Surprised to see the presentation states that the company could not achieve higher PE multiple (Slide 3) because it was two companies in one. So that was the reason for share price not going anywhere since listing. What rubbish! . It even makes reference to SOTP valuation for Lifestyle business (Slide 14). It is funny they are talking about enhancing shareholder value by way of demerger (Slide 2), when a lot of value has already been destroyed.
Demerging the Gym business, naming it as Lifestyle business, then swapping the names… What the heck !
The name change googly is the most confusing of all things. Why demerge 71%, call it a different name and list it and then swap the names again …
The record date for the demerger is 28th Mar 2018. This is hidden somewhere in the detail. I think it would take another 3 to 6 months before the air is cleared and the name swap is completed and public understand the right valuation (and stock price) for each of the names …
I think the biggest problem here is the debt levels…about 200 crores on a EBITDA of 40 cr. They might raise a few more in the current fiscal. Despite 150 cr Mcap, the valuation looks steep because of debt. Currently it does not go as per the managment statement of “asset light model”, may be if their club business does well they might reduce debt levles.
It seems that the management does some kind of injustice to this lifestyle business by carving out 20% of company’s total revenue and 40% of total debt.
Furthermore I could not get any satisfactory answer from the earnings call on the investment infusion by their European JV partner.
Hi friends,
Is there any idea when the listing of the gym business is going to happen? I have demerged gym business shares at Face Value of rs. 10 reflecting in my Demat account for the last 45 days or so.
Is anyone is tracking this… Lot of pledges done recently…
Total 17% shares are pledged it seems…
Does anyone remember any such plans of promoter during previous concalls?
Additional pledging is done due to drop in share price. Combined entity post split CMP-190 and earlier per split price 280. May be that can be the reason. They are yet to release SHP for new Co.
Promoter have raised equity last year at @310 price per share last year.
They raised the money by pledging existing shares. They must be hoping that the stock would appreciate over the time. However, the price has corrected by around 50%- if you consider combine price of both the stocks.
As a result, they are forced to pledge more shares. At the same time, every time the share take a dip, they are forced to either sell shares or pledge more shares.
But one persons’ buy is another persons’ sell
Aditya Birla Sunlife Insurance just sold their stake and this marks the departure of the only Indian Mutual Fund House from Talwalkar Lifestyle (erstwhile Gym biz)
I have a question about acquisition price for Talwalkar Better value fitness (the current company) and Talwalkar health club (Gym company).
If a shareholder purchase a share before last year- say Jan 2018 for example- the shareholder received two shares- one share each for Talwalkar Healthcare and the TBVFL.
My question is what is the acquisition cost of the share for Talwalkar Healthcare? Is it zero or it is proportionally divided between two stocks?
I would appreciate if some can point me to the link where the said cost is mentioned?
. It even makes reference to SOTP valuation for Lifestyle business (Slide 14). It is funny they are talking about enhancing shareholder value by way of demerger (Slide 2), when a lot of value has already been destroyed.
