Minda Industries is adding a good number of companies to expand its product portfolio to cater is current clients. Came across an article of Harita seating merger with Minda and some light on the company’s growth in past years via acquisitions.
Minda Industries merges Harita Seating System
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Any idea on the timeline for conversion of Harita shares in to Minda shares?
It’s been almost 9 months since the announcement of the merger!
Already all approval have come. Now on 19 th nov voting of shareholder and creditors will take place. So safely we can say March 20 . It should come in to effect
Their is very good opportunity in this merger for good return if we buy harita from market
Two scenario # 1 you buy 100 harita from market say at 400 rs u get 152 Minda shares , so u get shares of minda at 263 . If mkt goes down u have as usual risk of investment
Another very interesting scenario # 2
It’s in short I m writing…U opt for preference shares . U get 400 preference shares redeemable after 3 years ( their is option to redeemed in 18 months that I am not considering now)
U get 150 rs each after 3 years with interest. So on 400 rs it’s cool 14 % pa.
Only risk here is if whole merger fails then u are stuck with harita shares.
Ps. I am invested in harita
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Not sure how this whole Pref Share thing works for a marginal retail investor. Are they also held with depositories like normal shares? Where can we check the status on these?Sorry if my question seems naive
Alembic Ltd is also giving similar 3 yr redeemable pref shares post demerger. Haven’t received any communication from the company regarding this till now.
Yes u will get it in demat account like shares after its record date if u opt for pref shares. Or minda shares as the case may be
on 100 shares of harita , one will get 152 shares of minda industries. so those who have minda and want to keep long term can switch to harita proportionetly, as against current price of minda wich is 368 . u get minda at 277 RS (422 HARITA CMP)/152 shares = 277 RS )
ITS AS USUAL SUBJECT TO MKT RISK IF DUE TO ANY CHANCE THIs MERGER IS CANCELLED.
Which seems rare possibility as in both mida and harita this merger is given and NCLT had directed for postal voting on 18 th nov
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Do we need to opt explicitly for options 2 and options 1 is by default?
Is there possibilities that they would only offer options 2?
they will offer u both option in advance. as per me option of minda shares may be by default and for option of preference shares is optional and we have to tell them in advance. they will send forms for both option in advance before record date.
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This arbitrage is why I’ve been adding harita in little chunks for the last 2-3 months. Looks like it has finally caught the eyes of the market and Harita has now moved by around 5%
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In recent past few merger has been cancelled
Last one Godrej Agrovet & Asetec Life Science
In case MINDA & HARITA fails what will be the fate of HARITA in stock market is question mark hence this arbitrage is more .
In case Arbritage gets reduced merger will sail through for sure
What makes you think this deal will fail? When this company has such brilliant acquisition track record.
2011 - Company has signed the Joint Venture Agreement (JVA) with Kyoraku Co. Ltd., Japan and Nagase & Co. Ltd.
2013 -Company has entered into a Share Purchase Agreement with PMAn Domestic AG, Germany.
2014 -Minda Industries Ltd has signed a Joint Venture Agreement with Panasonic Corporation.
2015 -Minda Industries -Joint Venture Agreement with Kosei Group, Japan -Minda Industries & Kosei Aluminum Co. enters into new Joint Venture to develop, manufacture and sell Aluminum Alloy Wheels
2016 -The Company has signed a definitive agreement to acquire Rinder India Private Limited (RIPL), from Rinder Industrial Spain. -UNO MINDA acquires global lighting business of Europe based Rinder Group - The Company has acquired the global lighting business of Spain-based Rinder Group for about Euro 20 million. -Minda Industries Ltd has Completion of the global acquisition of RinderÂ’s lighting business
2017 - Minda Industries Ltd has signed the Joint Venture Agreement with Katolec Corporation, Japan to manufacture the products including high end electronics.
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In fact i am very keen for this merger should go through smoothly.
Only there was doubt in my mind due to issue in Godrej Agrovet & Asetec for which no reason is known to me. .
I do hold Harita in my portfolio.
Regards,
Manher Desai
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I am trying to understand why Godrej Agrovet & Asetec is coming into discussion in Minda Ind thread with respect to Minda Harita merger.
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Already most of merger procedures are over. U can check unominda website . They now will hold vote of creditors and shareholders as per NCLT in nov.
see their are always uncertainty risk in any deals and their only we get good returns
One can evaluate harita independently and see if merger fails how much risk one has.
Chances of failure is less As Niraj has posted link above from that it seems that TVS is more eager to do this deal to get fund for debt repayment. Also deal is structured that way that TVS will opt for preference shares which matures in 36 month with option to redeemed in 18 months itself.
Disc invested in harita and had added some after this info…
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Q2 revenue ot Rs. 1,360 Cr FY 20 as against Rs 1,522 er for corresponding quarter i.e., Q2 FY19
EBITDA for Q2 FY20 is Rs 162 Cr, vis.-a-vis Rs. 189 Cr In Q2 FY19
PBT before exceptional item for Q2 FY20 was at Rs. 69 Crs, vis- a vis Rs. 123 Crs in Q2 FY19.
PAT attributable to MIL declined by 32% to Rs. 49 Crs in Q2 FY20 as against Rs. 73 Cr in Q2 FY19
Q2 FY20 consolidated Revenue of Rs. 1360 Cr
Q2 FY20 Consolidated EBITDA of Rs. 162 Cr
Q2 FY20 Consolidated PBT of Rs. 69 Cr
Q2 FY20 Consolidated PAT (MIL share) at Rs. 49 Cr
Investor Presentation:
Now that the voting is over, when can we expect the merger proceedings to conclude?
Any thoughts from other boarders?
minda had passed voting on merger as per NCLT but i think harita date was in december . i dont remember exect date. both shareholder has to pass that then only further process can be done. i think its just matter of few days now