Forensic Analyst, Trudence Capital Advisors

Nitin Mangal

Forensic Analyst

Trudence Capital Advisors

Trudence Capital Advisors Private Limited is a SEBI-registered Research Analyst, holding SEBI registration number INH000015747. Our firm is dedicated to providing independent and unbiased research on Indian mid to large-cap companies. Trudence Capital is known for its counter-consensus views, with a focus on forensic research and on-ground primary investigations. Our research approach is thorough, involving detailed analysis of accounting practices and governance, alongside extensive channel checks.

Independent & Unbiased Research

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<a href="https://www.smartkarma.com/entities/lodha-developers-ltd" target="_blank" data-smartkarma-citation="entities:27315:1" rel="noopener">Lodha Developers (LODHA IN)</a>, also known as Macrotech, announced last week the merger of its three listed subsidiaries into the parent entity.</li>
<li>These three entities are namely National Standard India Ltd (NSIL), Roselabs Finance Ltd (RFL) and Sanathnagar Enterpriseses Ltd (SEL). All of them are listed on the BSE.</li>
<li>However, when we look at the business and financials of these companies, the decision and the entire story-line along with swap ratio/valuation raises questions.</li>
</ul>



Lodha Developers (LODHA IN), also known as Macrotech, announced last week the merger of its three listed subsidiaries into the parent entity.
These three entities are namely National Standard India Ltd (NSIL), Roselabs Finance Ltd (RFL) and Sanathnagar Enterpriseses Ltd (SEL). All of them are listed on the BSE.
However, when we look at the business and financials of these companies, the decision and the entire story-line along with swap ratio/valuation raises questions.


Macrotech Subsidiaries Merger: It's All Baffling

APAC IPOs & Placements, Aequitas Research

Clarence Chu

APAC IPOs & Placements

IPOs and Placements coverage across Asia Pacific

Aequitas Research

We cover all listing across the Asia Pacific along with follow-up placements. As of Dec 2020, our team had covered 539 IPOs with a hit rate of 73.5% and 685 placements with a hit rate of 66.8%.

We combine fundamental bottom-up views with our proprietary quantitative framework to provide a holistic coverage across new listings and placements. Our coverage includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

Equity Capital Markets

Five Star Business Finance / Equity Capital Markets

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<a href="https://www.smartkarma.com/entities/five-star-business" target="_blank" data-smartkarma-citation="entities:35238:1" rel="noopener">Five Star Business (0958461D IN)</a> is looking to raise around US$370m in its upcoming India IPO. The deal will be run by ICICI Securities, Edelweiss, Kotak, and Nomura.</li>
<li>Five Star Business is a non-banking financial company (NBFC-ND-SI) that provides secured business loans to micro-entrepreneurs and self-employed individuals. </li>
<li>As of Sept 2021, the firm had a network of 268 branches, spread across approximately 126 districts, eight states and one union territory.  </li>
</ul>



Five Star Business (0958461D IN) is looking to raise around US$370m in its upcoming India IPO. The deal will be run by ICICI Securities, Edelweiss, Kotak, and Nomura.
Five Star Business is a non-banking financial company (NBFC-ND-SI) that provides secured business loans to micro-entrepreneurs and self-employed individuals. 
As of Sept 2021, the firm had a network of 268 branches, spread across approximately 126 districts, eight states and one union territory.  


Puranik Builders Limited / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/puranik-builders-limited" target="_blank" data-smartkarma-citation="entities:34464:1" rel="noopener">Puranik Builders Limited (1607816D IN)</a> is looking to raise about US$150m in its upcoming India IPO. The deal will be run by Elara Capital and Yes Securities. This is a refiling after its previous two filings, in 2018 and 2019, lapsed. Puranik Builders is a residential real estate developer for the Mumbai Metropolitan Region (MMR) and Pune Metropolitan Region (PMR). According to Cushman &amp; Wakefield (C&amp;W), the firm is among the leading residential real estate developers in the growing Thane region of MMR, based on projects being marketed and corresponding units sold. As of Jul 2021, it had completed 35 projects amounting to 554,197 sqm of Developable Area across MMR and PMR.

