Hero FinCorp, the non-banking finance company (NBFC) arm of Hero MotoCorp, is charting and making a dual-course strategy with raising a $200 million loan to support growth and on the other side its much-anticipated ₹3,668 crore IPO remains delayed. The loan arranged by DBS Bank, comes amid mounting uncertainty across the <a href="https://www.planify.in/research-report/hero-fincorp/">Hero FinCorp IPO</a> date, with SEBI reportedly analyzing compliance issues.&nbsp; This reflects the company’s proactive liquidity management as it waits for the Hero FinCorp IPO to receive regulatory clearance. Targeting institutional investors in Taipei and other global markets, this funding strategy may offer breathing room for Hero FinCorp shares while enhancing its lending capacity. The story of this operational masterstroke and the brewing excitement around the Hero FinCorp IPO Date yields insight into how leading NBFCs adapt, manage risk, and sustain investor interest even when the timeline for going public is uncertain. The outcome has experienced various&nbsp; deep implications for those tracking and observing Hero FinCorp Shares in the <a href="https://www.planify.in/buy-pre-ipo/">pre-IPO market</a> as investors curiously await the opening bell for the Hero FinCorp Upcoming IPO. Hero FinCorp IPO Details In August 2024, Hero FinCorp filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), aiming and offering to raise ₹3,668 crore through an IPO. The issue offering incorporates a fresh issue of shares worth ₹2,100 crore and another offer for sale (OFS) amounting to ₹1,568 crore through existing shareholders, including AHVF II Holdings Singapore II Pte.Ltd, and Link Investment Trust, and Otter Ltd . Lead managers comprises stalwarts which includes JM Financial, BofA Securities, HSBC Securities, ICICI Securities, Jefferies, and SBI Capital Markets. The proceeds from the fresh issue are earmarked to enhance the company's capital base, in the main to assist its lending activities across retail and MSME segments. This capital infusion is expected to further enhance Hero FinCorp's ability to extend credit score, thereby contributing to its growth trajectory.&nbsp; However, the journey hit a regulatory roadblock. The Securities and Exchange Board of India (SEBI) held back approval amid concerns about compliance with pre-IPO share sales and shareholder cap limits under the Companies Act—a situation that has significantly impacted the listing timeline for the Hero FinCorp IPO Date. Regulatory Hurdles: Why the IPO Awaits the Green Light The Hero FinCorp Upcoming IPO faces a critical pause as SEBI scrutinizes compliance boundaries. Indian law restricts unlisted firms from increasing shareholders beyond certain limits within a year, and from broad-based private placement, to prevent regulatory breach. While the company emphatically denies any misconduct—and states it has maintained investor counts within prescribed thresholds—the extended review process continues, leaving no clear indication of when the regulator’s nod will come. This delay matters profoundly for anyone invested in the Hero FinCorp Share Price and those buying or selling Hero FinCorp Shares in the unlisted market. The delay means a longer pre-IPO phase, but, crucially, it also means that Hero FinCorp must stay nimble with capital—hence the $200 million loan’s significance. Let’s discover Hero FinCorp Pre IPO Price and Share Performance Investor confidence and the ongoing sentiment in Hero FinCorp Shares remains strong, with transactions in the unlisted segment and the activity in the market signals sort of optimism and reflecting both faith in the company’s fundamentals and anticipation of a successful listing.&nbsp;&nbsp; The Hero FinCorp Pre IPO price noticed the shares buying and selling between ₹1,200 and ₹2,175 over the past year, with a 52-week low of ₹1,210 and a high that touched record territory before retracing in early 2025. These price movements, coupled with sustained interest from institutional and retail investors alike, underscore the expectancy that the IPO may be price-accretive.&nbsp; The emerging excitement with cautiousness across the Hero FinCorp IPO and its pricing isn't always just aspirational; it’s underpinned through sturdy enterprise fundamentals. Hero FinCorp recently posted a 15% jump in interest earned—from ₹7,479 crore in FY24 to ₹8,589 crore in FY25—while other income grew nearly 49%. Assets under management and retail penetration remain industry-leading, spanning over 2,000 Indian locations and a diverse loan book that includes two-wheeler, personal, MSME, home, and secured/unsecured business loans. Navigating Challenges: Asset Quality, Profitability, and Growth Outlook No journey is without bumps. Hero FinCorp saw an uptick in bad loan write-offs—up 80% in the first three quarters of FY25—and gross NPA levels rising back to 5.36%, compounding earlier improvements post-pandemic. Heightened provisioning to safeguard the balance sheet has dented net profits (down from ₹637 crore in FY24 to ₹110 crore in FY25) and slashed earnings per share, reflecting industry-wide stress in unsecured lending and select SME segments. Nonetheless, the company’s operational playbook—diversifying capital sources, investing in technology, and maintaining a strong retail presence—remains on track. Market capitalization, even amid margin pressure, stands at a healthy ₹16,880 crore, signaling that the market continues to price Hero FinCorp for future upside rather than short-term pain. Hero FinCorp IPO: Growth at a glance​​<div class="se-component se-image-container __se__float- __se__float-none"><figure><img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXfpADDkmQiaXlJWh6tJDs45ckdApGHQYYltxzdgynS1KvxylH_HspcKPojmuNXraIQK-6DTXQJAUAngy0GlWd2Z0WBIHN9yEtnbJgv7kWZiBlNu39godPlmWWFOwnOaxVTWoqYtlA?key=UfNJs31mpgggW51tb3iohjId" alt="" data-proportion="true" data-align="none" data-file-name="AD_4nXfpADDkmQiaXlJWh6tJDs45ckdApGHQYYltxzdgynS1KvxylH_HspcKPojmuNXraIQK-6DTXQJAUAngy0GlWd2Z0WBIHN9yEtnbJgv7kWZiBlNu39godPlmWWFOwnOaxVTWoqYtlA?key=UfNJs31mpgggW51tb3iohjId" data-file-size="0" data-origin="," data-size="," data-rotate="" data-percentage="auto,auto" origin-size="1104,420" style="margin-left: 0px; margin-top: 0px;"></figure></div>​ <div class="se-component se-image-container __se__float- __se__float-none"><figure><img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXe9IFIrws5GLTAoOD_ethASJ77td5iyBVMjpdg45lPvksLKE78lZHNh2hQKtFnhT_cC_SjVXPqgkRHW7J9E_v9xL76wgMsArGHqAexCcjCN53xxURU6SCvnU_VdhXzkqVu0Gpb1gA?key=UfNJs31mpgggW51tb3iohjId" alt="" data-proportion="true" data-align="none" data-file-name="AD_4nXe9IFIrws5GLTAoOD_ethASJ77td5iyBVMjpdg45lPvksLKE78lZHNh2hQKtFnhT_cC_SjVXPqgkRHW7J9E_v9xL76wgMsArGHqAexCcjCN53xxURU6SCvnU_VdhXzkqVu0Gpb1gA?key=UfNJs31mpgggW51tb3iohjId" data-file-size="0" data-origin="," data-size="," data-rotate="" data-percentage="auto,auto" origin-size="1182,443" style="margin-left: 0px; margin-top: 0px;"></figure></div>​ Hero FinCorp IPO: Shareholding Structure Hero MotoCorp directly holds a stake of over 41% in Hero FinCorp; other significant holders include the Munjal promoter family and institutional investors such as Apollo Global, ChrysCapital, and Credit Suisse. This solid ownership mix is seen as a stabilizing factor, adding credibility and brand value in the run-up to the Hero FinCorp Upcoming IPO. The $200 Million Loan: Structure, Purpose, and Market Context In light of the delayed Hero FinCorp IPO Date and faced the postponement of the IPO, the company has proactively mandated DBS Bank to arrange a $200 million syndicated loan facility. Targeting Asia-Pacific institutional investors, especially through active roadshows in Taipei, this funding initiative aligns with a broader NBFC trend of diversifying capital sources via overseas debt markets, seeking lower borrowing costs and diversified lender profiles. Loan Structure and Terms The forthcoming loan is being structured with two distinct tenors—five years and 3.25 years—to suit different investor risk appetites. Pricing is yet to be finalized; however, market comparisons, such as Piramal Finance’s $150 million bond issued in 2024 at a 7.078% yield over 3.32 years, provide a reference point for expectations. Conclusion The ongoing saga of the Hero FinCorp IPO and the strategic $200 million loan offers a window into the evolving playbook of India’s NBFC sector. For investors, this is a rare blend of risk management, market adaptability, and operational resilience. For the broader financial sector, Hero FinCorp’s steps are a signal that resilient, forward-thinking institutions will thrive, listing day or not. Whether you’re watching the Hero FinCorp Share Price, considering the Hero FinCorp Pre IPO price, or preparing for entry with the Hero FinCorp Upcoming IPO, this is one financial story to watch closely. As new updates emerge—in price, dates, or regulatory green lights—expect the Hero brand to remain at the center of India’s financial headlines.

