Piramal Enterprises Ltd

Looks like frustration on individual investors who have invested into a fund without using due diligence and without understanding underlying inherent risk. Many a times brokers are guilty of misguiding gullible investors! That’s why standard disclaimer give by mutual funds is - “Mutual Fund investments are subject to market risk. Please read the offer document carefully before investing”

I am not sure how much one can attribute it to Piramal group’s performance.

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Piramal, Canadian company may form $250-mn realty JV:
(The JV to help Ajay Piramal-promoted Piramal Fund to take exposure to debt & equity needs of developers)

Ivanhoe Cambridge, the real estate arm of Canada’s second largest pension fund manager CDPQ, is looking to re-enter Indian real estate with a joint venture with Ajay Piramal’s Piramal Fund Management, said a source in the know.

Both the partners are planning to set up a $250-million JV, which will provide equity capital to developers of residential projects, the source added.

Piramal Fund plans to focus on equity investments in real estate:
(Piramal Fund Management has a $300 million offshore platform in the works and plans to deploy about Rs500 crore for land transactions)

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Piramal restructures its financial services business (dated 15-Jul-16):
(Piramal’s real estate and mezzanine funding arms integrated into a larger, more valuable entity in the prelude to a spin-off of the unit)

The stage is being set, and in a grand style of AP, for unlocking the shareholder’s value. Looking at the kind of valuations that’s accorded to NBFCs and particularly MFIs, it would be very interesting to see what kind of valuations their FS arm will get under very able leadership and management of AP.

It’s simply fascinating to see and reflect upon how AP has, step by step, first laid the foundation and prepared a launchpad to take advantage of the growth potential that the turnaround in the economy would offer by tie ups with groups like Shriram which has impeccable record in FS, and continuously partnering with very able global fund houses. The more I think of this and the way story has unfolded so far, the more I get in awe of this man. Truly remarkable! As an investor a lot to learn from his contrarian, independent and rational approach to very many things.

To quote a very apt and relevant remark of WB, “An investment has to be viewed as a motion picture”

Disc: Invested with 15% of my portfolio from much lower levels

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Looks like PEL will be included in NIFTY 50 from Sep 30th

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A small observation: The news item suggests that PEL will be included in Nifty Next 50, which is the next rung after the Nifty 50.

Thanks
Vinod

Yep, you are right. Got carried away!

Piramal in talks to invest Rs800 crore in ACME Solar
(Investment in ACME being done by Piramal Enterprises’ Structured Investment Group; the transaction has almost been finalized)

I am not sure why they are investing in real estate related things.
Also, quite a few interviews these days, and some even carrying front page photo. In one of the interviews he told some thing like "there are not many stocks in which you invested x in year xyz and gave y returns today."
Generally management talking in stock price returns considered bad right? May be this is an exception?

Disc Not invested.

Piramal has entered into lots of different things recently…Some of which like Solar power, Cement, construction finance, Land acquisition, PE type of investments with builders…etc.apart from their core business…

Difficult to keep track now…

A Most inspiring talk. We are lucky to be stakeholders of such an highly ethical n visionary business man

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Piramal Enterprises enters into an agreement to acquire US based CDMO for High Potency APIs (HPAPIs), Ash Stevens Inc.

  • all cash deal of USD 42.95 million plus an earn-out consideration capped at USD 10 million.
  • focused on development and manufacturing of high potency APIs.
  • has 12 FDA approvals for innovator small molecule APIs and has a pipeline of development products.
  • has approvals from US, EU, Australia, Japan, Korea, Mexico regulatory agencies.
  • more than 50% of the HPAPIs are anti-cancer drugs.
  • had revenue of ~USD 18.3 million in FY15 (twelve months ending September 30).

Source: http://corporates.bseindia.com/xml-data/corpfiling/AttachLive/71DE284B_C1C3_4B42_895E_3D2FF433C1D7_153647.pdf

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Anyone looked at its NBFC business closely?

Their NIMs are at 8% driven by the 17% yield - my eyes popped out when I read the 17%

  1. Who are the real estate builders borrowing at 17%? Sounds pretty risky
  2. NPA levels are quite low now at <1%: with the 17% kind of lending, I am not sure how this will pan out
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in mumbai small-time builders are borrowing at 2.5 per cent per month or 30
per cent annually! However these are supposed to be short-term loans which
they hope to pay back when customers book flats. When this doesn’t happen
due to the slowdown, the builders get royally jacked.

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Mr. Ajay piramal’s interview post ash stevens qcquisition

http://www.thehindubusinessline.com/companies/piramal-eyes-more-mas-in-pharma-will-launch-new-funds-chairman-ajay-piramal/article9003831.ece

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Interview with AP. Video link https://www.youtube.com/watch?v=npUlgI1aCUg&feature=youtu.be

Piramal Enterprises Ltd. has agreed to invest 150 cr in Smaaash Entertainment Pvt. Ltd, a sports-based entertainment company co-owned by Sachin Tendulkar. http://smaaash.in/

Piramal SIG group

  • together with Dutch pension fund asset manager APG Asset Management jointly investing 900 cr in Essel Infrastructure Ltd’s solar platform across India.
  • invested 615.5 cr in two cement firms and buying NCDs of Sanghi Industries Ltd, worth 265.50 cr.
  • invested 350 cr in NCL Industries Ltd; Rs. 500 cr in Green Infra, an alternative energy company; and 425 crore in Navayuga Roads.
  • is in advanced talks to invest 800 cr in solar power producer ACME Solar.

Source: http://www.livemint.com/Companies/iJJYiMc8bfDxmPIJCV6PoN/Piramal-invests-Rs150-crore-in-Smaaash-Entertainment.html

PEL stands among the top providers of structured mezzanine funding in India. A series of transactions have been entered under Special Situation in FY2016. The total amount deployed from the Company’s balance sheet under this segment is 1,515 cr as on March 31, 2016.

Source: PEL AR FY16

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Piramal, Bain Capital join hands for distressed debt investing http://www.firstpost.com/business/piramal-bain-capital-join-hands-for-distressed-debt-investing-2972608.html

There is project of ARISTO in mulund west near Swapna Nagari, where Piramal will loose its entire amount invested, as the builder is fraud and have taken many investors, people who booked flats and contractors for a ride.

Talking about 17℅. Piramal Enterprises has lent to cement player NCL industries at 17℅.

Cheers.