“H
DFC has upfront charge of 60%, which is much higher than its peer groups. Thus it takes an investor a longer time (7-8 years) for fuller realisation of their investment. Moreover, with an aggressive growth plan which is highly market oriented, the company is missing out on educating the investors about their own products,” reasons one analyst to 4Ps B&M on the condition of anonymity. Nonetheless with Chubb walking out of the JV, HDFC is swimming against the tide. In a bid to finalise a foreign partner, it has short-listed three names and is in the process of assessing the best fit. In such a scenario, the questions doing the rounds are regarding the amount of premium that HDFC would be charging its new foreign partner. Well, it doesn’t take rocket science to figure out that HDFC is not into the ‘grab as much as possible’ business, while its aggressiveness has never been better. But the name HDFC is still not giving returns. Nevertheless, the institution enjoys stupendous financial flexibility considering the fact that HDFC has diversified into banking, insurance and asset management etc.
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Source : IIPM Editorial, 2008
DFC has upfront charge of 60%, which is much higher than its peer groups. Thus it takes an investor a longer time (7-8 years) for fuller realisation of their investment. Moreover, with an aggressive growth plan which is highly market oriented, the company is missing out on educating the investors about their own products,” reasons one analyst to 4Ps B&M on the condition of anonymity. Nonetheless with Chubb walking out of the JV, HDFC is swimming against the tide. In a bid to finalise a foreign partner, it has short-listed three names and is in the process of assessing the best fit. In such a scenario, the questions doing the rounds are regarding the amount of premium that HDFC would be charging its new foreign partner. Well, it doesn’t take rocket science to figure out that HDFC is not into the ‘grab as much as possible’ business, while its aggressiveness has never been better. But the name HDFC is still not giving returns. Nevertheless, the institution enjoys stupendous financial flexibility considering the fact that HDFC has diversified into banking, insurance and asset management etc.For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
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