Hero MotoCorp, is charting and making a dual-course strategy with raising a $200 million loan to support growth and on the other side its much-anticipated ₹3,668 crore IPO remains delayed.

Hero FinCorp to Secure $200M Loan While IPO Awaits Green Light

In September 2019, the Punjab and Maharashtra Co-operative Bank (PMC Bank) was at the center of the largest <a href="https://www.nationalheraldindia.com/india/explained-what-is-pmc-bank-fraud-and-how-it-started">urban cooperative banking fraud</a>. The PMC Bank fraud burned the trust of the Indian banking sector, especially urban cooperative banks, a signal of the ultimate failures of corporate governance, regulatory accountability, and internal controls defects in the world of cooperative banking. PMC Bank incorporated in 1984 with the aim to be a multi-state scheduled urban cooperative bank, serving 137 branches distributed across the whole of Maharashtra and in other states including Delhi, Goa, Gujarat, Karnataka, Madhya Pradesh and Andhra Pradesh. It won the ‘Best Bank Award’ from various State cooperative banking associations for best customer service and operational efficiency. <h2 style="line-height:1.38;text-align: justify">Unveiling the Scam</h2>​ In September 2019, a whistleblower notified the Reserve Bank of India (RBI) about the fraud being committed by the management of PMC Bank by setting up phony accounts to conceal non-performing assets. The frauds were mostly committed and done to conceal loans given to the real estate company Housing Development and Infrastructure Limited (HDIL). Key findings included:​ Loan Exposure: PMC bank had an overall exposure and extended loans to HDIL is around Rs. 6,500 crore, which represents approximately 73% of its total loan book of 8,880 crore. Regulatory Breach: The bank contravened the RBI's exposure limit of a single borrower which disallows cooperative banks from lending more than 15% of their capital funds to a single borrower. Concealment Tactics: Management manipulated the banking application software of the bank to conceal exposure of the bank to HDIL. An estimated figure around 21,000 fictitious accounts were created to hide the NPA’s.<h2 style="line-height:1.38;text-align: justify">Regulatory Response and Legal Actions</h2>Upon discovery, RBI had imposed operational and transactional restrictions on PMC Bank under Section 35A of the Banking Regulation Act, 1949 for 6 months. Hence, the bank account holders could not make any withdrawals more than ₹1,000 from their accounts during this period. On 26 September 2019, a relaxation was observed in this regard, and a total of ₹10,000 can be withdrawn by the customers. The limit later increased to ₹1 Lakh. Joy Thomas the man behind the game (also known as Junaid Khan and serving as the MD of the bank, was suspended after acknowledging and admitted the exposure the overall experienced the aura of the bank to the troubled and in difficulty distressed realty company HDIL and also stated&nbsp; and conceded that the company had been violating and breaching the rules and regulations set by RBI for 5–6 years. Subsequent legal actions included:​ Arrests: Key individuals arrested included Joy Thomas (Managing Director of PMC Bank), Rakesh and Sarang Wadhawan (Chairman and Managing Director of HDIL, respectively), and several former directors of PMC Bank. Judicial Proceedings: In order&nbsp;to conclude this, the High Court appointed a three-members for the administrative high committee to oversee the sale of the assets of HDIL in order to pay the depositors of PMC Bank. HDIL together with its promoters Rakesh and Sarang Wadhawan, and&nbsp; along with several former bank officials are accused of committing fraud on PMC Bank. Public interest litigation filed and submitted in the high court that aims to seek the setting up of a committee to speed up the auction of HDIL's assets to pay depositors, has claimed that the realty firm or real estate firm owed ₹4,635 crore to the bank. According to the court verdict, there is condition required and imposed that if the proceeds from the sale and asset sales were insufficient and did not generate enough to pay or settle the dues implied, the committee would identify and dispose of the properties and liquidate other Wadhawans linked companies that were mortgaged or pledged with the PMC Bank. Impact on Stakeholders The scam had profound repercussions:​ Depositors: Thousands of depositors faced financial challenges as withdrawal restrictions and risk of losing deposits exceeding 1 lakh caused public protest and court cases. Banking Sector: The incident damaged trust in cooperative banks. This has led to a surge in regulatory oversight to check cooperative banks. Regulatory Oversight:&nbsp; The RBI got flack for not detecting the fraud earlier, and has admitted that the supervisory framework needs to be strengthened. <h2 style="line-height:1.38;text-align: justify">Resolution and Merger</h2>Similarly, to safeguard or in order to protect the interests of depositors and restore the confidence in the banking system, RBI had permissibly approved amalgamation of PMC Bank with the Unity Small Finance Bank Ltd. On January 25, 2022, ensured that all branches of PMC Bank were to be merged under the Unity banner, so as to restore normalcy and confidence among the <a href="https://www.planify.in/investors/">stakeholders</a>. Conclusion But even more importantly, what the PMC Bank scam has done is to raise serious issues of public trust, with deep weaknesses in India’s cooperative banking eco-system, from lax oversight, to technical manipulation , from corporate greed to delays in regulatory submission. For thousands of middle-class Indians, it wasn’t a question of numbers on a spreadsheet -- it was about losing their retirement, education funds, or medical deposits -- and the damage it has done has continued to shape the way small banks operate and how depositors view the system today.

Punjab and Maharashtra Co-operative Bank (PMC Bank) was at the center of the largest urban cooperative banking fraud.

