Suven creates value through demerger

The pharmaceutical component of the company which was carve-out in January got listed today , This is another demerger which was value accretive Pre Demerger Mkt cap was less than INR 3000 crore now separate companies have combined market cap ~INR 5000 crore

You can read a previous analysis of the company here

As far as scorecard is concerned , we would be removing both components (companies) from score card. The Pharmaceutical component at today’s trading price
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My rational

Life science component though close to Mr. Jasti’s heart is pure play speculative bet and tough to put a valuation figure
Pharmaceuticals component is something the management may get rid off and currently at ~INR 4500 crore mcap is richly valued

3 comments

  1. Balaji Prabhakaran says:

    Sir, Suven Pharmaceuticals is at upper circuit today, how do you feel about the sell decision? I know the answer is indifference, but still wanted to check 🙂

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