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Bikaji Foods IPO Details, Schedule, Allotment Link, Financials, Latest GMP

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About Company

The company is engaged in selling Indian snacks and sweets which include six principal categories; bhujia, namkeen, packaged sweets, papad, western snacks as well as other snacks that primarily includes gift packs (assortment), frozen food and cookies.

As of September 30, 2021, Bikaji Foods has operations across 22 states and three union territories in India. And also exports its products to 35 countries internationally including countries in North America, Europe, the Middle East, Africa, and the Asia Pacific representing 4.60% of the company’s sales of food products in the six months ending September 30, 2021.

IPO Details

IPO DateNov 3, 2022 to Nov 7, 2022
Listing Date16 November 2022
Price Band₹285 to ₹300 per share
Lot Size50 Shares
Issue Size₹881.22 Cr (Only Offer for Sale)
Minimum Application₹15,000
GMP (Last Updated 2 Nov)₹73 per share
QIB Quota50% of the Issue Size
NII Quota15% of the Issue Size
Retail Quota35% of the Issue Size

Schedule

Issue Period3rd November to 7th November 2022
Finalization of Allotment11th November 2022
Initiation of Refunds14th November 2022
Credit of Shares15th November 2022
Date of Listing16th November 2022
Mandate end date22nd November 2022
Anchor Investors Lock-In End Date7th December 2022

Objects of the Issue

The selling shareholders are entitled to the entire proceeds of the Offer after deducting the Offer expenses, and relevant taxes/ The company will not receive any proceeds from the IPO.

Financial Highlights

ParticularsFY20FY21FY22
Revenue from Operations (₹ Crores)1,074.551,310.751610.96
EBITDA (₹ Crores)94.6144.77139.54
EBITDA Margin (%)8.80%11.04%8.66%
Net Profit (₹ Crores)56.3790.3476.03
RONW (%)10.65%14.93%9.51%
ROCE (%)12.79%20.88%13.89%

Strengths

  1. Well-established brand: The company sells all products under a well-established Bikajo brand with a focus on a diverse range of quality products, authentic ethnic Indian taste, and effective pricing strategies covering all key price points. These qualities have helped them develop strong brand recognition and consumer loyalty.

  2. Extensive distribution network: The company has developed a large pan-India distribution network. They had six depots, 38 super stockists, 416 direct and 1,956 indirect distributors that work with super stockists, located across 23 states and four union territories in India ( June 2022).

Risks

  1. Dependency on a single segment: The financial performance of the company is dependent on its bhujia products. On average, the segment contributes around 35% of the company’s total sales. If they are unable to evolve consumer tastes, preferences, and demand for particular products, the financials will be impacted. 

  2. Investments in unsecured debt instruments: The Company has made investments in unsecured debt instruments of Hanuman Agrofood in the form of compulsorily convertible debentures amounting to Rs 106.23 crore, and optionally convertible debentures of Dadiji Snacks Private Limited amounting to Rs 11.5 crore. 

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Fusion Microfinance, IPO Details, Schedule, Allotment Link, Financials, Latest GMP

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About Company

Fusion Micro Finance, located in New Delhi and established in 2010, is a micro-lending company that provides funding to women in rural and semi-urban regions so they may take advantage of more options for employment. Fusion offers loans up to Rs. 50,000 and employs a joint liability group concept created by the Grameen Bank of Bangladesh.

As of June 30, 2022, and March 31, 2022, 2021 and 2020, total AUM stood at ₹7,389.0 Cr, ₹6,785.9 Cr, ₹4,637.8 Cr and ₹3,606.5 Cr respectively. As of June 30, 2022, the share of AUM from customers in rural areas represented 91.3% of the total AUM. FMFL’s focus customer segment is women in rural areas with an annual household income of up to ₹300,000. Their business runs on a joint liability group lending model wherein a small number of women form a group (typically comprising five to seven members) and guarantee one another’s loans. As of June 30, 2022, and March 31, 2022, 2021 and 2020, gross NPA ratio was at 3.6%, 5.7%, 5.5% and 1.1%, respectively, and net NPA ratio was 1.3%, 1.6%, 2.2% and 0.4% respectively.

