Terrific points for discussion
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preference share has face value 400 ! can someone justify such high face value
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preference share shall have 5% dividend on preferential basis
I am attaching document which I received today morning
This may be another option circuit in making. First without any reasons giving bonus share at the same issue of preference share. Terms definetly look against existing shareholders of company and can dilute per share earnings. 70 car can easily raised through debt or right issue if company in need of fund for expansion. It cast shadow on intent of promoters and management.
The preference shares (CCPPS) are convertible into 2 equity shares of FV of 5 each. The price of each CCPPS is Rs. 471, which is equivalent to Rs. 235.5 of each common equity share, which is around a discount of about 22% to CMP of Rs. 300-odd. The discount appears to be on a slightly higher side.
However, the FV of Rs 400 implies that only 14.86 lakh CCPPS have been issued, which would mean an additional 29.72 lakh equity shares upon conversion. On current no. of equity shares (post todayâs bonus shares) of 434 lakh shares, this is a dilution of about 7%, which is not so bad.
Missed out adding:
The CCPPS holders are eligible for same dividend as declared to the common equity shareholders.
Only at the time of conversion, they are eligible for additional dividend of 5% per annum (that is Rs. 20 on FV of Rs 400 for each year). Assuming 2 years for conversion (this is not clear from the document), the cost of each converted equity share for the CCPPS holder would further reduce by 40 (Rs 20 dividend for each year), which increases the discount. It certainly appears as if Westbridge bargained hard and got a good deal. Views from experts invited.
Vinay - Just one correction. When the deal was struck, the market price of the shares was Rs. 460-470 per share. There was no discount.
Dear Abhishek,
You are eligible for bonus shares in the ratio 1:1. Hence Ex-Bonus price there is a drop. Record date for bonus is 02-04-14. Check whether you had shares in your DâMat A/c by this date.
Thanks Piyush and Venu.
Was worried because the it said record date of 2nd but the shares still donât get reflected in my account. I understand that it takes 7-10 days for bonus to get credited. Hopefully this week itl be in my account!
Abhishek.
Conversion time is 1 year.
Now after all this corporate actions, I think promoters are keen on attracting more institutional investors both domestically and globally. New Asset allocation strategy must work, otherwise management may lose credibility.
Kunal
Did anyone get the bonus shares in their demat accounts ? I still have not got it. Appreciate feedback! Thanks a lot.
Subbu -
Iâd mine credited on April 8th to my demat a/c as per the SMS from NSDL. I checked my trading account as well and it was credited. Please check as by this time you shouldâve been credited with the bonus shares.
Axis bank has started accepting Mayur Uniquoters as securities for pledging acceding to my request along with Astral Polytechnik. They are already accepting Repco Home,Page Industries and have a large no of approved scrips.
One can also sell the pledged securities through them
For any help one may approach Utsav Anand at 09911439099 n Pradeep Sharma at 09899318222
vivek, can you explain how this works ? i have axis bank LAS account and whenever i need to sell, i have to call them to release the stock from pledge and it takes about 1 day to get into my dmat account. so i can only sell next day from my broker iifl.
are you saying we can ask axis bank to sell the pledged shares and credit the amount to LAS account ?
overall a friendly service and low rates. i use this account for my opportunistic portfolio.
vivek, can you explain how this works ? i have axis bank LAS account and whenever i need to sell, i have to call them to release the stock from pledge and it takes about 1 day to get into my dmat account. so i can only sell next day from my broker iifl.
are you saying we can ask axis bank to sell the pledged shares and credit the amount to LAS account ?
overall a friendly service and low rates. i use this account for my opportunistic portfolio.
Bala yes precisely. In case you donât have funds with you to pay back to Axis Bank you can sign a letter with instruction to sell the specific stocks. But it may take 1 day extra for the entire process to be complete.
Hi vivek, do we get net banking facility for LAS account? Would it be possible to do pledge /unpledge from netbanking & can we transfer funds etc. Sorry if I sound naive. I got an las account opened recently all I have got is a sanction letter and cheque book.I checked with many branches here in blore .no one could give this info or tell me how to use this.
Btw is the rate of interest 12.5 % or would they agree for lower.
Sorry if I strayed offtopic.
hi mvalue,
you can see the LAS account in net banking, you can do fund transfer, you can see the limit, already used etc. but you cant see what stocks are pledged, you cant do unpledge. you can simply call the manager to release the stocks, he will do it. also ask for account statement which will have details of all your pledged stocks. interest rate can be negotiated depending on the relation
thanks bala. Appreciate your help. Havent played with this double edge sword of leverage. Interesting times ahead 
Hi,
Everything seems to be great about this company but i fail to understand what is the competition doing? I mean if i have money and i see that there is a company which makes a completely undifferentiated product, for which the technology and plant and land can be bought easily and i too can contact all its clients and follow the usual process of sales pitch, product validation by client and if successful, start supplying the material to them, not a too big deal. But why competition fails to do this, ROE is huge, year after year this company is throwing out cash so what is stopping other people to join the fray???
Doing business is not that easy. Indeed itâs a big deal. Mayur is known for quality, timely large scale delivery model.
Mayur is an example of excellent âoperational excellencyâ, where most of the peer businesses canât make it