The PMC Bank Scam (2019): Anatomy of India’s Cooperative Banking Crisis

In a significant development and a notable move within India's fintech landscape, Vijay Shekhar Sharma, the founder and CEO of Paytm, has voluntarily relinquished and surrendered 21 million employee stock options (ESOPs) valued at ₹1,800 crore approximately that are back to the corporation. This decision and action come in the wake of regulatory scrutiny and follow issues from the Securities and Exchange Board of India (SEBI) regarding the allocation of these ESOPs. Paytm has been under the lens of regulatory authorities, mainly the Securities and Exchange Board of India (SEBI), regarding the classification type of <a target="_blank" href="https://www.planify.in/investors/vijay-shekhar-sharma/">Vijay Shekhar Sharma</a> role and shareholding status in the corporation. Reports advocate that SEBI issued an immediate show-cause notice to Sharma and previous and former board members of One97 Communications Ltd., Paytm's parent organisation over alleged misrepresentation during the company's IPO in November 2021. The middle problem revolves around Sharma's classification as a promoter and the associated implications on regulatory compliance, especially regarding <a href="https://www.planify.in/sell-esop/">Employee Stock Ownership Plans (ESOPs)</a>. Specifically, SEBI contended that Sharma, who held a 14.7% stake in Paytm a year earlier than the IPO, ought to be classified as a promoter as opposed to and rather an employee, rendering him ineligible for ESOPs under Indian regulations. To make the process align with ESOP eligibility standards and required criteria, Sharma had reduced his shareholding to 9.1% by transferring 30.97 million stocks to Axis Trustee Services, which would appear on behalf of the Sharma family trust. However, SEBI maintained that this move did not sufficiently modify his status as a significant shareholder with impact over corporation decisions.&nbsp; This became more than a paperwork tussle—it struck at the heart of agreement for public market investors, lots of whom are skeptical of founder-led governance models that occasionally appear to choose insiders over broader shareholder interests. Understanding the seriousness of the regulatory scrutiny—and the observed potential for long-term reputational damage—Sharma made a dramatic decision: as per the headlines he would voluntarily surrender the entire 21 million ESOPs allotted and given to him under the 2019 scheme, having immediate effect. This was communicated in a letter to the board on April 16, 2025. The company’s Nomination and Remuneration Committee acknowledged the move the same day, officially canceling the options and returning them to the ESOP pool. The Settlement Dynamics: Voluntary Surrender and Its Terms Instead of a protracted regulatory battle, Sharma, together with the company, opted for an out-of-court settlement with SEBI. Through this process, he agreed to voluntarily surrender all 21 million ESOPs that had previously been awarded, with an immediate effect. This amounted, at prevailing share prices, to a forfeiture of about ₹1,800 crore—a number that underscores both the seriousness of the regulatory investigation and the scale of executive wealth potentially at play in such companies. The terms also included Sharma’s brother Ajay giving up a substantial tranche of options and paying a penalty, alongside a commitment from Vijay that he would not accept any new ESOP grants for the next three years. For Paytm, the return of these ESOPs triggered a technical but notable one-time, non-cash expense of ₹492 crore in its Q4 FY25 financials. This accounting hit, however, brings an important financial upside: the firm’s ESOP expenses in subsequent quarters will be proportionally lower, making for cleaner P&amp;L statements and fewer management distractions from stock-based compensation issues. The company's current market capitalization stands at approximately ₹55,141 crore, along with shares having gained 120% over the past 12 months despite being down 12% year-to-date. Market and Investor Response The market’s reaction to such high-profile moves is often nuanced, balancing immediate financial impacts against long-term governance benefits. In the immediate aftermath, <a href="https://www.planify.in/research-report/paytm-mall/">Paytm shares</a> experienced short-term volatility, reflecting unease about the headline ESOP expense and underlying concerns around governance. Following this, however, sentiment stabilized, with shares closing up almost 3% on the day of the formal announcement—an implicit acknowledgment that investors appreciated the clarity and finality a settlement brings, and recognized the founder’s willingness to absorb personal losses in the interest of restoring trust. Industry observers noted that the decision was interpreted as a strong gesture towards regulatory compliance and a marked improvement in corporate governance. For a market increasingly sensitive to issues of founder control, transparency, and legal adherence, actions like Sharma’s may well reset perceptions and bolster confidence in the company’s long-term prospects. Financial Implications: One-Off Costs, Ongoing Benefits From an accounting standpoint, the immediate ₹492 crore charge will deepen Paytm’s reported loss for the affected quarter, but this expense is not a cash outflow—it is a paper adjustment that recognizes the value of the returned ESOPs upfront. More importantly, future income statements will benefit from reduced ESOP-related costs, which may help accelerate the company’s push toward operational profitability. For shareholders, the fact that 21 million shares are now back in the ESOP pool, rather than remaining with the founder, serves to limit further dilution and may support stronger per-share earnings in subsequent periods. Governance Implications: Substance Over Form Becomes the Norm SEBI’s actions in the Paytm case have far-reaching implications for how startups and high-growth companies handle executive classification and incentives. The regulator’s willingness to look beyond technical compliance, scrutinize shareholding patterns involving family trusts, and question board decisions signals a move toward a more substantive, principle-based approach to enforcement.For other founders contemplating public listings, the message is clear: strategic financial engineering that aims to sidestep restrictions on ESOP grants or dilute promoter accountability will now be closely examined both in law and in spirit. This means robust board processes, greater use of independent directors, clear disclosures, and a willingness to forego personal benefits when regulatory lines are blurred. The Founder’s Dilemma and Leadership Reset For Vijay Shekhar Sharma, the decision to forfeit such a vast sum undoubtedly marks a pivotal moment in both his personal legacy and Paytm’s institutional development. This sacrifice goes beyond compliance—it is a public demonstration that founders bear heightened accountability when leading India’s new generation of publicly listed tech companies. By prioritizing regulatory clarity and company reputation over personal compensation, Sharma not only addresses the current crisis but sets a new benchmark for leadership in founder-driven organizations. Looking Ahead: Lessons and Structural Changes for Startups As India’s capital markets mature and more startups chart their way to stock exchanges, the incident serves as both warning and guidance: governance structures must keep pace with strategic ambition. Founders, forums or boards, and investors are required to make sure that their shareholding structures, incentive programs, and disclosures resist not simply legal scrutiny but the rising expectations of global capital markets. SEBI's ongoing work, which includes its notion to clarify the status of ESOPs for founders transitioning to promoter roles previous to IPO, reflects the regulator's motive to both incentivize entrepreneurship and shield retail investors from governance abuses. The cooling-off period and clearer grandfathering rules on pre-IPO ESOPs demonstrate a sophisticated approach that balances founder rewards and public accountability and duty. Conclusion&nbsp; Vijay Shekhar Sharma’s voluntary surrender of ESOPs valued at ₹1,800 crore is a defining moment in Indian corporate governance. The episode underscores the need for robust governance, transparent disclosures, and executive accountability—factors that will increasingly define the success (and survival) of founder-led businesses in public markets. As Paytm charts its next chapter under intense scrutiny, the lessons from this episode will echo across the startup ecosystem, prompting founders and boards alike to rethink the limits of technical compliance and lead with a greater sense of stewardship. By responding quickly, absorbing personal losses, and publicly resetting the governance narrative, Sharma has positioned Paytm on a path where trust can be rebuilt and regulatory wrangles can give way to renewed focus on sustainable business growth. As India looks to grow its roster of global tech champions, cases like these will serve as the blueprint for best practices in balancing innovation, ambition, and responsibility.

, Vijay Shekhar Sharma, the founder and CEO of Paytm, has voluntarily relinquished and surrendered 21 million employee stock options (ESOPs) valued at ₹1,800 crore approximately that are back to the corporation.

Vijay Shekhar Sharma Makes Big Move: Paytm Shares Worth ₹1,800 Crore Surrendered to Company

Ather Energy is at the center of this EV segment aiming to make strides with its upcoming ₹2,981 crore IPO.

Ather Energy's ₹2,981 Cr IPO: Charging Ahead in India's EV Market

The C2C Advanced Systems scam not only exposed the cracks in corporate governance but also became a wake-up call for investors

A Deep Dive into the SME IPO Scam

C2C Advanced Systems : From IPO Stardom to Scandal

With a record-breaking number of listings and substantial investor interest, the SME IPO boom not only highlighted the sector's potential but also underscored the evolving landscape of SME financing in the country.

SME IPO Boom: 2024’s High-Gain Listings and What Fueled Them

The Indian SME IPO market has been on an impressive growth trajectory, and as we step into 2025, the big question on investors’ minds is: Tech, Health, or Agri — which small and medium enterprises IPO sectors will lead the pack?

Tech, Health, Agri or consumer ? Which SME Sectors Will Lead the Pack in 2025

Gensol Engineering’s Debt Crisis: How It’s Impacting BluSmart and India’s EV Sector

