Re: {LONGTERMINVESTORS} ILFS INVESTMENT MANAGERS..Thread.
RAJESH DESAI
Q2FY12 results highlights
- ILFSVC has reported a decent set of numbers for the quarter ended September 2011 which were as per expectations. For Q2FY12, company reported a consolidated income of Rs544 mn v/s Rs437 mn for Q211, a 24% y-o-y growth. On a sequential basis also, the company posted 5% q-o-q growth as compared to the June 2011 numbers.
- On a y-o-y basis, personnel expenses & advisory fees as a % of sales for the current quarter has seen a rise of 63 bps (24%) & 551bps (6%) respectively
- Reported PAT for SepRs11 was at Rs181 mn as against Rs167 mn for Sep' 10, a rise of 8% y-o-y, (5% q-o-q growth)
- EPS for the current quarter was Rs0.87/- as compared to Rs0.82/- for the corresponding quarter of last year
Analyst Conference Call Highlights
- Fund raising started from January 2011: Tara India Fund 4 ($40Mn), JV Fund with Milestone ($50Mn) and PIPE Fund ($40-50Mn)
- As on H1FY12, the net earning AUM stands $2.45 bn
- Saffron contribution: H1FY12 top-line at Rs172 mn & PAT at Rs30 mn
- $20 mn International Loan taken for the Saffron merger is for a period of 3 years. The repayment process started effective March 2011 and a total of $4.5 mn have been re-payed till date
- Going forward, the repayment schedule of the loan would be to the tune of Rs10 mn per quarter
- ”The company is looking at significant deal flow with strong underlying potential yielding good cash flows and returns in the future”
Recommendation
At CMP of Rs29, ILFSVC is trading at 8.5 times TTM earnings of Rs3.4/- per share. Parag Parikh maintains a BUY recommendation.
CA. Rajesh Desai
RAJESH DESAI
CA. Rajesh Desai
RAJESH DESAI
CA. Rajesh Desai
RAJESH DESAI
Amrapali in funding talks with PE firms
December 22, 2011
Realty firm Amrapali Group is in the process of raising about Rs 220 crore from private equity (PE) firms to fund the construction of two of its large residential projects in Noida. The Noida-based developer is raising Rs 100 crore from IL&FS Investment Managers Ltd for its 20-acre Princely Estate mid-segment apartment project. From JPMorgan Chase & Co, it is raising about Rs 120 crore for its 60-acre Silicon Valley project. JPMorgan had invested Rs 75 crore in the firm’s Zodiac project in Noida in 2010, reports Mint.“Bank lending is a little difficult and time-consuming if you want a higher sum of capital, and then we have to look at alternative sources such as PE funds,” said Anil Sharma, chairman and managing director, Amrapali Group. “A single bank won’t lend a large sum and arranging a consortium of banks takes time.”
Sharma said Amrapali is raising money primarily to complete the two Noida projects in time; the projects are due for delivery to buyers in 2013.
“If you want to target completion on time, particularly for large projects, you need strong financial backing,” he said.
IL&FS Private Equity Invests Rs 230Cr In IL&FS Energy Development
BY MADHAV A. CHANCHANIThe stake has been picked up by two funds – StanChart IL&FS Asia Infra Growth Fund & IL&FS Infra Equity Fund I.Two funds managed by IL&FS Investment Managers (IL&FS Private Equity), one of India’s largest PE firms managing assets of $3.2 billion, have acquired stake in IL&FS Energy Development Company Ltd – a firm engaged in the operation and maintenance of power generation, transmission and distribution projects. The stake has been picked up by Standard Chartered IL&FS Asia Infrastructure Growth Fund Company Pte Ltd and IL&FS Infrastructure Equity Fund I for Rs 230 crore.
An IL&FS PE spokesperson declined to comment when contacted by VCCircle, stating that the CEO & executive director Dr Archana Hingorani was travelling. Amarchand & Mangaldas was the legal advisor on the transaction. The deal was closed by October-end this year.
