any idea on how many shares will a existing shareholder get
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Yeah I have the same question
This is not a demerger. Ashirvad is a subsidiary of Manappuram. Currently manappuram holds 98%. Now Ashirvad is going to raise fresh equity from open market worth of 1500 crores. This will be issued to new investors. So as a manappuram shareholder, you will not get ashirvad shares
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so indirectly ashirwad price will affect manappuram price
Yes, It has some effects. But not like if Ashirvad goes up, it does not necessarily mean Manappuram also goes up.
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Thank you. lets see how these 2-3 months shape out for manappuram. I am expecting good number this quarter from them
So Manappuram become holding company of Asirvad.Good listing of Asirvad finance in stock exchange will make Manappuram more cheaper, if Manappuram stock price remains stagnant at current price.If I am correct in my understanding, this is what leads to holding company discount.
Kindly correct me if I am wrong.
Holding company discount not straight forward in this case. Take other example like IDFC or Ujjivan, they are pureplay holding company, they do not have other business. In case of ujjivan, they hold ~75% in ujjivan bank, so if Ujjivan bank is trading at 10000 crores, you can easily say ujjivan holding company has shares worth 7500 crores and if Ujjivan(holding company) is trading at 5000 crores, you can easily saying there is a holding discount of 33%
But In case of manappuram, apart from owning Ashirvad they have other business. Now you don’t know the value of other business like gold, home, vehicle. Today manappuram is trading at 12000 crores. Assume post listing of Ashirvad, Ashirvad is valued at 5000 crores and manappuram holds 80% of Ashirvad. Now manappuram holds 4000 crores worth of Ashirvad.
Here come the individual minds, One guy might say other businesses of Manappuram are worth 8000 crores and the market is valuing Ashivard holding at 4000 crores, so he will say there is no holdco discount, Others might say other businesses of Manappuram are worth 10000 crores and the market is valuing Ashivard holding at just 2000 crores and he will say there is Holdco discount.
In short, yes, if Ashirvad’s price moves up and Manappuram’s price holds the same, this will lead to hold co discount. But figuring out the quantum of discount is in their individual’s eye
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is this IPO allowed to apply under the Shareholder category?
Mathew Cyriac is definitely an ace investor - He is ex-Blackstone but do keep in mind that all the investors are not correct all the time - it may turn out that it’s one of his loss-making bets. I will not buy it just because he bought it.
Disclosure(invested)
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ratings update
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“This agreement with JCB India opens up our network of branches to expand their dealership footprint across India and is an integral part of our efforts to diversify our portfolio offering by making a foray into new verticals to spur growth. It is indeed a major step to boost our business of construction equipment finance,” ”, said Mr V.P. Nandakumar, MD and CEO of Manappuram Finance.
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Can we get video or audio recording of this year AGM ?
From 16 to 130-150 in 10 Ten years.
No long term investor was trapped Return wise.
But Yeah from past few years no return to investor but a real investor calculate returns only for long period of time and to raise return in longer runs it needs only few sessions for a good company to create high peaks.
What i see is MFL has multiplied its earnings into almost 8 times in very short period now if it does more 3-4 times also in coming 10 years,thn market may reward it with more multiples.
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I disagree with your analysis of 10x in 10 Years. Hence, it is not a value trap today.
Past 10 years were very different for the gold loan companies. Their golden period of growth is in past now. I recommend reading few reports which were released 1-2 years back, they have explained in detail the phases this sector went through. Today, even opening of new branches is regulated and cant be done at a fast pace.
Technology has also improved which has made competition to enter the market much more easily than previous times. This business used to be heavily operational heavy and still it is but technology is making it little easier now.
We shouldn’t throw away the data which we get, this is one important thing we can learn from technical analysts. The data provides that Manappuram is losing market share, growth has slowed down, and on other hand NBFC like IIFL kept growing. Why? One has to figure these things out to understand whether such companies fit in their style of investing.
I don’t know whether it’s a value trap or not but past performance can’t be used to conclude it is not one.
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Definitely Many things changed business and industry wise.
business wise - It used to be a Gold loan NBFC But currently the company has diversified into many segments to balance the growth it used to to get from gold as core segment in past. It is not locking funds to secure market share by giving loans at lower yields and also trying to balance the portfolio & revenue by diversifying 50-50 gold & non gold asset portfolio. Definitely risk managemnt would play a crucial role going ahead as gold loan being the most secured but till now Manappuram has managed the asset quality fair and if it proves the same going ahead by achieving the same growth in non gold portfolio with low impairment cost thn the story may change.
im not saying the last years will repeat but the competition has disturbed the yields in gold segment which has happened many times in history (managemt has faced it multiple times) and the company instead of reducing yields much lower it has played some different strategy of becoming diversified NBFC instead of sitting idle and waiting for competition to get into equilibrium.
So what im concluding is no doubt industry is more competitive now but to overcome it manappuram also not sitting idle but trying many things to adapt new changes in the industry in more possible ways to achieve the earnings @ maximum. I’m repeating now risk is high in its new business model but if it manages well then market may reward it in future but growth in conso portfolio and revenue should come without doubt now the concern the investors having is if it successfully transforms the growth into profits.
Since 2015 itself the promoter has been saying that it could not depend on gold segment alone for future growth aspects and it has successfully diversified its AUM till now which many are doing same now in industry.
Disclosure : Personally invested so view may be biased.
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Very unfortunate my comment about the value trap was deleted. I have less time to write long posts but I share the same thoughts which @arjunbadola has shared. If we focus on the underlying rather than on Mr. Nandkumars interviews we will see there are issues.
I also feel companies like IIFL which are in major business areas like Mumbai have added advantages over others due to so many reasons and hence we are seeing Manappuram losing market share.
Microfinance yes they are making a mark but it is a riskier business than gold loans. Maybe in 10 years it will again grow 10x as someone suggested but anticipation should not be the basis of investing your money but facts
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Gold is currently trading near its historical peak, with Manappuram price close to its book value. The risk-reward ratio appears to favor the reward side. Manappuram has a history of having significant fluctuations, with 30% price swings being a common occurrence. It remains a preferred choice among traders in the stock market.Hence its always in ban
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