The Ultra Tech Saga

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The Ultra Tech Saga

  1. 1. The UltraTech Saga De-Merger of UltraTech - L&T & Acquisition by Grasim
  2. 2. 80% L&T Shareholder’s 100 % L&T 20 % - UTC 100 % in EPC Ultra Tech – Cemco CEMENT L&T EPC division
  3. 3. The Deal
  4. 5. Dilemma of Shareholder……………. <ul><li>Example: Feb 2004 </li></ul><ul><li>A shareholder holds 100 shares of L&T Pre-reconstruction </li></ul><ul><li>Current Market Price Rs500/- </li></ul><ul><li>Total Value Rs50000/- </li></ul><ul><li>He has now – 50 shares of L&T and 40 shares of UTC </li></ul><ul><li>Now if he delivers 40 shares of UTC in open offer </li></ul><ul><li>He receives Rs13680/- </li></ul><ul><li>Thus to get same as 50000 L&T price per shares has to be Rs726.40 </li></ul><ul><li>Re-listing of L&T was at Rs728/- on 19 th May 2004 </li></ul>
  5. 6. News to Play on……………. <ul><li>Example: SEP 2003 </li></ul><ul><li>A shareholder holds 100 shares of L&T Pre-reconstruction </li></ul><ul><li>Current Market Price Rs290/- </li></ul><ul><li>Total Value Rs29000/- </li></ul><ul><li>He has now – 50 shares of L&T and 40 shares of UTC </li></ul><ul><li>Now if he delivers 40 shares of UTC in open offer </li></ul><ul><li>He receives Rs13680/- </li></ul><ul><li>Thus to get same as 29000 L&T price per shares has to be Rs306.40 </li></ul><ul><li>Re-listing of L&T was at Rs728/- </li></ul><ul><li>Profit of 421.40/- per share </li></ul>
  6. 7. Valuations….

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