Competition is getting intensified.
May be positive for Naukri.
Update
My rationale for investing in Info Edge is it is a PE FUND which has and is investing in good tech based unlisted companies. Moreover it’s Jockey Sanjeev has gone through all the struggle and knows in and out of invested businesses.
The promoter holding is steadily declining and some portion is sold even in this quarter . Is it a cause for concern ? One off sell off is understood as for some requirement but steady selling of promoter holding - is it indicator of promoter planning to exit at later stage or not ?
I was looking for a tracking position, however my interest in the company was due to competent and prudent cash flow oriented management which is pretty prudent in its acquisitions and doesnt acquire haphazardly. However if the mgmt shows signs of exiting , then it would be material change in my opinion and might need to revisit my original premise as the bet here is on the jockey . Pls guide
There could be two reasons for promoter selling: they want to diversify to reduce their risks or they see better investment opportunities elsewhere. If it’s former, there is nothing to worry about. If it’s later and those investment opportunities are also available to us, then we do need to reconsider our investment. Unfortunately, there is not enough information available to reach a conclusion, you will have to make up your own mind on this matter.
They have sold about 3% in last four years and still hold over 40%. I don’t think that level of selling justifies fear of complete exit.
A good read on how the smaller cities/towns are leading the way. They are expanding with ease into tier-3 and tier-4 towns where their operating costs are lower than metros.
I tried writing about Info edge. Please forgive me if i made any mistake or content is not upto the standard i am a newbie and tried to put things together
Hey Can anyone tell me how much of Infoedge’s valuation dependent on Zomato, as a % of CMP i.e. 2600
Zomato is valued at 600 rupees in Infoedge price of 2600
hi, The Corporate presentation november 2020 in infoedge.in has lot of data covering all aspects.
end of the day the restaurants and Zomato need each oter ,so they will comprromise in due cource
Sorry for the late revert but was just wondering if reducing promoter holding , would it not have possibility of misaligning owner mgmt interest as incentive to grow might get reduced due to reducing promoter holding. The whole business is structured as venture cap fund in my view and in this too , like financials , management quality is paramount and will be no 1 in my priority for investment in such type of businesses. While so far they have managed pretty well , but the concerns seems of reducing holding .
Promoter holding at 40 ( low) means their holding may already be well diversified ( am guessing), so if not diversification, then what could be the reason ?
Like you rightly pointed out , if they find investment opportunity elsewhere , then would it not divide management priority
Page promoters constantly reduced holding and the price ultimately fell as mgmt sees much in advance the potential of business while Bajaj finance promoter holding increased last year even at high prices . Latter indicates promoter conviction.
What could be the reason ?
@phreakv6 @Divyanshu_Bagga request your and other fellow members views
Disc - tracking position
Seems like this may be a new revenue stream for Info Edge. Though it is not clear at this point, the fund may take external investors. Or else it doesn’t make sense for Info Edge to set up a fund for its proprietary investments and take on additional regulatory scrutiny from SEBI.
You are right , Infoedge will eventually take on more outside investors in the Fund. earlier many PE/VC wanted to invest with infoedge but being listed did not find it easy. Via a fund Infoedge can manage all type of investors. Softbank can invest in such a fund as they trust Infoedge.
Indian Consumer internet startups are now more matured. In last 5 years many have taken hits , consolidated. Next 5 years should see larger amounts going in for profitable growth. Infoedge is a key matured player and has skills to pick good teams adn enter at low costs. In general they come in low levels and create value and bring in large players at high valuations. The scope of deals is increasing for Infoedge. On thier own balance sheet their hands may be tied but via a fund larger amounts can come in.
Zomato acquires Uber Eats.