 "Man Ind to list demerged firm soon")
KPMG has been asked to create two separate verticals to be headed by the two brothers with distribution of assets in 1:1 proportion. With this, the demerged entity — Man Infraprojects Ltd —0 will listed on bourses soon.
“Currently, a 100 per cent subsidiary of Man Industries, Man Infraprojects will be first merged and then demerged with the holding company to create two separate entities. KPMG has been appointed as an agency to devise a formula to distribute assets equally between two brothers as agreed by them recently,” said K G Mantri, director, Man Industries.
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Under the proposed corporate restructuring plan, RC will continue to head Man Industries, while JC will be given Man Infraprojects. Both brothers have resigned from each other’s company to facilitate smooth functioning of day-to-day operations of both companies by respective managements.
After the listing of the demerged entity, both will swap their shareholding in respective companies to avoid cross holding and emergence of similar dispute again. But if they wish to continue with shareholding in each other’s company, they may do so, provided the same was agreed upon mutually.
For shareholders, however, the settlement of disputes between the two brothers is a win-win situation as every share held in Man Industries will automatically fetch a share of Man Infrastructure.
“On completion of 25th year, we are celebrating silver jubilee year in 2013. On the day of celebration, therefore, shareholders will get free one share of every share they held, which is as good as bonus share,” said RC.
In one of the most unfateful corporate family disputes, Mansukhani brothers filed a number of suits against each other..This scheme of arrangement puts an end to fierce corporate battle.
Man Industries has a Rs 400 crore as market capitalization and Rs 1000 crore as order book position as on June 30, 2013.
Man Industries is one of the largest producer of steel pipe in India. The company posted a consolidated turnover of Rs 1461 crore and net profit of Rs 67 (check) crore for the financial year 2012-13.
On standalone basis, however, the company posted total sales of Rs 1409 crore and net profit of Rs 101 crore for the financial year 2012-13.
The entire process may take 6 - 9 months time which requires several approvals before implementation.