IPO Details

IPO DateNov 2, 2022 to Nov 4, 2022
Listing Date11 November 2022
Price Band₹350 to ₹368 per share
Lot Size40 Shares
Issue Size₹1,104 Cr ( ₹600 Cr Fresh, 504 Cr Offer for Sale)
Minimum Application₹14,720
GMP (Last Updated 31st Oct)₹33 per share
QIB Quota50% of the Issue Size
NII Quota15% of the Issue Size
Retail Quota35% of the Issue Size

Schedule

Issue PeriodNov 2, 2022 to Nov 4, 2022
Finalization of Allotment10th November 2022
Initiation of Refunds11th November 2022
Credit of Shares14th November 2022
Date of Listing15th November 2022
Anchor Investors Lock-In End Date4th December 2022

Objects of the Issue

  1. Augment the capital base of the microfinance firm.

Financial Highlights

DateQ1 FY23FY22FY21FY20
Revenue (₹ Crores)342.721151.26855.81720.26
Net Profit (₹ Crores)75.121.7543.9469.61
EPS (diluted)8.982.645.4910.32

Asset Quality

Strengths

  1. Diversified and extensive pan-India presence: As of June 30, 2022, the company had 29 lakh active borrowers who were served by 966 branches and 9,262 employees across 377 districts in 19 states and UTs in India. No single state contributed to more than 20%of total AUM, and the proportion of AUM in the five largest states in terms of AUM concentration further decreased from 94.6% as of March 31, 2016, to 66.1% as of June 30, 2022
  2. Potent underwriting process, and risk management policies: As of Q1FY23, FY22, FY21 and FY20 gross NPA ratio was 3.6%, 5.7%, 5.5% and 1.1%, respectively, and net NPA ratio was 1.3%, 1.6%, 2.2% and 0.3%, respectively. According to Crisil, the company had the sixth lowest gross NPA ratio among the top 10 NBFC-MFIs in India during FY22, and average asset quality of 2.4% between FY15 and FY22 was the lowest among all NBFCMFIs operating in North India.

Risks

  1. Higher NPAs: Even if credit monitoring and risk management policies and procedures are adequate and appropriately implemented, the company may not be able to anticipate future economic or financial developments or downturns, which could lead to an increase in NPAs. If NPAs increase or the credit quality of borrowers deteriorates, it could have an adverse effect on business, financial condition, results of operations and cash flows.
  2. Competition from other MFIs, banks, and financial institutions: The company faces the most significant organised competition from other MFIs, banks and state-sponsored social programs in India. Traditional commercial banks as well as regional and cooperative banks may continue to increase their participation in microfinance.

DCX Systems IPO Details, Schedule, Allotment Link, Financials, Valuation, Latest GMP

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About the Company

Incorporated in 2011, DCX Systems Limited (DSL) is among the leading Indian players in the manufacture of electronic sub-systems and cable harnesses. The company operates through their manufacturing facility located at the Hi-Tech Defense and Aerospace Park SEZ in Bengaluru, Karnataka.

As of June 30, 2022, DCX Systems had 26 customers in Israel, the United States, Korea and India and its customers include domestic and international OEMs, private companies and public sector undertakings in India across different sectors, ranging from defence and aerospace to space ventures and railways.

IPO Details

IPO DateOct 31, 2022 to Nov 2, 2022
Listing Date11 November 2022
Price Band₹197 to ₹207 per share
Lot Size72 Shares
Issue Size₹500 Cr (₹400 Cr Fresh, ₹100 Cr Offer for Sale)
Minimum Application₹14,904
GMP (Last Updated 31 Oct)₹80 per share (38%)
QIB Quota75% of the Issue Size
NII Quota15% of the Issue Size
Retail Quota10% of the Issue Size

Timetable

Issue Period31st October to 2nd November 2022
Finalization of Allotment7th November 2022
Initiation of Refunds9th November 2022
Credit of Shares10th November 2022
Date of Listing11th November 2022
Mandate end date17th November 2022
Anchor Investors Lock-In End Date30th November 2022

Allotment Link

Objects of the Issue

The net proceeds from the IPO will be utilized for the below purposes:

  1. Repayment/ prepayment of certain borrowings availed of by the Company.
  2. Funding working capital requirements of the Company.
  3. Investment in a wholly owned Subsidiary, Raneal Advanced Systems Private Limited, to fund its capital expenditure expenses.
  4. General corporate purposes.

