Sembcorp Industries’ Scheme of Amalgamation Approved by India’s National Company Law Tribunal

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Sembcorp Industries ($SGX:U96) is a leading company listed on the Singapore Stock Exchange that provides energy and water solutions to customers around the world. Its subsidiaries operate across the power generation, energy infrastructure, and environmental engineering sectors. Recently, the company has received approval from India’s National Company Law Tribunal for its proposed Scheme of Amalgamation between its two wholly-owned subsidiaries, Sembcorp Energy India Ltd and Sembcorp Green Infra Ltd. The Scheme of Amalgamation will bring together the two subsidiaries’ strengths and capabilities in order to create a stronger and more diversified energy and environmental solutions business.

With this move, Sembcorp Industries will benefit from increased economies of scale and operational efficiency, as well as the potential for additional growth opportunities. This is yet another demonstration of Sembcorp Industries’ commitment to expanding its presence in India as the country moves towards its ambitious goals for renewable energy and environmental sustainability. The company hopes that this amalgamation will help it to achieve its goals of providing reliable and affordable energy and water solutions to customers in India and beyond.

Market Price

As a result, the stock of the company opened at SG$5.7 and closed at SG$5.8, an increase of 1.0%. This marked a significant milestone in the company’s history, as the Scheme of Amalgamation had been long awaited and brings Sembcorp Industries closer to meeting its growth goals in the fast-growing Indian market. Live Quote…

About the Company

Income Snapshot

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Cash Flow Snapshot

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Balance Sheet Snapshot

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Key Ratios Snapshot

Some of the financial key ratios for Sembcorp Industries are shown below. More…

Analysis

At GoodWhale, we analyze the financials of SEMBCORP INDUSTRIES to help investors make informed decisions. Our Star Chart shows that SEMBCORP INDUSTRIES has an intermediate health score of 6/10 considering its cashflows and debt, and is likely to pay off debt and fund future operations. We also classify SEMBCORP INDUSTRIES as a ‘rhino’, indicating it is a type of company that has achieved moderate revenue or earnings growth. In terms of its financials, SEMBCORP INDUSTRIES is strong in dividend, medium in asset, profitability and weak in growth. It is worth noting that SEMBCORP INDUSTRIES is largely a dividend-focused company, with a dividend yield that is slightly above the industry average. This makes it an attractive option for investors looking for steady income with limited capital. Its medium asset base indicates that it is well-positioned to manage its assets efficiently, while its weak growth score indicates that it may not have the same potential for growth as some of its peers. Overall, as a relatively safe and steady investment option, SEMBCORP INDUSTRIES is likely to be attractive to investors seeking to diversify their portfolios with established companies with consistent dividend yields. More…

Peers

Sembcorp Industries Ltd is one of the leading energy, water and marine companies in the world. As a Singapore-based conglomerate, it is engaged in a wide range of businesses across the energy, water, waste, industrial and marine sectors. Its competitors include Endur ASA, Mytilineos SA and Fitters Diversified Bhd, all of which are well-recognized international companies in their respective sectors.

– Endur ASA ($LTS:0JGO)

Endur ASA is a Norwegian energy company that specializes in crude oil and derivatives trading. The company has a market capitalization of 962.36M as of 2022 and a Return on Equity (ROE) of 5.71%. Endur ASA’s large market capitalization reflects its ability to successfully convert a strong portfolio of energy investments into significant returns. The company’s ROE of 5.71% indicates its ability to generate profits from its equity investments, showing that the company is a financially sound investment.

– Mytilineos SA ($OTCPK:MYTHY)

Mytilineos SA is a Greek industrial and energy company with a focus on energy, metal and engineering. It is one of the largest diversified energy companies in Greece, with operations in the fields of electricity, natural gas, renewables, aluminium and construction. With a market cap of 2.91B as of 2022, Mytilineos SA is one of the top companies in Greece. Additionally, Mytilineos SA has a very impressive return on equity (ROE) of 14.63%, which is significantly higher than the industry average. This indicates that the company is able to generate more profit from its assets compared to other companies in the same industry.

– Fitters Diversified Bhd ($KLSE:9318)

Fitters Diversified Berhad is a Malaysian-based conglomerate that is engaged in various businesses ranging from manufacturing to property development. The company has a market capitalization of 66.88 million as of 2022 and a Return on Equity of -2.15%. Market capitalization is the total value of the company’s outstanding shares, while Return on Equity measures how effectively the company is using its shareholders’ equity to generate returns. The company’s negative ROE indicates that it is not efficiently utilizing its resources to generate profits.

Summary

SEMBCORP Industries is an attractive investment opportunity for investors. The company has recently gained approval from the National Company Law Tribunal in India to amalgamate its wholly-owned subsidiaries, adding to the potential for growth and expansion. The company has strong foundations in the energy, water and marine industries, and is well-positioned to benefit from the potential for an upturn in the global economy.

Additionally, its share price has been steadily rising over the past year, suggesting that investor confidence in the company is increasing. For investors looking for a well-established and growing company, SEMBCORP Industries is worth considering.