Thanks for sharing this article, I hadn't realised who Ilwella...

Thanks for sharing this article, I hadn't realised who Ilwella was and good to learn on that. Also a lot of info in the article that is not in the joint Tata/Findi release on the Tata website that was released to Indian market or in Indian ecofin media, so curious to know who is feeding the AFR this info.

On the article and acquisition a few things worth noting.

• Whether or not this is a good deal will depend on how much of the liabilities that have come with the Tata Payment Solutions business. The last financials reports on the Tata Payment Solutions business had a quarterly loss of 3.38 million crore ($0.6 million) and last FY loss of 34 million crore ($6.2 million), and assets of 93 million crore versus liabilities of 248 million crore, so net liability of $28 million. The AFR article mentions $50 million of cash, deferred tax losses that can offset future profit and a bunch of ATM's stored in a warehouse. The question is what liabilities have also come with the assets? https://gamma.tatacommunications.com/assets/wp-content/uploads/2024/10/statutory-financials-q2-fy2025.pdf
• Based on the Tata announcement the net worth of the payment communications business was 104 crore (~$19 million) versus a sale price of 330 crore rising to up to 405 crore ($73 million). Hardly screams cheap compared to the article above. https://gamma.tatacommunications.com/assets/wp-content/uploads/2024/11/agreement-for-sale-of-subsidiary-nov2024.pdf

None of this is to say the AFR article is wrong and in any case we will find out soon enough. The last deal Findi did to buy 75% of TSI was insane value and not long after that there was a crazy differential between what an Indian conglomerate valued TSI and ASX investors valued it at. On face value this could be amazing too but it would be like lightning striking twice and strangely enough in a jurisdiction/market that is not considered cheap based on P/E multiples. Then again we live in a jurisdiction/market where a buy now pay later company that never has made a profit and predominatly traded cash flow negative has a >$4 billion market cap and everyone is happy to pay a 2% tax on transactions to two US card companies cause they can't be arsed going to the ATM.