After end of current open offer, Coforge will have 51%-54% shareholding in Cigniti.
There cannot be another open offer for next 1 year

Coforge will have two options during the next 1 year

Option a) Run Cigniti as an independent company until next open offer 1+ years later

Option b) Do a merger of Cigniti with Coforge via share swap → The share swap ratio would require approval from minority shareholders.

Now here is the interesting thing → The share swap ratio would require approval from majority of non-promoters

Consider this Example: Despite holding a 75% stake in Butterfly Gandhimathi, the promoter –Crompton Greaves, failed to secure public investors’ approval for its proposed merger with the company . This is because 72.61% of non-promoters voted against the merger

Similarly, if the share swap ratio proposed by Coforge is not deemed appropriate by non-Promoter (i.e. Minority shareholders), then it can be rejected by non-promoter shareholders.

Therefore, the real question is what’s a good share swap ratio that will have good chance of approval from minority?? Will follow up on this in my next post.

On paper, offering high-interest rates for high-risk cases may give the impression of charging excessively. However, high-risk cases are few, as most borrowers are not high-risk
So I think it will work well -low rate leading to more growth
When they say low rate in the industry , its actually not a low rate as microfinance industry runs on very high rate

Can someone please help me understand how the company is paying such low interest on loan? B/S shows 870 cr. of long term loan but only 3 cr. as interest payment. I read something related to 75% loan subsidiary from the Govt. of Telangana, but couldn’t find any details regarding it to fully understand.

Do Not See A Big Hit To Sentiment Regardless Of Small Market Correction: Prudent Corp Advisory

Manappuram Finance on its own is a fundamentally resilient business with a 10-year median return on equity of 18 per cent and return on assets of 4 per cent. The ban on Asirvad, while certainly negative for some quarters, has no bearing on Manappuram’s long-term growth prospects. The other fast-growing loan verticals should help the lender maintain a healthy financial track record.