c635c1bf-fe34-40f0-baf4-0cf68e392fd9.pdf (bseindia.com)
MSIL Maruti Suzuki India Limited
SMC Suzuki Motor Corporation (parent company of MSIL, head quartered in Japan)
SMG Suzuki Motor Gujarat Private Limited (100% subsidiary of SMC in Gujarat, India)

MSIL would be acquiring SMC equity in SMG.

Acquire 100% shares of SMG held by SMC (at net book value in terms of the provisions of the CMA).
Pay for the SMG shares held by SMC by making preferential issue of MSIL equity shares to SMC.

It’s part of full restructuring. The company believes that this will increase the EPS and Dividend Payout.

Any views on the Open Offer. Personally, I am a long term investor and not interested in tendering my shares.

Views invited on below:

1. Nirma has mentioned that they don’t intend to delist, how they will manage stake reduction which will increase from 75% promoter holding post this open offer
2. In case Nirma gets more than 90 per cent shares and plans for delisting, what will be my options( Post closure of Open offer in Nov 2023)

Thanks

any why not rights ? Their last rights which came at 140 was very lucrative. I think by the time allocations came stock was already close to 180-190 and retail got super allocation on top of their eligibility. My initial allocation to the stock was at around 50 with a view to participate in rights which had come at 40. So i would pray for yet another well priced rights. Mgmt. has been looking to raise their holding, a discounted price compared to market price helps them too to raise their holding.

Summarizing my thoughts

Thesis

• Good expansion, recent news on Nagao Beach is a plus addition.
• SageOne investing is a plus.

Anti-thesis:

• Promotors selling stake.
• Current valuation of 50 for a microcap company is a negative. If results are not upto mark, a sharp derating is quite possible.

PS: Holding tracking amount. 1.28% of my PF