Polson - Share Price Shoots Up

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OLD POST  2013

May 20, 2013

Polson Limited - Rare Share - Hidden Gem ???

http://www.rareindianshares.info/2016/05/polson-rights-issue-closes-on-25052016.html

Polson Limied

Company Incorporated in 1939 - Public -1948

Listed at BSE ( Rs. 50 Paid ) - Very Rarely Traded . ( Trading in small quantities presently )

Polson Butter was very popular brand before Amul came into being and the Dairy Sector was reserved for the Co-operative Sector.

For the Polson Brand :-

http://en.wikipedia.org/wiki/Polson_(brand)

Company Website

http://www.polsonltd.com/aboutpolson.htm

Presently , Polson Limited is an asset laden and highly profitable company

Financial Highlights :

Share Capital : Rs. 60 Lakh

Face Value Per Share : Rs. 50

EPS : Around Rs. 368 ( 2011-12 ) Per Share ( Rs. 50 Paid Up )

For First 9 Months ( 01-04-12 to 31-12-12  Rs, 385

Book Value ( 31-03-12 ) Rs. 2452 Per Share (  Rs. 50 Paid Up )

http://www.moneycontrol.com/financials/polson/results/nine-months/P08#P08

Balance Sheet ( 2011-12 )

http://www.moneycontrol.com/financials/polson/balance-sheet/P08#P08

Profit / Loss ( 2011-12 )

http://www.moneycontrol.com/financials/polson/profit-loss/P08#P08

Annual Report ( 2011-12 )

http://www.moneycontrol.com/annual-report/polson/directors-report/P08#P08

There is a good chance that the Company may revive its very popular brand of Polson Butter

The Promoters holding is nearly 85 % 

http://www.moneycontrol.com/company-facts/polson/shareholding-pattern/P08#P08

. So, there can be delisting at a very attractive Exit Rate

For History and Terrific Brand Popularity of POLSON , Please study the following facts from a Court order ( 1994 )

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Facts leading to the filing of these two applications, in brief, are that in the year 1888, one Seth Pestunji Edulji Polson had started business of selling coffee in Bombay and in 1900, he started using the trade mark 'Polson' which was part of his name for selling coffee. Subsequently, he expanded his business and in about 1915 he had started marketing and selling butter, cheese, flour, etc. besides coffee under the said trade mark 'Polson'. It is the case of the plaintiff that the brand 'Polson' became immensely popular due to its high quality goods. 'Polson' rather became synonymous with quality butter being marketed under the said name in the minds of the people. In about 1930, he had developed a modern dairy at Anand (Gujarat) by the name of Poison Model Dairy which inter-alia produced butter under mechanised process. In the year 1938, Polson Private Limited was incorporated to further expand the business of said Polson.

(3) So, it is averred in the plaint that for over a period of time, the said company became a pioneer in the establishment and development of dairy sector and played a significant role in the development of "agmark Scheme" by the Central Government. The plaintiff expanded its activities to the eastern part of India in 1950 when it established a pilot plant in Khagaul in Bihar. Another dairy was established at Digha Ghat near Patna. in the year 1957. It is also averred that the plaintiff also started dealing in tea in 1963. So, it is averred that plaintiff's commercial activities spanned from coffee and tea to flour, table creamery, butter, etc. which were all sold under the trade mark 'Polson' which continues to be House-Mark and Corporate Name of the plaintiff company. Reliance has been placed by the plaintiff with regard to all these facts on plaintiff's brochure that was published on its 75th Anniversary (1888-1963) as well as in the In- House Journals "Poison Trading" published in various years. The plaintiff had given the sale figures which ran into crores every year for the years 1966 to 1978.

(4) It is averred that due to certain policy decision taken by the Central Government, the dairy sector witnessed sharp changes as under the Government policy, the dairy business was reserved for the Co-operative Sectors and certain restrictions were gradually imposed on the free operations of the private sector dairy corporations. It is alleged that in 1965, the Collector of Kaira District in Gujarat restrained the plaintiff company from taking out butter produced in Gujarat by the plaintiff outside the said district. The major plant of the plaintiff was situated in that district. Later on, after some negotiations, the plaintiff was permitted to remove only 1200 tones of butter from that district against an installed capacity of 2184 tones. Later on, the said quantity which was allowed to be taken out from the district was scaled down to only 600 tones a year. So, it is alleged that under such circumstances, the plaintiff's dairy operations in Eastern India had to be suspended and as the plaintiff's dairy business became totally uneconomical due to such restrictions being imposed under the Government policy, the plaintiff had to suspend its dairy operations since 1978 onwards. But the plaintiff continued to market its other products under his trade/corporate name Polson Limited which is evident from the copies of the balance-sheet of the years 1989-90 and 1990-91. Reference has also been made to these facts in the Polson Today in- house journal published in October to December 1972.

(5) It is also claimed by the plaintiff that in the year 1972, the plaintiff company, in order to diversify its activities, had acquired Amba Tannin & Pharmaceutical which had a running business of manufacturing Chemicals which became a division of Poison Limited in which a turnover of Rs-2.5 crores A year has been in existence.

