After the death of DK jain, there is a dispute going on in the jain family and matter has even reached the Delhi High court...and now we find that DK jains wife, Usha jain has sold almost half of her holding in aksh...I can try and speculate on the various scenarios leading to this..
1) Usha jain is just simply selling Aksh...
If its a case of simply selling such a huge quantity of shares by a person who was connected with Aksh from a very long time...then the stock price of Aksh would have crashed. And why would she sell shares of Aksh now, when it seems to be performing well and is about to take off...The jain family is quite well versed with business and stock market affairs...so they would not do any distress selling at such low price levels.
2) Its a structured sale with a pre arranged buyer
the way the high trade volumes are generated by the two Ahmedabad and Bombay based firms on the day that usha jain sells her shares indicates that the high volumes are just to mask the sale of shares by Usha jain. And since it involves market manipulation, it would mean not just manipulation of volume but even manipulation of price too..i am informed that usually in such cases, the seller receives quite a good amount in cash in addition to the selling price as transacted at the stock exchanges.
3) It is without the knowledge of the promoters..
some one is not only buying the shares sold by usha Jain now but has been continuously buying Aksh shares throughout the last one year...this is reflected in the high volumes and delivery percentage in Aksh...the trading pattern clearly pointed out to huge accumulation...can such a person keep buying such big amounts without the knowledge and concurrence of the promoters..
Usha jain holds almost 12% of the aksh equity...anyone buying from Usha Jain and from the open market would have a holding percentage more than the share of the first promoter group of the Chaudhrys.
If this is without the concurrence of promoters, then why are the promoters not taking any action to protect their holding on the company.
On the contrary we find that the promoters have diluted equity by issuing 1.1 crores shares through FCCB. Why does a low debt, cash generating company need to issue FCCB for such a small amout of 17-18 crores.The quantum of FCCBs and timing indicate that the FCCBs were issued only to enable some party to acquire those shares on behalf of the promoters.
All the above point to the role of promoters in jacking up their holding in Aksh by buying the shares of Usha jain and also those that got converted through FCCBs.
In case it turns out that the promoters are so incompetent that they still do not know that some hostile party is takingover their company, then it may sooner or later lead to a bidding war between both the parties. But I find it very unlikely, given the market savy promoters belonging to the other branch - The Fulchands. The Fulchands are very seasoned businessmen from Bombay..they have a good holding in kewal kiran ..have a garment export business and also some real estate ventures...recently, the Fulchands ave acquired the unlisted company of Dr Kailash Chaudhry- Bharat Towers.
Most probably, it appears that the Fulchands are the ones who are actually increasing their stake in Aksh.