Mallya has lot to explain at Mangalore Chem, UBL AGM

Written By Unknown on Rabu, 03 September 2014 | 23.25

Vijay Mallya will have a lot of explaining to do to shareholders of two of his companies -- Mangalore Chemicals  and United Breweries .

The annual general meeting of both these companies is slated Thursday, and on top of everyone's mind is the fact that Mallya, three directors from his group, and Kingfisher Airlines  have been declared 'wilful defaulters' by United Bank .

But that may not be the only serious matter that Mallya may have to deal with as there are couple of other issues too that the company has been facing.

Besides the fact that they are sitting on a fat debt of around Rs 25000 crore, which hasn't gone down over the last one year, the company has also shut around 2-3 plants for which they are likely to face shareholders' queries.

Importantly, the ownership of UBL is now in question. It may be recalled that Heineken increased its shareholding up to 40 percent in UBL by taking in the pledged shares. Discussions are expected on to what happens to Mallya's position on the board.

Moreover, there have been talks that Deepak Fertiliser  may revise higher its open offer bid for Mangalore Chemicals. Thus some action is expected on that as well.

Mangalore Chem stock price

On August 22, 2014, Mangalore Chemicals and Fertilisers closed at Rs 70.00, up Rs 1.95, or 2.87 percent. The 52-week high of the share was Rs 78.30 and the 52-week low was Rs 48.25.


The company's trailing 12-month (TTM) EPS was at Rs 6.18 per share as per the quarter ended June 2014. The stock's price-to-earnings (P/E) ratio was 11.33. The latest book value of the company is Rs 53.65 per share. At current value, the price-to-book value of the company is 1.30.


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