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Eastern Investment



REASON 1.

EQ OF EASTERN IS 1.44 CR AND IT HOLDS 51% SHARES IN OMDC

TODAYS MKT CAP OF OMDC IS 2400 CR AT TODAYS PRICE OF RS.4000/SH

THIS GIVES A BOOK VALUE/ INTRISIC VALUE OF APPROX RS. 9000.00 PER SHARES AGAINST THE CURRENT MKY RATE OF AROUND 3500.00 PER SH.

REASON 2

 IN EASTERN U CAN PUMP IN CASH which will get long term on merger after 1 yr

REASON 3

EASTERN WILL BE MERGED IN RINL IN 12 MONTHS AS PER STATEMENT OF BOARD IN AGM

RINL WILL BE LISTED BY IPO IN OCTOBER 2013

THE MECHANT BANKER WILL HAVE TO VALUE EASTERN ACCORDING TO INTRISIC VALUE THUS GIVING SHARE HOLDERS A VERY FAVOURABLE RATIO AT THE TIME OF MERGER

REASON 4

WE ARE BULLISH ON OMDC AND EXPECT THAT THE PRICE SHOULD GO TO ABOUT 1 LAC IN 1 YRS TIME.
IN SUCH A SCENERIO , IT IS DESIRABLE TO SELL OMDC AND BUY EASTERN FOR THE SAME AMOUNT WHICH SHOULD DOUBLE THE PROFIT FOR INVESTOR, AS EASTERN IS LIKELY TO BE SOLD AT AROUND 15000/SH COMPARED TO A CURRENT PRICE OF 3500/SH IN 1 YRS TIME.

 Eastern Valuation.
Sir according to the previous Swap of Stakes done between OMDC, RINL,LIC,Eastern Investment And Government of India Omdc was valued at Rs 22000 per share and Eastern was holding 34 % of the Omdc. So the value of holding of Omdc with Eastern at that time comes at Rs 448 crore.Equity of Eastern of 9 lac shares when we divide, we get Eastern value per share @Rs 4900 per share.
At this rate only Eastern shares were swapped. So currently seeing the value of OMDC At Rs 4000 per share and Eastern equity of 14.4 lac shares, Eastern per share value should be Rs 9000 per share as it holds 50 % of Omdc.


THEREFORE , MERGER OF EASTERN WITH RINL IS THE REASON TO BUY THE SHARES,, AND NOT THE REASON NOT TO BUY THESE SHARES

PLS CALL IF YOU NEED ANY CLARIFICATION ON THIS, OR IF YOU HAVE ANYTHING CONTRARY TO THIS

THANKS

SANDIP GINODIA 
www.abhisheksecurities.com
 9830271248
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