As posted by me on PEL, this would be a major win for Minority investors of DHFL. While DHFL needs this win more desperately, it remains to be seen how Piramal group proceeds.
Payment of Interest on time
Expecting strategic investor announcement soon.
They are sitting on reserve liquidity only after selling off a lot of assets. Also, their borrowers ( homeowners) are all paying interest. The problem for shareholders is the dwindling business due to lack of capital.
It is a relief that PE firms such as Blackstone, Warburg Pincus, oaktree etc are providing instant cash.
But something doesnāt add up for me. Why was only DHFL affected by Bond selling at DSP? cobra post was not in the picture then. None of the lenders have come out with an advisory against lending to DHFL either. Also, I remember how stake increase by Mr. Jhunjhunwala was publicised after DHFL fell 60pct. Why was the bigbull so nervous that he had to start selling in January itself?
DHFL has seen its value fall twice before only to recover higher than before. They have given loans at mclr for money borrowed at a much lower rate in previous years. Additionally, selling assets will strengthen liquidity. So, I hardly see a problem there.
Is this a game where the stock price is intentionally manipulated for gains by limited parties?
I wish DHFL gets a strategic partner like how IBHF got through LVB Bank. Such a partner can be very helpful during liquidity crisis & get the privilege of a bank backed NBFCs.
More than Piramal enterprises in my opinion a bank/pension house would be a better strategic partner.Thoughts welcomed on this
Yes you are right, itās a better when bank is in a partnership.
The best benefit for DHFL would be from a South bank, just like Ibhf and LVB. Maybe something like Karnataka bank.
Tata capital , Lone Star reported to be in discussion.
DHFL shareholding pattern is out.
While Inst. Investors are down by 4%, Mr. Jhunjhunwala has raised stake by 0.7% . Most Inst. investors and NBFCās are out.
Public shareholding is now up from 16.6% to 21.5%.
Regarding DHFL shareholding change, this analysis might look interesting
Your post was an eyeopener for the new investors. I usually try to look for stocks where neither retail investors nor DIIās are holding a major chunk due to their short term volatility.
Additionally, on the positive side, DHFL has decided to re-constitute the board committee to improve corporate governance. Whether a reality or just a jumla, we do not know yet.
The current correction seems be due the funds selling their holdings beacuse of exceeding exposure limits.
News share
If DHFL promoters keep selling businesses, what will the shareholders be left with?
They are withdrawing salaries and paying debts. What will shareholders get?
How is this unlocking shareholder value?
Withdrawing salaries? Could you elaborate on this?
What is the alternative to selling assets? Without capital the company is dead in the water. Heck, most other NBFCs (good AND bad) are doing it. Among other spinoffs, did anybody criticise HDFCās move to sell Gruh?
In times of a crisis it is imperative that management is paid because they are the ones who steer the ship! Would you rather they not be paid and leave?
Now is not the time of āunlockingā of shareholder value, now is the time to preserve it until the company can get back to lending.
It is imperative to view events like this in their entitreity and take an appropriate long term view. Donāt forget that the majority of the value of an enterprise comes from its terminal value.
The money they withdraw from business to run their family life.
Nobody criticised HDFC for spinning off GRUH because HDFC is a going business. There might be a lean phase but business is a going concern. GRUH was never part of the core HDFC business.
DHFL has stopped disbursing new loans. They are paying off banks and selling their businesses (selling non-core businesses is still ok). Now this would not be a problem in general but they have even decided to breakup the core business so other companies can take over. What will DHFL be left with? This is my valid concern.
PS: Can anybody with correct information please share why DHFL is not getting any fresh loans from banks even when they are constantly paying off their debts and their NPA are in control?
Situation in DHFL is very similar to jet airways, yes bank and ADAG.
Would like to the views of enlightened forum members, Will the fate of DHFL be same in short to medium term. If no then why not ?
Although I dont look at these stocks from investment perspective.
Would you mind explaining how you put yes bank in the same situation as Jet, ADAG, DHFL ?