Latest news with #ManishGoel
Time of India
02-07-2025
- Business
- Time of India
HDB Listing: Are unlisted shares the new road to high gains? Check this before investing
Academy Empower your mind, elevate your skills Investment into unlisted companies is gaining momentum among investors in India as they intend to gain substantially by the time the listing happens. It has potential to deliver double advantage to investors one, valuation gains before the listing and second the listing premium when the company goes for an IPO.A flurry of initial public offering (IPO) listings is expected this week, with several companies set to debut on the stock exchanges. Among the most anticipated was HDB Financial Services , the non-banking arm of HDFC Bank, which attracted strong investor interest ahead of its listing. Other notable companies hitting the market include Kalpataru Projects and Ellenbarrie Industrial Gases, making it one of the most active weeks for primary markets in recent of HDB Financial Services, a non-banking financial company (NBFC) and subsidiary of HDFC Bank, listed at a premium of 12.84% (up Rs 95) today (July 02,2025), opening at Rs 835 on both the NSE and BSE, against an issue price of Rs 740. The company's IPO issue was subscribed 17.65 times overall, led by Qualified Institutional Buyers (QIBs) who bid 58.6 times their portion. Non-institutional investors subscribed 10.5 times, while retail interest was more muted at 1.5 times. However, has this listing proven to be a good bet by investors who bought the unlisted share of this company much before its listing. Not necessarily, if you were driven by euphoria you may have ended up buying this unlisted company at a steeper price than what was discovered on the day of Navlakhi, Managing Director & CEO of International Money Matters, says, 'In unlisted shares , the FOMO effect results in a very high weightage on sentiment, sometimes ignoring the rest. This has resulted in HDB Financial shares trading at 1200 in the grey market and finding the issue at 740. Retail investors must surely give up investing in unlisted shares - as they cannot stomach the risk of a large fall - there is a reason why this is called grey market -- it's not black, but it's certainly not white.''HDB Financial Services was one of the most liquid scripts in the unlisted market trading in the range of Rs 700-1400 in the last one year before the IPO price band announcement. HDB enjoys its parent company's brand trust and thus, it has been one of the most awaited IPO this year,' says Manish Goel, Founder & MD, Equentis Wealth Advisory Services sentiment has limited role to play as valuation of a company depends largely on its fundamentals. 'We have to understand how shares are valued: Based on profits of companies, how their competitors ar rated, the future of the industry, profit growth in the past and expectations, and sentiment are some of the bases,' says investors of HDB Financial Services, the Rs 740 price band for the company's IPO is 40% lower than the Rs 1,225 levels it was fetching just days ago in the unlisted market. Investors who bought last year at Rs 1,550 will have to face a 52% loss in value before the IPO even gets listed on the Goel adds, 'On the pricing, we are seeing an increasing trend of IPOs being priced at a discount of 25-40% for higher investor participation which largely gets adjusted on the listing day to some extent. It's worth noting that a similar scenario occurred with Waaree Energies late last year where the unlisted price was around Rs 2,500, and the IPO was priced at Rs 1,500 per share, only to list at Rs 2,500 and presently trading higher.'Retail investors showed significant interest in buying pre-IPO shares of HDB Financial Services. However, their response to the company's IPO was lukewarm. 'Many companies pursue pre-IPO sales because they sense that public market demand may not be as exuberant as expected, and they want to lock in valuations while investor sentiment is still warm. HDB Financial's tepid IPO oversubscription (by retail investors) compared to the frenzy in its unlisted shares underscores this dynamic,' says Mohit Bhandari, CEO of Stratzy, a financial technology access offered to investors to buy unlisted shares, has an overpowering impact on their judgement about fair valuation of the company. 'Retail investors often get lured by the illusion of exclusivity in pre-IPO stocks, forgetting that liquidity can remain a chronic problem—just look at Chennai Super Kings shares languishing without an exit or PharmEasy's steep valuation slide after early trades,' says Mohit Bhandari, CEO of Stratzy, a financial technology are now getting more and more cases where such investors of unlisted companies are getting a humbling experience about the gains at the time of IPO which did not turn out the way they had anticipated. 'In case of HDB as well, we saw some resentment around the IPO price band being 30-40% lower than unlisted market price. Though it opened 13.5% up today on listing. We remain of the view that HDB is currently trading near its fair value and to a discount to both its peers Bajaj Finance and CholaFin, which is justified by the difference in customer profile and return metrics,' says further adds, 'In the end, why chase the mirage of low-liquidity pre-IPO bets when there are so many established, regulated companies already listed with transparent price discovery? If you truly want to back early-stage businesses, angel investing might be a more honest path than buying pre-IPO shares from someone trying to de-risk their own exposure. Investors should ask themselves whether they're buying into a promising company or simply providing an exit for someone else. Mohit Bhandari, CEO, Stratzy, a financial technology startup.'Investing in unlisted shares has many pitfalls which investors must factor in. Investing in unlisted shares can be far riskier than it seems at first glance. Narendra Solanki, Head Fundamental Research- Investment Services, Anand Rathi Shares and Stock Brokers underlined the risks of investing in shares of unlisted companies. 