CHI Investments’ shareholders miffed over RPG Group’s merger move

Shareholders of CHI Investments Ltd are unhappy over the RPG Group’s decision to merge four companies with a subsidiary. They feel that the valuations done under the proposed merger are unfair

Last year, the RPG Group decided to merge four companies—Summit Securities Ltd, Brabourne Enterprises Ltd, Octav Investments Ltd and CHI Investments Ltd—with RPG Itochu Finance Ltd (RIFL), a 100% subsidiary of RPG Enterprises. However, minority shareholders of CHI Investments Ltd are not happy with the proposed merger and are raising questions over the rationale of valuations done under the proposed amalgamation.

RIFL is an unlisted firm. The new entity will be rechristened Summit Securities Ltd, which would be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). Summit Securities Ltd (earlier known as KEC Infrastructures Ltd) was incorporated in 1945. The company is involved in design, manufacture, supply and construction of power transmission lines. Shares of CHI Investments Ltd have been suspended from trading since 3rd February due to the proposed merger.

“I am holding some shares of CHI Investments. The company is proposed to be merged with RIFL and prima facie (the move) does not appear to be fair with minority investors. I think there will be significant erosion in the value of investments in CHI Investments if the merger ratio is not changed,” said an investor, preferring anonymity.

The valuations were carried out by auditing firm Grant Thornton.
The Board of directors gave their approval for a share-exchange ratio of one equity share of RIFL of Rs10 each for six equity shares of CHI of Rs10 on 10 July 2009.

In the case of Summit, one share of RIFL will be issued for every 16 shares held in Summit, while one share of RIFL will be issued for every 28 shares held in Brabourne. Reportedly, a number of minority investors believe that the valuations are unfair.

Maintaining that the company is not considering revising swap value ratio, RPG group in an email said, “The scheme has already been implemented. The question of revising swap ratio does not arise for the simple reason they are determined by independent reputed valuers and approved by the Stock Exchanges and the High Court before being implemented.”

The company feels that the merger would benefit the companies by reducing overall administration costs and bring in more efficiency.

Incorporated in 1997, RIFL is engaged in hire-purchase, car leasing, commercial vehicles, construction equipment and textile machinery.

Post merger, RIFL’s authorised share capital will increase to Rs180 crore from Rs30 crore.An email query sent to CHI Investments remained unanswered till the time of writing.



rekha shah

7 years ago

i had 208 shares of chi investment.thru statement of NSE , i came to know that 34 shares of summit are allotted. we did not receive any communication in this regard as to swap ratio or rate of share. we really feel cheated by such highly reputed company

kailash somani

7 years ago

i was 50 share of Summit Sec., but at persent this is only 3 share.
but i dont konw about my 47 share.
i want know about it.
My DP ID NO IN30105510325475
Plz replay on my id or my cell


7 years ago

I was having 100 shares of Summit Securities. still I have not received shares in my account. My demat account is showing only -16- shares of Summit Sec.


7 years ago

i am holding chi investment shere 100.
pls. clear for pict. whan listing share chi investment ltd. When RIFL will be listed?I want the detail of valuer also . please provide the related information


7 years ago

when will we got our merger share

vipen vashisht

7 years ago

it is clear cut cheating , , i mentioned in my earlier comments to open the page of valuation done by the valuer . how it is done only then I can understand the situationand know the facts.

Ramesh Ramchandani

7 years ago

When RIFL will be listed? I have shares in Summit Securities but until now picture is not clear.

dsouza everett

7 years ago

i will curseu u for cheating us simple thing just sell chi investments and distribute among the shareholders its not rocket science but u guys want more 4 urself okay take it and go to hell even there money will be of no use so enjoy u idiots

John L A Pereira

7 years ago

I am still waiting for RPG Itochu Finance Ltd shares listing.

When this shares will be listed please?

deepak dahu

7 years ago

which listing of RIFL

vipen vashisht

7 years ago

valuation is not fair from where i can the working as i am getting 9 shares against 265 shares of Brabourne.

I want the detail of valuer also . please provide the related information


7 years ago



7 years ago

i was holding summit sec ltd 1495 shares @received 121 shares of same co which is suspended on 02.02.10 the value was rs16/ share .thus the price of each share of R.P.G ITOCHU SHOULD NOT BE LESS THAN RS 256/ TRANSFER RATIO 16SHARES OSUMMI FOR ONE SHARE OF RPG

syed khajaji

7 years ago

I was holding 1400 shares of CHI and now my portfolio shows 233 shares of Summit as of today(18/05/2010)

The valuation is too low. Please advise if I would get additional shares of Summit or should I be bearing the losses as a retail investor due to this merger.

