aravali sec

The Poddar family owned Aravali Securities has effected measures which will ensure that the huge Real Estate Holdings of the corporate will get unlocked to the benefit of its shareholders. As a first step, the Big five international consultancy Ernst and Young has advised the management to hive off its Hotels division run under Good Boutique Hotels. As per the valuation carried out by E&Y, 19 shares in Good Boutique Hotels would be allotted for every 100 shares held in Aravali Securities, to each shareholder. Good Boutique Hotels runs the Palace Hotel Devi Garh, Udaipur, and will have an Equity of Rs 6 crore after re-structuring. On this Equity of Rs 6 crore, Good Boutique Hotels will report after tax profits of Rs 8 crore in FY07 or an EPS of Rs 12. A 7 star luxury Hotel is fast coming up near Jaipur costing about Rs 50 crore. The Kerala Government has allotted 8 Acres of land to Good Boutique Hotels, for setting up a Rs 50 crore Beach Resort. After the de-merger Good Boutique will be separately listed on the bourses, and a fresh placement could be made to FIIs/Strategic Investors. Thus Real Estate Assets of roughly Rs 150 crore will accrue to the shareholders of Good Boutique Hotels. What will get left behind are the 30 per cent shareholding ownership stake in the Poddar family promoted Sirpur Paper, worth about Rs 30 per share of Aravali Securities and Farm Land in Delhi worth Rs 40 crore.