[Archived] Could Venky's Be Forced To Sell?

[True Blue & White]

I haven't looked at this since the club bought us, at which point they looked like a company on the up. I did warn the majority who were optimistic at the time to be mindful over a company that was going through a boom and how it could quickly go down as quick at it has shot up and sadly (or gladly depending on how you look at it) that seems to be happening.

Here is a graph that represents Venky's share price over the last year.....

The green dot is their all time high price and coincides with the time they bought us (November 2010). Their main company has nearly halved in value since they took over at Rovers. If we look at a longer range graph we can see the rise and fall of Venky's India Ltd in all it's glory....

From that we can see that for the majority of time we were up for sale (2007-2010), Venky's as a company were worth a fraction of what they were when they acquired us. It makes you wonder if anyone raised the question at time if it should be a warning that the company's success had come so recently and maybe advised them to see if this growth was sustainable.

I think the important bit here though is the trend of the price since they took over at Ewood. They seem to be heading back to where they were 4 years ago which financially will be devastating for them (and us should they remain owners).

Maybe the interested parties and advisors (business not football) are putting massive pressure on Desai & the Raos to get rid of this side project, linking the bad press with the drop in value, to get back concentrating on getting their main company back on track.

[mhead]

Pressure then has to ramp up til start of season.

July 21st and 25th at Accy and Rochdale away 'friendlies' will be very tasty.

Banners and voices.

[Earlydoors]

So what's the current valuation of Venky's ?

Thought their figures at takeover were something like turnover £100m, profit £10m

Surely they must be in danger of that being wiped out by operating loss at BRFC?

[arbitro]

Is there any way of finding out who their major shareholders are? If we could maybe make them aware of the situation and crank up the pressure from another angle.

[philipl]

Is there any way of finding out who their major shareholders are? If we could maybe make them aware of the situation and crank up the pressure from another angle.

There are four major non-family shareholders and they are very concerned with Venky's poor performance at Rovers and distraction of focus from core activities.

[JAL]

Wonder if Venkys are thinking why are all these Blackburn, English people are giving us grief, when its their own British people who've got them into this mess. Just a thought.

[Kelbo]

Wonder if Venkys are thinking why are all these Blackburn, English people are giving us grief, when its their own British people who've got them into this mess. Just a thought.

???? its like saying, why should I get jailed for bringing drugs into the country when it was someone else who gave the drugs to them!!

They know and knew exactly what they were doing and its backfired on them, I feel pretty sure that someone will investigate the finances and movements of money through SEN/Kentaro quite soon

[arbitro]

There are four major non-family shareholders and they are very concerned with Venky's poor performance at Rovers and distraction of focus from core activities.

Thanks Philip. Are their details available anywhere so I could write to them and tell them a few homes truths (politely of course)about how Blackburn Rovers are being run.

[SIMON GARNERS 194]

Weren't Venky's qouted as saying they would not sell the club back to any European based buyers?.In Hindsight,with all that is going on with rumours about possible wrong doing,what a bloody odd thing to come out with.

[Pedro]

I haven't looked at this since the club bought us, at which point they looked like a company on the up. I did warn the majority who were optimistic at the time to be mindful over a company that was going through a boom and how it could quickly go down as quick at it has shot up and sadly (or gladly depending on how you look at it) that seems to be happening.

Here is a graph that represents Venky's share price over the last year.....

The green dot is their all time high price and coincides with the time they bought us (November 2010). Their main company has nearly halved in value since they took over at Rovers. If we look at a longer range graph we can see the rise and fall of Venky's India Ltd in all it's glory....

The green dot represents the ideal time to sell shares, the red the ideal point to buy them back...

[Tarka]

There are four major non-family shareholders and they are very concerned with Venky's poor performance at Rovers and distraction of focus from core activities.

Institutional I'm guessing Philip?

[Ricky]

Just a question and not a suggestion that anything like this has happened, but:

Could a company have its share price increased if an outside company invested around £25m into it over a period of time prior to its share peak??

[yoda]

Wonder if Venkys are thinking why are all these Blackburn, English people are giving us grief, when its their own British people who've got them into this mess. Just a thought.

Its the Venkys that caused the problems, or are they problems to them!

[stuwilky]

The green dot represents the ideal time to sell shares, the red the ideal point to buy them back...

If you have a time machine.....

[Majiball]

If you have a time machine.....

Best call Matt Smith.

[BPF]

There are four major non-family shareholders and they are very concerned with Venky's poor performance at Rovers and distraction of focus from core activities.

[rhodie]

So what's the current valuation of Venky's ?

Thought their figures at takeover were something like turnover £100m, profit £10m

Surely they must be in danger of that being wiped out by operating loss at BRFC?

[/quote

The VH group profit after tax in sterling up to march last year is in the region of £83 million.That`s at todays exchange rate according to the audited group accounts.The confusing thing is the crore,lakh,rupees terminology they use when converting the currency.As far as I understand it 1 Crore=100 Lakhs,1Lakh=100,000 rupees.I`m not sure but I think some have miscalculated figures because of confusion on values.