Incidentally, this is not the first time when the private equity firm is investing in a group company. Standard Chartered IL&FS Asia Infrastructure Growth Fund has also invested in IL&FS Transportation Networks, which was listed last year, with the PE firm’s investment at over 2x unrealised gains at one point. IL&FS Transportation is also backed by PE firms like Goldman Sachs and Bessemer Venture Partners.
IL&FS Energy Development, a subsidiary of IL&FS, plans to set up projects with aggregate capacity of over 15,000 MW across conventional and non-conventional energy space. The company plans to develop greenfield projects and acquire substantial stake in existing operational assets.
Two of its main projects include 726 MW Tripura gas power project along with ONGC, which is expected to cost Rs 3,430 crore. Another is 3,600 MW Cuddalore power project in Tamil Nadu, which is expected to cost Rs 15,000 crore. The imported coal-based power project is coming along with a captive port and a desalination plant. Another project in the pipeline includes 4,000 MW Nana Layja power project in Gujarat.
IL&FS Energy Development is also setting up biogas power projects in Maharashtra and establishing wind farms aggregating to 1,005 MW across seven states in a phased manner. Two sites in Rajasthan (38.4 MW) and Tamil Nadu (12 MW) are operational since September 2010, with further projects coming up in Rajasthan, Tamil Nadu and Madhya Pradesh. It also holds a stake in Shalivahana Green Energy, which is developing clean energy projects of 345 MW.
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Warm Regards,
~ monkk ~
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CA. Rajesh Desai
RAJESH DESAI
First half of 2012 likely to be tough for private equity investments: E&Y survey
This subdued outlook is reflected in the deal flow for the last year, which reached a total of $ 9.3 billion, increasing by just over 10 % from the total private equity inflow of $ 8.4 billion in 2010. The dip in investments that began in the middle of last year is expected to last for a few quarters more as economic volatility, both domestic and global, plays out its course.
Private Equity investors will feel the brunt of this volatility as they hunker down to craft profitable exits and also reverse the dipping graph of new deals. "First half of 2012 is expected to be tough for PE investments; exits will take a lot of PE fund manager's energy and bandwidth," said Pankaj Dhandharia, Partner at consulting firm Ernst & Young.
In contrast, for venture capital investors (venture capital deals are classified as investments in companies operating for less than three years) who will focus on picking winners from a growing crop of early stage start-ups there is good news from the technology sector.
Cloud computing, clean technology and online commerce will provide the big investment opportunities in the coming year alongside the rise of technology enabled services such as mobile and online advertising, analytics and data management businesses that are set to grab investor attention and the big bucks in the coming year.
These emerging businesses with their need for early stage capital will prove to be the catalyst for greater venture capital inflows into India.
At present, venture money accounts for a fifth of the total risk capital inflow into the country. "In 2012 there will be an inflow of up to $ 2 billion of venture capital into India," said Sudhir Sethi, founder of technology venture firm IDG Ventures. Median deal sizes are expected to remain in the range of $ 10 -$ 11 million.
"Venture capital activity will continue at the same high pace," said EY's Dhandaria.
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COMMENT
The last two quarters indicate a decline in deal value as compared to the fi rst two quarters of 2011
2011 has been a year of both extremes, the highest quarter and the lowest quarter (in terms of value) in the last two years have been recorded in 2011
The fourth quarter of 2011 was the lowest with $1.4bn and the second quarter was the highest with $3.4bn
SUBRATA MITRA, Partner, Accel Partners
"We believe that if the global environment doesn't get even tighter, we should see more action in 2012 in India, but it would defi nitely be somewhat measured"
MADHUR SINGHAL, Manager Bain & Company & Author of the Bain-IVCA India Private Equity Report 2011
"We do not believe that the mood has turned negative. Some variation across quarters is natural but that is not refl ective of a change in mood unless the trend is seen over 2-3 consecutive quarters."
