ValuePickr Forum

HSIL Demerger in to two companies-SHIL and HSIL

ALl,
Posting notes from various links for HSIL demerger for evaluations.

MUMBAI: Shares of HSIL could rally 20% in the next two-three months as the company decides to unlock value by demerging its consumer products, distribution and marketing business into a new entity Somany Home Innovation (SHIL). Typically, consumer products businesses are traded at a higher PE than manufacturing businesses, according to analysts…

HSIL will retain the manufacturing of all the building and consumer products in addition to manufacturing and sales of packaging products. The …

Read more at:
//economictimes.indiatimes.com/articleshow/61776391.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

HSIL is the market leader in the sanitaryware segment with 32% market share and is the second largest container glass player in India after HNG.

HSIL always traded at a discount to its peers despite its strong brand franchise, but now the situation will change, said analysts.

“The company’s RoE is lower than that of its peers, however HSIL is likely to see higher RoE expansion than peers, given its entry into a few high-margin segments and reduction in losses in consumer produc …

Read more at:
//economictimes.indiatimes.com/articleshow/61776391.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

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Another link per which the record date as 1st april. But didnt get it on NSE and BSE. Request people to check again.

Another link-https://mnacritique.mergersindia.com/hindustan-sanitary-ware-demerger/

Few of the past demergers of renowned companies resulted into disaster. Instead of value unlocking, demerger eroded value and capital. Look into cases of Aditya Birla Capital & Sintex Plastics. Also in the line is- much talked about Omkar Speciality/Lasa Supergenetics.

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Result for Fy 2017-18:

I bought 700 shares of HSIL@499 on July 2017, just to unlock the value after demerger without studying the fundamentals of the company or reading annual reports and at that time I was new to investing. And I am still holding the shares with 40% of loss. I am thinking to add more to average and it will be helpful If any senior VP can guide me. One more question is if I add more, am i eligible for getting the newly listing company(SHIL)?

Please check onthe record date for eligibility.

besides remember one lesson-losers average losers!

when is the de-merger happening ?

Next NCLT hearing is on 25 Jan 2019

Anybody attended the concall on 5th Feb? could anyone Please share notes if possible?

Can the leads in this thread provide/share any update when SHIL expected to be listed on the exchanges?

I could speak to the authorized person a few days back. He said all formalities are done, only the trading need to start. He was confident that it will start in December itself.
Regards,
Raj
Disc: Holding

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Hello people! Looks like SHIL has been listed and will start trading. I wanted to ask how should I adjust the cost of acquisition for both HSIL and SHIL?

My pre-demerger buy price for consolidated HSIL was Rs. 330.

Thanks!

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Thank you!

That means HSIL COA should be taken as 330 x 17.27% = Rs. 56.991 and SHIL at Rs. 330 x 82.73% = Rs. 273.009

Correct?

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SHIL COA should be taken as 330 x 17.27% = Rs. 56.991
HSIL at Rs. 330 x 82.73% = Rs. 273.009

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Ah, ok. Thanks. Funny because SHIL is expected to be traded around 200 or so.

That’s strange because hsil already trades in the 40’s. Whereas SHIL isn’t traded yet.

Hsil has the commodity glass business and SHIL the more glamorous business home improvements business

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I have HSIL–458 shares —avg price —239.08

How to claculate SHIL shares…how many i will get…Any one will help on this?

Thanks,
Kumar