As mentioned in the Con Call, Piramal has Presentation for Pharma Day.
Not sure if they have conducted it privately or the recoding be available to all.
This 80+ page presentation gives very detailed info about Pharma division, which has been not getting enough attention due to ongoing DHFL takeover or NBFC related issues.
I think AIF is a way out for Real Estate Financing. I have been going through last three years con call of Edelweiss- which is also in the business of real estate financing.
Rasesh Shah (Edelweiss) has said many time, which is also echoed by PEL, that Real estate financing is a good business to be in, but how NPA/Stress assets is recognised does not suit for NBFC. For example, if the builder fails to pay the loans, the project can be taken over and executed successfully. However, as per Ind-AS norms, first they need to marked down (NPA) and take surgical actions. Overall, loss given default are very less as most of the money is recovered. However, it may take 2/3 years to recover the money and the NBFC has to go through NPA cycle causing huge strain the balance sheet.
Edelweiss is moving most of the real estate business to AIF and I can see PEL following same strategy.
Also, AIF gives management fees plus carry income on earning IRR beyond hurdle rate, so it is win win for PEL.
Piramal Pharma Day event (Registration link for the Zoom event in the PDF)
Friday,Feb 26, 2021
4:30 p.m. â 7:00 p.m.
Will the AIF be housed under Piramal Enterprises or under a promoter-owned entity? I couldnât understand this from the media reports.
I am also not sure if AIF is part of PEL. From 2020 Annual Report here are other subsidiaries of PEL. Based on it, I would assume that PEL will consolidate all of these into one asset management company (my assumption).
India Resurgence ARC Private Limited is a 50:50 joint venture between the Company and Bain Capital Credit India Investments (a company existing under the laws of the Republic of Mauritius). The share of loss of India Resurgence ARC Private Limited considered in consolidation for FY 2020 amounts to C 2.35 crores.
India Resurgence Asset Management Business Private Limited is a 50:50 joint venture between the Company and Bain Capital Credit India Investments (a company existing under the laws of the Republic of Mauritius). There has been no share of profit/loss recognised for India Resurgence Asset Management Business Private Limited during the FY 2020.
However, Piramal has received around $1 billion from selling Piramal Glass, so I wonât be surprised it they start AIF outside the purview of PEL.
Piramal pharma day event
New recruitments for key positions are happening thick and fast⌠signs of times to comeâŚThis guy is ex Amazon
The complete news is behind the paywall of ET prime. But it came in Economic times yesterday. see attached
Piramal news.pdf (2.4 MB)
SEBI | Macrotech Developers Limited . The Lodha group IPO public filing link.
2,500Cr Issue Size, 1,500Cr marked for debt reduction in FY22 (they had 18,622 Cr total debt - how much of 1.500Cr will come to Piramal needs to be seen? The document does not list out Piramal as a major debtor on pages marked 78/79 in PDF).
The Document has a good/decent writeup on âSECTION IV: ABOUT OUR COMPANY - INDUSTRY OVERVIEWâ.
Noticed Piramal (Capital & Housing Limited) not mentioned anywhere in document, although Piramal Realty is one of their competitors. Also mention on a private Trust called âPiramal Chaturbhuj Trustâ that seemed a bit strange, not sure how its related to the Lodha Group (anyone has insight on this?).
Piramal Chaturbhuj is the founder of the Piramal Group of companies and is an ancestor of Ajay Piramal. I think grand-father of great-grandfather. I am not sure. In the 1930s, he founded the Morarjee Mills laying the foundation for the Piramal group of companies.
Ajay Piramal had announced at in the last concall, that the groupâs exposure to Lodha would fall below Rs 2500 cr by March 2021. Quite possible that the target may have been exceeded.
disclosure: holding
TDH Reality LLP, a little known Kanpur-based company with a capital of just about âš1 lakh, is, according to papers filed with the court, acted as an intermediary that ended up having the rights over the insurance arm of the DHFL, the first non-banking finance company to face insolvency and bankruptcy proceedings.
The link between TDH and DHFLâs insurance business follows a complex trail of transactions that show that DHFL had funded entities
Preparations for DHFL acquisition is going along nicely. First key hirings and now financing in place for smooth takeover once NCLT approves PELs acquisition of DHFL.
Another fraud reported in CBI- although not new, but it is related to the retail accounts.
PEL to acquire Hemmo Pharma for Rs 775 cr upfront cash considerations
Yes acquisition of 100% shares.
Company has unique capabilities.
At the first glance they are paying 850+ cr for a company that has 85 cr revenue, which does seems to be on the higher side. But I am sure Piramalâs and Carlyle know more about valuation than what I can understand.
Hemmo Pharma has factory and R&D unit in Navi mumbai. I guess that the land iteself could be valued in 100 + cr, may be that is the reason for high price.
