Good segmentation of the sectors visible in the PF. Further I would have tried to concentrate the PF to 15-17 stocks to allow it to gloom freely and enable me to trace each stock judiciously, atleast on quarter basis. Any outlook here please ?
I track almost all the companies on weekly basis at least…that’s possible for me because of first the quality of companies, promoters I have chosen to begin with and secondly the tracking metrics I tend to follow. I do not like to micro manage or even be micro managed myself…so have given some space to the chosen companies…moreover the major monitorable events happen once a while…too much monitoring can even lead to selling when not needed…so in short I am comfortably able to track what I want to track in all companies I have invested in…
But agree would have been better if I could have reduced the ones in technology and consumer discretionary baskets…but could not boil down to 1 or 2 names in each still…
In other picks, each have its own unique story despite being in similar sector also so would not want to sell unless see that story derailing…small ups and downs, whether I am able to track or not at right time, does not matter…
After a long time, saw market show some signs of distress but yet again it was consumed well. There has been a stagnation in some midcaps while decent downfall in others. I see a relay race being played by Nifty, CNX Midcap and Quality company midcap (an imaginary index of highly valued Quality midcap/small largecap firms)…with after each blip…the first to recover being Nifty, followed by strong catch up by midcap index and lastly a catchup by Quality Midcap imaginary index.
Although, above does not matter to me as I do not profit from it - not being a momentum investor yet…but interesting to observe for academic purposes!
Tatas yet again keep intriguing me with the way they are transforming themselves for the next leg of growth. With a Software powerhouse of India under their belt, now they intend to play china+1 in electronic manufacturing, 5G and what not…Tejas acquisition, revival of TTML and transformation of NELCO in satellite broadband field…they are leaving not a single company in their brand unattended…extraordinary to say the least!!
With multiple blips come and go in past 1 year, yet again I manage to not participate in the Pharma/Chemical story…something which makes me understand myself better…easy money in some of well known names could have been made by simply riding the momentum…but guess that’s not who I am…
Slowly & Steadily I have been building the consumer durables part of my portfolio…the part I had missed over last decade…and these blips provide me that opportunity…These are not cheap companies even now and very high PE…but thats because they are facing one of most adverse situation with their peak seasons getting hit frequently…I want to build quality such basket companies to form around 10% of my portfolio…maybe half way through now…
Technology, Retail and FMCG have been performing satisfactorily, baring an ITC, which forms approx. 10% of my portfolio. 10% of portfolio which I am not actively building since last 6-8 months now has been stagnant in a roaring bull market. Sometimes, I do think if I had added on to my Tata Consumer holding (or any other existing stock except consumer durables in my portfolio) an year back instead of starting fresh position in ITC, my portfolio would have performed exceedingly well. Having said that, I believe ITC is a company which would perform when everyone would least expect from it. I like the fact that their management able to cut so much noise and concentrate on doing exactly what they vision for…not easy and I appreciate that…
I am on constant lookout for technologically superior firms and new age digital plays which have a technological edge and a path to profitability business model. QSR is also something which excites me at this stage, other than some consumer durables/discretionary…
In Pharma, after lot of efforts (the maximum possible by my small ability), I had boiled down to Sequent Scientific to track and initiate position when get a chance. I did get a chance but did not pull the trigger so far…the accounting issue and the knee jerk reactions that pharma companies face became a little too much for my comfort levels yet again…lets see how I react later…
Overall, its been a good learning experience last few months…Zomato IPO, JD acquisition, multiple digital M&A, Tatas gaining strength to strength, new ecommerce rules possibility, China ed-tech new rules, Satellite broadband, Cloud in financials, Clean energy targets…not easy to digest the immense learning available in this amazing business world!! Cheers!!
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MNC QSRs - Thoughts, Ideas welcome!!
