Omkar Speciality Chemicals Ltd -- OSCL


(vinay ambekar) #867

http://dsatest.moneycontrol.com.http.akamai-trials.com/video/business/omkar-speciality-chemicals-to-expand-business-operations_9206281.html


(tankerooooo) #868

Omkar’s management has a history of hyperbole. I will believe this new 200 cr topline business when they do it (I do not think they will do 200 cr by FY19).

For people who are not familiar with Omkar’s management history, more than 18 months back, they claimed they will get into Vitamin C and folic acid business and create a 200 cr topline business with 20+% EBITDA margins. Management has not spoken about this “vitamin C and folic acid” business for a long time.


(sumitg04) #869

Do you know whether they filed this announcement with the exchanges 18 months ago as well. This time they have filed an official communication with exchanges which also includes that they are in the initial stages of discussion of acquiring a company/facility to get into other products related to FMCG and fragrances… We also need to note that this time management of Omkar Speciality has changed after de-merger (earlier Father + Son to One). Yes they have not been able to walk all the talks but at the same time some of the talks have already met the actions including the de-merger. There are new dynamics in the play and hopefully there would be a better outcome.


(sumitg04) #870

Latest update from omkar on filing a patent. They have also mentioned that the company is in advanced stages of discussion with the leading global fragrance manufacturer for the product
http://www.bseindia.com/corporates/anndet_new.aspx?newsid=ad6dce30-e3e8-432f-af26-b4da2942a10b


(sumitg04) #871

LASA shares have been credited into respective demat accounts.


(vikrantmehta888) #872

Any idea when are Lasa shares going to be listed and tentative price?


(sumitg04) #873

Announcement regarding allocation of LASA shares. In the process of listing the same.
http://www.bseindia.com/corporates/anndet_new.aspx?newsid=10c0ae05-0c04-45b2-9efb-72d705e99404


(sumitg04) #874

http://www.bseindia.com/xml-data/corpfiling/AttachLive/0d35405c-d4f1-4400-b0dd-5fb8f26c4f24.pdf

Announcement on tie-ups with Global majors for its upcoming launches in FMCG space.


(Vivek) #877

Promoter PRAVIN HERLEKAR OMKAR selling another 2.25 lakh shares [email protected] ! This never ends …


(Hiren Gadhavi) #878

Can you please provide source?


(roysavio) #879

Check bulk deals:
http://www.moneycontrol.com/stocks/company_info/blockdeals_query.php?sc_id=OSC01&post_flg=1&myexchg=Both#OSC01


(Vivek) #881

Omkar 25.52%
Pravin 10.21%
Rishikesh 2.51%
Svaks Biotech 1.85%

Total Promoter Holding :40.09%(as on 27-06-2017)

Omkar has created a Pledge on 27-06-2017 amd its reported almost after a month :slight_smile: thats today!
http://www.bseindia.com/xml-data/corpfiling/AttachLive/e51b39ff-19e8-4758-9c19-8fe48d49e131.pdf

I think with last sale of 2.25 lak shares the promoter holding has further reduced Below 40%. They keep telling no more selling and they just do the reverse of it. Not good at all.

Sold another 1.15 lakhs today also :sweat:


(Bhaskar Jain) #882

I have exited my position in Omkar completely today based on this.


(Changu Mangu) #883

@Hocuspocus32 @bhaskarjain

First, please let me give my disclosure… I had honestly decided not to post publicly again on VP. But then rules are meant to be broken :slight_smile: I am breaking my rule because I realized I have gained so much more by being part of the VP family that giving back is more important for me.

Now, gentlemen and ladies, please please start to look at the real picture, and please don’t sell or buy on information that is not correct. I know sometimes it is confusing and this is a classic example.

The sales yesterday and today have not been done by Pravin Herlekar. They have been done by Omkar Herlekar. This is also the same for the new pledge.

As the very brilliant @giridesh3 helped us understand a long time ago, the two brothers are going their separate ways and the father is ensuring that it is done smoothly so that the small investors do not suffer and neither do their families or employees.

Now, going ahead Omkar Herlekar does not have any interest in OSCL, so he is going to pledge and sell his stake in OSCL as his baby is LASA and if he needs funds for it he will surely sell his OSCL holding which now means nothing to him. And let me say with as much confidence as I can state, he is going to do a brilliant job with LASA.

So if he needs funds for LASA, why should he not sell and pledge his OSCL shares which is a company he no longer as an emotional interest in?

On the other side, I had also felt that appointing Rishikesh as a wholesome director was maybe premature, but on further thought, Pravin is growing older, and it is just common sense succession planning. Of course, we look forward to having Mr. Pravin around till he turns a 100 years old.

