Monday, January 17, 2011

Oscar Investments Ltd: Cash is King !

Oscar Investments ltd ( BSE Code: 501179) is a investment company controlled by Malvinder & Shivinder Singh ( erstwhile Ranbaxy & current Fortis & Religare promoters).
Equity Capital : Rs.17.28 cr
Current Market price: Rs.410
Market Cap: Rs.708 cr
Debt : Nil
Promoter Holding : 69.11%
Cash + Liquid investments + Inter company loans (group company): Rs.1500 cr ( approx)
Per share value of the above : Rs.868
Currently the company has  a 100% subsidiary –Shimal Reserach Laboratories Ltd , which in turn owns 100% of another step down subsidiary –Fortis Clinical Research Ltd.
Background to cash assets:

Oscar Investments had made a huge gain  of Rs.1262.73 cr after Japan's Daiichi Sankyo picked up the promoter's stake in Ranbaxy Laboratories. This was by virtue of the 4.74 per cent shareholding (17,698,468 shares) that Oscar Investments had held in Ranbaxy Laboratories, which formed a part of the 34.8 per cent stake which Malvinder / Shivinder Singh and family held in Ranbaxy. Daiichi Sankyo bought these at a price of Rs.737 per share


The current Indian economic environment is plagued by 2 contrasting factors: High Inflation & Low Liquidity.

Companies with cash like Oscar Investments offer a safe blanket to sleep under during times as the ones prevailing currently .

At the time of writing this report, the author /his family have an investment interest in the stock mentioned above. Under no circumstance does the information in this report represent a recommendation to buy or sell the above-mentioned stock.  This report has been prepared and issued on the basis of publicly available information, internally developed data & other sources believed to be reliable. This is just a suggestion solely for information purposes and does not constitute a solicitation to any person to buy or sell a security. While the information contained therein has been obtained from sources believed to be reliable, no responsibility (or liability) is accepted for the accuracy of its contents. Readers using the information contained herein are solely responsible for their actions and are advised to satisfy themselves before making any investments.

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