OCCL - Chemical Company (This is getting traded, shares would have become 5 fold)
Oriental Carbon… - Investment Company ( Not Getting Traded)
This is wrong. 506579 is the investment company. 5x shares will be credited for the chemical business when it gets listed in due course. There is also a website https://www.bseindia.com/stockinfo/AnnPdfOpen.aspx?Pname=30915b05-6e10-49f3-928e-8d976b6c2523.pdf
It’s baffling that there is no communication from the company in this regard. Given the valuation of the currently traded company it looks like the investment business. If it’s chemical business it’s trading very cheap in my view.
When is this chemical company listed?
Is there any date announced?
Nothing has been announced yet.
The current business is the investment business reflecting PE investments and Duncan’s stake.
Some updates on demerger on how to calculate cost of acquisition. Let’s wait for listing now.
How is the demerged valuation being calculated?
As per the “Cost of Acquisition of Shares”, Oriental Carbon is 40.81% and OCCL is 59.19%.
- Does it mean the company’s assets (book value) is split in the same ratio between the original and the demerged company?
- If that is the case, is (50% of Duncan + Investments) and (Dharuhera + Mudra plants + office space + other assets - depts) proportionate in same ratio?
The stock split is 1:5. Is it anywhere relevant to the revenue of both businesses? As per the Q1/25 sales results, OCCL’s revenue is more or less 5 times of Oriental Carbon’s revenue. Even the historic figures mentioned in the documents are in similar ratio.
- Why doesn’t it reflect in the face value? As per the face value it is a 1:1 split (1 x Rs.10 pace valued share: 5 x Rs.2 pace valued share)
- Before the demerger the OCCL stock was floating around Rs.800 per share. Now Oriental Carbon’s share price is Rs.260. How much the shares of demerged companies will cost when listed?
2.1. As per face value it should cost Rs.52. In that case whole 6 shares combined will cost significantly less than pre-demerger value.
2.2. As per revenue, each OCCL share should cost Rs.260. In that case whole 6 shares combined will significantly overvalued.
On 31st JAN 2018, it was quoted around 1208, so while calculating the purchase value while selling the stock , i think we have to consider splitting Rs:1208 in 40.81% & 59.19%. Can someone confirm?
Yes, the split percentage of cost will be as per the proportion provided by the company.
I initially thought the investments business to be 20% of the whole pie and attributed around 200 cr mcap to Oriental Carbon & Chemicals Limited and around 600 cr to OCCL Limited. The proportion provided by the company has come as a surprise to me. If we take the 800 cr mcap as a base (before 1 July 2024), and current mcap of Oriental Carbon & Chemicals Limited of around 270 cr, OCCL Limited should be roughly worth 530 cr map translating into a per share price of around Rs. 110.
I thought the same initially. But the company provided ratio was surprising. So, I checked the assets once again today. The investments are around 40% of the total asset of the pre-merged company. But the revenue didn’t realize as most of the investments are in unlisted companies and liquid funds. In that case, the investment company shares are very cheap. The downside is this investment company cannot be evaluated with PE ratio anymore. And the valuation of its holdings will be opaque until they go public.
Hi @ayushmit
From the concalls, I found that this company is in your radar. We all are not been able to get the situation complete as if when will the demerged chemical business (OCCL) gets listed.
It will be very helpful if you can shead some light on this topic.
Thanks
I have not been tracking this company for few years now.
This is creating an impression that @ayushmit bhai follows this company
Any further updates on the listing of OCCL Limited?
Listing of demerged company from Tuesday 29th October Notice Number