when can we expect the listing of Nuvama? 60 days?
Any thesis ? EFSL dropping so much and hitting the upper circuit on consecutive days? Also, do any thoughts on the Nuvama listing price? I had no idea demergers can be this complex from a stock price measurement perspective.
Mohnish Pabrai increased his stake by another 2.07% in Edelweiss. He bought shares from open market on 6 June 2023 which indicates he still has conviction in this bet.
How Mohnish Pabrai is able to buy 2% stake in Open Mkt when the stock is on continuous upper circuit. Just wondering.
Does anyone have access to this article/report? If so, please post the content or screenshot.
I think because MP started buying from Open market share was on upper circuit.
Got this reply from Open AI:
here is a summary of the Smartkarma report “Retail Credit Business Is Now Scaling Up”:
The report also notes that the rest of Edelweiss’ businesses are also growing strongly. In particular, the investment banking, wealth management, and asset management businesses are all performing well.
Overall, the report is positive on Edelweiss’ prospects. The company is well-positioned to benefit from the growth of the Indian financial services industry.
I found this podcast on Mohnish Pabrai’s YT channel. He was hosted by Radhika Gupta. He talks briefly about Edelweiss @ 48:42.
The feeling that I got is he probably does not care about the lending business given his view on leveraged businesses (he has spoken at length about this in the past). Only focus for him is the wealth and asset management part of the business.
Disc: Not invested
I was under the same impression that pabrai thinks the value was in wealth business and other business lines within edelweiss.
However, if you notice the filings he bought 2 percent of edelweiss additionally after the record date for the nuvama consideration, do he won’t get the nuvama stocks for those 2 percent. And he was off by 1 or 2 days of the record date so it was not like a regular but purchase he made without worrying about timing the event.
I have only been following his videos on YouTube for last 2-3 years. Having been burnt by following his investments (ali baba, seritage growth, edelweiss) I have realized it is a bad decision on my part to try to follow someone into an investment.
If you see 2/3 years down the line (and still believes what management is saying), they would have significantly reduced their exposure to balance sheet based lending business. Wholesale would have 2-3K, HFC and other lending business will be growing based on co-lending model. So 2/3 years Edelweiss could be much different than what it looks today.
So one could view Edelweiss as bunch of Financial services business which can grow without loading on Balance sheet.
Pabrai has got huge success in following the same template in Fiat-Chrylser. He bought it and they spin-off Ferrai, which has been roaring and doing exceptionally well after separating. Hopefully Nuvama follow similar path after separating.
Edelweiss to Mohnish Pabrai is like (I guess) a Spawner. Please watch this video of his Spawner theory.
Thanks but he has mostly explained other companies not much about Edelweiss
He does not like talking about his current portfolio, reserves only past bets for public discussions. If Edelweiss turns out to be a spawner, I’m sure down the line, he will discuss it.
Has anyone come across any sum of parts valuation for Edelweiss?
This contains all the info to make sum of parts - make your own assessment of each biz valuation as this framework is by mgmt
I would consider only AMC, NUWAMA, AMC, and Life Insurance businesses to have +ve values (treat credit businesses as 0). Would be around ~Rs 90 / share before Nuwama spin off
Disc: Have ~3% of my portfolio at ~65/sh cost before spinoff
Thank you, Srini for sharing. Their alternative asset management business is also worth looking at (Infra and Spl Situations vertical).
Question: if I buy now, I am not participating in the Nuwama story, right?
Yes you are (EDEL FIN still holds ~20% in NUWAMA). If your conviction is mainly in NUWAMA, you can by it from mid july. They demerged to have it independantly valued.
Thanks a lot again. I think it will be 14% post demerger
does anyone have a sense on what is the breakdown of the sectoral exposure for their NBFC book?
Today i received this mail from Nuvama, can any one guide about expected listing price and market cap valued ?
It’s eps is 100 ,so taking 15-20x pe it could list around 1500-2000 price .
