Man Industries to list demerged entity on bourses soon

Appoints KPMG to devise formula of equal asset distribution, shareholders to get one share of Man Infra as bonus for every share held of Man Ind.

Man Industries, India’s largest steel pipe manufacturer for industrial uses, has appointed KPMG as the agency to devise a formula to arrive at the distribution of assets equally between two brothers R C Mansukhani( RC), and J C Mansukhani (JC),. 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 – is set to be listed on bourses soon.

 

“Currently a 100 % 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.

 

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 the Companies by respective managements. 

 

Once the listing of the demerged entity takes place, 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 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.