidity Provider and Market Maker of multiple exchanges such as SGX, CME, NSE, BSE, DGCX, HKEX, ICE and MCX-SX; driving millions of dollars trading volume everyday across the globe in nano seconds.

From July 25^th 2016 it has been listed on NSE.

The company operates three subsidiaries:

1. Stampede Cloud Services Pvt Ltd (Indian Subsidiary)
2. Stampede Financials Pte Ltd (Foreign Subsidiary)
3. *Stampede Technologies Pte Ltd (Step down Subsidiary)

* Stampede Technologies Pte Ltd is a subsidiary of Stampede Cloud Services Pvt Ltd

Stampede Financials Pte Ltd is a wholly own foreign subsidiary of the company whose Total Assets amounted to Rs. 77.09 Crs and Total Revenue generated to Rs. 108 Crs.

Overview:

• Stampede Capital Ltd is a financial technology company. They are Non-bank liquidity provider ti Fixed Income, Currencies and Commodities (FICC) products in AsiaPac and emerging markets.
• The Company is specialized in automation of knowledge work and cloud computing for financial markets.
• The Company provides electronic market making, which is an algorithm based on Bayesian conditional probabilities. The Company uses three types of artificial intelligence (AI) for automation of knowledge work, which includes conventional AI, computational AI and complex event processing.
• The Company’s direct market access (DMA) cloud platform that assists institutions, private bankers and hedge funds to reduce their total cost of ownership (TCO).
• The Company also provides various cloud solutions, such as dynamic portfolio insurance (DPI), tracking index model (TIM), voice web application platform (VWAP) cloud and risk management cloud.

• The Company primarily is a research driven Global FinTech House specialized in Data Handling (Big Data, Law of Large Numbers and Liquidity), Data Processing (Trade Flows & Hosted Management Solutions) and Data Management (Robo Advisory Platform).

What is Automated Trading?

An automated trading system (ATS) is a computer program that creates orders and automatically submits them to a market center or exchange. Automated trading systems are often used with electronic trading in automated market centers, including electronic communication networks, “dark pools”, and automated exchanges.

Five Core Strengths of Stampede :

1. Aggregating the Data Flows is with the lowest latencies.
2. Global connectivity is in Order Routing with the shortest path routing.
3. In-house SDE’s [Stochastic Differential Equations] for controlling Asymmetric flows. [Inventory Control].
4. Parallel processing of the flows is into a Giant Global Vector Matrix. [GPU and Parallel Processing Power].
5. Combining the expertise of SDE’s by creating the world’s best Actuaries / Quant World Integration.

Management:

• Venkat Srinivas Meenavalli – Chairman
• Emmanuel Dasi – CFO

Major Non-Promoter Holdings:

Consolidated Financial Trends (In Rs. Crs) :

The company on March 25, 2015 through preferential allotment has issued and allotted 1541000 Equity shares of Rs.10/- each at a premium of Rs.197/- per share and also allotted 268625 Equity Shares of Rs.10/- at a premium of Rs. 38/- per share, on April 21, 2014

On 7/1/2016 there was a stock split of face value Rs.10 per share to Rs.1 per share.

Debt is of short term period only. (Working capital purpose)

Standalone Financial Trends (In Rs. Crs) :

Oricon Enterprises Ltd
Speciality Chemicals
FV – Rs 2; 52wks H/L –73.80/39.25; TTQ – 1.24 Lacs; CMP – Rs 63 (As On July 11th 2016; 12.00);                                 

 Market Cap – Rs 989.40 Crs

Consolidated Financials and Valuations for FY16 (Amt in Rs Crs unless specified)

Consolidated Financials and Valuations for Q4 FY16

Valuation Parameters:

1. Long Term Debt to Equity – 0.28
2. ROE % – 2.9
3. Market Cap/Sales – 0.85

Clearwater Capital Partners exits its investment in the company by selling around 4.4% stake through open market.

India Holdings buys 1 Crs shares of Oricon Enterprises Ltd at Rs. 64.5 per share from the promoters as on March 2015.

http://www.moneycontrol.com/news/buzzing-stocks/india-holdings-buys-1cr-sharesoricon-enterprises_1334656.html

Indiabulls Real Estate Limited has announced that Tapir Realty Developers Ltd, a 100% subsidiary of the company, has entered into a joint development agreement with Oricon Properties Pvt. Ltd in which saleable property to the company will be 67000 sq.feet and 30% of the topline which the company expects to be around 650 – 700 Crs.

http://www.indiainfoline.com/article/news-top-story/indiabulls-real-estate-inks-pact-with-oricon-116060300807_1.html

Oricon Enterprises buys 70 per cent of Oriental Containers for Rs 105 crore

         (Marine logistics company Oricon Enterprises Ltd (OEL) has acquired 70 per cent stake in Oriental Containers Ltd (OCL) from its joint venture partners OC Holding Ltd, Mauritius, at a consideration of Rs 105 crore. With this, OCL has become, OEL’s 100 per cent subsidiary.)

http://articles.economictimes.indiatimes.com/2015-03-30/news/60644242_1_united-breweries-105-crore-united-spirits

Key Updates:

The company Owns about 1 acre land at prime location in Worli, Mumbai.

