Khoday @ Rs 66 ~ Delisting by Serving an over diluted Peg at just Rs 75 to Shareholders !? Value is much More because of Real Estate !?

Upfront Disclaimer : Neither My Family nor I have ever owned Khoday India Shares and don’t know of any who have or do, except perhaps RR ,a blog reader and pretty well informed and savvy investor too,  who conveyed in a private email his dismay and disgust on what Khoday is upto ~ he may be justified and has prompted me to go deeper and post this Blog as a result ~ it is not intended to offend anybody or entity and there is no bias or vested interest involved  and should therefore be read as an attempt to put forth the facts and arguments and perceptions so that Investors understand the Risks of Investing in such Companies like Khoday India   


Khoday @ Rs 66 ~ Delisting by Serving an over diluted Peg at Rs 75 to Shareholders !?

Minority Shareholders believe that the Value is much more because of Real Estate Interests that are not being disclosed or have been moved away from the company at low values !?


Khoday was set up in 1965 as a Private Distillery by the Khoday Family .It went Public and got listed in 1986 on BSE,Bangalore and Madras Stock Exchanges.In 1992 the name was changed to the current name of Khoday India Ltd

It’s Registered and Operating Office is in Bangalore.K L Ramachandra is the Chairman and  K L Srihari is the current Vice Chairman & Managing Director .Both are Third Generation Khodays and their Sons & Fourth Generation are on the  Board too ~ Fifth GenNext is also being Groomed

Interestingly,apart from Nominal Sitting Fees ,no Khoday Family Executive or Non Executive Director has taken any Remuneration in FY 12 and none has been provided ! ~Come On ! they cannot be working for free !

It’s not paid any Dividend for the past five Years and performances have been pretty flat ~ Ironically Dividend too died  from the Financial Year  2007 when  the Khoday Head L Narayanasa Khoday too passed away ~In fact there were Losses in three consecutive FYs 08-11 and even in the 9m FY 13

It owns the well known Premium Brands of PeterScot and Red Knight in the Indian Made Foreign Liquor (IMFL) Whisky Segment .In FY 12 Liquor Sales were Rs 292 crs and yet Khoday made a Loss in this Segment !

However it’s Forays into Real Estate Development had perked up substantial Interest in the Company and had even raced the Share Price to a High of Rs 425 in August 2007 from a low of just Rs 37 in January of the same year !

There has been some infighting in the Khoday Family with  an estranged daughter in law and her two children claiming  their share in the Family Property ~ Court has made some observations read more