BF Investment, Kalyani Investment to list on Jan 14

Investment divisions of BF Utilities and Kalyani Steels will be listing on exchanges on Friday, January 14, 2011.

Investment business undertaking of BF Utilities (BFUL) got demerged and vested in BF Investment (BFIL). BFIL has allotted 3,76,67,628  equity shares of Rs 5 each to the shareholders of the BFUL in the ratio of 1 fully paid equity share of Rs 5 each of BFIL for every 1 equity share of Rs 5 each held in BFUL.

The issued, subscribed and paid-up equity capital of the company post arrangement is Rs 1883.38 lakh consisting of 3,76,67,628 equity shares of Rs 5 each. About 75,33,526 equity shares will be lock-in till January 31, 2014.

BF Investment holds stake in listed as well as unlisted companies. Listed companies include Automotive Axles (35.52% stake), Kalyani Steel (39.06% stake) and Bharat Forge (2.61% stake). Unlisted companies include KSL Holdings (49.99% stake), Meritor HVS (49% stake) and Khed Economic SEZ (26% stake).

Total market value of investment is around Rs 640 crore while the company has no debt on its books. At 50% discount, BFIL stock should list around 85/share.

Promoter holds 66.09% stake in BFIL and T Rowe Price International holds 7.1% stake.

Kalyani Investment Company

The investment division of Kalyani Steels (KSL) got demerged and vested in Kalyani Investment Company (KICL). KICL has allotted 43,65,306 equity shares to the shareholders of the KSL in the ratio of 1 fully paid equity share of Rs 10 each of KICL for every 10 equity shares of Rs 10 each held in KSL.

The issued, subscribed and paid-up equity capital of the company post arrangement is Rs 436.53 lakh consisting of 43,65,306 equity shares of Rs 10 each.

Total market value of investment stands around Rs 1777 crore. At 50% discount, stock should list around 2000/share.