Monday, 31 December 2018

OYO Rooms to buy back ESOPs worth ₹50 crore in January

Image result for oyoOYO Rooms, India’s second-most valuable startup, will hold a share buyback in January, the first in a series of programmes that is expected to yield its former and current employees a total of $150-200 million over the next two to three years. About 250 ESOP (employee stock ownership plan) holders of OYO will be able to offer their shares in the first round estimated at about ₹40-50 crore. The hospitality chain declined to name the investor who will buy the shares.

“As a part of this effort, eligible option holders both existing and ex-employees will be rewarded for their loyalty and value created over the last four years by way of liquidating a portion of their stock options,” Dinesh Ramamurthi, chief human resources officer at OYO Rooms told Mint. “The eligibility for awarding ESOPs was calculated based on the individual’s role, contribution, and long-term potential.

The move by OYO Rooms comes in a year that has seen many startups, including Flipkart, Paytm and Ola, offer cash to ESOP holders. This represents a major boost for the startup ecosystem that has struggled in previous years to prove that ESOPs matter as an avenue of compensation. Such liquidity events also track the general rise in exits at startups where secondary share sales have led to many early investors bagging attractive returns.


Others who have organized ESOP repurchase programmes this year include financial technology company Razorpay, food-tech startup Swiggy and on-demand home services startup Urban Clap.

While Flipkart has had the highest number of ESOP repurchase programmes over the years, with the largest liquidation round being earlier this year when Walmart bought 77% of the company, other companies are also playing catch up by facilitating their first-ever ESOP repurchases this year.

Swiggy spent about $4 million earlier this year to buyback ESOPs from its employees. Logistics startup Rivigo is said to have spent ₹71 crore to buyback ESOPs and earlier this month, Urban Clap facilitated an ESOP repurchase programme worth $2-2.5 million.

The ESOP repurchase plan at OYO Rooms caps what has been the its best-ever year. Earlier this year, OYO Rooms signed a strategic agreement with Makemytrip, which then delisted OYO’s rivals, Treebo and Fab Hotels. Oyo also expanded to several international markets, including China and Japan.

In September, Oyo said it raised $1 billion from Japan’s SoftBank Vision Fund and other investors, making it India’s second-most valuable startup after Paytm, and the latest to join the coveted unicorn club.

Sandip Ginodia , Director 
ALTIUS INVESTECH PVT LTD | ABHISHEK SECURITIES

We deal in over 60 unlisted companies with 15 years of experience .
For latest prices visit : www.abhisheksecurities.com/unlisted.htm / call : 09830271248 .

MSTC mulls 10% fresh equity issue after govt plan to dilute 25% stake


.Image result for mstc india

State-owned MSTC Ltd is mulling an additional 10 per cent equity issue, following the government's proposed dilution of stake in the trading and e-commerce services company.

The Centre has proposed to offload 25 per cent stake in MSTC through the offer for sale (OFS) route, and the process is likely to be completed by March 2019. The divestment would bring down government holding to 64 per cent from 89.85 per cent.

"We are are in need of capital to meet our expansion plans. We are exploring options for 10 per cent fresh equity issue, as the government's dilution of stake will not bring any capital to the company," a top MSTC official told PTI.

MSTC has been expanding its areas of e-commerce and online auction, including ferrous and non-ferrous materials. It is also holding e-auctions for mines as well as agri-products.

The company has targeted north eastern states like Tripura, where it sees huge demand for e-auction services in agri-products, but needs more capital to go ahead with the plan, MSTC officials said.

It has identified 25-30 agri products for e-auction, including turmeric, oranges, kiwis and large cardamoms, they said

In the current fiscal, MSTC had conducted e-auction of ginger, winning contracts of 1,000 tonne. However, owing to logistics issues, only 100 tonne could be delivered.

MSTC officials are hopeful that such bottlenecks can be resolved through inland waterways.

The Inland Waterways Authority of India developing waterways to connect the north east via Bangladeshi waters will come as a boon, the officials said.

MSTC is aiming at a net profit of Rs 100 crore in the 2018-19 fiscal from Rs 76 crore registered in 2017-18.

Sandip Ginodia , Director 
ALTIUS INVESTECH PVT LTD | ABHISHEK SECURITIES

We deal in over 60 unlisted companies with 15 years of experience .
For latest prices visit : www.abhisheksecurities.com/unlisted.htm / call : 09830271248 .

Monday, 24 December 2018

CSB to amend Articles of Association to give board seats to Fairfax

(CSB) has decided to make changes in the article of association to pave way for Fairfax, which picked up a 51 per cent stake in the bank, to get two seats on the board, including the post of Chairman.
Image result for catholic syrian bank logoAccording to the amendment, would have a minimum of two directors always and there should be at least one representative in all the committees.

