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Good afternoon Vas and all,
A useful piece of information, Vas. Thank you.
So L&T ( I will not provide the full name because the first word of L&T's name will be edited ) and L&G have both sold off their Smart Metering Divisions. L&T to Schneider Electric and L&G to Esyasoft.
Thank you for the other information Vas, it was very informative.
LTI.
Morning LT,
On further inspection i think that L&G demerged / sold ONLY the manufacturing division in India to Esyasoft .
This would make sense as Adani and Esyasoft do not manufacture smart meters, so this would bring in their own manufacturing division.
"Stable source of revenue due to demerger of loss making manufacturing unit
LGL’s revenue sources were from sale of meters and from sale of services in the form of consultancy and software development services. However, the company has demerged its loss making manufacturing unit. Currently, the company is generating its revenue from its service operations based on Noida and is only providing services to subsidiaries. Since, the service operation has always been profitable for LGL, the company is expected to generate profit from FY24 onwards."
https://www.careratings.com/upload/CompanyFiles/PR/202401120117_Landis_GYR_Limited.pdf
Good evening Vas,
And thank you for sharing the infornation on Esyasoft and L&G, it is appreciated. And slots in a piece of the puzzle that has for me, been missing for some time.
Namely, that L&G did not seem to be involved in the Indian Smart Meter roll-out, recently.
I had thought that despite the opportunities for meter manufacturers in India, that L&G were more inclined to smart meter opportunities in developed markets, rather than developing markets. So they could have been to expensive, in my opinion.
L&G did supply WBSEDCL ( West Bengal ) with smart meters for many years, but their last order in India, I believe, was during 2017/2018, for Tata Power ( TPDDL ). So the aquisition of Landis&Gyr by Esyasoft, may explain why L&G do not seem to be tendering for contracts in India, at this moment in time.
But thanks again Vas.
LTI.
Just to add a quote from the IHC report.
"
Esyasoft has actively engaged in strategic partnerships and
collaborations to enhance its capabilities. With the recent
acquisition of Landis & Gyr Smart Metering manufacturing in
India, Esyasoft is positioned to lead the utilities transformation
and accelerating decarbonization in the electricity, water and
gas sector.
A notable partnership is with ADANI India, where Esyasoft has
collaborated to deploy end to end smart grid solutions. This
joint effort combines ADANI’s infrastructure prowess with
Esyasoft’s Smart Grid capabilities, facilitating more efficient
energy distribution and management. The synergy between
ADANI’s extensive reach in the energy sector and Esyasoft’s
cutting-edge technology significantly enhances the efficiency
and effectiveness of energy distribution and consumption
monitoring.
Esyasoft has collaborated with leaders in the electric
vehicle (EV) charging, hydrogen infrastructure, and carbon
management sectors. These partnerships are geared towards
integrating the company’s smart metering and IoT solutions
with the emerging technologies in these areas. This integration
is key to supporting the transition to cleaner energy sources
and promoting sustainable practices in energy consumption"
Cheers Vas
Afternoon LT,
Thanks for the information.
Something I did not realise was that in Dec 2023 Esyasoft bought Landis and Gyr (India, or maybe the whole company) and the new company is called "Esyasoft Landis And Gyr Limited (ELAGL)"
https://www.legalentityidentifier.in/leicert/3358001IMNCP9MOBIQ16/
I only discovered this while reading International Holding Company’s (IHC) 2023 Sustainability
Report details the company’s Environmental, Social, and Governance (ESG) Strategy and highlights and i noticed they have Esyasoft as one of their indirect subsidiaries etc - see pages 12 and 23 for what they say about Esyasoft, big in EV charging also .
https://www.ihcuae.com/photo/plugin/guidebook/2024/1710400355_file_1.pdf
Just for info GL Vas
Good afternoon Vas,
Some information from 2022, that may be of interest, including some collaborations between CyanConnode/Esyasoft, up until 2022.
http://cyanconnode.com/wp-content/uploads/2022/05/Brochure-A4.pdf
CyanConnode and Esyasoft had collaborated on 5 smart meter projects up until May 2022, from what I can make out. Two separate projects for MPWZ in Indore. One project for TANGEDCO in Tamil Nadu. One project for HPSEB in Himachal Pradesh and one project for APDCL in Assam.
Esyasoft may have been involved in other contracts since 2022, like the Assam/IntelliSmart/CyanConnode contract, in connection with the Strategic Framework Agreement, but I have not checked as yet, so I cannot say for certain.
I hope this helps with some pieces for your jigsaw. It is interesting slotting the various pieces together.
Good Luck Vas and all.
LTI.
If there was an IPO for India who do you think would take the lead of a consortium. I recon Genus, Intellismart and a few other larger manufacturers to protect their interest. Also would they be happy with minority stake. Obs.
Afternoon LT and All
Interesting reading some of the Esyasoft case study's in central and northern India. Its hard to know for certain if Cyan were involved in these or not , anyone have an idea?
Example North India Case Study
"Outcomes
The results, post-investment, were nothing short of extraordinary:
Billing efficiency soared to 85%
The revenue in 10 months surged from USD 1.5 million to USD 2.5 million
ATC losses plummeted from 38.5% to a remarkable 9.6%
https://www.esyasoft.com/case-studies/smart-meter-deployment-for-a-north-indian-utility-a-transformative-success
GL Vas
Good morning Vas,
Thank you for posting the latest NSGM report, it is appreciated. The overall number of Sanctioned smart meters remains the same, at 22,22,64,571 ( 222,264,571 ) but the Awarded smart meters has increased by 3,548,348 so far this month, since 3rd April, 2024 update.
