U P Hotels Limited

NEW post

 http://www.rareindianshares.info/2022/03/up-hotels-owners-of-clarks-group-to.html

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December 04, 2015

UP Hotels - No Delisting ,No Bonus , No Quotation- Please Guide

http://www.rareindianshares.info/2015/12/up-hotels-no-delisting-no-bonus-no.html

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U P Hotels Limted

Registered Office : 1101, " Surya Kiran " 19, Kasturba Gandhi Marg,
New Delhi 110001.

Chairman and  Managing Director , LP Gupta ; Vice Chairman & Managing Director Birendra Kumar ; Apurv Kumar , Executive Director ; Rupak Gupta , Executive Director

U P Hotels Limited was set up in 1961. It owns the famous and highly respected " CLARKS ' group of luxury hotels :-

Hotel Clarks Shiraz , Agra
Hotel Clarks Amer , Jaipur
Hotel Clarks Avadh , Lucknow
Hotel Clarks Khajuraho, Khajuraho


As on 31-09-09 , Share Capital , Rs. Five Crore Forty Lakh ; Rererves Rs. Rs. 44 crore. It is a Zero Debt Company. For the year ended 31-09-09 on a turnover of Rs. 59 crore , Net profit Rs. 8.9 crore. Dividend 25%

No. of shareholders ; around 1060 ; Demat ratio -about 25% ;
Over 88% shares are held by promoters.

Status : Listed at BSE , Mildly Liquid ( Traded nearly daily ). Closing rate on 16-09-09 around Rs.180.



It appears , Hotel industry's prospects would improve considerably in future.

http://www.hotelclarks.com/

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UP Hotels Bonus Issue - Non Promoters Only- Ratio 31 :2 0

Non Promoter Public Share holders of UP Hotels get a bonanza . Only for them  Bonus Issue in the ratio of 31 bonus  shares for every 20 held.

http://www.moneycontrol.com/news/announcements/up-hotels-updatesratiobonus-shares_883905.html

Does this mean that UP Hotels has dropped its earlier plans to Delist ?

A Dividend of 50 % has been declared for 2012-13

UP Hotels owns the chain of famous Clark Group of Hotels .

http://www.rareindianshares.info/2009/09/u-p-hotels-limited.html

http://www.hotelclarks.com/

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http://www.moneycontrol.com/news/announcements/up-hotels-approves-delistingequity-sharesbse_824127.html

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Bonus Shares For Non Promoters Only - What Would Be Ex - Bonus Price ?

 These days a new development has taken place . Some Companies , to comply with Minimum 25% Public Holding Directive of SEBI  ,are issuing Bonus shares only to their Non Promoters

Example

UP Hotels 

Bonus Ratio : 31 Bonus Shares For 20 Held

http://www.rareindianshares.info/2013/05/up-hotels-bonus-issue-non-promoters.html

Here , around 12 %  shares are held by the Non Promoters

http://www.rareindianshares.info/2009/09/u-p-hotels-limited.html

                          or

Ras Resorts

Bonus Ratio

1 : 5 ( Please Recheck )

http://www.moneycontrol.com/india/stockpricequote/hotels/rasresortsaparthotels/RRA



Q -WHAT WOULD BE THE EX BONUS RATES IN SUCH LIKE CASES OF LIMITED BONUS ISSUES ??

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Answer  By Bhavikk Shah

As for the bonus to non-promoters are concern- the equation remains the same that is -

At present UP HOTELS CMP is Rs. 353.90 per share . It declared bonus of 31 new for every 20 held - so after bonus the price FOR INDIVIDUAL INVESTOR should be Rs.138.78/share.
(CMP Rs.353.90 x 20 all ready held = Rs.7078; Bonus of 31 new so your total investment of Rs. 7078 remains the same but the total number of shares increase to 51 shares , so Rs. 7078/51 = Rs.138.78/sh)

Now, for promoters -
Company has total of 54,00,000 shares - promoters hold 88.39% or 47,72,960 shares.

NOW - AFTER BONUS -
Co's 54,00,000 shares will become 63,71,912 shares (Total shares 54,00,000; bonus to non promoter so minus the promoter holding of 47,72,960 from this 54,00,000 = 6,27,040 shares;Bonus is of 31 new for 20 held so- 6,27,040 divide by 20 already held will give you 31,352 shares multiply this by 31 new shares will give you 9,71,912 new shares ; Add this 9,71,912 with 54,00,000 will give you 63,71,912 shares)-
now, promoters will not be getting Bonus so their holdings remains same at 47,72,960 shares but their percentage will be reduced from 88.39% to 74.90% a reduction of dot 13.49% in promoters holding. This is also one kind of dilution.

BUT this promoter dilution will impact the market cap and co's MCAP before bonus is 54,00,000 Shares X CMP of Rs.353.90 = Rs.191,10,60,000 Cr
Now divide this 191 Cr with new Total shares = Rs. 191,10,60,000 / new total shares of 63,71,912 = Rs. 299.91
I think UP HOTELS should trade near Rs.300 after bonus.

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THANKING YOU TO GIVE ME AN OPPORTUNITY TO EXPRESS MY SELF

REGARDS
BHAVIKK SHAH
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Blog 's extreme gratitude to Bhavikk Shah for his brilliant analysis.