Nagreeka exports
Nagreeka exports is currently valued at Rs 50 crore. the market value of the quoted investments was Rs 172 crore in Mar 2006. With the investments getting demerged into a separate company, the value should get unlocked. Stock is up 15% today!
People aware of the core business pls share their opinion.
Nagreeka Exports demerges investment arm 12 Sep, 2007, 0134 hrs IST,Shailesh Menon & Apurv Gupta, TNN
MUMBAI: The Kolkata-based yarn and knitted fabrics manufacturer Nagreeka Exports has completed demerger of its investment arm Nagreeka Capital & Infrastructure (NCIL). The demerged entity will have a paid-up capital of Rs 6.31 crore, split into 1.26 crore shares of Rs 5 each.
The demerged company, with an investment portfolio of about Rs 52 crore, is likely to list on both the premier exchanges on Friday, according to senior company officials. Promoters would hold about 55% stake in the new company. “Nagreeka Exports’ investment portfolio (wherein, the funds have been invested in companies like Sterlite Industries and Sterlite Optical) has been demerged into a new company. As part of this, every shareholder of Nagreeka Exports will get a matching number of shares in the new company with a face value of Rs 5 (at a share swap ratio of 1:1).
Consequent to this, the face value of the shares of Nagreeka Exports will reduce from Rs 10 to Rs 5,” Nagreeka Exports managing director S Patwari said. NCIL as a fund has 90% of its investment in the Sterlite group. The fund holds close to about 43.3 lakh shares in Sterlite Industries and about 3.42 lakh in Sterlite Opticals. The company, in the longer run, would be like an infrastructure fund listed on the bourses. The new company’s investment portfolio, in today’s market value, would be around Rs 300 crore.
As part of restructuring, we have already transferred the corpus to the new company, Mr Patwari added.
NCIL, as a fund, would be investing in real estate and infrastructure projects, private equity funds, select stocks and REIT funds. According to company sources, the company is also scouting for opportunities in the power generation sector. “We will increase the fund size in due course. We have not worked out details as to how we would raise capital,” Mr Patwari said.
