A review of Uniphos Enterprises Ltd balance sheet was quite revealing & is being summarising as follows:-
It has capital of Rs. 5.09 crores comprising of 2,54,74,670 shares of Rs. 2/- each; it is in the hand of just 22 shareholders who own over 75% of the capital; the promoters stake is high at 45.61% Its principal business are owning strategic land and investments owning 5.68% of the capital of United Phosphorus, i.e., 2,49,85,130 shares of Rs. 2/- each. Effectively, any one owning 102 shares in U Enterprises is owning 100 shares of UNITED PHOSPHORUS.
Anyone considering acquiring Enterprises shares must have a long-term views for eventual rewards. Besides, owning UNITED PHOSPHORUS you are sitting on a land with an appreciation of Rs. 145 crores against debts amounting to Rs. 72.95 which is to be repaid against proceeds of a right issue for Rs. 75 crores inclusive of premium. Guessing the terms for right issue is difficult ; it may be even 3 right shares @ Rs.20 against every 2 shares.
Shroffs had over the past few years first vested lands in favour of Enterprises & then cashed it & accumulated a corpus of over Rs. 194 crores against a migre investment of barely 5 crores.
I think right issue shall be so prised that most of the minority shareholders will NOT be putting in any funds & Shroffs will enhanced their grip on the Company.
Negative points:
Very reluctant to pass on benefits to shareholders as evident by surplus in Profit & loss a/c exceeding Rs. 18 crores but no DIVIDENDS for shareholders.
It has capital of Rs. 5.09 crores comprising of 2,54,74,670 shares of Rs. 2/- each; it is in the hand of just 22 shareholders who own over 75% of the capital; the promoters stake is high at 45.61% Its principal business are owning strategic land and investments owning 5.68% of the capital of United Phosphorus, i.e., 2,49,85,130 shares of Rs. 2/- each. Effectively, any one owning 102 shares in U Enterprises is owning 100 shares of UNITED PHOSPHORUS.
Anyone considering acquiring Enterprises shares must have a long-term views for eventual rewards. Besides, owning UNITED PHOSPHORUS you are sitting on a land with an appreciation of Rs. 145 crores against debts amounting to Rs. 72.95 which is to be repaid against proceeds of a right issue for Rs. 75 crores inclusive of premium. Guessing the terms for right issue is difficult ; it may be even 3 right shares @ Rs.20 against every 2 shares.
Shroffs had over the past few years first vested lands in favour of Enterprises & then cashed it & accumulated a corpus of over Rs. 194 crores against a migre investment of barely 5 crores.
I think right issue shall be so prised that most of the minority shareholders will NOT be putting in any funds & Shroffs will enhanced their grip on the Company.
Negative points:
Very reluctant to pass on benefits to shareholders as evident by surplus in Profit & loss a/c exceeding Rs. 18 crores but no DIVIDENDS for shareholders.
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