Financial Highlights

ParticularsFY20FY21FY22
Assets (₹ Crores)698.85793.18942.62
Revenue (₹ Crores)449.3641.21,102
PAT (₹ Crores)9.729.665.61
ROCE19.24.213.15
ROE56.863.255.8

Valuation

At the higher end of the price band, DCX Systems IPO is reasonably priced at post-issue at 31 times FY22 earnings (consolidated). This is lower than peers Bharat Electronics (34 times), Data Patterns (61 times), Paras Defence (97 times), and Astra Microwave (97 times). Interestingly, DCX Systems has reported a better RoNW than these listed peers.

Growth Potential

  1. Strengthen system integration operations: The company intends to expand its existing cable and wire harness assembly operations to better serve the requirements of global customers.
  2. Focus on adjacent industry verticals: They intend to focus on the products identified in the Positive Indigenization List by the Ministry of Defence, (GoI), which they believe will provide opportunities to obtain transfer of technology.
  3. Cross-selling of products: They plan to increase cross-selling of products to increase customer base in various product verticals and expand into new or adjacent product verticals with existing customers. DCX will continue to leverage existing customer relationships to expand into new product categories.
  4. Penetrate into new geographies: They intend to identify opportunities in overseas jurisdictions and tie up with local partners to utilize existing product portfolios and further develop products suitable for meeting the respective country’s native requirements.

Risks

Heavy dependency on top three customers: DCX’s top three customers account for 96.83% of its revenue from operations in the three months ended June 30, 2022, respectively. The loss of one or more such customers or a reduction in their demand for DCX’s products will adversely affect its financials.

Order book may not translate to future income: The company has a strong order book of ₹2,563.63 Cr (as of June 30, 2022) but the order book may not necessarily translate into future income in its entirety. Some of the current orders received may be modified, cancelled, delayed, put on hold, or not fully paid, which could adversely affect the results of operations. 

Top Private Banks Q2FY23 Earnings Comparison

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Particulars ICICI Bank HDFC Bank Kotak Mahindra Axis Bank
NII₹14,787₹21,021₹6,620₹10,360
NII Growth YoY26%18.9%24%31%
Net Profit ₹7,558₹10,606₹3,608₹5,330
Profit Growth YoY37%20%21%70%
Advances Growth YoY24%23.4%25%18%
Net Interest Margin4.31%4.1%5.17%3.96%
Gross NPA3.19%1.23%2.08%2.50%
Net NPA0.61%0.33%0.55%0.51%
CAR18.27%18.0%22.6%17.72%
CASA45%45.4%56.2%46%
(₹) In Crore, NII: Net Interest Income. CAR: Capital Adequacy Ratio, CASA: Current Account Savings Accounts 

4 ways to get the best out of your Systematic Investment Plan (SIP)

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A systematic Investment Plan (SIP) is an investment route offered by Mutual Funds wherein one can invest a fixed amount in a Mutual Fund scheme at regular intervals– say once a month or once a quarter, instead of making a lump-sum investment.

SIP has been gaining popularity among Indian MF investors, as it helps in investing in a disciplined manner without worrying about market volatility and timing the market. SIP is easily the best way to enter the world of investments, here are some tips to get the best out of your SIP investments

1. Choose Direct Plans

Direct plans have lesser costs and give higher returns than regular plans. If the Total Expense Ratio (TER) of a regular plan is 0.75% more than that of the direct plan, then the direct plan will give a 1% higher CAGR return than the regular plan. Over a long investment horizon, if you compare the returns of mutual fund direct vs regular plans, the direct plans can add up to a substantial amount of difference in returns on your investment.


2. LTCG Tax Harvesting

Tax harvesting is utilising the tax-free window of Rs 1 lakh to reduce the overall LTCG tax. If you have invested and gained Rs 1 lakh, you can sell your investment, realise that gain, and invest it back without being liable to pay taxes. On the surface, LTCG tax harvesting savings could appear insignificant. However, when your portfolio expands and the period of wealth generation lengthens, these modest sums can easily add up to substantial sums.


