Sure.
My job is to calculate the fair value.
I have no idea what will be the listing price.
And what would be your view about Mirza International without redtape now?
Best case estimate is 700 cr. Even the DCF valuation done by the company shows similar numbers.
But I guess it will see a lot of selling pressure and may take a very long time to get there.
Something is brewing in Mirza International(MI). In the normal course, one would have expected a few lower circuits for the left over Co. after the de-merger, as Red Tape was the reason investors were buying the Co. in the first place, but there is an obvious demand for the stock sans Red Tape.
As I see it, MI is back to being the same Co. that it was 7-8 years ago. It did have the Red Tape brand then, but it did not get reflected in the valuations, which gained recognition only after Shuja Mirza made Red Tape a marketing/ fashion brand, with bulk of the sales coming from traded goods & not footware manufactured by MI.
As often happens, with the de-merger playing out, MI is now free to focus on its own growth plans. As a major part of the Mirza family are still invested & running MI, they must have their own definite plans going forward. It would certainly help if the mgt. would share the same with its share holders. Being fully backward integrated up to the tannery stage, a strategic foreign investor with a brand could be the best thing that could happen, but at this stage it could merely be wishful thinking!
Hello folks, does anyone know how much cost to be assigned to the Mirza International shares after demerger? If I sell the shares now, I need to allocate a certain % of the original cost, to calculate the gain/loss. Usually companies disclose this information during demerger. I went through the demerger disclosures but couldn’t find it.
Thanks!
@ayushmit @sahil_vi
By when can we expect the Red Tape shares to be listed on the exchanges? How much time does it normally take for demerged companies to get listed? Would it be about a month or is it more like three months?
my limited understanding is that it is 2-3 months. So in June
When it’s credited in our account? Listing time
Shares of Redtape credited. Got a message from CDSL.
Yeah shares get credited quick but listing is where it takes quite a lot of time.
What is your opinion about valuations of Mirza International now. What I have heard is that there is massive institutional selling post demerger. However cant see the same here? Any insights would be appreciated.
i don’t think there was much institutional holding of Mirza Int ever to start with. Although, there are lot of people like me who were holding Mirza for the Red Tape business and would want to sell it post demerger.
Basd on Mil current price and pre split price, RT should lift in a band of 220 to 280
Note on acquisition cost for MIL and Redtape shares.
I am aware that those who have a CDSL depository have already received their RedTape shares in their Demat account. However, I have my account with NSDL and have not yet received the shares in my account. Is anyone else experiencing the same issue? If so, I would appreciate any insights on how you have resolved this matter.
Thank you.
Any reason why is it UC for 2 days, is it coz of the low valuation trading at 4 PE as per screener?
Also last 6 days deliveries were 100% for this and yesterday was 48%
As per above update by Mirza on 15th April, Book value of Mirza is 726 Crores . However without this update market listed Mirza at 450 Crores market cap. So market is catching the valuation gap.
Book value of Reg tape will be 300 Crores and expected PAT for FY 24 is 200 Crores, means ROE 65 %. Higher listing of Red tape expected.
Thanks a lot for explaining it so well.
I wish I would have hold it for few more days.
I am more into Redtape, so sold Mirza
I have the same question. I have actually not sold a single share of Mirza since I bought it >1 year ago. With the demerger, I do not see yet any RedTape shares being credited to my Zerodha acc, I just see Mirza is down to its demerger price. Am I doing something wrong?