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Fih Mauritius Investments Ltd which is the investment vehicle of Fairfax was holding 20 percent of the 38 crore stocks. They have sold 2 crore stocks in the last few days.
Disclosure: I was invested in Iifl finance at 70 levels but sold around 425 in March this year. Been watching the stock going up in regret.
I am also invested in Fairfax financial stock
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Thank you for the quick reply!
Did you read this exchange filing by IIFL regarding the same? It has been clearly stated by IIFL that the impact due to this is minimal.
In fact the filing has been shared on this thread recently. Read that and if you still feel there is a considerable impact on IIFL, please elaborate, otherwise please deleted that post. It does not add any value and it is misleading.
IIFL has notified the exchanges on AIF’s rule’s impact on IIFL.
@Sambhav_Modi has already shared this document above.
Quoting the same here,
“Further all other AIF Investments of the Company aggregating to Rs. 909.81 crs as on current date does not include any downstream investments to which it has a loan or investments exposure currently or in the preceding twelve months. Thus, such Investments in the fund shall have no impact with regard to requirement of additional provisioning or capital adequacy of the Company. These Investments are carried at fair value basis the NAV published periodically by the AIF”
Quoted only the 2nd point from “materiality” perspective.
Kindly go through the document and assess yourself.
Disclosures: Invested & Biased
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Interesting. I didn’t go through the document (might have slipped from my mind to read it). Let me delete the comment then. I will comment again if needed, after I access this document
@Worldlywiseinvestors What do you think about this, Ishmohit, since you track IIFL so closely?
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IIFL’s Management Commentary (Some of the pointers)
Liquidity has been tight and interest rates have peaked. However, the impact on IIFL has not been as much. It is expected that the interest rate will start declining in the later part of CY24.
Toward AIF, IIFL has taken ~INR400m provisions in 3Q and it also did ~INR100m in provisions in 2Q (from the standalone entity).
The digital loans segment continues to see forward flows from the lower-ticket personal loans, which were done in partnership with fintechs in FY23.
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RBI asked to Stop New Gold Loan…
Wow RBI is really in a mood. This is huge, considering Gold loans short term nature and 1/3rd of its book, this is going to really hurt IIFL.
https://rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=57444
Certain material supervisory concerns were observed in the gold loan portfolio of the company, including serious deviations in assaying and certifying purity and net weight of the gold at the time of sanction of loans and at the time of auction upon default; breaches in Loan-to-Value ratio; significant disbursal and collection of loan amount in cash far in excess of the statutory limit; non-adherence to the standard auction process; and lack of transparency in charges being levied to customer accounts, etc.
Literally they pointing out concerns in every step of gold loan lifecycle followed by IIFL. This gonna take a while to recover.
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IIFL scheduled a meeting on today 8.30am(5th Mar) to discuss about gold issue, but I am not able to find any meeting link or number. Can anyone help me with this
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Even i’m not able to find the link to the conference call. Anybody?
At the end of the day everyone is expected to do their own due diligence and not blindly follow anyone’s investment advice. @Worldlywiseinvestors provides an invaluable service to countless number of retail investors and much if it is free too. When we benefit we have no problem then why complain when there’s a draw down? At the end of the day you and only you are responsible for your investment decisions.
Ps: Invested in IIFL
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