July 8, 2020 - Jeena Scriptech Alpha Advisors

Anil Ambani’s 6 companies: Hit for a Six 08/07/2020

Anil Ambani’s 6 companies: Hit for a Six 08/07/2020
Company Name	Promoter Holding	Pledged	Market Cap	CMP	FV	52 W High	52 W Low	All Time High	All Time Low	Equity Cap	Net Worth	Short term Debt	Long term Debt	Total Debt	Debt/Equity	Auditors
	%	%	Rs Cr.	Rs	Rs	Rs	Rs	Rs	Rs	Rs Cr.	Rs Cr.	Rs Cr.	Rs Cr.	Rs Cr.
Reliance Capital Ltd.	1.51	3.42	288	11.4	10	62	3.7	2925 (2008)	3.7 (2019)	253	3374	0	16160	16160	4.8	M/s. Pathak H. D. & Associates
Relaiance Communications Ltd. (Q2)	5.18	0	617	2.2	5	2	0.55	844 (2008)	0.55 (2019)	1383	-35955	30270	0	30270	NA	M/s. Pathak H. D. & Associates
Reliance Infrastructure Ltd.	14.7	66.09	915	34.8	10	54	8.65	2632 (2008)	8.65 (2019)	263	9792	2541	11759	14300	1.5	M/s. B S R & Co. LLP, M/s. Pathak H.D. & Associates
Reliance Power Ltd.	19.29	53.75	1147	4.1	10	5	1	375* (2008)	1 (2019)	2805	11869	4353	19861	24214	2.0	M/s. B S R & Co. LLP, M/s. Pathak H.D. & Associates
Reliance Home Finance Ltd.	49.58	96.63	123	2.5	10	14	0.71	115 (2017)	0.71 (2019)	485	1467	0	12440	12440	8.5	Dhiraj & Dheeraj
Reliance Naval and Engineering Ltd. (Q2)	25.33	100	216	2.9	10	10	0.7	120 (2010)	0.7 (2019)	738	-11168	6025	302	6327	NA	M/s. Pathak H. D. & Associates
			3306

* The price on 11th Feb 2008 was Rs 600, when it just touched and fell down. However on 30th May the company released a bonus issue of 3:5. Hence 375 is the adjusted price.

Public Sector Undertakings (IPO)

08.07.2020	Public Sector Undertakings (IPO)
Name	Date	IPO Price	Listing Price	FV	CMP	Change in CMP	52week High	52week Low	Mkt Cap	Equity Cap	Networth	Total Debt	BV	Net Revenue	PAT	EPS	P/E	P/BV	Promoter Holding
		(Rs.)	(Rs.)	(Rs.)	(Rs.)	%	(Rs.)	(Rs.)	(Rs.Crs)	(Rs.Crs)	(Rs.Crs)	(Rs.Crs)	(Rs.)	(Rs.Crs)	(Rs.Crs)	(Rs.)			%
Bharat Dynamics Ltd.	23-03-2018	428.00	360.00	10.00	393.25	9.24	454.25	147.00	7208	183	2607	2	142.23	3211	535	29.18	13.47	2.76	87.75
Garden Reach Shipbuilders & Engineers Ltd	10-10-2018	118.00	104.00	10.00	218.55	110.14	249.40	105.30	2486	115	1040	0	90.81	1659	163	14.27	15.31	2.41	74.50
General Insurance Corporation Of India*	25-10-2017	912.00	425.00	5.00	152.25	-64.18	333.85	81.70	26676	877	23944	0	136.48	50345	-287	-1.64		1.12	85.78
Hindustan Aeronautics Ltd	28-03-2018	1215.00	1169.00	10.00	947.00	-18.99	1028.00	448.00	31667	334	13264	5775	396.66	21816	2898	86.66	10.93	2.39	89.97
Ircon International Ltd (Q3)*	28-09-2018	470.00	82.00	2.00	96.40	17.56	119.76	58.20	4533	94	4442	2043	94.46	3643	370	39.33	2.45	1.02	89.12
Mishra Dhatu Nigam Limited	04-06-2018	90.00	87.00	10.00	213.45	145.34	278.00	108.50	3998	187	957	134	51.07	749	158	8.44	25.29	4.18	74.00
MSTC Ltd	29-03-2019	120.00	111.00	10.00	140.80	26.85	235.15	70.40	991	70	474	259	67.32	1296	97	13.78	10.22	2.09	64.75
New India Assurance Company Ltd.*	13-11-2017	800.00	374.00	5.00	117.75	-68.52	179.05	75.00	19405	824	18061	0	109.59	28198	1436	8.71	13.52	1.07	85.44
Rail Vikas Nigam Limited (Q3)	11-04-2019	19.00	19.00	10.00	19.95	5.00	29.30	10.20	4160	2085	4616	3390	22.14	10499	506	2.43	8.22	0.90	100.00
RITES Ltd	02-07-2018	185.00	190.00	10.00	259.90	36.79	331.00	191.00	6498	250	2633	33	105.33	2735	633	25.33	10.26	2.47	87.40
SBI Life Insurance Company Ltd	03-10-2017	700.00	733.00	10.00	849.00	15.83	1030.00	520.00	84903	1000	8743	0	87.43	43843	1422	14.22	59.70	9.71	69.80