SRINI CHAKWAL, MD, Redclays Capital
"I expect the deal sizes to signifi cantly improve from the secondquarter of 2012 in terms of value and volume, with major investment in infrastructure and energy. Deal volumes in clean tech, mobile and cloud computing, especially in the start-up and early-stage arenas, will be up"
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There is a signifi cant backlog of investments that have not been exited yet
Of the exit routes, open market accounted for 44% of the exits while strategic accounted for 22%
SUDHIR SETHI, Founder, IDG Ventures
"Technology has dominated the venture-backed exit landscape in India, both in terms of number of exits and return multiples for investors. From 2004 to mid-2011, there were 152 venture-backed exits in India, with nearly three-fourths of this coming from technology companies."
J M TRIVEDI, Partner, Actis
"Over the last few years Indian PE fi rms have not given enough exits. Now there is further pressure as one of the main exit routes (IPO/stock market) is shut. If enough exits do not come in, the LP interest in India could go down"
AKHIL GUPTA, Senior Managing Director & Chairman, Blackstone India
"Going forward in 2012, investor sentiment in the domestic market will likely pick up as investors focus on the long-term growth story for the country"
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India has clearly been a growth capital market, with expansion/growth capital accounting for 46% of the total deals in 2011
But the big trend for 2011 was the surge in start-up/early stage deals - increased from 68 deals (18% of total) in 2010 to 140 deals (33% of total) in 2011
Start up/early stage investments also include greenfi eld investments made by PE funds, like ReNew Power - Goldman Sachs, Greenko Wind - GE Capital, Green Infra - IDFC amongst others
AKHIL GUPTA, Senior Managing Director & Chairman, Blackstone India
"We expect the deal size to go up in the coming years with continuous growth of Indian Economy . We at Blackstone are looking at bigger deals primarily starting from $75-100m."
J M TRIVEDI, Partner, Actis
"While PEs are more impacted by macroeconomic conditions, VCs are impacted by the entrepreneurial trend. Early stage entrepreneurs are optimistic about medium to long-term prospects of India. This is a good sign."
SANDEEP SINGHAL, Co-founder & MD, Nexus Venture Partners
"Technology investing is emerging as a viable option in the Indian scenario and I expect to see more Silicon Valley type companies getting funded in India."
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Indian funds dominate the investment activity by contributing more than 50% of the deals in the last two years, however Global funds account for majority of the PE Investments by contributing 53% in 2010 & 62% in 2011 of the total investments
ALOK MITTAL, MD, Canaan Partners
"Investing Indian money in India is diffi cult. I would like to see the Indian funds play a larger role, but that is not going to happen soon. It is an unfortunate scenario but it is more a policy issue"
SANDEEP SINGHAL, Co-founder & MD, Nexus Venture Partners
"In an environment of uncertainty both global and Indian funds will prefer to wait. The Indian LP market is still not deep enough and global LPs will continue to play a signifi cant role in shaping the Indian PE space"
SACHIN MAHESHWARI, Director, Zephyr Peacock India Management
"Domestic capital in India is still restricted to HNIs looking to risk some of their capital for higher growth. Until institutions like banks and insurance companies start putting in capital into private equity, we will mostly see global capital as being the source of capital for this asset class"
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CA. Rajesh Desai
RAJESH DESAI
Indian private equity industry at crossroads
By Mayank Rastogi
(Partner, PE & Transaction Advisory Services, Ernst & Young)
Private Equity investments dipped from a high in the first half of the year to a low in December marked by the rough bumps of slowing GDP growth, sluggish capital markets, rising inflation, policy flip-flops, and the ever looming Euro crisis.
2011 has been a roller coaster ride for the PE industry in India, a year which actually began on a promising note with heightened deal making both in terms of numbers and values.
