Frequently Asked Questions about Pre IPO | Planify

 What are Pre-IPO shares, Unlisted and De-listed Shares?

(i) Pre IPO Shares: Every company needs funds to run the business. Funds are raised via debt or Equity. When funds are raised via Equity, the investors who are investing in the company want a good return on their investment. Let us suppose investors have invested Rs.500 Crores in the company. Now after 5 years they want to take exit and hand over company shares to other investors. So accordingly, the company plans for IPO to give exit to these investors, and generally, such information comes in media. Before the launch of such IPOs, we at Planify arrange Pre-IPO shares for our investors.

Benefits of Pre IPO Shares: These days, due to more awareness via social media/news-papers/news channels, IPOs receive a lot of attention and good IPOs are subscribed heavily. Therefore, getting a single lot in IPO is very difficult. Here, the Pre-IPO shares play a vital role. You can purchase these shares well below the IPO price before it actually launches on exchanges and gets the maximum benefit. The only lacuna in Pre-IPO shares is that there is a lock-in period of one year. It means you can’t sell stocks before one year from the date of listing. However, we at Planify consider that this should not be an issue because it is a well-known phenomenon that equity always rewards its investors who invest for a longer duration. Ex: Nazara Tech, Barbeque Nation, Studds, Chennai Super Kings, HDB, UTI AMC, Fino-Paytech, Suryoday Small Fin Bank, Utkarsh SFB, etc.

(ii) Unlisted Shares: Unlisted shares simply mean which is not listed on National stock exchanges like NSE or BSE and they don’t have nearby plans for IPO. There are a lot of good companies in the unlisted space which gives a very good dividend to their investors. Such unlisted shares are good investment ideas. The liquidity is an issue in these unlisted shares but we at Planify act as a market maker to buy and sell good-rated companies. Ex: Tata Technologies, Carrier Air Conditioning, etc. are such companies that are good dividend-paying unlisted companies and have not informed any IPO plans in the media.

(iii) Delisted Shares: The shares are delisted from national stock exchanges like NSE or BSE and currently not trading. The reason could be anything from not adhering to disclosures as per exchanges requirement or management call to delist the company. Ex: Essar Oil gets delisted from exchanges in 2015 when it was acquired by the Russian company. Essar Steel and Electrosteel are an example of other such companies.

How to Invest in Pre-IPO Companies?

Investing in IPO is something that is commonly practiced across the world. There are people that invest in company shares that are viable and likely to do well in the business market. A lot of people depend on the buying and selling of shares to earn their regular income. However, a fact that is little known is that you can buy Pre-IPO shares from companies and make a lot of money out of it. When a company is still in the startup phase, you can invest in its shares and end up getting unexpectedly amazing returns.

When you need to make sure that you are able to make money out of Pre-IPO shares in India, it is important to make sure that you have immense knowledge about the practice. You should know all about the company that you are investing with or at least know experts that can introduce you to the best companies to invest with. It is important to have the right information and able to help in investing in Pre-IPO shares in India because someone that is new could end up putting their money in the wrong hands. Here is a list of things that you can learn about before you buy unlisted shares in India:

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Pre-IPO Review & Analysis of Hero FinCorp Limited | Planify

Hero FinCorp Limited (HFCL) was incorporated in 1991 as Hero Honda FinLease Limited, due to a change in the ownership of its parent, Hero MotoCorp Limited (Formerly known as Hero Honda Motors Limited), the company changed its name to Hero FinCorp Limited.

HFCL is engaged in the business of financing, leasing, bill discounting, and other financial services. HFCL has a wholly-owned subsidiary – Hero Housing Finance Limited which is engaged in the business of providing housing loans.

In 2020, HFCLs retail business is present at 938 dealerships and services are available at more than 4000 touch points spread across more than 1900+ cities, towns and villages. HFCL’s loan against Property, SME and Emerging Corporate Business is operating out of 50 locations on the non-retail segment and processes more than 800 applications every month.

