Fairfax India new issue

[Hsmpanl]

3 hours ago, gfp said:

 

I ran out of money hsmpanl - ain't got a square to spare in a tax deferred account and I don't want to own FIH in a USA taxable account

Ran out of money?! I picture you as Scrooge McDuck swimming in a bottomless pool of gold coins… mind sharing what you like more than FIH?

[gfp]

9 minutes ago, Hsmpanl said:

Ran out of money?! I picture you as Scrooge McDuck swimming in a bottomless pool of gold coins… mind sharing what you like more than FIH?

 

I haven't sold out of FIH and own quite a bit.  Not as much in dollar terms as Fairfax Financial but enough.  I just don't want to own it outside of IRAs in the United States and I don't have any cash in any IRA I manage presently.  If FIH keeps going down I suppose I will find something to sell to get some efectivo

[Hsmpanl]

32 minutes ago, gfp said:

 

I haven't sold out of FIH and own quite a bit.  Not as much in dollar terms as Fairfax Financial but enough.  I just don't want to own it outside of IRAs in the United States and I don't have any cash in any IRA I manage presently.  If FIH keeps going down I suppose I will find something to sell to get some efectivo

I got you, that all makes sense. FIH is 3% and FFH is 10% of investable assets for me, but I have ~10% cash and my assets are heavily weighted to IRAs v. taxable (75/25) so trying to figure out what to do with that. Still pretty new to the FIH story so trying to shamelessly outsource my conviction to the smarter folk here.

[villainx]

I think various times FIH gets wildly undervalued, at around .7 book. It might get there with a bit of uncertainty floating around. 
 

Present level is interesting. I’m trying to wait but I’ll see.

[Hsmpanl]

1 hour ago, villainx said:

I think various times FIH gets wildly undervalued, at around .7 book. It might get there with a bit of uncertainty floating around. 
 

Present level is interesting. I’m trying to wait but I’ll see.

Yeah, would love to buy it lower but hard not to keep adding with it ~0.8x an understated (and growing) book. I don't fully understand the high water mark and the performance fee due to FFH, but at current valuation I don't think it matters to the investment case.

[gfp]

https://www.fairfaxindia.ca/press-releases/fairfax-india-announces-sale-of-equity-interest-in-saurashtra-freight-private-limited/?utm_source=newsletter&utm_medium=email&utm_term=Fri+Sep+12+2025&utm_campaign=Fairfax+India+Announces+Sale+of+Equity+Interest+in+Saurashtra+Freight+Private+Limited

 

 

 

(purchased in 2017)

https://www.fairfaxindia.ca/press-releases/fairfax-india-to-acquire-51-of-saurashtra-freight-private-limited-2017-01-16/

 

something like an 11.2% annualized return (in USD terms) if there were no distributions during the period.  Better if there were

 

(~14.8% in INR terms)

Edited September 12, 2025 by gfp

[Hsmpanl]

3 hours ago, gfp said:

https://www.fairfaxindia.ca/press-releases/fairfax-india-announces-sale-of-equity-interest-in-saurashtra-freight-private-limited/?utm_source=newsletter&utm_medium=email&utm_term=Fri+Sep+12+2025&utm_campaign=Fairfax+India+Announces+Sale+of+Equity+Interest+in+Saurashtra+Freight+Private+Limited

 

 

 

(purchased in 2017)

https://www.fairfaxindia.ca/press-releases/fairfax-india-to-acquire-51-of-saurashtra-freight-private-limited-2017-01-16/

 

something like an 11.2% annualized return (in USD terms) if there were no distributions during the period.  Better if there were

 

(~14.8% in INR terms)

Small dollars but very solid return, thanks for sharing. Do you have some type of feed set up for press releases?

[gfp]

5 minutes ago, Hsmpanl said:

Small dollars but very solid return, thanks for sharing. Do you have some type of feed set up for press releases?

 

https://www.fairfaxindia.ca/news/

 

there is an option to "subscribe to our press releases" on the left side 

[Hektor]

Report of reopening the old Bangalore airport for commercial traffic.