If the representation is not there in the first meeting, the meeting should be postponed and if they cannot participate in the postponed meeting also, then the committee is allowed to go ahead without them, said bank officials.
The bank and FIH Mauritius Investments Ltd (FIH-M) entered into an investment agreement in February 2018 that was modified on October 15, 2018, pursuant to agreed to acquire shares up to 51 per cent of the post issue paid-up capital of the Bank. The articles of association have been amended in order to bring in changes in line with the agreement.

Sandip Ginodia , Director 

ALTIUS INVESTECH PVT LTD | ABHISHEK SECURITIES

We deal in over 60 unlisted companies with 15 years of experience .
For latest prices visit : www.abhisheksecurities.com/unlisted.htm / call : 09830271248 .

Otis to refit India elevators

Otis India, a leading manufacturer and maintainer of elevators, escalators and walkways, has announced a ‘green’ modernisation package for old elevators,based on its Gen2 elevator family technology.
“Apart from upgrading the elevators, the new Gen2 MOD package will bring elevators in need of renovation up-to-date with the latest technology in safety, comfort and environmental standards as well as enhance the passenger experience,” Otis India said.
Image result for otis elevatorThe Gen2 MOD will be provided from Otis’ India factory in Bengaluru.
The Gen2 MOD package employs a smart- retention programme where reusable parts from the older system are retained in the new system.
Reduces downtime
This further aids in minimal interference with the structural part of the building, reduces the downtime period and minimises inconvenience to residents, the company said.
Image result for otis elevator“We’re excited to extend the efficiency and innovation of our Gen2 technology to our modernisation customers.” said Sebi Joseph, president, Otis India.
“Otis installed the first elevator in India over 125 years ago in 1892. Since then 500,000 lifts have been installed in India. We estimate more than 30,000 lifts require urgent modernisation in country right now,” Mr. Joseph added.
Meanwhile, Otis is also working with technology start-ups to provide better solutions to its customers.
A few start-ups are collaborating with Otis and enabling innovative technology solutions such as computer vision, machine learning, artificial intelligence as well as people analytics.
“Otis is focused on innovation and continuously enhancing the way we move people. We look forward to the opportunity to work with these start-ups to find creative and smart solutions for our customers,” said Vijay Jayachandran, vice president, global components and technologies, Otis.

Sandip Ginodia , Director 
ALTIUS INVESTECH PVT LTD | ABHISHEK SECURITIES

We deal in over 60 unlisted companies with 15 years of experience .
For latest prices visit : www.abhisheksecurities.com/unlisted.htm / call : 09830271248 .

Chennai Super Kings shares selling like hot cakes off-market, gets Rs 450 crore evaluation

Chennai Super Kings shares are reportedly being traded off-market at a cost of Rs 13-15 per share. The current off-market evaluation of the company is evaluated at Rs 450 crore as against the CSK brand value of USD 98 million according to an evaluation by American American Appraisal India and Duff & Phelps. CSK shares carry a face value of 10 paise for its Rs 3.1 crore paid-up capital. However, the listing of the franchise is not expected to happen any time soon.
Image result for chennai super king“Many investors who got CSK shares early this week were seen selling them off-market between Rs 13-15 per share,” Narottam Dharawat, a Mumbai based broker who deals in unlisted shares is quoted as saying by Economic Times. “Savvy investors are interested in buying CSK shares.”
Another Delhi-based trader is quoted as saying that the shares are going at “Rs 12 and Rs 15.” However, compared to a recent deal between JSW Sports, a unit of Sajjan Jindal-owned JSW Group, and GMR Group-owned IPL franchise Delhi Daredevils, CSK shares seem to be trading at lower levels, which is speculated as being due to the chequered past of CSK. The Rs 450 cr evaluation, apart from being lower than the franchise’s brand value is also lower than other teams from the Indian Premier League.
India Cements had transferred its holding of CSK to India Cements Shareholders Trust with October 9, 2015 as the date fixed for allotment of the shares. The shareholders of the company were allotted a share each for every India Cements share they owned. However, since that time period, CSK, alongwith Rajasthan Royals had to serve a two-year suspension due resepective team principals Gurunath Meiyappan and Raj Kundra found to being involved in suspicious betting activity.

Sandip Ginodia , Director 
ALTIUS INVESTECH PVT LTD | ABHISHEK SECURITIES

We deal in over 60 unlisted companies with 15 years of experience .
For latest prices visit : www.abhisheksecurities.com/unlisted.htm / call : 09830271248 .