'Prices in the unlisted market aren't transparent, they're often driven by sentiment, hype, or insider news, making them prone to manipulation. Liquidity is another big issue; you can't always buy or sell when you want, as these trades usually happen through market intermediaries, not an open exchange. There's also a lack of transparency, with many deals not publicly documented, and a real risk that the person selling you the shares may not deliver them even after receiving payment.'The risks don't end here. 'Valuing unlisted companies is tricky too, especially if there are no listed peers to compare with. On top of that, private firms don't have to follow the same disclosure norms as listed companies, so you may not get regular updates on their financials or business health. There's also the chance that the company may never list, leaving you stuck with shares you can't exit. Your stake could get diluted if the company issues more shares in future rounds. And without any direct regulatory or exchange oversight, there could be other hidden risks that aren't obvious at the time of investing,' says a recent post on X (formerly Twitter), Zerodha founder Nithin Kamath also highlighted the risks of investing in unlisted shares and said that many retail investors buy into these shares based on hype and expected listing gains, often without fully understanding the business or its fundamentals. He also cited the example of HDB Financial Services, whose shares were trading at a premium of nearly ₹1,100 in the unlisted market just a few years ago, far higher than the IPO price of ₹740 per share. This, he said, shows how unlisted shares can be significantly overpriced, leaving investors exposed to potential warned that the unlisted space lacks transparency, has low liquidity, and operates without much regulatory oversight, which makes it riskier than the regular stock market. He urged investors to exercise caution, avoid getting swayed by brand value or social media hype, and conduct proper due diligence before investing in unlisted Wealth Planners Private Limited's MD and Principal Officer Suresh Sadagopan chimes in with his views, 'There is no price discovery mechanism and the unlisted prices can be unrealistically high, resulting in losses on listing. Liquidity is low; one may not be able to sell them. IPO may not come up as expected and if there is lack of liquidity, one can get stuck for long.'Investors often carry unrealistic expectations when entering the unlisted space. 'Investments in unlisted companies are done with the assumption that one will get it cheap and there would be listing gains. But it is not always true like in the case of HDB & Swiggy. What is going to happen in NSE's case will be interesting to watch, with all the hype and excitement around that share, Sadagopan which went public in November 2024, listed at Rs 412 on the BSE at a 7% premium over its IPO price of Rs 390. Following shareholder approval for an IPO in April, the company's stock witnessed significant interest in the unlisted market, resulting in a substantial increase in share prices, as per an Economic Times report. From July to September, its shares surged by nearly 40%, rising from Rs 355 to Rs 490 approximately. However, the shares have had a rough time since the listing, having plummeted by about 39% since then. In 2025 alone, the stock as lost 41% of its Financial Services launched its much-anticipated Rs 12,500-crore IPO from June 25 to June 27. The offer included a fresh issue of Rs 2,500 crore and an offer for sale of Rs 10,000 crore by HDFC Bank, with the price fixed at Rs 740 per share. The IPO drew strong interest across many investor categories, receiving over 42.6 lakh high-profile listings often generate buzz, investors should be cautious when dealing with unlisted shares or grey market premiums. Prices can be volatile, and without regulatory oversight, there's a higher risk of overpaying or falling for speculative hype before the stock actually lists.
Hindustan Times
26-06-2025
- Business
- Hindustan Times
ED raids in Punjab, Delhi-NCR in bank loan ‘fraud' case
By Press Trust of India , New Delhi Jun 26, 2025 09:22 AM IST The Enforcement Directorate on Wednesday conducted searches at multiple premises in Delhi-NCR and Punjab as part of a money laundering investigation linked to an alleged ₹ 988 crore bank loan fraud case, official sources said. The ED suspects that a large portion of the money (loan) availed from the banks using Letters of Credit were transferred abroad through 'fake' transactions. (HT Photo) The action is being undertaken against the promoters of a company, Shilpi Cables Technologies Ltd (SCTL), and some linked entities. Nine premises in Delhi-NCR and one in Jalandhar were part of the searches being conducted under the Prevention of Money Laundering Act (PMLA), the sources said. The money laundering case stems from a CBI FIR alleging cheating a consortium of banks led by the IDBI Bank to the tune of ₹ 988 crore by the promoters of SCTL and their associates, they said. The ED suspects that a large portion of the money (loan) availed from the banks using LsC (Letters of Credit) were transferred abroad through 'fake' transactions. The role of the company managing director (MD) Manish Goel is under the scanner of the agency, as per the sources.