﻿ESDS Software Solution, a Nashik-based and a fully-managed cloud service provider company, is set to record a new big move by filing its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for an IPO of ₹600 Crores. The company make efficient utilization of the funds that are&nbsp; raised through the ESDS&nbsp; IPO to facilitate data center expansion and growth, invest into AI-enabled GPU cloud infrastructure, and address long-term working capital needs. The company had previously filed draft papers for an IPO in December 2021 but withdrew due to unfavorable market conditions. For this renewed IPO effort, ESDS Software Solution IPO has appointed DAM Capital as the book-running lead manager. Overview of ESDS Software Solution Founded in 2005 by Piyush Somani, ESDS Software Solution has well established and evolved into an outstanding participant in the cloud services and data center landscape. The organisation offers a comprehensive suite of AI-enabled cloud solutions, managed services &amp; various offerings, data center infrastructure, and software solutions. ESDS's provider portfolio consists of Infrastructure-as-a-Service (IaaS) and Software-as-a-Service (SaaS), designed to offer businesses with secure, scalable, and generally cost-effective cloud solutions. ESDS caters to numerous and diverse clientele, including Banking, Financial Services, and Insurance (BFSI) companies, government establishments by way of utilizing the Government Community Cloud, and diverse firms. The company's prominent key clients and partners encompass SIDBI, PFC, STPI, Infrasoft Technologies, Tech Mahindra, and NTT Data Business Solutions. With a team of workers exceeding 1,000 employees across five data facilities in India, ESDS additionally continues a global presence, extending its operations to European, Middle Eastern, American, and African nations. The company is known for its patented cloud platform, eNlight, which gives auto-scalable cloud solutions for businesses across diverse sectors, which includes banking, government, healthcare, and e-commerce. With its Tier III data centers in Nashik and Mumbai, ESDS is a key participant in India's digital transformation, providing cloud website hosting and data safety services to customers throughout the country. The company has a strong recognition of Artificial Intelligence (AI), Machine Learning (ML), and Big Data analytics, which are increasingly driving strong demand for cloud-based overall solutions. In terms of financial performance, For FY24, ESDS reported a revenue of ₹286 crore and an income and PAT of ₹15 crore, demonstrating its financial overall performance. The organization's commitment to innovation is underscored through its research and improvement with a&nbsp; team of over 1000 customers, who're targeted on handing over sustainable and green solutions to customers. <div class="se-component se-image-container __se__float-justify"><figure><img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXdScyq5jA_0zlipXsPgZEZ20FxQnc8xN8dFAeIHpDIgkZm8eO6PHQiQsbYO9IfchkdFZvYRVOJxshdS2dGhTv-JRVfhNkBfYf0Ooya3bwPYkS6Th1-YbcTE3P87UTjH3ZXZweArEQ?key=AZ2dZovaHbLxroq9HTfc2Q" alt="" data-proportion="true" data-align="justify" data-file-name="AD_4nXdScyq5jA_0zlipXsPgZEZ20FxQnc8xN8dFAeIHpDIgkZm8eO6PHQiQsbYO9IfchkdFZvYRVOJxshdS2dGhTv-JRVfhNkBfYf0Ooya3bwPYkS6Th1-YbcTE3P87UTjH3ZXZweArEQ?key=AZ2dZovaHbLxroq9HTfc2Q" data-file-size="0" data-origin="," data-size="," data-rotate="" data-percentage="auto,auto" origin-size="752,452" style="margin-left: 0px; margin-top: 0px;"></figure></div> <a href="https://www.planify.in/research-report/esds-software-solutions-limited/">ESDS Software Solution IPO</a> Details and&nbsp; Objectives&nbsp; ESDS Software Solution's proposed IPO aims to raise as much as ₹700 crore through a fresh issue of shares. The organization intends to allocate the IPO proceeds in the direction of several key objectives, consisting of: Data Center Expansion: ESDS plans to increase its present information middle infrastructure to satisfy the growing demand for cloud offerings. Having strong technology along with heavy cloud computing solutions, The company majorly currently operates within 4 data facilities in India, located in Nasik, Mumbai, Bengaluru, and Mohali, with plans to double its capacity to 14-20 MW&nbsp; within the subsequent 1-2 years. Investment in AI-Enabled GPU Cloud: Recognizing the growing importance of artificial intelligence, ESDS intends to put money into GPU cloud infrastructure to assist AI-associated workloads. This investment aligns with the increasing demand for AI-geared up infrastructure and displays ESDS's dedication to technological development. Long-Term Working Capital Needs: A portion of the ESDS IPO proceeds may be allotted to meet the organisation's long-term working capital requirements, ensuring clean operations and sustainable growth. General Corporate Purposes: The ultimate remaining funds&nbsp; will be utilized for preferred corporate purposes, supplying ESDS with the flexibility to pursue strategic initiatives and capitalize on emerging opportunities. Competitive Landscape and Market Position ESDS operates in a surprisingly aggressive industry, competing with home and international cloud service vendors consisting of Amazon Web Services (AWS), Microsoft Azure, Google Cloud, Netmagic, and NxtGen Datacenter and Cloud Technologies. What differentiates ESDS Software Solutions is its recognition of vertical-unique cloud solutions, especially for authorities institutions, banking (BFSI), and healthcare. The corporation's proprietary cloud technology, together with its eNlight cloud platform, gives it an aggressive side in delivering cost-efficient and auto-scalable cloud computing solutions. ESDS Unlisted Share Price Performance&nbsp; Prior to the ESDS IPO, the ESDS Unlisted Shares were trading in the <a href="https://www.planify.in/buy-pre-ipo/">Unlisted Marketplace</a>. As of presently, the ESDS Unlisted Share Price is ₹410 per share. The ESDS Software Solutions Share Price within the unlisted marketplace is inspired by means of elements inclusive of the organization's financial performance, market sentiment, and IPO potential opportunities. Anticipated Implications from the DRHP 1. Strong Growth Potential in the Cloud Computing Industry India’s cloud computing marketplace is projected to develop at a CAGR of 22-25% over the next five years, fueled by digital transformation projects and the fast adoption of cloud services by businesses. ESDS Software Solutions is well-located to take advantage of this trend. 2. Proprietary Technology and Innovation The organisation's eNlight cloud platform is a key differentiator, providing auto-scalability, more enhanced security protection, and electricity performance. This specific patented technology strengthens ESDS’s market position in India's cloud computing sector. 3. Government and Enterprise Contracts ESDS has long-time period contracts with government bodies, PSU banks, and corporate clients, ensuring solid revenue streams. The organization's involvement in government-led Digital India initiatives further solidifies its increased capability and growth. Conclusion The ESDS IPO represents a significant milestone for the company, offering it an opportunity to raise capital for expansion, innovation, and long-term growth. The funds raised through the IPO will enable ESDS to strengthen its data center infrastructure, invest in AI-enabled GPU cloud, and meet its working capital needs. The performance of ESDS Software Solutions Share Price post-listing will depend on market conditions, investor demand, and the company’s ability to execute its growth strategy effectively. ESDS Unlisted Share Price trends indicate a positive outlook, but investors must remain mindful of the risks associated with investing in the cloud computing sector. As ESDS Software Solutions prepares for its stock market debut, all eyes will be on SEBI’s approval of the DRHP and the IPO launch timeline. Given the strong demand for cloud services and data centers, ESDS Share Price is expected to attract attention from retail and institutional investors alike. ESDS Software Solution operates in a growing market with increasing demand for cloud services and data center solutions. The company's comprehensive service portfolio, diverse client base, and focus on innovation position it favorably in the industry.

