Before the market open on Thursday the 11th of April, Findi entered into a trading halt pending an announcement. (Trading Halt Request)
I assumed this was in order to finally announce they had been granted final approval for their white label licence in India (through their subsidiary TSI - Transaction Solutions International). There was however, plenty of speculation that if this were the announcement, they wouldn't have entered a trading halt and instead just made a price sensitive announcement.
A few people floated the possibility that their licence was knocked back, or some other issue arising... but as of pre-market today, Findi released their announcement that Findi was granted in-principle authorisation for White Label ATM's
My key takeaway from this announcement is not the fact the licence was approved, it was this comment:
- "Securing a White Label ATM licence is also a key pillar for our strategy of becoming a full Indian transaction bank, as well as positioning us to participate in the long-anticipated industry consolidation and to complete well advanced acquisitions"
Today's announcement won't do much to the overall valuation (looks like the market didn't really care for it either, as the SP has dropped around 3.5%) as I believe the current SP is already priced in for the White Label licence, however I eagerly await FY2024 results in May and a few possible announcements in relation to some M&A.
Over the last six (6) months or more, the Findi SP has been going from strength to strength.
The SP has now far exceeded my bull case valuation of around the $2.92 mark, so I've been having the good problem of trimming my position as it begun to exceed my comfortable weighting within my portfolio. I'm still holding a larger weighted portion than I normally do, as I'm still bullish on the company and the overall economic growth in India as a whole.
What's changed over the last few months?
On the 30th of January 2024, Findi received $10.7 million in cash and issued just about 12 million new shares in the company.
On the 1st of March 2024, appointed a new CFO, Alastair Williams.
- If someone could explain his Employee Share Option Plan to me that would be great... does this mean that he can exercise these options, at the below prices, even if she actual SP is below the $2.50, $3.00 and $3.50?
On the 11th of March 2024, Findi released an update on the progress of their white licence agreement.
- Findi answered all outstanding questions from the Delhi Reserve Bank of India (RBI) to their satisfaction and the approval process has moved through to the final approval stage which will be done by the Mumbai RBI.
- They noted that they expect the final approval imminently... whatever that means.
... they got a mention in South Australia's 'The Advertiser' - ASX Tech March Winners
Valuation
The valuation I made on the 13th of March still stands. At todays price of $3.18 (with a high of $3.40 today), I think it's overvalued...