Latest news with #FPO
Entrepreneur
6 hours ago
- Business
- Entrepreneur
Building a Scalable and Inclusive Agri Network
With over 30,000 FPOs in its outreach network, 6,500 engaged in active transactions, and a footprint that integrates 8 million farmers, Samunnati has developed a system that not only "signifies deep trust across the agricultural ecosystem," but also operationalizes "inclusive, last-mile connectivity through FPOs." Opinions expressed by Entrepreneur contributors are their own. You're reading Entrepreneur India, an international franchise of Entrepreneur Media. "Samunnati has built one of the largest agri-value chain networks in India," shares Anil Kumar SG, Founder and Group CEO of Samunnati. With over 30,000 FPOs in its outreach network, 6,500 engaged in active transactions, and a footprint that integrates 8 million farmers, Samunnati has developed a system that not only "signifies deep trust across the agricultural ecosystem," but also operationalizes "inclusive, last-mile connectivity through FPOs." By aggregating demand and supply, the company enables these FPOs to access "tailored financial services and market linkages," which have helped "reduce costs, improve market access, and drive farmer prosperity at scale." Among its suite of offerings, one product stands out. "Samunnati introduced the Instant Preapproved Loan (IPL), a first-of-its-kind product designed specifically for newly formed FPOs with no credit or transaction history." Anil explains how IPL's minimal documentation, quick access, and customized design are critical for new FPOs. Acting as a starter credit product, it helps build credit history and improves borrowing capacity over time. The impact is tangible. "The IPL product has transformed the landscape by making thousands of new FPOs institutionally creditworthy," says Kumar, allowing them to evolve into financially sustainable, market-ready entities. While operational issues are part and parcel of any business, Anil highlights the deeper challenges that exist. "The biggest hurdles in our business stem from fundamental structural issues inherent to the agricultural value chain surrounding smallholder farmers." One major issue, according to Anil, is the lack of customized financial and trade solutions aligned with the highly seasonal nature of agriculture. Samunnati responds by "designing tailored solutions aligned with the specific cash flow patterns of different crops," thus enhancing repayment capacity. Another problem is scale. The fragmented and dispersed nature of smallholder farmers and agri enterprises limits scale and bargaining power. To overcome this, Samunnati leverages the power of aggregation through Farmer Producer Organizations, thereby reducing transaction costs and improving price realization. Finally, the absence of suitable underwriting models for FPOs has hampered credit flow. Samunnati tackled this by "developing robust in-house underwriting capabilities that combine social capital and trade capital of FPOs." This, Anil says, "transforms FPOs into credible financial entities and emerging asset classes." The cumulative result? "These solutions create significant entry barriers for others," while ensuring "scalability, risk mitigation, and sustainable growth." "Samunnati's journey toward profitability is anchored in a multi-pronged strategy focused on sustainable growth and operational efficiency," Anil says. • Year of inception – 2014 • No. of employees – 550+ Revenue for FY 2024-25: ~$850 Mn External funding: $46.5 Mn
Mint
12 hours ago
- Business
- Mint
Retail investors slam Vodafone Idea over user wipeout, stock crash
Retail shareholders ofVodafone Idea Ltd (Vi) raised concerns on Friday over the company's continued loss of subscribers and its fragile financial health. During the extraordinary general meeting (EGM) convened to approve the ₹20,000 crore fundraise, shareholders questioned the management about the lack of upside in the share price and a significant fall, particularly in the aftermath of the follow-on public offer (FPO) last year. The absence of Aditya Birla Group chairman Kumar Mangalam Birla from the meeting also drew concern, with a few shareholders expressing disappointment over his non-attendance. The government is the largest shareholder in Vodafone Idea with a 49% stake, followed by promoters—Vodafone Group at 16.07% and Aditya Birla Group at 9.5%. Retail investors own 14.96% of the company. 'Despite the previous fundraises, including the government conversion, there is no upside in the share price. In fact, the government's equity investment (via dues conversion) in the company has also gone into losses (at the current share price). If the management cannot handle the company, it should consider selling or surrendering it to the government," Santosh Kumar Saraf, a retail shareholder of the company, said during the meeting. Also Read: Faster WiFi plan hits spectrum interference worry Saraf wondered aloud what would happen if the company defaulted even after the fundraiser. Lately, the government has been exploring a resolution on the telecom operator's substantial dues. As of 31 March, Vodafone Idea's total government dues stood at around ₹2 trillion, including ₹1.19 trillion in spectrum dues and ₹83,400 crore adjusted gross revenue (AGR) dues. Mounting expenses In the absence of any relief from the government, starting 31 March 2026, Vodafone Idea will have to pay an annual instalment of over ₹18,000 crore for the next six years towards AGR and spectrum dues to the government. The dues are under moratorium, which will expire in September. In 2025-26 itself, Vodafone Idea will have to pay ₹16,428 crore towards AGR dues and ₹2,539 crore towards deferred spectrum dues. Going by the company's share price performance, the Friday closing share price of ₹7.40 is over 38% lower than the FPO listing price of ₹12 in April last year. In fact, the government's investment in Vodafone Idea through two equity conversions at ₹10 a share has also fallen by 26% at the current share price. In August 2018, when Vodafone Group completed its merger with Idea, the company's share price was ₹30. 