A few years back, I B P Co Ltd was disinvested by GOI. As the Government were keen to retain Balmer Lawrie & Co Ltd which was a subsidiary of before mentioned I B P Co Ltd , a demerger of that investment from I B P co was found to be a way out. Consequently, the President of India along with other minority shareholders of I B P Co Ltd were allotted one share of Balmer Lawrie Investment for every share in I B P Co Ltd .
It is another thing that GOI's Maha Ratna agriesively took over the I B P Co Ltd at a huge premium to market rate & eventually merged with itself.
For various RBI, NBFC requirements, Balmer Lawrie Investment had to incurred various expenses/compliance even though prima facia it is just holding Balmer Lawrie & Co Ltd on behalf of the GOI . It is practically holding one share of Balmer Lawrie for around 220 shares in Balmer Lawrie Investment .
As the GOI is considering the way of "Buy back" route for disinvestment target, it may consider to merge the "Investment" with Balmer Lawrie & Co Ltd so that same may be viable.
It is another thing that GOI's Maha Ratna agriesively took over the I B P Co Ltd at a huge premium to market rate & eventually merged with itself.
For various RBI, NBFC requirements, Balmer Lawrie Investment had to incurred various expenses/compliance even though prima facia it is just holding Balmer Lawrie & Co Ltd on behalf of the GOI . It is practically holding one share of Balmer Lawrie for around 220 shares in Balmer Lawrie Investment .
As the GOI is considering the way of "Buy back" route for disinvestment target, it may consider to merge the "Investment" with Balmer Lawrie & Co Ltd so that same may be viable.
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