Subsidiaries:

1. Oricon Properties Pvt.Ltd – 100% Subsidiary (Holds about 2 acre land at Worli, Mumbai, Land parcel adjoining India Bulls Blu & Near Four Seasons Hotel, Worli, Mumbai)
2. Oriental Containers Ltd – 100 % Subsidiary (Market leader with experience of over 5 decades in Indian caps and closures Industry with well established brands across user industry and Strong presence across Globe through exports to ~40 countries)

The company manufactures complete range of Caps and Closures. During FY15-16 the company manufactured as follows:

3. United Shippers Ltd – 59.05 % Subsidiary (India’s Largest Marine logistics company handling Dry Cargo. Operates at 8 minor ports across 3 states with Fleet size of more than 300 equipments. Bought back shares of existing shareholders, increasing OEL holding to 59.05% from 50.19%)

Logiscor Ltd (Scorpio Group) holds 10.88% in USL and Mr. Vallabh Bhansali holds 8.18% in USL through family investments.

Minor ports contributing ~44% of total traffic in FY15

4. Shinrai Auto Services Ltd – 100 % Subsidiary (Exclusive dealer of Toyota cars in South Mumbai. It Operates 2 showrooms in Nariman Point and Worli)

Financials of Subsidiaries:

Overview:

• Oricon Enterprises Ltd is engaged in business of manufacturing of pentanes, liquid colorants, pet bottles and coal briquettes, which is a fuel product for industries.
• The Company operates in four segments, which include petrochemicals, trading, liquid colorants and pet bottle.
• The Company is the flagship company of Parijat Enterprises and is in real estate, marine logistics, packaging, petrochemicals and automobile dealership.
• The company has manufacturing facilities at Khopoli, Maharashtra for Pentanes & Murbad, Maharashtra for PET Bottles
• The company owns 1 acre at Worli which it plans to re-develop for residential and commercial purposes.

Management:

• Mr. S. J. Taparia – Chairman
• Mr. Rajendra Somani – MD
• Mr.Pramod Sarda – CFO

Major Non-Promoter Holdings:

Unquoted Investments by Oricon Enterprises:

Consolidated Financial Trends (In Rs. Crs) :

Kalyani Steels Ltd
Iron & steel
FV – Rs 5; 52wks H/L –205/107.4; TTQ – 12 K; CMP – Rs 183.5(As On July 8th 2016; 12:00) ;                           

 Market Cap – Rs 801.03 Crs

Consolidated Financials and Valuations for FY16 (Amt in Rs Crs unless specified)

Standalone Financials and Valuations for Q4 FY16

Valuation Parameters:

1. Long Term Debt to Equity – 0.19
2. ROE % – 19.26
3. Market Cap/Sales – 0.68

Overview:

• Kalyani Steels Ltd is a supplier of forging quality steel for a range of automotive applications, such as crankshaft, camshaft, connecting rods, gears, transmission shafts, axle beams and steering knuckles.
• The Company’s steel is used in commercial vehicles, passenger cars, as well as construction equipment.
• The Company also manufactures rounds for seamless tubes and supplies steel to all seamless tube producers.
• The Company offers a range of carbon alloy steel and low electricity resistivity (LER) steel.
• The Company also supplies high quality medium carbon, high carbon, medium alloy and micro-alloyed steels for a range of applications in energy, railways, defense, fasteners and material handling, among others.
• The Company manages and operates the composite Steel manufacturing facility at Ginigera.

HOSPET STEELS is a World Class Steel plant set up by way of strategic alliance between M/s Mukand limited of Mumbai and M/s Kalyani Steels Limited of Pune.

The Company has increased its Equity stake in Lord Ganesha Minerals Private Limited (LGMPL) from existing 50% to 77.50% and as a result LGMPL has become a ‘Subsidiary’ of the Company.