However, the deceleration in PE deal momentum in the second half of 2011 has been a dampener of sorts, seeding doubts in the minds of many. Further, with exits continuing to be the bane of the industry, fund raising has also been more challenging. However, the year did see a billion dollars more in PE investments and 18% more deals.
At a broad level, with macro-economic and policy concerns both globally and in India, 2012 is expected to stress test even the brave hearts. The Indian PE industry is at the cross-roads and this year will redefine the players and the playing field going forward. And more so it will be a year that will decide whether the Indian risk capital industry can win back the confidence of and a bigger share of funds from Limited Partners (LPs).
Start Of A Shake-Out
This year is going to be crucial for many fund managers on the road raising capital. A large number of India-focused funds were raised during 2004 to 2006, and many of these are due to raise their next fund. LPs are looking closely at the exit performance of these fund managers. Those who have not been able to earn returns will go out of business and leave the field open for long haul players.
Back To Basics
There are a number of reasons that should compel the fund managers to go back to the basics of PE investing, ranging from the lacklustre exit performance to tremendous competition amongst funds to win deals resulting in a bidding war, the regulators' preference for plain vanilla structures with inherent equity risks attributable to the PE investor and the current macro-economic environment. Investors will also look closely at corporate governance issues. This will mean greater time spent on evaluation of deals and investment decisions made on merits rather than sentiments.
Greater Focus On Post Investment Activities
There is a greater involvement of fund managers in strategy discussions, hiring of key professionals, restructuring plans, and growth plans for the business.
Greenfield Investments Or Platform Plays
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Increase In Pipe Investments
With the conventional fund raising options for listed companies not available and a takeover code that has provided a boost for PE funds, a greater number of listed companies are expected to source their growth capital needs from PEs.
Increased Emphasis On Reporting & Governance
There has been an ever increasing focus of LPs on a fund's performance in tracking corporate governance and reporting at an investee company.
This is expected to manifest in various ways, such as greater and more active involvement in the board room, pushing and supporting better governance structures at investee companies, especially around internal controls, processes and systems and greater pre and post investment diligence and investment monitoring.
"LPs are increasingly getting selective about where they put in money. There are too many fi rms looking to raise money but those with successful track record will fi nd it easier to raise money than the ones with no track record."
- AKHIL GUPTA Senior Managing Director & Chairman Blackstone India
CA. Rajesh Desai
RAJESH DESAI
Parag Parikh Financial Advisory Services (PPFAS) has recommended buy rating on IL&FS Investment Managers , in its January 31, 2012 research report. "IL&FS Investment Managers (ILFSVC) has reported a decent set of numbers for the quarter ended December 2011 on par with expectations. For Q312, company reported a consolidated income of Rs 565Mn v/s Rs 573Mn for Q311, marginal de-growth of 1% Y-Y. Though on a sequential basis, the company posted 4% Q-Q growth as compared to the September 2011 numbers. On a Y-Y basis, personnel expenses as a % of sales for the current quarter has seen a decline of 384bps to 23% from 27% in Q311. But, operating profit for Dec'11 de-grew by 8% Y-Y on account of higher Sub-advisory and Legal & Professional fees thereby affecting the OPM by 369bps to 51%. Net Profit for Q312 was at Rs 186Mn as against Rs 164Mn for Q311, a 14% Y-Y growth, (3% Q-Q growth) on the back of lower tax rate reported at 16% (23% Q311). EPS for the current quarter was Rs 0.90/- as compared to Rs 0.80/- for the corresponding quarter of last year." "Fund raising plans have been delayed due to the continuing uncertain global economic conditions, since the company wasn't able to raise any new funds in the reported quarter "At CMP of Rs 27.2/-, ILFSVC is trading at 0.047x MCap/Net AUM. On a P/E basis, the company is at 7.8x TTM earnings of Rs 3.5/- per share. We maintain our buy recommendation," says Parag Parikh Financial Advisory Services research report. |
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CA. Rajesh Desai
RAJESH DESAI
IL&FS Investment Managers has clarified on report published in leadingnewspaper titled, ``IL&FS arm may buy out Hershey stake.``
The company has now clarified that the company is a private equity fund manager and manages private equity funds which invest across various sectors.
