This entire sale and purchase looks very very quick and strange to me…generally these things take long time after first news in public but this time it was lightening fast!

Secondly do not understand why only PE was involved and no intereset either came or not taken/entertained from other FMCG firms

The sale valuation looks like throw away proce considering the Sales as well as some brands of Agro tech food

Also not sure about the COnagra brands, its royalty etc. which Agro tech holds

Any idea what Rare enterprise is doing with its big stake?

Overall I am not concerned much about open offer price as its mandatory one and need not be successful…but the valuation of sale and hence the low open offer price is very strange to me.

Any idea on credentials of buyers…do they have any experience on running and turn around of any business in India or elsewhere?

These are some forensic checks that can detect fraudulent companies.

Had come up with this piece which is basics on portfolio weightage decision

This is something I follow not necessary its the best way.

1. Check for red flags in a company by running google searches and also checking the valuepickr thread for any potential red flags like any past legal cases on the company or any shortchanging of minorities.
2. Understand the business model – You need to understand how does the company generate the revenue (What are the revenue streams – Geographically, segmentally or also product wise etc). What are the costs which a business incurs to bring this revenue. I make a value chain to understand any business where on the left I have supply side and on the right is the demand side.
   Something like this
   
3. Industry – Understand how is the industry structure, size and players.
4. What is the X factor or moat in the business.
5. Understand the management and how are they (Check management in terms of integrity and competence)
6. What are the potential risks the biz can face and are you comfortable with those?
7. Once everything is done ask yourself if this is a business you would like to own if answer is yes you may go ahead and do modelling and valuations.