I had subscribe to rights issue in July(rs 110)payable in three tranches rs 55 in July 2020 and 27.5 in jan2021 and 27.5 in July 2021.my question how do we pay the second tranche which is due now(jan)or will it be auto debited.
First call is due from Jan 15 to 29 jan.one can pay online using netbanking.
Now, HDFC Bank is a SCSB (self-certified syndicate bank) whose name has been given in the list. However, there is no provision from on HDFC Bankâs website to make such a payment. Similarly, HDFC Securities (broker) also does not provide this facility.
I wrote to the registrar (Link InTime), that is handling this issue, about this and they said that the onus is on HDFC and not Link InTime. Interestingly, if we donât make the payment by 29th Jan, all the previous money paid to the company in the first tranche will be forfeited!
Given that the Indian capital markets have not seen many partly paid shares before (I am assuming - pardon me if I am incorrect), I believe that this is a serious deficiency in the Financial Market Infrastructure that should be resolved asap, to make sure that investors donât end up losing money just because there is no payment mechanism!
Would appreciate everyoneâs thoughts on this. Looking forward to your guidance.
Itâs sad that the Bank or the Broker have not provided the option to apply online but since the due date will expire soon,you should go ahead and apply via other options.
SEBI had issued a circular dated Dec 08 ,2020 regarding additional payment mechanisms to be provided for issues opening on or after Jan 1,2021.
You can complain to the bank and the broker citing the above circular so that this issue does not recur for the next call money payment or for other upcoming rights issue payments,you may also escalate the same to SEBI.
The physical ASBA application can be found here:
http://www.abfrl.com/docs/investors/First-Call-Notice/Physical-ASBA-application.pdf
You may navigate to this link to find the designated branch of your Bank.
SEBI - Self-Certified Syndicate Banks under the direct ASBA facility (equity issuances)
You will need to fill the above form and submit it to the designated branch of your Bank,once they verify your credentials they will block the amount in your account.
The other options for submitting application by Cheque or DD are given in the Instructions clearly.
Here is the relevant screenshot:
So you can visit the Axis bank branches mentioned in the above screenshot or send the Cheque/Draft along with fully filled form and acknowledgement slip to the Registrar before the due date depending upon where you live or whichever option is more suited to you.
I applied through icici netbanking and axis bank also there is option to apply.
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Any update on payment through SBI may please be intimated.
@tamu HDFC guys came to my home to collect the physical ASBA form. I am not sure about SBI atm.
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due date is 29th. form or cheque/dd has to reach them by 5pm. so please hurry for those who want to pay call money. i assumed kotak would have online mechanism hence didnt pay attention earlier. hence had to undergo 2 days of stress. and finally all it needed was for them to inlcude abfrl pp payment in their asba section. i had to manually request them to include it. it appeared under their ipo application section in ONLINE NET BANKING - not the trading website (kotak securties). In online banking site, IPO and ASBA application link was the same. I could only see Homefirst ipo name initially. and later they added abfrl pp payment link there.
in general, there are 3 ways of applying:
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entirely online process - no physical process or forms to be filled.
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partly online partly physical - ie. ASBA application form (which is there in the notice email received from the company. further process is done by scsb bank by blocking the funds in the account (ie no cheque or dd to be issued).
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completely physical process - ie payslip form to be filled (same is also attached in the notice) and cheque dd to be issued and handed over to axis/linkintime.
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friends having account with HDFCbank can apply through netbanking now.under the IPO section ABFRLpp will appear there
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SBI today has enabled accepting call money. 
others facing similar problem can now try.
Abfrl seems to be getting really aggressive for inorganic growth.first they acquired jaypore,Shantanu and Nikhil(51%) and then recently they acquired sabyasachi(51%) and today they announced a partnership with Tarun tahlani.All these brands are in the ethnic space.
Concall
Key highlights
Madura Segment
Revenue recovered to previous yearâs level on the back strong growth witnessed in other businesses
EBITDA stood at INR1.9bn (Loss of INR 10mn in 4QFY20) with EBITDA margins at 15.45%.
Lifestyle business
Revenue recovered 94% of previous yearâs level on the back of increased focus on strengthening casual wear and accelerating e-commerce growth
Casual portfolio share increased to 55% from 50% in the previous year.
EBITDA grew by 167% YoY at INR1.7bn with EBITDA margins expansion of 1139bps to17.55%.
The company has maintained aggressive expansion in new markets with addition of 100 stores in Q4 to end the fiscal with 2,379 stores (added by 383 stores in FY2021;
88% stores franchisee led)
E-com contribution to sales increased to 15% from 8% in FY20.
Allen Solly Prime has been piloted across various market Other Businesses
Innerwear and atheleisure business grew by 56% YoY on the back of higher demand for work from home categories.
The E-commerce business grew 1.5x during the quarter with the overall revenue share doubling to ~15%.
The business also expanded its distribution footprint by adding 5500+ new trade outlets during the year.
The company added 10 new EBO stores during the quarter taking the total store count to 47 stores. The company has reach of 27000MBOS.
Forever 21 revenue grew 7 % of the previous yearâs level and delivered profits for the second consecutive quarter. The company added 1 new store during the quarter.
American Eagle grew 80% YoY on the back of strong penetration of denim category. The E-commerce business share doubled during the quarter.
Global brands revenue grew by 100% YoY. EBITDA grew by 64% YoY depicting strong improvement in profitability. Own e-com site thecollective.in grew 5x during the quarter.
