Hi Arjun,

In my understanding, management had always maintained that it will need some debt to fund the renewal of existing frequency and acquiring new frequency in Phase-III. In fact, management had indicated in Q2 Concall, that they had spent around 50 odd crores more than what they had budgeted for which I feel is commendable in the context of extraordinary high prices paid for some frequencies by some bidders. So, My understanding is that 150-200 Crore debt was always on cards and it quite manageable in the context of their very strong cash flows of 100 odd crores + (and growing!)

Coming to ROE, as I mentioned business has two distinct characteristics
- Cash flow is much more than PAT after few years of auction thus ROE (which is PAT/Total equity) is not an accurate measure as it understates the returns from the business
- Secondly, by very nature, this is a business where business accumulates cash an then deploys it at once (during auctions and renewals). Typically, such cash flow focused businesses are evaluated on IRR basis and ROE may not be a right measure.

Though, ROE is very good measure for most of the businesses, it may not be an optimal one for few. This is one such business where ROE may give a wrong impression of the business characteristics

Agreed. To be fair, of the 1.96 million shares proposed for a rights issue, 1 million will be held in an escrow for 8 years. (extract pasted below). But, 1 million shares at the face value is unfair enough.

Q: as a retail minority, what can be done to ensure this doesn't go through as is?

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Other incidental matters
In order to demonstrate good faith on his part, Mr. Ajit Isaac has offered to put 1,000,000 equity shares of Quess, from and out of the shares currently held by him / entities controlled by him into an Escrow. The Escrow Agreement will stipulate that in the event of: (i) Mr. Ajit Isaac ceasing to be a promoter director of Quess, (ii) Mr. Ajit Isaac breaching any of his lawfully incurred obligations to the Company, (iii) Mr. Ajit Isaac breaching any of his lawfully incurred obligations to Quess during the next eight years, the Escrow Shares or the value thereof would be made over to Thomas Cook, subject to compliance with regulatory considerations. However, if the conditions and covenants are met for the defined period of time, i.e. up to 31st March, 2023, the Escrow agent will release those Escrowed Shares to Mr. Ajit Isaac.

Whats the problem with the script...? anyone have any idea.....

Hitesh Sir, I want to know industry average under following metrics for Housing Finance Industry: EPS, Book Value, PE Ratio, PB Ratio and Market Cap. This will help me as I am preparing for PPT on these topics.