Demerger in Refex. @aditya.lathe any thoughts?
Slide 22 onwards
https://www.bseindia.com/xml-data/corpfiling/AttachHis/2a11a425-08c1-4ba7-a788-92ef7bbd6239.pdf
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Hi Sougata, I dont have any views on this, although read about it in an article
I’ll paraphrase from this magazine which is a great source to read up on current M&A deals
Key Pointers as covered in the article in it:
- Refex Industries has a Wholly owned subsidiary Refex Green Mobility which has this cabs business. In Step-1 this will merge with Refex Industries. In step 2, it will again demerge into a separate listed company with mirror shareholding as per Refex Industries.
- This green cabs business was started in 2023 itself and is very small. Topline ~29 crs and Loss 7 Crs. Refex consol. topline is 2468 crs and PAT 158 crs - so this business only ~1% of topline
My words=> Listing it out separately right now is a bit puzzling as not sure what valuation this tiny business will get. Another puzzling thing is low consol. debt of group but pledge of promoter shares of ~27%
Disc.: I have no idea about the company/business - just paraphrasing here from the magazine article (as i didnt want to share screen clippings - ppl can subscribe as monthly price is just Rs.150/-). Plus saw the promoter pledge on the exchange, which is a bit puzzling.
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