Daily Bulletin (January 27, 2020)

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https://www.bseindia.com/markets/MarketInfo/DispNewNoticesCirculars.aspx?page=20200127-42

 

  1. Scrip code : 530117
    Name : Fairchem Speciality Limited
    Subject : Announcement under Regulation 30 (LODR)-Scheme of Arrangement
    This is to bring to your kind notice that as per the directions of Hon’ble NCLT, Mumbai Bench vide its order made on 22nd January, 2020 which was available to us on January 23, 2020, we have sent ‘Notice’ convening meeting of the equity shareholders of the Company on Tuesday, 25th February, 2020 at 4:30 p.m. at Conference Hall, Ahmedabad Textile Mills Associaation, Ashram Road, Ahmedabad – 380009 for the purpose of considering and if thought fit, approving, with or without modification(s), the proposed Composite Scheme of Arrangement and Amalgamation amongst Fairchem Speciality Limited (‘Applicant Company ‘ or ‘Demerged Company ‘ or ‘Transferee Company’) and Fairchem Organics Limited (‘Resulting Company’) and Privi Organics India Limited (‘Transferor Company’) and their respective shareholders (‘Scheme’ or ‘Composite Scheme of Arrangement and Amalgamation’).
  2. Scrip Code: 532652
    Scrip Name:  Karnataka Bank Ltd.
    Subject: Bonus Issue
    Inter alia, has discussed various options of augmenting the capital funds and approved the following, subject to the approval of shareholders of the Bank to be obtained through postal ballot/e-voting:
    1. Issue of Bonus Shares to the existing shareholders: The Board at its meeting held today (i.e., 27.01.2020) has recommended issue of Bonus shares in the proportion of 1 (One) Equity share of Rs.10/- each for every 10 (Ten) Equity shares held by the shareholders of the Bank as on the record date as may be determined by the Board/Committee at a later date.
    2. Qualified Institutions placement (QIP): Board has consented to create, offer, issue and allot equity shares having face value of Rs. 10 each to the Qualified hstitutional Buyers (QIBs) as defined under SEBI (Issue of Capital and Disclosure Requirements) Regulations, ,2018 (“SEBI ICDR Regulations”), such that the total number of equity shares to be issued shall not exceed 15,00,00,000 (Fifteen Crore) equity shares of the Bank.
  3. Scrip code : 540366
    Name : Music Broadcast Limited
    Subject : Corporate Action-Board recommends Bonus Issue
    In furtherance with our Notice dated January 16, 2020, and pursuant to Regulation 30(2) and 33 of the SEBI Listing Regulations, the Board of Directors of the Company at their meeting held today i.e. on Monday, January 27, 2020, which commenced at 4.30 p.m. and concluded at 6.00 p.m., has inter-alia, considered and Recommended issue of 1 (one) Bonus Share for every 4 (Four) equity shares held by the equity shareholders of the Company to shareholders
  4. Scrip code : 539526
    Name : Suncare Traders Limited
    Subject : Board approve Sub-Division of Equity Shares & Bonus Issue
    Suncare Traders Ltd has informed BSE that the Board of Directors of the Company at its meeting held on January 27, 2020, inter alia, have: – For Sub-Division of Face Value of Equity Shares of Rs. 10/- into Rs. 2/- per Equity Share. – To Issue Bonus Shares in the ratio of 2:1, subject to approval of Shareholders at Extra Ordinary General Meeting of the Company to be held on February 25, 2020.

 

Polycab India Limited

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Fast Moving Electrical Goods

TTQ: 0.33 lakh

Polycab India Limited ( Rs Crores)
23/01/2020 CMP FV Market Cap 52W H 52 W L Share capital Net worth BV Total borrowings Total income PAT EPS P/BV P/E
Q3 20 1012 10 15052 1149 525 148.8 3755.8 252.4 84 2404 216.6 14.6 4 69.5
FY 19 1012 10 141.2 2855 202.2 191 8049 500 35.4 5 28.6

PIL is engaged in the business of manufacturing and selling wires and cables. It is the largest manufacturer of wires and cables in India and a growing player in FMEG (Fast-Moving Electrical Goods) space. The company manufactures and sells various types of cables, wires, electric fans, LED lighting and luminaires, switches and switchgears, solar products and conduits and accessories.

Polycab India Ltd Listed on April 16, 2019 at Rs. 633 and has given stellar returns since. Almost doubling in price since listing and providing a 14% growth in Profit After Tax this quarter .
A significant Portion of Polycab’s revenue comes from several orders of more than Rs 1 crore. At the same time, because Polycab is not dependent on a few large customers, and concentration risk is not a source of worry.