Puranik Builders Limited (1607816D IN) is looking to raise about US$150m in its upcoming India IPO. The deal will be run by Elara Capital and Yes Securities. This is a refiling after its previous two filings, in 2018 and 2019, lapsed. Puranik Builders is a residential real estate developer for the Mumbai Metropolitan Region (MMR) and Pune Metropolitan Region (PMR). According to Cushman &amp; Wakefield (C&amp;W), the firm is among the leading residential real estate developers in the growing Thane region of MMR, based on projects being marketed and corresponding units sold. As of Jul 2021, it had completed 35 projects amounting to 554,197 sqm of Developable Area across MMR and PMR.  

Puranik Builders Pre-IPO Tearsheet (Refiled)

Forensic Accounting

Macrotech Developers / Forensic Accounting

<a href="https://www.smartkarma.com/entities/lodha-developers-ltd" target="_blank" data-smartkarma-citation="entities:27315:1" rel="noopener">Lodha Developers (LODHA IN)</a>  had become public this year. Success on its successive attempt to get stitched on the bourses however, does not mean that its troubles have vanished.
There were several alarming issues evident couple of years ago when Lodha tried to go public (we highlighted in <a href="https://www.smartkarma.com/insights/lodha-developers-limited-ipo-herd-of-red-herrings-to-wade-through" target="_blank" data-smartkarma-citation="insights:22794" rel="noopener">Lodha Developers Limited IPO: Herd Of Red Herrings To Wade Through</a>, and these are present currently as well, which one must take note of. The bells rings through spheres of the company be it the balance sheet, governance or the basic business environment.

Lodha Developers (LODHA IN)  had become public this year. Success on its successive attempt to get stitched on the bourses however, does not mean that its troubles have vanished.
There were several alarming issues evident couple of years ago when Lodha tried to go public (we highlighted in Lodha Developers Limited IPO: Herd Of Red Herrings To Wade Through, and these are present currently as well, which one must take note of. The bells rings through spheres of the company be it the balance sheet, governance or the basic business environment.

Equity L/S Analyst | Forensic Accounting | India, Yellowstone Equity

Ankit Agrawal, CFA

Equity L/S Analyst | Forensic Accounting | India

Thematic (Sector/Industry)

Real estate sector in India has come a long way over the past decade. From being a fragmented unorganized sector fraught with dealings in cash, the sector has been undergoing significant shifts since introduction of regulations like RERA and GST. At the same time, consumer preferences are shifting towards buying from branded and trusted developers. This is leading to favorable supply and demand shifts in the sector which is helping the organized sector.
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Post this thematic insight, we will follow up with a detailed thesis on our top investment idea in the space. 
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Real estate sector in India has come a long way over the past decade. From being a fragmented unorganized sector fraught with dealings in cash, the sector has been undergoing significant shifts since introduction of regulations like RERA and GST. At the same time, consumer preferences are shifting towards buying from branded and trusted developers. This is leading to favorable supply and demand shifts in the sector which is helping the organized sector.

Post this thematic insight, we will follow up with a detailed thesis on our top investment idea in the space. 


A Fat Theme | Organized Real Estate Developers in India - A Decadal Opportunity

India

Macrotech Developers Limited operates as a real estate company. The Company owns and develops commercial and industrial properties. Macrotech Developers serves customers worldwide.

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Macrotech Developers (LODHA IN)

Macrotech Subsidiaries Merger: It's All Baffling

When we look at the business and financials of these transferor companies, the decision and the entire story-line along with swap ratio/valuation...

Nitin Mangal

Five Star Business Pre-IPO Tearsheet

Five Star Business (0958461D IN) is looking to raise around US$370m in its upcoming India IPO. The deal will be run by ICICI Securities, Edelweiss,...

Clarence Chu

Puranik Builders Pre-IPO Tearsheet (Refiled)

Puranik Builders Limited (1607816D IN) is looking to raise about US$150m in its upcoming India IPO. The deal will be run by Elara Capital and Yes...

Clarence Chu

Forensic Analysis: Macrotech Developers

There were several alarming issues evident couple of years ago when Lodha tried to go public, and these are present currently, through balance...

Nitin Mangal

A Fat Theme | Organized Real Estate Developers in India - A Decadal Opportunity

Real Estate sector in India is undergoing rapid shift to Organized from Unorganized. This is leading to asset light development opportunities for...

Ankit Agrawal, CFA

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