Rasoi Ltd delisting

Rasoi Ltd has intimated to the exchanges that the Company has received a letter dated 16th November, 2018 from J. L. Morison (lndia) Limited, which together with Pallawi Resources Limited, Leaders Healthcare Limited, Mrs. Shashi Mody and Mrs. Sakshi Mody who are Promoters or part of the Promoter Group of the Company (collectively referred to as “Acquirers”), have expressed their intention to acquire the entire public shareholding of the Company i.e.,24225 equity shares of the Company representing 25.08% of the paid up equity share capital of the Company held by the public shareholders and consequently voluntarily delist the equity shares of the Company from the BSE  stock exchange  This has started the process of  Rasoi Ltd Delisting.

Updates:
Rasoi Ltd has informed that the Company has set  Rs. 25,4081 as  the floor price for the Delisting Offer,and also indicated Acquirers’willingness to accept Equity Shares tendered in the delisting offer at a price of Rs. 26,500/- per equity share (“lndicative Offer Price”)
See List of all Forthcoming and Recent Buybacks 
About Rasoi Ltd :
  • The Company was incorporated in 1905 as Doyapore Tea Company. The name of the Company was changed to Rasoi Vanaspati & Industries Limited in 1974. Subsequently, the name of the Company was changed to Rasoi Limited.
  • Rasoi Limited is engaged in diverse business activities. Presently the Company is manufacturing baby care products and packing materials at its Banganagar factory in West Bengal.
  • The Rasoi Group consists of many companies which include Public Limited listed companies and Private Limited companies. The Group has interests in Consumer non-durables, Auto Components, Real Estate and OTC Healthcare products.
  • The three listed companies in the Group are Rasoi Ltd, JL Morrison, Hindustan Composites.
  • The Company has an Associate Company namely “Hindustan Composites Limited.”
Rasoi Ltd : Summary of Financials,  Stock Price Trend
Market Cap:  220.18 Cr.
Current Price:  22,792
52 weeks High / Low  47500 / 22781
Book Value46,928
P/BV0.49
Stock P/E17.87
Face Value200
Rasoi delisting price chart

Assessment: Rasoi Ltd Delisting 
  • The shares are to be acquired from public shareholders of Rasoi Ltd.  at a price as determined by the reverse-book building process in accordance with the Delisting Regulations subject to acceptance by the Acquirers.
  • Rasoi Ltd. investments are more than its market cap at present.
  • The stated objective of making the Delisting offer is to obtain full ownership of equity shares of the company, which will provide the promoter group with operational flexibility to support the company’s business and future financing needs and benefit the shareholders as presently the stock is not very liquid. 
  • In general such delisting offers are beneficial to the shareholders and happen at a higher price.  Though I have participated in some Delistig offers in the past, this being my first coverage of Delisting offer I would desist from making any comment or suggestion on Rasoi Ltd Delisting and  rather watch the final outcome. 

Standard disclaimer:  I am not a SEBI registered analyst. I may have vested interest in every stock I discuss. Please do your own due diligence as stock market investments have high degree of inherent risk. Further the data in the post is prone to errors.