Piramal Conf. call 
Update: Current portfolio to be unaffected [I am skeptical]. Confident to take advantage of opportunities [I am bullish on that]
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Hello everyone,
I have been an investor in PEL since 2011 and it is my largest holding. I also logged in yesterdayās investor call which I think was quite useful. Always good to directly hear from the management.
Iām in banking myself and it was good to hear about risk mitigation and early warning signals/monitoring put in place by the PEL team.
To be completely honest, I was a bit surprised with the extreme bullishness on the existing portfolio / future outlook presented by the management on the RE space. It is always good to have management that is confident in what they are doing but I heard a lot of āwe-know-it-allā / āall-risks-are-coveredā on the call which made me a bit nervous. It would have been useful if some caveats were provided by the management.
Having followed Mr. Ajay Piramal for few years, I am quite sure if he would have been on, the entire tone of the call would have different. As a shareholder, I obviously hope the best for the company. At the same time, I would prefer management to make its shareholders aware of the risks, however small they may be.
Ashish
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I have also been holding PEL since 2012 and I absolutely agree with you. I am wary of management who only have positive things to say about their businesses. Every business has risks and it is refreshing to see management who gives a balanced picture to the shareholders. But unfortunately these type of managements are few and far between.
Another thing that has been troubling me about Piramal is the role played by Mr. Ajay Piramal in the Tata controversy as someone alluded to earlier in this thread as well. Iām still holding onto it but Iām more cautious now.
after hearing the conference call i am not sure i am not getting the same impression that management is too much upbeat & not stating obvious risk
management is stating obvious risk that tier 1 unorganized chota mota builder will face cash crunch /will impact pricing for the builders whom they are going to do businesses with
but also telling why the shift is happening from chota to a reputed builder , pricing is not the only criteria ,quality,timelines of delivery
and than commercial finance and LRD which i dont understand how that relationship of 5+12 year for LRD , i am looking forward to some guidance on same
my perception from the call was that construction finance is going to be bigger than residential segment
and they already have the approval in place for most of the financing deal done
disclosure-holding and buying on every dips
regards
ACME Cleantech raises funds from Piramal and APG; foreign investors exit
Delhi-based ACME Cleantech Solutions Pvt. Ltd, which provides infrastructure services to the telecom sector, has raised Rs 500 crore ($73 million) from billionaire Ajay Piramal-controlled Piramal Enterprises Ltd and Dutch pension fund APG Asset Management NV.
The investment, with equal commitment from Piramal Enterprisesā Structured Finance Group and APG will be used to buy out French firm EDF Energies Nouvelle and Luxembourg-based EREN Renewable Energy, which held a 25% stake each in group company ACME Solar Energy Pvt Ltd, said Nikhil Dhingra, group director for finance at ACME.
EDF Energies, part of French utility major EDF, and EREN had picked up the stake in ACME Solar in 2013.
Dhinga said ACME will use bulk of the funds raised to give an exit to the foreign investors and deploy the remaining in ongoing projects and meet working capital requirements. The fresh debt funding has a tenor of five-and-a-half years and was closed in August, he added.
The Mint newspaper, which first reported the funding, said Piramal alone invested Rs 500 crore in the firm.
Piramal Enterprises and Dutch pension fund manager APG Asset Management had formed an alliance in 2014 to invest in rupee-denominated mezzanine instruments issued by Indian infrastructure companies with a target investment of $1 billion over three years.
The deal with ACME is the second in the renewable energy sector for the Piramal-APG alliance. In March this year, Piramal Enterprises and APG committed to invest Rs 900 crore in Essel Infrastructureās solar power platform.
Dhingra also said that the company could look at acquiring assets that have signed power purchase agreements and yet to start construction. He also said that, after the buyback, ACME Solar is fully owned by promoter Manoj Kumar Upadhyay and that this gives larger headroom for dilution of stake if required.
As of September, ACME had a total portfolio of around 1.5 gigawatts of solar energy projects. It aims to ramp up capacity to 7.5 GW by 2019, its website shows.
Dhingra also said that ACME Cleantech plans to tap into investors for debt funding to refinance some long-term debentures as interest rates fall. It may also consider a public issue to raise equity capital in 2017-18.
He added that the company can grow up to 15-20% year-on-year with internal accruals and would require additional funding to grow at a faster pace. It expects revenue of Rs 2,700 for the year through March
2017.
Piramal Fund to lend Rs360 crore for Ozoneās Urbana township project
Structured debt transaction will help Ozone give a full exit to Urban Infrastructure Venture Capital
Piramal invests $110 mn more in Adarsh Developers
Piramal Fund Management, the real estate-focused investment arm of Piramal Enterprises Ltd, has invested Rs 750 crore (about $110 million) across a bunch of projects of Bangalore-based Adarsh Developers.The developer will use a major portion of the proceedsāRs 550 croreāto refinance existing loans and the rest for working capital requirements, the company said in a statement.
