PIRAMAL GLASS CEYLON PLC (GLAS.N0000)

invest thinker wrote:

@Mr. X, Bro,

last 4 days ago, price has increased to 8.90, traded volume 45Mn shares, last 3 days price down upto 8.20, traded volume 51.2Mn shares. now almost dust cleared. definitely, Monday, more chances to increase GLAS's prices. maybe beyond 10level.

another one, most of them believed GLAS ownership transfer to USA institution and more chances to increase stakeholder %, other than 56%. that's mean , they will buy in market. then GLAS price will hit beyond our expectation price. GLAS continuously buy, have so many secrets behind this. i still optimistic, GLAS. I wrote these things, especially, for  @SVkiruba. he ask most of time TP day by day. I, GLAS still hold like investments other than trading.

invest thinker wrote:

@Mr. X, Bro,

last 4 days ago, price has increased to 8.90, traded volume 45Mn shares, last 3 days price down upto 8.20, traded volume 51.2Mn shares. now almost dust cleared. definitely, Monday, more chances to increase GLAS's prices. maybe beyond 10level.

another one, most of them believed GLAS ownership transfer to USA institution and more chances to increase stakeholder %, other than 56%. that's mean , they will buy in market. then GLAS price will hit beyond our expectation price. GLAS continuously buy, have so many secrets behind this. i still optimistic, GLAS. I wrote these things, especially, for  @SVkiruba. he ask most of time TP day by day. I, GLAS still hold like investments other than trading.

svkiruba8@gmail.com got the answer.

invest thinker wrote:

@Mr. X, Bro,

last 4 days ago, price has increased to 8.90, traded volume 45Mn shares, last 3 days price down upto 8.20, traded volume 51.2Mn shares. now almost dust cleared. definitely, Monday, more chances to increase GLAS's prices. maybe beyond 10level.

another one, most of them believed GLAS ownership transfer to USA institution and more chances to increase stakeholder %, other than 56%. that's mean , they will buy in market. then GLAS price will hit beyond our expectation price. GLAS continuously buy, have so many secrets behind this. i still optimistic, GLAS. I wrote these things, especially, for  @SVkiruba. he ask most of time TP day by day. I, GLAS still hold like investments other than trading.

svkiruba8@gmail.com wrote:

invest thinker wrote:

@Mr. X, Bro,

last 4 days ago, price has increased to 8.90, traded volume 45Mn shares, last 3 days price down upto 8.20, traded volume 51.2Mn shares. now almost dust cleared. definitely, Monday, more chances to increase GLAS's prices. maybe beyond 10level.

another one, most of them believed GLAS ownership transfer to USA institution and more chances to increase stakeholder %, other than 56%. that's mean , they will buy in market. then GLAS price will hit beyond our expectation price. GLAS continuously buy, have so many secrets behind this. i still optimistic, GLAS. I wrote these things, especially, for  @SVkiruba. he ask most of time TP day by day. I, GLAS still hold like investments other than trading.

Dear Invest Thinker

Thank you for your kind value information for sharing with us I will hold on Glass ..!!!!

Mr. X,

tata wrote:PIRAMAL PVT LTD India  has 7 manufacturing plants. 2 in USA 4 in India 1 in SL.  Other 6 plants  output may be higher or lower  than PIRAMAL SL. 900 Mn USD is for acquisition of PIRAMAL PIRAMAL PVT LTD India not for PIRAML SL. Assuming equal production capacity in all 7 plants we may consider 900/7=130 Mn USD for SL business...in very approximately......

invest thinker wrote:@Vishwanarth, they 1st stage expect only 800Mn, then after he expected value USD900Mn-1Bn with higher competition to acquire Piramal entity. he added GW also. i seen one of article clearly highlighted GW in internet. now , i checked but, i cant found it. so many articles, i read earlier.
 
pls see, this valuation and add USD 950Mn instead of 900Mn. can expect more price improvement. 

Master D Valuation Analysis of the deal  ( This is My own work -  pls comment if you have feedback)

Piramal GLASS is to be sold at 900MN to 1Billion USD. Lets consider the worst case. 900 Million.

Two ways to value the SL operation
 1.  Production capacity based allocation on the deal price
 2.  Turnover based valuation (  figures available in financial reports of Piramal group India) 

1. Production capacity based allocation

 Piramal has four plants and to decoration centers. can process 1475 tons a day as a group.
SL operation has 300 tons per day capacity.  Thats 20% of total capacity ( assumed all factories utilized at the percentage capacity allocation).