Notes:

1) General Insurance Corporation Of India: Bonus Issue 1:1 ex Bonus date 12 July, 2018

2) New India Assurance Company Ltd: Bonus Issue 1:1 ex Bonus date 27 June, 2018

3) Ircon International Split 10-2 ex date 3 April 2020

Daily Notifications as on 8th July 2020

https://www.bseindia.com/markets/MarketInfo/DispNewNoticesCirculars.aspx?page=20200708-32

1. Scrip code : 540108
Name : Tiaan Ayurvedic & Herbs Limited
Subject : Announcement under Regulation 30 (LODR)-Allotment
We wish to inform you that pursuant to the resolution passed by the shareholders, the Board of Directors of the Company has approved the allotment of 12,91,700 equity shares of ? 10/- each as fully paid up bonus equity shares on July 08, 2020, in the ratio of 1:4 that is 1 bonus equity share of Rs 10/- each for every 4 fully paid up equity shares to the members whose name appeared in the register of Members as on July 3, 2020, the record date fixed for the purpose. As part of the aforesaid allotment, 426 bonus equity shares representing fractional entitlement(s) of eligible Members have been consolidated and allotted to Mrs. Kajal Jain, (DIN 08129655) director of the Company as a trustee appointed by the Board. The trustee will sell such equity shares at the prevailing market rate as soon as possible and distribute the net sale proceeds, after adjusting the cost and expenses in respect thereof, among the eligible Members in proportion to their respective fractional entitlements.

2. Scrip code : 534309
Name : NBCC (India) Limited
Subject : Announcement under Regulation 30 (LODR)-Scheme of Arrangement
Sir, Pursuant to Part A of Schedule III of Regulation 30 of SEBI (LODR) Regulations, 2015, it is hereby informed that the Board of Directors of NBCC (India) Limited, in their 478th Board Meeting held on July 6, 2020, approved the draft Scheme of Merger of NBCC International Limited and NBCC Environment Engineering Limited, wholly-owned subsidiaries, with NBCC (India) Limited (Holding Company). Detailed salient features are mentioned in the attachment.

3. Scrip code : 522108
Name : Yuken India Ltd.
Subject : Announcement under Regulation 30 (LODR)-Scheme of Arrangement
Compliance under Regulation 37(6) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 for the proposed Scheme of Amalgamation of Yuflow Engineering Private Limited, a wholly owned subsidiary of the Company, with the Company.

Max Financial Services Ltd.

Max Financial Services Ltd.

Key Details :
CMP (Rs.)		463
52 Week H/L (Rs.)		611/280
Market Cap (Rs.Crs)		12568
Face Value (Rs.)		2.0
TTQ (in ‘000)		37

Shareholding Pattern (%)
Promoter	28.31
Institutions	59.69
Public	12.10

Overview:

Max Financial Services Limited (MFS), a part of the USD 3.2 bn Max Group, is the holding company for Max Life, India’s largest non-bank, private life insurance company.
Max Financial Services owns and actively manages a majority stake in Max Life Insurance Company Limited, making it India’s first listed company focused exclusively on life insurance. Max Life is a joint venture with Mitsui Sumitomo Insurance (stake ~25%), a Japan-headquartered global leader in life insurance.
Max Life has an extensive presence across India through its own offices and distribution partners and is the 4th largest private Life Insurance player in the country.

