(a)It came out with an IPO for Rs 60 to expand capacities.Since then the plans have undergone a change and part of expansion was achieved by merging a group company Shyam tex which had a sale and net profit of 100 crores and 4.98 crores approximately.

(b) It is available at PE level of around 8 on premerger and a PE level of 6 on post merger equity which is good for textile business

(c) It has unveiled plans to unlock share holder value by joint development of its prime property. Instead of just selling the property the company has gone in to commercial space selling and may get around 50 crores per year for next 4 years.

(d) If the company retires the debt then EPS could shoot up sharply

(e) The business also can have expansion with good cash flow.At current levels of Rs 31 the stock has limited down slide but a good potential for rise.
(f) Further there is good institutional holding and public holding in only 18 percent and promoters 58 percent

Below are the old news on Shyamtex merger as well as the details
given by company on real estate joint development. There are also old reports
by Ashish Chugh and Kunal Bhakta which can be seen for their point of view

Shivalik Global Ltd has informed BSE that the Company and RPS Infrastructure
(RPS) one of Northern India's leading real estate developers, jointly
announced that they have entered into a definitive agreement providing for
the joint development of the Company's property at 12/6 Mile Stones, Mathura
Road, Sarai Khawaja, Faridabad, Haryana into a IT / Commercial complex. The
total size of the deal is estimated to be Rs 630 Cr spread over a period of
4 years. Of the total realizations the Company share along with that of a
group Company (Gandhar Exports Ltd) is estimated to be over Rs 280 Cr. An
amount of Rs 50 Cr. shall be paid by RPS Infrastructure as advance deposit.

Commenting on the deal, S K Agrawal, Executive Director, of the Company said
"Today it is a truly exciting day for Shivalik Global Ltd. The cash flows
from this deal over a period of time will help Shivalik Global scale up in
weaving, spinning and garmenting to become globally competitive. RPS is a
strong player in the Faridabad region and is well positioned to market the
real estate project. This agreement will unlock significant shareholder
value and help us generate significant returns on our underperforming
assets."

The details of the deal are as follows:

- The plot size is 36,723 Sq Yards (7.58 Acres) and is jointly owned by the
Company and Gandhar Exports Ltd in the ratio 64:36

- The total cost of development and construction of the project shall be
borne and met by RPS Infrastructure

- The marketing and selling costs will be borne by RPS Infrastructure

- RPS infrastructure shall give an advance of Rs 50 Cr which will be shared
in the ratio of 64:36 between the Company and Gandhar Exports Ltd

- The Revenue sharing is as given below:

(i) For Development of IT Park - the Company & Gandhar Exports Ltd will get
44% of the Gross sale proceeds

(ii) For Development of Commercial Complex - the Company & Gandhar Exports
Ltd will get 41% of the Gross sale proceeds

(iii) The Gross Sales proceeds in turn will be shared between the Company &
Gandhar Exports Ltd in the ratio 64:36

The Company expects good value for the joint development project in view of
the infrastructure being established for commonwealth games and the
accelerated growth being witnessed in the Delhi-Badarpur border Faridabad
area along the Mathura Road.

In order to vacate the land where the current factory is located, the
Company will be relocating to 4 Acre plot of Land that has been allotted to
the Company by HUDA in sector 58, Faridabad, Haryana. The construction work
has already started in April 2007 and is expected to be completed by the end
of this year. The Company plans to set up state of art plant with modern
machineries and replace obsolete machineries in the existing plant. The
relocation is planned to be done in phases to minimize production stoppages.

The cash flows from the real estate foray would help the Company in retiring
long term debts besides funding future expansions.

*Shivalik Global To Acquire Shyam Tex International for Rs.26 Crores*

Close on the heels of a successful IPO, Shivalik Global Limited (SGL), a leading textile fabric & apparel company, is acquiring Shyam Tex International Ltd. (STIL) for a consideration of Rs.25.69 crores.). As per the scheme, of acquistion Shivalik Global Ltd will acquire in the 1stphase 60% of the equity capital of Shyam Tex International at
its book value of Rs.16.06 per share which entails a cash outflow of Rs.15.42 Crores.

