A group of minority shareholders of Trinetra Cement, the Rajasthan-based and listed subsidiary of India Cements, have objected to the valuation accorded to the former in the proposed merger with its parent.
They have written to the markets regulator, Securities and Exchange Board of India (Sebi), complaining about alleged discrepancies in valuation parameters and methodology.
According to these shareholders, who together own about 2.5 per cent in the company, even going by the methodology followed by the company, the value per tonne of capacity should be around $130, which is $20 higher than what is offered under the scheme.
According to these shareholders, who together own about 2.5 per cent in the company, even going by the methodology followed by the company, the value per tonne of capacity should be around $130, which is $20 higher than what is offered under the scheme.
Delhi-based Bharat Gupta, one of the complainants, said there was no justification for the value offered to the shareholders, considering the amount of assets with the company. "While calculating the valuation, based on average price paid in recent deals, they ignored an investment by Barings PE in Lafarge India that happened at $230 a tonne. That brought down the average price from $130 to $110 a tonne."
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