 

HAL Airport Revival: Bengaluru's HAL Set for Commercial Flights by 2033

 

Bengaluru's HAL airport to reopen before 2033 for commercial flights?

Amid Karnataka's push for a second greenfield airport in Bengaluru, plans are underway to reopen the HAL airport for commercial flights before May 2033, when the exclusivity agreement with the Bangalore International Airport Limited (BIAL) expires.

 

A recent meeting involving the Airports Authority of India (AAI), the Ministry of Civil Aviation, Hindustan Aeronautics Limited (HAL) and BIAL discussed plans to expand and reopen the HAL airport. 

Karnataka Chief Secretary Shalini Rajneesh has urged BIAL to issue a no-objection certificate (NOC) to allow commercial flights at the HAL airport, assuring that the state government would bear any losses incurred, a senior AAI official told DH.

 

Bangalore South MP L S Tejasvi Surya said Civil Aviation Minister Ram Mohan Naidu is "extremely enthusiastic" about the initiative to reopen the HAL airport for commercial flights.

 

"It is not confirmed that BIAL will be a part of the revamped airport. Ownership and the operational rights of the airport will likely be put up for auction, and it all depends on who has the highest bid," the official said. 

 

[Hsmpanl]

45 minutes ago, Hektor said:

Report of reopening the old Bangalore airport for commercial traffic.

 

HAL Airport Revival: Bengaluru's HAL Set for Commercial Flights by 2033

 

Bengaluru's HAL airport to reopen before 2033 for commercial flights?

Amid Karnataka's push for a second greenfield airport in Bengaluru, plans are underway to reopen the HAL airport for commercial flights before May 2033, when the exclusivity agreement with the Bangalore International Airport Limited (BIAL) expires.

 

A recent meeting involving the Airports Authority of India (AAI), the Ministry of Civil Aviation, Hindustan Aeronautics Limited (HAL) and BIAL discussed plans to expand and reopen the HAL airport. 

Karnataka Chief Secretary Shalini Rajneesh has urged BIAL to issue a no-objection certificate (NOC) to allow commercial flights at the HAL airport, assuring that the state government would bear any losses incurred, a senior AAI official told DH.

 

Bangalore South MP L S Tejasvi Surya said Civil Aviation Minister Ram Mohan Naidu is "extremely enthusiastic" about the initiative to reopen the HAL airport for commercial flights.

 

"It is not confirmed that BIAL will be a part of the revamped airport. Ownership and the operational rights of the airport will likely be put up for auction, and it all depends on who has the highest bid," the official said. 

 

I’m glad it’s Hari dealing with these politics and not me… doesn’t sound like an easy situation to navigate and doesn’t sound positive for BIAL.

[SafetyinNumbers]

11 hours ago, gfp said:

https://www.fairfaxindia.ca/press-releases/fairfax-india-announces-sale-of-equity-interest-in-saurashtra-freight-private-limited/?utm_source=newsletter&utm_medium=email&utm_term=Fri+Sep+12+2025&utm_campaign=Fairfax+India+Announces+Sale+of+Equity+Interest+in+Saurashtra+Freight+Private+Limited

 

 

 

(purchased in 2017)

https://www.fairfaxindia.ca/press-releases/fairfax-india-to-acquire-51-of-saurashtra-freight-private-limited-2017-01-16/

 

something like an 11.2% annualized return (in USD terms) if there were no distributions during the period.  Better if there were

 

(~14.8% in INR terms)

There were some distributions so return is a bit higher. Was marked at $61m.

 

[villainx]

4 hours ago, SafetyinNumbers said:

There were some distributions so return is a bit higher. Was marked at $61m.

 

Is this more or less ammo for Muddy Waters?

[SafetyinNumbers]

7 hours ago, villainx said:

 

Is this more or less ammo for Muddy Waters?

Muddy Waters was throwing mud. They never had any ammo. 

[SafetyinNumbers]

3 hours ago, Haryana said:

Saurashtra has been a good return in percentage terms but negligible in absolute amounts, a total distraction from an investment point of view. 

Real winner here is the company Saurashtra itself and the economy of India that may get the benefit. 

