I have read somewhere that one should be suspicious of companies with complicated structures and having this or that subsidiary.
The context is the rights issue of the Green Power Company. Its prospectus, at one page itself tells us that the money collected will go to:
(1)To invest/ infuse funds in our newly incorporated wholly owned subsidiary Delta Renewable Energy Private Limited (“Delta”): 14,350.00 (figures in lakhs)
(2) Repayment/Pre-payment of unsecured loan availed by our Company from Gamma Green Power Private Limited (“GGPPL”, one of the subsidiaries of our Company) & Clarion Wind Farm Private Limited (“CWFPL”, one of the step-down subsidiaries of our Company):1,364.46
(3) To lend fresh loans to GGPPL and CWFPL to facilitate them to repay/prepay in full or part of unsecured loans availed by them from SVL limited, one of the Corporate Promoters of our Company :: 6,035.54
(4) Part payment of security deposits towards contractual lease commitments of Beta Wind Farm Private Limited (“BWFPL”) one of the subsidiaries of our Company: 500

Should I think twice before applying in its Rights?
PS: I have withdrawn my bid after posting this, without waiting for the replies, as I couldn’t shake off the unease. I like people who talk straight and over-cleverness jars.

I think math is bit different here.
3KW battery consumes 3 units. So let’s consider Rs10/unit. So to charge battery, it takes Rs30. And range is around 100. So per kilometer cost is just Rs 30 paisa.
Let’s consider 40 paisa for margin of safety.

Where as Petrol scooter gives mileage of around 45. So per km cost is around 2.25.

Battery life is told to be 70000km. But if we consider 60000 to be on conservative side then to run 60k, EV will incur Rs 24000. While Petrol scooter will incur 135000.

So effective saving is 135000-24000=111000

This does not include maintenence cost which is more for petrol scooter.

So clearly you can purchase either new vehicle of just replace battery and continue.

OneSource credit rating report dated 25th Jul, 2024.

202407130742_OneSource_Specialty_Pharma_Limited.pdf (careratings.com)

Few interesting points –

• Stelis achieved sales of 173cr in FY24 compared to 40cr in FY23.
• Stelis achieved EBITDA breakeven for the first time in Q4 FY24.
• Stelis achieved sales of 78cr achieved with EBITDA of 9cr in Q1 FY25 with margins of 12%.
• Stelis’ order book as on Jun 30, 2024, is around 33mn $ (~270cr) with around 83cr advances received.
• Stelis’ sales is expected to be around 250-350cr in FY25.
• There are plans to raise equity in OneSource prior to listing.

There are few well known negative points which are also covered like – inventory write off for Sputnik vaccine, contingent liability linked to that, corporate guarantee & pledging in Strides to support OneSource.

The latest Annual Report is a delightful read.

EBITDA is just 4% of revenue.
PAT is 0.4% of revenue.
Is it even a good business for retailers to hold?