Abdul Salam

7 years ago

Usually before merger offers will b issued shareholders to purchase at a particular price. However in this case(CHI Investments) no offer received by me. Somebody may pl advise me how to redress my grievence

Shipping asset prices on a rise, but this could be a temporary phase

Asset prices for second-hand vessels in the dry bulk and tanker segments are currently going up. However, industry sources believe that players are in a wait-and- watch mode, and the rise may be a temporary phenomenon

After shipping asset prices bottomed out a few months back, a marginal rise of 8% to 10% has been witnessed in the asset prices for second-hand vessels in the tanker and the dry bulk segments. However, industry experts indicate that this could be a temporary situation, and is likely to change with the current volatility in the global economy.

The global slowdown had led to a number of cancellations for new orders placed with the shipbuilding industry. A significant drop in shipping asset prices was also witnessed last year. Asset prices in the tanker segment fell by nearly 40% from their peak in 2008. Similarly, the dry bulk segment took a hit of nearly 70% from its peak in 2008.

Now, with some signs of revival in the global economy, asset prices have moved up by around 8% to 10% from the bottomed-out rates. “Asset prices have slightly moved up, the movement is already visible with around 8% to 10% rise,” said Vinay Kshirsagar, CFO, Shreyas Shipping and Logistics Ltd.

An official from Great Eastern Shipping (GE), which has always timed its asset purchases during a fall in asset prices, has also confirmed the trend. “Yes, asset prices have surely shown some improvement,” said an official.

However, this revival in asset prices could very well be a temporary trend. “The revival in asset prices was expected with the economy coming back on track. Asset prices for second-hand vessels are already on a rise. However, the future trend will depend on the economy. With new issues coming up in Europe, shipping will also be affected. The industry is closely related to how the global economy performs,” said SS Kulkarni, general secretary, Indian National Shipowners’ Association.

“Going forward, if Chinese trading activities slow down, the entire dry bulk momentum will come to a halt. It is very difficult to predict whether the trend would continue or not. It should be a temporary phase; we expect a fall in prices. Though there may be a fall, it will not reach the levels at which prices had bottomed out,” added the GE official.


PC software piracy in India drops to 65% in 2009: BSA

The installations of unlicensed software on personal computers have fallen, but the dollar losses caused by software piracy continue to remain in the $2-billion range

BSA-IDC has said that more people are opting for licensed software, bringing down piracy levels to 65% in 2009 from 68% a year ago, reports PTI.

While the PC software piracy rate, or installations of unlicensed software on personal computers (PC), has fallen, the dollar losses caused by software piracy continued to remain in the $2 billion range.

"About 40% of the desktop PCs sold in India continue to be white boxes (assembled), but the drop in piracy levels shows that people are now opting for legal and licensed software over the pirated ones," BSA vice-president and regional director, Asia-Pacific, Jeffrey Hardee told reporters over a conference call.

The report, in its seventh edition, tracks PC software piracy rates in more than 100 economies worldwide.

The IDC study found that even though piracy levels remain high, anti-piracy education and enforcement campaigns spearheaded by the software industry, governments and law enforcement agencies have made commendable progress in bringing down piracy rates.

"In India, we have made significant progress in further bringing down the piracy rates as compared to 2008. However, our annual commercial value of unlicensed software still stands at a whopping $2.03 billion," Keshav S Dhakad, chair of the India BSA Committee, said.

BSA has taken up various initiatives with the state governments of Karnataka and Maharashtra, as well as with FICCI, and the Department of Industrial Policy and Promotion, Ministry of Industry and Commerce, and Ministry of Small and Micro Enterprises, toward increasing awareness about benefits of using licensed software and protecting indigenous information technology (IT) innovation opportunity.

Global PC software piracy has dropped in 54 of the 111 countries studied, but the worldwide piracy rate has risen from 41% in 2008 to 43% in 2009, due to exponential growth in PC software deployments in emerging economies.

The US, Japan, and Luxembourg continue to hold the lowest piracy rates of economies surveyed (20%, 21%, and 21% respectively), while Asia-Pacific economies with the highest piracy rates include Sri Lanka, Indonesia, Vietnam and Pakistan.

The 2009 BSA/IDC Global PC Software Piracy Study covers piracy of all software that runs on PCs, including desktops, laptops, and ultra-portables, including netbooks. This includes operating systems, systems software, such as databases and security packages, and applications software.


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