Independent Valuers- Binani s Should Know How These Work

Message

Binani promoters know very well about the how valuation approved by Sebi works. They listed cement division in 2007 at 75 rs,  but within 3 yrs in 2010 delisted at 90 rs after some independent auditor valuation. They then had plans to sell the stake around 200 rs.  Of course they could not able to sell due to their greediness, and are losing or lost around 2000cr because of down turn or inability to cope up with debt.

Sebi should come with new regulation in delisting, such as exit price should be average industry PE or BV multiple which ever is higher.  Take the case of riddhi siddhi which is going to delist at 500 while bv itself is around 2000, market price should be around 4000. We can find many such cases of misusing independent valuation, where promoter increase the stake at the time of merging with his own entities or when issuing warrants to themselves.

Ram Manohara Reddy M

MRMReddy@outlook.com

====================

old post

February 21, 2018

Binani Cement Undervalued in NCLT Say Promoters

In a filing at the National Company Law Tribunal, Kolkata, Binani Industries has also said the resolution professional appointed for the company, Vijaykumar Iyer, and Deloitte, have vested interests in undervaluing the company so that they can give their “favourite bidder” the company.“It appears the valuation done by the resolution professional is absolutely wrong on account of valuers being misled by the RP, who has a personal interest in undervaluing the corporate debtor (Binani Cement),”

credit / for more please click

http://www.business-standard.com/article/companies/insolvency-binani-industries-questions-cement-arm-s-bidding-process-118022100002_1.html

for more . please click
http://www.rareindianshares.info/2018/02/binani-cement-bid-dalmia-bharat-highest.html

------------------------------
 Blog Comments


Deliberate Undervaluation by Valuers is big and serious issue , also , affecting investors

please read

February 14, 2018

Games Promoters Play ( on Minority Public Shareholders ).

Promoters use clever moves to forcibly eject Public shareholders when ever they feel like i.e. when the Company has excellent future prospects or when it suits the Promoters. 

1 ) Selective cancellation of Non Promoters shares.

2 ) Conversion of Equity shares in to Redeemable Preference Shares.

3 ) Consolidation of face value of one share to a Higher Denomination .


In all cases , valuers are appointed and Paid by the Company. Thus they are Promoters' Agents.

-------------------------- 

If the Company feels that the rate it is offering is " FAIR " then it should , also , be willing to offer to sell its entire majority  holding at that rate .

 The minority share holders ( and other Indian share holders ) should have a Right of Pre emption at that " FAIR " rate. 

For example if FCI OEN Connectors Limited feels that Rs.767 is a " fair rate " then Indian shareholders in general should be given an opportunity to form a SPV ( Special Purpose Vehicle ) Company which ( with suitable debt equity Leveraged Buy out ) and buy  at the same rate  the majority shares from the Promoters. 

A period of 6 months should be kept for giving this opportunity to Non Promoter Indian shareholders

FCI OEN Connectors-Compulsory Buyback at Fraction Value

FCI OEN Connectors is the latest Company ( like Cadbury India ) to compulsorily eject loyal Non Promoter shareholders @ Rs.767 /- per share. 

Real Valuation is Rs. 4000 + /- per share .

This anti Public shareholder move needs to be vigorously opposed

-----------------------

We are grateful to Mr. PP Zibi Jose of 

Tenrose Capital Services Ltd, Cochin

Tel - 0484- 2401685 ; 2401684 ( m ) 09388603877    email : tenrosekochi@gmail.com

  for taking up the issue

=================



Please click below for the entire fact sheet letter brilliantly written by Mr. Jose.


https://drive.google.com/open?id=0BxTiSqO5KwdeLUNYeW1qRHdTNUVrdUhkRXM0YS1kUTE1T0JZ

for more , please click

http://www.rareindianshares.info/2018/02/fci-oen-connectors-compulsory-buyback.html

.

=========================================

Ban All Face Value Consolidations to Higher Denominations

Whereas Split of the face value of one share to a Lower denomination should be allowed ,Consolidation to a Higher Denomination should be absolutely banned by SEBI.

Consolidation to a Higher Denomination was done by Binani Metals, Rasoi Limited , attempted by Digvijay Finlease ( later withdrawn under Public shareholders' pressure ) and , now, being attempted ( but opposed by shareholders ) of Macrofil Investments Ltd ( a Nusli Wadia Company ).

Macrofil Investments rareindianshares.coLimited ( Nusli Wadia Investment Company )

Macrofil Investments is an Investment Holding Company of Nusli Wadia group ( Bombay Dyeing, Britannia , Bombay Burmah , National Peroxide etc ).

Marofil Investments holds ( on a very small capital base of Rs.44 Lakh ) inter alia one third of National Peroxides' Equity.

In the last one year Market price of shares of National Peroxide has gone up from Rs. 600 to Rs.2000.

Macrofil Investments has , very cleverly , devised a plan to consolidate face value of one share from Rs. 10 to Rs. 5000.

All the Non Promoter shareholders would be evicted.

The rate set is around Rs. 3400 per share. This has been worked out by Valuers appointed and paid by Macrofil Investments.

The realistic rate should be Rs. 10,000 + ( for Rs.10 share ).

file:///C:/Documents%20and%20Settings/admin/My%20Documents/Downloads/EGM%20NoticeMacrofil%20(2).pdf 
 
=========================================================

also , please read

http://www.rareindianshares.info/2017/10/reed-relays-copy-of-nclt-share.html

==========================

Share Activism is a step in the Right Direction. There is , always , a threat of oppression by the Majority shareholders ( Promoters )on Minority ( Public ) shareholders.

========================================

old posts

October 13, 2017

Minority Shareholders' Activism- Zindabad- Fight Against Oppression

please click


https://www.bloombergquint.com/business/2017/10/12/billionaires-taken-to-task-by-rise-of-india-s-minority-investors



=======================

Blog's old posts

Till date, the most powerful tool in the hands of minority shareholders has been bringing a suit for oppression and 

mismanagement, said Suhail Nathani, managing partner, Economic Law Practice. "Under the 2013 Companies Act, 

Section 245, over 100 shareholders can also file a class action suit but its application and enforcement is still nascent," 
he said. 

Read more at:

http://economictimes.indiatimes.com/articleshow/60370946.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst

==================================

old posts

December 08, 2010

Asset Laden Holding / 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 by Promoters  as UNWANTED , like poor relatives at a rich cousin's marriage party.

for more , please click

http://www.rareindianshares.info/2010/12/asset-laden-investment-companies.html

============================

September 05, 2017

Justice Demanded by Small Investors From Asset Laden Investment Holding Companies - ET Link

please click the link

http://economictimes.indiatimes.com/markets/stocks/news/small-investors-look-to-raise-concerns-about-undervalued-holding-companies/articleshow/60370946.cms

-----------------------------------------------------------

HUM MEHNAT KASH ISS DUNIYA SE

JAB APNA HISSA MANGEY GEY

IK BAGH NAHI; IKK KHET NAHIN

HUM SAARI DUNIYA MANGEY GEY

( Josh Malihabadi )