JK AGRIGENETICS is a member of JK group companies
established in Hyderabad in 1989. Earlier it was
part of JK Tyre and Industries and later de-merged
into a separate company.This company is engaged in
research and development, production, processing
and marketing of hybrid seeds of Sorghum, Pearl
Millet, Maize, Cotton, Rice, Sunflower, Tomato,
Okra and Hot Pepper. Products are selling under the
brand name 'JK SEEDS'.Company is collaborating
with various national and international
agricultural universities for bringing latest
technology in seed development.In 1999
company set up a Bio tech lab of international
standards at Hyderabad with 15 scientists .
Its Hyderabad plant having a capacity to process
100 ton seeds per day. Company is selling seeds of Cotton,Bajra,Maize,Jowar,Paddy ,Sunflower,
Castor,Mustard,Wheat,Redgram and Soyabean.It also
producing seeds of vegetables like Tomato,Bhendi,
Chilli,Bottle Gourd,Water Melon,Radish,Cabbage,
Sweet Corn,Cucumber and Coriander.Company has
recently started production from Phase 2 of its
new seed processing plant in March 2010.
Due to adverse climatic conditions company's sales
badly affected in last year and company posted
huge loss.It is expected to perform better ahead.
THE REAL ATTRACTION
--------------------
In 2006 ,company planned to de-merge into two
- Seed division and Investment division . When we dig deep
into the investment division it is amazing to see the
value in it.This division holding shares of JK Lakshmi
Cement(Total current Market value Rs.45 - Crore),JK Paper
(Rs.38 Crore) ,JK Tyre( Rs.99 Cr.) ,Umang Dairies (Rs.3 Cr),
Bengal Assam Company ( Rs.13 Cr).Other than this it also
holding shares in unlisted companies like Fenner India,
Udaipur Cement,Florance Alumina ..Etc. All together its
investment portfolio worth over Rs.200 Cr in current
market price. Remember, its total shares issued are
only 3,506,510 and when we divide its investment
portfolio for these share ,what should be the value
of each share of JK Agri.(Approx.Rs.570/- each) Anyway
company's plan was to de-merge it in a manner so as
a share holder will get 60 shares of seed company and
40 shares of Investment company. Company's proposal was
earlier rejected by Court due to complaints by some
share holders, and company now filed an appeal to the
division bench .This petition is expected to come for
hearing in this month itself . It is expected that Company
is planning to de-list the investment company after
de-merger . I believes If such a reverse book building
happens ,one can recover entire investment (at current
rate) by just surrendering the shares of investment
company alone and keep the shares of seed company
cost free. In nut shell at CMP of Rs 170/- you are
getting a company from JK group operating in a high
potential Agri sector plus part of 200 Crore investment
at a market capitalization of just 59 Crore.
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