Management :

Name	Designation
Analjit Singh	Chairman (Non-Executive)
Mohit Talwar	Managing Director

Financials (Consolidated) :

(Rs Mn)	FY 15	FY 16	FY 17	FY 18	FY 19	FY 20
Operating Income	149077.3	117098.9	152467.2	163377.4	194982.9	182399.8
EBITDA	7174.4	5311.7	7710.5	5310.7	4840.0	5235
Adjusted Profit	2802.2	2527.2	3949.0	2864.3	2627.0	2687.7
EPS	10.5	9.5	14.8	10.7	9.8	10.0
OPM (%)	4.8	4.5	5.1	3.3	2.6	2.9
NPM (%)	1.9	2.2	2.6	1.8	1.3	1.5
PE (x)	44.1	49.0	31.4	43.5	47.6	46.5
RoE (%)	8.5	12.9	16.9	15.7	12.8	12.5
RoCE (%)	13.3	17.7	23.0	20.4	17.9	15.7

Source : Capitaline

Recent Updates:

Axis Bank and Max Financial Services Deal Background

Axis Bank Ltd (Axis Bank) and Max Financial Services Limited (MFS) announced the signing of definitive agreements to become joint venture partners in Max Life Insurance Company Limited (MAXL).
Axis Bank will hold 30% stake in Max Life post transaction closure.
The development will result in a mutually beneficial and enduring relationship between Axis Bank and Max Life and bring the stability of a long term partnership to India’s fourth largest private life insurance franchise.
The joint venture arrangement will significantly improve Max Life’s competitive position vis a vis its competitors, including the other large bank owned private life insurers.

Deal

Max Financial Services presently holds a 72.5% stake in Max Life and Mitsui Sumitomo Insurance (MSI) owns 25.5% stake. Axis Bank also has a minor stake in the Max life.
The aforesaid transaction with Axis Bank follows the ongoing swapping by MSI of 20.6% stake that it holds in Max Life with a 21.9% stake in MFS.
MFS also plans to purchase MSI’s balance stake in Max Life.
Post the swap transaction, Axis Bank will buy out 29% of MLI from MFS (currently holds ~1% in Max Life).
Post completion of the series of transactions, Max Life will become a 70:30 joint-venture between Max Financial Services and Axis Bank.
The proposed transactions are subject to approval of requisite corporate and regulatory authorities (including IRDAI, RBI and CCI). Company expects deal to be completed within one year.
Valuation of stake will be dependent on the tax adj. BV of MAXL (Dec-19: Rs 56bn, 29% at Rs 16bn) as on transaction date. Axis Bank indicated that they will buy 55.6 crore shares of Max Life for a total consideration (estimated) of Rs. 1,592 crore, but the final amount will depend on exact pricing at the time of transaction. (*Only guided).

Mitsui Sumitomo swap indicative process:

The construct of the transaction is such that Mitsui Sumitomo (MSI) will first swap part of its shareholding in MAXL for a shareholding in the holdco, i.e., Max Financial Services (MFS).
As a result of this swap, MFS will end up owning ~94% stake in MLI and MSI will still hold ~5% in MLI which, at a later stage, would be bought out by MFS.
Post the swap transaction, Axis Bank will buy out 29% of MLI from MFS (currently holds 1% in Max Life). Finally, MAXL would be reverse merged with MFS, effectively becoming a listed entity.
The proposed transaction structure awaits regulatory approvals.

Share Price Trend:

Year	Open (Rs)	High (Rs)	Low (Rs)	Close (Rs)
2010	222	245	132.9	147.45
2011	148.45	214.75	137	148.25
2012	146.25	266.7	140.45	241.9
2013	244	264.9	150.5	215.2
2014	217	442.7	177.6	394.9
2015	397	585.75	381.1	496.1
2016	509.2	627.4	303	548.5
2017	547.5	683.2	513	591.15
2018	589.3	604.2	343.95	445.25
2019	449	544.9	361.1	534.7
2020	535.8	611.05	279.75	476.65

Max Group

2016 – Demerger/split of Max India Ltd into three entities –

Max Financial Service Ltd with the insurance business,
Max India Ltd with the healthcare and allied businesses and
Max-Ventures and Industries Ltd with specialty packaging film business.

