SESA INDUSTRIES….Unlisted but worth Rs 1600+…..much more than Rs 675 being offered

On November 1,2009 I had warned shareholders of the unlisted Sesa Industries to think twice before selling their shares on offers of Rs 600 per share

Unlisted Sesa Industries has buyers off market at Rs 600…but should you sell ? NO!…It’s worth much more 

Now offers are at Rs 675…..Please think again Twice before selling in private deals…It’s worth much more….You will be getting 4 Sesa Goa shares for every 1 Sesa Industries Share….Sesa Goa is currently at Rs 410+…Thus your Sesa Industries Share is worth Rs 1640 ! already…it will climb higher if Sesa Goa climbs higher….A recent BOA-ML report sets a target price of Rs 472 for Sesa Goa

Legal Issues…matter is in the Supreme Court….has delayed this merger for some years now…This year or next should see this issue resolved  

66 thoughts on “SESA INDUSTRIES….Unlisted but worth Rs 1600+…..much more than Rs 675 being offered

  1. there are buyers and sellers in private deals,off the market arranged by intermediaries…newsletters from such intermediaries come regularly highlighting such offers

  2. Bhumesh…you need to send the Transfer Application to Sesa Industries Office in Goa alongwith a valid,fully filled and stamped (0.25%of consideration as transfer stamps)transfer deed with the share certificate…you can put the new address as that of Transferee….however if the deletion of name is because of Death of that Joint Shareholder,you can avoid stamp costs and merely request the company to delete the name of the deceased shareholder…they will need a certified copy of the death certificate plus other documents…initiate the process with them

  3. Bhumesh…Till mid 2008,Sesa Goa was quoted for a FV Rs 10 Share..it then declared a 1:1 Bonus and simultaneous Split to FV Rs 1 and therefore is now quoted for a FV 1 Share….If you had 100 Shares of Sesa Goa of FV Rs 10,you would now be holding 2000 Shares of Sesa Goa of FV Rs 1…Currently Sesa Goa FV Rs 1 Share is quoted at Rs 360

    Scheme of Amalgamation of Sesa Industries with Sesa Goa from April 1,2005 is yet to take effect as a Shareholder had filed a Case and Sesa has finally moved the Supreme Court….This Scheme provides for One Share of Sesa Goa of FV Rs 10 for every 5 Shares of Sesa Industries…After adjusting for 2008 Bonus and Split of Sesa Goa ,One Share of Sesa Industries is equivalent to 4 shares of FV Rs 1 of Sesa Goa….thus the value of One Share of Sesa Industries works out to Rs 1440 considering the current quote of Rs 360 for Sesa Goa….However Sesa Industries is not listed and we can only guess the outcome of the pending case….Therefore there will be a Discount for Sesa Industries Share….I observe that several intermediaries have been offering to buy the Sesa Industries Shares in Private Deals for Discounts as high as 55% at Price levels of Rs 650/700 !…That’s a very High Margin of Safety for Buyers,but a Huge Discount to Value for Sellers !

  4. I HAVE RECEIVED 91 SHARES OF SESA INDUSTRIES WHICH WAS REPLACED ON 1.3.99
    AS I HAVE RECD THIESE SHARES FROM MY FATHER, I WANT TO KNOW HOW THE ALLOTMENT OF SUCH SHARES HAVE BEEN MADE EITHER BY RUGHT/FRESH ALLOTMENT /OR AGAINST SESA GOA RIGHT SHARES

  5. Hi KRM… check out my first blog on Sesa Industries on November 1,2009

    Unlisted Sesa Industries has buyers off market at Rs 600…but should you sell ? NO!…It’s worth much more

    Sesa Goa Shareholders were offered a Preferential issue of Sesa Industries in 1992 in a ratio of 1:2 at Rs 22.50 per Share when this Company was created to create Pig Iron…as there was no real market for unlisted Sesa Industries till in recent years,it is safe to assume your father must have been a shareholder of Sesa Goa in 1992 and received this offer and subscribed to these Sesa Industries shares in 1992 at Rs 22.50

  6. THANKS,
    While conversion of in 2005 at 5:1 of face vale of rs.10.00
    Means if 5 shares holder will get 1 share of Sesa Goa and that with FV of Rs. 10.00.
    As mentioned that after bonus in 2005 and 2008 against one share of SI will get 4 shares of SG.
    with a FV of Rs. 10.00 so while spli of share in 2008 it should be 40 of FV of Rs. 1.00
    Requesting you whether my presumption is right or else.