Polycab has been a consistent performer in the last 5 years as displayed below.

5 Year Financial Performance:

2019 2018 2017 2016 2015
Total Income 7956 6770 5494 5207 4708
PAT 500 358 240 188 160
EPS 35 25 17 13 11
Net Worth 2855 2347 2004 1785 1629

Share Holding Pattern:

Pre-IPO Post-IPO
Shares % holding Shares % holding
Promoters 9.36 66.30% 8.53 57.40%
Promoter Group 1.78 12.60% 1.67 11.30%
Others 2.9 21.10% 4.65 31.30%

Management: 

  1. Chairman and Managing Director: Inder Jaisinghani -He has been the Chairman and MD since 2014 and been a part of the company since 1997
  2. CFO and Full Time Director: Shyam Lal Bajaj- He has held several leadership positions in other companies being; Director, Finance at Vedanta and CFO at Hindustan Zinc.

Current Operating Infrastructure:

Manufacturing facilities 24
Manufacturing locations 7
Warehouse locations 30
Branch Offices 20
Authorized dealers and distributors 3100+
Retail outlets 1,00,000+

 

 

 

 

 

 

 

 

 

Daily Bulletin (January 21, 2020)

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https://www.bseindia.com/markets/MarketInfo/DispNewNoticesCirculars.aspx?page=20200121-44

  1. Scrip code : 540879
    Name : Apollo Micro Systems Limited
    Subject : Board Meeting Intimation for Fixation Of Board Meeting On Friday, January 24, 2020 At The Registered Office Of The Company
    Apollo Micro Systems Ltdhas informed BSE that the meeting of the Board of Directors of the Company is scheduled on 24/01/2020 ,inter alia, to consider and approve This is to inform you that meeting of Board of Directors of the Company is scheduled to be held on Friday, January 24, 2020, at the registered office of the Company, inter-alia to consider and discuss regarding acquisition of majority stake in Ananya SIP RF Technologies Private Limited, and any other business with the permission of the Chair
  2. Scrip code : 539018
    Name : Beekay Steel Industries Ltd.
    Subject : Announcement under Regulation 30 (LODR)-Acquisition The Board of Directors of the Company in its meeting held on date i.e. 21.01.2020 has, inter alia, transacted the followingbusiness: 1. The Board has approved acquisition of the businesses of M/s. Durable Ispat & Alloys Private Limited including the assets & liabilities of the said Company as ongoing concern basis on such price and other terms as may be negotiated in the best interest of the Company. 2. The aforesaid Company is basically engaged in trading of Iron & Steel products. Please note that the meeting commenced at 12.30 P.M. and concluded at 5.45 P.M. The information is provided in compliance of Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This may please be informed to the members of your Stock Exchange.
  3. Scrip code : 530239
    Name : Suven Life Sciences Ltd.
    Subject : Cost Of Acquisition – Post Demerger – Suven Life Sciences Ltd Please find enclosed herewith communication being issued for general guidance of shareholders of the Company in relation to apportionment of the cost of acquisition of shares of Suven Life Sciences Limited and Suven Pharmaceuticals Limited as per the provisions of the Income Tax Act, 1961.
  4. Scrip code : 532687
    Name : Repro India Ltd.
    Subject : Outcome Of Board Meeting Dear Sir / Madam,
    We wish to inform you that the Board of Directors at its meeting held today i.e. January 21, 2020 reviewed the progress of the Scheme of Arrangement between Repro Books Limited (‘Transferor Company’ and the wholly owned subsidiary of Repro India Limited) and Repro India Ltd. (‘Transferee Company’) and further informed that the Order is expected to receive from National Company Law Tribunal (‘NCLT’) in the month of February 2020 and accordingly the scheme effect can be given as per the provisions of the Companies Act, 2013. The Company also reviewed the overall business operations and the same is in accordance with the plan of the Company. The meeting of the Board commenced at 11.00 a.m. and concluded at 2.30 p.m. This is for your information and records.
  5. Scrip code : 532523
    Name : Biocon Ltd.
    Subject : Allotment Of Shares By Biocon Biologics India Limited (“BBIL”) To Activ Pine LLP (An Affiliate Of True North Fund VI LLP) Further to our intimation dated January 9, 2020, in relation to execution of a share subscription agreement (‘SSA’) and a shareholder agreement (‘SHA’) between Biocon Limited (the ‘Company’), Biocon Biologics India Limited (‘BBIL’) and Activ Pine LLP (an affiliate of True North Fund VI LLP), we wish to inform you that the subscription money aggregating to Rs. 536.25 Crores have been received by BBIL from Activ Pine LLP. Consequently, the Board of BBIL has approved the allotment of 50,25,463 equity shares (Fifty Lakhs Twenty Five Thousand Four Hundred and Sixty Three Only) of Rs. 10 each at a price of Rs. 1,067.07 per equity share (including a premium of Rs. 1,057.07 per equity share) to Activ Pine LLP. This intimation is being made in compliance with Regulations 30, read with Schedule III and other applicable regulations of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended from time to time (‘SEBI Listing Regulations’).

