Ambir report on financing to real estate developer may be one of reason of recent free fall of stock
I agree that based on the Amortization measure used, it is possible that periodical impairment is accounted for but still normally Goodwill is Amortized just like any other asset.
To quote an authority on this:
When one firm acquires another and the acquisition is accounted for with purchase accounting, the difference between the acquisition price and the book value of the acquired firm is called goodwill. It is amortized over 40 years, though the amortization is not tax deductible.
When firms acquire patents or copyrights from others, they are allowed to show these assets as intangible assets on the balance sheet. The amortization of these assets is usually tax deductible.
Surprisingly, in same report (first page) Ambit put PNB (Punjab National Bank) on top rank (Q1) but we all know what happen to PNB !! Hence, difficult to believe which report predict future correctly !!
Is more correction started after investors meet?
You mean Investors and not investigators?
I would prefer to believe in ajay piramal than come armchair analyst in
IMHO, Ambit reports are simply not reliable.
This looks like specific to real estate exposure. The difference between Piramal and others (as explained by Ajay Piramal recently) is - they are adequately ring fenced and even if a developer goes bust, they themselves can take over the project and complete it, as they have in-house execution capabilities. So Ambit putting them in Q4 quartile (last in the list) is just like a theoretical exercise without going into the company specifics.
If the rights issue is not fully subscribed ? will the promoters pitch in to make it fully subscribed ?
yes, that’s what AP has committed.
- Roe that they mention in financing is 25%in investor presentation when I take segment profit and compare it with capital employed I get roe of 12-13% am I missing something here
- pel is the first nbfc to adopt ind as and what I feel is that their provisioning policy is more stringent when compared to igaap they are upfront assuming 2% of loans will go bad and are making a provision which gives me a comfort even if there is a slowdown in real estate
Disclosure: invested in piramal
From Rights Issue Letter of Offer
Promoters own ~51.34% of the business. My understanding is that if Mr. Piramal is going to participate in rights issue in his personal capacity, family will have to shell out Rs 1000+ crores to participate fully or else their stake could be diluted.
Now since market price is below rights issue price, is it possible to withdraw our application. I have applied via ASBA?
They, in fact, have shown a big commitment by underwriting 90% of the issue. AP should be able to increase his shareholding in the company.
Many traders would have played for rights issue price arbitrage as well and should be selling in the market post applying for the rights issue.
The fall in share price with higher than average volume is beyond comprehension on this counter…
those who has applied for rights through ASBA…was the blocked amount released?
I dont see any entry in the account summary of the bank…but as per the prospectus march 8th should be the allotment of the share correct?
It says 15 days after issue close date which was Feb 26. This means 12th feb would be the date by which company would send the communication
Recent QIP participants also have the rights to subscribe to the rights issue.
listen at 5.40 on last qtr concall : Concall Qtr3
Discl: Not applied in Rights, now adding
As promised the company has submitted finalization of details of allotment of rights issue the details have been uploaded on NSE’ s site: https://www.nseindia.com/corporates/corporateHome.html?id=allAnnouncements
A consortium of Dalmia Bharat and the Bain Piramal Resurgence Fund emerged as the top bidder for Binani Cement
Check out File Name
‘Project Pandava’, an interesting choice