Pabrai fund started investing when Edelweiss was ~125Rs. Edelweiss is trading at cheap valuation because of CG issue and I don’t see much down side left in stock price. Now only trader left in this stock and they are trying to pull it up. I am not surprise if stock price reach to 100Rs before Nuvama delist.
What is issue can you explain in layman terms
Order passed by the Hon’ble National Company Law Tribunal, Mumbai Bench (the NCLT) sanctioning the Scheme of Arrangement between Edelweiss Financial Services Limited (“Company”) and Nuvama Wealth Management Limited (formerly known as Edelweiss Securities Limited) (“Resulting Company”) and their respective shareholders and creditors (the Scheme) under Sections 230 to 232 and other applicable provisions of the Companies Act, 2013 has been uploaded by the NCLT on its website. An uploaded copy of the said Order sanctioning the Scheme is enclosed herewith. https://www.bseindia.com/xml-data/corpfiling/AttachLive/919a415b-1af9-4b72-a3a7-be1cb3f8bed3.pdf
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@2nd June demerger date.
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Post demerger will the share price of EFSL will decrease and by how much and also what will be the listing price of Nuvama ?
I did rough guestimate here.
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Record date has been announced by the company but I couldn’t find the demerger ratio.can anyone please share
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My ratio calculation.
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Utilizing calculations by maulik and parag, it can fall by 10-15 rupees
Hello ,
so if i have 100 shares of Edelweiss , so how many shares of Nuvama I will get ? couldnt understand the ratio , please elaborate ?
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For every 90 shares of Edelweiss, you will get 1 share of Nuvama (94,32,75,276 / 1,05,28,746)
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You can expect a market cap of > 5,000 cr on listing (20 x normalized earnings). There’s considerable upside here in my opinion.
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Edelweiss is not exiting its entire stake in Nuvama. So, post demerger, Edelweiss will continue to hold a 13% stake. To unlock value, it’s distributing ~30% of Nuvama to shareholders of Edelweiss.
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QoQ Nuvama result is not good: https://www.bseindia.com/xml-data/corpfiling/AttachHis/2dd002ed-cfe7-488b-8e17-d8100586ec6d.pdf
Last 2 quarter EPS is ~23Rs that makes yearly EPS ~80Rs. If it trade at 20PE then ~1600 is the Nuvama price.
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Result is out. Difficult to interpret numbers.
Is anyone understand “Net gain / (loss) on fair value changes (Refer note 11) 1,311.19”
Looks like it will be 0 after demerger.
In the investor presentation Nuvama Wealth is mentioned to have produced 303 cr for FY23 eps of 88 rs/share (387 cr excluding the demerger expenses), but in this filing it mentions 71 cr profits for FY 23 eps of 62 per share. Any idea why there such a huge deviation ?
Hi,
My understanding is whenever there is a demerger of any company,the company declares a demerger ratio but i still cannot for an official statement from the company about the demerger ratio.i have a strong feeling that this demerger is not going to be any value unlocking for shareholders.
You can calculate demerge ratio using this.
1 share of Nuvama for every 90 shares of EFSL
what’s happening? Looking for some news as the demerger happened. With the price drop and assumed demerger ratio of 90:1. I believe Numava should get listed at Rs.2700/-
Any thoughts?
It will reach to 9500Cr Mcap with 2700 price.
Total nevama share: 3,50,64,294
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Director Venkatachalam bought 10cr worth share on 31st May
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