can throw some light on veefin strategy. latest one in media not clear though
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except the last acquistion media direct marketing White Rivers media
which is a good firm,others are in sync with their vision and stated objectives
( trade finance,tax,tech,AI ,Consulting arm Nityo infotech) all looks ok
others have logic. White Rivers media they have to state clearly how it will benefit them.
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Veefin:
- there are no of acquistions relevant recent one irrelevant unless they clarify
- there are no fresh orders update more than last one year
- are their products selling ( original Veefin SCF)?
- source of funding if preference list of investors not given
- since SME only six months results and update
Difficult for any ordinary investor to track this and questions
Need serious review of this company
Fresh positions or entry to be taken with enough care i mean
for point no 2 and 3-- they reported a deal in BSE exchange today -A UAE based Bank in SCF veefin product
VEEFIN DUBAI SCF imple deal.pdf (650.8 KB)
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surprised to see a lot of people interested in this scrip however, no one has looked at the FY25 cash flow statement which clearly indicates they have raised 289 Crore in FY25 (on paper) and only god other than the management team knows who had put money.
already looked at it, 289 cr for an 800 cr market cap company, even if I take the peak market cap of 1500-2000 crore despite this comes to around ~15% of the market cap. the question is who invested.
best case is that they have raised money in subsidiaries but still no info available on the investors who have participated.
Two Big acquistions to my knowledge one happened and one in WIP
One happened - NItyo infotech acquired by subsidary Infini and WRM in Infini another subsidiary
as per in feb/March 25 concall just before the results,MD Raja has mentioned
acquistions in Subsidiaries will be funded by raising money in Subsidiaries no dilution in Parent Veefin
Another one White rivers media also going to Happen in Subsidiary only(WIP)
and revenues will get added in this FY26
Veefin will be the Holding company and money will not be raised in Veefin Balance sheet for subsidiary acquisition
I don’t have a qualified Accounts Background to go Deep dive
But you can see Veefin share capital has barely expanded
except for esops a small portion in rounding
But following and invested in Veefin and attended Last few calls
Thought of Reverting what i understood
Software Product wise and Platforms wise and Bank Deals wise
considering the Deals they reported Business in Right Direction
They will be simplifying the Org Structure for Better Understanding and better governance standards as reported in last call
The reason for this as told by management is the cap of equity capital in SME to
25 crores ( older regulations) at time of listing
Hope it addresses some queries in General
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My doubt is on management not naming the so called investor(s) here.
Management is saying long standing investors but the reality is there are no long term investors in the cap table other than Ajay Rajendran.
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I agree to your point of Investors not disclosed ( in Subsidiaries)
reason
Money is not raised in Veefin balance sheet
You are seeing veefin balance sheet but money not raised in veefin hence will not reflect in shareholders /dilution or new investors or change in percentage of existing shareholders in veefin
Not sure about sme regulation of investors disclosure in subsidiaries
SMEs more regulated by exchange level and not SEBI like Mainboard
the whole idea is allowing SMEs to grow without overburden of regulations
Regulations and Business ease should be balanced as per SEBI
hence given free hand to Exchanges to regulate
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I can imagine only one case where a long standing investor has invested and yet the management is not naming the investor specially when the management itself selling the shares in open market including the so called long standing investors.
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Acquisitions are happening a combination of share swap and cash
lot of acquisitions broadly this concept hence may be a minor dilution of promoters from fy 24 to fy25 plus esops to employees of veefin in fy25
Following this company from last one year
so many out of memory and some data
Hope these kind of Software product platform companies Succeed in india
One day should migrate to Main board
and succeed ,before that they will simplify group structure
they agreed to give quarterly business updates in Feb 25 call. they try to maintain updates and transparency
Disc: Invested for mid term at least and wish them to succeed
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@Imran_Khan - Some relevant points from the earlier call notes, in response to your pertinent questions.
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Finally someone covering Veefin solutions
Nuvama_Management_Meet_Note_on_Veefin_Solutions_Streamlining_supply.pdf (1002.7 KB)
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everyone is selling and still confient of growth… … they had insvestor but cant disclose the names …great
Disc. Not invested
This report resolves a lot of questions on the subsidiaries however, giving such info to a select group of brokerage houses, insiders and investors makes them fishy intentionally or unintentionally.
Clearly one of the directors I previously named has taken an undue advantage of this info. On one hand the management has guided for 100 Cr + top line and handsome margins on the other hand when the stock price zoomed one of the directors who happens to hold ~15% of the company sold meaningful percentage.
Serious doubts on the management integrity.
Regime tax revenue 2024 - 4.45 Cr
Epikindifi revenue 2024 - 14.2 Cr
Walnut ai est revenue 2024 - 8 Cr
Nityo tech a 2-3 year old company revenue est is sub 7-8 Cr at best(edit- 32 Cr reported in presentation)
Paid around 200-250 cr in cash for partial stake based on intangible assets etc in the book.
If they are acquiring so many companies either they know something that nobody knows or it’s just a way to fool people.
Insightful session; Raja talks about SaaS pricing; Holding and subsidiary company structure; Update on PSB exchange
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At 1.02.50 the explanation for decline in EBITDA margin is wrong. Its not because of lower % holding in sub and as a result of proportionate consolidation as explained by Raja (actually the accounting he is suggesting is not even allowed under GAAP). Its purely due to EBITDA and Cash losses in the acquired subsidiary as below…
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That’s correct @Dev2.
Value bet for long time…2 Upper circuits after interview