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Weizmann To Demerge Power, Forex Biz

29 March, 2010

Textile and financial services firm Weizmann Ltd is demerging its wind power generation and foreign exchange trading businesses into two separate listed companies.

The company, which is co-promoted by Chetan Mehra and Dharmendra Siraj, draws a large chunk of revenue of Rs 1,700 crore from forex trading unit that also accounts for over half of its consolidated profits.

The forex trading business, Weizmann Forex Ltd, is currently 51% owned by Weizmann. As per the plan, the forex subsidiary is being merged into Weizmann along with a wholly owned power generation arm Karma Energy Ltd.

After this the power business would be demerged into a separate listed firm Karma Wind Power Ltd with two shares of the new power firm to be issued to the holders of every three shares of Weizmann Ltd. Similarly, the forex trading business will be demerged as Chanakya Holdings Ltd with each shareholder of Weizmann being allotted two shares of the new firm for every three shares owned by them in the parent firm. Chanakya Holdings will then be renamed as Weizmann Forex.

Both the share exchange ratios have been determined based on the valuation report of N A Shah Associates and fairness opinion by Fedex Securities Ltd.

For the year ended March’09, Weizmann reported consolidated net sales of Rs 1,740 crore with net profit of Rs 13.5 crore.


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2 Comments
Rajan Mehra . 6 years ago

Any source for the information that Weizmann Limited holds 51% holding in Weizmann Forex. As per market available information, it was estimated to be around 97.5%, with Chetam Mehra holding the remaiing 2.5%.

Pallavi S . 6 years ago

Thanks Rajan for pointing out the missing source. The 51% holding is as per disclosure in last annual report ending March’09. We could not find any separate disclosure that the holding has changed thereafter. Could you kindly indicate if 97.5% is there in public statement or announcement?

Regards

Weizmann To Demerge Power, Forex Biz

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