Delist does not mean all share will be given to public. As I mention earlier Edelweiss still hold 13.75 Nuvama after delisting through:
Edel Finance Company: 5.23%
ECap Equities: 8.52%
9.8% will given to promoter
Public shareholder is only getting 18.80% holding and remaining 13.75 still hold by Edelweiss.
Total share of Nuvama is 3,50,64,294 and Mcap will be 3,50,64,294*980= 3436Cr.
Hii
I am giving some clarity as per my knowledge
1] nuvama wealth and investment limited is a subsidiary of nuvama wealth it is in the broking business
2] The above fair share entitlement ratio done by PwC take it as a reference it can differ
EFSL 94.3 crs shareholders will receive 1.05 crs shares [DO THE MATH] PAG stake 55.6% is promoter stake remaining is public
3] 980rs canât be the price as it is not out listed
4] WM equity is around 2100crs even if you take 16- 18% ROE PAT will be 340-370crs currently if go by the run rate it will be 275- 280crs [ low due to opex is high 25 -30%than normal] I think after q4 23 it will be normalized if we go by current PAT estimate 275 * 20PE = 5500 -5600crs market cap p/b= 2.6 if
we compare it with 360 alone WAM p/b = 5.4, pe = 24-25[ bcz of superior quality of businesses no securities business in it ]
nuwama wealth can get 3.5- 4 p/b or more as earning quality improves and management will look to demerger it close to 7500crs market cap
PLS DONT TAKE IT AS A BUY OR SELL RECOMMENDATION
THESE ARE MY PERSONAL VIEWS I COULD BE WRONG
Hi, I am also expecting 5000Cr+ Macp for Nuvama. Also, I would like to compare with existing listed company for wealth management. I could not find any pure wealth management company. I have compared with HDFC AMC and UTI Asset(its not fair comparison) and they have 60% OPM but I see the OPM of nuvama is ~20%. Why?
Also, they have 3.6% of debt to equity ratio. Why? donât understand.
Ref: https://www.bseindia.com/xml-data/corpfiling/AttachHis/5d020219-4fdf-462e-8cae-dd9be9dfb7f2.pdf
Hi @maulik_dadhania
you can compare it with 360 one WAM [ iifl wealth] division they have stable revenue and PAT {compare quality}.
in the wealth management industry, the PAT margin is between 0.18 - 0.20% of AUA
3.6 gearing is bcz in wealth management they also provide LAS, ESOP IPO financing {lending business}
and in securities [broking] business they provide margin trade financing
I can see two different Dec quarter result for nuvama. One is the image you posted and second one is in https://www.bseindia.com/xml-data/corpfiling/AttachHis/5d020219-4fdf-462e-8cae-dd9be9dfb7f2.pdf
Again they have mention 1322Cr revenue in Fy22: https://www.bseindia.com/xml-data/corpfiling/AttachLive/fe259daf-d3bc-4871-85b4-dc6a9a451c6f.pdf
I am not able to understand actual revenue.
Anybody knows that their GI business has been rebrandedâŚ
I couldnât find exchange filingâŚ
Anyone following the news regarding the income tax raids on the company? Apart from the original reporting there hasnât been any update.
Unfortunately I invested 2 percent of my portfolio into this stock just 1 or 2 days prior to this news. My motivation was to hold the stock for the value unlock due to the demerger of the wealth business and then sell the original stock but keep the wealth stock.
there is no news about it. It seems it happened for ARC business, somewhere I read raids are part of wider tax evasion searches for ARC business in general as well⌠not sure about this though.
Whats is the record date of the demerger and demerger ratio??
I had sent an email to them two weeks back , they replied stating its pending with NCLT for approval which would be heard this month , based on which they will communicate more on the record and the listing dates.
Have you asked on IT raid? Couldnât find any outcome of raid.
Listing plan is in Aug.
no new news, they able to push it by one year as usual
Rare interview by Rasesh Shah.
In interview, he is very optimistic in Edelweiss growth. I am listening same commentary in con call since 2020. Also they are not transparent to investor otherwise they can publish data on IT raid. This is pure trading stock.
Completely agree with you.
Though there have been some changes( in the loan book composition selling whole sales loan, listing the wealth business etc) it is still not at an inflection point⌠Management doesnât seem to have the fire in the belly to compete at the highest levels.
Pabrai funds have further added in last quarter from 6.8 to now 7%