ESDS Software plans to submit DRHP for an IPO ₹600 Crores

﻿﻿Pace Digitek, a Bengaluru based multi-faceted solutions provider predominantly specializing and having vast experience in telecom passive infrastructure, has officially filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise ₹900 crore via an initial public offering. This <a href="https://www.planify.in/research-report/pace-digitek/">Pace Digitek Upcoming IPO</a> majorly aims to capitalize on the growing demand within the infrastructure and digital technology sectors, with the raised funds that is earmarked for capital expenditure and extensive general corporate purposes, as detailed in&nbsp; the DRHP. Key Highlights from the DRHP: IPO Structure and Objectives The proposed public offering includes a fresh issue of equity shares with a face value of ₹2, aggregating to be ₹900 crore. The company may additionally consider an optional pre-IPO placement of equity shares as up to ₹180 crore. If the <a target="_blank" href="https://www.planify.in/fundraising/">pre-IPO placement</a> is completed, the quantity raised could be decreased from the fresh issue. The IPO has allotted 50% of the issue to certified institutional purchasers, 15% to non-institutional investors, and the ultimate 35% to retail consumers. Unistone Capital Private Limited is the sole book-running lead manager, and MUFG Intime India Private Limited is the trouble registrar. The equity shares are proposed to be listed at the National Stock Exchange of India and BSE. Company Overview Pace Digitek Infra Pvt Ltd operates in the telecom passive infrastructure region, specializing in telecom tower infrastructure and optical fiber cables. The enterprise's industrial agency is classified into verticals such as telecom, electricity, communications, and technology. Pace Digitek commenced as a producer of passive electrical systems and has multiplied its operations to embody diverse merchandise, projects, operations and renovation, and services and answers. It offers turnkey solutions and has an operational presence across India, as well as in Myanmar and Africa. The enterprise has emerged as a primary service company in energy control, optic fiber laying, and energy management solutions. Utilization of Pace Digitek IPO Proceeds: Insights from DRHP According to the DRHP, the primary objective of the <a href="https://www.planify.in/planify-feed/pace-digitek-ipo-order-win-key-highlights/">Pace Digitek IPO</a> is to secure funding for capital expenditure requirements and trendy business enterprise functions. Specifically, ₹630 crore from the fresh issue is probably allocated closer to those objectives. These funds are intended to facilitate strategic projects, which consist of the growth of the organization's infrastructure and the enhancement of its operational competencies, as detailed mentioned in the DRHP. Approximately ₹630 crore is earmarked to fund capital expenditure requirements, mainly for the development of a 750 MW/1,500 MWh Battery Energy Storage System (BESS) venture for Maharashtra State Electricity Distribution Company Limited (MSEDCL) in Maharashtra.&nbsp; Pace Digitek Infra Pvt Ltd: Financial Performance A closer look at Pace Digitek's financial overall performance, as highlighted within the DRHP, presented a well-performed and&nbsp; shows an increased growth trajectory. The company presented strong statements in the books reflecting that its performance well surpassing numvews in terms of revenue from operations witnessed a vast surge of 383.81%, escalating from ₹503.20 crore in FY23 to ₹2,434.48 crore in FY24. Simultaneously, the earnings and Profit after tax (PAT) experienced an extraordinary growth of 1,290.38%, soaring from ₹16.53 crore in FY23 to ₹229.87 crore in FY24.&nbsp; For the six-month time period ending on September 30, 2024, the company stated overall revenue from operations reaching ₹1,188.35 crore and a profits after tax of ₹152.04 crore for this time period H1FY25. These financial metrics underscore the corporation's sturdy operational performance and marketplace positioning. <div class="se-component se-image-container __se__float-center" style="width: 50%; min-width: 100%"><figure style="width: 50%;"><img src="https://testing-planify.s3.amazonaws.com/sun_editor/df91dc9c-00ca-4277-a61c-6b3a97f7d34a_image.png" alt="" data-rotate="" data-proportion="true" data-size="50%," data-align="center" data-percentage="50," data-file-name="112211.jpg" data-file-size="42322" data-origin="," origin-size="752,452" style="width: 100%;"></figure></div> Market Dynamics​The DRHP acknowledges the competitive panorama, noting that Pace Digitek often operates within the telecommunications area, imparting infrastructure solutions to telecom operators. The DRHP highlights that whilst the organisation encounters opposition from different entities within the infrastructure and era sectors, it differentiates itself through whole solutions and a huge operational footprint. Pace Digitek Infra Pvt Ltd operates inside the exceptionally competitive telecom and electricity infrastructure industry, competing with crucial gamers like Sterlite Technologies and HFCL. However, its recognition of strength-efficient solutions, BESS tasks, and telecom energy management gives it a unique advantage. The company’s experience in executing large-scale telecom and power initiatives has positioned it as a key accomplice for telecom operators and strength distribution agencies. With India's growing adoption of 5G generation and renewable energy answers, Pace Digitek Infra Pvt Ltd is properly-positioned to capitalize on upcoming marketplace opportunities. The company's focus on the telecom passive infrastructure sector, which is experiencing growth due to increasing demand for data and connectivity, could also contribute to a positive market reception.&nbsp; Strategic Growth and Diversification Pace Digitek is strategically located to capitalize on India's 5G rollout and essential infrastructure projects in telecom and renewable energy. The enterprise's emphasis on renewable strength tasks, in conjunction with solar electricity power plants and telecom services, aligns with worldwide trends in the direction of sustainable infrastructure. Notably, Pace Digitek has secured seven out of 14 clusters in the BSNL 4G assignment, underscoring its capability for persevered boom. ​ Technological Advancements and Market Leadership Leveraging its knowledge in telecom infrastructure, Pace Digitek is growing into smart cities and renewable energy sectors, positioning itself as a key player in India's digital and green transformation. The organization's management of large-scale obligations, along with the BSNL deployment, highlights its operational prowess and innovation in delivering crucial infrastructure solutions. Esteemed Clientele and Robust Project Pipeline Pace Digitek's partnerships with predominant telecom gamers and its expanding client base make sure a steady float of high-rate initiatives. The organisation's experience in imparting turnkey answers and renovation services similarly solidifies its management in the infrastructure region.&nbsp; Investment Considerations and Future Outlook The Upcoming and impending Pace Digitek Share Price listing is generating significant interest within the funding network. While predictions concerning the appropriate listing fee are inherently speculative, several factors have to have an impact on its <a target="_blank" href="https://www.planify.in/buy-pre-ipo/">marketplace performance</a>. Pace Digitek's amazing economic boom, coupled with its strategic awareness of the telecom passive infrastructure sector, positions it favorably in the marketplace. The price range raised thru the Pace Digitek IPO, as mentioned inside the DRHP, are anticipated to power similarly expansion and innovation, probable improving shareholder price. Pace Digitek Unlisted Shares have garnered interest from investors seeking for opportunities earlier and prior to the IPO. While the unlisted marketplace gives near anticipated potential profits, investors ought to exercise caution and perform thorough due diligence, considering factors alongside liquidity risks, price volatility, and regulatory issues, as emphasized in the DRHP. The potential anticipated Pace Digitek Share Price &nbsp;upon listing is a subject of eager interest among investors. Currently, it is trading at ₹235 per share within the Pre-IPO marketplace, making significant upward progress. The stocks are reflecting an 18x P/E ratio, that is appreciably undervalued compared to the industry median of 46x.&nbsp; Conclusion The Pace Digitek IPO offers a unique investment opportunity in India’s growing telecom infrastructure and electricity storage location. With strong monetary performance, bold growth plans, and growing investor interest in Pace Digitek Unlisted Shares, the organization’s public offering is anticipated to attract exceptional attention and demand. For investors looking for relevant potential and exposure to excessive high-growth sectors like telecom, power management, and renewable energy, Pace Digitek Infra Pvt Ltd presents a compelling case. However, as with all IPO investments, some potential risks need to be cautiously evaluated before making investment decisions. Having its ₹900 crore IPO, Pace Digitek Infra Pvt Ltd is ready to take a first-class leap forward in its corporate journey, strengthening its presence in India and global markets.

﻿﻿Pace Digitek, a Bengaluru based multi-faceted solutions provider predominantly specializing and having vast experience in telecom passive infrastructure, has officially filed its Draft Red Herring Prospectus (DRHP)

Bengaluru-based Pace Digitek plans to raise Rs 900 crore via IPO, files draft papers with SEBI

In the early 2000s, the Indian IT industry was riding a wave of unprecedented growth. Among the companies that epitomized this boom was Satyam Computer Services Ltd.&nbsp; Satyam Computers was a shining example of India’s IT success story, competing with giants like Infosys, Wipro, and TCS. With a global presence, thousands of employees, and a strong client base, the company was a favourite among investors and analysts. But beneath the surface, a massive financial fraud was brewing. On January 7, 2009, the financial world was rocked when Satyam’s founder, Ramalinga Raju, admitted to orchestrating one of the biggest corporate frauds in Indian history. He confessed to inflating profits, manipulating financial statements, and creating a ₹7,000 crore accounting fraud that misled investors and regulators for years. The revelation sent shockwaves through the stock market—Satyam’s share price crashed by nearly 80% in a single day, wiping out thousands of crores in market value. The scandal exposed serious gaps in corporate governance, internal audits, and regulatory oversight. But how did a company that once boasted billion-dollar revenues and a strong balance sheet deceive the market for so long? Let’s break down what happened at Satyam Computers and how the fraud unfolded. About&nbsp; Satyam Computers Satyam Computer Services Ltd. was founded in 1987 by Ramalinga Raju in Hyderabad, India. The company started as a small IT firm but quickly grew to become one of India's largest IT services providers. By the early 2000s, Satyam was a global player, offering software development, system maintenance, and consulting services to clients across the globe. Its clientele included Fortune 500 companies, and it was listed on both the Bombay Stock Exchange (BSE) and the New York Stock Exchange (NYSE).&nbsp; The company capitalized on the outsourcing trend, leveraging India's skilled workforce and cost advantages. By 2008, Satyam employed over 53,000 professionals and operated in 67 countries, generating billions in revenue.&nbsp; However, this success was largely built on fabricated financial statements. For years, the company manipulated earnings, showing inflated revenues and profits to attract more investments and maintain its stock price. About the Fraud:&nbsp;How It Was Executed Ramalinga Raju and his associates engaged in one of the most elaborate financial frauds in Indian corporate history. The key fraudulent practices included: Inflated Revenues and Profits: Satyam overstated its revenues by falsifying invoices and inflating the number of clients. Fake bank statements were used to reflect higher cash reserves than the company held. Fictitious Bank Balances: The company showed non-existent cash reserves amounting to ₹5,040 crore to mislead investors and regulators. Manipulated Earnings Reports: By overstating earnings, Satyam’s stock price remained artificially high, allowing Raju and top executives to sell shares at inflated prices. Lack of Transparency in Corporate Governance: Satyam’s board failed to detect these irregularities, highlighting weak internal controls and oversight mechanisms. Financial Growth and Investor confidence before the fraud Satyam Computers was perceived as one of India’s fastest-growing IT companies. Institutional investors, including marquee foreign funds, held significant stakes, viewing the company as a stable and high-growth IT player. At its peak, Satyam’s market capitalization crossed ₹12,000 crore, and its shares were actively traded on both the NSE and NYSE.&nbsp; Satyam generated Rs. 25,415.4 million in total sales in 2003-04. By March 2008, the company's sales revenue had grown by over three times. The company demonstrated an annual compound growth rate of 38% over that period - (from 2003-08). <div style="margin-left:0pt"><table><tbody><tr><td>Financials (in Rs. Millions)</td><td>2003-04</td><td>2004-05</td><td>2005-06</td><td>2006-07</td><td>2007-08</td><td>Average Growth Rate (%)</td></tr><tr><td>Net Sales</td><td>25,415</td><td>34,642</td><td>46,343</td><td>62,284</td><td>81,372</td><td>38</td></tr><tr><td>Operating Profit</td><td>7,743</td><td>9,717</td><td>15,714</td><td>17,107</td><td>20,857</td><td>28</td></tr><tr><td>Net Profit&nbsp;</td><td>5,557</td><td>7,502</td><td>12,397</td><td>14,232</td><td>17,157</td><td>33</td></tr><tr><td>Operating Cash Flow</td><td>4,165</td><td>6,386</td><td>7,868</td><td>10,390</td><td>13,708</td><td>35</td></tr><tr><td>ROCE(%)</td><td>27.95</td><td>29.85</td><td>31.34</td><td>31.18</td><td>29.57</td><td>30</td></tr><tr><td>ROE(%)</td><td>23.57</td><td>25.88</td><td>26.85</td><td>28.14</td><td>26.12</td><td>26</td></tr></tbody></table></div>