'The company needs to focus on increasing its business. Many small investors are stuck in the company for the last so many years," said Redeppa Gunduluru, another retail investor, who has expressed concerns over the losses he incurred recently and the volatile share price. 'Vi's continued subscriber losses and weaker data net adds remain key concerns. Despite potential acceleration in network investments, we believe regaining subscribers will remain a tall ask for Vi, given that peers—with superior free cash flow generation and deeper pockets—can keep customer acquisition costs higher," said analysts at Motilal Oswal in a note dated 2 June. 'Further, with no relief so far on AGR dues (repayments commence March 26) and no breakthrough on the debt raise, we believe Vi is likely to face an annual cash shortfall of ₹20,000 crore and may be unable to meet its capex guidance of ₹50,000-55,000 crore over FY25-27," the analysts said. Narender Chauhan from Uttar Pradesh, another shareholder of the company, asked the management about the company's road map in the next 3-4 years, its plans for pan-India 5G coverage, and clarity on the satcom services launch after its recent collaboration with US-based AST SpaceMobile on direct-to-device connectivity. Dodging queries In an exchange filing on 30 May, Vodafone Idea said its board had approved raising another ₹20,000 crore through a follow-on public offering, private placement, or other permissible mode. The company said a capital raising committee will evaluate and decide on the potential route of fundraising. This fundraising approval comes at a time when the telecom operator is also looking to tie up ₹25,000 crore in bank debt to fund the capex for network expansion. When shareholders asked about the use of the ₹20,000 crore proceeds, the company's chief financial officer Murthy G.V.A.S. said, 'The proceeds will be used for capital expenditure." The management, however, did not address the shareholders' queries about the company's survival and revival concerns and the way forward. Also Read: Next-gen gadgets, WiFi speeds to get boost as India to open up new spectrum Notably, since the merger, Vodafone Idea has raised total equity of around ₹56,000 crore, out of which around ₹27,000 crore has been contributed by the promoters, the company told the Supreme Court in a recent plea to seek waiver on AGR dues from the government. The plea, however, was rejected by the court. In the petition, the telecom company had said it would not be able to operate beyond the current fiscal year without bank funding, which remains elusive as lenders remain wary of its dues worth ₹83,000 crore linked to AGR. On the shareholder questions, Ravinder Takkar, the company's non-executive chairman, said, 'most of the questions were related to items outside the agenda items (of the EGM)." Takkar, however, asked the company to take note of some of the suggestions made by the shareholders. Pinning its hopes Vodafone Idea is set to incur capital expenditure of ₹5,000-6,000 crore for the first half of 2025-26 to enhance its network and infrastructure. However, its next leg of spending would be dependent on funds from banks, the company's CEO, Akshaya Moondra, had said in an earnings call on 2 June. 'I see no reason why the government should be constrained in any way to offer relief…," Moondra had said. Vodafone Idea is the most widely held stock, with over 6 million retail shareholders (more than the State Bank of India), according to the company's letter to the department of telecommunications on 17 April seeking further support. In May last year, Vodafone Idea said it would incur a capital expenditure of ₹50,000-55,000 crore over the next three years to expand its 4G network and launch its 5G service. "Completion of ₹25,000 crore debt-raising is key for executing Vi's ₹50,000-55,000 crore capex programme. Higher government flexibility around AGR dues offers a ray of hope," IIFL Capital said in a note on 2 June. Also Read: Will private 5G networks take off, finally? The retail investors also questioned the company's management about the fall in subscriber base and whether there are any plans to merge with state-owned BSNL. In an interview withMinton 23 April, Union communications minister Jyotiraditya Scindia said there are no plans to merge Vodafone Idea with BSNL. 'I do not think it is necessarily inefficient to have two competing businesses. There are multiple verticals where the government has competing businesses. Also, there was no physical cash outgo in this (Vodafone Idea) conversion. What the government has retained is an upside, no downside," Scindia had said. As of 31 March, Vodafone Idea had 198.2 million mobile subscribers. Even as Vodafone Idea has been losing subscribers for a long time now, the company's subscriber churn rate has slowed down during the March quarter. Compared to the loss of 5 million subscribers each in the September and December quarters, its subscriber churn slowed down to 1.6 million in the fourth quarter.