The statement said that the funding facility has been given against seven projects. Of these, four are
nearing completion, two are under construction and one is planned. The transaction is structured in two
layers with the structured debt part consisting of Rs 170 crore. The remaining is in the form of construction finance.
With this investment, Piramalās total exposure to the developer stands at Rs 1,000 crore. Meanwhile, the investment firm said in a separate statement its aggregate investments from the proprietary book of Piramal Enterprises in South India, including Chennai and Hyderabad, has surpassed Rs 10,000 crore.
Apart from Adarsh Developers, it has invested Rs 1,050 crore in another Bangalore developer Ozone Group.Khushru Jijina, managing director at Piramal Fund Management, said the firm will extend its partnerships in South India by underwriting multi-city portfolios with existing and new Tier 1 developers.
Piramal Fundās exposure in South India extends across both residential and commercial real estate. It has innovative funding products in its kitty including a recently launched flexible Lease Rental Discounting product as well as customised funding for plotted land developments.
The statement said that the first phase of the Piramal Preferred Partner programme, under which a Rs 15,000 crore line of credit was extended to select developments, has been 50% used and that the second phase will target selected developers in South India.
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Here is the concall transcript on impact of demonetisation
Realty price correction may be less than 10%: Piramal Fund MD
http://www.thehindubusinessline.com/news/real-estate/piramal-fund-realty-price/article9402409.ece
BLOCK DEALS on NSE:
Qty: 75,100 shares, Deal Price: 1715.00, Value : 12.88 Crores on Dec. 09th !!!
December 13: The pharmaceutical major Piramal Enterprises is focusing majorly on finding a cure for Alzheimerās, says Swati Piramal, Vice Chairperson.
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70% of Companyās Revenues coming from outside the Country.
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Contract, Research and Manufacturing - Top 10 CRAMS company in the world.
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Collaborated with the Top 7 Pharma Brands for Research.
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Focus on Biotechnology and Manufacturing Drugs to be sold in 100+ countries.
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Ranked 3rd Among the Top Global Players in manufacturing Anesthesia.
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Ventured into Large Acquisitions with Number of Brands.
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Have made acquisitions on the Contract Research side - Coldstream Laboratories in Kentucky which makes injections and research products.
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In Germany - Molecular Imaging Tracer approved in US, Japan and Korea, Europe. Making great progress.
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Search for new Drugs in cure for Alzheimerās disease.
Healthcare Space :::
Major Focus on Inorganic and Organic growth.
Aim to renew older acquisitions.
Nutrition space :::
Piramal Foundation treated as arm of our business. Over 5000 people in field. We look at Impact factors and running things efficiently just like other parts of our business.
Mobile Healthcare services in AP and Assam - Virtually touch every village.
Our foundation affects 40 crore people in India.
Clinical Nutrition -
We have noticed both in Assam and AP, where we look at every village the rise of diabetics has been Astronomical in recent times in rural areas.
Experienced remarkable success in Gestational diabetes.
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BLOCK DEALS on NSE:
Qty: 72,920 shares, Deal Price: 1,731.35, Value : 12.63 Crores - Dec. 14th !!!
Piramal Fund Management invests Rs 700 crore in two Mumbai commercial projects
Piramal Fund Management, the financial services arm of Ajay Piramal-led Piramal Group, has deployed Rs 700 crore collectively against two commercial properties, Reliable Tech Park and Empire Towers in suburban Mumbai.
Looks like this has spooked the Market - Swati A. Piramal selling 0.12% shares of Piramal Enterprises Ltd.
December 07, 2016 - 2,00,000 shares.
Management Response:
Response from PEL with regards to promoter selling :
Dear Sir,
Thanks for your mail. The response to your query is as under:
The 2 transfers from Piramal Corporate Services Limited (PCSL) are consequent to exercise of ESOPs (PCSL is the Corporate Trustee of the Piramal Welfare Trust).
The transfer from Piramal Employees Ltd Senior Employee Welfare Trust is consequent to exercise of ESOPs.
The transfer from Dr. Swati Piramal is an off market transaction on account of Gift.
Trust this clarifies.
In case of any further query, please do not hesitate to contact us. Thanks.
Thank you for the update, Aravind!
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Looks like almost all NBFC stocks are getting hammered and out of flavor after Govtās demonetization with the fear of low collection efficiency and poor loan disbursements.
PEL with exposure to Real Estate lending, stock price is getting pulled down along with other NBFC stocks.
Till we see PELās loan growth is good and NPAās are < 1%, there should not be fear in this counter.
Sudden jerks in Market and mood swings are temporary of nature.
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Construction finance juggernaut continues
Disc - invested