 

Tata Motors Share V/S DVR

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What is a DVR?
DVRs or differential voting rights are shares that carry different voting rights than ordinary shares. In this case, voting right for one DVR was equal to 10% of the voting right of an ordinary share and a 5% higher dividend. Therefore, 10 Tata Motors DVRs carry 1 vote.

Tata Motors was the first company to issue a DVR in India. It received a very underwhelming response where the underwriter JM Financial had to renegotiate terms with the company and the Tata Group had to pick up most of the stake which was up for sale.

DVRs also take a haircut in terms of price due to their lower voting rights, lower liquidity and the reluctance of shareholders which may need greater incentives to invest. This Haircut is the difference between the equity share price and the price of the DVR. In developed countries this haircut is lower. Higher liquidity and trading volumes also reduce this haircut.

Tata Motors DVR Dividends:
The DVR Holders receive a higher dividend on Face Value making the Dividend yield higher for DVR Holders.

Dividend
Date Tata Motors DVR Tata Motors Equity
03-Aug-09 6.5 6
10-Aug-10 15.5 15
19-Jul-11 20.5 20
18-Jul-12 4.1 4
30-Jul-13 2.1 2
09-Jul-14 2.1 2
18-Jul-16 0.3 0.2

 

Equity Share Price V/S DVR Price

A few things become evident by looking at the above chart:

  1. The % difference between the DVR and Equity share tends to move inversely with the equity share price. I.e. As the equity share price of Tata Motors falls, the % difference between the price of the DVR and equity share increases.This means that the price of the DVR has fallen at a greater rate in comparison to the equity share.
  2. The % difference between the price of the DVR and Equity Share is at a record high at 59.5%
  3. The average % difference between the DVR and share price since 2015 is 41.4%. . The range for the % difference is shown below:
Date Tata Motors DVR Price Tata Motors Equity Share Price % Difference
Lowest 28-Jan-16 267.5 334.2 20.0
Highest 11-Dec-19 64.15 158.45 59.5

 

  1. As the % difference increases, the return provided by the DVR in comparison to the equity share decreases.Since the % difference between the equity share price and the DVR is at a record high, now is a good time to consider investing in the DVR in place of the Equity share if one is looking to invest in Tata motors as Historical data suggests that the Equity Share Price and DVR % difference should converge to its average or at least decrease once the company starts doing better which will mean a higher % return for DVR holders in comparison to equity share holders and a much higher dividend yield.

 

If the company’s performance improves in the future, the DVR will provide greater capital appreciation to its holders.

 

Daily Bulletin ( December 6, 2019)

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https://www.bseindia.com/markets/MarketInfo/DispNewNoticesCirculars.aspx?page=20191206-44

  1. Scrip code : 532407
    Name : MOSCHIP TECHNOLOGIES LIMITED
    Subject : Announcement under Regulation 30 (LODR)-Scheme of Arrangement The Hon”ble NCLT, Hyderabad bench, vide its order dated 04/12/2019 has been approved the Scheme of Amalgamation of First Pass Semiconductors Private Limited with MosChip Technologies Limited from the appointed date of Scheme. i.e. with effect from 01st April, 2018
  2. Scrip code : 531212
    Name : Nalin Lease Finance Ltd.
    Subject : Intimation Under Regulation 30 Of The Securities And Exchange Board Of India (Listing Obligations And Disclosure Requirements) Regulations, 2015
    With regards to the captioned matter and in continuance of our letter dated 28th November, 2019, we would like to inform you that the Scheme of Arrangement involving Amalgamation of Amee Finance Limited, Gandhi Shroff Services Private Limited, Nalin Services Limited and Nalin Consultancy Services Limited with Nalin Lease Finance Limited (‘Scheme’) has become effective upon filing of certified copy of order of the Hon’ble National Company Law Tribunal, Ahmedabad Bench (‘NCLT’) sanctioning the scheme with the Registrar of Companies, Gujarat on 05th December, 2019. The Scheme has become effective from the Appointed Date, i.e., April 1, 2018.
  3. Scrip code : 540078
    Name : Mitsu Chem Plast Limited
    Subject : Board to consider Bonus Issue Mitsu Chem Plast Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on December 12, 2019, inter alia, to: 1. To consider and approve increase in Authorised Share Capital of the Company. 2. To consider and approve the Issue of Bonus. 3. To migrate the Company from SME segment of BSE Limited to Main Board of BSE Limited.
  4. Scrip code : 539026
    Name : SSPN Finance Limited
    Subject : Board approves Bonus Issue SSPN Finance Ltd has informed BSE that the Board of Directors of the Company at its meeting held on December 06, 2019, inter alia, has transacted the following Business : – Approved and recommended issuance of fully paid up Bonus Shares in the ratio of 1:1 i.e. 1 (One) fully paid up equity share for every 1 (One) equity share held, subject to shareholders’ approval.
  5. Scrip code :526235
    Name : Mercator Limited
    Strategic Sale of Participating Interest (PI) in the Oil Block CB-ONN-205/9 (CB-9) of Mercator Petroleum Limited, a material subsidiary of the Company. The above sale is subject to approval of specified lenders, shareholders of the Company and further regulatory approval(s) as may be applicable.