This is one of the theme I am focusing on for the coming decade. Writing a small snippet of simple thoughts on some major ones I track. Mostly qualitative thoughts -
-
Starbucks - “Tata” Starbucks, the only QSR in India where the parent owns significant equity. Starbucks own 50% equity. Therefore, I do not think they have a revenue sharing model like other QSRs…It is more of profit sharing…the best approach for a partner!
Needless to say, the rights would be exclusive Pan India -
Jubilant Foodworks - Exclusive Pan India rights for Dominoes…also in Sri Lanka, Bangladesh and Nepal. Only profitable QSR at present. Decent scale - The largest so far. Delivery based model would make it least capex/opex dependent. In hindsight, should have been primary target for accumulating last year and even this.
Dependent on only Pizza, but in every market - it has proven to be a decent Food & model to depend on.
Any insights on Promoters welcome!
- Burger King India - Exclusive PAN India rights. PE owned. Would probably be fastest growing for next few years. Cafe model may also come into picture.
So, in terms of variety - I see more variety/options and possibilities to experiment in a Burger King than compared to a Jubilant.
- Devyani International - Pizza, KFC (Burgers etc.), Costa (Coffee), Taco bell - multiple levers of Dine In, Delivery etc. to play. Would soon be debt free with IPO money. Yum brands own some minority equity stake in Devyani International (not sure how much, tried to find couldn’t get the number)
The rights are not exclusive in India although Nigeria & Nepal rights also present. A PE controlled Sapphire Foods also owns rights of Yum brands in India.
Nigeria is most populated country of Africa, not sure if they like these fast foods or what is the culture evolution there. Also, who else are competitors there. Insights welcome.
Also, deeper insights into promoters welcome as well. I see promoters as successful group in multiple businesses, including listed Varun Beverages which operates in similar license agreements with MNC.
- Westlife development - Rights for MCD is not exclusive. Another partner exists but they have not so good relationship with MCD. Not tracking latest development but Jatia group is preferred partner so far.
Insights if this company is run professionally?
So, as you can see apart from Starbucks and maybe Devyani, equity interest of parent is 0. Burger King India may have edge being PE controlled who can negotiate better and maintain decent relationship…regarding all of these, biggest risk I see is licence renewals, relationship issues etc. (but for same reason I had given Page a pass a decade back and proved wrong so far)…
Disc: Invested in Starbucks via TCP. Have a total 2% exposure to Burger King, Westlife and Devyani basket. Intend to consolidate to a single holding and probably add with time. Need Ideas/thoughts to identify best among these three for long term investment as my thinking also evolves.
Missed the Jubilant bus so far…Not a buy/sell recommendation.
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Devyani International is also operationally profitable and also free cash flow positive, even in the Covid year. On their P&L you will see depreciation and interest as the major expense items. Interest will go down to zero once they go debt free with the IPO money and they will become P&L positive as well.Plus they will have a lot of cash and continued internal accruals for growth. The below interview of Ravi Jaipuria with Bloomberg Quint is a good resource.
Also I know a lot of people from PepsiCo who worked very closely with Ravi Jaipuria during the transitioning of their bottling to Varun Beverages. All of them, without exception, speak very highly of Ravi Jaipuria’s business acumen and execution capabilty.
Disclosure: Got allotted one lot and added a bit to it on listing. Waiting to see price action over the next few weeks before adding properly. Very bullish on the QSR space.
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Agree, I did read on the interview…Once interest income goes away that will be big positive in my opinion as well.
This is valuable insight! Thanks. Also, I could see Varun Beverages trade at approx 60 PE which did give me some direction on how the street’s collective wisdom rates the promoter group. only quality Promoter groups get valued such highly. So this box is tick marked for now.
How would you rate a Bhartia group of Jubilant vs RJ group in terms of ethics, corporate governance, execution & capital allocation. Would be good to know.