Sale value = 900 Million USD
20% sale value =  180 million USD =  32.4 billion LKR

No of Shares of GLAS=  1 billion

Thats leads up to a value of 32.4 per share as per this deal. (  best case valuation )


2.  Turnover based valuation

2020/19 turnover for the GLASS operation of Piramal =  357 Million USD (  source: 
https://www.piramalglass.com/piramal-glass-announces-inr-300-crores-us42-million-investment-towards-expansion-of-its-jambusar-plant-in-gujarat-india/ )

Valuation of the deal =  900 Million USD
Valuation ratio =  900/357 =  2.5 times turnover

GLAS N.000 turnover for 19/20 year =  7 billion LKR
valuation as per above ratio = 7*2.5=  17.5 Billion LKR

Price per share =  17.5 Billion LKR /  1 billion shares =  17.5 LKR per share


This valuation goes to 17.5 LKR per share.  (  which is the worst case valuation)




Broker firms now recommends this will be 16+ bcz of the deal.

subash81 wrote:

invest thinker wrote:@Vishwanarth, they 1st stage expect only 800Mn, then after he expected value USD900Mn-1Bn with higher competition to acquire Piramal entity. he added GW also. i seen one of article clearly highlighted GW in internet. now , i checked but, i cant found it. so many articles, i read earlier.
 
pls see, this valuation and add USD 950Mn instead of 900Mn. can expect more price improvement. 

Master D Valuation Analysis of the deal  ( This is My own work -  pls comment if you have feedback)

Piramal GLASS is to be sold at 900MN to 1Billion USD. Lets consider the worst case. 900 Million.

Two ways to value the SL operation
 1.  Production capacity based allocation on the deal price
 2.  Turnover based valuation (  figures available in financial reports of Piramal group India) 

1. Production capacity based allocation

 Piramal has four plants and to decoration centers. can process 1475 tons a day as a group.
SL operation has 300 tons per day capacity.  Thats 20% of total capacity ( assumed all factories utilized at the percentage capacity allocation).

Sale value = 900 Million USD
20% sale value =  180 million USD =  32.4 billion LKR

No of Shares of GLAS=  1 billion

Thats leads up to a value of 32.4 per share as per this deal. (  best case valuation )


2.  Turnover based valuation

2020/19 turnover for the GLASS operation of Piramal =  357 Million USD (  source: 
https://www.piramalglass.com/piramal-glass-announces-inr-300-crores-us42-million-investment-towards-expansion-of-its-jambusar-plant-in-gujarat-india/ )

Valuation of the deal =  900 Million USD
Valuation ratio =  900/357 =  2.5 times turnover

GLAS N.000 turnover for 19/20 year =  7 billion LKR
valuation as per above ratio = 7*2.5=  17.5 Billion LKR

Price per share =  17.5 Billion LKR /  1 billion shares =  17.5 LKR per share


This valuation goes to 17.5 LKR per share.  (  which is the worst case valuation)




Broker firms now recommends this will be 16+ bcz of the deal.

Thank you MasterD
Rs 17,50 minimum if things workout as expected 

Vishwanarth wrote:Nice analysis.. Thanks.
Want know just for educational purposes.

Bro, once a company is acquired by another company consideration is Net Assets+ goodwill?
If  USD900M give for Piramal group that means three companies,
Piramal SL
Piramal India
Piramal USA there.
How will devide according to accounting IFRS standards this consideration among three companies?
What will be the possible portion to SL piramal?
Thanks

VS wrote:still stay at 8.1

Vishwanarth wrote:

VS wrote:still stay at 8.1

Have to wait until US buying price announcements

VS wrote:still stay at 8.1

 "Investing should be more like watching paint dry or watching grass grow. If you want excitement, take $800 and go to Las Vegas." - Paul Samuelson 

Real_Investor wrote:Blackstone Group Inc. has agreed to acquire the glass unit of Indian conglomerate Piramal Enterprises Ltd. for about $1 billion, according to people with knowledge of the matter.

The transaction will probably close by the end of 2020, one of the people said, asking not to be identified as the details are private. The U.S. private equity giant is in talks with banks for about a $400 million, five-year loan to fund the deal, another person said.

C.THARANGA wrote:anyone knows, have info. regarding GLAS interim dividend 0.20cents this time?