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Who are the people of India Inc and Dalal Street in these companies: To India’s top industrialist Mukesh Ambani for big bull Rakesh Jhunjhunwala and cricket’s big player MS Dhoni,
Market watchers say a frenzy is already brewing in anticipation of these stocks getting listed soon. Investors are rushing to the unlisted market to buy these shares before the start of value unlocking.
Some of these firms have strong balance sheets and credible financials to support this frenzy.
ETMarkets.com put together a list of unlisted names that have been doing the rounds in the gray market in recent weeks amid speculation that they may get listed in the next 18 months.
HDB Financial Services (HDBFS) | Current Unlisted Market Share Price:
Rs 1,050
With strong parentage of HDFC Group, HDB Financial Services is one of the leading NBFC stock which is buzzing in gray market and is in high demand from investors. Established in 2008, the NBFC caters to both retail and commercial customers. It has a well-established business of loans, fee-based products and BPO services with a strong capital base. It has been accredited by CRISIL and CARE Ratings with ‘AAA’ rating for long term loans and bank facilities. Its short term loans and CPs are rated A1+, making it a reliable financial institution.
Expert Take: Sagar Shah of Ascent Wealth Advisors believes this is a good NBFC bet. Despite expensive valuations, it is poised to grow with a clean and strong balance sheet.
“People are buying this stock at a premium in the unlisted market. There is a high probability that the IPO will get strong over-subscription. Thus, it is boom,” he said.
sight Technologies | Current unlisted market share price: 650 . Rupees
Mumbai-based Nazar Technologies is one of the leading mobile game companies operating in India, West Asia, Africa, South East Asia and Latin America. Its operations include membership, freemium and esports businesses.
The company has independent subsidiaries, namely, Next Wave Multimedia and Nodwin Gaming.
Big Bull Rakesh Jhunjhunwala is supporting this venture, which is credited with some of the most popular games on the Google play store, such as World Cricket Championship, Chhota Bheem Race and Motu Patlu Game.
According to the company, the fall in profit by Rs 1 crore for FY 17-18 was on account of one-time non-cash and extraordinary expenses including group share payments and employee stock options.
Take Expert: Dinesh Gupta of Unlisted Zone says that the company has lost some of its sheen lately. However, it has been aggressive in acquisitions, most recently acquiring a Rs 7.5 crore stake in India’s leading quiz app Sports Unity.
Tamil Nadu Mercantile Bank (TMB) | Current unlisted market share price: Rs 370
Formerly known as The Nadar Bank, this lender has over 500 branches and 12 regional offices across the country. All the branches are computerized and interconnected. Hailing from Tamil Nadu, this bank has strong roots in South India.
Take Expert: This stock is getting mixed response from the market experts. Sandeep Ginodia of Abhishek Securities considers TMB a valuable bet. “The stock is available at 1.25 times book value. A strong loan book is keeping estimates high,” he said.
Gupta of Unlisted Zone said developments in Yes Bank and RBL Bank have led to losses in the unlisted market as there are better bets in the market.
Reliance Retail | Current unlisted market share price: Rs 600
Reliance Retail, a part of the Reliance Group, is the largest retail company in India. The Mukesh Ambani-led venture Reliance Fresh operates Reliance Smart and Reliance Market stores and has a turnover of Rs 1.3 lakh crore. It also operates all Reliance Digital, Mini Express stores and Jio stores.
Along with this, it also runs Reliance Trends, Trends Women, Reliance Jewels, Reliance Footprints and fashion website Ajio.
As per its annual report for FY19, the Reliance Industries subsidiary had 10,415 stores in over 6,600 cities and towns in India with a total area of over 22 million square feet as of March 31, 2019.
Take Expert: Ascent Wealth’s Shah believes the stock valuation is much higher than its peer Avenue Supermarts. Reliance Retail is operating in a big way, which continues to put pressure on margins. “The company has a very strong promoter. The retail story is set to prosper in India. ,
From a long-term perspective, he and Ginodia gave the stock a thumbs-up.
studs Accessories I Current Unlisted Market Share Price: Rs 700
Studds is one of the largest two wheeler helmet manufacturers in the world. It has a 25 per cent market share in India, which boasts of safety, comfort and style.
Established in 1983, the company has two manufacturing facilities spread over 6 acres in Faridabad, Haryana.
The company has a presence in 39 countries and has launched 36 new products in seven different sizes in the last three years. The company also manufactures two-wheeler accessories such as jackets, gloves and glasses. The company has already filed DHRP with SEBI.
Take Expert: Gupta said that the studs will benefit the most from the new Motor Vehicle Act. Helmets are in high demand in the market and the company has the largest share in the market. He informed that non-ISO-certified helmet manufacturers will soon be fined heavily.
Chennai Super Kings (CSK) | Current Unlisted Market Share Price: Rs 30
The unlisted shares of this IPL franchise have been attracting a lot of attention amidst the rumors of MS Dhoni’s possible retirement. CSK has been the most successful IPL franchise, winning the title three times. The unlisted shares traded in the range of Rs 12-15 in the last week of November, 2018 and then went up to Rs 30-35 by mid-April 2019.
Take Expert: Ginodia and Shah find this stock very attractive. Ginodia said the company’s FY19 PAT was on expected lines. However, Shah fears a dip in the brand value after Dhoni’s retirement. But, that too finds the performance of the stock at par.
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