Planify Feed

• Revenue-  In FY24, the company's revenue grew by 16%, rising from Rs. 2,23,653 cr. in FY23 to Rs. 2,58,388 cr., driven by robust performance across all product categories, including Consumer Electronics, Grocery, Apparel, and Footwear. This growth contributed to an increase in profitability, with profits climbing from Rs. 7,045 cr. in FY23 to Rs. 8,875 cr. in FY24. However, the company's EPS saw a decline, dropping from Rs. 13 to Rs. 11 during the same period.
• Financial Performance- In FY24, the company's total asset base expanded by 22%, increasing from Rs. 1,28,460 cr. in FY23 to Rs. 1,56,321 cr. Similarly, total equity witnessed a 22% growth, rising from Rs. 37,222 cr. in FY23 to Rs. 45,076 cr. in FY24.
• Business Outlook-The Indian retail market is among the fastest-growing globally and is projected to surpass US$1.4 tn by 2027. Reliance Retail's dedication to this dynamic sector is demonstrated by its significant investments across the retail value chain over the years. The company remains committed to driving innovation across formats and products, enhancing customer experiences, and meeting the evolving needs of consumers.

The Securities and Exchange Board of India (SEBI) recently introduced transformative measures for the Futures and Options (F&O) segment to address mounting concerns over investor losses and market volatility. These changes are aimed at balancing market stability with retail participation while prioritizing risk management and investor protection.

• A recent SEBI study revealed that over 93% of individual F&O traders incurred losses in the past three years, with an average loss of ₹2 lakh per trader. Despite these losses, a significant portion of traders continued to participate in the market, highlighting the need for better investor education and risk management strategies.
• The new rules are expected to reduce speculative trading and encourage more informed decision-making among retail investors. 
  

• Financial developments: MSE Financial Services Limited (MSEFSL) reported a total revenue of ₹11 Cr. for FY24, marking an 17.8% increase compared to ₹9 Cr. in FY23. The growth was driven by robust performance in broking services and increased digital marketing investments. Consolidated profit after tax (PAT), inclusive of profits from the associate company, stood at ₹1Cr., more than doubling from ₹47 lakhs in the previous year. Total expenditure rose to ₹10 Cr. from ₹8 Cr. in FY23, reflecting higher fee commissions and operational costs. Notably, employee benefits decreased by 13.8% to ₹1.5 crores, indicating improved cost management.
• Operational Developments: The company invested heavily in digital marketing to attract untapped retail investors. Also it has made significant proposal for restructuring involves demerging the Stock Broking and Depository Participant divisions and merging them with Daily Gong Financial Services Ltd. (DGFSL). The scheme is under review and awaiting approval from regulatory authorities, including SEBI and NCLT.
• Future Prospects: MSEFSL aims to expand its financial product offerings and focus on high-margin segments like mutual fund distribution and portfolio advisory. Company is shifting focus to leverage economies of scale and consolidate its business with group companies for operational efficiency.

KLM Axiva Finvest Limited has recently announced its financial results for Q2 FY25, showcasing strong performance.

• Revenue and Profitability: The company reported a year-on-year (Y-o-Y) total income growth of 7.7%, increasing from ₹76.7 crore in Q2 FY2024 to ₹82.6 crore in Q2 FY2025. This growth reflects the company’s ability to generate higher interest income and operational efficiency. Profit After Tax (PAT) exhibited an even more substantial growth, rising by 111.3% YoY, from ₹2.8 crore in Q2 FY2024 to ₹5.9 crore in Q2 FY2025. Quarter-on-quarter (QoQ), PAT increased by 42.4%, showcasing the effectiveness of KLM Axiva’s cost management strategies and scaling of its operations.
• Financial Position: KLM Axiva’s financial stability remains robust. The total loan book stood at ₹1,657.2 crore as of September 30, 2024, reflecting a marginal decline of 2.8% QoQ from ₹1,704.9 crore in March 2024. Despite this, the company maintained a healthy debt-to-equity ratio of 6.00 and demonstrated its capacity to meet financial obligations. Furthermore, its net worth was ₹272.0 crore, reflecting its strong capital base.

The Initial Public Offering(IPO) landscape has seen remarkable growth in recent years. However, not every IPO finds success in listing. A variety of hurdles, such as regulatory non-compliance, financial discrepancies, or lack of proper documentation, can derail the process.

