Did You Know: Core Investment co holds 20% in Jindal Saw

It is well known that OP Jindal Group is a conglomerate and worth over USD 10 billion. However, this company’s market cap is only Rs 350 crore and the investments put together, direct and indirect, are worth nearly Rs 1650 crore.
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Home » News » CNBC-TV18 Comments

May 05, 2014, 09.03 AM | Source: CNBC-TV18

Did You Know: Core Investment co holds 20% in Jindal Saw

It is well known that OP Jindal Group is a conglomerate and worth over USD 10 billion. However, this company’s market cap is only Rs 350 crore and the investments put together, direct and indirect, are worth nearly Rs 1650 crore.

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Did You Know: Core Investment co holds 20% in Jindal Saw

It is well known that OP Jindal Group is a conglomerate and worth over USD 10 billion. However, this company’s market cap is only Rs 350 crore and the investments put together, direct and indirect, are worth nearly Rs 1650 crore.

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Varinder Bansal (more)

Head - Research, CNBC-TV18 |

‘Did You Know’ today focuses on a core investment company of O P Jindal Group that trades at 80 percent discount to investment value and holds over 4 percent stake in JSW Steel, nearly 20 percent in Jindal SAW.

The Company talked about is Nalwa Sons Investments. It is well known that OP Jindal Group is a conglomerate and worth over USD 10 billion. However, this company’s market cap is only Rs 350 crore and the investments put together, direct and indirect, are worth nearly Rs 1650 crore. Clearly, this company’ market cap is 80 percent of the investment value what the hold in direct or indirect holdings.

There is no debt on the books of the company. The equity base is very low for this company and the actual value as per investment of this stock should be Rs 3200. At 20 percent discount it should nearly be Rs 2550, at 40 percent discount it should be nearly Rs 1900, at 60 percent discount it should be Rs 1300 and at 80 percent discount it should be nearly Rs 650 which is the price the stock is trading around.

Looking at the important investments on direct and indirect holding, in JSW Steel, the company holds 4.01 percent stake that is valued nearly Rs 1000 crore. In Jindal Saw Ltd, it holds nearly 19.5 percent stake valued around Rs 300 crore and in JSW Energy, the holding is nearly 2.13 percent that is valued around Rs 200 crore. That direct holding value is nearly Rs 890 crore but they also have nearly 87 percent stake in Jindal Holding that is valued around Rs 300 crore.

In Sun Investments Pvt, again an investment company, their holding is nearly 30 percent that is valued around Rs 275 crore and JSW Holding, where this company holds nearly 10 percent stake the value is nearly Rs 200 crore. So, put together, it seen that the total investment is nearly Rs 1650 crore. But, there are lot of unlisted or unquoted investments in this company starting from Rohit Tower Building, Mansarover investments, Jindal Equipments Leasing, Jindal Overseas PTE, Brahmputra Cap, Midland Steel and PTE Jindal Stainless Indonesia.

The book value of all the above-mentioned unquoted investment is nearly Rs 100 crore if you want to add that, cannot get through the market value of this. But, the shareholding pattern is also important, its diversified all across and there are big names which are holding stake in this company. Promoter holding is 55.5 percent and Acacia Partners hold nearly 3.3 percent stake in this company, IL&FS Trust holds nearly 2.03.

In addition, some big investments and big names like Ricky Ishwardas Kirpalani holds nearly 7.9 percent stake and Keshwani Haresh holds nearly 6 percent stake these are big investors holding it. So, it’s the company from one of the largest group in India and the core investment company that is trading at 80 percent discount to all the investments and holdings like JSW Steel, Jindal Steel and Power Limited (JSPL), JSW Energy, Jindal Saw, everything.

OP Jindal had that tragic helicopter crash death and he had four sons, all in four different businesses and in this company, all four sons have stake and his widow Savitri Jindal also has a stake. This really is an interesting bet and there are many shareholders in this particular company trading at about what 80 percent discount right now.

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Did You Know: Core Investment co holds 20% in Jindal Saw

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