FND

2.03%

$2.90 findi limited

had the same thought.. but i think it is too much hassle to...

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Barooona

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16/11/23

06:30

Post #: 70927855
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Originally posted by Rampaul: ↑

So firstly, massive shout out to Kathy who if I'm not mistaken had been telling us all for ages to watch this space (hopefully I am not mixing up the thread). Let us all bask in her wisdom.

I think the ownnership share discussion here is a bit off and more importantly misses the point. Today Parimal have acquired the right to a 16.7% stake in TSI for $37.6 million (just ignore for the moment it's actually a debenture and the 8% interest payment). Prior to today, the ownership split was 90% FND and 10% TSI Management. Both FND and management now get diluted, so Parimal have 16.7% and ChatGPT guessimates Findi's diluted ownership share is now 81.67% and management 8.35%.

The key thing here is that Parimal have made a valuation of $190.6 to work out their investment of $37.6 million, with both figures stated in the announcement.

So Parimal have effectively paid $37.6 million for a 16.7% stake of TSI. By that metric alone, the FND ownership share can be valued at $183 million (again thanks ChatGPT maths). The fully diluted market cap assuming all options get exercised is $72 million based on the share price (technically ~$69 if use options pricing to price options). That is a massive discrepency between what an entity in India just paid for an ownership share in TSI vs what the ASX says it is worth. With all due respect to ASX investors (I'm one), in this case you've got to think Parimal are probably in a better position to assess value that will be ascribed by Indian investors at IPO.

I'm still somewhat shaking by what has happened today, but to me the upside still seems nuts. I'd initially logged on to think about whether to sell down, but think would be nuts to.

P.s. Screw the dividend and bring on the buyback. This is coming from someone who was a big advocate of the dividend until today.

P.p.s. As a sidenote/missed opportunity, I don't understand why Parimal just didn't buy on market vs this debentures acquisition. Also why the likes of CMS Info Systems and other players in the Indian ATM market aren't buying/have not bought on market here in my mind beggars belief. They could have easily have accumulated a 10% stake in FND since the SBI announcement that would have been sufficient to block a takeover, with the ATM space in India ripe for consolidation as Nicholas has mentioned in previous presos and surely having an ownership in FND would have made a lot of sense for them unless there was some concern over Indian regulatory/ competition restrictions or something of that nature.

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had the same thought..

but i think it is too much hassle to acquire 16% of the company. ysterday volume is ~3m if you included option, that is roughly ~5% if you combined both share and option total issued

it is much cheaper though compared to what the pay..

although it is not totally similar, with their current structure they are getting 8% interest until they list in India. It will stay as a debt for awhile, which is a decent return for Parimal assuming FND can services those debt interest.

FND are bound to get a debt to build the ATM, i am not surprised if they found the investor to get a debt and instead Parimal suggested to go for equity route half way disccusion.

Still, the valuation though.. a big mismatch.. what is missing??

FND Price at posting: $1.23 Sentiment: Buy Disclosure: Held
5 Upvote

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(20min delay)
Last $2.90		Change -0.060(2.03%)		Mkt cap ! $141.5M

Open	High	Low	Value	Volume
$2.93	$3.05	$2.80	$581.3K	198.4K

Buyers (Bids)

No.	Vol.	Price($)
1	547	$2.88

Sellers (Offers)

Price($)	Vol.	No.
$2.95	547	1

View Market Depth

No.	Vol.	Price($)
2	322	2.750
1	1000	2.710
1	10000	2.690
1	3070	2.600
1	1000	2.550

Price($)	Vol.	No.
3.000	6500	1
3.090	16160	2
3.130	2000	1
3.150	15866	2
3.220	2500	1

Last trade - 16.10pm 03/05/2024 (20 minute delay)


Last $2.92		Change -0.060 ( 0.57 %)
Open	High	Low	Volume
$2.92	$3.05	$2.81	29388
Last updated 15.58pm 03/05/2024 ?

FND (ASX) Chart

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