potential turnaround stock
Reasons to consider investment
1. Promoter group is going to subscribe to warrants that will take its shareholding up from 27% to 41%
2. Company is set to receive 5000 crores INR from a decade long legal battle with Longshen/Senda over its minority shareholding in Dystar.
3. Company is going to enter into an unrelated sector of copper rod mfg and fertilizer mfg.
4. Promoters have executed a loan facility to most likely start the construction of the copper rod and fertilizer plant after execution of an MOU 2 years back with the gujarat state govt. However, the EC for the project maybe still hanging in the balance.
5. Dystar enbloc sale process has started by Deloitte on courts directive and is expected to close in 6 to 9 months.. the aggrieved party has approached the supreme court of Singapore for challenging priority payment to Kiri out of the sale proceeds of Dystar..therefore there will not be rollback of liquidation of Dystar..it is a question of how the cake is to be divided between the owners if the sale price is below a certain value.
Fair warning:
Promoter integrity is something that we have to take individual call on.
If Dystar sale is delayed the payout to Kiri will be delayed.
Other legal wrangles that can comeup.
Clarity on the EC to the greenfield project of copper rod and fertilizer.
Even if all of the above happens this is a long term investment idea, i.e., 4 to 5 years
1. Promoter group is going to subscribe to warrants that will take its shareholding up from 27% to 41%
2. Company is set to receive 5000 crores INR from a decade long legal battle with Longshen/Senda over its minority shareholding in Dystar.
3. Company is going to enter into an unrelated sector of copper rod mfg and fertilizer mfg.
4. Promoters have executed a loan facility to most likely start the construction of the copper rod and fertilizer plant after execution of an MOU 2 years back with the gujarat state govt. However, the EC for the project maybe still hanging in the balance.
5. Dystar enbloc sale process has started by Deloitte on courts directive and is expected to close in 6 to 9 months.. the aggrieved party has approached the supreme court of Singapore for challenging priority payment to Kiri out of the sale proceeds of Dystar..therefore there will not be rollback of liquidation of Dystar..it is a question of how the cake is to be divided between the owners if the sale price is below a certain value.
Fair warning:
Promoter integrity is something that we have to take individual call on.
If Dystar sale is delayed the payout to Kiri will be delayed.
Other legal wrangles that can comeup.
Clarity on the EC to the greenfield project of copper rod and fertilizer.
Even if all of the above happens this is a long term investment idea, i.e., 4 to 5 years
Pernyataan Penyangkalan
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