Lastly, Jubilant holds exclusive Dominos rights in India, while Devyani does not hold exclusive rights. PE controlled Sapphire also holds rights for Pizza Hut and KFC. Under this light, I have some thoughts, thinking loud -
- Why and when do these QSR MNCs go for exclusive or non exclusive Franchisee agreements with their Indian Partners?
- Is it driven by negotiation skills of Indian partners or governed by the parent’s global franchise strategy?
- Can Sapphire and Devyani prove to be counterproductive for each other over long term?
- Is the franchise terms of Sapphire vs Devyani exactly similar or anyone of them has cut a better deal with the parent?
- In case of MCD - Jatia vs other party had franchise agreements evenly distributed geographically. So in a way, each had exclusive rights to half of India where they operated in. Is the agreement similar for Saphire vs Devyani or each can operate PAN india and end up fight among themselves in future? How big is this a risk over long term investment in Devyani?
- Back in around 2019, when Yum brands sold some approx 60 KFC stores to Devyani to go more towards the Asset light model they wanted to pursue (wish I had them directly for investment
) , they bought minority equity in Devyani. How much is that minority stake, anyone has insight? - Does Yum brands also has minority equity stake in Sapphire Foods? Does a minority stake in Devyani hold any meaning we can read into as Devyani being a more preferred Indian partner over long term than Sapphire?
- PE have a solid network effect, reaches and way of doing business and with Sapphire being a direct competitor to Devyani in its core brands itself - a formidable competitor…am I better off investing in other exclusive rights owners?
- Can MNC QSR overnight (or in next deal revision) turn exclusive agreements with Indian partner to non exclusive?
Thanks for your comments and good to know someone very bullish on the QSR space.
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Devyani doesn’t have Taco Bell rights. Burman Hospitality and Sapphire Foods run Taco Bell in India. Sapphire also runs KFC in India. I think Yum strategy is to split territories between two companies so that there is no dependency with one vendor.
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Thanks for the correction. Does Yum brands give rights to each partner PAN India or its divided geographically like how MCD had done? If yes, how is it divided between Sapphire and Devyani for for Pizza Hut & KFC?
As for a KFC is concerned, Yum has given it geographically. Devyani claims it has rights for the states where 90%+ population are non-vegetarians (south , north east and centers like Noida, Mumbai airport etc.).
For Pizza Hut, Devyani has PAN india rights for delivery. North and East for Dine-In.
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Some details of agreement in QSR companies are provided in the red herring prospectus and credit reports. I will quote a few extracts which you might find useful.
Burger King
Burger King India Limited Credit Ratings Report
‘Compliance with terms and conditions laid out in the MFDA remains critical for ongoing operations - BKIL has received exclusive rights to develop, establish, operate and franchise Burger King (BK) restaurants in India pursuant to MFDA among BK AsiaPac, QSR and BKIL. As per terms and conditions mentioned in MFDA, BKIL must open at least 700 restaurants by December 31, 2026 (revised from 2025) and should maintain debt to equity ratio below 2x always, among others. In case of any non-compliance with the terms and conditions laid out in the MFDA, BK AsiaPac holds the right to terminate the developmental rights given to BKIL. Therefore, complying with all terms and conditions laid out in the MFDA remains critical for BKIL’s ongoing operations.’
Devyani International Ltd
Devyani International Limited RHP
‘We accordingly amended the KFC DA on July 5, 2021, that sets out our development commitments until 2026’. ‘The development schedules set out the number of stores we are required to open each year’
‘The Amended KFC DA and New Pizza Hut DA also require us to issue certain bank guarantees to Yum annually to demonstrate our commitment to meet the development schedules.’
‘We have previously been unable to meet our minimum development obligations within
prescribed timelines, and while we have been granted extensions and have subsequently been able to meet such obligations within extended timelines’.
