The Curious Case Of #VardhmanAcrylics ( VAL ) & #VardhmanTextiles ( VTL) Merger .
The merger ratio at 1 share of #VTL for every 24.1 shares of #VAL gives a valuation of 38 rs or 300 cr market cap approximately.
#VAL holds 285 cr of investments and some more cash added this quarter. The gross block of #VAL used to be 200 cr plus pre 2017. The plant does a topline of 400 cr plus and an average operating profit of 40cr over the years. 40-50% of the sales of #VAL are to #VTL.
#VAL also has acres of land in Bharuch. So at 300 cr market cap the merger implies #VTL gets the plant and the land for free. How is this fair deal for #VAL minority shareholders? Plant and Land worth = 100-300 cr ? Disclosure -No Holdings. Was a shareholder a few years back.
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10 Most Interesting Videos on the CFA Society India Channel.
Take your time and go through them. Would recommend attending the physical events too.
@CFASocietyIndia
1) Brave New World | Ritesh Jain, Co-founder, Pinetree Macro.
He spoke about the liquidity way of investing, Tracking the global liquidity flow across past decades, how liquidity impacts economies, market returns based on liquidity.
2) Dimensions of Mistakes in Investing |
Utpal Sheth, CEO & Senior Partner, RARE Enterprises. He spoke about importance of overcoming natural instincts in investing, focusing on the long-term strategic picture, and sizing bets to match one's conviction.