Listing on the SME platform involves meeting stringent requirements, including detailed audits, compliance with SEBI norms, and thorough due diligence by merchant bankers. Even minor lapses can lead to delays or outright rejections. Additionally, some companies struggle with operational readiness or fail to generate sufficient investor interest during roadshows. The lack of 100% underwriting, a mandatory requirement for SME IPOs, can also result in postponed listings. These challenges underscore the importance of thorough preparation and professional guidance throughout the IPO process.

• The Indian IPO market has recently encountered a series of setbacks. Numerous companies, both large and small, have either postponed or withdrawn their initial public offerings (IPOs). This trend can be attributed to a confluence of factors, including volatile market conditions, regulatory hurdles, and concerns over valuations.
• One significant factor impacting the IPO landscape is the prevailing market volatility. Fluctuating stock prices and uncertain economic conditions have made investors cautious, leading to a decline in risk appetite. As a result, companies have been hesitant to proceed with their IPO plans, fearing adverse market reactions.

Learning from the Setbacks

• The failure of some SMEs to list on exchanges like BSE SME or NSE Emerge serves as a valuable lesson for others. Companies must focus on accurate financial reporting, regulatory compliance, and creating investor trust to avoid setbacks.
• Moreover, engaging with experienced merchant bankers, auditors, and advisors can significantly reduce risks. These challenges highlight the need for robust internal controls and strategic planning to navigate the listing process successfully. 
  

• Financial Performance: In Q2FY25, Swiggy reported a revenue from operations of ₹3,601.45 crore. The Adjusted EBITDA for the quarter stood at ₹-341 crore. Segment-wise revenues were as follows: Food Delivery generated ₹1,574 crore, Out of home consumption contributed ₹59 crore, Quick Commerce contributed ₹490 crore, Supply Chain and Distribution brought in ₹1,452.56 crore, and Platform Innovations added ₹25.3 crore. As of September 2024.
  
• Company Insights: Swiggy has made significant strides over the past decade, reaching over 118 million users and delivering nearly 3.5 billion orders. The company's network now includes 609 dark stores across 44 cities, showcasing notable growth and profitability improvements in both the food delivery and quick commerce segments. Swiggy continues to innovate and expand, particularly in the quick commerce sector, with plans to double the dark store area by March 2025.
  
• Future Outlook and Plans: Swiggy is targeting high-teens growth in Gross Order Value (GOV) for its food delivery segment, with the category expected to grow at a compound annual growth rate (CAGR) of 18-22% over the medium term. The company plans to double its store count and increase the average store size in quick commerce, aiming for a total dark store area of 4 million square feet by March 2025. Swiggy is also focusing on affordability and new consumption use cases through initiatives like Bolt, PocketHero, and Daily meals. The company is on track to achieve profitability by Q3FY26.
  

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Urban Tots convened its 4th Annual General Meeting (AGM) to review the company’s progress, discuss key achievements, and outline strategic plans for the upcoming fiscal year. The AGM highlighted significant updates, including the company’s financial performance, operational challenges, and initiatives aimed at improving profitability and market share.

Investor Update: Authorization for Additional Borrowings

• The company has passed a special resolution authorizing the Board of Directors to borrow funds as needed for operational and strategic purposes. This authorization includes loans, overdraft facilities, working capital arrangements, and other financing options, including non-fund-based credit limits such as bank guarantees and letters of credit.
• The resolution empowers the Board to borrow secured amounts exceeding the company’s paid-up share capital, free reserves, and securities premium, up to a maximum of ₹50 crore (inclusive of existing borrowings). These funds are intended to support general corporate purposes and strategic initiatives.
• To secure these borrowings, the company may establish liens, hypothecations, or mortgages on its movable or immovable assets as required. This measure ensures flexibility in accessing capital while maintaining the company’s growth and operational momentum.
  

Strategic Viewpoints for Investors:

1. Proactive Measures for Growth

To enhance profitability, the company is undertaking the following measures:

• Enhanced Marketing Efforts: Strengthening campaigns to increase customer acquisition.
• Product Diversification: Expanding the product portfolio to cater to a broader audience.
• Cost Optimization: Conducting a thorough review of expenses to identify and implement cost-saving measures.
• Strategic Partnerships: Collaborating with retailers to boost market reach.
• Customer-Centric Approach: Leveraging feedback to align product offerings with market demand.

