Mcdowell holdings , holding company of vijay mallya group its current holdings in UBL,UB HOLDINGS & Manglore Chemical&fertilisers value 1000 cr surprise is market cap 40 cr only means 96% discount to its holdings value.
i go though annual report why this much discount this scrip quoting to know
i found that company given corporate guarantee of 280crore to UB holdings ( group company) with pledger of 63 lakh UBL shares as a guarantee with YES bank and taken 70 crore loan from EDL finance with pledge of 16 lakh UBL shares as a guarantee this amount also given to UB holding. and showing as a receivable from UB holdings considering good in balance sheet.
so total approx 350 crore they have liability but asset side 1000 cr . if u remove that 350cr liability from its holdings value also NAV comes to 650 crore which value 464 per share( 650 cr/1.4 cr total shares of company) i am not understanding why this much deep discounting going on here
major holding company of mcdholdings is united breweries ltd(UBL) approx 850 cr . UBL present managed by vijay mallaya and heinken but heinken UK increasing its stake from 35% to 42% in this year bought from various stake holders @ avg prise of 960 including mcdholdings pledge shares from yes bank. it is in process of increse stake to 51% in UBL for take management control and gate out for vijay mallya.
one more interesting factor is promoter holdings is 18% only and 100% pledged and FII & DII s selling their stake in open market in this year . why they are selling at this penny valuations.
why not anybody buy majority stake 51%( approx for 20-25cr) and take management control take control on 650cr asset, it can be cashed with talks with heinken UK to buy mcdowell holdings entire stake in UBL with re pay of its liabilities,
dear friends solve this puzzle
disclosure : i am recently bought 25000 shares @ 30 if picture is clear i want to increase my investment on this .