The scandal exposed serious gaps in terms of a series of incidents of corporate governance, internal audits, and regulatory oversight.

The Collapse of Satyam Computers and its Aftermath

Satyam Computers Case: The ₹7,000 Crore Accounting Financial Fraud That Shook India’s IT Sector

This time the Studds Accessories IPO would be a complete Offer for Sale (OFS) where the promoter group and other shareholders plan to sell up to 77.9 lakh shares.

Helmets manufacturer Studds Accessories files second time IPO papers with SEBI

Grand Continent Hotels Limited, a Bengaluru-based mid-segment and mid phase hospitality player, listed its shares on the NSE SME platform on March 27, 2025. Although market participants and&nbsp; contributors keenly expected the major event to be positive, the shares made a flat listing and marked the market debut,&nbsp; price opened at ₹112.90 per share, slightly below and under planned issue price band of ₹113 at upper end.&nbsp; The subdued listing performance has induced investors to scrutinize the company’s financials, increased growth techniques, and aggressive competitive positioning within the industry. This flat listing indicates that even as investors were optimistic during the bidding segment, the broader market sentiments remained cautious post listing. <a href="https://www.planify.in/video-shorts/ipo-alert-grand-continent-hotels-ipo-review-apply-or-avoid-planify/">Grand Continent Hotels IPO</a> Subscription Status The IPO was open for subscription from March 21 to March 24, 2025. The resulting and provided <a href="https://www.planify.in/investors/">investor sentiment</a> and response to the IPO was decent and respectable, with an oversubscription of 1.79 times. Retail investors subscribed 1.32 times their reserved quota, non-institutional investors (NIIs) subscribed 1.39 times, and qualified institutional buyers (QIBs) subscribed over 2.93 times. Listing Performance and Market Expectations Upon listing on the NSE SME platform, Grand Continent Hotels' shares opened at ₹112.90, a marginal and slightly near decrease of 0.09% from the issue price. This muted listing aligned with market expectancies, as indicated by the grey marketplace premium (GMP) of ₹1, or 0.88%, which suggested a trading price of ₹114 per share in unofficial markets ahead of the listing. The flat listing displays a careful marketplace sentiment toward the organisation's potential opportunities that have and the overall situations of the SME market. About Grand Continent Hotels Limited Grand Continent Hotels operates in the mid-scale hotel sector and region presence, catering to upper-mid priced, mid-priced, and economy hotel and resort segments. As of September 30, 2024, the company has presented enlargement potential in conjunction with its joint venture associate entities, had 16 operational hotels with a total of 753 rooms across Karnataka, Tamil Nadu, Goa, Andhra Pradesh, and Telangana. The company's occupancy rate turned out to be 67.69% for the six months ending September 30, 2024, and 71.98% for FY24. Strategic Use of Grand Continent IPO Proceeds Grand Continent Hotels has earmarked the net proceeds from the IPO for specific strategic purposes: <ul><li>Debt Reduction: &nbsp;A massive factor (₹34.08 crore) is allocated for the repayment and/or prepayment of outstanding borrowings, that could help enhance the company's financial health and reduce interest expenses. </li><li>Expansion of Hotel Properties:&nbsp;Another significant amount(₹16.79crore) is set aside and allocated for growing hotel properties within India, aiming to grow the company's footprint and increase its revenue-generating expansion producing capability.</li><li>​General Corporate Purposes:&nbsp;The remaining funds would be used for general corporate purposes, providing the commercial enterprise organization with flexibility to address sudden possibilities or challenges.</li></ul> Target Audience and Service Offerings Grand Continent Hotels aims to distinguish itself by offering comfort providers at a competitive cost, targeting Indian middle-class guests and commercial enterprise tourists. The agency additionally makes a speciality of maintaining steady provider or service levels, optimizing infrastructure, and updating its offerings to align with evolving consumer expectations. Grand Continent Hotels seeks to cater to Indian middle-class guests and enterprise tourists by means of delivering differentiated but comfortable service offerings with a value-for-money proposition. The company emphasizes high-quality service at competitive prices and strategically locates every lodge in high and prime city regions to make certain accessibility and comfort. By focusing on this demographic and offering cost-effective hospitality solutions, Grand Continent Hotels objectives to carve out a notable marketplace position. Operational Strategies Grand Continent Hotels follows an asset-light model, normally working as properties under direct lease agreements. As of September 30, 2024, the corporation, in conjunction with its joint venture partner entities, manages 16 operational homes and hotel properties, totaling 753 hotel keys in the course of Karnataka, Tamil Nadu, Goa, Andhra Pradesh, and Telangana. The business enterprise also utilizes trademark license agreements and franchisee agreements with Sarovar Hotels Private Limited and/or Royal Orchid Associated Hotels Limited to supplement its sales and advertising and marketing efforts. Expansion and Future Focus Grand Continent Hotels plans to twofold or increase its number of keys across hospitality property from 753 as of September 30, 2024, to about 2000+ in FY26 through deliberate development and growth initiatives. The agency intends to pay attention to growing pinnacle upper-midscale and midscale hospitality assets. Part of the IPO proceeds could be used for growing and expanding hotel properties within India. <ul><li>Expansion Plans and Asset Light Model: Grand Continent Hotels plans to expand&nbsp; its footprint by combination of alternatives of an aggregate of owned and leased houses, leveraging an asset-light model to reduce capital expenditure. This technique is predicted to enhance return on equity (ROE) and drive resultant future growth.</li><li>​Focus on Occupancy and ARR (Average Room Rate): The company is focusing on improving its average room rates (ARR) while maintaining high occupancy levels. Strategic partnerships with prominent&nbsp; online travel aggregators (OTAs) that are further inclusive of&nbsp; MakeMyTrip and Goibibo are expected to boost and reinforce visibility and revenue.</li><li>Diversification into F&amp;B and Banquet Services: To mitigate revenue dependency on room tariffs, the company is expanding into food &amp; beverage (F&amp;B) and banquet services, which offer higher and better margins and recurring income streams.</li></ul> &nbsp;Grand Continent Hotels IPO: Peer Comparison​<div class="se-component se-image-container __se__float- __se__float-center" style="width: 50%; min-width: 100%"><figure style="width: 50%;"><img src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXeRAazqq5nQ52NSgJGoRszScPMCg7aczOu3UDevJaKMRAzxbWEPItw1sNdehGQ4qPx38COEeK1-70KDfv1bXwOA5MnPeJno6gYSL-vrt7DhqZFeHRu_F-tzMnhGpy_bEi0HOxRqrw?key=AZ2dZovaHbLxroq9HTfc2Q" alt="" data-proportion="true" data-align="center" data-file-name="AD_4nXeRAazqq5nQ52NSgJGoRszScPMCg7aczOu3UDevJaKMRAzxbWEPItw1sNdehGQ4qPx38COEeK1-70KDfv1bXwOA5MnPeJno6gYSL-vrt7DhqZFeHRu_F-tzMnhGpy_bEi0HOxRqrw?key=AZ2dZovaHbLxroq9HTfc2Q" data-file-size="0" data-origin="," data-size="50%," data-rotate="" data-percentage="50," origin-size="947,540" style="margin-left: 0px; margin-top: 0px; width: 100%;"></figure></div>

