Canfin homes ltd


(ramanhp) #1169

I won’t argue here on who but needs aggressive leadership to help it grow in new territories. A HDFC, Piramal or Aditya Birla Fianance should be excellent too.


(newone) #1170

On the ground action really picking up for the affordable housing idea…!!!


(spvk1) #1171


A link showing quick home building techniques that may be initiated by government


(newone) #1172

Seems like real estate market is picking up. YoY comparison may not give a correct picture as the same period over previous year faced the demonetization problems. Not sure about the QoQ figures which will more realistic picture (especially around RERA impact)


(newone) #1173

Is Basant referring to Canfin Homes?

https://mobile.twitter.com/BMTheEquityDesk/status/950231992787918848


(ramanhp) #1175

Does anyone know what happened to the rights issue plans of Canfin homes?


(newone) #1176

There had been a block deal today. Can anyone share details about where to get the buyer and seller information?

image


(newone) #1177

Canara bank management keep doing flip-flops. They decided to sell in full or partial on Nov 21. Sometime in Dec, they decided to sell only 4 % for now and sell the rest later. Today, they have reverted the decision to sell 4% and going back to the decision made on Nov 21. (They also reverted their decision to sell their stake in Canara Robeco AMC). Guess they are not getting the bids at the valuations they expect.


#1178

I would also think that they are not getting the valuations they expected.


(newone) #1179

HDFC is looking at acquisitions in affordable housing finance space…would be fantastic if Canara bank sells the stake to them. In the interview below, Mr.Keki Mistry says they are getting offers but valuations are high…

“From HDFC’s Keki Mistry:
Q: You have said that you are open to inorganic avenues of growth in the affordable housing space. What kind of options are you looking at?
A: Inorganic growth is acquisition opportunities. Are there any in the market today? Maybe there are, but the valuations may not justify it. This is largely in the HFC (housing finance company) space. So an HFC or NBFC (non-banking finance company) which is into housing is what we look at, but not at current valuations. There are a couple of assets, but the valuations don’t make sense. If the valuations were to come down and make sense, we’d be happy to look at it.”


(hemtan100) #1180

Rights issue as per management Q2 concal would be contingent on the loan book growth opportunities that they would see in Q3 and Q4. The absence of any rights issue announcement so far IMHO is a negative.


(ramanhp) #1181

The Canara bank stake sale Flip-flop and no growth visibility coupled with a negative report on HFCs by Moody’s seems to be coming together of all negatives for Canfin homes. Now only a good result can revive postive bias for it.


(Venkatesh) #1182

what do you mean by no growth visibility?


(Lakshmi Narayana) #1183

As per Moneycontrol

The company has entered into a contract with ‘Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited’ for carrying out the corporate agency business.

Bulge bracket private equity funds including TPG Capital Management, Bain Capital and Baring Private Equity Asia are in initial talks to buy state-run Canara Bank’s 30 percent stake in its listed housing finance subsidiary, Can Fin Homes, as the Bengaluru-based lender tries to improve its capital base, said an ET report.


(ramanhp) #1184

(ramanhp) #1185

Given the intense competition from new Housing companies and re-capitalized PSU banks, the relatively fast growth may be thing of past. Salaried class is the favorite target for most of the HFCs. RERA and real estate woes does not make things easier and it still not clear on how long the negative hang remains.


(newone) #1186

Are there companies in India where the sole promoter is a PE player?


(Venkatesh) #1187

Capital First where Warburg Pincus is the promoter


(newone) #1188

Yes but that is a company promoted primarily by V.Vaidyanathan (an experienced banker from ICICI Bank) along with Warburg Pincus. So the active management is by Vaidyanathan. Current Canfin management are all deputees from Canara bank.


(prash.peru) #1189

Gruh finance had a pretty strong rally today. Probably in expectation of results in the next few days? Reason to keep a close eye on Canfin too?