Just a thought.

If Nirma takes debt to fund this acquisition, can they immediately de-list the share after 1 year?
Means how such financial transactions work?

The fall in promoter holding is a result of extra shares issued via preferential issue. ( warrants converted to equity shares)

Read few concalls post COVID, my view on business and management –

1. Management’s guidance is not to be relied upon. In mid FY22, they were saying 1.5-2x market growth which then came down to 1.5x by end of the year and then now it is 1.2-1.5x given variations in consumer sentiments. While I know that consumer durables sector has been under pressure overall but I would like to see them remain consistent and conservative throughout.
2. They guided for 20% growth in consumer appliances business with 7-8% EBIT margins in Q4FY22 but it seems nowhere close as of now. They are struggling to do topline growth atm. Anyway this segment is pretty crowded so I doubt this can drive much of the value for the business.
3. I doubt that overall growth will be sustained at 18-20% CAGR over 3-5 year period without consumer appliances taking off. As of now my expectations are capped at 15% with something less than that won’t be surprising as well. Most of this would be driven by bath and pipes business.
4. Margins could go up to 11-12% by FY25 given the acquisition and softening of RM costs.
5. Deleveraging could start in next 12 months reducing interest costs and giving boost to PAT further.

Overall, given my apprehension on management’s focus and capital allocation I would wait for some margin of safety to make any buy decision. My calculations suggest 5000-6000 Cr MCap is likely in 2 years.

Plus, my learnings of past few years say that always bet on market leader in consumer categories. So I am slightly biased as well.

Will love to accumulate this stock if gets hammered, I think the tax demand is ridiculous, this is probably the worst that could possibly happen to the company and if they survive this they will probably have the experience of a management who has dealt with the worst regulations, a fully speculative investment if it gets hammered will probably take the gamble.