 

Daily Bulletin (November 27, 2019)

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https://www.bseindia.com/markets/MarketInfo/DispNewNoticesCirculars.aspx?page=20191127-26

  1. Scrip code : 541770
    Name : CreditAccess Grameen Ltd.
    Subject : Announcement under Regulation 30 (LODR)-Acquisition We wish to inform you that the Board of Directors (‘Board’) of CreditAccess Grameen Limited (the ‘Company’), at its meeting held on November 27, 2019 approved: (i) the acquisition of up to 76.2% of the share capital of Madura Micro Finance Limited (‘MMFL’) by the Company from its existing shareholders (the ‘Acquisition’); and (ii) a scheme of arrangement amongst the Company, MMFL and their respective shareholders and creditors, providing for the amalgamation of MMFL into the Company (the ‘Amalgamation’ and together with the Acquisition the ‘Transaction’). The Acquisition is subject to obtaining necessary approvals from the regulatory authorities such as the Reserve Bank of India and other customary conditions precedent.
  2. Scrip code : 500477
    Name : Ashok Leyland Ltd.,
    Subject : Announcement under Regulation 30 (LODR)-Press Release / Media Release Please find attached a copy of the communication being released to the Press on bagging of an order by the Company for 1750 buses from Tamil Nadu State Transport Undertakings.
  3. Scrip code : 533163
    Name : ARSS Infrastructure Projects Limited
    Subject : Announcement under Regulation 30 (LODR)-Award_of_Order_Receipt_of_Order
    This is to intimate to your good-self that a work order of Rs. 281,11,62,900.00 (Rupees Two Hundred Eighty One Crore Eleven Lakh Sixty Two Thousand Nine Hundred) only for ‘Construction of 2 -Lane road of Potin to Pangin section of NH-13 from Km 0.00 to Km 44.35 (Packaage-1) in the State of Arunachal Pradesh under Arunachal Pradesh Package of Roads and Highways of SARDP-NE (Tender ID No.2019_MoRTH_492540_1), have been awarded in favour of one of our Joint Venture (JV) ‘ARSS-Nabam Tullon LLP (JV)’ by Office of Chief Engineer (Zone-V), Director General (RD) & Special Secretary, Government of India, Ministry of Roads Transport & Highways, on 26.11.2019 which was intimated to the company on 27.11.2019. A copy of LOA (letter of Acceptance) of Award is enclosed herewith. The same is for your kind perusal and record.

 

Daily Bulletin (November, 26 2019)

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https://www.bseindia.com/markets/MarketInfo/DispNewNoticesCirculars.aspx?page=20191126-38

 

  1. Scrip code : 526951
    Name : Stylam Industries Limited
    Subject : Announcement under Regulation 30 (LODR)-Acquisition Pursuant to the provisions of Regulations 30 of Securities and Exchange Board of India (Prohibition and Insider Training) Regulations, 2015, This is to inform you that Stylam Industries Limited have acquired 34% stake in Alca Vstyle Sdn. Bhd., a Company incorporated under the laws of Malaysia.
  2. Scrip code : 540595
    Name : Tejas Networks Limited
    Subject : Announcement under Regulation 30 (LODR)-Press Release / Media Release Please find enclosed press release titled: ‘Tejas Networks enters into Strategic Partnership with Bharat Electronics Limited Receives purchase orders of over INR 60 crores’.
  3. Scrip code : 532281
    Name : HCL Technologies Ltd
    Subject : Intimation Of Record Date For Bonus Issue We would like to inform you that the record date for determining the entitlement of the equity shareholders of the Company for the bonus shares has been fixed for December 7, 2019, subject to the approval by the shareholders for issuance of bonus shares and increase in authorized share capital of the Company as proposed vide Postal Ballot Notice dated October 26, 2019.
  4. Scrip code : 540727
    Name : Poojawestern Metaliks Limited
    Subject : Corporate Action-Board recommends Bonus Issue
    The Board of Directors in their meeting held on today has 1. Recommended the issuance of bonus equity shares in the ratio of 1:1 [i.e. 1(One) bonus equity share of `10/- each for every 1 (One) fully paid-up equity share held as on record date] subject to the approval of shareholder’s approval. The record date for reckoning eligible shareholders entitled to receive bonus shares will be communicated later.

