Lasa Supergenerics Limited


#66

It sounds ridiculous the way they are justifying selloffs in each other’s stakes in companies. There could be genuine difference of opinion or animosity between father - son but what does it say about their business skills? Can’t they settle differences within their homes and swap promoter stakes so that this public display could have been avoided. I would rather believe this is all premeditated as a scheme to reduce debt. If it is true, what does it say about their own outlook towards ongoing biz. They display lack of confidence in their own biz which could have forced them to take this route. It is like ‘since I have made a cake (value from demerger), I have the first right to eat it and may be the significant portion’.

I searched my old notes when I did some analysis 4-5 yrs back. I found the IIT guy a sensible 1st generation entrepreneur but his son is too aggressive and can be called as brat. I can’t give anymore supporting argument on this now. One can ignore it as well.

So as an investor we need to be sure about - are you willing to partner a guy which shows a) lack of sensitivity towards minority investors b) Lack of confidence in own biz c) lack of effective negotiation skills or conflict resolution skills.

disc- No stakes


(nkgambhir) #67

A demerger ( whatever might be their reasons for it ) in which they give free shares of a company in a high growth industry, does not display a lact of sensitivity towards minority shareholders. Further , we have also to keep in mind that they have been selling their own stake in OMKAR and have lent the sale proceeds to the company at zero interest. This shows their confidence in the future of OMKAR . Finally , if the father and son are finding it difficult to get alond, due to a generation gap or due to being in a different industry or due to other miscellaneous factors, then it is best to part ways. This shows that they are not hesitant to take tough decisions .

Equity investments can never be risk free. The most critical variable, in my view , is the quality of management ( skill and integrity) of the company you re invested in. Omkar Herlekar is managing LASA, ever since it was acquired in 2012 , and the growth of LASA from a turnover of 1 crore to the present 200 + crores, has been very good. Based on this we are judging the management as competent . Let us hope that company does as well in the future as it has done till now.


#68

Last heard we are in a bull market so they could pledge the stake to a sensible NBFC to raise cash since value is discovered largely? I am also surprised they could not find HNIs, MFs for block deal. May be they know little more about the family than us.

Could they communicate their grand (desperate?!) plan to pair stakes in advance? This is not a requirement but calls for adequate disclosure as a part of sensitivity.

If veterinary API biz is so attractive, Mr. Father must be a big fool to sell it so prematurely?

If everything is all fine, does it mean that both want to show each other down? What is the guarantee that they will not create troubles for each other going forward?

well, I made 2x in sequent scientific and did some analysis on veterinary API sometime back. Yes, there is a shortage of generic suppliers but there is no entry barrier as such. Regulations are not as stringent as human API so supply response will come at some point of time. Many pharma folks are struggling so if the sector remains attractive, they will come in search of returns


(Mukesh Amar) #69

I assume there is too much fuss about the non issues here. There is literally no need to be Byomkesh Bakshi of the family saga. In businesses things don’t pan out the way it is expected. If only both the owners were accommodative of each other’s concern they would not have split at the first place. And after the split who is doing what to the other company / or the shares that he own is not a promoters problem. Also if you are just not comfortable with the idea / business there are thousands of other ideas out there. Why stretch the fuss here?


(pankaj pant) #70

if Lasa s operating at 40% capacity, where is the need for unit 5 in near term as it will only add to operating expenses . Am i missing anything here.


(Akhil) #71

Why reduce debt though? Lasa is supposed to make a lot of cash from operations and there are no immediate capex requirements as far as we know, so it should be able to manage its debt effectively without additional fund infusion. So there can be two possibilities according to me - either Lasa is not that great a business we think it is, or Unit V is going to start operations very soon which will require additional working capital.


(Utkarsh Pandey) #72

It is including Unit V. I have taken total Capacity. Unit 5 is ready to be commissioned.

But Management has been facing issues regarding Unit 5 commissioning and they are not very forthcoming in expressing what exactly the issue is. They were pretty confident that Unit 5 would be commissioned by Q4FY17 but that didn’t happen. It remains to be seen if after listing of demerged entity, process to commission unit 5 will speed up.


