Who wrote this article?

Deepak Shenoy, Capitalmind's research team.

Indo Asian FuseGear Withdraws Merger

21 Jun 2011Deepak Shenoy1 min read

Quick Facts

What is "Indo Asian FuseGear Withdraws Merger" about?
What category is this article in?: Stocks
Who wrote this article?: Deepak Shenoy, Capitalmind's research team.
When was this article published?: Published 21 June 2011.
How long does this article take to read?: 1 min read

I’ve been updating a Live post on Indo Asian FuseGear where the company has more than 2x of its market cap in cash, and is an interesting stock.

In May, in a board meeting, they decided to merge with a promoter owned arm, Indo Asian Marketing, at a share swap ratio that seemed, to me, to hugely undervalue the publicly listed arm.

One of their biggest shareholders is ChrysCap’s Ashish Dhawan at 8% and FIIs own 25%. They might have had a say in this, even if promoters owned 42%. FIIs, even if they have been exiting other companies, don’t seem to have walked out of this one.

Oh, they’ve changed their name to Eon Electric - I’ll wait till the NSE Ticker changes before adding a tag.