‘With respect to each KFC store, pursuant to the relevant KFC TLA, we have been granted, for the term of such KFC TLA, the non-exclusive right to use: (i) the KFC store system’
‘With respect to each Pizza Hut store, pursuant to the relevant PH TLA, we have been granted, for the term of such PH TLA, the non-exclusive right to use: (i) the Pizza Hut store system’
‘Pursuant to our Costa IDA, we had been granted exclusive development rights in India that were contingent upon our ability to meet certain development commitments set out therein. Owing to our inability to meet such development commitments and remedy our breach within cure periods that were granted to us, our exclusive development rights were subsequently terminated.’
As a result, while we have the right to operate our existing Costa Coffee stores for terms specified in the operational agreements with respect to such stores, we are refrained from opening any new stores in India unless we receive Costa’s prior consent to do so, thereby limiting our ability to grow our Costa business.’
Sapphire Foods India Private Limited Credit Report
‘Compliance with terms and conditions of development agreement with Yum! and judicious funding plan for future capex will remain critical – SFIPL (standalone) had plans to open a pre-determined number of KFC and PH stores as per the arrangement with Yum!. While the company has revised its capex plans for CY2020 and CY2021 based on the relief agreement, its ability to set up the targeted number of stores and avail maximum benefit under the arrangement, will remain a key monitorable. Furthermore, a prudent funding pattern; with limited reliance on debt to fund the expansion plans will remain crucial from the credit perspective.’
Jubilant FoodWorks
Jubiliant Foodworks RHP
‘This agreement provides us with the exclusive right to develop and operate Domino’s pizza delivery stores and to use and license the Domino’s system and the associated trademarks in the operation of the pizza stores in India, Nepal, Bangladesh and Sri Lanka. The term of the Master Franchise Agreement continues until December 31, 2024 and is renewable for a period of 10 years, subject to the fulfillment of certain conditions.’
‘The Master Franchise Agreement may be terminated by Domino’s International as a result of a breach under the agreement by us, including, without limitation, due to our bankruptcy, our failure to make payments to Dominos’ International under the agreement, our failure to keep the ingredients, supplies and materials used in the preparation, packaging and delivery, confidential and our failure to open such number of new stores as required under the Master Franchise Agreement.’
Tata Starbucks
Tata Starbucks Private Limited, formerly known as Tata Starbucks Limited, is a 50:50 joint venture company, owned by Tata Consumer Products and Starbucks Corporation, that owns and operates Starbucks outlets in India. The outlets are branded Starbucks “A Tata Alliance”.
Westlife Development
Hardcastle Restaurants Credit Rating Report
‘The company enters into long-term real estate deals (typically for over 20 years) with favourable exit clauses. This results in better unit economics and enables it to service multiple segments (Breakfast, McCafé, McDelivery, etc.), providing further scalability.’
‘Under HRPL’s master franchise agreement with McDonald’s Corporation, the royalty percentage has been kept unchanged by McDonalds at 4% until FY21. This royalty fee will increase to 4.5% in FY22 and FY23. This is in contrast to the earlier royalty structure which specified a royalty rate of 5% of sales in FY16, 6% in FY17 and FY18, 7% in FY19 and 8% thereafter. McDonald’s has agreed to defer the monthly royalty payments until the business normalises. Any unexpected increase in the royalty fee to McDonald’s could negatively impact the credit metrics and thereby the ratings of the company.’
‘HRPL was established by the BL Jatia family in 1995. It operates over 320 McDonald’s restaurants across western and southern India under a master franchisee arrangement with McDonald’s Corporation, US. HRPL is a 100% subsidiary of Westlife Development Limited”
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@akash_das - These are invaluable details you have brought in one place!
Some thoughts on each which come as of now -
BURGER KING -
I think BK would be good in meeting these obligations and exclusive rights is a good positive. PE ownership is also good for now.
DEVYANI -
I am not sure under which light to see this statement. Not aware honestly if this is common in case of QSR where obligations are missed…
I read somewhere that Costa coffee is a weak link for Devyani. Still to understand why. Also why coffee chain was not expanded and got last priority. One reason could be its capex/opex is reasonably more than KFC and margins lower?
