- Yes 10-20% haircut is in addition to the 408 Cr of CRPS.
https://www.crisil.com/mnt/winshare/Ratings/RatingList/RatingDocs/Kesoram_Industries_Limited_September_04_2020_RR.html
- I think funds will come in a month after the closure of the agreement. CEO said it will be signed by October end. He mentioned the month-end in this news item.
- Promoter holding given to exchanges is based on what they consider as promoters. Highgate Industries (now called Euston Industries) holds 5% in the company. This belongs to Birlas only. They have recently changed their office from Birla Building. Overseas GDRs (5%) - I understand these are held by an overseas entity of Birla families (Not sure… But I heard). GDRs holding was around 15% around 10 years ago. Because of share dilution, GDRs stake has come down to 5%. Devi Investment Company seems to be their company only. The exact promoter holding maybe 65-70%.
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Anyone still tracking this company?
Due to restructuring and repayment of borrowings, looks like company is in a good position now.
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It seems that the parent company is interested only in its cement business. It went through a lot of restructuring in the past. It seems to be off everyone’s radar.
Check out the article if interested in the restructuring and value destruction for minority shareholders. - Kesoram’s yet another restructuring: Demerger & Listing of Rayon, Paper and Chemical Business
Quant mutual fund has bought into the company 47,50,000/- shares in kesoram industries during the period of August 2023.
Company announced demerger of cement business into Ultratech
There seems to be quite a lot of noise around Orient Cements also being taken-over by Ultratech. Any views on that?
Yes, rumors are that adani is looking to buy orient cement and/or saurashtra cement. This could rerate smallcap cement companies that are are available at low EBIDTA/MT
Ultratech acquiring Kesoram’s cement division in the form of 1:52 Ultratech : Kesoram share swap ratio, valuing its clinker backed cement capacity of 8.5 MT at $87/MT and total cement capacity of 10.75 MT at $70/MT.
Yet another M&A deal after Jaypee and Sanghi in cement sector that has happened closer to its replacement value, despite their operational problems.
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Kesoram has some non-cement business also. What value you have given to that?
