December 24, 2009

Farm Enterprises Limited ( Reliance Enterprises Limited )

Farm Enterprises Limited is the new corporate entity of the erstwhile Reliance Enterprises Limited.

Registered Office :

506 , Chiranjeev Towers,
43,Nehru Place,
New Delhi-110019

Registrars :-

Karvy Computershare Private Ltd.
Hyderabad-34

Directors :
JSP Bansal,
Ashwin Khasgiwala
Atul Kumar Tandon
Rajendra Mangal

Assistant Company Secretary :
Hetal Rathod

As per the Annual Report 2008-2009

Equity Share Capital : on 31-03-09 :Around Rs. 6 crore
In the Previous Year i.e. as on 31-03-08, equity Share Capital was merely Rs. Six Lakh (60,000 equity shares of Rs. 10 each )

Face Value per Share : Rs.10
( The Company seems to have issued Optionally Convertible Preference Shares which on conversion would affect the Equity Capital )

As on 31-03-2009 there were around 2 crore  Series "A "12 % Optionally Convertible Cumulative Preference Shares outstanding and around 11 crore  32 lakh Series "A " 12 % Optionally  Convertible Cumulative Preference Shares ( Re 1 paid up ) outstanding .

Reserves : Rs 1950 crore
This would translate in to a Book Value of about Rs.3150 or so.

The company holds ( Pre Bonus ) 4 crore 60 lakh shares of Reliance Industries Limited . These may be worth , at CMP ( Ex 1:1 Bonus ) around Rs.9200 crore or roughly Rs.14750 per EQUITY share outstanding on 31-03-09 , thus giving it tremendous hidden worth.
( If the Equity Share capital as on 31-03-08 was taken and CMP of Reliance Industries Limited then the figure was Rs. Fifteen Lakh + , per one share of Rs.10/-)

  Dividend : Nil

Status : Shares appear to be not listed , hence illiquid

PLEASE NOTE :It appears that the Holders of  Optionally Convertible Preference Shares of Farm Enterprises ( Reliance Enterprises ) Limited  have to EXERCISE their option to convert in to EQUITY shares before the deadline. Otherwise their Right to Convert would Lapse.  

There are two types 12 % Optionally Convertible Cumulative Preference Shares ( Series A ).  

1 ) Fully Paid Up ( Rs. 10 / - ) each . Each such share can be converted into One Equity Share . Equity share can fetch around Rs. 600  which is much more profitable than the Redemption price of Rs. 275   which would be paid by the Company to all those holders ( after 5 years from Allotment ) who do not exercise the Right to Convert .


2 ) For Re. 1 paid up ( Face Value Rs. 10 ) the holder can apply for one equity share by making a further  payment of Rs. 199  ( Total Cost Re. 1 + Rs.199  = Rs. 200 ), before 5 years of allotment . If no application for equity shares  is made then holders would get back Re. 1 per share at the end of the Tenure

CONVERSION / APPLICATION TO EQUITY SHARES STRONGLY RECOMMENDED 

http://www.mydigitalfc.com/2008/mukesh-farms-reliance-control 

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

There should be listing of both Equity and Preference shares of Farm Enterprises Limited on the NSE 


--------------------------------------------------------------------------------------------------------------------------------                             ( Important Comment From Mr. Satyakam Mishra )

Limited Liability Partnership Is The New Buzzword In The Corporate World


Limited Liability Partnership, or LLP, is the new buzzword in the corporate world. Or so it seems.Since the registration of the first LLP on April 2, 2009, the count of LLPs in India has touched 2,457. India Inc certainly seems to relish the idea of having a business model that provides the benefits of limited liability, separate juridical presence and continued existence while simultaneously affording the flexibility of partnerships.

Mukesh Ambani has already shifted a significant chunk of his 142,000 crore equity holdings in RIL to limited liability partnerships (LLPs), a new ownership structure. If my memory is correct Ambani has moved 34.17% stake held in 32 privately-held companies to 61 companies which include 27 limited liability partnerships (LLPs).. According to the data available on the stock exchange websites, Ambani held 44.7% stake via 41 privately held companies as of March 31, 2010. Some of the holding companies held as high as 9.6% stake while others held just few hundred shares. And, at the end of June 30, 2010 he held the same stake under 71 privately-held companies.

As part of the restructuring,
Godrej Industries has earlier sougt shareholder approval to form a special purpose vehicle to implement a real estate project along with its subsidiary Godrej Properties. Godrej Ind is the listed holding company of the Godrej group, with subsidiaries in varied businesses such as foods, consumer products, chemicals and real estate projects.

Godrej & Boyce Manufacturing Company is a privately-owned company of the group (which runs the group’s famous furniture and locks business) and is also the main shareholder of Godrej Industries. Godrej & Boyce has leased out land to Godrej Industries to house its current facilities. Of this, Godrej Industries plans to develop 36.5 acres of land (14.6 hectares) along with Godrej Properties. The three companies have signed a memorandum of understanding and will form limited liability partnerships (LLP). These LLPs will enter into lease agreements with Godrej & Boyce to develop the land. Godrej Industries will invest only Rs 1 crore for this project.

The LLPs will be set up for real estate projects. Godrej Industries will get a 40% share of the profits of the LLPs while Godrej Properties will get the rest. If the LLPs incur a loss, Godrej Properties will bear the entire burden. Godrej Properties will raise the funds required for the LLPs to implement the project. That would explain the higher share of profits, as it will fund the project as well bear all the risk.

