June 17, 2009

Binani Metals Limited

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Binani Metals Limited

Established in 1941, it is the promoter holding company of Braj Binani ( of Binani Cement ) group. Its Registered Office is at 32, Chowringhee Road Kolkata and administrative office at 12, JN Heredia Marg, Ballard Estate, Mumbai .

Directors are Braj Binani ( Chairman ) ; PR Damani ; Dr. Kala Pant ; Nidhi Binani ; JD Mehta ( Executive Vice Chairman ) ; Vinod Juneja ( Managing Director ) ; B. Srinivasan & V . Subramanian

The Company has tremendous Hidden Worth which makes its share very attractive to Collector-Investors

Share capital is Rs. 3 . 5 Crore.

Face Value of the Share : Rs.1000/- ( unique in the history of Listed Shares . But this face value has a reason from promoters point of view ),

Dividend : 25%

The Book Value of its share is Rs. 3500 /-. But if the fair market value of the underlying share holdings is carried out then the real value of the share may in Lakhs.

The Company holds thee promoter's holding in Binani Industries Limited ( quoted ) and Binani Zinc Limited. The tremendous hidden worth of the Company can be gauged from the fact that as on 31-03-08 the Cost ( Book Value ) of the shares was Rs. 42 Lakh and the Market Value was Rs. 56 Crore. Unquoted investments have , also ,tremendous hidden value too. The share capital is Rupees Three and a Half Crore.

This huge value of the Company appears to be the reason why the promoters are increasing their holdings the over the past few years. The various and ingenious routes taken to do this are :-

RIGHTS ISSUE ( 2006 )

http://www.sebi.gov.in/dp/binani.pdf

A few years ago a Rights Issue was made , at par, in the ratio of 3 : 1 . The objective stated in the Letter of Offer was a real estate project near Mumbai. Majority of the non promoter shareholders did not apply. Unsubscribed shares were allotted to promoters. After this Rights the Real Estate project was , for reasons best known to the promoters , was dropped .

CONSOLIDATION OF FACE VALUE FROM Rs. 100 to Rs.1000

Well, what a masterstroke in the history of Indian Capital Market. As majority of non - promoter share holders were holding below 10 shares or in numbers not in multiple of 10 , the Company devised a unique plan to consolidate the face value from Rs.100 to Rs.1000 . The reason given was that this move would improve liquidity .

Thus , very conveniently , majority of small shareholders were reduced to holders of fractional shares. They were , now , compulsorily paid up and their shares compulsorily sold. And what was the rate at which these were sold ?

Around Rs. 450 for Rs. 100 paid up share or Rs. 4500 for Rs. 1000 paid up share .The deal done by the trustees appears to be a privately negotiated one as there does not seem to have been any official trading in the share since 05-02-2002. And the last officially quoted rate was , also , Rs. 450 for a Rs.100 paid share.

BUY BACK OFFERS

The last buy back offer was made in 2009 at a price of Rs 4500 for Rs.1000 paid up shares ( Same rate as was officially traded in February 2002 ).

 ( Earlier a Rights Issue for raising capital . NOW a Buy back for reducing capital
)

Due to such ingenious efforts , the number of share holders , now, stands around 1760.

In a very surprising move ( around October 2010 ) Binani Metal Limited is transferring its very valuable holdings of Binani Industries Limited  and Binani Zinc Limited to another Company , namely , Dharmik Commondeal Private Limited . This transfer is not at market value ( or fair value in case of Binani Zinc Limited ) but at BOOK VALUE. This book value is a mere fraction of the real worth of these shares.

http://www.rareindianshares.info/2012/09/rate-89-paise-per-share-transfer-of-48.html

After Dharmik Commondeal acquired shares of Binani Industries from Binani Metal , Dharmik was amalgamated with Triton Trading ( Promoters` Holding Co ) which now holds 45 : 55 % shares in Binani Industries.

http://www.moneycontrol.com/livefeed_pdf/Sep2014/binaniindustriesltd_tritontrading_01_05092014.PDF


http://www.moneycontrol.com/bse/shareholding/shp_promoters.php?sc_dispid=BI10

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Status : Listed at Calcutta Stock Exchange But Illiquid

Worth : Tremendous Hidden Value

So a collector's item ( for Collector- Investors )



http://rareindianshares.blogspot.com/2010/12/asset-laden-investment-companies.html

http://rareindianshares.blogspot.com/2011/01/binani-metals-limited-why-face-value.html

http://www.binaniindustries.com/

http://mmb.moneycontrol.com/india/messageboardblog/message_thread/1944326/2284681


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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Binani Metals to Merge With Binani Industries

1 share of Binani Metal ( Unquoted ) = 50 shares of Binani Industries ( Quoted )

Binani Metal is Rs.1000 paid up. Binani Industries is Rs. 10 Paid up.




Blog Message 

1) Public Shareholders of Unlisted Companies , please email your Offers / Bids , along with your contact details to :-

akaj188@gmail.com

These would be published Free of Cost .
.

2 ) Our Changed Landline Tel to 

0181-2482460

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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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