March 06, 2011

Valuations of Bennett Coleman and Bharat Nidhi Shares

I am giving below some useful details in respect of Bharat Nidhi shares and their valuation based on their holding of Bennet Coleman shares :

As on 31st July, 2005 

Bharat Nidhi Total Shares 29,19,722
Equity Capital of BNL 2,91,97,220
BCCL No. of Shares 3,18,83,936
BCCL Shares owned by Bharat Nidhi 77,82,400
% Holding of BNL in BCCL 24.41%
NAV per share of BCCL as per ENIL prospectus 24,118.20
Aggregate Book value of BCCL 7,68,98,31,45,235
Proportionate Share of BNL in BV of BCCL 1,87,69,74,79,680
NAV Per Share of BNL (considering BCCL alone) 64,286

The ENIL (Radio Mirchi's) IPO offer document is available on following link : http://www.moneycontrol.c om/news_html_files/pdffil es/mar2007/Entertainment% 20Network.pdf
NAV per share of BCCL as per ENIL prospectus NAV % increase
2005 24118.2 30%
2004 18563.2 38%
2003 13441.0

Before declaring so to SEBI and to public, detailed exercise must has to been done. Based only on the NAV of 2005, the valuation goes very high.

Now with bonus of 1:8, no. of shares held in BCCL have become 9 against 1. Then share of Rs. 10 face value has been split into 10, share allotted under ESOP is for Rs. 446 which indicates value of per share of BCCL 446 X 10 X 9 = 40,140 which is quite reasonable when compared to value of Rs. 24,118 in 2005, keeping in view progress made by Bennett Coleman during last 5 years. Based on this value of Rs. 40,140, value per share of BNL will be Rs. 106,992.

I welcome view of others and if someone disagrees, let him challenge these figures.


We express our gratitude to Renu for sharing this information.


Ashwani Kumar Aggarwal said...

To leave some thing on the table for the employees ,ESOPS are given at a fairly decent discount to the Market value or , as in the case of Bennett Coleman and Co. , to the perceived NAV of the share.

So , can assume the perceived actual NAV of Bennett Coleman to be 50 % to 100 % more than the ESOP rate . This would mean theat the actual percived NAV of one share of Bennett ,Coleman and Company to be between Rs. 60 ,000 to Rs. 80,000 ( Rs.10 paid , Equity of Rs. 32 crore. )

Don Quixote said...

So much for Oswal Agro promoter

FLAMBOYANT Indian tycoon Pankaj Oswal abandoned a $3.5 billion oil refinery project in Queensland as he was preparing to unveil the plan alongside Premier Anna Bligh, in a move that has left creditors and workers owed millions of dollars.

The Weekend Australian has obtained a nine-page memorandum that was given to prospective contractors on the project before Mr Oswal abruptly left Australia in December, when his flagship company, Burrup Fertilisers, was put into receivership.

Mr Oswal and his wife Radhika have spent the past several days in the luxury resort of the Maldives, resisting calls to return to Australia to answer questions over more than $100 million that was allegedly siphoned out of Burrup Fertilisers.

Reporters from The West Australian newspaper and the Seven Network's Today Tonight flew to the Maldives to interview Mr Oswal, in his only media interviews since leaving Australia.

During their 10-year stay in Perth, the Oswals were well-known for their extravagant lifestyle including lavish parties, luxury cars and a $70m Indian-style mansion that was being built in the city's upmarket Peppermint Grove area.

vishwaasp said...

In view of Dons remarks it may not be prudent to buy or hold Oswal Agro delisted shares

Anonymous said...

Good analysis fact this was put up by me on the M3 Message board quite some time back....however, as per my info, the ESOP for the BCCL employees is on the shares of FV Rs 10 and not Re 1/-

Anonymous said...

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Anonymous said...

Dear Ms.Renu

Can u please tell us something about PNB Finance & Industries Ltd. It will be really very helpful to us (This year frebruary - Somebody ask my PNB shares @ 23000/- what is the current price?)