3. Invest during drawdowns

Maintain a separate fund that is only used for stock market corrections. The stock market is subject to corrections; on average, the Nifty 50 has dropped more than 10% from its high each year at some point. By adding more to the mutual fund investments in response to corrections like these, you can improve your CAGR returns.


4. Choose Top-Up SIP

In a Top-up SIP, the investor increases his SIP amount every year, As an individual increases his income over time, it makes sense to increase investment contributions at the same rate. Top-up SIP helps in accumulating a higher amount of money, achieving your financial goals faster & keeping up with inflation.


Open Demat Account with India’s Number One Stock Broker; Zerodha

Mahurat Trading Day: Nifty 50 Performance History, Trading Hours & more

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Diwali is the festival of lights and auspicious times. People buy gold, vehicles, and other such valuable items in the days of Diwali as it’s believed to bring prosperity (barkat) and happiness in their lives. While there are abundant ways of celebrating Diwali, Indian stock exchanges like NSE and BSE celebrate by conducting a special one-hour ‘Muhurat Trading Session’ that marks the beginning of the Hindu Calendar year.

Digging deep into the history of Muhurat Trading, traditionally, stockbrokers started their new year on Diwali. Hence, they would open new settlement accounts for their clients in this auspicious period – The Muhurat. With diverse cultures, the beliefs associated with Muhurat Trading also varied. Today, Muhurat Trading has become more of a symbolic gesture than a cultural one as Hindu investors perform Lakshmi Pujan and purchase shares of strong companies that guarantee good future returns.

Stock exchanges BSE and NSE will conduct the once-in-a-year Muhurat trading on 24th October 2022, Monday from 6.15 pm to 7.15 pm as the trading community welcomes Day 1 of the Hindu accounting calendar Samvat.



Nifty 50 Levels on Deepawali over the years

Nifty 50 performance on the Mahurat Trading Day

Important Ratios To Evaluate a Banking Company

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The financial statements of banks are typically much more complicated than those of companies engaged in virtually any other type of business. While investors considering bank stocks look at such traditional equity evaluation measures as price-to-book (P/B) ratio or price-to-earnings (P/E) ratio, they also examine industry-specific metrics to more accurately evaluate the investment potential of individual banks.

1. Non-Performing Assets (NPAs)

What are NON PERFORMING ASSETS? NPAs are of Two Types

1. GNPA:- Loans where interest is not received for a period of 3 months, a loan turns into NPA. GNPA tells us about the financial condition of the bank. High GNPA tells us that the asset quality of the bank is in bad shape.
Lower the better.


2. NET NPA:- Banks provide for some loans going bad. The net NPA is that portion of bad loans which has not been provided for in the books.
Net NPA gives us a better view of the financial health of the Bank as by this ratio we get to know about the ability of the bank to provide for Non-Performing Assets.
Lower the better.

2. Capital Adequacy Ratio(CAR)

It is the ratio of a bank’s capital in relation to its risk-weighted assets and current liabilities. This is a measure of a bank’s ability to meet its obligations. A high CAR means the bank can absorb losses without diluting capital.
Higher the Better.

3. Current Account, Savings Account Ratio (CASA Ratio)

It is the proportion of current account and savings account deposits in the total deposits of the bank. Lower CASA Ratio means the bank relies on costlier wholesale funding which may hurt the margin of the bank. As we know that no interest is given by banks on Current Account deposits & an interest rate of as low as 3.5% is given on Saving Account Deposits, these are relatively very cheap source of financing for banks as compared to other sources.
Higher the Better.

4. Provisioning Coverage Ratio

Provisioning means to set aside or provide some funds to cover up losses if things go wrong and some of their loans turn into bad assets. A high PCR ratio (ideally above 70%) means most asset quality issues have been taken care of and the bank is not vulnerable.
Higher the Better.

