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Stocks

Indo Asian FuseGear Withdraws Merger

I’ve been updating a Live post on Indo Asian FuseGear where the company has more than 2x of its market cap in cash, and is an interesting stock.

In May, in a board meeting, they decided to merge with a promoter owned arm, Indo Asian Marketing, at a share swap ratio that seemed, to me, to hugely undervalue the publicly listed arm.

One of their biggest shareholders is ChrysCap’s Ashish Dhawan at 8% and FIIs own 25%. They might have had a say in this, even if promoters owned 42%. FIIs, even if they have been exiting other companies, don’t seem to have walked out of this one.

Oh, they’ve changed their name to Eon Electric – I’ll wait till the NSE Ticker changes before adding a tag.