Today i.e. on Friday 27th July 2018 Market i.e BSE Sensex has closed with a very Bullish note with todays weekly close at 37336....There is very high probability of a big correction on indices level to set in before the indices cross 38000...likely somewhere at 37952...just few points short of 38000 and from todays close 38000 is just 664 points from here...Though fundamentally there is no new negative news known yet...and results declared till yet for June 2018 qtr have been very good till date...
Friday, July 27, 2018
Monday, May 14, 2018
Complaint against Vedanta and Lenders to PMO
Vedanta and Lenders have marginalized the public shareholders to 2.4% in case of Electrosteel which is undergoing IBC process ....which is against the existing SEBI laws that clearly states that public shareholding cannot be marginalized to less than 25% even by new bidder in a company even if it is under IBC process thus against the same a complaint was put up by myself to Prime Minister's office and very happy to see that the PMO office has taken prompt action and forwarded the same to SEBI for action....Modi ji is power of common people...
Monday, April 16, 2018
BHUSHAN STEEL - (If 100% of Promoter stake is taken by Banks)
New ratio after 31st Mar Shareholding fig. of Bhushan steel...as per my calculations...
Total Shares 81.50 cr
(If 100% of Promoter equity is taken by the Banks i.e. both pledged as well as un-pledged as declared for 31st Mar.2018)
Lenders 12.20% i.e 9.94 cr shrs
Public. 15.59% i.e. 12.71 cr shrs
Tata Steel. 72.21% i.e. 58.85 cr shrs
Total Shares 81.50 cr
(If 100% of Promoter equity is taken by the Banks i.e. both pledged as well as un-pledged as declared for 31st Mar.2018)
Lenders 12.20% i.e 9.94 cr shrs
Public. 15.59% i.e. 12.71 cr shrs
Tata Steel. 72.21% i.e. 58.85 cr shrs
Sunday, April 15, 2018
BHUSHAN STEEL
New ratio after 31st Mar Shareholding fig. of Bhushan steel...as per my calculations...
Total Shares 68.11 cr (If only the pledged shares of Promoters are taken by Banks)
Lenders 12.2% i.e 8.31 cr shrs
Public. 18.5% i.e. 12.70 cr shrs
Promoters 2.4% i.e. 1.63 cr shrs
Tata Steel. 66.8% i.e. 45.47 cr shrs
Total Shares 68.11 cr (If only the pledged shares of Promoters are taken by Banks)
Lenders 12.2% i.e 8.31 cr shrs
Public. 18.5% i.e. 12.70 cr shrs
Promoters 2.4% i.e. 1.63 cr shrs
Tata Steel. 66.8% i.e. 45.47 cr shrs
Monday, April 9, 2018
BHUSHAN STEEL
Market is valuing Bhushan Steel correctly as the same is trading in a range of 40 to 44
minimum target as given by me is Rs.350 which is also justified from current trading price i.e. even if we consider the lower end of the band i.e. Rs.40 the market is assuming mere 2% stake to public and I am considering 17.5% thus even as per my calculation the price of 1% stake is Rs.20 that is the reason the price is trading at 40 to 44. Let the final news of public shareholding become public....
minimum target as given by me is Rs.350 which is also justified from current trading price i.e. even if we consider the lower end of the band i.e. Rs.40 the market is assuming mere 2% stake to public and I am considering 17.5% thus even as per my calculation the price of 1% stake is Rs.20 that is the reason the price is trading at 40 to 44. Let the final news of public shareholding become public....
Monday, March 19, 2018
Companies going under IBC in NCLT
SEBI has rules on how much shareholding of a listed company can be marginalized by the new bidder whosoever takes operational control through IBC / NCLT process. SEBI calls the IBC / NCLT process as "Scheme of Arrangement" following circulars clarify all doubts Dt -30th Nov.2015, Dt-Mar.10th 2017, Dt-Mar. 23rd 2017, Dt-Sep.21st 2017, Dt-Jan.3rd 2018. Max. is 90% if certain conditions are met else the max. is 75%...
Friday, March 16, 2018
Why learn ….Dhyan or Meditation……??
Why learn ….Dhyan or
Meditation……??
GOD, SOUL,
BODY AND MIND…..?????
God is the
creator of all energy, time and space.
SOUL is the
energy that experiences time and space in different forms
of life till it does not gain wisdom which helps it to attain salvation.
The creation
of the soul is BODY which is made up of five elements and has an operator name MIND
which also has five components..