5. Net-Interest Margin

The difference between interest earned by a bank on loans and the interest it pays on deposits is called Net-Interest Margin. Net-Interest Margin will be high for banks with higher low-cost deposits or high lending rates. In particular, for a bank, if the bank has a significant amount of non-performing assets (such as loans where full repayment is in doubt). NIM will generally decrease because interest earned on non-performing assets is treated, for accounting purposes, as repayment of principal and not payment of interest due to the uncertainty that the loan will be fully repaid.
Higher the Better.

6. Credit-Deposit Ratio

This shows how much a bank lends out of its deposits.  A high credit-deposit ratio suggests an overstretched balance sheet, and may also hint at capital adequacy issues. Credit-Deposit Ratio helps in assessing a bank’s liquidity and indicates its health.
If the ratio is too low, banks may not be earning as much as they could be.
If the ratio is too high, banks might not have enough liquidity to cover any unforeseen fund requirements which may affect capital adequacy.

7. Return On Assets(ROA)

It shows how profitable a bank’s assets are in generating revenue. A lower RoA means that the bank is not able to utilize assets efficiently. Negative ROA implies the bank’s assets are yielding a negative return. The term return in the ROA ratio or Net Profit to Total Assets customarily refers to net profit or net income, the number of earnings from sales after all costs, expenses, and taxes. The more assets a company has amassed, the more sales and potentially more profits the company may generate. As economies of scale help lower costs and improve margins, the return may grow at a faster rate than assets, ultimately increasing return on assets.
Higher the better.

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SBI Card’s 10 financial highlights to look at before bidding for the IPO

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Most analysts and market experts are positive on the forthcoming Rs 10,000 crore initial public offering of SBI Card, which is going to hit the market on March 2.

The company has set the price band for the share sale at Rs 750-755. Promoters SBINSE -1.90 % will offload 3.73 crore shares and Carlyle Group 9.32 shares. SBI Card’s market share in terms of the number of credit cards outstanding stands at 18 per cent. While these recommendations are good to refer to, investors should also do their own homework before investing in the public issue. Here are 10 key financial parameters of the company that may influence your investment decision.

Bottomline
Net profit of SBI Card for FY19 increased 43.52 per cent year-on-year to Rs 862.70 crore from Rs 601.10 crore reported for the year-ago period. The figure stood at Rs 372.80 crore in FY17.

Net interest income
This figure increased by nearly 25 per cent year-on-year to Rs 2,558.50 in FY19. NII stood at Rs 1,359.70 crore as of March 31, 2017.

Return on equity (RoE)
The company has been maintaining an RoE of over 25 per cent. This figure stood at 30 per cent in FY19, 32.40 per cent in FY18 and 28.60 per cent in FY17.

Return on assets (RoA)
The company reported a return on assets of 4.80 per cent in FY19 against 4.50 per cent in FY18. The figure stood at 4 per cent in FY17.

Total assets
Total assets of SBI Card stood at Rs 24,459.20 crore for the half-year ended September 2019 against Rs 20,239.60 crore as of March 31, 2018. The figure stood at Rs 15,686 crore and Rs 10,765 crore for the year ended March 31, 2018 and 2017, respectively.

Net worth
Net worth of the company jumped 147 per cent to Rs 3,581.70 crore in FY19 over Rs 1,448.80 crore in FY17.

Non-performing assets
Percentage of gross non-performing assets (NPA) of SBI Card stood at 2.30 per cent as of September 30. The figure stood at 2.40 per cent and 2.80 per cent in FY19 and FY18, respectively.

Earnings per share (EPS)
The figure jumped to Rs 16.40 during the first half of FY20 against Rs 10.60 in FY19 and Rs 7.70 in FY18.

Impairment losses and bad debts
The figure stood at Rs 1,102.10 crore as of September 30 against Rs 1,147.70 crore as of March 31, 2019. Impairment losses and bad debt stood at Rs 800.10 crore and Rs 532 crore in FY18 and FY17, respectively.

Operating profit (pre-provision)
Pre-provision operating profit of SBI Card increased 9.74 per cent to Rs 2,720.70 crore for the nine-month ended December 2019. The figure stood at Rs 2,479.30 crore and Rs 1,719.40 crore in FY19 and FY18, respectively.

Source – Economic Times

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