I see that many of us have doubts about long term benefits for minority shareholders. It maybe that some decisions not in favour of minority but if we look at returns of Grasim over longer period of time, it is good. Idea is in wrong business but can we just look at long term shareholder value created by Grasim or even the earlier holding company of Aditya birla nuvo? Also, I feel that groups which go for demergers create more minority shareholder value than those which go for IPO? Please correct me if I am wrong here…because in case of IPO, holding discount comes for parent plus we do not get he new business (unless we buy in secondary market) but in case of demerger, the management shares the new company in same proportion with minority shareholders.
If anyone can give more details on when and why company go for demerger or IPO (except in IPO they get new capital)…and which benefits the minority shareholder more in long term?