A subsidiary of Hero-Fin Corp:

The Company has one wholly-owned subsidiary company viz. Hero Housing Finance Limited (“HHFL”). HHFL had started its lending operations in April 2018. It is an all-inclusive housing finance company providing hassle-free home loans PAN India which includes the following products to its customers: (i) Home Loans, (ii) Loan Against Property, etc.

HHFL has shown tremendous growth and touched loans of INR 556.75 crore during the first year of its operation in FY19.

During the year, Hero-Fin Corp had invested INR 200 crore in HHFL by subscribing to 20,00,00,000 equity shares of the face value of INR 10 each on a rights basis.

Key Highlights of 2019

(i) Hero Motorcorp Limited (HMCL) holds a 41.03% stake in Hero-Fin Corp.

(ii) Hero-Fin Corp’s revenue and net profit have grown by 47.85% and 49.01% over the past three years.

(iii) Hero-Fin Corp’s capital adequacy ratio is well above the RBI norm of 15% and stands at 19.03%.

(iv) ICRA and CRISIL Limited have assigned ratings for the various facilities availed by the company as AA+.

(v) Hero-Fin Corp derives financial, operational, managerial support from Group HMCL (Group HMCL includes Group investment companies and individual promoters).

(vi) Hero-Fin Corp has a strong presence of institutional investors like Credit Suisse (Singapore) Limited which holds 2.58% in the company and ChrysCapital which holds a 10.56% stake in the company.

Key Highlights of 2020

(i) In FY20, Hero-Fin Corp has become India’s No.1 two-wheeler financing company.

(ii) In FY19-20, Hero-Fin Corp has crossed a milestone of covering 50 Lakhs customers, network at 2000 locations, and registered a growth of 40% in loan disbursement as compared to last year.

(iii) Hero-Fin Corp has disbursed 17827 Crores of loans in FY19-20.

(iv) Total AUM as of 31.03.2020 stands at 25182 Crores.

(v) PAT at 310 Crores up by 16% as compared to 268 Crores last year.

(vi) Employee's strength as of 31.03.2020 stands at over 7500.

(vii) Hero-Fin Corp has recommended a final dividend of Rs. 2.55/- per equity share for the financial year ended March 31, 2020.

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Guaranteed Income Plans | Planify

In the fast-paced lifestyle of today, even the little luxuries that we enjoy with our family make the loveliest memories. What if you could appreciate these moments without stressing over the related expenses? An extra income stream could make a difference. A savvy investment choice today can go far in ensuring that the lifestyle, you want for your loved ones, would for sure become a reality.

Along with meeting various goals of your dependents and supporting them financially, one important key in leading a stress-free life is having “Certainty in Life”. For instance, having the assurance that your salary will get credited to your account on time or the goals of your loved ones will get fulfilled, or their future will be secure even in your absence. After all, having these certainties can give you much-needed peace of mind. Guaranteed Plans can help you get this reassurance.

Guaranteed Plans recognize your hard work and efforts to provide your dear ones with a comfortable life now and in the future. These life insurance plus savings-oriented plans, guarantee returns in the form of a lump sum payout or regular payouts over a period of years.

What Is Guaranteed Plan?

A guaranteed plan provides assured benefit to the policyholders. This traditional insurance plan provides life cover, together with guaranteed payouts, if any, and maturity benefits, if any. Guaranteed plans, thus, act as another source of income by providing assured payout(s).

Any individual between 18 to 60 years of age may buy a guaranteed plan and may avail various advantages that accompany it account of Life Assured’s demise during the policy term, the Death Benefit is paid on to his/her nominee policy terms of guaranteed plans may vary from 10 to 30 years frequency of payouts may be chosen by the policyholder (lump sum, monthly or annual) depending upon the options available under the plan.

A guaranteed plan, thus, helps policyholders to fulfill their goals like funding their dream vacation, saving for their children’s education, and securing their family’s future.

What Do You Need To Do Before You Buy Guaranteed Policies?

