Saturday, 26 July 2014


BENNETT, COLEMAN & CO. LIMITED.


The  Times  Group  is  the  largest  media  services  conglomerate  in  India.  It  is headed by brothers Samir Jain and Vineet Jain. It reaches out from:

•    11 publishing centers

•    15 printing centers

•    55 sales offices

5  dailies  including  two  of  the  largest  in  the  country  with  approx  5.0 million copies circulated daily
•    2 lead magazines

•    29 niche magazines

•    Reaching 2468 cities and towns

•    32 Radio Stations

•    2 Television News Channel

•    1 Television Life Style Channel


BRANDS:


Its major brands include:


•    The Times of India, World's largest English daily

The  Economic  Times,  India's  largest  financial  daily,  and  the  world's second largest after The Wall Street Journal
•    Maharashtra Times, India's largest Marathi daily

•    Navbharat Times, the largest Hindi Daily in Delhi and Bombay

•    Mumbai Mirror India's largest circulated compact newspaper
•    Pune Mirror

•    Bangalore Mirror, Bangalore's first morning compact daily

•    The Times of India - Kannada

•    Times Private Treaties, Partnering Ideas. Accelerating Growth.


SUBSIDIARIES:


Its subsidiary companies include:


1)  ENIL & TIML


Times Infotainment Media Limited & Entertainment Network India Limited that together control

•    Radio Mirchi National network of Private FM stations

•    360 Degrees Events

•    Times Outoors

Mirchi  Movies  Limited  Filmed  Entertainment.  Producers  of  BEING CYRUS, VELLITHERAI, MANJADIKURU
•    Goldman Sach and Lehman Brothers have bought stake of 8.2% in Times

Innovative Media Limited, a subsidiary of TIML for Rs. 200 crores.


2  TIL


Times Internet Limited which has


•    Indiatimes portal

Times of Money - an online payments portal specializing in remitting money to India and other parts of the world

3)  Times Global Broadcasting Limited


This was a Joint Venture with Reuters. No longer has a joint venture as Reuters exited and BCCL acquires the stake of 25.82% for Rs. 34,34,83,460/- ( $ 41.89
million)

 
•    Times Now, A general interest news Channel

•    ET Now, A business news channel


4)  Times Business Solutions


•    TBSL, corporate website of TBSL.

•    Times Jobs, a jobs portal

•    SimplyMarry, a matrimonial portal

•    Magic Bricks, a real estate portal

•    Yolist, free classifieds portal

•    Ads2Book, online classifieds booking system for print publications

•    PeerPower, a top level professional networking portal


5)  World Wide Media


World  Wide  Media  -  A  magazine  joint  venture  between  BCCL  and  BBC

magazines


•    Filmfare

•    Filmfare Awards

•    Femina

•    Femina Miss India A Beauty Paegent

•    Top Gear India

•    Hello

•    BBC Good Homes


6)  Vijayanand Printers Limited


•    VPL, Bangalore Publisher of Vijay Karnataka
Its   share   in   Karnataka   regional   language   advertising   revenue   is maximum.

 
Some of the leading dailies of VPL are:


•    Vijaya Times

•    Vijaya Karnataka

•    Usha Kirana

•    TOI-Kannada

•    Bangalore Mirror


7)  Times Private Treaties


Times Private Treaties is a barter program in which Advertisement space is bartered for equity stakes in new and established companies.

8)  TIML Radio Limited


TIML Radio Limited which purchased Virgin Radio (and renamed to Absolute Radio) in the United Kingdom. This company is a direct subsidiary of BCCL (not through TIML or ENIL)

9)  Times Syndication Service


The syndication division of The Times of India Group, grants reprint rights for text,   images,   cartoons/illustrations,   audio/video   and   microfilms   drawn primarily from Times Group publications.

10)      Times Music


It launched the brand “Junglee Music” which clinched the rights to two of the biggest blockbusters Hindi movies, ‘Welcome’ and ‘Singh is King’. The division has  also  made  a  successful  entry  into  the  regional  film  space  with  Tamil, Kannada & Telegu films.

11)          AEGON Religare Life Insurance Co. Ltd.

It is a joint venture company between AEGON International as a foreign partner holding 26%, BCCL holding 30% and Religare Enterprises holding 44%.


12)           ZOOM Entertainment Network Limited

The company has approved demerger of ZOOM television channel business into a separte company ZOOM entertainment network limited (ZEN). CPI Ballpark investments limited, a Mauritius based investment company of The Merill Lynch group , has invested in ZEN in the form of equity shares at a premium of Rs 1356 per share and Convertible Debentures for a total of 25% of ZEN s paid up capital. The total amount invested is Rs 120 crores( us $ 30  million) , thus valuing ZEN at Rs 480 crores.
ZEN agreed to acquire 80% of the share capital in Asia Star Broadcasting Inc., a New Jersey based company which owns and operate a general entertainment television channel called as TV Asia .The cost of acquisition is approx. 18 million.


13)          Times of money limited


Times of money limited have invested in the equity share capital of ARTHEON FINANCIAL SERVICES LIMITED (AFS). AFS will be providing a wide range of financial services on retail basis in investment, insurance, credit card etc.
During  the  year  Artha  Broking  Services,  Artha  Commodities  Limited,  Artha

Distribution  Services  Limited,  TOM  Insurance  Broking  Services  Limited,  and

Credential Invest corp pvt ltd were incorporated as subsidiaries of AFS.