Incidental just at time of listing, Devyani reworked agreement with Costa…I think with IPO money when its debt come down and with Pizza hut focusing on delivery model (lesser capex), they would have some space to invest for Costa growth…now is that a good news or not so good news, I do not know at this stage…
Non exclusive rights is something I feel with time I am not liking that much…although we can have only what we have…so with a Yum - exclusive rights is not possible…point to ponder on…
SAPPHIRE -
Sapphire, with strong PE direction & governance would most probably meet all obligations. They are formidable player with almost same size in terms of stores and revenues as compared to Devyani for Yum. Taco Bell is another positive.
Non exclusive right is again not so good but thats what we get in a Yum.
PE control looks good for now.
JUBILANT -
Exclusive rights a big positive. Early delivery model approach and its own app focus again big positive. Valuations reflect all that and rightly so…
Popeye - Have very little idea of the capabilities of this franchisee…Need to check
STARBUCKS -
Perfect partnership. Not sure how future lies in terms of restructuring, if any (demerger or IPO or partnership changes - Starbucks is not main business of TCP)
MCD -
I think the royalty if increase also, will be competitive compared to other players and their position in respective life cycle.
I am not sure about the management capabilities and professionalism of this group. Insights welcome!
Disc: Invested in Starbucks via TCP, around 1% of portfolio holding each in Burger King & Devyani, tracking position in Westlife. Not a buy/sell recommendation. Invested, Interested in QSR and hence biased.
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In my opinion Burger King should keep the IPO money and not reduce debt as it will need money for expansion in future. The expansion is mandatory not optional as there is risk of termination of contract. What’s the point of being debt free when you will have to raise capital again. Unless you buy the land like DMART, lease obligations will always be there.
Devyani International failed to open requisite stores in KFC, Pizza Hut and Costa Coffee. KFC and Pizza Hut gave them extensions but Costa Coffee did not. Costa Coffee had earlier given exclusive rights which were changed to non exclusive.
McDonalds gave rights to two companies Hardcastle Restaurants and Connaught Plaza Restaurants. Connaught Plaza Restaurants was not able to fulfill payment obligations and their contract was terminated resulting in a bitter legal case. It got resolved recently when McDonalds bought Vikram Bakshi’s 50% stake in Connaught Plaza Restaurants.
Jubilant Foodworks got a good deal of large area and exclusive rights. The business model of delivery focus is more akin to Cloud Kitchen and helped them a lot. Pizza and Biryani will be popular to order online unlike burgers or coffee.
How private equity dooms a company can be best explained by the debacle of Coffee Day Enterprises. The promoter was given a lot of money to expand all over India and only focus was on sales growth. When profitability was not visible the PE people harassed him for exit plan leading to his ultimate suicide.
Tata Consumer has taken a strategic call with Starbucks JV as they will provide coffee and Himalayan Water to Starbucks. Since Starbucks have 50% stake they won’t push for growth over sustainability.
Reliance is in talks to acquire Subway India and enter QSR space.
Newer QSR companies will focus on cloud kitchen with zomato or private online store.
Disclosure: I am invested in Tata Starbucks through Tata Consumer Products and Bowlopedia Restaurants (Waffle Wallah, Bombay Toastee, Biryani Battuta) through RPSG Ventures.
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A correction to pen down as I read and explore more on these QSRs…it seems Burger King India also falls under category where the parent owns significant equity…pls correct me if wrong.
I read in one of the article shared by @sujay85 as below. Thanks for that!
BK India is promoted by QSR Asia Pte Ltd (Singapore) which is a Joint Venture between BK Asiapac Pte Ltd, a subsidiary of Buger King Holdings and F&B Asia Ventures (Singapore) Pte Ltd…and promoters hold approx 52% equity…so it looks like BK parent holds significant equity…
Can anyone with more insight explain here the bifurcation of Foreign promoter as in PE and Parent BK?
