Hi @paragbharambe
The above calculation you have done is very very conservative
In AGM they have valued it around 7500-9000/10000cr business and it is a demerger so they will try to list it at higher band
and on profitability there is no update from investor relations team they alway say we are associate now but if you go by presentations distribution and investment management fee is growing and it is acquired by a PE firm they will also exit after 4-5 years
Valuation (my rough conservative estimates)
EFSL face value of rs1
ESL face value of rs 10
ESL share for EFSL shareholders -7500cr * 30% = 2250/2500crs ÷1.05cr shares = 2100-2200 rs per share
My approx swap ratio analysis
EFSL shares - 94.30crs
ESL shares for EFSL shareholders - 1.05 crs
94.30crs÷1.05crs = for 88-90 EFSL share you will get 1 share of ESL ( this is because of face value) if you bring to FV of both to 10rs so it will be you will get 1 share of ESL for 8-9 shares of EFSL
pls I can be wrong don’t take it as investment advise
Any views and insights are welcome
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