Not 100% sure but mostly when QIP was done, the purpose for QIP didn’t had mention of buying land and thus they cannot use those funds for buying land. So they indicated that it would be funded through internal accruals and debt and not QIP funds. That’s the reason I wrote indirect usage of QIP funds for purchase of land. Again saying, I don’t feel its best decision of management to buy land, but considering the fact that captive production facility by Celebrity is very much advantageous to Indian Terrain and that this deal would help Celebrity the most to come out of crisis, its ok and may be necessary to do.

More crucial is how effectively they use remaining Rs. 60 crores of QIP funds.

Hello Advait –

Majesco India holds 69.7% in Majesco US; while Cover-All (now Cover-All shareholders have received Majesco shares) holds 16.5% and Mastek Ltd. owns remaining 13.8%.

So indianivesh has valued the overall Majesco India listed entity at 549 bucks without reducing the shares owned by former Cover-All shareholders (16.5%) and Mastek Ltd (13.8%). So it ignored the fact that Majesco India only owns 69.7% of the Majesco US entity.

So if you reduce the share – then the value of Majesco India (assuming india nivesh’s valuation assumptions) comes to 549 x 69.7% = 382 bucks roughly.

Additionally, Majesco USA is currently trading at 176 Mn USD or roughly 1,164.2 Cr INR. In comparison – India’s Majesco is trading at 967 Cr INR which only holds 69.7% of Majesco USA entity. Implying 19% premium to US entity (after accounting for 69.7% share) when Indian entity is a holding company and should trade at a discount to US subsidiary.

And so probably promoters are buying Majesco US and not Majesco India shares –
http://www.insider-monitor.com/trading/cik1626853.html

Thanks
No holding in any entity

Samvat 2072 to be better; expect tsunami of local money

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Q: Last Diwali to this Diwali FII net investment is practically zero and domestic money is Rs 50,000 crore, you see that trend being more pronounced next year or are you hopeful that foreign money will also start coming in over the next 12 months?

A: I think CLSA has predicted in a report and even Morgan Stanley and I agree with them this will turn to USD 20 billion.
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How much will MOFSL benefit from this psumani?

Really poor corporate governance – allowing for promoters to come in at face value, not even at book value is the equivalent of taking out all extra juice. if anything, it should be at least linked to performance milestones – a carte blanche dilution at one go is’nt a great sign. This could have also been done through recapitalization too. Rights issue done at par, the majority shareholder renouncing it completely ot favour a minority shareholder in an unlisted company at the expense of minority shareholders in the listed entity is definitely not value accretive in the short run for sure. Why did’nt they do a price discovery and allow for ajit isaac to bring in cash as a preferential allotment ?

the threshold of 26 % had to be crossed to provide for veto powers to ajit isaac – so that he has a say in the board. That’s the only reason why this could be happening.

Yes. I will be publishing the updates in my blog. Will update this thread also.

Regards,
Jana