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Posted: 19/Sep/2006 at 12:52pm
Yes absolutely. A demerger will not add value per se- the manner will. Suppose tomorrow Infosys wants to demerge Progeon I do not think that investors would gain anything by it. Generally demergers can be used to create shareholders wealth but in case the promoters decide not to issue shares of the demerged company to the existing shareholders then such wealth creation will not happen.
The value that a demerged company can create will be dependent upon how good or bad the management is!
'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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Posted: 25/Sep/2006 at 12:14pm
Sun Pharma is a classic case for a spin off and I would try and update the same but going by the way the promoters are spinning the R&D division off it should add significant value.
Edited by basant - 25/Sep/2006 at 12:15pm
'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
You mention Kotak Bank is planning to demerge its trading business. Do you mean they are planning to demerge Kotak Securities into a seperate listed company?
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Posted: 27/Sep/2006 at 12:02pm
That is what I thought.
'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
Joined: 05/Sep/2006
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Posted: 27/Sep/2006 at 4:04pm
Hi Basantji,
Recently read a report that Kotak mahindra bank is going to demerge its securities business from its parent ,Will it unlock value and benefit kotak mahindra bank share holders?
I would like your valuable input pls.
Nitin
Note:I had put this post erroneously in another section,hence repeating it again.Is it possible to move a post from one section to another,once its posted?
Joined: 01/Jan/2006
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Posted: 29/Sep/2006 at 11:26pm
The fine print as to whether the spin off will subs will be listed and existing shareholders given shares is yet to be out but kotak remains a GREAT bet even as it is.
'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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