Factors Influencing the Flat Listing Several factors may have contributed to the flat listing of Grand Continent Hotels' IPO: Market Expectations: The listing was largely in line with market expectations, considering the moderate grey market activity prior to the IPO. Subscription Levels: The company’s IPO has presented fluctuation due to the SME market prevailing in some recent IPO activity. Although the Grand Continent Hotels IPO was subscribed 1.79 times, this level of subscription may not have been strong enough to drive a significant premium on listing day and not able to make a mark above issue price. The IPO received an overall decent response from investors present the predicted potential, with retail investors subscribing 1.32 times, NIIs 1.39 times, and QIBs 2.93 times. Market Volatility: Fluctuations in the broader market &nbsp;panorama and shifts in investor sentiment can significantly impact the success of IPO listings. This has resulted in flat listing in the IPO and&nbsp; also the impact of uncertain market conditions tend to make investors more cautious. GMP Inaccuracy: Grey market premiums are not always reliable indicators of listing performance, as they reflect speculative activity rather than fundamental analysis. Implications from&nbsp; Grand Continent Hotels Post-Listing Grand Continent Hotels offer a mix of opportunities and risks. On the high-quality and positive aspect, the corporation’s strong brand recognition in the Bengaluru hospitality market, coupled with its asset-light model and growing occupancy rates, positions it nicely for long-term increased growth. However, demanding situations such as lower profits margins, stiff competition, and a fully priced IPO may additionally restrict short-term gains. Investors with a long-term horizon may find value in Grand Continent Hotels as it expands its operations and improves its margins, but those seeking quick post-listing gains may need to moderate their expectations. Expert Opinions and Market Sentiment Market analysts have taken a neutral to cautious stance on Grand Continent Hotels post-listing. While the company’s growth method and growth plans preserve their promise, the subdued listing average overall performance highlights the market’s issues about its current valuations and competitive positioning. Analysts believe that long-term investors can also revel in the company’s growth trajectory, but short-term price appreciation can also stay muted due to immoderate opposition and marketplace volatility. Conclusion Grand Continent Hotels’ flat listing on the NSE SME platform presents a balanced mixture of optimism and caution among investors. While the organisation has demonstrated good and steady financial overall performance and laid out a clear growth strategy, its listing valuation, competitive pressures, and ongoing current market conditions have tempered market enthusiasm. Investors seeking long-term exposure to India’s developing hospitality sector can also discover Grand Continent Hotels as an attractive option, however patience and a focus on long-term fundamentals would&nbsp; be key to identifying potential profits.

Grand Continent Hotels Limited, a Bengaluru-based mid-segment and mid phase hospitality player, listed its shares on the NSE SME platform on March 27, 2025.

Grand Continent Hotels IPO Lists Flat on NSE SME: What It Means for Investors

Nirav Modi, along with his uncle Mehul Chhoksi and several officials of the Punjab National Bank, has masterminded the biggest banking scam ever in India from book-keeping transactions to the tune of some ₹12,000 crore in early 2018. They are said to have exploited the loophole in Indian banking systems via the unauthorized issue of Letters of Undertaking (LoUs) by the PNB Brady House branch in Fort, Mumbai. This scam points out gross lapses in banking oversight and regulatory control, with serious financial and legal ramifications.&nbsp; ​ Key Figures in the Scam <ol><li style="font-size:15px;color:#000000;background-color:transparent">Nirav Modi – Diamond merchant and prime accused.</li><li style="font-size:15px;color:#000000;background-color:transparent">Mehul Choksi – Owner of Gitanjali Gems and Nirav Modi’s uncle.</li><li style="font-size:15px;color:#000000;background-color:transparent">Gokulnath Shetty – Deputy Manager at PNB, facilitated fraudulent LoUs.</li><li style="font-size:15px;color:#000000;background-color:transparent">Manoj Kharat – PNB employee, allegedly assisted in issuing unauthorized LoUs.</li><li style="font-size:15px;color:#000000;background-color:transparent">Multiple Indian banks – Overseas branches of Allahabad Bank, Axis Bank, and UCO Bank honoured these fraudulent LoUs.</li></ol> Inside the PNB Fraud The scam was carried out through fake LoUs, a type of bank guarantee issued by banks for businesses to obtain credit from foreign banks for international trade and assuring the lender that the issuing bank will repay the loan if the borrower defaults. The PNB officials including deputy manager Mr. Gokul Shetty colluded with Nirav Modi's firms-Diamond R US, Solar Exports, and Steller Diamonds-and issued fake LoUs without even a token cash margin whenever LoUs were to be used. These were then used to obtain credit from the overseas branches of Indian banks such as Allahabad Bank, Axis Bank and Union Bank of India. The fraud escaped detection because the transactions were kept out of PNB's core banking system (CBS) and executed through SWIFT, the international messaging network for financial transactions. Investigations and Arrest&nbsp; The frauds remained unexplained and sat on paper until January 2018 when officials of PNB noticed irregularities in the transactions that had passed unnoticed thanks to a recruit who raised further queries. As an afterthought, on January 29, 2018, the financial institution, alleging a main fraud by Nirav Modi, his wife Ami Modi, brother Nishal Modi, uncle Mehul Choksi, and involved several other bank officers that had have complained to the Central Bureau of Investigation (CBI). The case was also taken up by using the Enforcement Directorate (ED) and the Reserve Bank of India (RBI). Before 2011, Nirav Modi and Mehul Choksi created their firms within the diamond and jewellery business and they created networks with key financial institution officers and suppliers.&nbsp; From 2011 to 2017, PNB Brady House branch issued fraudulent LoUs which allowed Modi’s companies to secure loans worth ₹12,000 crore. The fraud remains undetected as Gokulnath Shetty bypassed the bank’s Core Banking System (CBS) and issued LoUs via the SWIFT interbank messaging system which is a loophole discovered by them. These LoUs acted as bank guarantees, allowing Modi’s firms to obtain credit from overseas branches of Indian banks. Since these LoUs were not recorded in PNB’s official ledgers, the fraud remained undetected for several years. The fraudulent LoUs were continuously rolled over, allowing Modi’s companies to siphon funds without repaying. On 29 Jan 2018, PNB filed a complaint against Nirav, Ami Modi, Nishal Modi and <a href="https://en.wikipedia.org/wiki/Mehul_Choksi">Mehul Choksi</a>, all partners of M/s Diamond R US, M/s Solar Exports and M/s Stellar Diamonds committed the offence of cheating against PNB and caused a wrongful loss to CBI. The PNB officials in his complaint alleged two of its employees, Gokulnath Shetty, retired Deputy Manager of PNB and another bank official, issued fraudulent LoUs to Hong Kong-based creditors on behalf of three firms associated with Nirav Modi and the Gitanjali Group. On 18 May 2018, The scam came out in front of the public domain worth ₹14,356.84 crore and Nirav Modi is stated to be hiding in London and allegedly visiting on a fake passport in Feb 2018. On 13 June 2018, CBI approached Interpol to issue a red corner notice (RCN) in opposition to Nirav Modi, his uncle Mehul Choksi of the Gitanjali Group, his brother Nishal and certainly one of his executives in connection with its explore for PNB fraud.&nbsp; Nirav Modi was arrested in central London on 19 March 2019 after an Indian-origin clerk at a bank in central London recognized him and alerted the police. The next day Nirav appeared in court and in that month a UK court rejected twice to grant bail on the ground that he was a flight risk and could flee the country if given a chance. Mehul Choksi, on the other hand, however sought refuge in Antigua and Barbuda, claiming he left India for medical treatment. His extradition remains an ongoing legal battle. <h3 style="line-height:1.38;text-align: justify">Asset Seizures and Legal Proceedings</h3>In the aftermath of the scam, Indian authorities initiated a crackdown on the accused by attaching their assets under the Fugitive Economic Offenders Ordinance. Swiss authorities froze Nirav Modi’s and his sister Purvi Mehta’s bank accounts, amounting to ₹283.16 crore. Similarly, Singapore’s High Court ordered the freezing of four bank accounts associated with Modi and his associates, containing ₹44 crore. In June 2020, a special PMLA (Prevention of Money Laundering Act) court ordered the confiscation of Nirav Modi’s assets and all the related belongings that amounted to ₹1,400 crore. The ED further auctioned off luxury objects, together with high-end watches, jewellery, and paintings, recovering ₹2.29 crore. In parallel, the CBI filed a disproportionate assets case against Gokulnath Shetty, revealing that his wealth was over 200% more than his known income sources. PNB and the Indian government. <h3 style="line-height:1.38;text-align: justify">Government and RBI Reforms</h3>The PNB scam revealed major loopholes in Indian banking regulations. The Indian authorities, in response, brought in the Fugitive Economic Offenders Bill (2018), which now enables the authorities to seize the assets of the economic offenders fleeing the country. The RBI additionally took corrective measures by scrapping LoUs and Letters of Comfort (LoCs) to prevent similar frauds from going onwards in the future.&nbsp; <h3 style="line-height:1.38;text-align: justify">Financial Impact</h3>​ PNB suffered direct losses of ₹14,356 crore, leading to:<ul><li style="font-size:15px;color:#000000;background-color:transparent">Net loss of ₹12,283 crore in FY 2018-19.</li><li style="font-size:15px;color:#000000;background-color:transparent">Stock price drop of 40% post-revelation.</li><li style="font-size:15px;color:#000000;background-color:transparent">₹5,473 crore provisions set aside for potential NPAs.</li></ul>Banking sector reforms:<ul><li style="font-size:15px;color:#000000;background-color:transparent">Stricter audit norms for SWIFT transactions.</li><li style="font-size:15px;color:#000000;background-color:transparent">Improved internal banking oversight to prevent such frauds.</li></ul><h3 style="line-height:1.38;text-align: justify">Current Status</h3>As of now, Nirav Modi is still fighting against extradition from the UK while Mehul Choksi's status remains murky in Antigua. The Indian government is still adamant in attempting to bring both fugitives to justice, as authorities continue to try and recover all other assets and make other financial institutions tighten security to avert such frauds in the future. Conclusion The PNB fraud case brings into focus the vulnerability of the Indian banking industry. While measures have been instituted to remediate the incident, the conduct reinforces the need for very strict regulatory scrutiny and technology upgradation to avert such high-profile financial crimes. This case illustrates the pressing need for international collaboration to counter economic offenders who misuse loopholes in legal systems to escape justice.&nbsp;