  7. KRM…it’s not that confusing

    You hold 91 Shares of Sesa Industries of FV Rs 10

    2005…..Of these 91 Shares,90 Shares would be converted into 18 Shares of Sesa Goa of FV Rs 10 on merger ratio of 1: 5…you will get some monies/fractional coupon from the Company for the 1 share of Sesa Industries that would be left as fractional share cannot be issued

    However the merger is pending and therefore so is this conversion….However these shares of Sesa Industries will be entitled to same rewards/impacts as a Sesa Goa Shareholder from 2005

    2008….Assuming you hold 18 shares of Sesa Goa of FV Rs 10 on above conversion,you will be entitled for 1:1 Bonus declared…thus your holding climbs to 36 Shares of Sesa Goa of FV Rs 10

    Sesa Goa also simultaneously split the FV from Rs 10 to Rs 1 in 2008….therefore these 36 shares of FV Rs 10 you will hold in Sesa Goa will finally become 360 shares of Sesa Goa of FV Rs 1….this is quoted at Rs 360+

    Therefore your original holding of 90 Shares of Sesa Industries of FV Rs 10 is equivalent to 360 current FV Rs 1 Shares of Sesa Goa….this computes to One Share of Sesa Industries of FV Rs 10 held is equivalent to Four Shares of FV 1 of Sesa Goa currently

    Therefore your understanding is incorrect that for every One Share of Sesa Industries of FV Rs 10 you will get Four Shares of Sesa Goa of FV Rs 10,and therefore 40 Shares of Sesa Goa of FV Rs 1 as they are now split…after all the above steps One share of SI of FV Rs 10 will give you Four Shares of SG of FV Rs 1 that is currently quoted

    Hope this is a more clear clarification specifically for your holding

  8. Dear Daita Sita…yet awaiting Supreme Court judgement on this…Prospects look good for Sesa Group…but I have reservations about Vedanta using up all their monies for Investment in Cairn…the ROI to Sesa Goa for their 20% stake that will cost near US $ 3 Billion in Cairns is not going to be too strong if only Divididend returns are considered…assuming it to be a strategic stake Im not considering any Captail Gains that may accrue if the Share Price of Cairns moves up from cost….it alearly appears Anil Agarwal is using Sesa Cash for Vedanta Group Interests at the cost of Sesa Minority Shareholders

  9. Hi Pankaj….picking up Sesa Industries at Rs 1200 translates into a costing of Rs 300 for Sesa Goa shares if the merger goes ahead….currently Sesa Goa is Rs 340….I would advise a hold right now….the current price of Sesa Industries varies as these are private deals …the imputed price is Rs 1360 but there will be a steep discount of atleast 30 % …hat would indicate a price closer to Rs 1000….matter is being heard in the Supreme Court…in fact the same shareholder who had filed a case had petitioned the Supreme Court to stay the Cairns Investment by Sesa Goa till the earlier matter is cleared….Supreme Court dismissed this petition allowing Vedanta Group to let Sesa Goa invest close to US $ 3 billion for a 20% stake in Cairns

  10. Many thanks for your detailed reply dated 25th Sept. 10. I and my husband hold 50 shares each from the date of preferential issue. So far we have even forgotten for the reason because of sesa group. Would u advise us to wait some more years or is there any other strategy to maximise returns?

