I think that means the assets would have to be returned back to the owners (Government) after weighted average of 15 years. Once the asset is given back, they stop getting any revenue from it. Typically, once an asset is returned, Infra trust would try and buy a new one. This period is also called concession period.
How this works is: The developer (infra trust) will develop the project (road asset in this case) and then they will take toll for those numbers of years (concession period), and once concession period is over, asset is taken back by the govt.
Posts tagged Value Pickr
IRB INVIT TRUST- new game in the town! (25-05-2024)
IRB INVIT TRUST- new game in the town! (25-05-2024)
(post deleted by author)
Manappuram Finance (25-05-2024)
Management replied some other parties did not applied to rights issue (unclear whether he said they did not want to, but, he did say some due to cash constraints). So others over-subscribed.
Manappuram Finance (25-05-2024)
with regards to Rights issue (calculations done only for 30/06/2023 issue, not for previous ones):
VP Nandakumar:
Shares subscribed: 16,012 Price:364; Total cost = (16012x364 = 58,28,368); Bonus Issue(26/08/2023): 2:1; Shares : 16012x3 = 48036. Total equity base: 200,283,372. Based on this Enterprise valuations at which Rights issue done: 2418 cr.
Shares subscribed by Manappuram in (4120879 no of shares) Rights issue: 4023144; Proportion: 97.62%. Current stake (pre-issue): 97.59%. Based on arithmetic, Manappuram subscribed to more shares it was entitled to, if minuscule in size.
Shares subscribed by VP Nandakumar in (4120879 no. of shares) Rights issue: 16012; Proportion: 0.388%. Current stake (pre-issue): 0.388%. Based on arithmetic, VP Nandakumar subscribed to similar shares it was entitled to (did not verify with higher decimal places).
Everybody is welcomed to form their judgements about valuations at which rights issue was done.
Promoters investing in personal capacity is also subjective, sometimes it is seen in positive light (skin in the game if not short changing others)
I was unable to find if VP Nandakumar took any remuneration or sitting fees. May be I missed it.
Disclosure: Invested.
PS: I would have liked if Asirvad got de-merged first and its shares were issued to minority shareholders. May be I would have sold my stake in Asirvad and practically brought overall cost of acquisition for Manappuram shares down. Similar to what happened in NMDC Steel de-merger and separate listing.
Gland Pharma- Generic Injectables (25-05-2024)
Anyone tracking this company? The results look solid. There is a cup and handle when it comes to technical patterns
Anshul’s investing journey (25-05-2024)
WPIL is a good proxy to water capex too. They recently discontinued nuclear division and are cash rich. Like Welspun’s MEPL acquisition - WPIL should be doing inorganic growth in coming times. Looks promising. Welspun Enterprises is a available at great valuations i must say. EPC player. MEPL gives them trenchless technology which is high growth.
ValuePickr Jaipur (25-05-2024)
Have created whatsapp group
Please join here
Buy Unlisted Shares (25-05-2024)
I fail to understand why OYO valuations are falling. Travel and hospitality sectors are doing extremely well with strong pricing power and better margins. OYO itself has turned around in FY24. As per some reports Q4 PAT was 100cr and with the existing FCY loans being refinanced at 500 bps lower, there is a interest saving of 100-120cr each year. If the company continues this momentum assisted by tailwinds in the sector, FY25 will be even more spectacular. However valuations seem to be going in the other direction. I personally feel its a good time to accumulate. Delay in IPO should be seen as good news by pre IPO investors wanting to accumulate more during this fall. OYO with better earnings will eventually command better valuations when it comes to the market. Unless there is some hidden issue or fraud that only a few with insider information are privy to, really cant fathom the drop in valuations. At times markets do temporarily misprice an asset, hope its that case and eventually earnings will drive valuations!
Hindustan Unilever (HUL) (25-05-2024)
TTM P/E shall be seen after considering the spend for advertising and promotion, which is an expense for maintaining the future growth. This adjustment will drop the PE to ~37. PEG of ~3 and not attractive for an active investor.
At current valuations, annual dividend yield is ~1.8%. Considering the nature of its products and India’s demographics, future earnings growths CAGR could be similar to historical amounts of 10% over the next 5 yrs. That shall lead to capital yield (price cagr) of similar amount although may not be in a linear fashion. Hence, an overall return of 10~12% seems likely at CMP. Above all, businesses like these provide stability for a portfolio in times of extreme pessimism such as COVID and peaceful sleep to the owner even if one bets a significant amount of their net worth.I think a passive investor would do better than FDs without taking risks inherent in the equities.