Bajaj Finance successful closure of a Qualified Institutions Placement (QIP) of equity shares.

1. They have recently completed a Qualified Institutions Placement (QIP) of equity shares. This is a way for the company to raise funds by issuing shares to qualified institutional buyers.
2. The QIP raised approximately ₹8,800 crore by issuing over 1.21 crore Equity Shares at an issue price of ₹7,270 per Equity Share.
3. Some key highlights of this QIP:

• It is the largest QIP ever conducted by a Non-Banking Finance Company in India.
• The company received substantial participation from various entities, including sovereign wealth funds, foreign long-only funds, large domestic mutual funds, and insurance companies.
• The capital raised through this process will support the company’s growth in the coming years.

4. The entire QIP process was completed within 37 days, starting from the approval by the Board on October 5, 2023, and ending with the receipt of trading approval on November 10, 2023.

AllCargo Logistics mads two announcements

a. Issuance of Bonus Shares: The company’s board has approved the issuance of three bonus shares for each share held by shareholders. This decision aims to increase liquidity and allow more shareholders to participate in the company. It will also support their strategic restructuring plans. Importantly, this will utilize less than 15% of the company’s available reserves. This move follows a recent demerger of two businesses.

b. Financial Results: Apart from reporting financial results, company have been performing well in recent years, despite the recent acquisition of minority shares in Gati Express Supply Chain and Allcargo Supply Chain. The company has taken steps to reduce its debt and has exited non-core businesses. They are now focusing on an asset-light approach and digital strategy for future growth. Although there have been challenges in recent quarters due to the macroeconomic environment, the company believes that its strong balance sheet will support future growth.

My notes from latest concall i.e half yearly ended 30th September, 2023

• Believes coming decade or even beyond belongs to payment technology.

• Currently working, executing about four bank orders, which we got somewhere in Q4 last year and Q1 & Q2 this year, which we see having a good impact on the organization maybe two quarters later.

• Focus is on horizontal as well as vertical growth. Targeting certain business segments which are non-existent in our existing set of APIs.

• Our vertical growth is well-planned. Funnel looks good for now. We see impact coming in maybe two quarters later, considering the sales cycle.

• Invested heavily last quarter on Global Fintech Fest, got a great insight on the industry, also got a lot of inquiries coming in from various segments in the market for the product that we built.

• Earlier acquired Bank of Maharashtra order. This time, we got State Bank of Mauritius India Limited order as well. Will have an impact across TSP as well as API business.

• Business has two segments. One is the technology partner role that NPST
  plays with banks. Second is technology partner role that NPST plays with FinTech. When it
  comes to the value creation, our first business, where we work with banks, that
  is extremely important because that’s where we are actual owners of the processing engine, When you own a processing engine, you get the flexibility to push your business. When it
  comes to P&L, I think you should be looking at the API business because there we have a larger
  market to target.

• Revenue split is one third and two third, between TSP and API business.

• Volumes of processed UPI transactions will increase with:

  1. As and when we acquire new bank accounts. So should incerase with State Bank of Mauritius India Limited order win.
  2. Traffic on our existing banks increase.

• Aspire to continue the same growth trend for the next year as well.

• Currently processing 0.1% of total API volume, target is to have at least 20x market share from here on.

• NPST is currently processing 4 crores UPI transactions per day. Growth should follow the UPI growth trend which we are expecting to grow from 10 billion to 30 billion transactions per month in next two years.

• Currently processing 1.4 million monthly merchant transactions on Evok. Targeting 2.5x from here onwards for FY ‘25.

• Shifting from SME to main board ~ August 2024.

• Confident on achieving at least 14% to 15% revenue growth on a quarter-on-quarter basis for next five years.

• No seasonality in the bussiness as of now because the payment requirement is year round.

Disclosure: Invested.

Couldn’t agree with you more. Sometimes investors obsess over whats not there more than what is. Simetimes overanalysis leads to paralysis. Its often best to keep things simple.

The simplest proofs of Caplin’s business are:

1. The fact that they have never taken on any substantial debt and have still managed scale up on reserves and assets from internal accruals
2. Governmeent’s export data which is oretty grannular

If it walks like a duck, and if it quacks like a duck, its probably a duck.

Any active members on this thread?