  11. Dear Daita Sita…Instinct guides me to believe that all Commodities…Oil,Agricultural,Minerals and even Bullion will be Gold for years to come…Sesa Group may be a willing and blatant and aggressive violator of Corporate Governance…but you cannot take away the vision of this guy Anil Agarwal to corner Mineral Mines available…he is now leveraging on the Cash Rich Sesa Group that forms part of his Vedanta Group….your holdings of 100 Shares of Sesa Industries is easily worth Rs One lakh currently….you’ve held it for so long and it’s become a Winner…Simple Mantra…what has performed for you should be continued with….because otherwise Reinvestment risk will pop up

  12. Dear Mr Mehta….As a shareholder of Sesa Industries you will be entitled to all dividends declared by Sesa Goa from FY 2005/6 on the Sesa Goa shares you will receive in the swap once the merger is cleared…matter is at final stage in the Supreme Court…that is the reason Sesa Industries itself has not declared any dividend

  13. Sir, I have followed your updates on Sesa Industries regularly.My father holds 150 shares of Sesa Ind. bought @ IPO joitly with his brother.The issue of merger with SesaGoa been there for almost three years now.Recently, I got a call from a dealer willing to buy Sesa Ind.@ Rs.825.00.Now I am a bit confused whether to accept his offer or not. I am not willin got hold on to these shares JOINTLY for very long.So do you suggest me to sell them or not. Hope to receive a reply, either positive or negative. But please give a reply either way.Thank you very much.

  14. Dear Abhijit,

    Sesa Goa closed at Rs 341 today…that’s Rs 1364 for 4 shares…that’s equivalent to One share of Sesa Industries….the Offer of Rs 825 is at a 40% discount to this value based on price of underlying Sesa Goa of Rs 1364….I’m not even considering entitled dividends….then the discount would be much higher….Supreme Court Matter should be decided early next year….if you dont need the money urgently,dont sell….youve waited this long,might as well a little longer unless you can negotiate a much lower discount to value

  15. is the SESA INDUSTRIES LTD share still worth something. My father had some shares in physical form and I need to get these tranmitted in the name of my mother. Could you please advise procedure.
    thank you and with best regards

  16. Dear Pradeep….check out the blogs and all responses….ofcourse Sesa Industries shares have a value….get in touch with them in Goa and they will guide you on the procedure for transmission

  17. I want to transfer 500 shares of Sesa Industries Rs.10 paid up in my son’s name. What amount of share transfer stamp should I buy for this purpose.or What amount shoud I take for consideration value of sesa industries share as it is not quoted. Where shoud I send this shares for transfer? Please help me.

  18. Dear Rajiv,

    You need to affix 0.25 % of the Consideration…as Supreme Court has now allowed the amalgamation one would expect Sesa to announce record dates soon for this…so taking a consideration of close to Rs 1000 would make your 500 shares worth Rs 5 lakhs…that’s stamps worth Rs 1250….you need to send the shares with the the transfer deed to the Sesa Office in Goa…they will return it duly transfered if signatures are alright and deed is valid within 15 days to a month…you can google the sesa website for the address…call them too for this to find out the exact procedure for this gifting and transfer….Cheers

  19. Sir ,I have 200 Sesa Inds Fv10/-, bought in 1994.
    How to sell the shares ?& what is te Rate now?
    When will I get the 800 shares of Ses Goa shares in exchage of Sesa Inds?

  20. Umesh,Sesa Industries are transacted off the market in private deals…their value is derived from the Share Price of Sesa Goa…this being over Rs 300 currently,it follows that Sesa Industries would be worth Rs 1200 +…as the amalgamation ratio is 4:1 adjusting for bonus and split….however the deals will be at lower prices….Rs 800 to Rs 1000… as the Sesa Industries is not listed…as Supreme Court has cleared the way for amalgamation would suggest you await this…wait may not be too long now…early this year,I would reckon…. so you do not have to compromise on any discount and loss of accumulated dividend of Sesa Goa that you would be entitled to…your risk remains that the Sesa Goa Share price may fall in this time…Cheers

  21. i have 200 Shares of Jindal ferro Alloys , bought in 1995, what is the status of said company , I have received 1800 shares of Jondal Steel & power , What are the shares i am eligible for? Plz guide me.& where to send the shares to get new shares.

