Canfin homes ltd


(newone) #876

Can anyone explain the transaction as seen in the link below? Is it that Aditya Birla finance has increased the stake in Canfin homes a little OR is it about AB Finance pledging Canfin shares?


(Shiv Kumar) #877

they have increased stake in canfin homes


(Ayush Mittal) #878

Interesting to see the block deal yesterday:

If the seller is not a related party of Chhattisgarh Investment then its really interesting to see the company buy again at current prices.


(Nilesh Mahajan) #879

Does it look like someone had pledged their shares with AB Finance and couldn’t pay for overall funding needs hence AB finance aquire these shares against the pledge?


(newone) #880

I checked this a little further. If you see the shareholding pattern for the past many years, Chattisgarh investments holding in Canfin had been fluctuating 2 to 3% every year. They have been buying and selling a few lakh shares every year. But their holding had always been above 11 or 12% consistently. But curiously though, this is the first block deal reported to / by exchnages.


(newone) #881

It does look like AB finance has acquired these as pledged shares. If thats right, wonder from whom they got it from as they are above 5% and the only shareholder with holding above 5% is Chattisgarh investments.


(Rejinoldo) #882

@newone , where are npa nos shown , i cant see the npa nos in balance sheet / Pand l .


(newone) #883

Perhaps, the company that had pledged its shares of Canfin has started doing that only from Jan 1st, 2017 as the shareholding pattern of Dec quarter doesn’t show any pledged shares by anyone. And this intimation to stock exchanges has come only when the pledged shares crossed 5% as that is the minimum requirement for disclosure. Perhaps the march quarter shareholding pattern would give more details on this.


(newone) #884

Another similar transaction today at 2115. Bought by Chattisgarh and sold by CSP. Hope they are not related parties and this is a genuine buy.


#885

When I saw the shareholding pattern of CanFin in detail 2-3 years back, I felt that there were shareholders who were related to Chhattisgarh Investments. These shareholding companies had directors that were associated with Chhattisgarh Investments. Chhatisgarh may have done this to hide their true stake in the firm. Earlier, there were regulations that forced open offer on the shareholder if her ownership level went over 15%. I could see that Chhattisgarh Investments had control of over 15% (16% to 20%) of shares of CanFin either directly or indirectly.
Chhattisgarh Investments is not a promoter entity. So, I think that it would not be required to disclose the shares of CanFin that it pledges. And hence, the past shareholding disclosures would not show any shares pledged by Chhattisgarh Investments even if some shares were pledged.


(newone) #886

Hi Pranav, I see the SHP of any company doesn’t disclose the pledged shares of non promoters. Has AB finance made this disclosure because their holding of canfin (acquired pledged shares) have gone beyond 5%?


#887

Yes. I think so. They would be required to disclose their ownership if it goes over 5%, which it did.


(hrfacebuk) #888

Both seem to be related party.
Pasting a line from Care rating document on Chattisgarh Investments, which suggests so.
“The total market value of investment in CIL and CSP investment put together is around Rs.750 crore as on February 10, 2017.”

Cheers.

Discl: Invested (7% of PF)


(newone) #889

Good find. So we now know that Chattisgarh investments keeps juggling around a small stake once in a while. They are a decent company - holding entity of the Sarda group. So not bad.


(Ayush Mittal) #890

One interesting thing going forward would be that the private cos i.e… Chattisgarh & GIC would be together holding close to 28-30% of the shares vs close to 31% held by Canara Bank.
Will the pvt cos demand board seat and try to have more control and improve the processes etc or will they just continue to be major investors?


(Jatin Soni) #891

Chattisgarh investment tried to get a board seat but failed to succeed


(Santosh Sinha) #892

@ayushmit

In the medium term they would be looking for management control and board seat for sure.
Can bank will further dilute going forward as PSU bank capital requirements is huge.
They might acquire from market also or from Rohan Murthy

Cheers


(bramha) #893

Chhatisgarh Investments Limited is part of Sarda Group. Directors of Chattisgarh Investments Limited are Kamal Kishore Sarda, Saurabh Rathi, Ritu Jain, Navin Ramji Shah. Kamal Kishore Sarda is the CMD of Sarda group. Kamal Sarda’s Offices in Chattisgarh were raided last year during Sarda Raids.

Can Fin Homes is professionally run. Their large shareholding does not impact Can Fin Management or Performance. However Sarda Group’s other business operations may have an impact on their shares / related party transfers / pledging etc.

BS: Holding Can Fin and hence my views may be biased.


(Venkatesh) #894

It might be better if Chhatisgarh Investments Limited does not get a board seat


(newone) #895

Another 4.7 Lakh shares sold by CSP & bought by Chattisgarh investments today. In total, 11.3 lakh shares exchanged hands in the last few days.