I thought that foreign promoters of BKI is Private Equity but in this read it looks like it is actually significant equity holding by parent…
Another point to be noted is in the risk mentioned for BKI if they fail in certain conditions in contract as below -
“BKIL must open at least 700 restaurants by December 31, 2026 (revised from 2025) and should maintain debt to equity ratio below 2x always, among others. In case of any non-compliance with the terms and conditions laid out in the MFDA. BK AsiaPac holds the right to terminate the developmental rights given to BKIL. Therefore, complying with all terms and conditions laid out in the MFDA remains critical for BKIL’s ongoing operations.”
Now what is strange is BK AsiaPac is itself the promoter of BKI as per above and the promoter itself is into a contract with itself and has mentioned in contract that it might penalize the same company promoted by itself in case that company does not meet the contract terms…not sure what is the catch here? Is BK AsiaPac really a promoter and intend to be a promoter long term? Why it has a contract with itself only where it intends to penalize itself (in case contract not met)…
Disc: Invested approx. 1% of portfolio and transactions in last few days, hence biased. Not a buy/sell recommendation
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Recently I came across a small company in technology - Xchanging solutions and it looks interesting.
The listed Indian entity was initially a subsidiary of Xchanging Solutions PLC, UK parent - which was later acquired by CSC. CSC was subsequently acquired by HP. HP later demerged their Enterprise business into DXC technologies …so now, the listed Indian entity is a subsidiary of DXC tech.
The valuations of Xchanging is similar to that of MNC product tech companies like Oracle Finance. The business is mostly insurance focused. Overall they have a Product + BPO business. Product seems a strong one in UK with client such as LLyod.
What I am trying to figure out is the listed Indian entity includes the Product part of business or only the BPO part. How strong is the Insurance Product, if it is owned by Xchanging Indian entity or any part of Product business trickles down to Indian entity in terms of support etc. Also, what is the future roadmap for the listed Indian entity. They already tried twice to delist with failure. Any insight on these points most welcome!
Disc: Hold tracking position. Not a buy/sell recommendation. Post is only to learn more about business and track its progress.
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Some updates and random thoughts - As always, would be eager to hear others constructive views!
There have been no major changes to portfolio - most stocks doing fine in business as well as stock performance, except significant run up in IT part. Small catch up by Consumer discretionary as well. Did some minor additions to consumer discretionary part. Rest I do not track performance too much as its too hard for me to track the lumpy buys that I do sometimes and how overall portfolio would have fared had not been for those buys etc…but I do get a gist of it by tracking the current overall value, which I see have been moving up approx. 5-10% MoM for last few months…
5-10% up MoM made me little thoughtful to the fact that what must be my strategy to sell/profit booking or cash position. My current cash position is negligible, except for the monthly salary…so you can say that I am and have always been fully invested…except somehow last year few months before the crash I just started investing in some debt funds and luckily had approx 15% of portfolio value in debt funds then…
Above circumstance made me revisit what must be the ideal cash position to keep. If we go back an year or so, at time of crash, most senior investors (who would have been fully invested) started selling like no tomorrow and sold all their positions at 10-15% below top to avoid the 50-60% downfall and gather the cash to buy when they are ready…They mostly sold their “momentum/satellite” part of the portfolio. I do not know what they did to their “core” part and how much % of their total portfolio was and is their “core”. Somehow, most investors love to talk about momentum part rather than the core…maybe because of the kick they get out of it or even the returns or some other reason I do not know…
I do not have any satellite part as I call my portfolio’s tail as “potential core”. Flashback, I did not sell a single share during last year crash and subsequent run up. Only major sell decision came much later after complete recovery when I wanted to get rid of second tier Finance firms and build up on the tier 1.
