February 24, 2018

Essar Steel Bid-Latest News

http://www.business-standard.com/article/companies/lakshmi-mittal-meets-jaitley-on-essar-steel-bid-conveys-serious-interest-118022300807_1.html

https://www.bloombergquint.com/business/2018/02/12/the-slurry-pipeline-that-could-muddy-essar-steels-insolvency-bid

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Essar Steel Limited ( earlier known as Essar Gujarat Limited ) through at the Reverse Book Building process in 2007 delisted from the Stock Exchanges at the " discovered Price " of Rs. 48.


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For More on Essar Steel, please click

Will Ultratech Get Binani Cement ??

please click

http://www.business-standard.com/article/markets/binani-ind-up-5-on-talks-of-ultratech-closer-to-acquire-binani-cement-118022300188_1.html


Binani Cement delisted in 2011 at the Exit price of Rs 90 /-


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old post

February 18, 2018

Binani Cement Bid- Dalmia Bharat Highest

please click

https://www.bloombergquint.com/business/2018/02/17/bain-backed-consortium-is-said-to-be-highest-bidder-for-binani

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old posts

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http://www.livemint.com/Companies/oFIy0niG2DnRz8BHOPnVqN/Binani-Cements-11-mt-output-capacity-may-be-valued-at-Rs76.html


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old posts

December 26, 2017


Binani Cement-Aditya Birla, Shree Cement , Others in Race

please click




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OLD POSTS

December 06, 2017


Binani Cement---Dalmia Bharat + Piramals Interested

please click

http://www.rareindianshares.info/search?q=binani+piramal

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November 03, 2017


Piramals Interested in Binani Cement

please click

http://www.business-standard.com/article/companies/piramal-group-in-race-to-buy-stakes-in-binani-cement-electrosteel-steels-117110300057_1.html


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old posts

August 07, 2017


Binani Cement-Insolvency Proceedings Start

Top cement players eyeing Binani Cement assets post insolvency nod by NCLT 
Read more at:

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June 11, 2017


Binani Cement to Issue Shares @ Rs.185/53p in Loan Restructuring


It has massive debt.

The Banks  sold off their Loans to Binani Cement to ARC ( Asset Reconstruction Companies ).

Binani Cement , now , has finalised debt restructuring.

As part of the bigger deal ,Binani Cement  would issue around 2 crore 18 lakh ( 2,18,50,536 ) shares of Rs.10 each  to Asset Reconstruction Companies led by Edelweiss ARC @ Rs.185/53 p each.

Post issue the percentage of Promoters' holding will fall to 88: 21 % from current 98:43 %.

( It means when 10:22 % stake is being valued at around Rs.406 cr, the enterprise value of Binani Cement ( Unlisted is around Rs.4000 cr )- Please Recheck this point.    

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OLD POST s

January 14, 2016


Binani Cement's Massive Debt - Banks to Sell Loans to ARC


It appears , now , nearly all the Equity is with the holding company of Braj Binani , Binani Industries ( Listed ).



It seems Binani Cement , because of its massive debt ( reportedly Rs. 3500 crore ) is in deep trouble.

Annual Report ( 2014 -15 ) of holding Company Binani Industries states :-

BCL suffered major setback in its performance due to poor demand
 scenario that prevailed in the Cement Industry owing to reduced
 activities in Infrastructure and Real Estate sectors. The situation was
 further aggravated due to certain coercive actions initiated in the
 last quarter of FY''14, by the Rajasthan VAT Authorities (RVAT), in
 connection with all past dues which were earlier in dispute. This lead
 to intermittent stoppage of production and dispatches of cement
 Furthermore, liquidity constraints have also affected the smooth
 operations of BCL. BCL has paid Rs. 278 crore to the RVAT authorities
 during February 2014 to September 2015. BCL has been sanctioned a
 restructuring package by the lenders in the Joint Lenders Forum for
 funding the sales tax liability. Lenders'' have disbursed only part of
 the sanctioned amount. Immediate disbursement of the entire sanctioned
 loans will facilitate settling of issues with the RVAT authorities and
 normalization of operations

http://www.moneycontrol.com/annual-report/binaniindustries/directors-report/BI10#BI10

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Earlier , attempts were made to restructure debt ( by converting in to Equity ) or finding a new Promoter ( MNC ). But no progress.


"People close to the development said Binani Cement was also approached by a multinational for an acquisition------. 

Now , the Banks have sold off their Loans to Binani Cement to ARC ( Asset Reconstruction Companies )


"
After failed restructuring efforts, banks are in the process to sell off loans of Binani Cement to asset restructuring companies (ARCs), sources say. The company has debt to the tune of Rs 3,500 crore. 

Read more at:.


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Binani Cement Official Site :-

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General Warning : Investment in shares can be injurious to your WEALTH.

Caution :The blog writer has personal/ family members' holdings in this company ,so please make suitable "provisions " for likely over optimism

( PS : All information given in good faith. Please recheck all facts etc. No responsibility with this author / blog. )

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new postJune 12, 2017

Binani Cement Worth Rs.4000 cr- Binani Industries Only Rs.235 crore




Binani Inds holds nearly all the share capital of delisted Binani Cement. Binani Cement has been valued atRs.4000 cr.

 Whereas Market Cap of Binani Industries is only Rs.235 crore 

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please , also , click




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....

Important : Please do not take Any Investment Decision based on the above stated analysis. Please only do a further Self Study
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General Warning : Investment in Shares Can be Injurious to Your WEALTH

Disclosure : The Blog writer in his / family names has holdings in this Binani Cement Limited. So please make suitable " provisions " for any likely Over Optimism

NB :All information given in good faith. Please recheck every point before taking an investment decision.No responsibility with this blog / blog writer.

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February 24, 2018

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, 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

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 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.

for more please click

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, 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


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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


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



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

.

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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 
 

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also , please read


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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.


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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



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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:

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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

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September 05, 2017


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

please click the link



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HUM MEHNAT KASH ISS DUNIYA SE

JAB APNA HISSA MANGEY GEY

IK BAGH NAHI; IKK KHET NAHIN

HUM SAARI DUNIYA MANGEY GEY

( Josh Malihabadi )