Issue Size of 1,40,29,622 shares which consists of offer for sale of 93,56,725 shares by investors and the Promoters amounting to Rs. 800 crores and a fresh issue of approximately 46,72,897 shares of around Rs. 400 crores. In aggregate upto 1,201 crs will be raised.
Proceeds from fresh issue will be utilised towards
Augmenting capital base
General corporate purposes
SHAREHOLDING PATTERN
COMPANY HIGHLIGHTS
Spandana is a leading, rural focused NBFC-MFI, having dominant business presence in AP and Telangana.
Spandana was incorporated as a public company in 2003 and registered as an NBFC with the RBI in 2004. Subsequently, company got registered as NBFC-MFI in 2015.
Through customer centric loan products, Spandana endeavoured to strengthen the socio-economic well-being of low-income households.
Product portfolio of Spandana comprises of following offerings:
Abhilasha (JLG Loans)- Abhilasha stands for “Aspiration”. This unique loan is designed especially for low-income households.
Loans Against Property (LAP)- Sometimes big ideas need small help, thus Spandana has designed Loan Against Property scheme for low income home buyers.
Phinix Loans- Women empowerment being centric. Spandana designed special financing facility for women of Andhra Pradesh who already have an income generating source.
Shree Loans- Shree stands for “Good Beginning”, this loan is given to low/lower-middle-income people having clear credit history.
Gold Loans (Keertana)- They also provide ‘Gold Loans’ are given against the mortgage of Jewellery.
Interim Loans- Spandana has working capital offering under the name of ‘Interim loans’ to assist borrowers to meet their liquidity requirements.
VALUATION
Spandana is a well diversified rural focussed NBFC. It enjoys decent return ratios. Post issue at upper band of issue price of Rs.856 it’s P/BV stands at 2.40x (ttm basis). Loan book has grown at a Cagr of 27% for past 5 years. For FY19 its advances grew at 38% yoy basis. Assuming, the company delivers similar growth in foreseeable future, the issue is fairly priced.
Posted by Mehul Kothari | Published on 01-AUG-2019
NIFTY Daily Chart
It was a dreadful session yesterday for the domestic market post the hopeful closing of Wednesday. The markets started the session with a downside gap and kept on sinking as the day progressed to close with massive loss. The index Nifty spot lost around 240 points from previous close to sneak below 10900 mark during the session. However, a V-Shape recovery in the final hour helped the index to cut half of its loss and close near 11000 mark. It was horrific day for NIFTY BANK index too since it collapsed more than 800 points during the process. As usual the market breadth again turned in the favour of declining counters. On the sectoral front, the NIFTY MEDIA (-3.12%) and NIFTY METAL (-3.13%) stocks were the worst performers while the NIFTY AUTO (+0.06%) stocks underwent some recovery. From the F&O space, UJJIVAN (+6.25%), STAR (+4.86%) and VOLTAS (+4.11%) remained top gainers.
Yesterday, for a moment we expected the markets to continue with its relief rally post opening with a downside gap. But, unfortunately Nifty breached support of 11000 and in line with our broader view we witnessed severe selling after that. The low registered at 10881 while the close was 100 points above that at 10980. The zone from which Nifty turned yesterday was a consolidation zone during the months of Dec 2018 to Mar 2019 from where the index started its fresh rally of all time high. This being a demand zone there is a possibility of some relief for the bulls if 10880 level is intact. However, since the broader view is bearish we don’t want to get carried away with a buy trade as of now. Post the opening, we would reassess the conditions and then go for any recommendation. As of now we maintain our stance that aggressive bets can be made only above 11150 mark. With regards to NIFTY BANK index , it breached 28500 support and met the 28000 level. Now, 28000 – 28700 could be the trading range for the index. Coming to the option chain, yesterday huge positions were built in 11000 strike CE (a rise of 32 lac shares) which indicates a short covering in CE once Nifty clears 11000 mark. On the downside, PE concentration is at 10900.Disclaimer)
Posted by Mehul Kothari | Published on 06-AUG-2019
ISSUE HIGHLIGHTS
Offer for Sale of 4,00,64,102 shares by Promoters aggregating upto Rs. 3,125 crs
Objects of the Issue
To achieve the benefits of listing
Enhance visibility and brand image of the company
The proceeds from the offer will go to promoters, offering their shares for issue
ABOUT THE COMPANY
Sterling and Wilson Solar Ltd (SWSL) was originally incorporated at Mumbai on March 9, 2017 as Rashmika Energy Private Limited
It had commenced operations in 2011 as the Solar EPC Division of Sterling and Wilson Private Limited (SWPL), and was subsequently demerged in 2017
Over a span of seven years, SWSL became one of the largest solar EPC solutions provider in India, Africa and the Middle East according to IHS Markit in 2018
THE BUSINESS
SWSL is a end-to-end solar engineering, procurement and construction (“EPC”) solutions provider, and is world’s largest solar EPC solutions provider in 2018 based on annual installations of utility-scale photovoltaic (“PV”) systems of more than five mega-watt peak (“MWp”), according to IHS Markit
SWSL provide EPC services primarily for utility-scale solar power projects with a focus on project design and engineering and manage all aspects of project execution from conceptualizing to commissioning
SWSL has impressive commissioned and contracted portfolio of 205 solar power projects with an aggregate capacity of 6,870.43 MWp
Some of SWSL’s Key Projects being :
Single location solar power plant of 1177 MWp in Abu Dhabi
580 MWp solar power plant in Rajasthan, India
22.32 MWp solar power project in Philippines
VALUATION
SWSL post issue is available at a PER of 19.60x FY19. It enjoys high return ratios, ROE being 76.13. It is an asset light business model. FY19 posted impressive operating and net profit growth boosted by higher operating efficiencies and leverage. It’s outstanding order book stands Rs.3,831 crores. Given, the Government’s impetus on renewable energy and few domestic companies available for catering to its rising demand; SWSL looks sweetly poised to reap on the benefits. Government of India has set a target of 225GW of power generation from renewable energy by 2022, which presently is at 70GW. A major business opportunity for EPC players and power producers. Given, the visibility and financials, SWSL’s is likely to re-rated post listing. We recommend subscribe.)
