Added to Swiss Military by activating TOPP using Google authenticator. It’s actually a simple process. Removing it after buying was also very easy.
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Swiss Military Consumer Goods quarterly results
YoY Sales growth 214%
YoY Profit growth 650%
NPM 5.8%
Base was low as the company started recently.
Rights issue details
Record date 23.07.2022 (for the purpose of determining the equity shareholders entitled to receive the rights entitlement in the rights issue 1:1 basis)
Issue price ₹4.5
Issue opening date 10.08.2022
Issue closing date 25.08.2022
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Pls correct me if wrong, this means that rights issued at rs 4.5 per share (CMP for same around rs 25)?
Also what percent allocation we may get? Say if I have 100 shares, what would be acceptance ratio in case I apply for 100 rights issue shares? Thanks
You buy 1 share at 25 and get 1 rights entitlement (1:1). Then you can buy another share at 4.5.
The equity is diluted. The share price should correct after rights issue is closed and you get the additional share. If it doesn’t correct, one can simply sell the additional share and and pocket the profit.
I have no previous experience in rights issue. This will be a new learning experience.
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Thank you for pointing out this small undiscovered stock. It does seem to be on the right path with a change in management and inclusion of the luxury goods brand to the listed company.
Also from the price movement today, the scramble to get in on the rights issue (1:1 basis for Rs 4.5) before the record date (23.07.2022) seems to have commenced
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Portfolio update
| Company name | Allocation |
|---|---|
| Tata Elxsi Ltd. | 31% |
| Central Depository Services (India) Ltd. | 14% |
| RPSG ventures | 13% |
| Borosil Ltd. | 12% |
| Tata Consumer Products Ltd. | 7% |
| Avenue Supermarts Ltd. | 7% |
| Hindware Home Innovation Ltd. | 6% |
| FSN E-Commerce | 4% |
| Swiss Military Consumer Goods* | 4% |
| Studds Accessories Ltd | 2% |
Tata Elxsi
Growth remains strong and demand is intact in spite of inflation. Attrition rate increased but is still lowest amongst the sector. Rupee depreciation decreased the effect of inflation. Valuation remains high at present.
A portion of it has been reallocated to other stocks.
Central Depository Services Ltd.
Growth rate has slightly reduced due to the market downturn.
BSE will have to reduce its holding from 20% to 15% due to directions by SEBI following which it will not remain as the promoter. This company will always operate without promoters under professional management.
They have bought 6% of ONDC.
A portion of it has been reallocated to other stocks.
RPSG Ventures
FSL is having growth reduction and margin contraction due to inflation. This will be mitigated to some extent by revenue growth from IPL rights. Performance of the LSG team was good in this IPL.
Naturali is getting good response in the FMCG division.
Borosil Ltd.
Anti dumping duty on China should help the glassware segment.
The Scientificware division has good growth rate, better margins and higher profitability than the Consumerware division. BOROSIL is the market leader in laboratory glassware in India. I will increase my position when the demerger happens according to cash availability.
Avenue Supermarts Ltd.
Company has nicely recovered from Covid disruption. Growth is back on track and margins have improved. The market size is large enough to accommodate any threat from quick commerce.
The E-commerce division is growing rapidly but is loss making at present.
Tata Consumer Products Ltd.
Recently acquired Tata Coffee has a better margin.
Tata SmartFoodz, NourishCo, Sampann, Tata Soulfull, and Tata Q have high growth.
Tata Starbucks is expanding nicely. Himalayan brand will also sell honey now.
It is an overall nice, defensive, full fledged FMCG company now.
Hindware Home Innovation Ltd
Acquisition of the manufacturing unit of the Building products division from AGI Greenpac Ltd (formerly HSIL) should improve the margin in coming quarters.
Smart appliances and pipes division is growing rapidly.
Margins will remain low due to the higher input and commodity prices.
Swiss Military Consumer Goods Limited
There is no conflict of interest with Swiss Military Lifestyle Products Pvt. Ltd as all business will be integrated with this company. Integration of all Swiss Military product categories like Bags, Luggage and Travel Gear, Travel Accessories, Electronics and other accessories should increase the revenue in coming quarters.
Its book value should turn positive when the rights issue is over.
*Price was halved when rights entitlement was given, so allocation decreased.
Studds Accessories Ltd
Price has fallen in unlisted market. Margins may take a hit this year due to increase in raw material prices. Waiting for annual report to come out.
No quarterly report is given in unlisted shares. Nothing to track at present.