  22. Hi Gavrav,
    I have 1000 shares of Sesa Industries . Can tell me how many shares of SESA GOA I am entitled to get ? and whether I will get the shares or company will give me buy back offer ? If so what will be the approximate cost per share of SG of face value of Rs 1/- ? When shall I contact the company ? Can U please (mail ) give the concern ( persons ) number

  23. Hey Doc Girish,your 1000 Sesa Industries will get you 4000 Sesa Goa Shares….worth more than Rs 10.5 lakhs + a few lakhs of dividend entitlement…hope this is not a recent unlisted purchase and you are going to strike a good bonanza…call me for the party !…as long as these shares are in your name and the address is valid you will get the amalgamation communication from the Company as the Apex court has cleared the hurdle recently

  24. Dear Jatin….it is mentioned in the Sesa Goa letter to you of March 14,2011 that the dividend will be Rs 11.75/FV Rs 1 Share of Sesa Goa you get and that you shall be send a dividend warrant seperately…as you shall receive 400 Shares of Sesa Goa,you shall receive Rs 4700 Dividend too…..If you have not already conveyed to Karvy,Hyderabad that you want the shares in demat form,please do so urgently by March 31,2011 or else they will send you the shares in physical form

  25. Yeah, Thank you for mentioning the amount. But also the concern was that there was some accumalated dividend which the share holders were entitled to receive, which is not mentioned on the company letter or the hyperlink which I did provide the last time. So wanted to know if the rate of Rs 11.75/FV Rs 1 was for 1 year or the left over years??? And also want to ask as currently dont have a Demat so is there any problem to get physical and then demat it later if wanted?

    Thanking You.

  26. No Problem Jatin…you can demat later the physical shares of Sesa Goa you receive for the shares of Sesa Industries that you hold…also the dividend of Rs 11.75 is per FV Rs 1 shares of Sesa Goa and is the aggregate entittlement of yours for the period 2005-10 after adjusting for the 1:5 initially announced swap ratio for a FV Rs 10 shares and later adjusted for the split to a FV Rs 1 shares and 1:1 Bonus for Sesa Goa in 2008/9….Sesa Goa had announced Dividends of 400%/400%/450% for FV Rs 10 for Fy 06 to 08 and 225% and 325% for FY 09 and 10 for FV Rs 1 share….these would aggregate after the above adjustements to the entitlement…Cheers !

  27. hi mr gaurav,
    i am located in dubai . i have forty shares of sesa industries. i spoketo karvy in india. they are offering in return on 40 shares of sesa industries they r giving 160 shares of sesa goa. is it perfect ratio?
    pls help me on same

  28. ye s aditya…for your 40 shares of Sesa Industries of Fv Rs 10 you are entitled 160 shares of Sesa Goa of FV Rs 1 + Dividend of Rs 11.75/share on these 160 shares…Cheers

  29. dear sir
    i have 142 share of sesa industries in physical form and i want to convert in sesa goa and in my demate, what should i do please inform me

  30. Dear Mr Rathod,
    If these 142 shares of SI are in your name then you would have received a communication from Sesa for the amalgamation and your demat account details….you must have not responded to them …you will get 568 shares of Sesa Goa and Rs 11.75 Dividend/share on these 568 shares…you can write to them with your Sesa Industries Folio Number and Holding and Demat Account Details and request them to intiate the process to give you the Sesa Goa shares in lieu of the Shares you hold in Sesa Industries….this company is now amalgamated with Sesa Goa

  31. i have 50 shares of sesa ind i want to change of address what should i do pl give me the address of authorised agent of the co.so i can change my postal address

  32. Dear Jaivant Thaker,

    Sesa Industries has now been merged into Sesa Goa…if the 50 shares of SI you hold are in your name from before the record date announced earlier this year for the merger,you are entitled to 200 shares of Sesa Goa + accumulated Dividend….you can write to the Company in Goa…the address is the same as on the share certificate you hold of SI

    SI share certificate has to be exchanged for Sesa Goa shares…you can inform the company of your demat A/c and you can receive them directly in demat form

    You must have missed all the communications send in this regard from the companies…they must have send it to your old address on their record

    When you contact them inform them of the change in address too

    Cheers !