(6) Now due to liberalisation policy of the Ministry of Agriculture, in August 1993, the plaintiff finalised its plans to restart its dairy operations including manufacture and sale of butter, cheese, etc. and to market the same again under the existing trademark and corporate name 'Polson' and plaintiff is stated to have taken various steps like acquiring plant and machinery in Kolhapur in this regard. It is also claimed by the plaintiff that plaintiff had registered its trademark 'Polson' for dairy products which has been renewed from time to time as plaintiff had never any intention of abandoning this trademark. The plaintiff has referred to eight trademarks which it had registered in between the period 1st July 1946 to 1st October 1952 which stand renewed up to date and it is asserted that all the said registrations are under the trademark 'Polson' for variety of products of the plaintiff company and the same are valid and subsisting on the register of the trademarks.

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Polson Limited seems to be a Hidden Gem and  ideal of Collector Investors

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May 12, 2016

Polson Rights Issue Closes on 25/05/2016

Opens 11/05/16

Closes 25/05/16

Ratio 31 shares for every 39 shares

@ Rs.5600 ( Rs.50 paid up share )

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Important Excerpts from Rights Offer ( 2016 ) 

1. SEBI has vide its order dated June 04, 2013, frozen some of the voting rights and corporate benefits of our Promoter GroupSEBI had vide its circular dated June 04, 2010, amended the Securities Contract (Regulation) Rules, 1957 (SCRR), whereby it amended Rule 19(2)(b) and introduced Rule 19A. In terms of the requirements set forth in the newly introduced Rule 19A, every listed company was required to maintain shareholding of at least 25%. The Rule further stated that listed company which had public shareholding below 25% was required to increase its public shareholding to atleast 25% within a period of 3 years. Further, SEBI vide its order no. WTM/PS/08/CFD/JUNE/2013 dated June 04, 2013, had passed certain directions against the promoters/ promoters group and directors of the non-compliant companies, whose names are mentioned in the said order. Accordingly, in terms of the said order, SEBI has frozen some of the voting rights and corporate benefits of the Promoter Group of the Company, prohibited the promoters/promoters group and directors of the Company from buying, selling or otherwise dealing in securities of the Company, either directly or indirectly, restrained the shareholders forming part of promoter/promoter group of the Company from holding any new position as a director in any listed company and restrained the Directors of the Company from holding any new position as a Director in any listed Company. However, SEBI may in future take any other action against the Company, its Promoters and/or its Directors including but not limited to levying monetary penalty under adjudication proceedings, initiating criminal proceedings by way of prosecution proceedings and any other action/direction as it may deem appropriate. 


2. The trading of equity shares of our company was suspended from BSE Limited for approximately a decade. Our Company’s shares are listed on BSE Limited. The scrip of company was suspended from trading on the BSE w.e.f. April 2002 for giving effect to reduction of share capital of the Company. However, on account of negligence on part of the Company the suspension got revoked only on January 04, 2012. This caused immense hardship to the shareholders who did not have liquidity for their investment in Polson for almost a decade. We cannot assure you that such an event may not occur again.

4. We do not have access to records and data pertaining to certain historical legal and secretarial information, including with respect to issuance of shares and amendments in our MoA. We have been unable to locate many of our important corporate records. Our Company was incorporated on December 21, 1938 and the management of our Company was transferred to the current Promoters of the Company in the year 1970. For the years 1938 to 2013 many important records and documents, including forms filed with the Registrar of Companies, Minutes books, Statutory Registers, Documents relating to the IPO of the Company, Takeover of the Company, Share Transfers, documents evidencing the amendments to our MoA, issue of shares, changes in capital structure etc. are not available. Whilst we believe that material information required for Investors to make their investment decision in this Issue has been disclosed to the extent possible in this Draft Letter of Offer, we are unable to make certain disclosures required under the SEBI (ICDR) Regulations in this Draft Letter of Offer.



  
5. We do not own the trademark and unauthorised parties may infringe upon or misappropriate our intellectual property. This could have a material adverse effect on our business which in turn may adversely affect our results of operations The trademark is not yet registered in name of our Company. We had made an application for registration of our trademark under classes 01 to 45 to the Registrar of Trade Marks, Mumbai by an application dated January 17, 2011. The application for our trademark has been objected by the Registrar of Trademarks, Mumbai and the examination report reflects that the Trade Mark application is open to objection on relative grounds of refusal under Section 11 of the Act because the same/similar trade mark(s) is/are already on record of the register for the same or similar goods/services. The same has been replied to by the Company vide its replies dated September 26, 2012 and December 24, 2012. However, the same is pending further revert from the Registry. There is no assurance that the application for the registration of our trademark will be approved by the Trade Marks Registry, Mumbai. If we are unable to obtain registration of our trademark we may not be able to successfully enforce or protect our intellectual property rights and obtain statutory protections available under the Trade Mark Act, 1999, as otherwise available for registered marks. This could have a material adverse effect on our business, which in turn may adversely affect our results of operations. 6. The Company does not own its corporate office from which it operates. The Company does not own the premises on which its corporate office is located. The Company's Corporate Office is located on a premise which is owned by one of the Promoter Group Companies and is used by the Company on rental basis. Further, The Memorandum of Understanding for its Registered Office is not registered as per the requirements of Section 17 of the Registration Act, 1908. For more information see "Business Overview " on page 49 of this Draft Letter of Offer.

Source :-

Letter of Offer ( Draft ) Rights Issue 2016 

http://download.dionglobal.in/admin/Reports/DRHP011020131.PDF 

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

( NB : All information given in good faith. Please recheck all facts before taking any investment decision.

. No responsibility taken by this author / blog . )