(nkgambhir) #73

As is obvious from the post by Utkarsh, the startup of Unit 5 would more than double the production capacity. After that it would probably take some time for a correspondig rampup in the sales, depending on the demand supply mechanics in the industry and the marketing team of LASA. BTW, the startup is scheduled for late October, that is q3 FY18.


(Pdshah) #74

Who gave you start up date of late october


(nkgambhir) #75

I had sent a query in September, to which they had replied . Today I asked them to reconfirm and they have promptly reconfirmed the startup date as late October.


(ASHEESH) #76

965d5270-222e-4a59-83e6-3a3b2623459b.pdf (107.9 KB)

Latest announcement on Bse…Pravin has only 0.5% stake left in LASA…


(amil) #77

Any information as to who holds “pledged / encumbered shares” 5.93%? I mean not the NBFCs name but who is responsible for its repayment and depledging? And same for Svaks Biotech co? Any idea?

Also, Rishikesh and Omkar Chem (the company) together have another 12+%.

After the 30 Sep results, these things needs to be clarified in con-call or if anyone is going to meet mr.omkar


(Ritesh) #78

FYI - 10 percent owned by Omkar specialty is locked in for three years or so


(nkgambhir) #79

If anyone has any info about Lasa moving out of t2t segment , pls share .


(Chintan Shah) #80

Mr. Omkar in his interview on listing of LASA said the below.

But now that his dad Pravin, has sold most of his LASA shares, how will the exchange happen ?

Regarding the debt, he mentioned it is around 70cr which is lower than what they had during de-merger and that is because debt is retired with ICD from Mr Omkar.

This, to me looks too good to believe. Why will someone give loan and not increase the stake when the valuation is lucrative and future seems so bright .

Also regarding unit 5, I had sent an email to company asking for the status to which they replied that some statutory approvals are pending and it will be operational in IMMEDIATE future. As the term IMMEDIATE, is relative we will have to monitor their actions.

Disclosure: Sold most of my position today.


#81

And that is what Omkar P Herleker did !!!.

Release the pledge of 800069 OSCL Shares and sold 695000 of them. The details of selling is not traceable in the bulk trades. Also despite the earlier notification to the exchanges that Omkar is not a promoter, Omkar address himself as the promoter of OSCL in the notification

This info was notified to the exchanges as per the details here:

Not sure if this intimation is part of the sale which was done prior to Lasa Listing. Here is the time interval during which these shares were sold.

http://www.bseindia.com/xml-data/corpfiling/AttachLive/798BE8F3_5FEB_470A_9CE7_8136FD8129FB_171616.pdf

http://www.bseindia.com/xml-data/corpfiling/AttachLive/BDEC35C5_6DF9_4322_80F4_0D7AE3CDDDEC_145744.pdf


(nkgambhir) #82

Basically, it all boils down to one question. Do you trust the promoters of OSCL and LASA , or not ? If you do not trust them, then selling the shares , lock , stock and barrel, and getting out would be a better option. If you trust them , then let them do what they have promised. Instead of getting into the nitty gritty of how they are doing it, allow them some time. They are first generation entrepreneurs and not deep pocketed individuals, so, if we trust them , let us allow them some space, instead of overanalysing.


(sta) #83

Could someone clear the final share holding. The release is a little confusing


(nkgambhir) #84

As Pravin Herlekar and Rishikesh Herlekar are not the promoters ofLASA, so the actual promoters sake is around 35 %. Let us see how Omkar Herlekar fulfills his promise of raising his personal stake to 40 %.


(Bhaskar Jain) #85

Putting this post since my earlier posts had disclaimer of my interest in Lasa::
I have exited Lasa completely today from all my family accounts, ended up cumulatively with a decent return ( OSCL buy was at 164/- nov2016, sold out at 99/- july2017-. Lasa sold today at 149/- ). I will be watching Lasa and OSCL from the sidelines since I have not been comfortable with the promoters for some time and this was one of my open positions in the portfolio which was causing me stress. I am a risk-averse conservative investor and prefer not to track my companies every hour :slight_smile:

All the best