Table of Contents
Company Overview
Bharat Nidhi Ltd is engaged in the business of newspaper distribution (Times of India and Economics Times) in the NCR region. More than 95% of the company’s assets are invested in equity shares of various public listed companies, mutual funds and the unlisted shareholding in Bennett Coleman and Co Ltd (BCCL), the holding company of Times of India and Economic Times publications and Bennett Property Holdings Co Ltd.
The company is also registered with Reserve Bank of India (RBI) as a NBFC in the category of “Not Accepting Public Deposit Investment Company”. The company had voluntarily made an application on 29th Oct, 2014 to the RBI for surrender of its Certificate of Registration (CoR) as NBFC, as the Company is engaged in the business of distribution of publications and no longer meets the criteria for classification as a NFBC as more than 50% of its revenue is from the sale of publications. The said application for cancellation of registration is still pending with RBI.
The total outstanding shares as on 31-March-2021 were 29,00,132 shares of face value Rs 10 each. During FY 2020, the company bought back 19,590 shares at Rs 11,229 per share from the existing shareholders. Matrix Merchandise Ltd, Mr. Vineet Jain and Sanmati Properties Ltd hold 21%, 20% and 16% equity stake in Bharat Nidhi Ltd.
The company declared the following dividends in the recent past:
FY 2021: Rs 0.60 per share
FY 2020: Rs 0.60 per share
FY 2019: Rs 0.60 per share
FY 2018: Rs 0.60 per share
As on 31-March-2021, the company has following associate companies:
- Matrix Merchandise Ltd (23.90% stake)
- Vasuki Properties Ltd (49.99% stake)
- Bennett, Coleman & Co Ltd (24.41% stake)
- Bennett Property Holdings Co Ltd (24.41% stake)
- Mahavir Finance Ltd (20% stake)
Registered Address
The registered office of the company is located at First Floor, Express Building, 9-10, Bahadur Shah Zafar Marg, New Delhi.
| Symbol: | Bharat Nidhi Limited |
|---|---|
| Face Value (₹): | 10 |
| ISIN: | INE286F01016 |
| Demat Status: | NSDL & CDSL BOTH |
| Lot Size: | 10 Shares |
Board of Directors :
| Name | Designation | Profile |
|---|---|---|
| Mr. Bhagavatula Chintamani | Director |  |
| Mr. Nityanand Singh | Director | |
| Mr. Bhagat Ram Goyal | Director | |
Key Business Highlights
- Bharat Nidhi Ltd is actually one of the HOLDING companies of Bennett Coleman and Company Ltd (BCCL), owner of Times of India, Economic Times and Times Internet.
- The shares of Bharat Nidhi are grossly undervalued by investors as its real value does not come from normal business operations but from its investments in BCCL group.
- Management has been doing regular buy-back of shares to provide an exit opportunity to the minority shareholders.
Ratio
| Ratio | FY23 | FY22 |
|---|---|---|
| Operating Margin | 33% | 23% |
| Net Profit Margin | -75% | 554% |
| Return on Equity | -1% | 6% |
| Debt-Equity | 0.00 | 0.00 |
| Current Ratio | 66.05 | 75.90 |
| Dividend Payout | -0.43% | 0.08% |
Note: Above data is as per consolidated financials of Bharat Nidhi Ltd which includes profit of its associates companies
Financial Highlights
| Particulars | 2022-23 | 2021-22 | 2020-21 | 2019-20 | 2018-19 |
|---|---|---|---|---|---|
| Total Income (₹ Crores) | 54 | 39 | 31 | 130 | 79 |
| PAT (₹ Crores) | -40 | 217 | -175 | 11 | 430 |
| Basic & Diluted EPS | -138.57 | 748.66 | -602.55 | 37.54 | 1473.49 |
| Book Value per Share (₹) | 12,629 | 12,769 | 12,021 | 12,624 | 12,595 |
| Equity (₹ Crores) | 3,663 | 3,704 | 3,487 | 3,662 | 3,678 |
Financial Charts
Shareholding Pattern
Peer Comparison
| Company | Market Cap (₹ Crores) | Profitability Margin (%) | ROCE (%) | ROE (%) | D/E Ratio | P/E Ratio | P/B Ratio | Book Value per Share (₹) |
|---|---|---|---|---|---|---|---|---|
| BHARAT NIDHI LTD | 3249 | 553.77% | 0.24% | 5.86% | 0.00 | 14.96 | 0.88 | 12768.66 |
| ADANI TRANSMISSION | 364654 | 10.97% | 8.14% | 17.56% | 4.35 | 266.08 | 38.05 | 72.29 |
| NEURECA LTD | 778 | 17.59% | 29.83% | 22.12% | 0.00 | 30.43 | 6.70 | 203.20 |
Media Updates
“LISTING STATUS: SHIFFTING FROM CSE TO DISSEMINATION BOARD”
Bharat Nidhi Ltd is a unlisted holding co of bennett coleman & co. ltd. At the relevant time it was listed on Delhi Stock Exchange (“DSE”). DSE was derecognised on November 19, 2014. Thereafter, shares of Bharat Nidhi Ltd were listed on Calcutta Stock Exchange (“CSE”) on february 19, 2015. However, the equity shares of Bharat Nidhi Ltd were moved to the dissemination board of BSE Ltd. Bharat Nidhi Ltd was on the dissemination board of BSE from July 13, 2015 to March 15, 2017. Subsequently, Bharat Nidhi Ltd was removed from CSE and was transferred to the dissemination board (“DB”) of NSE. According to DB, exit given to the shareholders and till now matter is sub-juice.
