Author Topic: Fairfax India new issue  (Read 80052 times)

rohitc99

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Re: Fairfax India new issue
« Reply #210 on: January 13, 2018, 09:21:29 AM »
Not really, indian markets were up in december, including IIFL which was up close to 10%. again quite a few of the assets such as BIAL are not listed. irrespective of the reason, the drop was good to raise the position


obtuse_investor

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Re: Fairfax India new issue
« Reply #211 on: January 13, 2018, 03:19:53 PM »
Youíre probably right. I donít follow the Indian market. And trying to attribute reason to some of mr marketís actions is not really worth the time.

I happily used this buying opportunity to substantially increase my exposure.
Value Investor who manages his personal portfolio with a 25-45 year time horizon | @obtuse_investor

hobbit

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dartmonkey

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Re: Fairfax India new issue
« Reply #213 on: February 09, 2018, 03:07:55 PM »
Just to come back to the share repurchase, the NCIB was announced on Oct 4, with the shares at about $18, presumably indicating that management was confident that it was undervalued there. Since then, we had the Qe report (Nov 2nd) indicating holding that were about half public and half private.

On the public side, 2 holdings: IIFL (85m shares, worth $787m on Sep 30th), and Fairchem (19m shares, worth $113m). Then there is the private side, with Sanmar bonds ($323m), BIAL (very conservatively valued at $592m), NCML ($184m, Saurashtra ($34m), NSE ($40m) and Sanmar equity ($1m) for a private company total of $1173m.

I just looked at the 2 public holdings, and if my calculations are right, they were at the same value on Dec 31st (for the purposes of the Q4 report, due next week I think), but they have gone up over 20% since then, mostly because of IIFL. Meanwhile, the other big holding, BIAL, is very likely worth substantially more, at least FIH thinks so, since the price they paid for the latest 10% stake gives their whole stake an implied valuation of close to $1b.

It will be interesting to see if they took advantage of the Nov/Dec price dip in FIH shares to buy back some of their 3.5 million share NCIB (4% of the public float). I certainly bought some - now my #3 position.