Prem Watsa Acquire ADI Finechem Limited

     Prem Watsa (Fairfax India)  has entered into an agreement with existing shareholders of ADI Finechem Limited ("ADI") to acquire approximately 45% of the outstanding shares of ADI at a price per share of INR 212 per share (collectively, the "Shareholder Transaction") for total consideration of approximately INR 1.3 billion.

ADI Finechem Limited is one of my portfolio stock which was under-performing in the recent past .

Current price is very attractive opportunity to enter or increased holding in it . Now it will Prem Watsa  company and liked by Sanjay Bakshi . If I am not wrong then Sanjay Bakshi already like this stock and not sure if he holds it or not. I am not able to recollect where professor Sanjay Bakshi has mentioned about liking of this stock . But one thing is sure he has high liking for Prem Watsa  .

If you are long term value investors then I can see there is very limited downside at current price around 225 , but upside is high in the long term.


http://www.bseindia.com/corporates/anndet_new.aspx?newsid=68E6A74E-1091-44A4-8EEF-F28EFA2550E6 

Prem Watsa, Chairman and CEO of Fairfax Financials, has compounded book value at 21.2% and stock price at 19% since 1985. There was a great deal of excitement when Fairfax took over the Thomas Cook operations in India.


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Venture Capitalist Vs Value Investors

             Generally, Venture Capitalist and value investors don't talk to each others and explain their valuation methodologies .  There is a gap . Both are critics of each other, but never get on the same page.
We as value investors make fun of Venture Capitalist on social media , they should also doing same but not sure about that :) .

What is the definition of Venture capital? 
            Venture capital (VC) is money provided to seed, early-stage, emerging and emerging growth companies. The venture capital funds invest in companies in exchange for equity in the companies it invests in, which usually have a novel technology or business model in high technology industries, such as biotechnology , IT and now a days e-commerce.

Bridge between Venture Capitalist  and Value Investors (or Secondary Market Investors )
        Professor Aswath Damodaran has made attempts to provide some bridge . If you don't know Aswath Damodaran then he is a Professor of Finance at the Stern School of Business at New York University (One of worlds top ranking business school , maybe 5-6) , where he teaches corporate finance and equity valuation. He is another professor like Professor Sanjay Bakshi from whom we can learn lots.

Please go through his following Talks at Google .

He also nicely explains valuation for the life cycle of a company.

http://www.valuewalk.com/2015/10/aswath-damodaran-the-corporate-life-cycle-investing-finance-and-management-lessons/

Valuation of loss making companies in sunrising sector e.g. Uber .

The Uber Narrative Rollercoaster: A Wild Ride!

There are other videos of Aswath Damodaran are available on you tube . Please go through them whenever you get time . Defiantly, You will learn something new. You can also follow him on his blog http://aswathdamodaran.blogspot.in/



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