1/n Deepak Parekh, Chairman, HDFC Ltd. advice to all on the current state: THREAD.
To Companies:
One key advice is to be liquid. Having PE Commitment or Sanctioned Line of Limit is not liquidity. Liquidity is what you have, not some sanctioned piece of paper.
To Companies:
One key advice is to be liquid. Having PE Commitment or Sanctioned Line of Limit is not liquidity. Liquidity is what you have, not some sanctioned piece of paper.
2/n Valuation model is going to change. Companies will be judged on tangible cash flow.
Startup model of Burning cash will not last. Adding to this, he does believe that the future will bring a lot more innovations by them to emerge stronger.
Startup model of Burning cash will not last. Adding to this, he does believe that the future will bring a lot more innovations by them to emerge stronger.
3/n To Real Estate:
Pricing has to come down. In ready inventory, be prepared for reducing costs to sell the
inventory at earliest.
Corporates shall defer commercial property transactions. WFH is not a major disrupter as most jobs are not possible.
Pricing has to come down. In ready inventory, be prepared for reducing costs to sell the
inventory at earliest.
Corporates shall defer commercial property transactions. WFH is not a major disrupter as most jobs are not possible.
4/n To RBI:
Yields have risen, not fallen after repo rate cuts due to an expected increase in Govt Borrowing.
Buy corporate bonds/ CPs in order to fund economic activity.
Allow One-time restructuring of loans.
Yields have risen, not fallen after repo rate cuts due to an expected increase in Govt Borrowing.
Buy corporate bonds/ CPs in order to fund economic activity.
Allow One-time restructuring of loans.
n/n To Developers:
COMPROMISE. GET RID OF INVENTORY. Enhance equity cushion, take as much as you can get.
Focus on completion, even at the cost of new projects.
Look for joint development contracts & debt asset swaps.
AVOID legal battles.
COMPROMISE. GET RID OF INVENTORY. Enhance equity cushion, take as much as you can get.
Focus on completion, even at the cost of new projects.
Look for joint development contracts & debt asset swaps.
AVOID legal battles.