Max Financial Services (MFS)
- After the split, Max India was renamed as ‘Max Financial Services Ltd (MFS) and solely focus on the group’s flagship life insurance activity, through 72.1% (then in 2016) in Max Life, making it the first Indian listed company solely focused on life insurance.

Max India Ltd
- The second vertical “Max India Ltd” (MIL) continued to manage investment in the high‐potential health and allied business comprised of Max Healthcare, Max Bupa, Antara Senior Living and supported by a corporate management service team.

Max Ventures & Industries Ltd
- The third vertical will be named Max-Ventures and Industries Ltd (MVIL), which will house the investment in the group’s manufacturing subsidiary Max Specialty Films ‐ one of the leaders in the specialty packaging films busines

A Plethora of Buybacks

The Buyback of shares is governed by Sec 68, 69 and 70 of the Companies Act, 2013; and further by the Companies (Share Capital and Debentures) Rules, 2014. For Listed Companies, the SEBI Regulations for Buyback will also be applicable.

The listed Indian Equity space is seeing a plethora of buyback issues. Given the nervousness and uncertainty in this COVID-19 unreal reality it is not surprising that companies are resorting to buybacks to take advantage of low share prices and in an endeavour to re-assure shareholders.

Buybacks can be carried out in two ways:

Shareholders may be presented with a tender offer whereby they have the option to submit (or tender) a portion or all of their shares within a certain time frame and at a premium to the current market price. This premium compensates investors for tendering their shares rather than holding on to them.
Companies buy back shares on the open market over an extended period of time.

Advantages of Buyback:

It is an alternative mode of reduction in capital without requiring approval of the Court/CLB(NCLT),
To improve the earnings per share;
To improve return on capital, return on net worth and to enhance the long-term shareholders value;
To provide an additional exit route to shareholders when shares are undervalued or thinly traded;
To enhance consolidation of stake in the company.
To prevent unwelcome takeover bids;
To return surplus cash to shareholders;
To achieve optimum capital structure;
To support share price during periods of sluggish market condition;
To serve equity shareholders more efficiently.

Summary of Recent Buybacks:

Company	Buyback price	Buyback Type	Announcement	Stake	Value (Cr)
Emami Ltd	300	Open Market	27 Mar 20	1.43%	194
Ramkrishna Forgings Ltd	250	Open Market	21 Mar 20		40
Motilal Oswal Financial Services Ltd	650	Open Market	21 Mar 20	7.51%	150
Dalmia Bharat Ltd.	700	Open Market	21 Mar 20		500
Delta Corp Ltd.	100	Open Market	28 Mar 20	4.61%	125
Just Dial Ltd.	700	Tender Offer	30 Apr 20	4.84%	220
Tanla Solutions Ltd.	81	Tender Offer	22 Apr 20	13.54%	154
Thomas Cook India Ltd.	57.5	Tender Offer	28 Feb 20	6.90%	150
Coral India Finance and Housing Ltd.	17	Tender Offer	14 Feb 20	24.86%	21.08
Tip Industries Ltd	140	Tender Offer	13 Feb 20	9.23%	18.9
Granules India Ltd	200	Tender Offer	21 Jan 20	4.92%	250
Aster DM Healthcare Ltd.	210	Tender Offer	09 Jan 20	1.13%	120
NIIT Technologies Ltd.	1725	Tender Offer	23 Dec 19	3%	336
Jagran Prakashan Ltd.	75	Open Market	09 Dec 19	4.55%	101.2
JB Chemicals and Pharmaceuticals Ltd.	440	Tender Offer	12 Nov 19	3.68%	130
Indiabulls Ventures Ltd	150	Tender Offer	11 Oct 19	12.61%	1000
IndiaBulls Real Estate Ltd.	100	Tender Offer	11 Oct 19	11%	500
Kaveri Seed Company Ltd.	700	Tender Offer	24 Sep 19	4.44%	196
HEG Ltd	5500	Tender Offer	26 Nov 18	3.41%	750
Bharat Heavy Electricals Ltd.	86	Tender Offer	25 Oct 18	5.16%	1628
Freshtrop Fruits Ltd	110	Tender Offer	23 Aug 19	8.23%	11
NIIT Ltd.	125	Tender Offer	10 Aug 19	15.99%	335
Star Cement Ltd.	150	Tender offer	21 Jun 19	1.62%	102
SmartlinkHoldings Ltd.	130	Tender Offer	14 Jun 19	24.85%	54.6
Adani Ports Ltd.	500	Tender offer	04 Jun 19	1.89%	1960
Triveni Engineering Ltd.	100	Tender Offer	03 Jun 19	3.88%	100
BSE Ltd	680	Tender Offer	07 May 19	13.61%	460
Greaves Cotton Ltd	175	Tender Offer	02 May 19	5.16%	240
KPR Mills Ltd.	702	Tender Offer	29 Apr 19	5.17%	263.31