He is teaching Rishikesh the ropes and on further digging I found that Rishikesh is also getting his chemical base from where Omkar studied. They are both from a high pedigree institution.

Assess this as a long term play, please stay away from daily stock prices based on the merger / demerger and share sale by players who have other great businesses to build and are funding them.

This is how special situations play out and the real strength needed is to “wait” till it is actually is completed playing out.

Patience and conviction is the key here.

Everything is on the right track. Follow the revenues, margins, growth, IP’s, new markets being successfully opened and not the share sales and purchases my dear friends.


(Vivek) #884

of fine , if Omkar is not interested then who is going to be running OSCL the other promoters shareholding is not increasing as well. @valuestudent
what am I missing here please inform


(Changu Mangu) #885

@Hocuspocus32 Lets say there are two options:

  1. Rights Issue
    2: Warrants

If rights issue lets assume that no one from outside will subscribe (worst case scenario) but even then the promoters will convert their interest free loan to equity in the rights issue. So the lowest possible subscription to the rights issue will increase the promoter holding in one swift stroke and the debt will reduce dramatically because debt will become equity.

  1. Warrants are generally issued at a higher than market price with a right to exercise but not a obligation. This usually means the promoters are willing to buy back at a price higher then the current quoted price at the time of issue. This article might help a bit on what could happen if they are warrants. http://www.investinganswers.com/financial-dictionary/optionsderivatives/warrant-861

Omkar is only not interested in running OSCL; it is amply clear he will run LASA and Pravin and Rishikesh will run OSCL.

Pravin is worth his weight in gold and I have had some scuttlebutt to understand that Rishikesh is also a very decent guy and with this father’s guidance will grow into a mature businessman. He is not taking any decisions, he is learning right now. In the meanwhile Pravin is aggressively growing the business.

I feel these two companies OSCL and LASA will take the respective organizations to the value and respect they deserve.

Let me on an old memory note here; even aurobindo went through hell and had to pledge to get the business going, and the rest is history.

The only way companies are destroyed is DEBT. They have now finally understood it. As long as they don’t fall into the debt trap any more, these will become among the precious businesses that we would own.


(marathon_runner) #886

Looks like promoters are currently holding 38.39% and out of this Mr. Omkar owns 23.82%. If he decides to sell-off his holding in OSCL - promoter’s holding will come down to 15.57%. And if Mr. Omkar has no interest in OSCL, shouldn’t he be classified under Public Holders?

Need to check with management what promoter group’s plan is on promoter holdings. These surprises (Omkar selling his stake) are only going to reduce the conviction of other shareholders.

It’s high time they share a road-map for at least 5 years (talk) and then “walk” per their talk.

Disclosure: Invested and holding it for last 1+ years.


(Bhaskar Jain) #888

Why do they not remove Omkar from promoter category and then I care not what he does with his shares? He has no emotional interest but still is in the promoter category?

I have been patiently holding on to Omkar from much longer, see my posts “defending” the promoters here but this is last bad corporate governance I can digest, when they say in the last concall that there will be no more selling/pledging from the promoters and lo and behold they go ahead and do it and disclose a month later.

I have given a very long rope to the promoters and have run out of justifications in my mind. How do you justify the recent “Updates” they have been issuing to the stock exchanges to pump up the share price and then Omkar goes aheads and sells his shares. If you read the “Updates” there is no concrete new information shared but its just hot air. They sacked the CFO after the demerger exercise and can now conveniently blame him for all the past actions. For rights issue, they don’t say they will extinguish the debt completely with the proceeds, they say they are open to acquisitions too… Now they have learnt and got burnt by debt, why not commit to finishing off the debt. The list is too long of all their past bad behaviour… And its very difficult to reform a crook… There is never a single cockroach in the kitchen… I choose my words very carefully here. In all the concalls, Pravin talks like he is so ethical and investor friendly but his actions are completely opposite. If they have this attitude towards the minority shareholders, whatever potential the business has, they will always be a “promoter discount” because markets have a long memory.
And a crook cannot run a good business for long. He already has a bad reputation with his suppliers.

I sincerely wish you all the best and hope Omkar works out but I am not comfortable holding it anymore.


(Bhaskar Jain) #889

Exactly my thoughts. Our posts crossed over. See my reply to valuestudent


(Bhaskar Jain) #891

Skin in the game matters more than the growth potential of a business. I think you are deluding yourself now… Classic confirmation bias you are exhibiting where you don’t want to even acknowledge the other view ( it maybe correct or wrong ). As I said in my earlier post, hope Omkar works out for you.