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.

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 , a Listed Company , 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 )

Some Investment Holding Companies.

FARM ENTERPRISES LIMITED ( Reliance Enterprises Limited )

Mukesh Ambani Group ; Promoters' Shares in Reliance Industries Limited ; Not Listed , Massive EPS - No Dividend . AGM not in auditorium  ; Very few non company share holders attend AGM .Conversion of Equity Shares   to Preference shares) etc etc. Rate in unofficial market around Rs, 600 ( True Value may be in  thousands  ) .

There should be listing in the NSE .


Belong to Samir Jain of Bennett Coleman And Company ( Times of India Group ). These companies hold promoters ' shares in Bennett Coleman And Company Limited .

Example : PNB Finance And Industries Limited ( Equity Rs. around 3 cr , Face value Rs. 10 ) holds , on consolidated basis , around 58 lakh shares of Bennett Coleman And Company Limited . This effectively translates into around 2 shares of Bennett Coleman And Company Limited for every one share of PNB Finance And Industries Ltd. Value of one share of Bennett Coleman And Co. has been worked out by some analysts to be very very High.

But share of PNB Finance And Industries Limited ( Face Value Rs. 10 ) is being traded unofficially Rs. 4500 - Rs.5000 which is a mere fraction of its true value. Although the EPS for the financial year ended was around Rs. 79  /- ,  dividend paid was only 6 % (  a return of 60 paise on an investment of nearly Rs. 5000 ).
( In the unofficial trades ,share price of Bharat Nidhi is around  25 % higher than that of PNB Finance And Industries Limited .Rate of Camac Commercial could be higher than Bharat Nidhi Limited )( There are , presently ,only buyers of PNB Finance and Bharat Nidhi shares and practically no seller )

No official trading in CSE .

DSE is closed.

There should be listing in NSE.

Shares should be split in to Re. 1 each .


BG Bangur group's holding company. Holds promoters shares in Shree Cement Limited ( reportedly around 8 : 5 Lakh ). No trading of NBI Industrial  ,: No dividend . Many complaints of non receipt of Annual Reports.

Digvijay Finlease Limited


Holding company of Braj Binani group Holding very valuable shares of Binani Industries Limited and Binani Zinc Limited . 3 : 1 Rights Issue made for a Real Estate project which was later dropped . Promoters increase their holding.  Some times increasing share capital ( Rights Issue ). Some times decreasing Share Capital  ( Share buy backs ).

FACE VALUE INCREASED TO UNPRECEDENTED Rs. 1000 ( No other Listed company in India has a Face Value of Rs. 1000 ). Many share holders became holders of fractional shares . Their ( including many dormant folios  ) shares compulsorily sold   at fraction of the true value. Share value should have been split to Re. One.Now , valuable holdings being transferred to a private limited company i.e. Dharmik Commondeal Private Limited not at true value but at book value .


Of  Religare / Fortis group. Made a fortune by selling Ranbaxy shares. Although listed in BSE ( actively traded ) but no dividend


On a capital base of around Rs. 21 crore , Bharti Telecom holds around 172 crore shares of Bharti Airtel ( worth around Rs. 53 ,000 crore ). For the financial year 2009 -10 , Bharti Telecom received dividend income of Rs.173 crore which was utilised to buy a further 55 lakh shares of Bharti Airtel . But no Dividend for the share holders of Bharti Telecom Limited




Summit Securities

Kalyani Investment Company

Balmer Lawrie Investment

Placid Limited


Macrofil Investments Limited

Holding company of Nusli Wadia group ( i.e. Bombay Dyeing group ).

Yamuna Syndicate Limited

Holding Company of  Isgec Heavy Engineering ( Saraswati Industrial Syndicate ) of Ranjit Puri Group

Digvijay Finlease Limited

Holding Company of B.G. Bangur Group


please , also , read

September 05, 2017

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

September 18, 2017

On the other hand  there are some progressive and pro- investor investment companies ( whose example all investment companies should follow ).


Bajaj Holding And Investment Limited
Tata Investment Corporation Limited
Macrofil Investments ,Digvijay Finlease , NBI Industrial Finance and other Unlisted Promoters' Holding Companies should follow the examples of

1 ) Max India Promoters are paying a fair price of Rs.94 for every share ( Re. 1 paid up ) of their Unlisted Holding Company - Cheminvest Limited.

2 ) Reliance Industries Promoters gave 1 share of Reliance Industries for every 1 share of their Unlisted Holding Company - Farm Enterprises Limited ( earlier  Reliance Enterprises )


( Josh Malihabadi )

General Warning : Investment in Shares Can be Injurious to Your Wealth

Disclosure : We have  family holdings in many of the Companies mentioned above

Disclaimer : All comments / facts stated purely in good faith to further the interests of fellow public investors. Please recheck every fact.
NO responsibility with this blog / writer


Ashwani Kumar Aggarwal said...

October 03, 2017
Macrofil Investments- Share Consolidation to Rs.5000. To Kick Our Small Investors
Macrofil Investments has chosen the cheap trick of consolidating the face value of its share from Rs. 10 to Rs. 5000 to kick out loyal Non Promoter shareholders at a fraction of Intrinsic NAV.

Macrofil Investments claimed that at an EGM dt 18 /07/17 such a Resolution was passed.

We ( shareholders ) never received this EGM Notice.

Macrofil Investments is an Asset Laden Company holding Promoters shares of National Peroxide.


Consolidation of Face Value to a Higher Denomination SHOULD NOT BE ALLOWED UNDER ANY CIRCUMSTANCE.


Shareholders of Macrofil Investments / Investor Community should oppose tooth and nail such anti small shareholder

1 ) writing to Macrofil Investments at
2 ) Filing Objections with National Company Law Tribunal ( NCLT ) Mumbai Bench where this Petition by Macrofil is pending
Address: 6th Floor, Fountain Telecom, Building 1, Mahatma Gandhi Road, Fort, Mumbai, Maharashtra 400001
Phone: 022 2261 1456
3 )
writing to ( as this is an Unlisted Company )

Ministry of Corporate Affairs,
'A' Wing, Shastri Bhawan, Rajendra Prasad Road, New Delhi, Delhi 110001

Shareholders should , also ,demand listing of Macrofil Investments in NSE / BSE

Please also click

Investors Use Section 245 Against Microfil Investment Share Consolidation

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:


Recently Digvijay Finlease made a proposal of consolidating the face value of its share from Rs. 10 to Rs. 1000. Those holding fractions i.e. holding 1 to 99 shares were to be compulsorily paid Rs. 200 per Rs. 10 share. The intrinsic NAV of one share of Digvijay Finlease ( Rs. 10 paid up ) had been worked out by some to be Rs.40,000 .

After shareholders raised the matter with the Company. Ministry of Corporate Affairs , New Delhi and NCLT , Digvijay was forced to withdraw this Anti Small Shareholder step .



Ashwani Kumar Aggarwal said...

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.

Ashwani Kumar Aggarwal said...

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 rare should be Rs. 10,000 + ( for Rs.10 share ).