Things that individuals need to consider before opting for a Guaranteed Policy are:

What are the returns you are looking at? The time period of the payouts and the premium to be paidThe type of income generation required

The above facts are influenced by the investors:

Present lifestyleEarningsFuture lifestyle they seek tax savings they want risk cover

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What is Employee Stock Option Plan | Planify

An ESOP (Employee stock ownership plan) refers to an employee benefit plan which offers employees an ownership interest in the organization. Employee stock ownership plans are issued as direct stock, profit-sharing plans or bonuses, and the employer has the sole discretion in deciding who could avail of these options. However, Employee stock ownership plans are just options that could be purchased at a specified price before the exercise date. There are defined rules and regulations laid out in the Companies Rules which employers need to follow for granting of Employee stock ownership plans to their employees.

ESOPs help companies to reduce their operational expenses. Companies give less salary to their employees but compensate the same through ESOP shares. This will help start-ups to acquire talent at a lower cost.

For example, let us suppose the package of the employee in the company is 10 lakhs per annum. The company may give 8 lakhs as cash and rest 2 lakh in the form of ESOPs i.e. shares of the company.

ESOPs have a certain time frame before which they can be exercised. It means employees have to work in the company for a certain period to get eligible for buying shares of the company. Generally, ESOP shares are given in tranches of 25% every year and 100% gets completed in 4 years. As ESOP shares are issued in tranches, the attrition rate (the speed at which employees are leaving the organization) gets reduced considerably. Employees think that if they leave early, they will not get the benefit from ESOPs shares. So they work longer in the company.

Advantage of ESOPs for Employees?

ESOPs can be a game-changer for the employees. If an employee is having ESOP shares of a company that has become Unicorn-name given to the startup having valuation above $1 Billion dollars, then the value of those ESOP shares will make employees super-rich.

We have seen this in the case of Flipkart India, when it was purchased by Walmart at a whopping valuation of 1.16 lakh Crores in the year 2017-18. Flipkart India had given ESOP shares even to the drivers of the company. So in that deal, everyone got a big chunk of return on ESOP shares and after that deal, many became millionaires.

Similarly, Paytm has issued ESOP shares to its employees at Rs.90 per share and in the unlisted market, it was sold in the price range of 5k to 18k. So we can calculate the kind of return they have generated. Obviously, the number of shares given to employees under ESOP scheme depends upon a position in the company but even then the small number of ESOP shares can make an employee rich once the company’s valuation touches the unicorn status.

The problem for Employees?

Liquidation is the biggest problem for the employees who are having ESOPs of the startups. Let us suppose the employee has ESOP shares in his/her demat account. And he/she wants to sell ESOP shares to get some immediate funds. So what is the solution?

They can approach the company requesting to buyback those ESOP shares. This option is not viable most of the time.

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Hero FinCorp Limited | Pre IPO | Review & Analysis

 Find and get information on Hero Fincorp Unlisted Pre IPO Shares prior to purchasing, selling, or contributing - Complete Review, Analysis, Products, Strengths, Financials and Valuations, Promoters, most recent News and assessed returns. 

Legend Fincorp is an NBFC which is a model of the Hero Honda bunch. Legend Fincorp by and by is occupied with the Consumer account and business loaning business. Legend Fincorp began its activities in 1992 by the name of Hero Honda Finlease 

LTD. The primary goal of the organization was to give medium-term credits to its providers and sellers.

The organization's Revenue and Net Profit expanded by a CAGR of 34.08% and 35% separately and resources under administration expanded from 3042 Cr in 2014 to 13,542 Cr in 2019. Credit payment additionally expanded by a CAGR of 53.04% from R.s 2502 Cr in 2016 to Rs. 9037 Cr in 2019. ICRA has given an AA+ rating to Hero Fincorp's present moment and long-haul advances. A year ago the organization recorded a profit of R.s 4.25/offer to its financial backers. 

Legend Fincorp is supported by solid administration, accounts, and development and we at play give it a 5 out of 5 appraisals. 

Check the total Research Report on Hero FinCorp Limited and keep yourself refreshed on the most recent news on Hero FinCorp Limited at saint balance corp IPO share value subtleties

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