Five firms raise ₹8 crore via social stock exchange listing
The National Stock Exchange’s (NSE) Social Stock Exchange (SSE) platform listed two more NPOs on Thursday — Swami Vivekananda Youth Movement (SVYM) and Transform Rural India — taking the total number of SSE listings to five.
SVYM, which specialises in areas of education, health, socioeconomic empowerment, environment and sustainability, has raised ₹1.55 crore, for a project which aims to establish an institution based on the recommendations of the National Education Policy 2020. Transform Rural India works in the areas of skill development and sustainable livelihoods, and has raised ₹2 crore for a project.
The other listed firms include Mukti, Ekalavya Foundation and SGBS Unnati Foundation. Together, these five firms have raised about ₹8 crore so far, with five more firms gearing up for a listing.
SEBI chief Madhabi Puri Buch said the listings are an important step towards inclusive growth of the social sector and will help build trust and expand the donor base for the organisations. “Most of these organisations are credible in their own space, they have good reputation, have existing donors and have the support of a large number of people of the
The Social Stock Exchange of NSE on Thursday celebrated the listing of five nonprofit organisations. Madhabi Puri Buch (centre), Chairperson, SEBI, flanked by Dr R Balasubramaniam (left), Chairperson, Advisory Committee, SSE, SEBI, and Ashwani Bhatia (right), Whole Time Member, SEBI, and Ashishkumar Chauhan, MD & CEO of NSE, were present on the occasion
communities that they serve. What will drive participation for the social sector is trust, which is what the social stock exchange will bring to the sector,” said Buch.
TO ALLOW SEBI STAFF
She said SEBI will seek permission of its Board to allow purchase of zero coupon zero principal bonds at its board meeting on Friday.
Finance minister Nirmala Sitharaman said the listings were a fulfilment of the vision announced in the 2019 Budget, aimed at bringing “the capital markets closer to the masses and meeting various social welfare objectives related to inclusive growth and financial inclusion,” through the SSE framework.
“The fund mobilisation via the SSE platform will be directed towards develop
mental projects in education, skill development, agriculture, livelihoods, women empowerment and more. The government is committed to supporting the platform, as this will enable the democratisation of investments and empower people across the country to take part in India’s growth story,” she said.
Savitha Sulugodu, CEO, SVYM stated, “State alone cannot sustain social development; hence, forces have to join together.
Civil societies, citizens, organisations, corporates must join hands to build any country. I am excited and hopeful that the Social Stock Exchange will give a muchneeded push to the social sector in India, as we all together working towards reaching the SDGs by 2030.”
LKP Securities CRAFTSMAN AUTOMATION (BUY)
Target: ₹5,082
CMP: ₹3,924.35
Post recent correction, Craftsman Automation Ltd (CAL) looks quite attractive to us given all the fundamental drivers remaining intact. This correction provides a great opportunity for investors to enter into quality auto ancillary names like CAL which is a market leader in machining Powertrains and Auto Aluminium products. Considering its synergic DRA acquisition and the benefits to be derived out of it, CAL gives us comfort.
Mainly on valuations, the stock is now trading at 15.2 x FY26E earnings which we believe is quite attractive. We believe the Power train business will be driven by expected pick up in Replacement cycle for HCVs in the medium term and also fresh demand rising by movement in the investment capex cycle of the country by second half of FY25 and more in FY26. Dieselisation demand from all over the world and localisation of diesel vehicle demand should lead to strong demand for Power trains. Rising infrastructure growth, construction, mining, agricommodities transportation, increasing freight rates etc will all lead to a very strong growth in the CV industry post the near to midterm lull. We therefore believe that the real demand growth may come in FY26 only as FY24 and FY25 may see soft growth. New order from a global CV player also should aid growth in FY26.
JM Financial BALRAMPUR CHINI (BUY)
Target: ₹500
CMP: ₹356.05
The current share price of Balrampur Chini (trades at 10.5xFY26EPS), we believe, disregards: improving sugar prices (exmill sugar price at 3738/kg despite the peak production season) with likely reduction in acreage in Maharashtra and Karnataka (water availability challenges) in the coming season; its increased ethanol capacity (and, hence, earnings); significant operational cash flow generation (average annual OCF of ₹600 crore; value of its 33.7 per cent stake in Auxilo Finserve (owns 165.3mn shares worth ₹690 crore, basis the recent fundraise valuation; and option value towards its foray into polylactic acid, which can be as large as 1525 per cent of the current market cap.
BCML’s foray into PLA , we think it is a step in the right direction to derisk the dependence on sugar production/prices as it diverts sugar into PLA, and capitalise on the huge growth potential outside the sugar industry that PLA offers. While the company has not disclosed any financial aspects on this new line of business, our primary analysis indicates substantial value creation (theoretically up to ₹2,000 crore). We have not factored in PLA investments into our estimates as critical financial details pertaining to pricing/margins/RoCE have not been disclosed ye