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Vivek Sukhani
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   Posted: 25/Nov/2007 at 2:30pm |
I found the topic reading similar to that of tata investment, the thread prepared by Basant Sir.
However, with a tata investment there was a good discount to NAV.....here its a premium. Also, capital adequacy has deteriorated as per the latest quarterly reported to the exchange. Although acquiring such a company appears easy but with 89 p.c. non-promoter holding, integration is quite difficult. I am unable to fathom out how will an acquirer seize control of such a widely held company??????
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basant
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Posted: 25/Nov/2007 at 4:09pm |
Non promoter holding is 100% and not 89%. Capital adequancy is down because it has a different strategy of taking up loss making banks.Around 30% - 40% of the company goes off in one shot! Read this here.
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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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Vivek Sukhani
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Posted: 25/Nov/2007 at 4:26pm |
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basant
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Posted: 25/Nov/2007 at 4:31pm |
That is the custodian holding at 11% not the promoter. This Bank has no promoter.
Edited by basant - 25/Nov/2007 at 4:35pm
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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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Vivek Sukhani
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Posted: 25/Nov/2007 at 4:47pm |
the company has too many shareholders......
Will like to know , how will it be fetched by a knight????? Who does he approach, if there is no promoter? Through market??????? I think companies with professional management( here it means, with very little/negligible promoters' holding), acquiring control is very very difficult.
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bgkochar
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Joined: 28/Jan/2007
Location: India
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Posted: 25/Nov/2007 at 5:51pm |
very nice write up,my only concern abt integration,if they will intergrate efficiently then it is good to buy. i think i miss something here regrading govt guidelines. basantji told many times that after 2009 m&a will go up but why? plz give me link if anybody knows.
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bgkochar
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Posted: 25/Nov/2007 at 6:15pm |
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i just want to discuss one more point here-foreign banks would like to buy bank with quality branch network not quantity, so don't you think that yes bank(i read views from members that they are very choosy abt branch area) will be priorty for foreign banks for acquisition.
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basant
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Posted: 25/Nov/2007 at 7:07pm |
CBoP has a mixed presence you could find their branches in the high streets and also in rural areas. Without a presence in the right areas their non-interest income could never make 50% of their revenues.
Surely you do not expect people in towns and villages to buy Insurance and wealth management products. the best indicator of branch quality is the non-interest income component.
The problem is their a) loan book b) excessive operating costs especially employee costs which is dragging the bottomline.
If they go in for another takeover these problems will persist but these people should be knowing what they are doing.
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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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