Thank you for the reply. I just wanted to confirm this. I didn’t know about Jubilant Ingrevia special situation. Will read about that.
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Any idea when the new wiring business of motherson sumi will get listed on exchange?
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As per the management, it will be in March 2022.
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Thank you for detailed note on Maharashtra Apex.
I didn’t understand the risks mentioned by you.
If company choses to do a OFS, of the holding in KL, then shouldn’t it do at at market value? I mean the price at which Motilal Oswal would be exiting?
Also, I’m not sure the company would delist maha apex when they are trying to list Kel…more likely they would opt for a simpler solution of getting rid of the holding company KL
Disc: invested
Regarding Eureka forbes demerger; management change to Advent, strong brand, high recurring income from consumables & service and low penetration of water purifiers in India are positive points. However, industry growth has been volatile (probably due to steep decline in price realizations) and also NGT came out with an order to ban RO usage in Delhi where TDS level is less than 500.
I’m evaluating this from long-term perspective and looking for inputs on the Industry growth prospects. Please share if you or anyone has done work on the industry part.
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I didn’t find any free report on water purifiers online. Market is now growing at around 10% for water purifiers and the current penetration is very low. Eureka Forbes market share has fallen now to around 15%. The competition is stiff now from Kent and HUL. Eureka forbes also sells air purifiers and vaccum cleaners. Revenue from these segments is not known but is growing very fast.
Likes of Kent and HUL are growing at around 15% cagr. Kent has impressive margins and ROCE. SP group has handled Eureka Forbes very badly. See how their revenues have been stagnant from last 4-5 years. My bet is on the new management to accelerate the growth through investments, cut down on costs and increase the market share of Eureka Forbes. Ofcouse, its not easy. Advent has done similar turnaround for Crompton electricals after it bought it from CG power.
See the kent numbers.
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Final ordered for Eureka Forbes demerger will be declared tomorrow(25th Jan). This demerger has taken a lot of time. Final order should be followed by announcement of record date of demerger.
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Demerger of Domestic Wiring Harness (DWH) business from Motherson Sumi.
As pointed out in an earlier post in the thread, it will be interesting to check out the price action in the DWH business after it gets listed in March 2022. Will the institutes sell the demerged business after listing. FIIs hold 16.43% and DIIs hold 13.87% in the parent business.
List of DIIs which hold the business include Axis Mutual Fund 3.9%, ICICI prudential MF 1.992%, UTI MF 1.147%, SBI MF 1.004%. DWH business should be a small business to be held in their bluechip and largecap funds. So, I checked the holding of top 4 DII in Motherson Sumi for their large cap schemes
- )Axis Blue Chip - 650cr worth Motherson Sumi shares
- )ICICI prudential Balanced Adv - 700cr
3.)UTI Large cap - 100 cr
4.)SBI Blue chip - 600 cr
Atleast these funds should sell the shares as they cannot hold DWH shares after getting them in March.
Still have to check the FII holding.
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Forbes demerger finally got the NCLT approval
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Is anyone tracking niit ltd demerger?
Could people guide , how can i evaluate it step by step…i am a newbie for demergers
NIIT Demerger
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what will be the debt and cash position for the listing entity , I mean Eureka Forbes…do u have any idea?
I have written a note on this.
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Borosil is demerging its scientific division Klasspack from the consumerware division. 3 shares of Klasspack FV 1 will be issued for 4 shares of Borosil Ltd FV 1.
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GMR POWER AND URBAN INFRA LIMITED#NEW EQUITY SHARES WITH FACE VALUE RS.5/- AFTER SUB-DIVISON
Shares credited in dmat…when will be listing?
Listing date is not announced yet. It should take around a month.
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According to price discovery, around 90% of total business is Eureka Forbes. Expecting Eureka Forbes to list around Rs 350-360 in 1-2 months time followed by promoter change.
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Thanks for this! I am a newbie in demerger investing. Can you please help me understand what is happening in this scenario? As an investor, should I be looking at Eureka Forbes when it is listed or the Forbes co that is listed right now? Also, what is the ratio of shares one would be getting in the newer company? Would really appreciate as all of this is confusing.
The record date for demerger was 11th Feb. So, there is no point of buying Forbes and co since it doesn’t have the Eureka Forbes business now. That’s why the price dropped by 92%. Those who were holding the shares till 9th Feb will get 15 shares of Eureka Forbes for each share of Forbes and co.
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