Post Demerger impact of Asian Hotels – Unlocking the hidden value

Hi friends, this is exciting!

Asian Hotels (which we recommended recently for its demerger news) has filed a document with BSE detailing the post-demerger financial aspects including the post-demerger balance sheet of the three new companies. We were flirting with the data to guess the post demerger scenario and here are the possibilities (provided in the excel sheet below).

As per the announcement, a shareholder holding 100 shares of Asian Hotels will get:
– 50 shares of AHL residual company
– 50 shares of Chillwinds
– 50 shares of Vardhman Hotels
The new figures show a significant rise in the book values, as during the demerger, the assets are transfered at their fair values.

Do give it a look at the above numbers and share your comments.

39 thoughts on “Post Demerger impact of Asian Hotels – Unlocking the hidden value”

  1. sir,
    tanxs for u r update on ASIAN HOTELS, according to you can I buy more at this levels ? approximately what will be listing price of the three hotels?

    KUMAR.

  2. sir,
    tanxs for u r update on ASIAN HOTELS, according to you can I buy more at this levels ? approximately what will be listing price of the three hotels?

    KUMAR.

  3. Dear Kumar,

    As the book value of the all the 3 cos after demerger will be much higher than CMP of Asian Hotels, a good upside is possible.

    Regards,

  4. Dear Kumar,

    As the book value of the all the 3 cos after demerger will be much higher than CMP of Asian Hotels, a good upside is possible.

    Regards,

  5. Dear Ayush,

    Asian hotels has updated regarding record date for secheme of demerger,i.e feb 25 th I think ,as from feb 26 th to march 19 th bookclousre will be there.

    Kumar.

  6. Dear Ayush,

    Asian hotels has updated regarding record date for secheme of demerger,i.e feb 25 th I think ,as from feb 26 th to march 19 th bookclousre will be there.

    Kumar.

  7. Dear Ayush,

    Approximately when will be the three hotels listed and at what price, can I still hold three hotels after relisting are exit at listing price.pls guide me.

    Kumar.

  8. Dear Ayush,

    Approximately when will be the three hotels listed and at what price, can I still hold three hotels after relisting are exit at listing price.pls guide me.

    Kumar.

  9. Dear Kumar,

    I don’t have any specific idea on the listing date but as per the company, they are pursuing the matter. Shares may get listed by mid of April.

    For the listing price – I expect them to trade 1.25 to 1.5 times the individual book values. Anything significantly down or up will create opportunities.

    Regards,

  10. Dear Kumar,

    I don’t have any specific idea on the listing date but as per the company, they are pursuing the matter. Shares may get listed by mid of April.

    For the listing price – I expect them to trade 1.25 to 1.5 times the individual book values. Anything significantly down or up will create opportunities.

    Regards,

  11. it means if all the three company’s listed at their book value 100 shares of AHL wold be 150 shares 50*3 and the combined value would be rs 123800/

  12. it means if all the three company’s listed at their book value 100 shares of AHL wold be 150 shares 50*3 and the combined value would be rs 123800/

  13. Dear Ayush,

    Tommrow Asain hotels is listing ,pls confrim me at what price I can hold or at what price I can buy more or at what price I can sell ?

    Kumar.

  14. Dear Ayush,

    Tommrow Asain hotels is listing ,pls confrim me at what price I can hold or at what price I can buy more or at what price I can sell ?

    Kumar.

  15. Dear Kumar,

    As the ARRs of hotels have been increasing in Delhi ahead of upcoming Common Wealth games, I expect the stock to list well.

    One may accumulate between 300-350 levels and book partial profits above 500 levels.

    Regards,

  16. Dear Kumar,

    As the ARRs of hotels have been increasing in Delhi ahead of upcoming Common Wealth games, I expect the stock to list well.

    One may accumulate between 300-350 levels and book partial profits above 500 levels.

    Regards,

  17. Dear ayush

    Should I hold ASIAN HOTELS ? or sell ? what you think about the two other listings? When it will be listed ?

    Your valuable reply will be appreciated

    Regards

  18. Dear ayush

    Should I hold ASIAN HOTELS ? or sell ? what you think about the two other listings? When it will be listed ?

    Your valuable reply will be appreciated

    Regards

  19. If you had bot the stock only for demerger benefit i.e.. your target was 20-30% gains (as discussed in the above excel sheet) then yes you can still sell.

    In the above sheet I had mentioned – If all three stocks list a BV then the gain will be 26%. Asian Hotels north has listed must above 435.

    Apart from that – Asian Hotels North in itself is a good stock and may do well due to increasing ARRs in Delhi due to upcoming common wealth games.

  20. If you had bot the stock only for demerger benefit i.e.. your target was 20-30% gains (as discussed in the above excel sheet) then yes you can still sell.

    In the above sheet I had mentioned – If all three stocks list a BV then the gain will be 26%. Asian Hotels north has listed must above 435.

    Apart from that – Asian Hotels North in itself is a good stock and may do well due to increasing ARRs in Delhi due to upcoming common wealth games.

  21. Thank you ayush for your valuable advise

    I will hold asian hotels till september 2010.but do you have any info on other two listing ? usually when they have to be listed?

    I remember brandhouse was listed maybe after 4 months , when demerged from skumars ? will it take the same duration or is there a rule that the company has to get listed in a stipulated time ?

    Awaiting your reply

  22. Thank you ayush for your valuable advise

    I will hold asian hotels till september 2010.but do you have any info on other two listing ? usually when they have to be listed?

    I remember brandhouse was listed maybe after 4 months , when demerged from skumars ? will it take the same duration or is there a rule that the company has to get listed in a stipulated time ?

    Awaiting your reply

  23. Hi Ayush,
    on 11/08, ASIAN HOTEL EAST is listing again guide us,@ what price it will be listed, where to book profit and where can we buy.

    Kumar

  24. Dear Kumar,

    As the BV of Asian Hotels (E) is much higher at about 650, i expect the stock to list at 700-750+ levels. We can book profit there.

    Regards,

  25. Asian Hotels (W) listed very much near the expected price.

    Asian Hotels (E) has listed much below the expected range and as the BV is much higher @ 650….one can think of buying at these prices and below.

  26. I think, from tommorow, after owners swap the shares, real value unlocking should happen. In my opinion all these stocks are worth Rs 500/- atleast.

    1. Hi,

      This was a successful demerger and the outcome has been very much on the expected lines.

      We have been able to get a 25-30% return in 6 months from the price of above article.

      The returns are much better for us as we had been buying from Rs 400 (instead of 535 in above article). We had first recommended it here: https://dalal-street.in/asian-hotels/ @ 420

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