An overview of unlisted shares in India - Precize

1. NSE

The company’s primary services: The National Stock Exchange (NSE) is the largest stock exchange in India and has maintained its position as the largest derivatives exchange globally for four consecutive years. 

Products & Services: Their offerings include equity derivatives, commodity derivatives, currency derivatives, and interest rate derivatives.

Industry Analysis: The global capital markets, encompassing equities, corporate and sovereign bonds, were valued at USD 153 trillion in 2014. This figure is projected to grow significantly, reaching USD 515 trillion by 2030, highlighting the expanding opportunities within global financial markets. Looking ahead, the global economic hierarchy is expected to shift dramatically. By 2050, the five largest economies are projected to be China, the U.S., India, Indonesia, and Germany. By 2075, the top three economies are expected to be China, India, and the U.S.

Goldman Sachs Research provides insightful forecasts on the increasing share of emerging markets (EMs) in global market capitalization and GDP. By 2030, EMs are expected to account for 35% of the global market cap and 50% of global GDP. These figures are projected to rise to 47% for market cap and 60% for GDP by 2050. By 2075, EMs' share is anticipated to grow to 55% of market cap and 68% of GDP.

Economists project significant growth in EMs' share of the global equity market. Currently, EMs hold around 27% of the global equity market. This share is expected to increase to 35% by 2030, further rise to 47% by 2050, and reach 55% by 2075. India is poised to experience substantial growth in its global market cap share, rising from just under 3% in 2022 to 8% by 2050 and further increasing to 12% by 2075.

Financial performance of NSE Financial Unlisted Shares: 

(All units in INR Cr unless specified)

Valuation of NSE Unlisted Shares:  

2. HDB Financials

The company’s primary services: Incorporated in 2007 and headquartered in Ahmedabad, Gujarat, the company is a prominent Non-Banking Financial Company (NBFC) that provides a wide range of financial services to both individual and business clients.

Products & Services: The company offers a diverse range of loans, including:

• Personal loans

• Gold loans

• Two-wheeler loans

• Loans against property

• Business loans

• Construction equipment loans

• Loans against bonds

• Loans against life insurance policies

• Car loans
  

Additionally, they provide BPO services such as forms processing and document verification.

Industry Analysis: NBFC Sector in India: 

The Non-Banking Financial Companies (NBFCs) sector in India has become a vital part of the financial system, playing a key role in economic growth and financial inclusion. NBFCs extend essential financial services to unbanked and underbanked populations, complementing traditional banking efforts and broadening financial accessibility. The sector's expansion is fueled by various factors, including increasing consumer demand, favorable government policies, and technological advancements. Innovations such as mobile wallets, advanced payment solutions, and the incorporation of artificial intelligence (AI) and machine learning (ML) in risk management, alongside the flourishing fintech ecosystem, have provided NBFCs with new tools to enhance their service offerings and operational efficiency.

The NBFC sector leverages a combination of physical presence and digital capabilities, offering unique opportunities to expand into underpenetrated regions. As of 2023, the NBFC sector was valued at USD 326 billion and accounted for 18.7% of the banking sector's assets, an increase from 13% in 2013. This sectoral growth aligns with the broader economic trajectory, with India's GDP projected to reach USD 7 trillion by 2030. The credit-to-GDP ratio for NBFCs stands at 12.6%, underscoring their integral role in the financial ecosystem.

Structurally, NBFCs are categorized into base, middle, and upper layers, representing 6%, 71%, and 23% of total assets, respectively. Aggregate lending by NBFCs experienced a substantial increase of 20.8% year-over-year as of September 2023, driven predominantly by personal loans and loans to industry sectors, compared to a 10.8% growth in the previous year. The asset quality within the sector has improved, with the gross non-performing assets (GNPA) ratio declining to 4.6% in 2023 from 5.9% in 2022 and the net NPA (NNPA) ratio falling to 1.5% from 3.2%. Capital adequacy has also seen a slight improvement, rising to 27.6%, while profitability has increased, evidenced by a rise in Return on Assets (ROA) to 2.9% from 2.5%. These trends highlight a robust and adaptive NBFC sector positioned for continued growth and resilience within India's dynamic financial landscape.

Financial performance of HDB Financial Unlisted Shares:

Valuation of HDB Financials Unlisted Shares:

3. TATA Capital

The company’s primary services: Established in 2007, TATA Capital operates as a Non-Banking Financial Company (NBFC) subsidiary of Tata Sons Private Limited. The company offers a wide range of services, including commercial finance, investment banking, and private equity.