  33. I am having 500 Shares of Asian Coffe ,Bought in 1997.
    Now the same company merged with TaTa Cofee, Request you to tell me how much shares of TATA coffee I have to get as on today

  34. @ Umesh,

    If I may add my inputs.

    Asian Coffee (ACL) was merged with Consolidated Coffee (CCL) in 1999-2000 and 1 equity share CCL was issued for every 6 shares of ACL.

    Later, CCL was renamed as Tata Coffee Limited.

    Hope It Helps.

  35. My name is Vijayendra Tanawade. My Father have shares of SESA INDUSTRIES LIMITED.
    The company issued shares certificates in 1994.

    Now we want to dematerialize the same. Last time we contacted them 3 years back,
    that time we had been told that some court case was going on for transferring these shares
    into SESA GOA shares. After that because of some reasons we are not able to contact them.

    Please help in this matter

  36. Dear Vijayendra,

    Reiterating again…check my earlier responses to queries like yours….Sesa Industries has now been merged into Sesa Goa…For every One share of Sesa Industries your Father holds he will get 4 Shares of Sesa Goa + all dividends till date. ….you can write to the Company in Goa…the address is the same as on the share certificate your father holds of SI

    SI share certificate has to be exchanged for Sesa Goa shares…you can inform the company of your fathers demat A/c and you can receive them directly in demat form…or else if your father does not have a demat account,he will then receive the Sesa Goa shares in physical form…In this case I However advice you to open a Demat A/c for him as he can then receive Sesa Goa shares in Demat form and this would facilitate easy selling too

    You must have missed all the communications send in this regard from the companies…they must have send it to your fathers old address on their record

    When you contact them inform them of the change in address too

    Cheers !

    Gaurav

  37. Dear Jayprakash Patel,
    Sesa Industries has been merged into Sesa Goa now…so there is no way these shares can be transfered…if you have recently purchased these shares in 2010 or 2011 and not send them for transfer then the curreny holder must have received the dividend as well as the Sesa Goa shares due on these Sesa Industries holdings…if however you have held these shares for many years under name/s in your family or friend or known circles,it seems you have not received any intimation of this merger and communications relevant to this…seems your address in company records must be an old one…what you should do is call or write immediately to Sesa Goa quoting the Folio (as on your Share Certificate/s) under which you held 100 shares in Sesa Industries…ask them also to update the address…..they will tell you the status and how to proceed to claim the new Sesa Goa Shares

    1. Dear Vishal kiritbhai doshi,

      Check my earlier responses to such a query ~ if you have been holding these 100 shares of Sesa Industries for many years in family name/s then write to Sesa Goa and claim your 400 shares of Sesa Goa + Accumulated Dividend and update your address and signatures in their records ~ if you provide your demat account details they will ,on verification,transfer the new shares to your account ~ these 400 shares of Sesa Goa are currently valued @ Rs 75000 + you’ll get accumulated dividend of just under Rs 5000 in aggregate

      Cheers,

      Gaurav

    1. it’s merged into Sesa Goa quite awhile ago & in turn Sesa Goa & Sterlite merged to create Vedanta Ltd….Thus you need to contact the Company & tell them to initiate process to issue your Vedanta Shares.Proportions are on record

  38. Hi Gaurav,

    Firstly, let me thank and congratulate you on the extensive information you’ve made available here. This is probably the only proper information link on Sesa Industries available online when one Googles it.

    I recently wrote to the RTA of Sesa Goa / Vedanta for transfer of 100 Shares of Sesa Industries held since issue. While I have received a confirmation from them (after a lot of paper work back n forth), my query is – would the unclaimed dividend be calculated from 2005? If so, what would be the quantum of this dividend – do I calculate it based on 20 Sesa Goa shares of FV 10 from 2005 till the time of split and bonus and 400 there after?

    Thanks!

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