Punjab National Bank, has masterminded the biggest banking scam ever in India from book-keeping transactions to the tune of some ₹12,000 crore in early 2018.

The PNB Fraud: A Banking Scandal That Shook India

﻿In a latest development underscoring the crucial importance of robust cybersecurity and compliance frameworks in India's financial sector, HDFC Securities, a prominent well known domestic brokerage firm and corporation, has agreed to an agreement of settlement with the <a href="https://www.planify.in/planify-feed/sebi-board-meeting-outcome-key-reforms-for-sme-ipos/">Securities and Exchange Board of India</a> (SEBI). The agreement entails a charge of ₹65 lakh to clear up and resolve allegations of non-compliance with regulatory norms related to information era (IT) systems, disaster recuperation mechanisms, and cybersecurity protocols. Background of the Settlement The settlement originated from an initial previously published&nbsp; show cause notice (SCN) issued by SEBI on August 8, 2024, highlighting numerous non-compliances within HDFC Securities' operations. The organization sought to resolve these allegations "without admitting or denying the findings of data facts and conclusions of law" through a settlement order.&nbsp; Key Allegations Against HDFC Securities Inadequate Capacity Utilization Alerts:&nbsp; &nbsp;SEBI mandates that active alerts and signals should be generated at the time when&nbsp; the capacity usage of important&nbsp; assets exceeds 70%. However, HDFC Securities' IT guidelines lacked this provision, setting alert thresholds at 80% for some major applications and programs and 75% for CPU and reminiscence memory&nbsp; usage, thereby exceeding the regulatory restriction.&nbsp; Partial Implementation of Log Analytics and Monitoring Application (LAMA):&nbsp;&nbsp;The brokerage had not implemented the LAMA system for 47 out of 52 servers for the duration of the inspection duration period, elevating issues and raising concerns about its monitoring competencies and capabilities in terms of operations.&nbsp; Failure to Conduct Quarterly Disaster Recovery Drills: &nbsp;SEBI calls for brokers to conduct a full trading day disaster restoration drill in each area or quarter we can say to ensure operational resilience. <a href="https://www.planify.in/research-report/hdfc-securities-limited/">HDFC Securities</a> allegedly did not&nbsp; adhere to this mandate at some stage and this mandate restriction&nbsp; in the inspection period. Inadequate Cybersecurity and Cyber Resilience Policies: The company's guidelines or policies were observed missing in numerous areas, along with the incomplete categorization of important packages of applications and servers, that is critical for figuring out and defending or protecting&nbsp; essential assets.&nbsp; The organisation's cybersecurity and cyber resilience policy lacked a described frequency for accomplishing periodic cybersecurity and information safety recognition training for employees. Additionally, the coverage policy failed to categorize vendors as critical or non-crucial, an important degree and measure for powerful risk management and making sure of security protocols for high-risk partnerships. Improper Classification of Critical Assets HDFC Securities allegedly didn't classify positive important packages of applications, consisting of the active directory or listing for employee logins and its internet-going through website concerns, as crucial assets at some stage in the inspection duration long term period, doubtlessly exposing them to protection and security risks. Settlement Process and Approval Following the SCN, HDFC Securities submitted a settlement document of application on August 8, 2024. SEBI's internal committee reviewed the application and encouraged a settlement value of&nbsp; worth ₹65 lakh. The excessive and high-powered advisory committee assessed the application on December 24, 2024, and the panel of whole-time members accredited the settlement amount on February 5, 2025. On March 4, 2025, HDFC Securities formally notified SEBI about the fee payment of the settlement amount. Implications of the Settlement The settlement of ₹65 lakh concludes SEBI's regulatory proceedings towards HDFC Securities concerning the identified violations. However, SEBI clarified that this agreement does not prevent further regulatory action in accordance with regulatory compliance, if HDFC Securities is later determined to have provided incomplete or misleading records, did not uphold settlement commitments, or violated any undertakings. The regulator keeps the authority to pursue additional measures if discrepancies arise. This settlement highlights several critical aspects pertinent to the financial industry: <ol><li style="font-size:16px;color:#222222;background-color:transparent">Regulatory Vigilance: SEBI's proactive approach in identifying and addressing non-compliance issues emphasizes the regulator's commitment to maintaining the integrity and security of the financial markets. </li><li style="font-size:16px;color:#222222;background-color:transparent">Importance of Robust IT and Cybersecurity Frameworks:&nbsp; Financial institutions are increasingly reliant on complex IT infrastructures. Ensuring these systems are resilient, secure, and compliant with regulatory standards is paramount to protect against cyber threats and operational disruptions. </li><li style="font-size:16px;color:#222222;background-color:transparent">Need for Continuous Monitoring and Compliance:&nbsp;&nbsp;The allegations against HDFC Securities underscore the necessity for continuous monitoring of IT systems, regular disaster recovery drills, and adherence to cybersecurity protocols to mitigate risks effectively.</li></ol> SEBI's Focus on Compliance and Risk Management This case highlights SEBI's emphasis on strict compliance and risk management within the financial sector. The regulator is working on finalizing a standard operating procedure (SOP) for applying settlement regulations amid a rising number of settlement matters. SEBI is also looking at achieving uniformity in applying the settlement formula for settling cases, ensuring consistent enforcement across the industry.&nbsp; The Securities and Exchange Board of India (SEBI) has been actively enforcing compliance across the financial sector, leading to a significant increase in settlement amounts. As of March 15, 2025, SEBI has collected ₹851 crore in settlements for the fiscal year 2024-25, a substantial rise from ₹125 crore in FY23 and ₹94 crore in FY24. This HDFC Securities settlement case serves as a reminder for financial institutions to maintain vigilant and proactive approaches to IT and cybersecurity management, ensuring the stability and security of the broader financial ecosystem.&nbsp; Conclusion The settlement between HDFC Securities and SEBI underscores the critical importance of robust IT and cybersecurity frameworks in the financial sector. Financial entities must prioritize stringent compliance measures to safeguard sensitive information and maintain operational resilience. SEBI's proactive enforcement actions serve as a reminder to all market participants about the necessity of adhering to regulatory standards to ensure the integrity and stability of the financial markets. The presented case underscores SEBI's commitment to ensuring that market participants adhere to strict regulatory standards to protect investors and maintain market integrity. As SEBI continues to enhance its regulatory framework and settlement processes, financial entities must prioritize compliance to avoid penalties and maintain investor trust. ​

HDFC Securities, a prominent well known domestic brokerage firm and corporation, has agreed to an agreement of settlement with the Securities and Exchange Board of India (SEBI).

SEBI Settlement: HDFC Securities to Pay ₹65 Lakh for Breaches

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