I think Cash part is necessary, now the most important part for me is here - Yes, the cash part is necessary to be able to get a “feel” (to be noted, I call it “feel”) of having an opportunity to benefit from market crashes, to enable a Simple investor like me to stick to basics of “buying on dips” and “buying more in crashes”.
Next question is how much should be this percentage. After thinking over it, a 5-10% should be the limit for me.
In case of a monthly salary available for SIPs, a 5% Cash is sufficient to have a little extra buy power. In case of no monthy income or unavailability of salary income for stock investing - a maximum 10% cash should suffice which can be activated strategically to behave as a monthly SIP…
Now, why 5-10% is because as I said above - For me, cash is not be kept to “actually benefit from crashes”, it should be kept to “enable me to remain positive, disciplined and keep the protective shield of sticking to basics activated” in such trying times…Cash is for this “feel” which keeps a Simple investor like me to be able to stick to his simple rules confidently.
Anything more than this 5-10% would lead me to change the way I look at markets alltogether, to change the type of investor I am and to change my investing style. I have not yet seen a long bear market/recession of say 1-2 years and none of us have seen a Great depression…a max 10% cash level can help some disciplined extra buying over say a 10 months period or so…a devoping country like ours should not go into a deep crash that lasts for more than 1-2 years.
Anything more than this would result in trying to time the market, inability to participate in bull market, sell the right stocks at precisely the wrong times (like most of my sell decisions have been where I have sold for reasons not related to individual stock fundamentals), too much FOMO and maybe I would feel lucky and smart in case of a crash does happen, but I would ask myself again, why am I investing - is it to benefit from crashes or participate in the tremendous opportunities of some wonderful businesses?..I think I have got my answer, only challenge would be to control the psychology when the time does come!
Disc: Above is no suggestion, advice or any recommendation. These are purely personal thoughts which keep changing and shared for academic & learning purposes ONLY. I maybe completely wrong in all my assessments
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Since you are investing from long duration, how much does dividend contribute to cash position or as percentage of portfolio?
Are you planning to invest in upcoming tech ipos? If yes will you accumulate cash now or wait till the time comes?
Thanks.
Interesting question! I had not calculated this as this amount is currently not significant…also I would not call myself investing since long…I was introduced to markets around 2010 but started sincerely around 2012-14…so you can say 7-9 years experience so far with just a single midcap crisis and an overall crash with swift recovery…But I did an approx calculation and I see that overall dividend would not be more than 1% yield of portfolio… it might hover around 0.7-0.8 currently…ideally would want this to go up at least at 2%
What would be your overall experience in market and overall div yield?
Yes, I am looking actively at new age tech firms, IPOs etc. However, I have very little hopes of getting any allocation whatsoever in IPOs…so would be ready with funds on listing in cases where I would be interested…for now what interests me is Nyka and maybe Pharmeasy…I am also tracking Zomato but have not pulled buy trigger yet…
Having said above, I would not have to plan too much for funds for buying these 2-3 firms as would take very small position…maybe 0.5% of portfolio each to begin with with option of taking it a max till 2% each…
I feel we cannot ignore these new-age firms but still cannot bet big part of your portfolio in them…maybe 2% level would be for those few which we understand little better initially or with time…for now I think a 0.5% is what I as a simple retail investor can afford here…
For Nyka and pharmeasy I can manage this from salary …in case need to ramp up these or any other, I can also sell other similar 0.5% tracking/holdings…like for example have Thyrocare, Nazara and Xchanging solutions in this category… although do not intend to sell Nazara out of these…
Would be good to know your thoughts…
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I started investing from 2017 3rd quarter (peak of bull market 
). Serious investing started from 2019. I will post my portfolio for review. Dividend yield is 0.87%. I read that the yield improves with time, so was asking for your yield.
I am planning to invest in Nykaa on listing day with half position. Ipo application is a waste of time and energy. Mostly no allocation occurs and even if it happens what good will 1 lot do to improve the overall portfolio.
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