Pantaloons Segment
Revenue recovered 95% of previous yearâs level with LTL sales at 10.6% much better than 27% in 3QFY21âŚ
EBITDA stood at INR860mn (Loss of INR 380mn in 4QFY20) with EBITDA margins at 14.41%. Notably, superior inventory management and lower discounts aided in higher margins.
E-Commerce channel grew 3x
Close to 200 stores are Omni enabled. More than half of pantaloons ecommerce sales are being serviced from own stores
The company plans to open 60 new Pantaloons stores in FY22.
Other key highlights
As of May 25, 2021, 419 ABFRL stores are operational out of total count of 3,212 stores.
These stores have also opened recently.
The company expects demand recovery from end of 2QFY22.
The company reduced fixed costs by 12bn some of which is expected to sustain in FY22 as well.
The company expects inventory levels to normalize by FY22.
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ABFRL management at their recent meet (March 2021) gave segment wise sales and margin forecasts to be achieved in FY26 for individual business segments discussed in this report. Each segment did have good detailing on how they will go about achieving the numbers and the business strategy behind it. Stock is broadly flat at ~Rs200 levels since the meet happened suggesting that the street wants execution and not just rosy projections.
It is worth pointing out that in retailing businesses, focus has trumped overdiversification in the past. Most successful names today are known to do well in their core formats or categories and stick to that. This is the case globally as well. There is a risk that ABFRL is trying to do too many formats and categories and is trying to be too many thins to too many people. This is they key risk in this business in terms of whether they can create large incremental market cap over the coming years in the way retailers/ brands like Trent, Dmart or Page have.
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One thing to watch is how they execute and I hope they do not invest in more brands .one example I think of is HDFC bank (Trent) and icici bank(abfrl).scenario is similar to them.one thing about the management is they took time but turned around pantaloons and build rs 500 turnover in vh innerwear in a couple of years.
Thanks.
ABFRL Innerwear - Current sales are only Rs2800mn or Rs280 cr and the business is loss making. In their 2017, analyst they had promised to make it profitable by 2020 but have failed to do so until now.
The one potential Achilles heel is that ABFRL is outsourcing manufacturing unlike Page; the latter claims in-house manufacturing to be their key competitive advantage. Quality issues matter a lot in premium innerwear and donât show up early on. But these can weigh on a brand over time. We wonât know for sure if ABFRL can further scale up innerwear like Page.
On Pantaloons, agree they have stopped the losses and made it profitable. However , it still scores substantially lower than peers VMART and TRENT on most metrics.
Note above how Vmart and Trent make similar ROCEs to Pantaloons despite much superior margins. This is because they have higher working capital as they pay their suppliers within 10 days. Counter intuitive as it may seem, the very best retailers such as DMART, VMART and Trent do this to 1) keep suppliers happy 2) make them loyal and inculcate reliability 3) push for discounts which can be passed on the customers. Pantaloons does not do this right now.
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just a small thought here, Trent is just a 30k cr company compared to almost 19k cr mcap of Aditya birla fashionâŚthats just a mere 50% differenceâŚthe kind of difference wild market move like current can make negligible in a week or twoâs timeâŚ
Disc: Invested in Trent. Not a buy/sell recommendation
Pls look at market caps in relation to the sales and profits and size of the balance sheet. You will get what I meant. Another way to look at is market cap change versus last five years for Trent Vmart Dmart and ABFRL. I specifically used the word âincrementalâ for the very reason.
I hope that we have a fundamental discussion here and not basis what ifs.
For example - if ABFRL can go up 50pcnt, why cant Trent go up 100pcnt in the same time and widen that gap.
We are not trying to predict wild moves in this crazy market but assess long term and sustainable market cap creation over the next few years.
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No one is trying to predict market moves. My intention was not to predict anything but as you had mentioned Trent mcap as large when compared to ABFL so wanted to highlight that itâs mcap is not that large compared to its capabilities & growth potentialâŚI missed the word incrementalâŚI stand corrected and agree to your pointâŚ
No worries - was working on Trent. Seems an undisputed champion in their Westside business but I am getting a bit worried on their capital allocation in other loss making business - Zudio, Landmark, Trent Hypermarket.
We all know the consol ROCEs are poor. But the standalone ROCEs look poor too, even after removing the investment in subs. Basically, all the solid Westside seem to be getting squandered away in other formats. But will stop here and take this up in detail on the Trent thread.
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I work with Mensa Brands whose Team has come from Myntra. All I can tell you is there some interesting things happening at ABFRL post Flipkart coming in.
The secret to Myntra scaling up their private label brands like Roadster and HRX was reducing the lead time in Fashion to 45 days instead of 4-5 months.
ABFRL has also adopted the 12 season model from the earlier 4 season model. The new model will help the company to introduce latest designs in fashion every month thereby staying updated with the fast moving consumer needs. The company will also benefit from reduced lead time from 7 months to now only 45 days and tighter inventory for both the company and the distributors.
This model was mainly adapted as it would enable higher sell-through, lower markdowns, reduce design risks and pressure on liquidation of slow moving designs. Channel partners are also benefitted as they would not have to lock in their buys 8-10 months in advance and will be able do so on a monthly basis. The 12 season model is helping the company to optimize its inventory by providing them agility in drops of their built up fresh inventory and also molding their material inventory in a manner suitable to current trends. It will also reduce the pressure in the balance sheet in turn freeing
up more cash flows.
The new model has been possible on account of strong digital transformation of the supply chain. ABFRL uses state-of-the-art technology to create merchandise digitally, which basically means between the mills, factories, designers, and the product managers, the entire chain is created digitally which makes it really faster. The company now is also able to book with the channel partners digitally especially during COVID, this was a real boom even when physically the company were not able to reach their partners, they were able to book digitally with them.
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