@v4value Arman has got one of most investor friendly, conservative and risk-addressing management I have seen. You write to them and see the speed of their response. As far as political risk to MFI business is concerned, it occupies investors mind-space (after SKS microfinance fiasco in AP) therefore it is prudent for any management to address it.
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The responsiveness I appreciate Gaurav. But the response seems to be playing to the gallery on near term pop concerns. The questions I ask above should be asked to the management. If they worry about elections in UP why are you doing business in other states - will they not have elections. Am curious about their response. Partially we investors are to be blamed for this, not doing second level thinking to their responses and not looking at the business 5 years outā¦
Interesting read on AP MFI crisis of 2010 and the steps taken by the Govt. -
- During election-time, there is competitive populism. I think it is a good strategy to be slightly more careful.
- Also, one would assume the per capita income in UP is less than Guj., Maharashtra and MP and so the repayment ability would be less and so, even the average loan size should be less for UP.
- In Guj., Maharashtra and MP, there is BJP govt. which is considered pro-business. Plus in general, these states are more pro-business than UP.
Vicky on your points my views brlow
- because every state has elections and every state has populism if this were to happen in any state markets will read across for all, so no mfi will be safe
- unit economics shoukd be similar and ticket size adjust
- I would be more worried about the opposition in these states. Typically opposition drives the govt to take these long term ecobomy negative decisions. Take prohibition in TN as an example.
Interview with Founder CEO
Incrementally, good to see they will move to 50% cashless collection and stay focussed on MFI business. See this as a unique market grab opportunity as peers struggle to transition to banking model like IDFC.
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Any idea who bought in the bulk deal? MS seem to be the brokers
Looks like Morgan stanley Asia (Singapore) took a position!!
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This is little too high growth, they are projecting. With rural market in distress, this will add to NPA later
Satin Creditcare Network Ltd has informed BSE that the following matters to be considered along with other items of agenda, for the approval at the upcoming meeting of the Board of Directors of the Company on June 30, 2016:
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Voluntarily delisting of shares of the Company from the Calcutta Stock Exchange.
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Reclassification of the authorised share capital and consentient alteration of memorandum of association. ā¦
What can be the probable impact of such delisting of shares ?
Nearly all of the regional exchanges are getting closed. The impact was only on those companies, which werenāt listed on any of the national exchanges i.e. BSE and NSE.
With this merger, the key concern that institutions had on possible conflict of interest on the part of promoter, will get addressed. With improved liquidity and structure cleaned up, see Satin get into institutional portfolios and get the valuation it deservesā¦
"Satin Creditcare Network has informed that the following matters to be considered along with other items of agenda, for the approval at the upcoming meeting of the Board of Directors of the Company on June 30, 2016: Voluntarily delisting of shares of the Company from the Calcutta Stock Exchange, Reclassification of the authorised share capital and consentient alteration of memorandum of association, Acquisition of entire shares of existing shareholders of Taraashna Services through share swap and consequential preferential issue and allotment of securities, and Further issue of securities."
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After Morgan stanley entry lot of instt n FII interet in satin.Process of rerating on.
names like Steadview Capital.GS,Warburg Pincus,SctBI MF,Icici ,etc
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Another bulk deal with VC MFI investor getting out and finanical investor (Morgan Stanley) coming in. Interesting addition in the board meet, setting up for more international investors.
Satin announces 250 cr equity raise.
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I was wondering if someone could share some information on Satinās dividend policy? It looks like they have never really declared any dividends, is that a cause of concerns. Has the management ever mentioned the reason for so?
Business is growing so fast it needs to keep raising money. Capital canāt be given out as div.
Simplistically
If you have 100 RS equity and earn money 20 RS you need to raise 40 RS to get to 160 RS ( assuming assets growing 60%). Why would you give dividend and raise that back?
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DSP Blacrock bought today in bulk deal. Great to see a micro cap flowering into a small cap 
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Date of AGM has been set for 30 July. Venue is Shriram centre, Mandi House, New Delhi. Anyone planning to attend?
No Tushar, wont make it. Would appreciate if you share your thoughts on the AGM if you are going. How management views teh business 3-5 years down the line. Thanks.