If he has already overallocated to the stock, it may be impossible to buy more as it will increase business risk. Also one may not always have cash when markets are falling for months.
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You mentioned that all debt holders are happy to support the company as the assets are good. With the current evidence, this is totally unfounded and a mere guess. May be debt holders are as screwed up as equity holders and they do not really have any option than to wait and see how much hair cut they would eventually take. And equity holder will merely take the scraps of whatâs left.
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@dj123 with due respect to you I being look stupid in short term even sometimes I want not to be so 
during this meltdown i added more more Your Suggestion are little delayed as price recently jump whooping 32% . But talking less about price movement . I follow the advice of VP that you need to see the potential for next 2 to 3 Quarters for any stock from this levels of Price . THIS removes my anchoring from Price at which I bought . This is mine second most highest allocation and saturated the limit of investment in this sector
To extent Yes they donât have any other options left Even RBI donât want to screw more to this Economy and canât offord this big chunk of Mess . Wadhawan knows this and putting hard efforts to keep this afloat he is in position what Mohnish Prabai said Pure DHANDO ⌠Nothing to lose by Promotors but More Upside Potential. On lighter note He love to have Apple from sinking Ship ( which in my opinion NOT ) as apples keep away the DoctorsâŚ
i am sharing my check list of management and growth ( It is not necessarily one should agree with me contradictory views welcome)
if one is interest one has to complete the following to check the business charterstics i had fiiled half and deliberately removed other half if one is interested one should add answer to the second list ( THIS IS HOME WORK)
HOME WORK SHEET
source of check list is : Checklist â Hurricane Capital
Regards
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its really hard to believe thisâŚ
this is because i have known two of my friends who have âmanagedâ to increased their loan limits through dhfl agents. This surely is not a good sign of âdiligenceâ done by the bank.
i am using quite polite terms, but i hope u get the point.
while i am a ex-investor of dhfl and really donot suffer from the âownershio biasâ now, i really understand my folly in hindsight for holding such a company and not selling it inspite of so many red flags.
The only solace now is that in this economic slowdown, dhflâs colapse is too huge a risk and it will have a domino effect on banks, thats the only fact working in Wadhwanâs favour.
i remember when Kapil gave his interview, he also mentioned his intentions of âpassing on the batonâ to someone else.
why such decision never came when his stock traded at 600 ? i mean, he could have retired richerâŚ
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75% of bond holders under each series (in the registar as on 26th July) has to send a written consent to catalyst trusteeship limited, else it will be taken as non acceptance. Retail participants likely to be show no participance in such things, hence resolution plan likely to be hampered. Better to stay away from all listed NCDs⌠I agree DHFL-NL series is liquid and attractively priced, but highly risky. Kindly correct me if iâm wrong
Iâm trying to seek more information from Catalyst on this matter, will keep everyone posted
Disc: Invested in NCDs small quantities
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Thanks for the update.
But written consent to what? Negotiation? Haircut?
Letter-by-CTL-to-Debture-Holders-dt.-05.08.2019âŚpdf (321.9 KB)
Kindly refer to the CTL notification,
Even Iâve huge quantities of NL Series NCDs, not sure how to proceed
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DHFL promoters offer encumbrance on entire holding to Union Bank
The company said the encumbrance is for the purpose of collateral until implementation of its resolution plan. The encumbrance will later be converted into a pledge.
The latest reply by company to BSE.Bu they made GOL MOL JAWAB not directly addressing the subject of query raised by the Exchange
DHFL is now classified as an SMA 2 (special mention account 2) exposure, meaning loans where the payment of interest is delayed for more than 60 days but less than 90 days. That means the account is still not classified as nonperforming.
What this effect on the DHFL . They can start lending shortly but the hypothication to new account may be in the name of the landers .they can charge small margin money ntll the fresh debt is paid . This is new kind or arrangement i havenât found parallel example . This happens because they are financial institution NBFC ⌠in the article they mentioned ," The Reserve Bank of India (RBI), however, must green-light the plan since DHFL is a financial institution."
lesson learnt : Make it so big that everyone comes together to save u in the name of public interest.
Non linearity of the income : this is really amazing .suppose one bear cost 10 Rs How much will be the cost of 100can of bear the answer most folks give .supid it is KG maths It will be 1000 Rs .Now the two cases
case 1 ; the demand is regular the buyer can insists the price to get lower he can offer the price 8 rs / can and close the deal at 800 rs .This is pretty practcle and we most of time do that .
now
case 2
The time is is around 9.30 . the shops will close at 1000 PM and you have a party and short of 100 cans when you went to store to buy .But the store person tell you hey i can only give you 4 No as this is the limit per person .But if you can pay me 15 rs i can arrange . so that fellow may either not buy or end up buyng at 1500Rs .
so the difference is 700 between two cases . in real world the business operate in these situations but we made several models which mostly work on linear models .certainly hey are not depicting the real picture .So one must consider non-linerity while making the predictions or during the valuation of the companies
i may be wrong please share your views as i am invested so my views can be biased.
regards
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news share
As per the proposed resolution plan, the liabilities includes public deposits and public NCDs up to Rs 10 lakh, non-retail NCDs and term loans from banks. These funds were used to generate retail loans and pass through certificates worth over Rs 34,000 crore. The non-retail NCDs have been split into two, where NCDs worth Rs 2,599 crore would be repaid over 10 years at 0 percent interest, while NCDs worth 12,198 crore would be repaid over the same time horizon at 8.5 % rate of interest
News snippetâŚ
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Hope you have less than Rs 10 lakh worth of NCDs. If more, you can think of getting below that level. Need to understand the terms in detail of course, assuming there will be such a resolution soon.
The banks are going to take the maximum pain, it looks like. And the shareholders, of course, should logically get wiped out, but I doubt they will completely.
update
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Has anyone heard back from DHFL regarding receiving interest and principal of their NCDs? Mine were supposed to mature in Sep but yet to hear any updates on the same.
Some good news coming up, hopefully pans out well for Equity Investors
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Looking same info ⌠Hard lesson not to invest in NCD and even make doubts of banks FD as well ⌠I think we have to keep money in Gold or hard assets . Not trusting Fiat currency any more ⌠any surplus to be invested in hard assets or trading - No investment in stocks or NCD or FD - literally no paper assets âŚ
As per this draft plan, all public deposit post October 31 are restructured with 0 interest for 10 years.so you may get your principle post 10 years. What a joke.
In this plan,Banks atleast convert their debt to equity and others still get their 8.5 % interest ECBs and even NCDs but retail investor money is gone. Why ? He was not on the table for negotiations.
Not sure what is the status of this plan although new ceo ex sbi officer has been appointed. He will oversee the resolution.
If law process was easier in india, this would have been a class action lawsuit from retail investors
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