One news seems to be missed altogether is the appointment of head of consumer finance.
Jairam Sridharam (ex CFO Axis Bank) seems to be a good at TECHNOLOGY.
Interesting to see how this evolves.
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Hi
My understanding is that PE wants to build a healthy retail loan book. Currently, the loan book is skewed towards corporates esp Real Estate sector. Hence Jairam was recruited as he has done a similar transformation at Axis by building a large consumer business.
Hello,
I want to apply for the rights issue through asba route. I called link intime and they said that I need to submit caf at the home branch. When I took it to the home branch of sbi, they said we have no such facility.
Experienced members please guide as to where I need to submit the caf for the asba route.
Thanks
One of the SBI branches in your city would be accepting forms. You may need to go there and drop the form. Alternatively, please request your home branch to send your form to the designated branch. Thanks!
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Do I need to have the account with icicidirect to apply online? Can you please share the link.
You need to have account with them. Then only they will show your rights entitlement based on shares available in your account as on 31 Dec 2019.
Piralmal has employed a company to help shareholders fill right issue. You should speak to them. This is their only job, I hope they will be able to help you. Please send a message to me and I will provide their contact to you. I donât want to post their information on public forum.
Puneet
+91 9900606229
Hi All,
Here are public details for the organisation who is tasked to help shareholders to apply Piramalâs right issue. Please feel free to mail or call them.
Phone -8879673001
Puneet
9900606229
PEL has decided to sell health analytics and insights business for $950M (2.3x gain in 7 years) to further strengthen the balance sheet (link)
Any comments on this from experts?
Discl: Invested
AP was saying this will create value for shareholdersâŚI dont know howâŚ
Note that the calculation will be more complicated than this because a lot of investments were made into DRG (or the Information Management segment), more than profits made.
As such $635 milllion in May 2012 (~ âš 3,400 cr at then fx rates) was invested, and current capital employed for this segment, is âš5,300 crores ( ~ $740 million), accumulated profits have been thin (based on segment results shared). Thus more capital was added to this business over this time frame. The time period is more than 7.7 years.
Thus annualized returns would be lower.
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Piramal is struggling because of real estate slowdown . 2 Rights issue in 2 years , exiting of shriram group at cheap valuations & exiting of healthcare analytics(valuation looks to be decent), all points to stress in his loan portfolio & is desperately in need of fresh capital.
Also the money raised from banks in the last few quarters are at a higher interest rate even though the interest rate in india was falling .
I havent yet applied for rights issue & are still in 2 minds whether to apply or not
Disc: 12% of my portfolio
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Isnât it strange that he eventually sold off good businesses DRG (ideally should have been scaled), Shriram group companies and is left with real estate financing business only which can be as commoditized as it can get.
In hindsight what if he had focused on Pharma and scaled that business.
DRG has been a drag on both top and bottomline and Piramal has been considering selling it off for the last three years after one more attempt to scale it up. He admitted to this much during the AGM much before the IL&FS/DHFL crisis caused financial companiesâ stock pries to melt. Now one has to wait for value unlocking in the companyâs pharma business which is expected in the next few months.
disclosure: holding and applied for double my entitlements in the rights issue
shiv kumar
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Poor due diligence when bought or management incompetence to run it profitably. Such businesses(consulting and analytics) are inherently good profitable businesses.
Isnât it a case of what we call Reinvestment risk when you keep selling businesses to book profits to buy something cheaper. Sooner than later you are likely to get caught on wrong foot.
No wonder Berkshire donât want to sell their businesses ever.
Looks like Piramal is planning to raise more money by selling minority stake in pharma entity.
Anybody have an idea how much of Piramals loans are stuck in unsold or incomplete real estate property ? it seems heâs trying to put down fire in his financing business.
total money raised in last 2 years : ~16300 cr + deals in progress
rights issue 2018 : 2000 cr
rights issue 2019: 5400cr
shriram transport sale : 2300cr
data analytics group: ~6500cr
shriram investment (shriram capital) : looking for an exit
piramal pharma entity: looking to sell minority stake
Piramal Management now returning back to quite comfortable Zone.
Slide aimed to bring down Debt Equity Ratio with Right and Prefential itself.
Now Raising around 7000 Crs through selling Helthcare Insight & Analytics Business will further strengthen itâs Balance Sheet.
Now tunnel seem to be over for PEL with New Lights
