2016 Blog Comment -Shares Can , Now , be Dematerialised
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19-12-2015 Post
Farm Enterprises Shares to be Converted to Reliance Inds Shares 1:1
Farm Enterprises Limited ( earlier also Reliance Enterprises Limited )
Please go through the below mentioned Postal Ballot ( for Farm Enterprises shareholders )
All the Non Promoters shares in Farm Enterprises will be cancelled. In lieu of every 1 share of Farm Enterprises ( Unlisted ) 1 share of Reliance Industries Limited ( Listed )would be allotted ( free )
99 : 35 % of Farm Enterprises Shares are with Promoters. Total Share Capital Rs. 133 crore 33 Lakh ( Face value per Share = Rs.10.)
Farm Enterprises Limited ( earlier also Reliance Enterprises Limited )
Please go through the below mentioned Postal Ballot ( for Farm Enterprises shareholders )
All the Non Promoters shares in Farm Enterprises will be cancelled. In lieu of every 1 share of Farm Enterprises ( Unlisted ) 1 share of Reliance Industries Limited ( Listed )would be allotted ( free )
99 : 35 % of Farm Enterprises Shares are with Promoters. Total Share Capital Rs. 133 crore 33 Lakh ( Face value per Share = Rs.10.)
Please go through the below mentioned Postal Ballot ( for Farm Enterprises shareholders )
All the Non Promoters shares in Farm Enterprises will be cancelled. In lieu of every 1 share of Farm Enterprises ( Unlisted ) 1 share of Reliance Industries Limited ( Listed )would be allotted ( free )
99 : 35 % of Farm Enterprises Shares are with Promoters. Total Share Capital Rs. 133 crore 33 Lakh ( Face value per Share = Rs.10.)
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Farm Enterprises Limited is the new corporate entity of the erstwhile Reliance Enterprises Limited.
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Farm Enterprises Limited
Registered Office :
B-4, MIDC Industrial Area,
( Near Rasayni Police Station )
Patalganga
Rasayni -410 - 220 ( Maharashtra )
Tel : 022-40613171
email : hetal.rathod@servicesnext.com
Website : Annual Reports can , also , be downloaded here.
http://www.fel.org.in/
Registrars :-
Karvy Computershare Private Limite
Karvy Selenium Tower B
Plot 31-32, Gachibowli,
Financial District Nanakramguda,Hyderabad - 500 032,
Tel : +91-40-67161700
Toll Free No : +1800 425 8998
Fax : +91 40-23114087
Email : felinvestor@karvy.com
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OLD POSTDirectors :
JSP Bansal,
Ashwin Khasgiwala
Atul Kumar Tandon
Rajendra Mangal
Assistant Company Secretary :
Hetal Rathod
As per the Annual Report 2008-2009
Equity Share Capital : on 31-03-09 :Around Rs. 6 crore
In the Previous Year i.e. as on 31-03-08, equity Share Capital was merely Rs. Six Lakh (60,000 equity shares of Rs. 10 each )
Face Value per Share : Rs.10
( The Company seems to have issued Optionally Convertible Preference Shares which on conversion would affect the Equity Capital )
As on 31-03-2009 there were around 2 crore Series "A "12 % Optionally Convertible Cumulative Preference Shares outstanding and around 11 crore 32 lakh Series "A " 12 % Optionally Convertible Cumulative Preference Shares ( Re 1 paid up ) outstanding .
Reserves : Rs 1950 crore
This would translate in to a Book Value of about Rs.3150 or so.
The company holds ( Pre Bonus ) 4 crore 60 lakh shares of Reliance Industries Limited . These may be worth , at CMP ( Ex 1:1 Bonus ) around Rs.9200 crore or roughly Rs.14750 per EQUITY share outstanding on 31-03-09 , thus giving it tremendous hidden worth.
( If the Equity Share capital as on 31-03-08 was taken and CMP of Reliance Industries Limited then the figure was Rs. Fifteen Lakh + , per one share of Rs.10/-)
Dividend : Nil
Status : Shares appear to be not listed , hence illiquid
PLEASE NOTE :It appears that the Holders of Optionally Convertible Preference Shares of Farm Enterprises ( Reliance Enterprises ) Limited have to EXERCISE their option to convert in to EQUITY shares before the deadline. Otherwise their Right to Convert would Lapse.
There are two types 12 % Optionally Convertible Cumulative Preference Shares ( Series A ).
1 ) Fully Paid Up ( Rs. 10 / - ) each . Each such share can be converted into One Equity Share . Equity share can fetch around Rs. 600 which is much more profitable than the Redemption price of Rs. 275 which would be paid by the Company to all those holders ( after 5 years from Allotment ) who do not exercise the Right to Convert .
