Just adding more twist to tell. In case you like SRF, it would be better idea to invest in SRF through Kama Holding Limited (earstwhile SRF Poly). The promoter’s majority holding in SRF is held through Kama Holding. For each share of Kama, one would get 4.65 share of SRF, with price of almost one share of SRF. While I appreciate holding company discount would always remain, I am positive for following reasons:
- SRF 10 Dividend result in Rs 46.5 dividend being received by Kama. Kama last year paid Rs 20 per share is dividend. So I see a dividend leverage in Kama
- Clean business of Kama, which virtually no other line of business except some education business with nominal financial.
- Relative good management of SRF which have rewarded minority shareholder with good dividend in past, and getting 80% discount to holdco, I feel is very high.
Discl: I am holding SRF as well Kama Holding in my portfolio. Also, investor is advised do his/her own due diligence as my view may be biased due to my holdingd
- Relative