1. Memory...(Conscious and Sub-Conscious)
2. Processor...(Logic and Reasoning)
3. Operating Language..(Non-physical or the Sixth Sense i.e. "Thought")
4. Input (Five Physical Senses)
5. Output (Feelings and Emotions)
Combination and Characteristics of above five define quality of mind like sharp mind, dull mind, bright mind...etc. (Astrologically can be linked to planets also....) The output of the mind is feelings and emotions...which are felt in heart...
Body continues to exist till the SOUL resides in it and the SOUL is identified as breath....thus the soul is identified by heart and mind by brain....The physical brain is like the Mother Board in computer...
1. Memory...(Conscious and Sub-Conscious)
2. Processor...(Logic and Reasoning)
3. Operating Language..(Non-physical or the Sixth Sense i.e. "Thought")
4. Input (Five Physical Senses)
5. Output (Feelings and Emotions)
Combination and Characteristics of above five define quality of mind like sharp mind, dull mind, bright mind...etc. (Astrologically can be linked to planets also....) The output of the mind is feelings and emotions...which are felt in heart...
Every issue related to mind can be categorised into three….
State of Mind
Body continues to exist till the SOUL resides in it and the SOUL is identified as breath....thus the soul is identified by heart and mind by brain....The physical brain is like the Mother Board in computer...
The soul
experiences the time and space through FEELINGS and EMOTIONS generated by mind and attains
salvation through the wisdom gained through mind.
The duty of
the Mind is to operate and maintain the body by fulfilling needs of the body and
simultaneously ensure that the wisdom is gained and soul feels liberated to
attain salvation.
When MIND starts obeying and
becomes slave to the five physical senses then the same forces mind to pay
attention only to the needs of the body and many unending desires of the senses themselves vis a vis to
the feelings of soul…. the suffering starts…….and the Soul remains direction
less and always feeling dissatisfied…
Dhyan or Meditation is the
process through which mind is made to focus on the feelings of soul instead
of issues, needs and desires related to body or six senses of mind. This is
done by getting the mind to pay attention on the breath which is the soul and
removing its attention from the body and six senses of mind.
Ultimately during the process of meditation the attention of mind is shifted even from soul i.e. breath to the creator of the soul i.e.
GOD which is felt inside the body in the heart in the form of energy and is seen inside the mind by the mind in the form of light and when mind focuses on it the wisdom required to liberate from the body for
attainment of salvation is gained by the SOUL ....
Salvation is merging back into
the Creator …..Ending the cycle of birth and re-birth.
Written By….. Gaurav Dua
Note: All views expressed are my personal..Written By….. Gaurav Dua
View on Reliance - 16th March 2018
Reliance CMP 897 shall lead the fall once it closes below Rs.850 the next downside level will Rs.750.
Thursday, March 8, 2018
Technical View on BSE Sensex - 8th March 2018
Warning: All views are my personal views and I have the right to be wrong. No conclusions to be drawn from my views.....
Sensex......The current corrective phase should take the sensex close to 31000.....
Sensex......The current corrective phase should take the sensex close to 31000.....
NCLT Companies - Bhushan Steel in particular dt 8th Mar.2018
Bhushan Steel is under NCLT and now it has been formally announced that Tata Steel is the highest bidder. To value any NCLT company two approaches can be adopted
1. Value of Assets per share less Liability
2. Earning Per Share
From Sebi rules two things needs to be understood
1. What is the max. equity percentage the new bidder can take in a listed company
2. What happens to the present equity
The Answer to above are
Q1. What is the max. equity percentage the new bidder can take in a listed company
Ans.1. Max.90% can be taken if certain specific conditions are met ELSE 75%
Conditions under which 90% can be taken are
A. Valuation of the company under NCLT as per valuation report on relevant date i.e. date on which COC approves the resolution is more then 1600 cr
B. Value of public share holding is not less than 400 cr
only if above two conditions are met then the new bidder can take 90% equity with a clause that the same will be brought down to 75% within a period of one year
In all other cases the max. that can be taken is 75% in a listed company.
Q2. What happens to the present equity
Ans 2. The present equity becomes either 10% of new or 25% of new depending the percentage taken by new bidder i.e max. 90% or 75%
In case of Bhushan steel following is the present scenario
Total number of equity shares are 22.65 Cr
Out of which the pledged equity of promoters with Lenders is 9.30 cr,
Un-pledged promoter shares which are with promoters but they have sold the same and have made them look public is 3.80 cr thus
Total with public is 13.35 cr and lenders 9.30 cr Total 22.65 Cr
Tata steel has offered 12.2% equity stake to Lenders that means total shares are 76.22 cr as against earlier 22.65 cr and new equity ratio is going to be
Tata Steel will have 53.57 Cr shares i.e. 70.29%
Lenders will have 9.30 Cr.shares i.e. 12.20%
Public will have 13.35 Cr. shares i.e. 17.51%
Now Tata Steel is offering Rs.36390 Cr. for 70.29% stake (53.57 cr shares) i.e. Rs.679 per share but funding of this 679 is expected to be done as 30% equity and 70% fresh debt in Bhushan steel thus Tata Steel will be infusing Rs.203 per share as equity i.e. Rs.10,875 cr. which they have already raised through recent rights issue of 12000 cr.