Fairfax, however, has displayed fair and friendly attitude by letting the company go where best for it.

Not a distraction to build a network such that other entrepreneurs with good businesses will seek out partnering with Fairfax over other options. Fairfax is playing a very long game.

[Malmqky]

11 hours ago, villainx said:

 

Is this more or less ammo for Muddy Waters?

Muddy Waters must have capitulated by now, right?

[dartmonkey]

19 hours ago, SafetyinNumbers said:

There were some distributions so return is a bit higher. Was marked at $61m.

 

I see. $12.2m in distributions since February 2017, when they FIH bought 51% of Saurasthra for $30.081m, for a total returrn of 12.2% as of June 30, 2025 (including distributions), when the fair value was reported to be $60.824m.

 

Given the fact that the sale was for $75m (approximately), one can calculate how much of an extra boost this extra $14.2m return would have generated, provided there were no additional distributions between June 30 and now. By my calculation that would be another 5.2%, for a total of 17.4% annualized over a period of about 7.5 years.

 

That is actually a pretty good return, considering the exchange rate headwind. Too bad it was such a small investment, representing only about 1/40 of the giant BIAL investment ($1.2b) initiated just a month later. But it is one more indication that at least for the investments they have monetized, like the $27m National Stock Exchange investment, initiated in 2016, and which gave them a 33% annualized return, the returns have been quite acceptable.

 

 

[SafetyinNumbers]

3 hours ago, Malmqky said:

Muddy Waters must have capitulated by now, right?

I’m sure they are still short a share. Literally one share so they can say they are still short.

[SafetyinNumbers]

1 hour ago, Haryana said:

Agreed.

 

In case new comapny integration fails, Fairfax could buy back at a lower price and sell at higher later. 

 

I had been a proponent of the small but high growth Maxop and Jaynix.

 

Just had a thought that exiting this position early made it a distraction, however still, real good networking. 

What makes you say they exited early?

[SafetyinNumbers]

10 hours ago, Haryana said:

Why would they cut a flower in a high growth industry in an economy expected to grow for a long time and that too without dramatic premium? 

Fairfax tends to do what’s best for the company. If management thought selling was the right thing to do there isn’t much of a decision to make.

[This2ShallPass]

1 hour ago, Haryana said:

Hard to complain if looking at the 5 year chart:

Only because it coincides with all time lows. 10 yr chart looks bad..

 

[dartmonkey]

25 minutes ago, This2ShallPass said:

Only because it coincides with all time lows. 10 yr chart looks bad..

 

Yes, you can have 74% appreciation in 5 years if you look back 5 years, or 74% in 10 and a half years, if you go back to the February 2015 launch. Like for Fairfax, the returns sure look better if you avoid looking at any years starting with the numbers 201…

[CS]

https://www.fairfaxindia.ca/press-releases/fairfax-india-announces-intention-to-make-a-normal-course-issuer-bid-2025-09-26/

[ValueNation]

33 minutes ago, CS said:

https://www.fairfaxindia.ca/press-releases/fairfax-india-announces-intention-to-make-a-normal-course-issuer-bid-2025-09-26/

 

Does this mean an IPO is finally imminent? Or just a re-acknowledgement that book value is increasing faster than share price?

 

[Haryana]

Ncib where N means Normal. 

[This2ShallPass]

22 hours ago, dartmonkey said:

Yes, you can have 74% appreciation in 5 years if you look back 5 years, or 74% in 10 and a half years, if you go back to the February 2015 launch. Like for Fairfax, the returns sure look better if you avoid looking at any years starting with the numbers 201…

You can even look at 5.5 years, return is only 40% vs. 95% for Sensex (without currency adjustment) and 100% for s&p.

 

I simply don't understand their strategy and no one has been able to explain it (other than saying trust them). They buy these tiny companies on one hand and then have BIAL + bidding for IDBI on the other. Why? The tiny companies need to have outsized returns to make a dent (look at Saurashtra, good IRR on exit but who cares). Add to it, these small companies are in industries that are more traditional (i.e. no 10 or 20 bagger potential).