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Just by looking at your Tata Elxsi allocation it makes me nervous. I also hold Tata Elxsi and largest holding but whenever it goes above 10%, I usually get uncomfortable and now it has already hit all time high I am going through the same. Thumbs up to you for holding such a large position in one stock.
On Swiss Military , Do you have any idea how much of revenue can come from Lifestyle Products ?
If I may ask, What is rationale behind increasing allocation in Borosil after demerger. Is it because there might be chances of price going down or something else ?
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I have reduced some quantity from Tata Elxsi but others have corrected more so its allocation increased automatically. I will further reduce when a new idea comes or if fund requirements occur.
Their main selling items are bags and accessories. They sell to corporate who use them for gifting. They have physical stores and online presence also. I expect the revenue to be much higher than the consumer division.
Price should fall after demerger as most people are invested for the consumerware segment only. It will depend on the listing price and subsequent fall. I am thinking of staggering the investment.
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Has anyone received any physical notification on the rights issue?
Not able to apply through HDFC Bank (not listed on their rights issue book) even though Zerodha has sent email intimation of the rights issue. In absence of ASBA, we are supposed to receive a courier of the Composite Application Form (CAF) and submit it at a Self Certified Syndicate Banks
Please advise on how to apply for the rights issue. Thanks
Fill this form for ASBA and submit to the bank.
You can also try online payment from registrar Alankit (https://www.alankit.com/)
If that also fails then last resort is sell the rights entitlement before 19.08.22 and buy the shares at market.
Check this site for any further details.
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Thanks Akash, appreciate your sharing ways to apply for Rights issue to the group. Wanted to understand why certain shares show in Rights/buybacks in our broker login and certain do not? This is very confusing and counter intuitive to take advantage of such situations as if we face trouble doing online, it may become a hassle…Thanks
Disc: Not invested but tracking
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I don’t know, this is my first rights issue. I have only applied in two IPOs till now.
Maybe there is some issue with HDFC Bank portal. My demat Zerodha account is linked with Axis Bank. It is showing the issue normally along with other IPOs in the internet portal of the bank. Going to bank for this is cumbersome.
If you have any previous experience with these special situations, please share.
Alternatively, if you have bank account which provides ASBA facility then you can make payment through bank account in ASBA section. For example in IDFC bank you get ASBA facility under investment section. You can scroll down to find Swiss Military Rights issue form. Fill the NSDL/ CDSL demat account no. and apply for Rights issue as per your eligibility. You need to pay rs 4.5 per share for Swiss Military rights issue. It is simple and straightforward. Keep the reference number generated after payment. DONE.
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Hi Akash,
Was interested in checking swiss military consumer goods after reading your thread
Anuj sawhney(bollywood actor in 2000’s) the current promoter, is MD of swiss military lifestyle products from 2009
Aman sawhney might be related as anuj and aman are directors in multiple other same companies. May be looks like a case of management/promoter rejig across group of companies controlled by sawhney’s. Nothing wrong with that.
Whether strategically anything changed for swiss military brand growth in India needs to be seen.
Any recent concalls, investor presentations, management interviews would be helpful
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ASBA from bank portal is the best way for rights issue. I was suggesting alternative route as the other person’s HDFC Bank portal was not showing this issue.
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Akash I have one query.
I was applying through Axis Bank.
So, Do I need to apply as a shareholder or RII ?
and Do I need to keep holding Rights Share in my Demat account while applying for Rights Issue?
I tried applying as shareholder, it was showing not allowed. It is only allowing RII category, it says not allowed in other categories.
I don’t think so. Allotment won’t happen till 25.08.22. Trading window closes on 19.08.22 so required quantity can be bought before that.
Same here.
What I meant was that should I let those Rights Share in my Demat account lapse and only then I will get the Right share while applying through bank.
Thanks.
Yes you must have the rights entitlement shares in your demat account on date of allotment, then only will it convert to normal shares after amount (4.5 per share) is deducted from the ASBA account.
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I had a look at other holdings of promoter in Zaubacorp. Here’s what I found.
Promoshirt Sm Private Limited owns the brand Swiss Military and has agreed to give exclusive right for the use of the brand name in India to Swiss Military Consumer Goods.
Kaizen Lifestyle Products Private Limited and Uninet Strategic Management Limited are amalgamated.
Swiss Military Lifestyle Products Private Limited business will be integrated into Swiss Military Consumer Goods.
Aaa Shenyang Container Seal Private Limited does RFID business and has been taken over by Swiss Military Consumer Goods.
Anushi Retail LLP is the promoter holding company of Swiss Military Consumer Goods.
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