Kalyani Steels look at price cuts after China’s yuan devaluation

(http://in.reuters.com/article/india-steel-idINKCN0QI0XQ20150813?type=companyNew)

Raw material cost to be higher in Q1 FY17

http://www.moneycontrol.com/news/business/raw-materials-cost-to-be-higherq1fy17-kalyani-steel_6876301.html

China dumping is hurting domestic industry badly, said RK Goyal, MD, Kalyani Steel, adding that cutting prices further would lead to additional losses.

http://www.moneycontrol.com/news/business/domestic-inddilemma-%E2%80%93-to-cut-prices-or-prod-kalyani-steel_5017321.html

Management:

• Mr. R. K. Goyal – CMD
• Mr. B.M. Maheshwari – CFO

Major Non-Promoter Holdings:

Consolidated Financial Trends (In Rs.Crs) :

52 Week high was Rs 39+ a year ago in July 2015 & 52 Week Low was Rs 13 this April 2016

The Market Cap from @ Rs 500 crs a month ago is now kissing Rs 1000 crs

It was earlier called Indiabulls Securities Ltd

The uptick has been brilliant in quick time & the writing has been on the wall.. read that as Company Notifications on the BSE & NSE in the past few months

May 13, 2016 ~ Granting of 9.5 Million Stock Options at an exercise price of Rs 16 (current price at the time) under the ESOS 2009

June 15, 2016 ~ Board Approval of a Preferential Issue of  58.3 m Convertible Warrants to Promoters & CEO at exercise price of Rs 19.75

June 20, 2016 ~ EGM Notice for July 15, 2016 to pass the Preferential Issue as above & SALE OF INVESTMENT 

July 2, 2016 ~ Granting of 19.7 M Stock Options at an exercise price of Rs 24.15 (price a few days ago) under ESOSs 2008 & 2009

So what’s the Big Deal ?

Big Deal is being planned to happen & that’s disclosed in the June 20, 2016 Notification of SALE OF INVESTMENT for improving liquidity & reduction of debt purpose which is Item No 2 and relevant part extracted as below

“….to sell upto 100% of shares held by Indiabulls Distribution Services Limited, a wholly owned subsidiary of the Company (“IDSL”), in India Land and Properties Limited, a wholly owned subsidiary of IDSL, on the terms and conditions, including the consideration, which shall be more than the amount invested by IDSL, in such shares, as the Board may finalize” 

This actually is the Sale of One Indiabulls Park,Ambattur, Chennai which was bought in November 2014 at @ Rs 600 crs from Madrid Based NRI Investor Harish Fabiani (he’s also invested in Edelweiss & Indiabulls Group Companies + others)

FY 15 Consolidated Accounts as on March 31, 2015

Consolidated FY 15 Accounts of Indiabulls Ventures Ltd shows Net Fixed Tangible Assets at Rs 550 crs  of which 77% is this Property reflected  with a aggregate value of Rs 426 crs ~ Rs 320 crs for the Building + Rs 15 crs for Furniture + Rs 91 crs for Plant & Machinery

Long Term Debt at March 31, 2015 was Rs 331 crs, all of which relating to the One Indiabull Park Property ~ 150 crs 10 year (monthly EMI) Lease Rental Discounting Facility + Rs 185 crs 5 year Loan Against Property

FY 15 also shows Goodwill on Consolidation of Rs 109 crs, most of which is related to this property acquisition by subsidiaries

FY 16 Consolidated Accounts as on March 31, 2016 reveal :

• Networth was Rs 332 crs with FV Rs 2 Equity at Rs 58.57 crs giving a Book of Rs 11.3 per share
• PAT was Rs 74 crs (half of FY 15 PAT of  Rs 151 crs) on Sales of Rs 376 crs (Largely Rs 312 crs from Broking + Rs 55 crs from Lease Rentals) with Finance Costs at Rs 148 crs (FY 15 were just Rs 61 crs) ~ EPS computes to Rs 2.5
• Long term Debt had moved up to Rs 392 crs while Short Term Debt was up from Rs 1353 crs to Rs 1708 crs
• Fixed Assets had moved up to Rs 575 crs & Goodwill to Rs 122 crs

So if the Chennai Property is being sold, what will be the Consideration ? ~ as per Item 2 of the Agenda of the EGM on July 15,2016 it has to be more than the Cost which was Rs 600 crs => @ Rs 3000/sq feet for the 10 acres Land + three 16 storey’s Commercial Buildings offering 2 m sq feet on commercial rent on the Plot

So what will they get for this one & a half year from purchase ? ~ Rs 700 crs or Rs 800 crs or….?

Why are they selling the property so soon after purchase? ~ getting a good price or not contented with low lease rentals flow & less than full occupancy rate or tightening of liquidity & margins in broking related activities or….