The company does not invest directly in any company and is not considering an investment in Godrej Hershey.
IL&FS arm in talks to buy Hershey's stake in India JV
IL&FS Investment Managers , the private equity arm of IL&FS, is in advanced talks to pick up the Hershey Company's 51% stake in its joint venture with the Godrej Group, a newspaper report said on Wednesday.
The Godrej Hersheys joint venture, which is likely to come apart due to differences in business strategy between the partners, is valued at 5.5-6 billion rupees, the report said, citing investment banking sources.
The deal will allow IL&FS to regain ownership of the firm as its private equity arm was the financial investor from whom Hershey had bought a 40 percent stake in 2007 for a reported USD 60 million, it said.
IL&FS Investment has signed the term sheet for the deal and is willing to put in additional funds to boost Hershey's Indian operations, the report said.
In July, reports indicated that Godrej Consumer Products was looking to buy the 51% stake from Hershey's in its India joint venture.
Hershey said it does not comment on speculation and that it continues to operate its operations in India through its partnership with Godrej, the report added.
IL&FS and Godrej Group declined comment to the newspaper and could not be immediately reached for a comment by Reuters.
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CA Mihir Desai
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CA. Rajesh Desai
RAJESH DESAI
BANGALORE: India’s largest listed private equity firm, IL&FS Investment Managers, posted a muted 5% increase in its first-quarter profit.
Consolidated profit after tax for the quarter ended June 30 was Rs 18.1 crore, compared with Rs 17.2 crore, in the year ago period.
Consolidated revenue for the first quarter rose 10% to Rs 56.9 crore, as against Rs 51.7 crore in the year ago quarter.
“The country has faced its worst quarter in nine years. This combined with a weakened rupee has had an impact on the operating environment of the company,” Archana Hingorani, chief executive, IL&FS Investment Managers said in a statement.
During the quarter, the private equity firm invested a total of about Rs 247 crore, focused on the infrastructure and real estate sectors. It recorded exits – full and partial – of Rs 650 crore during the same period.
“Whilst we expect that in the short-to-medium term the stress we have seen in the past few quarters will continue to impact performance, the long-term fundamentals continue to be strong,” Hingorani said.
The PE firm has been on the road over the last year to raise fresh capital, estimated at between $750 million to $900 million, for all its fund across sectors, including its Tara IV and PIPE funds.
Raising capital has become increasingly difficult for risk capital in India, as they grapple with a combination of muddled governance, regulatory flip-flops and under-performance
Shares of the Mumbai-headquartered private equity firm closed down more than 2% at Rs 26.30, Tuesday, on the Bombay Stock Exchange.
