The beleagured Essar Group Company,India Securities Limited (ISL) is poised to revive
The Ruias are bringing in equity at Rs 70/share to bail ISL out.ISL has an accumulated loss of Rs 28 crs
There will be a demerger in ISL where the Investment Division will be spun off to another Listed Company Essar Securities limited (ESL).ISL will continue to carry out NBFC Activities
Post Demerger the Networth of ISL will be Rs 31 crs with the Ruias holding 73% stake after infusing Rs 28 crores through 40 lakh shares at Rs 70.ISL currently has a capital of Rs 26.5 crs with the promoters holding a 66% stake
ISL has convened a meeting on August 11,2008 to approve the demerger.The Capital will be reduced by 40% and an equivalent stake will be given to the Shareholders in ESL which will get automatically listed after the demerger.The Demerger plan has been approved by BSE
ISL close up on upper circuit of 5% at Rs 25.55 today with over 50000 share buyers but the actual volume was just 266 shares on the BSE
The Ruias are now worth billions of dollars with their forays in Telecom(in private capacity),Oil and Steel bearing rich fruit…albeit at the cost of many shareholders
ISL is poised to revive big time in the next few months