2. Strategic Focus on Expansion 

Over the next fiscal year, the company anticipates measurable improvements in productivity through streamlined processes and intensified marketing efforts. These initiatives are expected to result in a broader customer base and an expanded product range, driving increased profitability. While precise figures depend on market conditions, the company is optimistic about achieving sustainable growth in the near term.

SEBI is looking after the investors in SME IPOs! 

• The recent reforms proposed by SEBI for SME IPOs are a significant step towards enhancing investor confidence and ensuring a more transparent and robust market environment. One of the primary motivations behind these changes is to address the growing concerns over the misuse of funds and promoter misconduct. These measures are designed to prevent fund misutilization and ensure that the capital raised is used for genuine business growth and development. 
  
• SEBI has recently published white paper on proposals where the first part is related to IPO at SME Exchange and conditions of migration from SME platform to Main Board post-listing. The second part deals with corporate governance norms, including post-listing disclosures by issuers listed on SME Exchange. Comments on the same may be submitted by December 4, 2024. Overall, SEBI's reforms are a comprehensive effort to strengthen the SME IPO framework, making it more resilient and trustworthy for investors.
  

The Nifty India Railways PSU Index is a specialized stock market index that tracks the performance of Public Sector Undertakings (PSUs) linked to the Indian Railways sector. It includes government-owned companies that play a significant role in various railway-related activities such as manufacturing equipment like locomotives and wagons, operating and maintaining railway networks, providing infrastructure like tracks and bridges, and supplying critical components and services. Constituents of the index, such as IRCON International, Indian Railway Finance Corporation (IRFC), and Rail Vikas Nigam Limited (RVNL), are weighted based on their free-float market capitalization. The index serves as a benchmark to evaluate the growth of India's railway modernization and infrastructure expansion, making it a compelling choice for investors. With government backing, many railway PSUs offer steady dividends and low-risk investments while aligning with India’s broader developmental goals in connectivity and logistics.

The results highlight Acko's continued efforts to strengthen its position in the Indian insurance market, emphasizing innovation, customer-centric solutions, and financial prudence despite ongoing challenges.

• ​Financial Highlights: Acko achieved a total revenue of ₹1,391 Cr in FY24, reflecting significant growth compared to ₹966 Cr in the previous year. However, total expenditure also increased to ₹1,847 Cr from ₹1,517 Cr, resulting in a net loss after tax of ₹456 Cr, an improvement over the ₹551 Cr loss reported in FY23. The company recorded a Gross Written Premium (GWP) of ₹1,870 Cr and maintained a healthy solvency ratio of 1.89, indicating its financial stability and adherence to regulatory requirements.
  
• Operational Achievements: Acko demonstrated its commitment to innovation and customer satisfaction by expanding its product portfolio. New offerings included the Acko Secure Shield Plus and Acko Event-Based Personal Accident Policy and the introduction of international travel insurance for retail customers. Acko also filed a new health cover designed for specially-abled individuals, showcasing its focus on inclusivity. In claims management, the company adopted automation for specific claims like windshield damage and expanded its network to over 4,000 hospitals. Notable features such as advance cash for non-network hospitalization and other customer-focused enhancements further streamlined the claims experience.
  
• Strategic Initiatives: The company emphasized broadening its range of motor, health, and travel insurance products while continuing to refine its investment strategies to balance risk and returns. With an Expense of Management (EOM) ratio of 55%, Acko remains focused on optimizing operational efficiencies.
  
• Future Outlook: The company’s growth strategy targets significant expansion in the retail health and motor insurance segments. Acko aims to enhance its service delivery by leveraging digital innovations and customer-friendly claims processes. Additionally, the company seeks to capitalize on the increasing penetration of insurance in India by introducing data-driven and tailored solutions to meet evolving market needs.
  

