Promoted way back in 1986 by the Mehrotra Family of Delhi, VLS Finance @ Rs 36 (Rs 10) has had a very colourful past !
A candid conversation ,which I had,with one of India’s top Bureaucrats based in New Delhi ,since deceased, in the 1990’s was peppered with really aggressive and loud colourful language by him when it came to the VLS Group and it’s Promoters
In 1994 the Share Price of VLS Finance had recorded a high of Rs 855 !….yes Rs 855 !….. before crashing into oblivion to Rs 2 levels by 2003 !
But Relax it ‘s Resurrecting through Relaxo Footwears !
…….but should a Minority Shareholder really Relax or should one Buy in?
Relaxo Footwears ( FV Rs 1) is @ Rs 900 from Rs 800 a month ago and has declared a 1: 1 Bonus with Record Date of July 2,2015
VLS Finance’s Audited Consolidated Book Value is Rs 60+ as on March 31,2015 while Adjusted Book Value is Rs 180+ based on Current Valuations of the Non Current Quoted Investments of which Relaxo Footwears itself constitutes over 70% of the Value in the Quoted Holdings….assuming all such Investments have been carried over from FY 14 with more added
In fact Consolidated Non Current Investments at Cost have climbed from Rs 168 crs on March 31,2014 to Rs 211 crs on March 31,2015
The Haircut is a huge 80% between the Adjusted Book Value and the current market price
In fact the VLS Group holds 14.33 % of the Equity of Relaxo Footwear as of March 31,2015 :
- VLS Finance holds 4523528 Equity Shares of FV 1 => 7.54 % of the Relaxo Footwears Equity
- VLS Securities( subsidiary & NSE Member) holds 4075000 Equity Shares of FV Rs 1 => 6.79% of the Relaxo Footwears Equity
The intriguing observation is that VLS appears to have invested in many listed companies where it also has a Consultancy Client Relationship !
VLS Finance has shed it’s NBFC Status and is now a member of both NSE & BSE through group companies
Over a Month ago, I had covered it in greater detail on the SCRIP WATCH Module of my company website when it was lower @ Rs 41 when Relaxo Footwears was @ Rs 800…check it out
VLS Finance @ Rs 41 ~ Sheds NBFC Tag as Stocks Beckon ~ 20-May-2015
Now when Relaxo Footwear has moved up by 12.5 % in a month from Rs 800 to Rs 900 levels ,we see VLS Finance move down by 10% from Rs 41 to Rs 36 !
Is it that the Past of VLS Finance remains a Heavy Stone to bear ?
Whatever ! ….VLS Finance may simply not be bothered by it’s Low Market Price !…..It’s making Life Changing Gains on Relaxo Footwear,albeit notional as of now….that should keep the Promoters and Top Management happy
…..why bother about Minority Shareholders now when it has never done so in it’s history !