Agree with poddy’s response.
completely agree ,it can be deduced that promoters intention are good
And clarification filed by piramal as sought by sebi. Hope something cooking up.
adb8d915-ef1f-4655-9c02-611e91f28bde.pdf (224.4 KB)
Disc. Invested in very small qty.
Q2Fy18 results… Consistently delivering excellent set of numbers…
Excellent results. One of the only NBFC which hasn’t reported stagnation/stress in developer finance book. The NPA’s are also managed well. Hope the NPA’s don’t show post seasoning of the book.
Income tax at 491 cr. i.e. 38.6% Why it is so HIGH? Last year figures are not comparable as the tax outgo was very less compared to this year. Can someone please explain? Corporate tax . isn’t it 30%?
So does this mean that they have paid less tax in the past? and now paying more to adust the differed tax. Also, in the 2nd Half - is the same tax rate 35% to 40% expected?
Some more slides from investor presentation
Interestingly enough, it is still available at historical PE of 35 for a company having sales CAGR of 29% and profit CAGR of 92%!!
Piramal today filed with SEBI their draft letter of offer for upcoming rights issue. Issue price is decided as Rs.2380 and issue size will be Rs 2000 Cr. This means they are planning to issue around 84 Lac shares. As per AR 2016-17, till date they have issued 17.25 Crore shares. This means the ratio would be roughly 1 share for every 20 shares held in a company. If so, that would bring 5% dilution to the equity capital due to rights issue.
QIP of Rs. 5000 Cr would bring in dilution of another 10% after conversion of all CCDs whenever that happens. So current fund raising activity would dilute the equity by around 15%.
It seems market is punishing Piramal stock price for the once in a lifetime equity dilution. But it is missing out on the profit generating potential of the additional capital, more so with AP’s excellent capital allocation skills. I believe this compounding machine will accelerate further with housing finance arm providing the necessary boost. The icing on the cake will be long awaited demerger of financial and pharma business sometimes in 2019 unlocking huge value for all stakeholders.
Excellent observation and summary of current situation in PEL.
Plus as an NBFC they can generate additional debt capital which can 2x-3x at least on this additional equity base.
Total dilution is not 7000 Cr + 2000 Cr.
It’s Rs. 5000 Cr + 2000 Cr.
So its a 15% dilution of equity, not 20%
Will minority shareholding get to participate in the rights issue?
Absolutely. It is not QIP. All existing shareholders as on record date date will right to participate. In fact you can sell that right free or for a fee to someone else who want to participate.
Thanks. Now corrected.
Assuming the Rights issue is 1 share for every 20 shares held, what happens to someone who has 19 shares or 39 shares. For how many shares does he have right to ?
When can we expect the Record date and also the date for bidding the rights issue ? Reason being: need to arrange the fund based on the dates :).
Global awards continue to pour in at Piramal.
If anyone was on the concall today please can you post the highlights…Thanks
I have below questions related to Piramal enterprises and trust me these are very tough questions for me
- @kamleshpatel how can we sell or buy the rights?
- Piramal issued qip and they are compulsory convertible debentures . How and where can I buy this CCB of Piramal.
Can someone share conference call transcript for the q2 results