Mid East Info
4 days ago
- Business
- Mid East Info
Al Mal Capital REIT Announces Follow-on Public Offering and 3.75% dividend for H1 2025 - Middle East Business News and Information
Dubai, UAE: Al Mal Capital REIT AMC REIT the first REIT listed on the Dubai Financial Market (DFM), regulated by the Securities and Commodities Authority (SCA), and managed by Al Mal Capital PSC, a subsidiary of Dubai Investments PJSC, is inviting existing unitholders, as well as UAE and GCC individual and institutional investors, to subscribe to new units in its closed ended Real Estate Investment Trust (REIT) through a follow-on public offering (FPO). The FPO, approved by the SCA, will issue up to 220,000,000 new units at a price of AED 1.1, increasing the issued capital of the Fund from AED513,889,872 up to AED 733,889,872. The raise will be used to expand the REIT's portfolio of income generating real estate assets carefully selected from secure growth sectors, including healthcare, education and mission-critical industrial assets. The subscription period will run from 7 July to 25 July 2025, with trading of the new units expected to commence on the Dubai Financial Market (DFM) around 8 August 2025, subject to regulatory and market approvals. Al Mal Capital REIT has a proven and stable track record having delivered a 7% return since 2023. It continues to target ongoing returns of c.+7%i for investors. In line with this performance, the REIT is also announcing a cash dividend of AED 0.0375 per unit for the interim period ending 30 June 2025, representing an annualized yield of 7.5%. To receive this dividend, investors must purchase units no later than 24 June 2025, as only unitholders on record as of 26 June 2025 will be eligible. Commenting on the FPO Naser Al Nabulsi, Vice Chairman and CEO at Al Mal Capital said: 'There is a growing investor appetite for Regional REITs as shown by recent offerings on the DFM that saw record-breaking retail participation, especially in the UAE. We are therefore pleased that we can offer more investors a chance to access Al Mal Capital REIT, the first REIT listed on the DFM, which continues to deliver strong and consistent dividends. Our focus on resilient real estate sectors which offer sustainable and recurring income based on secure cashflow and long-term demand, will be very attractive for both institutional and retail buyers.' Al Mal Capital REIT is managed by an experienced and respected investment team with a strong track record in managing income-generating commercial real estate assets. AMC REIT benefits from a robust SCA regulated REIT framework, and oversight from an experienced committee, which qualifies opportunities, oversees and ensures the fund's compliance with regulatory standards. The FPO is open to UAE and GCC retail and institutional investors. A priority allocation will be available to subscribers who already hold units in AMC REIT, and whose names appear in the register of unitholders as of 26th June 2025 (the 'Record Date'). These investors will be allocated units equal to approximately +39% of their current holdings, ensuring their ownership remains undiluted following the capital increase. A secondary allocation of unsubscribed units, after completion of the priority allocation, will have a Minimum Guaranteed Allocation (MGA) of up to 2,000 units per eligible new subscriber, subject to request and availability. Al Mal Capital REIT is a closed ended real estate investment trust (REIT) that is currently invested in a diversified portfolio of income generating real estate assets in the UAE, based on secure long-term lease agreements with a strong credit profile. The Fund gives UAE and GCC investors access to an asset class with long-term fundamentals, based on a strategy focused on investing in strong-performing UAE sectors, including healthcare, education and industrial assets. General Information on the Fund and the Offering • Fund Name: Al Mal Capital REIT • Fund Address: Office 901, 48 Burj Gate, Sheikh Zayed Road, Dubai, United Arab Emirates • Regulatory Authority: Securities and Commodities Authority (SCA) – United Arab Emirates Fund Overview: Al Mal Capital REIT is a public real estate investment fund with closed-ended capital. The Fund is licensed by the SCA and is governed by Federal Law No. (4) of 2000 regarding the Emirates Securities and Commodities Authority and Market. The Fund is also subject to the Chairman of the SCA's Decision No. (1/R.M) of 2023 concerning the regulation of investment funds (the 'Investment Funds Regulation') and the administrative decision No. (8/R.T) of 2023 approving the annexes associated with the Investment Funds Regulation, along with all other relevant laws, regulations, and resolutions applicable in the UAE. The primary objective of the Fund is to invest in a portfolio of income-generating real estate assets. The Fund's investments are primarily focused within the United Arab Emirates, with the option to invest in other GCC countries or internationally. However, the Fund's real estate assets located outside the UAE—whether in the GCC or elsewhere—must not exceed 25% of the Fund's total assets. The Fund is managed by the Fund Manager and does not have its own independent board of directors