There are three main winners, in this update, so far this month and they are for projects in Jammu and Kashmir, Sikkim and West Bengal. Installations went up to 246,988 in April so far and the overall smart meter installations now stands at 10,570,045.
So steady progress is being maintained, I feel.
Good Luck Vas and all.
LTI.
Good morning all,
The idea of an IPO was mentioned/discussed on the 18th April 2024, by multibagger on ADVFN. An option with which I agree which sounds very attractive.
From multibaggers post, yesterday, on ADVFN:-
" With app of a Joint Broker, a large corporate event is likely to be in the offing in the next 4-6 months. I personally think that it could be an IPO of our Indian 100% owned subsidiary, with Cyan still retaining the majority/controlling stake once we have an even better order pipeline in India and/or MENA. Speculation on my part no doubt, but too many strategic moves and all closely temporarally connected to be a mere coincidence."
And it fits in quite nicely with what I mentioned a couple of days ago, about the new entity being established in the UAE " ..... to promote business in the MENA ( Middle East and North Africa ) region " and maybe CyanConnode were looking at " Post India " planning, even at this stage."
I remember when I first came to know Cyan, as it was known then, they just had an office on the out-skirts of Cambridge. Now CyanConnode have there head-quarters more towards the center of Cambridge, have an office in Gurugram, India and an office in Stockholm, Sweden.
So why not the UAE.
Good Luck all.
LTI.
Think it depends on what type of secondary offering ITT. As you say it's hard to underrstand why PG would be involved for a bog standard fund raise. My guess is whatever us going on The incumbents don't have the skillets to manage it. On that basis so e very interesting times to come over the next few weeks.
https://www.kotaksecurities.com/ipos/what-is-a-secondary-offering-ipo/
Or, a bog-standard fundraise.
Not sure why Panmure Gordon 'big guns' would be required for this.
Or, the IPO of some of CyanConnode India's shares.
Looking at the skill set of the Panmure Gordon team, my guess is that they've been brought in to deal with a secondary offering. For those that don't know, a secondary offering is described as follows:
'A secondary offering is not dilutive to existing shareholders since no new shares are created. The proceeds from the sale of the securities do not benefit the issuing company in any way. The offered shares are privately held by shareholders of the issuing company, who may be directors or other insiders (such as venture capitalists) who may be looking to diversify their holdings. Usually, however, the increase in available shares allows more institutions to take non-trivial positions in the issuing company which may benefit the trading liquidity of the issuing company's shares.'
Time will tell.
GL
ITT
Morning, with Genus not costing CC anything in production if the agreement still exists and if sentiment is there for getting large Indian orders then may be the new broker is not for placing but a rerate. If so, without backup knowledge I would be inclined to look at 30>40>50p in early stages an orders develope. DYOR
The primary CC mouthpiece here has conceded another placing is due.
It will be sold as a 'growth' fund raise. For context, the last one in November 23 was at 10p, before that was January 23 at 17p.
Not sure where the growth bit comes in, these have both been survival based, as has every placing before. Simple fact, £16 odd million revenue does not cover costs with the Gross margin they now land on. All staff appear to have share options, free BUPA and decent pension provision, it's almost like they are working for a proper company!
Good evening tonyj and all,
Over the last few days, since the CyanConnode Trading Update, on 16th April, 2024 and the latest Zeus report also on 16th April, 2024, investors have been steadily buying into the positive potential for CyanConnode, contained in both reports.
There could also be the possibility that some investors are buying into the chance that any Placing could be at a premium as there has been some positive buying so far this week, which is yet to have a positive impact on the share-price.
Time will tell tonyj.
Take care and Good Luck.
LTI.
Hi tonyj
Thanks for your thoughts.
What's with the disconnect between the SP and the story then? Do you think that CB is correct and that the market is not giving JC the benefit of doubt, thinking that Cyan's gross margin has been further eroded to achieve the claimed revenue growth or is it something else?
I am concerned that the SP is so low but I'm still hoping for a decent outcome. To be honest, I wish I'd got out a while ago and let you lot get on with it.
Heigh-ho.
GL
ITT
I’m betting on an M&A from an Indian consortium, observing the huge order book in their own Country & looking to grow Cyan’s footprint in India much further & Globally.
Correction to 15:51.
Or may be the former would have eyes on doing both.
ITT, its a funny situation, I have said before I wonder if an Indian industry consortium would wade in, that would guarantee them supply and maintenance for next 10 years or an ROW company who would go for expansion. Or may be the be would have eyes on doing both. I do not think with longterm Funds and PI's there would be interest below 100p and probably much higher than that. Don't forget opportunity capital has been sunk in here for a long time.
Well jake, I am OK, picking up at 2p and more recently up/down. You are right I didn't read all of it.
There is nothing much to know about AIM. You go into it for the risk. Most fall by the wayside.
Hi tonyj
When you say "something big afoot", what do you think that might that look like?
GL
ITT
You mean tow the party line and don't post anything you don't agree with Tony. It was simply a piece to read in full, which clearly you, as usual didn't bother to do, just looked at the headline.
Incidentally after all the recent shenanigans I am extremely cheerful thanks. How about you?