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CA. Rajesh Desai
RAJESH DESAI
City Corporation has raised $ 21.8 million from IL&FS Private equity (PEStreet)
Posted: 15 Aug 2012 10:00 PM PDT
City Corporation Limited, the developers of Amanora Park town has raised funds for its latest project, Future Towers. City Corporation established in 1996 by Anirudh Deshpande has developed many residential properties in Pune City. Future tower is designed as a vertical city and is designed by Jacob Van Rijs of MVRDV, an iconic Netherland based designing company which has designed some of the world’s innovative buildings. Construction of Future Towers project is well under way. The foundations and two basement levels have been completed of MVRDV’s first project in India. The first phase of Future Towers will comprise 1,068 apartments and public amenities. Completion is scheduled for summer 2014. Source: http://pestreet.com/2012/city-corporation-has-raised-21-8-million-from-ilfs-private-equity.htmlCA. Rajesh Desai
Concall transcript - pfa
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CA. Rajesh Desai
RAJESH DESAI
REPORT: MoneyTree™ India Report: Q2 2012 (PWC)
Posted: 16 Aug 2012 02:56 AM PDT
Private Equity firms’ investment fell 34 per cent to $1,616 million in the second quarter of 2012 against $2,447 million in Q2 of 2011, according to a PwC India report. The number of deals was 23 per cent lower at 97 compared with 126 in Q2 of 2011. The IT and ITeS sector emerged the leader in both value and volume with 38 deals worth $321 million in Q2 of 2012, it said. Sanjeev Krishan, leader, Private Equity, PwC, said: “This was not a surprise. As the global economic environment continued to remain unstable, the sentiment in the Indian market was also glum. Most investors spent considerable time fretting over the tax changes proposed in the Budget as well as the falling Indian rupee. This created further challenges for funds to exit their existing investments. Fresh fund-raising has been challenging too.’’ SOURCE: http://www.pwc.com/en_IN/in/assets/pdfs/publications-2012/BS-13-0032Q2MoneyTreeIndiaReportv6.pdf--
CA. Rajesh Desai
RAJESH DESAI
Deferring GAAR may provide relief for investors, but it will not take away the fundamental concerns of limited policy action by the government, said Archana Hingorani, CEO & executive director of IL&FS Investment Managers, with assets over $3 billion under management, in an interview with ET. Edited excerpts:
The finance ministry has deferred the imposition of GAAR for three years. Will it help regain investor confidence?
GAAR had been perceived by the investing community as a retrograde step and, layered with the prevalent macro-economic uncertainties, proved to be a tipping point for the investment decision process of many offshore investors. And to that extent, yes, reconsidering the policy is a welcome action. While the deferment will allow for relief and a reinforcement of faith in the country's regulatory regime, it does not take away the fundamental concern of limited action on various fronts.
Are you referring to macro-economic woes?
Yes. Fiscal deficit, slower economic growth, retail policy, land acquisitions or resource allocations et al are the greater areas of concern. It is a combination of these issues that has translated into bigger worries for the entire investing community - domestic or foreign.
What are the challenges faced by PE funds in the current environment?
Investment decisions of offshore investors are in a pause mode vis-a-vis India. Investors prefer to understand policy developments and their impact on the broader environment before committing further capital. Thus, fresh-fund raising is challenging. In addition, given poor performance of public markets, exits timelines are under significant pressure.
Having said that India's growth attenuation is viewed as a transient phase. The fundamentals of the India story have not changed and India continues to be better placed than many other regions to deliver high growth over sustained periods of time. Hence, for a fund with available dry powder, it is indeed a suitable time for value investing.
What's your outlook for equities market?
As PE investors, we do not look at markets on a daily basis. There are macro-economic worries - to which markets are reacting. One thing is certain-these (market) levels are good for investing in terms of valuations.
CA. Rajesh Desai
Rajesh Desai
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CA. Rajesh Desai
Rajesh Desai
MUMBAI | BANGALORE: Property fund IL&FS Milestone Realty Advisors is in talks with global fundsBlackstone, Morgan Stanley and GIC to sell its entire stake in a Mumbai commercial project for about Rs1,000 crore, two persons familiar with the development said.
"IL&FS Milestone has been in talks with prospective investors for the last few months and is expected to close this transaction soon," one of the persons said. "One of the funds that is in talks now was also an interested party back in 2010 when IL&FS Milestone acquired the stake."
IL&FS Milestone, a joint venture between and IL&FS Investment Managers and Milestone Capital Advisors, had in June 2010 paid the HCC Group Rs575 crore for a 74% stake in 247 Park, an office property. The deal valued the property at Rs775 crore.
HCC Real Estate, a subsidiary of the HCC Group, continues to hold the remaining stake in the 1.8-million sq ft commercial property in Vikhroli.