This may well be the first instance of a large listed corporate using the LLP route to undertake a business activity. LLPs are internationally well accepted but have only recently become part of the corporate landscape in India. The main attractiveness of this structure is that, as the name indicates, limits the liability of the partners to their investment in the LLP and not beyond. It is also said to be easier to set up and operate with relaxed reporting structures unlike the traditional incorporation laws governing companies under The Companies Act, 1956.
LLP will have more flexibility as compared to a company and have lesser compliance requirements as compared to a company.

I am not sure of the status of Ambani’s holding in Farm Enterprise which is hold 2.8% equity of RIL. As per 31st December, 2010 filing with NSE, it continues to hold that stake. Farm Enterprise commands a value of 550-600 in off market curretly. I fear if the stake of Farm Enterpriseis also transferred , it will remain but a shell company.
All of us are aware that Indian promoter families control companies through myriad investment companies. So, it makes sense for them to make the shareholding more “tax efficient” by replacing investment entities by LLPs.

I don’t know how will the stock price react such conversion.but certainly this is making me nervous and jittery.

 Satyakam Mishra

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http://economictimes.indiatimes.com/personal-finance/savings-centre/analysis/small-equity-investor-how-to-safeguard-your-interests/articleshow/21742266.cms?curpg=3
General Warning : Investment in Shares Can Be Injurious to Your WEALTH

Disclaimer : All facts stated in good faith. Please recheck every point before taking any decision. No responsibility with the writer / blog

18 comments:

saurabh said...

Dear sir,I m having 12%opionally convertible cumulative prefrence share fully paid up...war folio no.009235183. I didnt recieved aqny dividend on the same.
Plz solve my this problem regarding dividend.

Thanks & ragards
H.K.Monga
09211250866

BharatKumar said...

if i want sell my hoding at what price? please advice me.
whene share will be listed?
at present we donot get divident or bonus.

Ankur Sodani said...

Dear sir,I m having 5 nos shares in the name of Reliance Enterprise Ltd. I didnt recieved any dividend on the same nor any changes have been informed.
kindly suggest.

Thanks & ragards
Ankur Sodani
09893007899
ankursodani@gmail.com

pooja said...

We are holding shares of Farm Enterprise ltd. and we are interested in selling these shares.pls inform us when is the company goin to be listed???
Pls rply me at kdpd@ymail.com

Anonymous said...

I am holding preference shares of series A of Farm Enterprise ltd. and we are interested in selling these shares.pls inform us when is the company goin to be listed???
Pls rply me at grvgrg2@gmail.com

Niraj Kajaria said...

We are buying Farm Enterprises at Rs.575/= call 9830022485,9831077353

Srinivasa Gupta said...

i am having 12% optionally convertible cummulative preference shares of 10/- each (series-A)when shall i opt for getting an equity share and what is the procedure . Please intimate me asgupta1958@gmail.com
09448466173.

Anonymous said...

i want to sell my following Physical share - Buyers Welcome

Share Name
Tata steel
Tata honeywell ltd / Honeywell Automation India Ltd.
Reliance industries ltd
Tata infotech ltd.
Dabur india ltd.
Vinati organic ltd.
Core laboratories
Powmex steels ltd.
Precision wires india ltd.
Crone communication ltd.
Sterlite technologies ltd.
United phospharus ltd.
M.J pharmaceutitals ltd.
Tata pimken ltd.
Ahmednagar forgings ltd.


If anyone is interested to buy then please feel free to contact :

Parvez Vahora
Ahmadabad, Gujarat.
M : 8866336970

Ankur said...

I have few shares of Reliance Enterprise in physical mode. Can i approach someone to get share of Farm Enterprise. Once converted into Farm, i would like to sell them.

Ankur

Mukund Kini said...

I am buying Griffin Chemicals in physical form @Rs 5/- per share in case if any one has the same please revert to mukundkini@rediffmail.com

Mukund Kini said...

Buying Sriman organic Chemicals Ltd., Non-Traded Non-Listed Shares @Rs 5/- per Share.

Seller may contact on mukundkini@rediffmail.com

Mukund Kini said...

Buying Hemadri Cements @ Rs 6/- per Share.
Contact mukundkini@rediffmail.com

Anonymous said...

dearsir ihave the following shares i
in physical form i want to sell them dcl finance ltd , hindusthan leasing ltd integrated finance ltd integrated kinetic finance ltd hindusthan development corporation ltd dcl polyster-farm enterprises reliance polyethylene ltd contact me on mobile 9821354184 suresh.gupta293@gmail.com

GreatOne said...

This is Shantanu.
I am holding Farm Enterprise (49 shares).. & TECIL Chemicals & Hydro Power Ltd (250 shares) in physical form.

how to sell them ?

My contact details are :
Email : shanykulkarni@gmail.com
Mobile No. 9619180409

Anonymous said...

I am buying Resins & Plastics shares anyone interested in selling email me on austock@gmail.com

SUNIL said...

I wish to buy Farm Enterprise shares. If any one has them, i can buy at negotiable price.

Sunil Maheshwari
9702142802

Amit said...

My farm enterprises got automatically exercised from my icicidirect account!! They were recently transferred to ICICI.

On asking the icici officials said that the 12% pref shares were to be automatically redeemed at 275 /share as I had not exercised the option.

Is it so? I am not sure if this should have been automatically exercised without my consent. Please guide what should I do.

Regards,
Amit

Anonymous said...

Any price idea of farm enterprises share