Has Wolfenson fully exited or is carlyle also exiting?
Seems sale overhang from these instl investors is gone resulting in higher price movement .
WCP Holding had sold 34.64 lac shares on 28th march on bse @325. Yes the overhang seems to have receded. Looking for the flag pattern target to be achieved at the annual results time.
BLACK ROCK INDIA EQ FUND MAURITIUS LTD and NORGES BANK - GOVERNMENT PENSION FUND GLOBAL have picked up stake from WCP @ 325⌠Both of them are known to be long term investors⌠Norges is one of the largest government funds in the worldâŚ
All Norwegians are theoretically millionaire (in their own currency) due to fund of government managed by Norges bank. Read a bit about it earlier somewhere and suddenly the mentioning of Norges bank reminded me.
http://www.reuters.com/article/2014/01/08/us-norway-millionaires-idUSBREA0710U20140108
Link: http://www.reuters.com/article/2014/01/08/us-norway-millionaires-idUSBREA0710U20140108
that was a nice article sir.thank uâŚ
long on repco?
that was a nice article sir.thank uâŚlong on repco?
I am among the youngest here, donât call me sir. Not long on Repco. Just the name of Norges Bank reminded me of the article, their funds are among few of the most stable global long term funds.
Anyone noticed this ?
A New Company Law has come into effect from 1 April. As per this Law, every company that issues debentures to create a debenture redemption reserve (DRR) account out of its profits. (All housing finance companies discussed in ValuePickr, Muthoot Capital will get hit ?)
The corpus of DRR should be at least 50% of the amount raised through debentures before redemption starts.This amount cannot be used for any purpose other than redeeming debentures maturing during the year.
I doubt if this would be implemented with retrospective effect. If this is implemented then I think it may be for the future borrowings. I am surprised as to how come there was no noise with respect to such a law coming into effect? This actually looks impractical enough to be implemented. The impact would also depend upon the borrowing profile of individual companies. With respect to Repco, borrowings via NHB re-finance constituted a higher percentage (this had been coming down gradually though), followed by banks financing (which banks categorised as priority sector lending). Therefore somebody like Repco may be less impacted. Would need to look into its borrowing profile in detail though. Also, not sure about the current contribution of NHB re-finance to its borrowings. Also, these companies would start exploring other fund raising options if the above is the case. Would be interesting to see the impact of this law on Canfin too. I think we would need to wait for more clarity to emerge on this news.
I doubt if this would be implemented with retrospective effect.
If this is implemented then I think it may be for the future borrowings.
I am surprised as to how come there was no noise with respect to such a law coming into effect? This actually looks impractical enough to be implemented.
The impact would also depend upon the borrowing profile of individual companies. With respect to Repco, borrowings via NHB re-finance constituted a higher percentage (this had been coming down gradually though), followed by banks financing (which banks categorised as priority sector lending). Therefore somebody like Repco may be less impacted.
Would need to look into its borrowing profile in detail though. Also, not sure about the current contribution of NHB re-finance to its borrowings. Also, these companies would start exploring other fund raising options if the above is the case.
Would be interesting to see the impact of this law on Canfin too.
I think we would need to wait for more clarity to emerge on this news.
Clarifications :
a. This rule existed previously also, for all companies (except NBFC) which raised Debentures
b. New Companies Law has just bought NBFCâs also under the ambit.
c. For all other companies (except NBFC), there was a requirement of 25%. New Law is lenient on NBFCâs - prescribing them to create 15% Reserve.
d. THE MOST IMPORTANT FACT - This will be a reserve created out of distributable profit and not Net Profit. So there will be no impact on EPS
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Profit and Loss is made up of two parts
a. Net profit for the year (used for calculation of EPS)
b. Profits to be distrbuted (used for dividend distribution)
Normally there is no gap between (a) and (b). But in this case, because of creation of a reserve, there will a gap to that extent. Will not impact EPS.
At best the money kept in reserve will earn lesser interest (it has to be kept in Fixed Deposit i.e. at say 9%) than the existing ROE of the company (say 30%) and hence lower profits that extent on the amount parked.
Block Deals on NSE & BSE of more than 11 lac shares today.
@Vivek Gautam
âChecked with a senior NHB official who was quite sanguine with co working & loan book.NHB maintains an onlinne DB of all household registries done in India & all HFCs N banks can check the quality of registration papers to avoid fraud like CIBIL.â
Is this NHB online registry accessible to everybody?
Hi all,
Appreciate if someone could clarify a rather technical ( but important) question:
Is there a difference in assigned risk weighting between loans to salaried and non salaried class?
Thanks
Bobby
So, far we have been making only provisions as what is required by the regulatory norm but it is a conscious decision of the management to increase it marginally, to take it up over a period of time. Most of the housing finance companies; they report an NPA figure of nil that means they make 100 percent provision for the doubtful and the bad assets.
Can someone pls explain the last part? A HFC reports NPA when it doesnât receiveinterest & principal payment for more than 90 days. So how is the NPA can they report NPA of zero by making 100% provision for doubtful debt?
As per my understanding, thats the difference between gross and net NPAs. Gross NPA is how many loans were defaulted.
On the other hand, Net NPA = Gross NPA - Provisions. So if a company makes provisions for a bad loan on, lets say, the 89th day, it may have gross NPAs but the net NPA will be zero. Pls correct me if I am wrong.
The Reserve Bank of India defines Net NPA as Net NPA = Gross NPA â (Balance in Interest Suspense account + DICGC/ECGC claims received and held pending adjustment + Part payment received and kept in suspense account + Total provisions held).
To simplify above, the main deduction to arrive from Gross NPA to net NPA is the provisions held. The amount for provisions is deducted from the profits a Bank makes, if profits are negative then the provisions are deducted from equity.
Thus it is not enough to just focus on the net NPA, the trend of gross NPA is very important too as there is only so much a Bank can provision before the equity base gets hit by bad loans.
Bobby
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Massive Bulk Deals of 1.1 Crore shares on NSE today @427.5
Most probably First Carlyle has got out of Repco (it was flashed on CNBC in the morning)
Yes, carlyle exited from Repco.
BS Reporter|Mumbai Jul 17, 2014
Last Updated at 07:16 PM IST
Carlyle exits from Repco Home Finance
First Carlyle Growth VI, the growth investment fund of private equity major Carlyle, has made a complete exit from Repco Home Finance.
First Carlyle Growth VI, the growth investment fund of private equity major Carlyle, has made a complete exit from Repco Home Finance. Through a bulk deal on Thursday, Carlyle has sold its entire 17.7% stake in Repco for a price of Rs 427.5/ share. The deal size is estimated at Rs 471 crore.
Carlye, which was holding about 11 million shares in Repco, is learnt to have achieved a return of 9x from its 6-year old investment. The buyers include DSP Blackrock, FT India Prima Fund, Jupiter India, Nomura India and SmallCapWorld Fund.
In 2008, Carlyle had invested about $28 million in Repco. Later, Carlyle made additional investments and raised its stake to 49.7%. Through Repcoâs IPO process, launched in march 2013, Carlyle had diluted a small portion of its stake while Carlyle had sold about 24% in secondary transactions to PE firms Wolfensohn Capital Partners and Creador.