Spandana Sphoorty Financial Ltd. IPO 2019 – Issue Details, Balance Sheet & Company Highlights
ISSUE HIGHLIGHTS
SHAREHOLDING PATTERN
COMPANY HIGHLIGHTS
VALUATION
Spandana is a well diversified rural focussed NBFC. It enjoys decent return ratios. Post issue at upper band of issue price of Rs.856 it’s P/BV stands at 2.40x (ttm basis). Loan book has grown at a Cagr of 27% for past 5 years. For FY19 its advances grew at 38% yoy basis. Assuming, the company delivers similar growth in foreseeable future, the issue is fairly priced.
Previous Story
Share Market Today - 2nd August 2019
NIFTY Daily Chart It was a dreadful session yesterday for the domestic market post the hopeful closing of Wednesday. The markets started the session with a downside gap and kept on sinking as the day progressed to close with massive loss. The index Nifty spot lost around 240 points from previous close to sneak below 10900 mark during the session. However, a V-Shape recovery in the final hour helped the index to cut half of its loss and close near 11000 mark. It was horrific day for NIFTY BANK index too since it collapsed more than 800 points during the process. As usual the market breadth again turned in the favour of declining counters. On the sectoral front, the NIFTY MEDIA (-3.12%) and NIFTY METAL (-3.13%) stocks were the worst performers while the NIFTY AUTO (+0.06%) stocks underwent some recovery. From the F&O space, UJJIVAN (+6.25%), STAR (+4.86%) and VOLTAS (+4.11%) remained top gainers. Yesterday, for a moment we expected the markets to continue with its relief rally post opening with a downside gap. But, unfortunately Nifty breached support of 11000 and in line with our broader view we witnessed severe selling after that. The low registered at 10881 while the close was 100 points above that at 10980. The zone from which Nifty turned yesterday was a consolidation zone during the months of Dec 2018 to Mar 2019 from where the index started its fresh rally of all time high. This being a demand zone there is a possibility of some relief for the bulls if 10880 level is intact. However, since the broader view is bearish we don’t want to get carried away with a buy trade as of now. Post the opening, we would reassess the conditions and then go for any recommendation. As of now we maintain our stance that aggressive bets can be made only above 11150 mark. With regards to NIFTY BANK index , it breached 28500 support and met the 28000 level. Now, 28000 – 28700 could be the trading range for the index. Coming to the option chain, yesterday huge positions were built in 11000 strike CE (a rise of 32 lac shares) which indicates a short covering in CE once Nifty clears 11000 mark. On the downside, PE concentration is at 10900.Disclaimer)
Next Story
Sterling and Wilson Solar IPO 2019 – Issue Details, Balance Sheet & Company Highlights
ISSUE HIGHLIGHTS Offer for Sale of 4,00,64,102 shares by Promoters aggregating upto Rs. 3,125 crs Objects of the Issue To achieve the benefits of listing Enhance visibility and brand image of the company The proceeds from the offer will go to promoters, offering their shares for issue ABOUT THE COMPANY Sterling and Wilson Solar Ltd (SWSL) was originally incorporated at Mumbai on March 9, 2017 as Rashmika Energy Private Limited It had commenced operations in 2011 as the Solar EPC Division of Sterling and Wilson Private Limited (SWPL), and was subsequently demerged in 2017 Over a span of seven years, SWSL became one of the largest solar EPC solutions provider in India, Africa and the Middle East according to IHS Markit in 2018 THE BUSINESS SWSL is a end-to-end solar engineering, procurement and construction (“EPC”) solutions provider, and is world’s largest solar EPC solutions provider in 2018 based on annual installations of utility-scale photovoltaic (“PV”) systems of more than five mega-watt peak (“MWp”), according to IHS Markit SWSL provide EPC services primarily for utility-scale solar power projects with a focus on project design and engineering and manage all aspects of project execution from conceptualizing to commissioning SWSL has impressive commissioned and contracted portfolio of 205 solar power projects with an aggregate capacity of 6,870.43 MWp Some of SWSL’s Key Projects being : Single location solar power plant of 1177 MWp in Abu Dhabi 580 MWp solar power plant in Rajasthan, India 22.32 MWp solar power project in Philippines VALUATION SWSL post issue is available at a PER of 19.60x FY19. It enjoys high return ratios, ROE being 76.13. It is an asset light business model. FY19 posted impressive operating and net profit growth boosted by higher operating efficiencies and leverage. It’s outstanding order book stands Rs.3,831 crores. Given, the Government’s impetus on renewable energy and few domestic companies available for catering to its rising demand; SWSL looks sweetly poised to reap on the benefits. Government of India has set a target of 225GW of power generation from renewable energy by 2022, which presently is at 70GW. A major business opportunity for EPC players and power producers. Given, the visibility and financials, SWSL’s is likely to re-rated post listing. We recommend subscribe.)