Time of India
25-06-2025
- Business
- Time of India
ED conducts searches across NCR and Punjab in Rs 989 crore bank 'fraud' probe
NEW DELHI: The Enforcement Directorate on Wednesday conducted fresh raids as part of a money laundering probe against the former promoters of Delhi-based Shilpi Cables Technologies Ltd (SCTL), in connection with an alleged Rs 989 crore bank loan fraud case, news agency PTI reported. Nine premises in the National Capital Region and one in Jalandhar, Punjab, were searched under the Prevention of Money Laundering Act (PMLA). SCTL, which manufactured wires and cables for the automobile and telecom sectors, has been under insolvency since 2017. You Can Also Check: Delhi AQI | Weather in Delhi | Bank Holidays in Delhi | Public Holidays in Delhi The ED had earlier searched multiple locations in this case in December 2024. The money laundering case is based on a 2021 CBI FIR, which alleged that the company's promoters and their associates cheated a consortium of banks led by IDBI Bank . According to the FIR, loans were taken in the name of business but diverted for unauthorised purposes. The promoters later defaulted, causing losses amounting to Rs 989 crore. The ED suspects that a large portion of the bank loans, obtained through Letters of Credit (LCs), was transferred abroad via fake transactions. The role of the company's former managing director, Manish Goel, is under investigation.
India Gazette
25-06-2025
- Business
- India Gazette
ED raids 10 places in Delhi-NCR, Punjab in Rs 988 crore bank fraud case
New Delhi [India], June 25 (ANI): The Enforcement Directorate (ED) on Wednesday conducted searches at 10 premises across Delhi-NCR and Punjab in the case of Shilpi Cables Technologies Ltd (SCTL) linked to cheating and defrauding the IDBI bank limited and other consortium banks to the tunes of Rs 988 crores, sources said. Since morning, raids have been underway at nine places in Delhi and NCR and one in Punjab's Ludhiana in the case, which the ED took on the basis of the Central Bureau of Investigation (CBI) FIR of bank fraud. The case involves the promoters of Shilpi Cables Technologies Ltd (SCTL) and their associates cheating and defrauding IDBI Bank Limited and other consortium banks to the tune of Rs 988 crores. Sources privy to the development told ANI that the premises planned to be covered in the search action belong to the entities and persons closely associated with the promoters, Shilpi Cables Technologies Ltd. 'Some entities are being indirectly controlled and operated by Manish Goel (MD of SCTL),' said the sources, adding further, 'Several persons being covered in the search have been office holders in SCTL and have been involved in various activities like rotation of funds and infusion cash through various dummy entities into the entities beneficially owned and controlled by Manish Goel.' As per officials, a large portion of the money availed from banks devolving Letter of Credit was transferred abroad using fake transactions. (ANI)
Hindustan Times
25-06-2025
- Business
- Hindustan Times
ED conducts searches across NCR and Punjab in ₹988 crore bank fraud probe
Jun 25, 2025 03:21 PM IST The Enforcement Directorate (ED) on Wednesday carried out raids at ten locations in the national capital region (NCR) and Punjab in connection with a money laundering probe into an alleged bank fraud worth ₹ 988 crore, people familiar with the development said. The raids were carried out at nine premises in the NCR and one in Jalandhar against Shilpi Cables Technologies Ltd (SCTL). (@dir_ed) The raids were carried out at nine premises in the NCR and one in Jalandhar against Shilpi Cables Technologies Ltd (SCTL) under the prevention of money laundering act (PMLA). The company is accused of cheating a consortium of banks led by the IDBI Bank to the tune of ₹ 988 crore. ED's probe is based on a Central Bureau of Investigation (CBI) first information report (FIR) on the matter. The financial crimes probe agency suspects that a large portion of the money (loan) availed from the banks using LCs (letters of credit) were transferred abroad through fake transactions. 'The role of the company managing director (MD) Manish Goel is under the scanner of the agency,' said an officer cited above. Also Read: ED raids 37 locations across NCR in classroom case probe 'Several persons being covered in the search have been office holders in M/s SCTL and have been involved in various activities like rotation of funds and infusion of cash through various dummy entities into the entities beneficially owned and controlled by Manish Goel,' the officer added. SCTL was engaged in the business of design and manufacturing wires and cables in automobile and telecom segments. According to a statement issued by ED in December 2024, investigation revealed that SCTL indulged in fudging books of accounts with fake sales and purchases. 'Sale and purchase involving crores of rupees were fake and mere book entries. Huge amounts receivable by the company were squared off by entering into the agreements with the dummy entities. It was further found that despite about ₹ 400 crore being receivable from the foreign entities in 2015-2016, the company continued supply of goods on credit to such entities so as to cheat the banks. Investigations revealed that the transactions were fake,' the statement said. It further said many assets are acquired by the promoters in the names of shell entities.
