Brandhouse Retail, the retail division of S Kumar's is likely to be listed by September end or early October. Shareholders will receive one share of Brandhouse Retail for five shares of S Kumar's. At a conservative PE of 15-18 times, the price would work out to Rs 75-80 per share. S Kumar's has fallen from Rs 105 to Rs 65 after the demerger of S Kumar's. Earnings do not include Brandhouse Retail's numbers.Promoters hold less than 50% in the company.
The shares have already been transferred to shareholders' account. This delay in listing is because FII holding has reached 30%. FIIs are allowed to hold 24% in multi-brand retailing. The company has deducted 6% proportional holding from FIIs and shifted it to a trust. About 6% will be held by an appointed trustee and will be sold in the open market within six months of listing.
Source: Moneycontrol.com
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