Trend of interesting disclosures continue. Rectified disclosures, resignations.
I am looking at rating agencies for further cues.
Colending yield at 32% and company portfolio yield is 18%. Is there any other company with colending rate of 32%.
I think that might be due to their own portion only included in denominator. But any other company with similar disclosures will be interesting to compare.
Yep deleted the post above as i found the document you are refering to.
So yea in the 240 cr disbursed (including partner component) assunin ugto did 20% it is 48cr. 32 % is 16 cr. If u assume 48cr at 13% it is about 6cr and fees for originating of 1% = 2.4 cr and the interest differential of 4% on 240 cr = 9.6 cr over 3 to 5 years which needs to be npv’ed. It is roughly 15 cr. Npv. Approximately 30% for the first year seems fine (also note that the differential of 7 cr is the npv and realised as pnl now but for capital calculation as mentioned by management it is realised over the term of the loan). This is precisely the problem they had with the previous business model.
Management did this previously, thinking that showing higher P&L would give them a good P/E ratio and keep increasing the stock price. They could dilute at higher and higher prices to keep this going. What they have now realised is that the market is not giving them the benefit for this model. They are being forced to dilute at lower stock prices and this is the reason why they have changed the business model to do less of colending.
