ELCID INVESTMENT IS HOLDING 14 SHARES OF ASIAN PAINT FOR EVERY ONE SHARE HELD .
MKT RATE OF ASIAN PAINT IS 4800
SO ONE SHARE OF ELCID INV IS 14 x 4800=67200
ELCID IS HOLDING 28 LAC ASIAN PAINT AGAINST CAP OF 20 LAC(TWO LAC SHARES)
For Elcid Annual Report , please click :-
Anil Goel
2 comments:
Investment holding companies which generate cash through dividends and capital gains have to pay dividend distribution tax (DDT) and hence do not declare handsome dividend.
BNL and PNB are good examples
Asset Laden Investment Companies- Promoters Uninterested in True Value Unlocking
Promoters initially invite public investment by selling shares in their holding companies . These holding companies promote new companies Over a period of time their promoted ventures succeed and the original investment made by the holding company multiplies many times over in value . Now instead of genuinely sharing the wealth with all the stakeholders non promoter minority share holders of original holding companies are treated as UNWANTED , like sort of poor relatives at a rich cousin's marriage party.
1 ) Majority stake in these Holding companies is always with the Promoters. So they are able to get all Resolutions passed . There are no Institutional holdings ( domestic or Foreign ). So level of transparency in these companies is not at the same level as widely held companies.It suits the promoters to keep these companies in low profile and keep its true worth hidden.. Non promoter share holders suffer.
2 ) Over a period of time many share holders ' folios become dormant due to death of original shareholders and court cases .
3 ) In many pre 1947 incorporated companies many share holders migrated to Pakistan . Such folios ( Custodian of Enemy properties ) also are dormant .
4 ) Either these companies are not listed or these are kept only NOTIONALLY listed in Regional Stock Exchanges. Such listings are of not much use to the non promoter share holders.
5 ) Despite massive EPS these investment companies either skip dividends or declare woefully low dividends. Such moves keep the company in low profile and the share rate ( if any ) artificially low. Such practices hurt non promoter share holders' interests .
6 ) Despite bulging Reserves Bonus Shares or Splits are not done. (Very surprisingly , Binani Metals Limited has done a Reverse Split to unprecedented Rs. 1000/-.
7 ) Many such investment companies avoid sending Annual Reports to Non Promoter share holders.
8 ) Some such companies shift their Registered Offices to obscure places and hold meetings at venues which are difficult to reach. Many a time only company officials ( with Proxies ) are in attendance to see the proceedings through.
Investors ( non promoter ) of such investment companies should demand from the Government and SEBI to devise special Rules and Regulations for these companies
1 ) Such investment holding companies should compulsorily be listed in BSE / NSE. ( to improve liquidity ).
2 ) Face value should be split ( to improve liquidity )
3 ) Meaningful quantum of dividends should be declared . ( Minimum 25 % of the Financial Year's EPS should be declared as Dividend percentage )
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