MIRC Electronics hit 10% upper circuit at Rs 19.80 at 14:09 IST on BSE on reports chairman Gulu Mirchandani has agreeed to buy his dissenting brother Sonu Mirchandani’s one-third stake in investment firm Guviso, for Rs 111 crore.
The stock hit a high of Rs 19.80 and a low of Rs 18.60 so far during the day. The stock had a 52-week high of Rs 41.85 on
The company’s current equity is Rs 14.2 crore. Face value per share is Rs 1.
The current price of Rs 19.80 discounts Q3 December 2007 annualised EPS of Rs 2.5 by a PE multiple of 7.92.
Gulu will buy the 33.3% stake held by Sonu’s wife for about Rs 110 crore. The proposed deal will increase Gulu’s stake in the holding entity Guvisco from 27.77% to 61.07 %. Guvisco owns a 52.74% stake in MIRC, which manufactures the Onida brand of consumer goods. Onida has a share of 8-10% in the Rs 14,000-crore colour television market, which is growing at 10% every year.
The Mirchandanis’ brother-in-law, Vijay Mansukhani, will retain his 33% stake in Guvisco. Mansukhani was made managing director of the company last year, while Gulu retained the chairman’s post.
This caps the months-long dispute between the brothers over Sonu’s decision to exit and sell his stake to outsiders. Sonu was reportedly in talks with Videocon Industries and Future Group, amongs others, to sell his stake. Videocon had shown interest in the deal on condition that the promoters settle their internal differences.
The trigger for the dispute among siblings was Gulu’s decision to put his son Kaval in charge of the company’s plasma and LCD business without consulting Sonu reports added.
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