The exciting journey of Zomato started in 2008. Earlier name of Zomato was Foodiebay. In 2010, this start up got its current name. The venture of Deepinder Goyal and Pankaj Chaddah never looked back. The topsy-turvy journey had more highs and few lows. Zomato is perfect example of ‘Local to Global’ pangs. Initially, the corporate journey started from city and just in 12 years, Zomato has reached more than 24 countries including USA and Canada. Exorbitant valuation which they are able to attract shall not be a surprise to anyone. In 12 years, they have acquired about 20 entities in various countries, latest being their arch rival in India Ubereats. In the process, now majority stake in Zomato is held by Info edge of Naukri.com fame.
It is interesting to note that ‘equity share’ of Zomato is upwardly valued at very next occasion and share of mere INR 1/- face value is valued at the year end of 2019 at more than 150,000/- per share. But why worry! If global investors and funds are ready to acquire the stake they must have seen potential in business model. Young Valuers have many questions. Valuation related spicy questions are discussed here.........Click to Read Spicy Questions and Chirpy Answers.
Date : 2020-08-27
Mindspace Business Parks REIT ……. …..Valuing the Valuation Report!
Mindspace Business Parks REIT was incorporated in November, 2019 by Raheja Group. Mindspace is not Company under Companies Act, 2013 but it is Trust registered under Indian Trusts Act, 1881. IPO of Mindspace was open between 27th July to 29th July, 2020 with no premium in unofficial market but it got listed on 6th August, 2020 at 11% premium. SEBI (Real estate Investment Trust) Regulations, 2014 recognises ‘Registered Valuers’ for the purpose of carrying out Valuation of the properties of REIT. Every REIT requires valuation at regular intervals-annual and half yearly . Same provisions are inserted under SEBI (Infrastructure Investment Trust) Regulations 2014.
It is interesting to note that as per LoE (Letter of Engagement) Mindspace is subject company entity but not the client company LLP. And LoE was signed prior to Incorporation of Mindspace as Trust. During the remaining eight and half months of this financial year 2020-21, India may see around six-eight such public issues getting listed. As per an estimate, this single assignment must have fetched professional fees of not less than 50 lakhs for the Registered Valuer. RV doing the honours belongs to Land & Building category. He got registered on 15.05.2019 and signed this LoE in the month of June, 2019 and issued this prestigious VR on 10th June, 2020 for valuation as on 31.03.2020 – “He is a RV born with golden spoon and guts to set new benchmark and delivering on time under challenging situations”.Young Valuers have many questions. Valuation related spicy questions are discussed here.........Click to Read Spicy Questions and Chirpy Answers.
Date : 2020-08-13
KKR Acquires Majority Stake in JB Chemicals & Pharma... Zero Debt Company
JB Chemicals and Pharmaceuticals Limited (JBCPL) was incorporated in 1976 under Chairmanship of Sh. JB Mody. Today, JBCPL is exporting to 30 countries; more than half of revenue coming from exports; have zero debt in its Balance Sheet as on 31.03.2020; Successfully closed three buybacks in last three years; its last year turnover was INR 1774 Crores with EBITDA margin 21% +; PAT margin of 15% + and EPS of 34/- + for share of INR 2/- per share. On 2.07.2020 KKR (Kohlberg Kravis Roberts), investment group belonging to Singapore announced acquisition of note more than 54% from the promoters in three tranches and also made public announcement of acquiring not more than 26% of total voting capital form public at a price of INR 745/- per share. Usually, there are strong reasons for exit e.g. financial crunch, failure of business model, strong setback, technological lag with competitors, losing edge in market. In the matter of JBCPL, there seem to be no apparent reason why promoters exited from successful business model. Is it voluntary retirement? Is it business fatigue? Is it different dreams of next generation? Is it something hidden? JBCPL is super successful pharma company but was not darling of stock market. Other companies always overshadowed in reference to media coverage. JBCPL was just like Rahul Dravid of pharma industry in India! Interesting! Valuers have many questions. Valuation related spicy questions are discussed here.........Click to Read Spicy Questions and Chirpy Answers
Date : 2020-07-29
Motherson Sumi - Ongoing Demerger cum Merger
Demergers are known for value unlocking. But demerger announcement of Motherson Sumi Systems Limited on 2.7.2020 resulted into share further tumbling down from 104/- to 94/-. Strange but why it happened? Motherson was incorporated in 1986 and got listed in 1993. This is runaway success story in the segment of auto component and largest auto component maker. Through complex web of subsidiary and associate companies, the group has registered its strong presence in six continents of the world. On 2nd July, 2020 the Company approved reorganization plan in its Board Meeting. With this approval, a process of demerger cum merger has set in where ultimately two companies will get listed – one focusing on Indian wiring business and other on rest of the auto components. Valuation related spicy questions are discussed here......... Click to read spicy Questions and chirpy Answers.
Date : 2020-07-17
Reliance Jio â€“ Curls and Curves Ahead
Reliance Group recently offloaded about 25% shares of Reliance Jio to Global Investment Houses. Pricing was different for different investors evoking curiosity amongst Registered Valuer Professionals "How Valuation can change in such a short span of time that too both ways?" Highest stake has been taken by Facebook Group led by Mark Juckerberg. Young Valuers were thinking why 9.99% why not 10%. What is the reason behind this? Reliance Chairman Sh. Mukesh Ambani commented that golden decade of Reliance is beginning now. Valuation related spicy questions are discussed here.........Click to Read Spicy Questions and Chirpy Answers