In the Second phase Shyam Tex International would be merged with Shivalik Global Ltd. Shivalik Global through a stock swap deal will offer 17.13 lakhs equity shares in the ratio of one equity share of Shivalik Global Ltd for every 3.73 shares of Shyam Tex International as a consideration for the balance 40% equity of Shyam Tex International. It would thus result in the increase of equity capital of Shivalik Global by Rs.1.71 crores from Rs.24.25 crores to Rs.25.96 crores. The merger will be effective from 01.04.2006

Shyam Tex International has achieved an approximate turnover of Rs.98 crores with an approximate net profit of Rs.4.35 crores for the year ending 2005-06. Some of the Company's European buyers include: Next French Connection, Debenhen, Mango, Burton etc. Shyam Tex International Ltd is situated at a prime location on main National Delhi - Agra highway.

.

Shivalik Global Ltd after this acquisition of Shyam Tex International would
now have the benefits of higher capacities and better economies of scale
which would be available to it immediately without any gestation period. Mores
ever, the cost of expansion through this proposed acquisition of Shyam Tex
International is significantly lower as compared to the original envisaged
proposed expansion programme of Shivalik Global Ltd.

Earlier Shivalik Global, had finalized an expansion programme at its existing facilities and had proposed to set up a garment manufacturing unit near Faridabad but after this proposed acquisition of Shyam Tex International the expansion at existing facilities will not be taken up but instead the capacities that would now come under its fold through this proposed acquisition will be 145% higher in the case of knitted fabrics, 49%
higher in case of dyeing and processing of knitted fabrics and 28% higher in case of dyeing, printing and processing of woven fabrics. The proposed 36% increase in the capacities of dyeing and processing of yarn as planned earlier, which anyway was a low-margin business segment, will not be taken up for now. The company however would shall be installing the de-bottlenecking equipments at its existing facilities amounting to
Rs.6.00crores.

The acquisition as explained earlier has been done at book value of Shyam Tex International which means no premium or goodwill has been paid for the running established business, possible revaluation of assets primarily land, and a well established clientele book. It will also remove any possible doubts regarding conflict of interest amongst prospective investors as Shyam Tex International was technically a group company.

The company is expected to close the year 2005-2006 with a turnover of around Rs.182 crores and PAT of close to Rs. 8 crores. At the same time Shyam Tex International Limited is expected to do a turnover of Rs.100 crores with a Net Profit of Rs, close to Rs. 4.35 crores for the year ending March 2006.

The company after completion of acquisition will achieve a consolidated turnover of Rs.300 Crores with a net profit of Rs.18 Crores on Equity of 26 Crores. The realization from the Real Estate Projects will start planning from the year 2008.

* *

SGL to Enter Real Estate Business

* *

Close on the heels of a successful IPO Shivalik Global is acquiring Shyam
Tex International Ltd. (STIL), a leading textile fabric & apparel company,
is entering the real estate business.

* *

The company is in process of acquiring 15 Acres land from the Government of Haryana for which the application has already been moved and 10% of initial payment amounting to Rs.1.51 Crores has already been deposited. This land will be partly utilized for setting up 2.1 Million Pcs Garmenting facility and further the existing manufacturing facility at Faridabad will be relocated to the new site which will be in the Faridabad.

The relocation will make the 4.856 acre land at Faridabad, which is situated in a prime location available for alternative uses.

The company plans to develop this land for commercial use and plans to sell 4 lakh square feet of space.

Conservatively, this will give a gross realization of Rs.320 crores for SGL, which will come in FY08 and FY09.

SGL hopes to realize a net gain of Rs.125-150 crores from this commercial land development, which will unlock value for its shareholders.

SGL after this acquisition would now have the benefits of higher capacities that would be available to it immediately without any gestation period. The cost of expansion after the present capacities acquisition will be lower than envisaged earlier.