2 ) For Re. 1 paid up ( Face Value Rs. 10 ) the holder can apply for one equity share by making a further payment of Rs. 199 ( Total Cost Re. 1 + Rs.199 = Rs. 200 ), before 5 years of allotment . If no application for equity shares is made then holders would get back Re. 1 per share at the end of the Tenure
CONVERSION / APPLICATION TO EQUITY SHARES STRONGLY RECOMMENDED
2016 Blog Comments. It seems ( PLEASE RECHECK THIS ) that regarding all those holders of Convertible Preference shares who did nor exercise their Right to Convert with in the Time period , their Rights have been taken by the Promoters ( Please Recheck this )
http://www.mydigitalfc.com/2008/mukesh-farms-reliance-control ( It appears this Post which exposed the Management has , now , been removed . It is not longer Available )
http://rareindianshares.blogspot.com/2010/12/asset-laden-investment-companies.html
There should be listing of both Equity and Preference shares of Farm Enterprises Limited on the NSE
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OLD POST
(Important Comment From Mr. Satyakam Mishra )
Limited Liability Partnership Is The New Buzzword In The Corporate World
Limited Liability Partnership, or LLP, is the new buzzword in the corporate world. Or so it seems.Since the registration of the first LLP on April 2, 2009, the count of LLPs in India has touched 2,457. India Inc certainly seems to relish the idea of having a business model that provides the benefits of limited liability, separate juridical presence and continued existence while simultaneously affording the flexibility of partnerships.
Mukesh Ambani has already shifted a significant chunk of his 142,000 crore equity holdings in RIL to limited liability partnerships (LLPs), a new ownership structure. If my memory is correct Ambani has moved 34.17% stake held in 32 privately-held companies to 61 companies which include 27 limited liability partnerships (LLPs).. According to the data available on the stock exchange websites, Ambani held 44.7% stake via 41 privately held companies as of March 31, 2010. Some of the holding companies held as high as 9.6% stake while others held just few hundred shares. And, at the end of June 30, 2010 he held the same stake under 71 privately-held companies.
As part of the restructuring,
Godrej Industries has earlier sougt shareholder approval to form a special purpose vehicle to implement a real estate project along with its subsidiary Godrej Properties. Godrej Ind is the listed holding company of the Godrej group, with subsidiaries in varied businesses such as foods, consumer products, chemicals and real estate projects.
Godrej & Boyce Manufacturing Company is a privately-owned company of the group (which runs the group’s famous furniture and locks business) and is also the main shareholder of Godrej Industries. Godrej & Boyce has leased out land to Godrej Industries to house its current facilities. Of this, Godrej Industries plans to develop 36.5 acres of land (14.6 hectares) along with Godrej Properties. The three companies have signed a memorandum of understanding and will form limited liability partnerships (LLP). These LLPs will enter into lease agreements with Godrej & Boyce to develop the land. Godrej Industries will invest only Rs 1 crore for this project.
The LLPs will be set up for real estate projects. Godrej Industries will get a 40% share of the profits of the LLPs while Godrej Properties will get the rest. If the LLPs incur a loss, Godrej Properties will bear the entire burden. Godrej Properties will raise the funds required for the LLPs to implement the project. That would explain the higher share of profits, as it will fund the project as well bear all the risk.
This may well be the first instance of a large listed corporate using the LLP route to undertake a business activity. LLPs are internationally well accepted but have only recently become part of the corporate landscape in India. The main attractiveness of this structure is that, as the name indicates, limits the liability of the partners to their investment in the LLP and not beyond. It is also said to be easier to set up and operate with relaxed reporting structures unlike the traditional incorporation laws governing companies under The Companies Act, 1956.
LLP will have more flexibility as compared to a company and have lesser compliance requirements as compared to a company.
I am not sure of the status of Ambani’s holding in Farm Enterprise which is hold 2.8% equity of RIL. As per 31st December, 2010 filing with NSE, it continues to hold that stake. Farm Enterprise commands a value of 550-600 in off market curretly. I fear if the stake of Farm Enterpriseis also transferred , it will remain but a shell company.
All of us are aware that Indian promoter families control companies through myriad investment companies. So, it makes sense for them to make the shareholding more “tax efficient” by replacing investment entities by LLPs.
I don’t know how will the stock price react such conversion.but certainly this is making me nervous and jittery.
Satyakam Mishra
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http://economictimes.indiatimes.com/personal-finance/savings-centre/analysis/small-equity-investor-how-to-safeguard-your-interests/articleshow/21742266.cms?curpg=3
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General Warning : Investment in Shares Can Be Injurious to Your WEALTH
Disclaimer : All facts stated in good faith. Please recheck every point before taking any decision. No responsibility with the writer / blog
