Pathetic Indian Judiciary system, Tariq pe Tariq. Exited AGI due to this reason only. No growth triggers if this aquisition is not completed.
I think case is in ending stage & Judgement is reserved. No more hearings.
Yes, waiting for outcome, Arihant Capital has given a logical conclusion in favor of AGI however indian courts are Indian courts, its better to hear from horse mouth before taking a call on re entry.
Typically, how many months after the final hearing, the judgement is passed? 1 month, 2 month? Is there a date on which the courts are required to pass the judgement?
As per my understanding, There is no time bar or deadline per se…but SC usually delivers the order with in 30 days after hearing is completed…
MiLords in SC are apparently proceeding for Christmas and New year vacation from 23 Dec (actually 21/22 dec are sat/sun) so I in my understanding order should be there before 21 dec .
Else it goes to middle of January and beyond.
(Disc: invested. Thoughts are completely my personal opinion/understanding)
Has the date for the judgment been announced?
SC verdict is still waiting but AGI Greenpac in a board meeting on Dec 20 placed a proposal to go for fundraise of upto 1500 Cr with issuing share. Nature of placement is not decided whether preferential issue, QIP or anything else . Currently working for shareholder approval. Exact reason mentioned on notice “In view of the future outlook of the Company, its growth prospects and proposed acquisition, it is thought prudent for the Company to explore raising funds through the issue of securities”.
Remember AGI’s bid for HNG Glass was around 2100 cr. So management is preparing for takeover.
Has the descision from SC come ?
Any update would be appreciated.
Share price tumbling down.
Anyways, without HNG it now represents good value.
back to NCLT for HNG.
Power of media should never be underestimated…supreme court app shows as pending.
I hope the media reports are not fake as it happened for a few companies (can’t recall exact names) in the last few days.
IMHO, seems good opportunity either ways, given the management’s efficiency.
Disclosure: heavily invested and biased.
What makes you think so: HNG acquisition plan fell off; capacity expansion,which is not announced till date, takes 2~3 year; OPM at all time high?
Hi Surender
AGI is trading at EV/EBIDTA 8.5, Operating cash 600 cr TTM. Valuations without HNG are still low. HNG will go for rebidding however I don’t think it will be good idea to rebid as many plants require a major maintenance. I had been an early buyer in this around 190 levels and exited in Nov around 1050 due to this uncertainty. Business is recession free and moat is high. They did 170 ton capex at Telangana plant for speciality glass which is 25% margin business. Planning to raise capital via QIP for further expansion organic/ inorganic. Rebidding valuations for HNG will be lower. I was a bit skeptical about aquisition price at 2200 cr valuation was too high. This case has helped AGI indirectly as competition is delayed by two years. At 17 PE and 26% margin, i am expecting 25-30 % upside based on current valuations. Lets see how things unfold. Have started accumulating as i like long term prospects of business.
very pertinent issues raised here in the review petition by AGI Greenpac:
The judgement itself is very surprising as it forces COC to accept much lower bid by Madhvani group.
At the end of the day the CoC or lenders loss is a loss of the depositors of these banks !
Also, many other very pertinent points are raised and this descision will impact many other IBC cases …
Excellent point about the margins.
Did a quick search in the concalls & earnings presentations to compile the data. Adjusting for the slump sale of the building products division, we get the following EBIT margins.
(I didn’t use EBITDA because I didn’t find the depreciation info for the packaging business pre-slump sale).
Capex of 700 Cr towards a greenfield project for 25% capacity addition.
Anyone aware of any update on the court matter?
@Swadesh9819 court matter done and dusted for now. Let’s all move on to plan B. 