Whatever… Company will become Long Term Debt Free ~ Proceeds will wipe out full Long term Debt & reduce Short Term Borrowings …. Finance Costs will reduce significantly …. Company will be on a stronger platform with Own Funds of a few Hundreds of Crores to scale up business operations…they can create fresh leverage on this to scale up faster

The Dilution in Equity too will be significant on exercise of Stock Options & the Preferential Issue ~ the recent notifications show fresh new equity of 8.75 crs shares. Incremental Equity of  Rs 17.50 crs will be created …. Equity will cross Rs 76 crs on this fresh grants (when option exercised) and issue (when converted)… Reserves will be pumped up by over Rs 160 crs on the premium…. Thus Networth of Rs 332 crs from FY 16 end will move up to Rs 510 crs

Assuming Rs 750 crs sale price of Chennai Property the Gross Proceeds work out to over Rs 25/share on current Equity & @ Rs 20/share on diluted Equity

Book Value will move up smartly from FY 16’s Rs 11.3 despite Fresh Equity Dilution (assuming employees, promoters & CEO opt for the shares at their Exercise Price in FY 17 itself) as exercise price is higher than current Book Value…. it will further strengthen with the Net Gains after Tax effect on Sale of Chennai property + FY 17 Normal Higher Earnings (advantage of lower Finance Costs indicated)

FY 17 should show an extraordinary high EPS on account of the sale + FY 18 onwards should grow normal EPS significantly from FY 16 levels

So from the 17 Subsidiaries,India Land & Properties Ltd will cease to be one on the Chennai Sale…proceeds will go to another wholly owned subsidiary Indiabulls Distribution Services Ltd…. what will it do with the money left over after settling Long term Debt & reducing Short Term Debt & paying of Tax on the Deal?…… Maybe invest in another Property/s ?… or will it issue huge dividend to parent to transfer net proceeds & in turn the listed parent part a large part of proceeds to shareholders as dividend ?… The Notice for the EGM of course states the sale is being considered only to improve liquidity & reduce debt

Company also had been paying Rs 1 dividend every quarter earlier in 2015 which they dropped to Rs 0.50 for the last two interims

Deloitte Haskins & Sells LLP, the auditors have given a  clean report… their office too is in Indiabulls Financial Centre in Lower Parel, Mumbai

Disregarding Indiabulls Group’s past controversies, clearly Promoter Sameer Gehlaut will be on a roll as his this company gets re-rated & his Promoter Holding moves up from 33%+ to 43%+…interestingly he’s not on the Board of Directors of this one

So was this 100% price rise indicated in the past months & days ?

I sense it was clearly,if not with the May ESOS grants at Rs 16,then surely a few days ago on June 15,2016 when Board approved the Preferential to Promoters & CEO at Rs 19.75 & a few days ago on July 2 where the ESOS grants were double in number from May at a higher price of Rs 24.15 !… so many approvals & grants in quick succession ?….had to be because of price running away & the fact that they had to be vested with exercise price at current price levels…. Interestingly the EGM Notice came up on June 20,2016 just 5 days after the June 15 notification of Preferential Issue

Now the Price is up 15% yesterday to Rs 33…. and if it maintains or grows from here any further grants will be at this or higher price… that should be another giveaway if it does happen

Promoters,CEO & Employees & Shareholders all being seen to be rewarded …so who’s complaining as long as Price runs up!…. CEO gets Rs 3 crs + annual pay & he regularly returns a large part to the company by exercising ESOS options + now with this 4 m convertible warrants being issued to him… converting his income to equity surely has to be a vote of faith.

Interestingly the EGM begins at 10 am on Friday,July 15, 2016…. hopefully outcome may be relayed to Exchanges during trading hours on the same day…. wonder if the One Indiabulls Park sale has already been finalised & seeking the mandatory shareholders permission for this special resolution is a mere formality…or will they then look for buyers after obtaining this permission

Anybody out there knows what’s the current Sq ft buy out rate of Iconic Big Commercial Property in Ambattur, Chennai !?

Flash Update, Morning of Wednesday, July 13, 2016

Economic Times  mentions other Media sources for a possible raid by Income Tax authorities on Offices aross India of the IndiaBulls Group…… their scrips are down 5% to 8%…. IB Ventures is down 8%+ at Rs 31.50 levels….. EGM scheduled for Friday should go ahead unless Raid spills over

lls Real Estate

Flash Update, Wednesday, March 15, 2017

IB Ventures finally notifies the exchanges of the Subsidiary Shareholding sale for Rs 685 crs that holds the Chennai Property.Sale was to it’s own Group Company Indiabu

After dropping to even below Rs 20 in November & December 2016 and even available at Rs 20 levels till last month in the  first week of Feb 2017 the Share Price closed 10% upper circuit today at Rs 41.95 on both BSE & NSE on this announcement. The Share Price actually began recovering lost ground quite quickly last month.Insiders obviously knew of the deal intragroup itself

Now What !?

Disclaimer : Have an interest in IB Ventures