Notice is hereby given that 02/2024-25 Extra Ordinary General Meeting of Members of IKF Finance Limited will be held on Friday, the 20th December 2024 at the Registered Office of the Company situated at #40-1-144, 3rd Floor, Corporate Centre, M.G.Road, Vijayawada-520010, Andhra Pradesh, at 4.00 P.M., to transact the following special business:

• ​To alter the Memorandum of Association of the Company
  

​RESOLVED THAT, under the provisions of Sections 4, 13, and other applicable sections of the Companies Act, 2013, and subject to the approval of the Ministry of Corporate Affairs, the members of the Company hereby approve the amendment of the Objects Clause in the Memorandum of Association (MOA) by adding the following clause as sub-clause 4 of Clause III(A) in the main objects of the MOA:

"To act as corporate agents, representatives, sub-insurance agents, franchisees, consultants, advisors, collaborators, and group insurance holders for life, general, and health insurance and engage in the activity of promotion, distribution, sales, advertising, marketing of insurance products and also facilitate the customer in the claim settlements."

• The Board of Directors of the Company have recommended, interalia, the issue of fully paid-up Bonus Equity Shares in the proportion of 1:1 i.e. one new bonus equity share bearing face value of Rs. 5/- each for everyone existing fully paid-up equity shares of Rs. 5/- each, for approval by the Members at the EGM.
• The Record date to determine the eligibility of shareholders for the issue of Bonus shares be fixed for the purpose and be determined by the board of directors after approval of members.
• Further, as per applicable law, it has mandated that the allotment of shares in a bonus issue could be only in dematerialised form. Given the same, the shareholders holding original shares in the demat account shall automatically get the bonus shares credited directly to their demat accounts and in the case of shareholders who hold equity shares in physical form are requested to get their shares in dematerialisation form.

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• EGM Details: 
• • Time: 4:00 P.M. (IST)
    
  • Day and Date: Tuesday, 17th day of December, 2024
  • Via: Video Conferencing (“VC”) or other audio visual means (“OAVM”) to transact the businesses as set out in the Notice convening the EGM("EGM Notice")
    
  • Web-link to attend: https://instameet.linkintime.co.in
    

1. IPO Announcement and Regulatory Framework

• Purpose: The company plans to launch an Initial Public Offering (IPO) to list equity shares on recognized Indian stock exchanges, subject to market conditions and regulatory approvals.
• Legal Framework: The process aligns with the SEBI Issue of Capital and Disclosure Requirements (ICDR) Regulations, 2018, and the Companies Act, 2013. It includes filing a Draft Red Herring Prospectus (DRHP), followed by a Red Herring Prospectus (RHP) and a final Prospectus.

2. Offer Components

• The IPO may include:
• Fresh Issue: New equity shares to raise capital for the company.
• Offer for Sale (OFS): Sale of shares by existing shareholders, referred to as "Selling Shareholders."
• Additional private placement of shares may occur before the public offering.

3. Role of Selling Shareholders

• Eligible shareholders can participate in the OFS, provided their shares meet these criteria:
• Fully paid-up and free from liens or encumbrances.
• Held continuously for at least one year before filing the DRHP, with specific exemptions for bonus shares and certain scheme-related acquisitions.
• Shareholders need to provide legal and regulatory documentation, such as consent letters, KYC compliance, and equity ownership proofs.

4. Participation Process

• Deliverables: Shareholders must submit consent letters and other prescribed documents by a stated deadline. A failure to comply indicates non-participation and agreement to lock-in restrictions on unsold shares.
• Escrow Mechanism: Shares proposed for sale must be credited to an escrow account to facilitate transparent transactions.

5. Responsibilities and Costs

• Selling shareholders bear a share of expenses related to the IPO process, including fees for intermediaries, legal advisors, advertising, and compliance.
• Shareholders must confirm the accuracy of all statements about their shares in the offer documents and adhere to publicity restrictions.

6. Regulatory and Market Controls

• Lock-In Period: All pre-offer equity shares are subject to a lock-in of at least six months post-allotment to ensure stability unless exempted under specific conditions.
• Market Conditions: The company has the discretion to delay, modify, or cancel the IPO depending on regulatory approvals or unfavorable market scenarios.

7. Publicity Restrictions

• Communications related to the IPO must comply with SEBI regulations and avoid misleading or price-sensitive information.
• Shareholders and company officials must adhere to guidelines on public disclosures, advertising, and handling inquiries to prevent insider trading violations.

8. Potential Risks

• Participation in the IPO does not guarantee the sale of shares, as it depends on investor interest and compliance.
• Unsold shares will return to shareholders’ accounts under the escrow mechanism.

9. Flexibility and Withdrawal

• The company retains the right to amend IPO terms, reject incomplete submissions, or halt the process entirely.