Hi everyone,
The investment business of Oriental Carbon and Chemical Limited is going to be delisted from the NSE.
The company is holding a lot of private equity investments. For me, it looks like a tactical pick for an asymmetric payoff as the book value of the business is more than the market price and also all the investment in the books must be at Cost basis due to accounting policy and it is private equity investments with no market traded price.
Can it be worth the study?
Views requested
Thanks
Hi All, The delisting communication was only for NSE. Plz read the announcement on both BSE & NSE exchanges. It was intriguiing since if a company would like to delist then it would want to delist from both NSE & BSE. Am i missing anything ?
you are right, does that mean no exit opportunity will be provided to the shareholders?
Take is incorrect
The company is delisting primarily from NSE & not BSE.
For a company to list on NSE- it needs to meet certain criteria with regards to scale like - paid share capital >10 Cr, PAT >15 Crs & sales >30 Crs. Due to higher liquidity, companies aim to get listed on NSE to cater to a wider & more institutional investor base.
In the case of oriental chemicals,Post the demerger, the scale of The investment unit is very small, hence it doesn’t make sense for these guys to be listed on both exchanges.
Further, any investment focused biz/ holding company is always valued at a significant discount to the value of investments as per the mkt rates.
In the company’s case, it holds stake in several unlisted biz Bira & is a holding co. For duncan engineering.
Hence mcap vs value of investments/book value will always be low.
One needs to figure out the ideal holdinh co. Discount one is willing to bet on coupled with whether an investor is bullish in the ultimate investments the co. Holds & their directions.
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that was insightful Dhruv! thankyou so much 
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