 

Daily Bulletin (November, 25 2019)

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https://www.bseindia.com/markets/MarketInfo/DispNewNoticesCirculars.aspx?page=20191125-37

  1. Scrip code : 532179
    Name : Corporation Bank
    Subject : In-Principle Approval Of Alternative Mechanism (AM) For The Amalgamation Of Corporation Bank And Andhra Bank Into Union Bank Of India.I
    n-principle approval of Alternative Mechanism (AM) for the Amalgamation of Corporation bank and Andhra Bank into Union bank of India.
  2. Scrip code : 515085
    Name : Restile Ceramics Ltd.
    Subject : Board Meeting Intimation for Sub: Intimation Of Board Meeting RESTILE CERAMICS LTD.has informed BSE that the meeting of the Board of Directors of the Company is scheduled on 29/11/2019 ,inter alia, to consider and approve Dear Sir/Madam, Sub: Intimation of Board Meeting The Board of Directors had considered the draft Scheme of Amalgamation and Arrangement between Restile Ceramics Limited (‘RCL’ or ‘Transferor Company 1’) and Atreya Finance Private Limited (‘AFPL’ or ‘Transferor Company 2’) with Bell Granito Ceramica Limited (‘BGCL’ or ‘Transferee Company’) in its Board Meeting held on 14th November 2019. Owing to the requirement of further information, the Board of Directors hereby inform that the said matter shall be considered in its meeting on 29th November 2019. You are requested to take the above on your record. Thanking You. Yours Faithfully, For Restile Ceramics Limited Authorised signatory
  3. Scrip code : 533271
    Name : Ashoka Buildcon Limited
    Subject : Announcement under Regulation 30 (LODR)-Award_of_Order_Receipt_of_Order In continuation to the announcement made on November 18, 2019, Ashoka Buildcon Limited (‘the Company’) further updates that the Company’s subsidiary viz. Ashoka Concessions Limited (‘ACL’) has received a Letter of Award (LOA) from National Highways Authority of India (‘NHAI’) for the Project viz. Four laning of NH-161 from Kandi (Design Km 0.000) (Km 498.250 of NH-65) to Ramsanpalle (Design Km 39.980/Existing Km 44.757) (Design Length = 39.980 Km) in the State of Telangana under Bharatmala Pariyojna on Hybrid Annuity Mode. The accepted Bid Project Cost is Rs.1,000 Crore. This is for your kind information.
  4. Scrip code : 522263
    Name : JMC Projects (india) Ltd.
    Subject : Announcement under Regulation 30 (LODR)-Award_of_Order_Receipt_of_Order JMC secures new orders of Rs. 615 Crores
  5. Scrip code : 500387
    Name : Shree Cements Ltd.,
    Subject : Announcement under Regulation 30 (LODR)-Qualified Institutional Placement The QIP Committee at its meeting held today i.e. on 22nd November, 2019, has inter alia, passed the following resolutions: a. Approved the closure of the issue period for the QIP today i.e. on 22nd November, 2019; b. Determined and approved the issuance of 1243523 Equity shares of Rs. 10 each at issue price of Rs. 19300 per Equity Share (including a premium of Rs. 19290 per Equity Share), [which is at a discount of 2.56% i.e. Rs. 506.46 per Equity Share to the floor price of Rs. 19806.46 per Equity Share], determined according to the formula prescribed under Regulation 176(1) of the SESI ICDR Regulations, for the Equity Shares to be allotted to eligible qualified institutional buyers pursuant to the QIP; c. Approved and adopted the placement document dated 22nd November, 2019; and d. Approved and finalized the confirmation of allocation note (“CAN”) to be issued to the eligible qualified institutional buyers, intimating them of allocation of Equity Shares, pursuant to the QIP.