Exit Offer:
Bharat Nidhi Ltd Give Offer to Buy-Back upto 21,791 Fully Paid up Equity Shares of Face Value of Rs. 10 Each, @ 11,229/- Per Share, From Remaining Public Shareholders(As defined in Offer Letter) On Proportionate Basis. Buy-Back window was opened from September 16, 2019 To October 4, 2019.
Status of the exit offer:
A Lot of Shareholders complaint to SEBI Regarding Above Mentioned Exit Offer. Matter Is Yet To Be Decided.
Latest update:
July 6, 2020 : SEBI Filed IA No.48826/2020- For EXTENSION OF TIME in matter of Investigation against Bharat Nidhi Ltd, P.N.B. Finance & Industries Ltd and Camac Commercial Co. Ltd. Supreme Court of India passed a order “A further period of four months, as prayed for, is granted from the lifting of the lockdown.” 11396_2020_33_8_22741_Order_06-Jul-2020 July 5, 2020 : Subramanian Swamy urges Ministry of Corporate Affairs & SEBI to speed up the probe against Times of India’s Jain brothers | Swamy urges SEBI, MCA to act quickly against the Times of India group on its tax violations..
https://twitter.com/swamy39/status/1279779995922071552?s=21
Intrinsic Value of Bharat Nidhi Ltd :
The Intrinsic of Bharat Nidhi Ltd is based on the valuation of bennett coleman & co. ltd(“BCCL”). It’s too difficult to define the accurate value of BCCL. There are lot of subsidiaries and joint ventures but at the time of IPO of Entertainment Network India Limited (ENIL) a subsidiary of BCCL disclosed the value of BCCL in their DRHP Rs. 24118.20 per share in 2005. According to that figure BCCL was valued at approx rs 76000 crs. in 2005. So based on that Intrinsic value of bharat nidhi ltd should be above 2,00,000 per share.
Frequently Asked Questions
The buying and selling of unlisted shares and pre-IPO shares is fully legal and valid.
The procedure to buy the Bharat Nidhi Ltd unlisted shares is fairly simple. Once you have settled on the price and quantity of the transaction, you would have to transfer the funds into the bank account of the seller.
When the funds are transferred and transaction details are shared with the seller, your demat account will be credited with the shares either on the same day of the fund transfer or before the end of the next working day.
In the secondary market, the transactions related to unlisted shares take place with the existing owners of the shares who are generally the employees or existing investors in the company. The company itself is not directly involved.
The Bharat Nidhi shares will get credited either the same day or before the end of the next working day when you transfer the funds into our bank account.
The minimum lot size varies on the basis of market conditions and demand and supply factors. To know the current lot size for Bharat Nidhi Ltd unlisted shares, please visit the stock page on our website: www.delistedstocks.in
There are many factors which influence the pricing of unlisted shares. Apart from the supply and demand factors, the latest transactions happened on the same stock, last funding round of the company, and valuation level of companies of the similar size affect the pricing of the unlisted shares.
Before IPO, there is no restriction on sale and transfer of your Bharat Nidhi unlisted shares.
But once the shares are listed on the stock exchange, for retail investors, there is a minimum lock-in period 6 months after listing on the stock exchange.
Once the selling price and quantity of shares is agreed with us, we will provide you with an UTR number to transfer the shares. Once you have transferred the shares into our company’s demat account, funds are released into your bank account within 24 hours or before the end of the next working day of the transfer of the shares.
If your holding period is less than 2 years, then such income is treated as business income and liable to get taxed as per tax slab of the investor.
If your holding period is more than 2 years, then your profits would be subject to long-term capital gains tax. The current short-term capital gain tax rate is 20% after indexation.
The trading in unlisted shares is governed by Securities & Contract (Regulation) Act,1992. which comes under the preview of SEBI. The SEBI regulations become applicable when the stocks of the company get listed on the stock exchange. There is a minimum lock-in period of 6 months for pre-IPO investors.
The major risk associated with investing in unlisted stocks is the liquidity risk. The possible exit route for investors is either to sell to another investor or wait till the company gets listed on the stock exchange.
Yes, NRI’s can also buy and sell Bharat Nidhi unlisted shares just like domestic investors. But their investment is on a non-repatriable basis.