Now If Rs.36390 Cr. is for 70.29% then what is the 100% ...it will be roughly 52340 cr which is the net block value of bhushan steel in its last balance sheet thus TATA has valued Bhushan Steel assets at 100% of present net asset value.
Total shares issued are 76.22 cr thus Asset Value per share is Rs.686
Minus the debt per share which 70% of 36390 cr i.e. 25473 cr thus debt per share will be Rs.334
the net value per share will be 686 - 334 = Rs.351
Tata Steel is getting share value of Rs.351 by paying Rs.203
Rs.351 is value of Bhushan steel from Asset Valuation point
Now From earnings point what will be the EPS..??
if plant capacity is 5.6 million tons that can be expanded to 8 million tons and
Tata Steel is having captive iron ore mines thus have better EBIDTA margins which is considered highest for any steel company.........
Total no. of shares being 76.22 cr .........
thus the price depending upon EPS AND what PE the company gets the price can BE..................
Warning: All views expressed are my personal views and anyone reading the same should first verify the facts before making any conclusion.
1. Value of Assets per share less Liability
2. Earning Per Share
From Sebi rules two things needs to be understood
1. What is the max. equity percentage the new bidder can take in a listed company
2. What happens to the present equity
The Answer to above are
Q1. What is the max. equity percentage the new bidder can take in a listed company
Ans.1. Max.90% can be taken if certain specific conditions are met ELSE 75%
Conditions under which 90% can be taken are
A. Valuation of the company under NCLT as per valuation report on relevant date i.e. date on which COC approves the resolution is more then 1600 cr
B. Value of public share holding is not less than 400 cr
only if above two conditions are met then the new bidder can take 90% equity with a clause that the same will be brought down to 75% within a period of one year
In all other cases the max. that can be taken is 75% in a listed company.
Q2. What happens to the present equity
Ans 2. The present equity becomes either 10% of new or 25% of new depending the percentage taken by new bidder i.e max. 90% or 75%
In case of Bhushan steel following is the present scenario
Total number of equity shares are 22.65 Cr
Out of which the pledged equity of promoters with Lenders is 9.30 cr,
Un-pledged promoter shares which are with promoters but they have sold the same and have made them look public is 3.80 cr thus
Total with public is 13.35 cr and lenders 9.30 cr Total 22.65 Cr
Tata steel has offered 12.2% equity stake to Lenders that means total shares are 76.22 cr as against earlier 22.65 cr and new equity ratio is going to be
Tata Steel will have 53.57 Cr shares i.e. 70.29%
Lenders will have 9.30 Cr.shares i.e. 12.20%
Public will have 13.35 Cr. shares i.e. 17.51%
Now Tata Steel is offering Rs.36390 Cr. for 70.29% stake (53.57 cr shares) i.e. Rs.679 per share but funding of this 679 is expected to be done as 30% equity and 70% fresh debt in Bhushan steel thus Tata Steel will be infusing Rs.203 per share as equity i.e. Rs.10,875 cr. which they have already raised through recent rights issue of 12000 cr.
Now If Rs.36390 Cr. is for 70.29% then what is the 100% ...it will be roughly 52340 cr which is the net block value of bhushan steel in its last balance sheet thus TATA has valued Bhushan Steel assets at 100% of present net asset value.
Total shares issued are 76.22 cr thus Asset Value per share is Rs.686
Minus the debt per share which 70% of 36390 cr i.e. 25473 cr thus debt per share will be Rs.334
the net value per share will be 686 - 334 = Rs.351
Tata Steel is getting share value of Rs.351 by paying Rs.203
Rs.351 is value of Bhushan steel from Asset Valuation point
Now From earnings point what will be the EPS..??
if plant capacity is 5.6 million tons that can be expanded to 8 million tons and
Tata Steel is having captive iron ore mines thus have better EBIDTA margins which is considered highest for any steel company.........
Total no. of shares being 76.22 cr .........
thus the price depending upon EPS AND what PE the company gets the price can BE..................
Warning: All views expressed are my personal views and anyone reading the same should first verify the facts before making any conclusion.
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