or employees. All investments of the Fund are subject to prior approval by the Investment and Oversight Committee, which is appointed by the Fund Manager and consists of at least five experts. Current Fund Capital (Nominal Value): AED 513,889,872 Fund Net Asset Value (NAV) as of 31 May 2025: AED 577,048,612 NAV per Unit as of 31 May 2025: AED 1.1229 Subscription Cost per Unit: AED 1.125, consisting of: • Issue Price per unit: AED 1.000 nominal • Issue Premium per unit: AED 0.100 • Issue Fee: AED 0.025 (incl. VAT) Current Number of Units: 513,889,872 Number of New Units: 200,000,000 (target) or up to 220,000,000 (if Green Shoe Option is exercised) Listing Venue: Dubai Financial Market (DFM) FPO Key Dates: • Announcement Date: 23 June 2025 • Subscription Period: 7 July – 25 July 2025 • Expected Trading of New Units: 8 August 2025
Al Etihad
4 days ago
- Business
- Al Etihad
Al Mal Capital REIT launches follow-on offering to raise Dh242 million
24 June 2025 13:50 REDDY (ABU DHABI)Al Mal Capital REIT, the first real estate investment trust (REIT) listed on the Dubai Financial Market (DFM), has launched a follow-on public offering (FPO) to raise up to Dh242 million in new capital. The fundraising will support the acquisition of additional income-generating assets across healthcare, education, and mission-critical industrial sectors. The FPO follows the remarkable success of the Dubai Residential REIT's recent IPO, which raised Dh1.245 billion after being oversubscribed 26 offering opens on July 7 and closes on July 25, with trading of the new units expected to begin on August 8, subject to regulatory approvals. The new units are priced at Dh1.10 each, including a nominal value of Dh1.00, a Dh0.10 issuance premium, and a Dh0.025 subscription fee, including VAT. The cost for investors works out to Dh1.125 per unit. The FPO will issue up to 220 million new units, raising the fund's issued capital from Dh513.9 million to Dh733.9 million. Existing unitholders on record as of 26 June 2025 will receive a priority allocation equal to approximately 39% of their current holdings to ensure their shareholding is not diluted. A secondary allocation will provide a minimum guaranteed allotment of up to 2,000 units to eligible new on the offering, Naser Al Nabulsi, Vice Chairman and CEO of Al Mal Capital, said, 'There is a growing investor appetite for regional REITs as shown by recent offerings on the DFM that saw record-breaking retail participation, especially in the UAE. We are therefore pleased that we can offer more investors a chance to access Al Mal Capital REIT, which continues to deliver strong and consistent dividends.'Al Mal Capital REIT has reported a stable performance since 2023, distributing an annual return of around 7%. To underscore this track record, the REIT announced an interim dividend of Dh0.0375 per unit for the first half of 2025, reflecting a 7.5% annualised yield. Only investors holding units as of June 26 will be eligible to receive this of May 31, 2025, the fund's net asset value (NAV) stood at Dh577 million, with a NAV per unit of Dh1.1229. The REIT maintains a 100% occupancy rate across its real estate portfolio. Al Mal Capital REIT is managed by Al Mal Capital, a subsidiary of Dubai Investments. Investment Corporation of Dubai (ICD), an arm of the Government of Dubai, is the majority shareholder in Dubai Investments. The FPO is open to retail and institutional investors from the UAE and across the GCC. Interested investors can subscribe through First Abu Dhabi Bank branches, online banking (for FAB clients), or by submitting a manager's cheque payable to 'Al Mal Capital REIT – FPO.' The minimum subscription is 2,000 units, equivalent to a total investment of Dh2,250 including fees. Investors in the new units will be entitled to the same rights as existing unitholders, including eligibility for future dividend distributions.
Hans India
19-06-2025
- Business
- Hans India
Subsidised agricultural machinery distributed to farmers in Sathya Sai dist
Puttaparthi: District Collector TS Chetan informed that under 2024–25 scheme, subsidised agricultural machinery worth Rs 1,72,75,038 was distributed to 1,021 farmers across the district. Speaking at the event held on Wednesday at PGRS Meeting Hall in the Collectorate, Chetan stated that equipment such as rotavators, brush cutters, sprayers, threshers, and tillers were distributed through Rythu Samakhya Kendras (RSKs). He urged farmers to make the best use of these government-provided resources. A review meeting was also conducted with representatives of Farmer Producer Organisations (FPOs), where the Collector inquired about the ongoing programmes and challenges faced by FPOs. He advised them on strategies to ensure better prices for farmers and explained detailed action plans for future. FPO representatives also submitted their proposals to strengthen the FPO framework in the district. As part of the event, a symbolic mega cheque for Rs 1.72 crore was handed over to farmers. District Agriculture Officer YV Subbarao, Horticulture Officer Chandrasekhar, DRDA PD Narasayya, agricultural development officers, agriculture department officials, FPO representatives, farmers, and leaders of farmers' unions were present.