Daily Bulletin (November 22, 2019)

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https://www.bseindia.com/markets/MarketInfo/DispNewNoticesCirculars.aspx?page=20191122-27

  1. Scrip code : 509053
    Name : Banas Finance Limited
    Subject : Announcement under Regulation 30 (LODR)-Scheme of Arrangement In respect to the Amalgamation in form of merger under section 230 to 232 of Companies Act 2013 amongst ‘Proaim Enterprises Limited’ (the Transferor Company-1), ‘Axon Ventures Limited’ (the Transferor Company-2) and ‘Rockon Enterprises Limited’ (the Transferor Company-3) collectively referred to as ‘Transferor Companies’ with ‘Banas Finance Limited’ (Transferee Company) the copy of order from National Company Law Tribunal for convening meeting of Equity shareholders & creditors, delivered on 6th November, 2019 and received by us on 22nd November, 2019
  2. Scrip code : 542753
    Name : MAHAAN IMPEX LIMITED
    Subject : Open Offer Finshore Management Services Ltd (“Manager to the Offer”) has submitted to BSE a copy of Public Announcement under Regulation 13(1) and 15(1) of SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, as amended (“SEBI (SAST) Regulations, 2011”) to the equity shareholders of Mahaan Impex Ltd (“Target Company”).
  3. Scrip code : 533398
    Name : MUTHOOT FINANCE LIMITED
    Subject : Announcement under Regulation 30 (LODR)-Acquisition Execution of the Share Purchase Agreement for the proposed Acquisition of IDBI Asset Management Limited and IDBI MF Trustee Company Limited We wish to inform you that a share purchase agreement has been entered into by and between Muthoot Finance Limited, IDBI Bank Limited, IDBI Capital Markets & Securities Limited, IDBI Asset Management Limited and IDBI MF Trustee Company Limited in relation to the proposed acquisition by Muthoot Finance Limited of 100% equity shares of IDBI Asset Management Limited held by IDBI Bank Limited and its nominees and IDBI Capital Markets & Securities Limited, and 100 % equity shares of IDBI MF Trustee Company Limited held by IDBI Bank Limited and its nominees subject to receipt of necessary regulatory approvals from Securities and Exchange Board of India and other relevant regulators.

CSB Bank IPO

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CSB Bank

IPO Dates: Nov 22, 2019 – Nov 26, 2019

  1. Pricing Of Issue:
Tentative Price Band Rs 193 to Rs 195
Issue Type This is a 100% Book Building Issue involving both the issue of Fresh Equity Shares and an Offer for Sale by 26 Shareholders
Issue Size Rs. 409.68 crs
Fresh Issue 12,00,000 Eq Shares of ₹10 (aggregating up to ₹23.4 Cr)
Offer for Sale 1,97,78,298 Eq Shares of ₹10 (aggregating up to ₹ 395.6 Cr)
Face Value ₹10 Per Equity Share
Book Running Lead Manager: Axis Capital Limited and IIFL Holdings Limited
Registrar Link Intime
Listing at Bombay Stock Exchange, National Stock Exchange
Market Lot 75 Shares (Rs 14625)

 

  1. Planned Usage of Funds:
     To augment Bank’s Tier-I capital base to meet the Bank’s future capital requirements;
    2. To achieve the benefits of listing the Equity Shares on the Stock Exchanges and Offer for Sale
  2. Promotersand Management
    The Promoter of the Bank is FIH Mauritius Investments Ltd which holds 50.09% of the company with an Average cost of Acquisition being Rs. 140 per share. The promoter will remain as the promoter of the Bank post listing.

FIHM is a wholly owned subsidiary of Fairfax India Holdings Corporation which is backed by Mr. Prem Watsa who has a proven track record in investing.

FIHM’s principal activity is to achieve long-term capital appreciation, by investing in public and private equity securities and debt instruments and it has no experience in the banking business. The Promoters have to reduce their stake to 40% in the next 5 years, 30% in the next 10 years and 15% in the next 15 years

The Management:

Mr. Rajendran Chinna Veerappan- Managing Director and Chief Executive Officer

Mr. Madhavan Karunakaran Menon- Part – time Chairman and Non-executive Director

  1. Products & Services, Places & Plants:
    Catholic Syrian Bank mainly operates in the South Indian region and has concentrated operations in Kerela.
  2. Participation in Equity:

CSB has a total of 26082 shareholders out of which 26 are offering their shares in the Offer for sale. The 26 shareholders combined hold 2,05,42,749 or 11.928% of the company out of which 1,97,78,298 or 11.48% are being offered by them with 20 of the 26 shareholders completely exiting the company

7,65,451 or 0.44% of the shares will be with the 6 shareholders who have not completely exited