All figures in Rs Crs except for face value and no. of shares:

Company	FV	No of Shares	Equity Pre	Equity Post	Networth Pre	Networth Post
Emami Ltd	1	6466667	45	45	2214	2026
Ramkrishna Forgings Ltd	10	1600000	33	31	8819	8795
Motilal Oswal Financial Services Ltd	1	2307692	15	15	3050	2902
Dalmia Bharat Ltd.	2	7142857	39	38	10561	10075
Delta Corp Ltd.	1	12500000	27	26	1955	1842
Just Dial Ltd.	10	3142857	65	62	1288	1099
Tanla Solutions Ltd.	1	19012346	15	13	702	567
Thomas Cook India Ltd.	1	26086957	38	35	1716	1592
Coral India Finance and Housing Ltd.	2	12400000	10	7	124	128
Tip Industries Ltd	10	1350000	14	13	80	75
Granules India Ltd	1	12500000	25	24	1765	1527
Aster DM Healthcare Ltd.	10	5714286	505	500	3160	3097
NIIT Technologies Ltd.	10	1947826	62	60	2303	1986
Jagran Prakashan Ltd.	2	13493333	59	57	1936	1862
JB Chemicals and Pharmaceuticals Ltd.	2	2954545	16	15	1584	1460
Indiabulls Ventures Ltd	2	66666667	115	102	6653	5787
IndiaBulls Real Estate Ltd.	2	50000000	90	80	3546	3146
Kaveri Seed Company Ltd.	2	2800000	14	13	1234	1044
HEG Ltd	10	1363636	40	39	4597	3861
Bharat Heavy Electricals Ltd.	2	189302326	734	696	31503	30253
Freshtrop Fruits Ltd	10	1000000	12	11	74	73
NIIT Ltd.	2	26800000	33	28	1924	1643
Star Cement Ltd.	1	6800000	42	41	1783	1688
SmartlinkHoldings Ltd.	2	4200000	3	3	245	199
Adani Ports Ltd.	2	39200000	414	406	25567	23685
Triveni Engineering Ltd.	1	10000000	26	25	1110	1020
BSE Ltd	2	6764706	10	9	2976	2530
Greaves Cotton Ltd	2	13714286	49	46	1007	795
KPR Mills Ltd.	5	3750855	36	34	1585	1341

Daily Notifications as on 7th July 2020

https://www.bseindia.com/markets/MarketInfo/DispNewNoticesCirculars.aspx?page=20200707-39

1. Scrip code : 532689
Name : PVR Ltd.
Subject : Sub: Outcome Of The Meeting Of The Board Of Directors
Rights Issue Price: Rs. 784 per Equity Share (including a premium of Rs. 774 per Equity Share over face value of Rs. 10 per Equity Share); and (b) Rights entitlement ratio:7 fully paid-up Equity Shares for every 94 Equity Share held by eligible shareholders as on the record date; and (c) the record date for the purpose of determining the shareholders eligible to apply for the equity shares in the Rights Issue as July 10, 2020 (‘Record Date’); and (d) Rights Issue schedule: – Issue opening date: July 17, 2020; – Issue closing date: July 31, 2020; and – Last date for on market renunciation: July 24, 2020. The ‘Letter of Offer’ will be filed with BSE Limited and the National Stock Exchange of India Limited and will be submitted with Securities and Exchange Board of India.