While Blackstone, Morgan Stanley Real EstateInvestment and HCC declined comment, GIC and IL&FS Milestone Realty Advisors did not respond to ET's emailed query on the development. HCC, the other stakeholder, also refused to say if it has first right of refusal if IL&FS Milestone Realty decides to exit the project.
The property, which has 1.2 million sq ft of leasable space in three 14-storey towers, is fully occupied.Siemens, Future Group, DHL Lemiur and HCC are among its prominent tenants.
According to one of the persons quoted above, the special purpose vehicle that owns the asset has a debt obligation of about Rs300 crore, which will pass on to the prospective buyer as part of the deal. Of the 1.2-million-sq-ft space, over 0.9 million sq ft is dedicated to offices while the rest is for retail.
The lease agreement for space in the property includes a clause that provides for rental escalation of about 15% every three years.
Over the last few quarters, private equity players have become selective about investment in real estate. Private equity investment in the real estate sector almost halved in 2012, according to Venture Intelligence, a research service focused on private equity and M&As. During 2012, PE funds made 66 investments in the real estate segment, of which 57 had an announced value of $1.95 billion.
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CA. Rajesh Desai
Rajesh Desai
Below is the edited transcript of Ashish Chugh’s interview with CNBC-TV18
IL&FS Investment Managers
IL&FS Investment Managers is a part of IL&FS group. This is the only listed private equity firm in the country. The company manages money for foreign investors typically on a 220 basis wherein it gets a fixed return of about two percent of the amount of funds managed. Also, there is a performance linked incentive of between 15-20 percent based upon the kind of returns which they generate for the investors after certain threshold. This company has been managing assets of close to about USD 3.2 billion and for the past couple of years it has been giving a consistent return of about 25 percent on the funds managed.
If we look at the financials of the company, FY12 sales were about Rs 220 crore. Profit after tax was about Rs 75 crore. In the first nine months of the current financial year, sales are almost flat at Rs 163 crore which was same as the same period last year. Profit after tax is up by about 2.5 percent to Rs 55 crore.
This company has been distributing roughly 40 percent of its profit after tax to the shareholders as dividend. It has been giving a dividend of 75 percent each year for the past three-four years. The company has a board meeting on 30th April for financial results and also declaration of dividend. So I believe that they may continue with a dividend of 75 percent or dividend of Rs 1.50 on a stock of about Rs 20 which means a dividend yield of close to 7.5 percent.
On a long term basis, the performance of the company is a function of two things. One is the ability of the company to get fresh funds from the management and also the ability of the company to deliver returns to the investors. In the past few years, I think the investment environment has been extremely tough and still this company has managed a profit of Rs 70-75 crore, paid 40 percent profit to the shareholders as dividend. This translates into a dividend yield of about 7.5 percent on the current market price. I think as the economic environment improves and as the profits of the company improves, I think investors can expect better returns in the future.
So here, I am basically betting on the pedigree of the management which IL&FS, I would say is an excellent pedigree. It has been a consistently performing company and the best part is that at the current market price, this company offers a dividend yield of 7.5 percent which in the current environment I would feel is an extremely good dividend yield. I would say this maybe a safe investment for investors who don’t want to take too much risk in the stock market.
Disclosure: Ashish Chugh and his family have investments in both the companies.
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CA. Rajesh Desai
Rajesh Desai
The project owned by HCC is a corporate park – 247 Park in Vikhroli, Mumbai. A term sheet describes the general terms and conditions of a proposed acquisition of a company or a real estate project, and is subject to negotiations and the execution of a definitive sale agreement, Livemint stated.
In 2010, a fund of IL&FS Milestone Realty Advisors Pvt. Ltd acquired a 74% stake in the first phase of 247 HCC Park, a 1.8 million sq. ft commercial property in Vikhroli, Mumbai, while HCC Real Estate, a unit of HCC, picked up the remaining 26%, added report
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CA. Rajesh Desai