FIHM is going to remain the promoter of the Bank with 49.74% of shares post IPO

Shareholders Pre IPO Post IPO
  No of Shares % Average cost of acquisition No of Shares %
FIHM 8,62,62,976 50.09 140 8,62,62,976 49.74
ICICI Lombard General Insurance Company Limited 10,00,000 0.581 100 NIL NIL
HDFC Life Insurance Company Limited 40,44,000 2.348 120 NIL NIL
ICICI Prudential Life Insurance Company Limited 30,44,000 1.767 120 NIL NIL
The Federal Bank Limited 27,85,661 1.617 156.03 NIL NIL
Edelweiss Tokio Life Insurance Company Limited 8,46,100 0.491 120 NIL NIL
P-Cube Enterprises Private Limited 6,48,000 0.376 174.07 324000 0.19
Plant Lipids Private Limited 5,38,888 0.313 150.77 404166 0.23
Way2Wealth Securities Private Limited 15,55,214 0.903 255.85 NIL NIL
Satellite Multicomm Private Limited 19,39,097 1.126 235 NIL NIL
TOTAL 17,22,25,058 100   17,34,25,058 100.00

Interestingly, 2 companies being Way2Walth and Satellite Multicomm with cost of Acquisitions above the IPO Price are existing completely along with the Insurance Companies who were asked to step in 3 years ago when the bank needed capital. Now that the Bank has no shortage of Capital after the FIHM’s investment, the Insurance Companies are exiting and are the major contributors for the Offer for Sale.

  1. Peer Group: Small Private Banks
Name of Bank (H1 20) Lakshmi Vilas Bank South Indian Bank Karnataka Bank Bandhan Bank Karus Vysya Bank RBL Bank CSB

Bank
FV Rs 10 1 10 10 2 10 10
CMP Rs 19.65 11.04 74 535.2 56.6 338.55 195*
Market Cap 680 1997 2091 86178 4524 14582 3468*
52 Week High Rs 97.35 18.55 141.15 650 95 716.00 –
52 Week Low Rs 13.35 8.4 68 397 51 230 –
Advances 16932 62993 53468 59785 47101 58476 11297
Deposits 27863 82947 70189 49196 62212 62829 12508
Net NPA 1772 2193 1863.ll 220 2118 338 221.5
NPA Ratio % 10.47 3.48 3.48 0.69 4.41 0.74 1.96
Equity Capital 336 181 283 1610 159 430.6 173.4
Net Worth 1474 5547 5947 14016 6500 7798 1559.4
Long Term Debt 1079 4772 2448 16520 3052 13953 –
Total Sales 1112 4279 3767.56 6012 3030 3486 816.7
PAT (594) 157 281.33 1775 136 394 44.2
BV Rs 43.86 30.6 210 87 81.7 181 89.9
EPS Rs (18.13) 0.87 9.95 8.13 1.7 7.5 7.7
P/E – 12.6 7.4 33 16.47 22.53 12.66*
P/BV 0.4 0.36 0.35 6.14 0.7 1.9 2.16*
Promoter’s Holdings % 6.81 0.00 0.00 82.26 2.10 0.00 49.74

 

* upper band of Rs 195 has been used for the price

All figures in RS. Crs unless stated otherwise.

P/E has been annualised

CSB Bank’s promoter’s holding has been calculated post IPO

  1. Pre & Post Issue Valuation:

    As on half year ended September 2019, Assuming all shares are allotted at Rs. 195
Rs. Crs Number of shares Equity Capital Net Worth
Post Issue 17.34 173.4 1559.4
Pre Issue 17.22 172.2  1536

 

 

  1. Performance, Prospects & Pains:
  Past Performance
Year Advances Deposits Net NPA NPA Ratio Equity Capital Net Worth  Total Borrowings Total Sales PAT NAV EPS NIM
  Rs Cr. Rs Cr. Rs Cr. % Rs Cr. Rs Cr. Rs Cr. Rs Cr. Rs Cr.   Rs %
H1 20 11297 12508 221.5 1.96 172.2 1536 – 816.7 44.2 89.19 3.86 3.43
2019 10615 15124 241 2 86 974 – 1483 (65.6) 73.5 (7.9) 2.8
2018 9184 14690 264 3 81 353.6 41.8 1422 (127) 43.68 (15.7) 2.57
2017 8000 14911 329 4 81 546.1 41.8 1617 (58) 67.5 (7.66) 2.11

 

Other than risks related to being a part of the Banking business being changes in the RBI’s norms, interest rate fluctuations rising NPA level management etc, Risks specific to the Bank are below:

  • They will be unable to recover loans given to certain defaulting parties which are being pursued according to the SARFAESI Act.
  • They are regionally concentrated in Kerela and depend on the political and economic condition of the South Indian region. Further, they may not be able to expand to other regions of India.
  • Significant portions of their loans are secured by gold ornaments and any fall in the price of gold could affect the bank
  • Their loans are concentrated to certain industries whos performance could impact their business. Mainly 19.38% is lent to NBFC including HFCs, 7.96% is lent out to Traders in Retail and Wholesales and 4.73% of their Advances are concentrated in the Textile Industry.
  • Some of the Directors are involved in certain legal and other proceedings in India and may face certain liabilities as a result of the same.
  • The Bank has not been able to maintain the minimum prescribed CRAR under the Basel III Norms in past. As on March 31, 2018, the CRAR under the Basel III Norms was 8.33% (including capital conservation buffer), as compared to the minimum prescribed regulatory requirement of 10.875% (which includes a capital conservation buffer of 1.875%). However, as on March 31, 2019, CRAR under the Basel III Norms was 16.70% (including capital conservation buffer), as compared to the minimum prescribed regulatory requirement of 10.875% (which includes a capital conservation buffer of 1.875%); but there can be no assurance that theywill be able to maintain CRAR above the minimum prescribed regulatory requirements in future.
  • Some of their Corporate records are untraceable and they maybe penalized in the future for that
  • The bank may not be able to maintain its CRL and SLR Requirements. In the past, the Bank has paid ` 0.36 million, ` 0.18 million, and ` 0.53 million to the RBI on account of default in maintaining SLR on a daily basis in Fiscals 1988, 1989, and 1990, respectively, as additional interest paid in respect of shortfalls in the SLR maintained during such periods. However, it has maintained our SLR and accordingly not paid any additional interest in respect of shortfalls in the SLR maintained post 1990.
  • The bank issubject to Risk Based Supervision (“RBS”) by RBI. Non-compliance with the RBI observations could adversely affect business, financial condition,  results of operations and ability to obtain the regulatory permits and approvals required to expand business.the RBI has identified certain deficiencies in the operations of our Bank in the following areas: · credit appraisal and monitoring; data quality and automation;n monitoring and detection of frauds; compliance culture and risk monitoring; software and security measures; erroneous reporting and mis-classification; KYC non-compliance; and upgradation of ATMs.
  • It requires prior permission from the RBI Before opening new branches especially in Tier 1 to 6 areas

What works for the Company:

  • It has very little debt and hence is in a position to leverage in the future
  • It is backed my Mr Prem Watsa who has a proven track record with companies through his company Fairfax like Quess Corp and Thomas cook to name a few
  • Operating costs are expected to go down further as the salaries of new employee Is Rs 3.5 lakhs p.a which is significantly lower than the current average of Rs. 11.5 lakhs
  • The Bank has reduced the retirement age from 60 to 58, this has helped them bring in newer management with better vision and abilities as the old one has retired
  • The current CASA (Current Account to Savings Account) stands at 28% which the management plans to take to 40 in the next few years
  • Currently its loan book consists of 33% gold loans, 32% in SMEs, 8% in Retail and 28% to corporates. It aims to increase its Gold and SME Lending and a new team is joining them for MSME loans.
  1. Positioning of Debt:
    The company has no borrowings as per September, 30 2019
  2. Policy:
    The bank issubject to Risk Based Supervision (“RBS”) by RBI. Non-compliance with the RBI observations could adversely affect business, financial condition,  results of operations and ability to obtain the regulatory permits and approvals required to expand business.the RBI has identified certain deficiencies in the operations of our Bank in the following areas: · credit appraisal and monitoring; data quality and automation;n monitoring and detection of frauds; compliance culture and risk monitoring; software and security measures; erroneous reporting and mis-classification; KYC non-compliance; and upgradation of ATMs.
    Other than that, it is subject to all bankikng norms as per RBI Policy.

    Affle India IPO Details:

The Rs 459-crore IPO received bids for 29,21,57,880 shares against the total issue size of 33,78,021 shares
The total issue was overall subscribed 86.48 times. It raised Rs 206.55 crores from Anchor Investors which is included in the 459 crore issue size.

Investor Category Subscription (times)
Qualified Institutional 55.31x
Non Institutional 198.69x
Retail Individual 10.94x
Employee Reservations  
Others  
Total Subscription 86.48x

IRCTC IPO Details:
The Rs 645-crore initial public offer (IPO) by state-run IRCTC was overall subscribed 111.92 times The issue of 2,01,60,000 shares received bids for 2,25,63,63,400 shares.

Investor Category Subscription (times)
Qualified Institutional 108.79x
Non Institutional 354.52x
Retail Individual 14.83x
Employee Reservations 5.81x
Others  
Total Subscription 111.91x