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Article in TimesofIndia that discloses a 10% stake in IndiaInfoline

 

"What's in BlackBerry buyer Prem Watsa's India kitty?"

http://articles.timesofindia.indiatimes.com/2013-09-25/hardware/42391505_1_india-infoline-thomas-cook-prem-watsa

 

While its India presence was restricted to general insurance for a long time, things started to change in 2011 when Watsa brought on board private equity deal maker Harsha Raghavan. Within a year Fairfax acquired nearly a 10% stake in Nirmal Jain-promoted IndiaInfoline.

 

From their website:

The IIFL Group is a leading financial services company in India, promoted by first generation entrepreneurs. We have a diversified business model that includes credit and finance, wealth management, financial product distribution, asset management, capital market advisory and investment banking.

 

We have a largely retail focussed model, servicing over 2 million customers, including several lakh first-time customers for mutual funds, insurance and consumer credit. This has been achieved due to our extensive distribution reach of close to 4,000 business locations and also innovative methods like seminar sales and use of mobile vans for marketing in smaller areas.

 

Our evolution from an entrepreneurial start-up to a market leadership position is a story of steady growth by adapting to the changing environment, without losing the focus on our core domain of financial services. Our NBFC and lending business accounts for 68% of our consolidated income in FY13 and has a diversified product portfolio rather than remaining a mono-line NBFC. We are a leader in distribution of life insurance and mutual funds among non-bank entities. Although the share of equity broking in total income was only 13% in FY13, IIFL continues to remain a leading player in both, retail and institutional space.

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  • 1 year later...
  • 2 months later...

Looks like this never materialized.

 

This is latest shareholding pattern:

 

http://www.bseindia.com/corporates/shpperent.aspx?scripcd=532636&qtrid=84&CompName=IIFL%20Holdings%20Limited&QtrName=December%202014

 

Does anyone know if HWIC increased their stake to 18%?

 

IIFL has in controversy recently related commodities trading NSEL:

 

http://articles.economictimes.indiatimes.com/2015-03-04/news/59767076_1_nsel-scam-mpid-act-jignesh-shah

 

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  • 3 years later...

Yes - have been following it closely.  Hold a large holding in Fairfax India.

 

I'm not clear on the reasons for IIFL's collapse in share price. 

Wonder if its due to the volatility of the Indian markets or perhaps a compression of PE values.

EM markets don't look particularly strong at the moment.

Wonder if there will be a contagion to NA markets.

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A user on reddit mentioned the decline is related to the way their debt is structured. There is lots of CP that is rolling over in the next few months with possible liquidity issues.

 

IIFL is explicitly mentioned in this article about India's NBFC problem:

 

https://www.bloombergquint.com/markets/hold-tight-heres-why-the-nbfc-scare-isnt-over-yet#gs.UmG_YIo

 

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Thanks for the article. Sounds like the perfect explanation.

 

All I'd say, is that is an amazing opportunity for Fairfax India - to provide more liquidity to IIFL in exchange for more equity.

 

IIFL is not going anywhere but up in the long run given its growth rates.

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ICUMD,

Drinking the Modi KoolAid eh? In the end it all delends on the India thesis. If oil spikes as seems likely, and if there is a global slowdown in trade of goods and services, which is also a real possibility, then the Rupee will likely crater.

Mr Modi's policies are centralizing power and control and I just do not see that as a recipe for economic success in a country as vast as India.

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I don't let politics enter my decision to invest or not.  Larger trends always prevail.  Growing wealth and population leading to more travel, banking and investment services.  Modi or no modi.  I do think he has liberalized foreign entry to India's businesses, aadhaar will be crucial to business and transactions.  These he has brought to the table and are here to stay. Rupee will always depreciate.  India's businesses will always grow.

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