How rich are Sehgals?

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VARUNI2014

@VARUNI2014

Rocker

Posted: 6 years ago

#11

Originally posted by: nuomi.riceball

Actually no Varuni ji. The safest way to do these kind of business is find investors instead of borrowing to the banks.

Waise usually banks will not give 100 % of the asked amount. See if you need for example 100 crores the banks usually only want to lend 50%-80% of the amounts needed. That too with a project that is still not sure whether it will be successful or not.

It's not like the project has a sure projection of how the sales is going to do. They cannot collateral their AR. They need other collateral in here.

If they gather investors. The investors will also share the risks in case the projects goes south. Should the project goes south. Getting a loan from the banks will make them in debts. Getting money from investors will not have that kind of risk.

Usually investors are given shares to the projects or perpetual royalty for their money. But they also share the risks involved in the projects itself.

Investors ..won't invest. If they sense risk ...

This is not a star hotel in center of city ...these types of projects u have to get loans from banks only ...

Also they escalate cists and take Lian 100 percent ..like they say pptojecg cost is 300 crs and they get. 150 cr loan ...and actual cost of project is 150 crs only

Recent 10 lakh cr bank defaults ...all these type only ...

So hair cut for banks when they go to recover these assets it is 50 percent ...though in out country real estate always increases with yes . Still banks getting haircut 50 percent..it's bcos fake escalation of project costs..

U bribe the concerned politician for 20 crs escalate project cost to 300...get 150 cr loan...give politician bank official 20 crs...

Almost every project in India same thing may be exception for tatas and Ambanis

Getting loan from bank is much easier than searching for investors ..why adani. Lanco ..loans ..90 percent banks only ...and they fo thothoudands crs projects ..still they prefer banks

Quote

nuomi.riceball

@nuomi.riceball

Sparkler

Posted: 6 years ago

#12

Originally posted by: VARUNI2014

Investors ..won't invest. If they sense risk ...

This is not a star hotel in center of city ...these types of projects u have to get loans from banks only ...

Also they escalate cists and take Lian 100 percent ..like they say pptojecg cost is 300 crs and they get. 150 cr loan ...and actual cost of project is 150 crs only

Recent 10 lakh cr bank defaults ...all these type only ...

So hair cut for banks when they go to recover these assets it is 50 percent ...though in out country real estate always increases with yes . Still banks getting haircut 50 percent..it's bcos fake escalation of project costs..

U bribe the concerned politician for 20 crs escalate project cost to 300...get 150 cr loan...give politician bank official 20 crs...

Almost every project in India same thing may be exception for tatas and Ambanis

Getting loan from bank is much easier than searching for investors ..why adani. Lanco ..loans ..90 percent banks only ...and they fo thothoudands crs projects ..still they prefer banks

Investors will invest if they sense opportunites.

Yes, this is not a star hotel in the center of the city. However, this is a hotel where people especially nowadays in the busy and highly stressful society and communities often take short getaway to the country. It is actually pretty potential since they are building the hotel around the Haveli. There could be resort and spa as well as I dunno maybe some kind of relaxation meditation for the guests to do. Plus, with the Haveli intact, the existence of rainwater. People actually can also do a lot of sightseeing. It is actually a perfect place to do some getaway. This place is actually potential to become maybe not 5 stars hotel, but at least 4 stars hotel.

The investors will definitely see that opportunities and would want to invest with that kind of potential.

If they took loans from the banks. Banks usually do not want to take collateral from the clients, if the clients itself is just making land collaterals. Usually there has to be somekind of building constructions on the land itself. However, the building constructions here on the land are nothing but 3000 years old Haveli. The Haveli itself wouldn't be eyecatching and interesting enough for the banks to do appraisal on the buildings. Usually in this case the banks might ask for another fiducial collateral. Or better yet back to back collaterals here.

Plus, The Sehgals will not be able to put their AR as collateral since they are borrowing money for the construction of the hotels itself as opposed for the management of the hotels or for expanding the business. Getting loans from the banks might be cheaper in terms of interest rate, yet banks usually will have difficult procedures to be met. And of course there is also the fact that the project might go south. If the projects go south, then not only the projects will be cancelled, but the Sehgal will also be indebted to the banks and on top of that the interests of the banks. Plus, these kind of projects might not be bankable yet.

Getting money from investors will be the safer route for the Sehgals. They share the risk together and all the Sehgal needs to do is either soluble their equities and give it to the investors. Or the investors might put some clause getting royalty from the hotel's revenues. Plus, if the projects went south, they will share the risk and the Sehgal will not in as much debts from the banks.

I also think that the Sehgals might also take a loan from the banks. But, they will also have to look equities against loans in their books. They cannot very well funds everything based on a loans from the banks.