ITC
Impact of ITC Infotech & Happiest Minds Deal
Implied Value:
- Happiest Minds: 6167 Cr
- ITC Infotech: 11920 Cr
Source: ITC Presentation
In the combined entity that will list, ITC will hold 73.4% stake
The Companies Target:
~10% revenue synergies
~100 bps margin expansion
$1 Bn revenue of combined entity by FY28
Source: ITC Presentation
FY28e Assumption for Combined Entity
- Revenue: 9500-10000 Cr
- PAT: 1080-1120 Cr
Basis current multiples of both the entities, on FY28 assumptions, combined entity could be valued 26000-28000 Cr value
ITC's 73.4% stake in this would obviously trade at a holding company discount of anywhere b/w 25-30%
This implies, their stake in this could be worth anywhere b/w 18000-20000 Cr
On ITC's current market cap of 3.2 Lakh Crore, this is worth 5-6.5% of their value.
On a per share basis, the IT in ITC is worth `12-15/share
However;
It's important to note, the existing value is already in the price as implied at 11920 Cr, as per the presentation earlier
So the incremental upside of this deal is about 6000-8000 Cr
That means this deal adds roughly rupees `5-7/Sh for ITC Shareholders
#FMCGisLife @ITCCorpCom @CNBCTV18Live #StockMarket
- ITC Impact of ITC Infotech & Happiest Minds Deal Implied Value: - Happiest Minds: 6167 Cr - ITC Infotech: 11920 Cr Source: ITC Presentation In the combined entity that will list, ITC will hold 73.4% stake The Companies Target: ~10% revenue synergies ~100 bps margin expansion $1 Bn revenue of combined entity by FY28 Source: ITC Presentation FY28e Assumption for Combined Entity - Revenue: 9500-10000 Cr - PAT: 1080-1120 Cr Basis current multiples of both the entities, on FY28 assumptions, combined entity could be valued 26000-28000 Cr value ITC's 73.4% stake in this would obviously trade at a holding company discount of anywhere b/w 25-30% This implies, their stake in this could be worth anywhere b/w 18000-20000 Cr On ITC's current market cap of 3.2 Lakh Crore, this is worth 5-6.5% of their value. On a per share basis, the IT in ITC is worth `12-15/share However; It's important to note, the existing value is already in the price as implied at 11920 Cr, as per the presentation earlier So the incremental upside of this deal is about 6000-8000 Cr That means this deal adds roughly rupees `5-7/Sh for ITC Shareholders #FMCGisLife @ITCCorpCom @CNBCTV18Live #StockMarket
What u think in future itc demerge its IT division for value unlocking for it's share holders?
#ITC The CAS game yesterday closing is getting unwound early today in many stocks. E.g., ICICI Bank, Bharti Airtel, TCS, ITC ..... What closed at the highest yesterday falling down today (ICICI Bank, TCS..). What closed at the lowest yesterday rising today. (ITC, Bharti
Which date deal will happen @grok