14)          BENNETT, COLEMAN (GULF) FZ –LLC


This is a wholly owned subsidy incorporated in the Dubai International Media Production Zone, Dubai Media city for the purpose of owning and operating the business of printing and publishing, The Times of India and The Economic Times from Dubai. The company has entered into a Memorandum Of Understanding with Arab Media Group, Masar Printing AND Publishing Tawseel Distribution and  Logistics  for  the  purpose  of  providing  logistic  support,  printing  of  the
newspaper  and its distribution in Dubai.

FINANCIAL & HOLDING STRUCTURE OF BCCL:


Bennett Coleman & Co Ltd has an equity base of 286.96 Crores. There are only 12 shareholders of the company out of which 8 are corporate shareholders namely:

Name of the Shareholder                                                 No. of shares                                            

Bharat Nidhi Ltd                                               70041600                      24.41%                                
PNB Finance & Industries Ltd                        52297848                     18.22%
Jacranda Corporate Services Ltd        
(100 Subsidiary of PNB Finance)
Camac Commercial Co. Ltd                          38161548                     13.29%
Arth Udyog Ltd                                             26719848                       9.29%
Ashoka  Viniyoga Ltd                                  51707916                      18.02%
Sanmati Properties Ltd                                27981000                       9.75%
T.M.Investments Ltd                                    17093016                       5.96%
Vinit Jain                                                          1642248                       0 .57%
Sameer Jain                                                           7200                        0.002%
Meera Jain                                                        943200                         0.365%
Trishla Jain                                                       360000                         0.125%

The copies of the Investments Details from the Balance sheets of the following shareholders are enclosed.
Bharat Nidhi Ltd.
PNB Finance & Ind. Ltd.
Camac Commercial Co. Ltd.
Arth Udyog Ltd.
Ashoka Viniyoga Ltd.
        

As per the media reports as on May 2008 the value of Bennett Coleman & Co ltd has been done by a leading merchant banker at more than $ 30 billion (120000 crores). Also as per the DRHP of ENIL, which is a subsidiary of BCCL, the Net Asset Value (N.A.V) of RCCL as on 2005 is Rs. 24,118.2 per share (Please refer to Page no. 120-121 of DRHP of ENIL enclosed).


There is news that Bennett Coleman & Co ltd is planning an IPO and simultaneous listing in New York Stock Exchange in the next fiscal year. 
( The copy of the statement of Sh. Vinit Jain is enclosed) 


Bennett Coleman & Co Ltd has a growth history of 35% YoY basis with a EBITA

margin of 35% and 85% of the total revenue is from advertisements.

The Bennett Coleman Co Ltd.  has also increase the ESOP price form Rs.446 to Rs. 546 in the Financial Year 2011-2012. Before this the ESOP price was Rs.446/- per share

(The extracts of the Balance Sheet & Profit & Loss account and  
  Directors Reports are enclosed)



According to us the valuation of the operating company Bennett Coleman & Co Ltd can be arrived only by segregating the past performances and the future expected revenue growth.


For considering the value of past performances we can take the media report as the base to avoid any kind of debate on the valuation as it has been done by one of the leading merchant bankers of the world.

The Honorable High Court of Bombay vide its order dated October 14,2011 has sanctioned the scheme of Arrangement between the Company and Bennett Property Holdings Company Ltd. ( BPHCL, a wholly owned subsidiary o fthe Company up to the appointed date) for Demerger of the Companies real estate business alongwith related assets and liablities to BPHCL with appointed date as April 01,2011 and effective date as January 01,2012. The shareholfers of the Company were issued 1 share in BPHCL for every 6 shares held in the Company.
( The above extract has taken from the Balance sheet of the Bennett Coleman & Co.  Ltd. Page No.  203)
 
Based on the above facts and the holdings of the Companies and their Investment in multiple business we have calculate the value of the following Companies as given below.
Bharat Nidhi Ltd.                        Rs.58000  Per share
PNB Finance & Ind. Ltd.            Rs. 39800  Per Share
Camac Commercial Co. Ltd.     Rs. 105300 Per share

Basis of calculation of share Price:-  
Value of BCCL (70000 Crore) * Total % holding of the shareholder Company %
No of Shares of the Shareholder Company 
The value of BCCL based on the statement of Sh. Vinit Jain, copy of which is already enclosed.
For Example in case of Bharat Nidhi Ltd. :   70000 crore *24.41%
                                                                                    2948296 shares
The above price has been calculate without the cross holdings of the Companies. With the cross holdings of the Companies the value of the shares are too much higher.
            
  We can view some investments at 

http://www.brandcapital.co.in/our-portfolio/equity-portfolio


BRANDS

http://www.timesgroup.com/brands/publishing.html

http://www.timesgroup.com/brands/broadcasting.html

http://www.timesgroup.com/brands/digital.html

http://www.timesgroup.com/brands/others.html

There is a lot of value in ecommerece business also. We can check the ranking at 

http://www.alexa.com/

Just enter the website name and check ranking.



Thanks & Regards

Manish Mittal

09215709100

=============================================

DISCLAIMER:- Please Recheck Above Given Matter. 


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