[alexanders]

Seriously if its true that they have a turnover on £100m thats just ridicilous.

What is the equity in the company ?

[JAL]

Would love to see one of you creative guys come up with a caption of the three Raos each with their heads shaven, riding on a donkey (location upto you), with a necklace of shoes around their neck, and some British children in the background crying in their Rovers shirts then put that out to the Indian media.

[67splitscreen]

Seriously if its true that they have a turnover on £100m thats just ridicilous.

What is the equity in the company ?

I really don't think the full picture is given from one years accounts, sportingintel paints a completely different picture to the family fortune, 3 times their business value. My link

"The Rao family are worth three times more and their business is riding the crest of the Indian economic boom. The VH Group consists of 28 companies in India with a collective turnover in 2010 of close to £1bn and group profits of about £100m. Growth is forecast at 15 per cent per year. There are no external partners and no debt. Acquisitions, including Blackburn Rovers and a new £130m vaccine plant in Switzerland, are made in cash. The company are not listed but could fetch about £1.5bn if sold, although that is not on the cards. With an extensive property portfolio, the family are probably worth £2bn, perhaps more. Demonstrably they have money to invest where they see fit."

From what we have witnessed, someone somewhere has got their figures wrong or the conspiracy theories are correct or MS Desai does not see us a worth while project.

[tomphil]

I really don't think the full picture is given from one years accounts, sportingintel paints a completely different picture to the family fortune, 3 times their business value. My link

"The Rao family are worth three times more and their business is riding the crest of the Indian economic boom. The VH Group consists of 28 companies in India with a collective turnover in 2010 of close to £1bn and group profits of about £100m. Growth is forecast at 15 per cent per year. There are no external partners and no debt. Acquisitions, including Blackburn Rovers and a new £130m vaccine plant in Switzerland, are made in cash. The company are not listed but could fetch about £1.5bn if sold, although that is not on the cards. With an extensive property portfolio, the family are probably worth £2bn, perhaps more. Demonstrably they have money to invest where they see fit."

From what we have witnessed, someone somewhere has got their figures wrong or the conspiracy theories are correct or MS Desai does not see us a worth while project.

He was being fed that line just after the takeover but im pretty sure he's back tracked a bit since then. It would seem he possibly got his £'s mixed up with the Indian way of currency like everyone else

[Majiball]

I really don't think the full picture is given from one years accounts, sportingintel paints a completely different picture to the family fortune, 3 times their business value. My link

"The Rao family are worth three times more and their business is riding the crest of the Indian economic boom. The VH Group consists of 28 companies in India with a collective turnover in 2010 of close to £1bn and group profits of about £100m. Growth is forecast at 15 per cent per year. There are no external partners and no debt. Acquisitions, including Blackburn Rovers and a new £130m vaccine plant in Switzerland, are made in cash. The company are not listed but could fetch about £1.5bn if sold, although that is not on the cards. With an extensive property portfolio, the family are probably worth £2bn, perhaps more. Demonstrably they have money to invest where they see fit."

From what we have witnessed, someone somewhere has got their figures wrong or the conspiracy theories are correct or MS Desai does not see us a worth while project.

I don't think they got the figures wrong just that they never intended to put their money where their mouth is, as along it was all about taking money out.

[ABBEY]

Wouldn't matter if they had 10 billion , they are clueless .

[67splitscreen]

I don't think they got the figures wrong just that they never intended to put their money where their mouth is, as along it was all about taking money out.

My thoughts too, but unless a buyer is in the offing, they may have to rethink, hence the next month quotes, doubt they will though.

[philipl]

I really don't think the full picture is given from one years accounts, sportingintel paints a completely different picture to the family fortune, 3 times their business value. My link

"The Rao family are worth three times more and their business is riding the crest of the Indian economic boom. The VH Group consists of 28 companies in India with a collective turnover in 2010 of close to £1bn and group profits of about £100m. Growth is forecast at 15 per cent per year. There are no external partners and no debt. Acquisitions, including Blackburn Rovers and a new £130m vaccine plant in Switzerland, are made in cash. The company are not listed but could fetch about £1.5bn if sold, although that is not on the cards. With an extensive property portfolio, the family are probably worth £2bn, perhaps more. Demonstrably they have money to invest where they see fit."

From what we have witnessed, someone somewhere has got their figures wrong or the conspiracy theories are correct or MS Desai does not see us a worth while project.

Sorry but that is completely wrong.

Even the VH website doesn't make such exaggerated claims about the worth of the Group.

Venky's India turns over £170m making £10m (last year- profit almost certainly down this year). Of that, VH only OWNS 53% so their share of profits is £5m.

VH group claims to have a turnover of about £600m although I have a private Indian analysts report assessing it as quite a bit smaller- around £470m.

The 28 Group companies includes several dormant companies including at least one which went through the Indian equivalent of administration.

Venky's spout drivel on the odd occasion they say anything. Why Rovers fans spout drivel on their behalf is beyond me.