Investing Basics - Feel free to ask the most basic questions

How do block deals work? Is there a separate platform or process for it? Publicly available information has only those shareholders with > 1% stake so how does one figure out which other shareholders have a substantial (but < 1%) holding to make a deal with. What makes a transaction a block deal? Thank you

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Sir,
Shareholders transacting more than 5 lac shares are eligible for block deal window. Block deals happen on exchanges in specific times, usually at pre negotiated prices. Dealers of institutions call other institutions if they have a chunk of shares and are willing to sell. There are many investment bankers offering this service. They have an informal network of who wants to buy and sell. The deal takes few days to complete and is formalised at exchange.

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Hello,
I was looking through Dr Agarwal eye Hospital and reading through article ,the following article claims the company raised 270 crore from temasek holdings in 2019 but the size of the balance sheet is still 141 crore (total assets) in 2020.Also how did they raise that amount.

It wasn’t done in the listed entity, their chain also has unlisted cos whose size is bigger than the listed arm. Temasek invested in the unlisted company.

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Does anyone know if there is any lock-in period for sticks obtained via IPO by an NRE HNI investor (who can invest more than a retail investor limit of Rs. 2L)?
Is this info available anywhere to check (SEBI or exchange sites)?

Sometime back I inquired summary of USA market closing.
Recently Moneycontrol starts a separate tab for the US market (Nasdaq, Dow and S&P 500) top gainer, loser etc. I found this very useful hence sharing. Important to study the mother market irrespective of investment there.

Incase of loans provided by Banks/NBFC for housing, How loan for a person who is buying a house and developer loan differs from Bank/NBFC perspective? Does moratorium provided to both cases? Does repayment always like EMI or keep on paying interest and pay principle as we wish(like NBFC gold loans)

@Garuna These shares will be traded as separate script until the full amount is called on. Its up to board to decide on when to call for payment, until then it will be separate script

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Sir,
As a Banker in my previous stint, I have a few perspectives on this issue :

Provision:/Interest Rates: Housing Loans are favourably viewed as RBI mandates lower provisions. While developer loans are limited by quantum(5% of NW) and attract higher provisions (Real-estate Exposure). Interest rates are higher on developer loans and very low on Home Loans. Home loans have also benefit of being included in priority sector lending(if below 35/25 lacs in urban/rural areas).

Tenure/ Payment options: Housing Loans are typically 15-25 years. Bank prefer this book as likelihood of prepayment is very less. Housing Loans have fixed EMI. Developer Loans are project loans where payment is usually due in 3-5 years and payment is based on advances from customers and project milestones.

Moratorium for developers is upto Project start i.e. getting plan approved/ project launch. For Home loans EMI starts based on pre determined date/ completion of house whichever is earlier. Interest is charged in both the cases on amount drawn.

Hope it is clear. All the best.

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We know that LTCG are exempt from tax till Rs. 1 lac for shares/mutual funds.

How long is the LTCG period ? Is it 365 days exact?

E.g. if my purchase date is 30 Aug 2021 , what would be the date when it becomes eligible for LTCG?

30 Aug 2022 (not 29 Aug 2022).

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Query about Cash Flows:

“Profit from operations” is increasing every year but “Cash from Operating Activity” is varying because cash flows under “Inventory” and “Changes in Working Capital” is erratic.

The company is coming up with new stores, but I think those expenses could be under “Investing Activity”.

What do you make out of this? Is this good, ugly or bad?

Working Capital supports day-to-day operations and must be under “Cash from Operating Activity”. However, Capex (Fixed Asset) benefits the business for more than an operating cycle (financial year) and goes under “Investing Activity”.

Q: Can a financial institution classify a 0 dpd loan account as stage 2 and provide provisions when they feel that account may default in future

@Patel_Bhai since you are talking about stores, mostly these are leased properties, so there are some store setup cost like Rakes, furtitures, computers, lighting, painting. These will fall under investing in cashflow. Inventories fall under operating in cashflow.

Its normal for retail business to have negative operating cashflow if they adding good amount of new stores.

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Sir,
Usually it doesn’t happen but in rare circumstances it is done. Example in Industrial Loans when DOCC and EMI scheduled but there are no operational cash flows. This is a rare occurrence.
Hope it is clear. All the best.

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Can anybody advise how to download OEM wise registration data from the Vaahan portal? I have seen some articles / posts suggesting they accessed OEM data from Vaahan but haven’t been able to figure out how.

Edit : Never mind, got it thanks to @sahil_vi - VAHAN SEWA| DASHBOARD

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Sir,
Single line answer would be lack of sales growing. For HDFC life it would be high pe multiple. Every stock has a story. Please read respective thread to understand.
All the Best.

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Is there any better way to reach out to company for any query so I could understand company better? I was trying to reach out to following company but no luck in getting response. Appreciate your input.

Knowledge Marine & Engineering Works Ltd – compliance@kmew.in, info@kmew.in

Kotyark Industries Ltd – info@kotyark.com, “kipl7722@gmail.com” <kipl7722@gmail.com>

Note: I have collected email from respective company Annual letter.

Knowledge - See the investor presentation - names, email ids (different than above) and phone numbers are given. Call them up if emails are not responded.

Kotyark - This company is in SME segment, registered office seems to be a residential address. See the website, call center number is given. Call them up, if you are living in the same city, try to visit, else forget it.

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