Products & Services:

• Commercial Finance

• Investment Banking

• Private Equity

• Asset Finance

• Investments

• Consumer Loans

• Tata cards

• Cleantech Finance

• Leasing Services 
  

Industry Analysis: The Non-Banking Financial Companies (NBFCs) sector in India has become a vital part of the financial system, playing a key role in economic growth and financial inclusion. NBFCs extend essential financial services to unbanked and underbanked populations, complementing traditional banking efforts and broadening financial accessibility. The sector's expansion is fueled by various factors, including increasing consumer demand, favorable government policies, and technological advancements. Innovations such as mobile wallets, advanced payment solutions, and the incorporation of artificial intelligence (AI) and machine learning (ML) in risk management, alongside the flourishing fintech ecosystem, have provided NBFCs with new tools to enhance their service offerings and operational efficiency.

The NBFC sector leverages a combination of physical presence and digital capabilities, offering unique opportunities to expand into underpenetrated regions. As of 2023, the NBFC sector was valued at USD 326 billion and accounted for 18.7% of the banking sector's assets, an increase from 13% in 2013. This sectoral growth aligns with the broader economic trajectory, with India's GDP projected to reach USD 7 trillion by 2030. The credit-to-GDP ratio for NBFCs stands at 12.6%, underscoring their integral role in the financial ecosystem.

Structurally, NBFCs are categorized into base, middle, and upper layers, representing 6%, 71%, and 23% of total assets, respectively. Aggregate lending by NBFCs experienced a substantial increase of 20.8% year-over-year as of September 2023, driven predominantly by personal loans and loans to industry sectors, compared to a 10.8% growth in the previous year. The asset quality within the sector has improved, with the gross non-performing assets (GNPA) ratio declining to 4.6% in 2023 from 5.9% in 2022 and the net NPA (NNPA) ratio falling to 1.5% from 3.2%. Capital adequacy has also seen a slight improvement, rising to 27.6%, while profitability has increased, evidenced by a rise in Return on Assets (ROA) to 2.9% from 2.5%. These trends highlight a robust and adaptive NBFC sector, positioned for continued growth and resilience within India's dynamic financial landscape.

Financial performance of Tata Capital Unlisted Shares

Valuation of Tata Capital Unlisted Shares:

4. SBI Funds Management 

About the company: SBI Funds Management, a joint venture between the State Bank of India and French asset manager AMUNDI, was incorporated on February 7, 1992. Approved by SEBI, it manages SBI Mutual Fund, offers Portfolio Management Services to clients, and provides Alternative Investment products through Alternative Investment Funds for high-net-worth individuals and businesses.

Industry Analysis: As per the Industry Body Association of Mutual Funds in India (AMFI), the Total assets mobilized stood at 1,14,28,216 crores in FY24 against INR 1,05,07,356 crores, wherein the fresh Systematic Investment Plan (SIPs) during FY24 grew by 61% (Y-o-Y) to 3.72 crores.

In FY24, the Indian equity market witnessed a phenomenal performance as benchmark indices soared to unprecedented all-time highs, with the Nifty and Sensex scaling milestones of 22,526.60 and 74,245.17 mark respectively. India's market cap is currently the fifth largest globally ($4.5 trillion) and is likely to hit $10 trillion by 2030, according to a report titled ‘Recap 2024. Crystal Gaze 2025’ by financial conglomerate Pantomath Group.

Financial performance of SBI Funds Management Unlisted Shares:

Valuation of SBI Funds Management Unlisted Shares:

5. Capgemini 

About the company: Capgemini Technology Services India Limited, incorporated in 1993 and formerly known as IGate Global Solutions Limited, is the Indian subsidiary of the global IT and business consulting giant Capgemini. 

Products & Services:

• Cloud

• Customer-first

• Cybersecurity

• Data and Artificial Intelligence

• Enterprise management

• Intelligent Industry

• Sustainability
  
  

Industry Analysis: The global IT sector, valued at USD 1.40 trillion in 2023, is projected to reach USD 2.80 trillion by 2033, growing at a CAGR of 7.17%. Key growth drivers include the widespread adoption of cloud computing due to its scalability, cost-effectiveness, and automatic updates. Rising concerns about data security and privacy protection, coupled with high demand for data analytics and big data solutions, further propel the industry. However, a key risk factor is the FOMC holding key rates steady at 5.25-5.50% for the seventh straight meeting in June 2024, with the US Federal dot plot, projected  2.25-point interest rate cut by year-end 2026, potentially leading to reduced discretionary IT spending.

Financial performance of Capgemini unlisted shares:

(All units in INR Cr unless specified)

Valuation:

Disclaimer: This information is for private use only and does not constitute investment advice. Recipients must assess risks and seek advice from financial, legal, and tax professionals. Private market investments carry risks, and there are no guarantees of returns or capital protection. We are not liable for investment decisions.