I have come to know about following 3 key clients of Fiberweb (India):
- Precision Converters Inc.
- Dewitt Co.
- Ovasco Industries
All of these three companies are based in US and are importers of Technical textiles.
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What’s the source of this information?
How it could be established that they’re continuously buying products from Fiberweb?
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First post by this author and no concrete back up of facts , highly misleading post.
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@Donald, @hitesh2710, @ayushmit, hi, how to value company coming out of bifr, showing some great results, but at sane time some questions on bs being bogus. How to find hidden value
very well said kartiks, those who questioned the selling of so called promoters are not breathing about recent preferential allotment to 3.60 L shares by promoter which may work around 280 as positive one.
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I got to know from some offline sources, not sure if these companies are continuously buying. It would be great if some VP members could verify it.
Even I am slightly skeptical as I got to know from some offline sources. Hence it would be great if some VP members can verify it.
Infusing 10+ Cr to build trust? (Or just 25% of that , since it’s warrants), I think they have already collected 40+ Cr by selling shares. Is this move genuine or just another trick to sell more shares?
Only time will show us 
Disc: Invested earlier, now reduced the holdings to tracking position
After seeing all these shady things going on in this scrip, I feel I have done myself a great favor by exiting it before it’s too late. There is no lack of good scrips in this bull market.
Company has declared they will be going ahead with issuance of bonus shares to the existing shareholders. Although ratio is yet to be declared in the upcoming BoD meeting schedule on 5 dec. Am curious to know, why any company sitting at a critical juncture of CapEx (which btw Fiberweb is), would dilute equity and over commit themselves of servicing expanded equity base ?
Insightful comments would be highly appreciated.
Disclaimer invested in Fiberweb. Thanks…
Personally I think it’s another red flag to add, issuing bonus at this juncture, since it’s not the need of the hour.
too many events too soon, i’m not feeling comfortable.
- issuing preferential shares to promoters. if they are confident they should have bought from market. that would have raised my confidence multifold. with preferential issue they dont have to pay full upfront
- bonus issue. which is not required at this juncture. since capital is required for expansion plan. they have to pay for bonus issue at 10Rs each. even if take 1:1 issue. then 14crores will be spent on this bonus issue.
they have issued preferential shares to strategic investor for capex required for expansion, now seems they are using that money for bonus issue.
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when bonus is issued, it will be fully paid equity of face value. that is my understanding.
it is merely a paper adjustment within the company not going to reflect as expenditure, and in my understanding not necessary to purchase from open market to prove confident and possible promoter may be having idea and confident about company progress, so by warrant route he can block an additional 75 percent extra shares with the cushioning of one year can be taken as positive
issuing preferencial shares will provide company with funds which can b used for expansion or working capital which wud not hav been available if dey wud purchase from open market
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Agreed. However, I guess they are sitting on huge free cash (correct me if I am wrong), then why not fund your capacity expansion via available cash than raising capital via preferential shares ? On the other end if the intent is to send the positive signal to the investor fraternity by increasing promoter holding then why not buy back from the open market ? I mean what else can be better news for investor than knowing that promoters are pumping their own money in the company in which they are invested.
This EPS dilution via preferential shares and now bonus is not making sense (at least to me). Insightful views would be highly appreciated. Thanks…
Disc : Invested in the stock
Fiberweb.pdf (1.5 MB)
Sharing an article on Fiberweb, maybe useful to all investors of Fiberweb. I am not invested but though this information will be useful to fellow investors.
Bonus sounds like a final nail in coffin .thats my first reaction after coming to know about bonus issue.
The retail will get sucked in because of bonus and operator/ promoter will find it easy to offload themselves at higher prices.
I have personally seen this happening in bull run of 2007-08 and if my memory serves well the company’s name was alpha hi-tech . After bonus issue promoter holding diluted and company got delisted .
I hope fiberweb investors don’t face that fate
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after preferential shares to promoters and then bonus in the middle of expansion plan? it doesn’t fit right.
I have reduced my holding in fiberweb to less than 0.5% of my portfolio. just keeping few shares for tracking.
I too have sold out my holdings. I recollect on concall post recent quarterly result, CEO of company spoke about US clients visiting the plant and we should see barrage of orders being placed by them in next 10-15 days that will trigger production from newly installed meltblown unit. It’s been close to month and there hasn’t been any update on that. Instead bonus news came in. All this seems to be mere excercise of pleasing stock price from management. If bonus is a good news for investor, then who is selling substantial quantity in past few days ? Seems like distribution is on. Again I could be wrong and and stock may break it’s all time high of 389. However, things are to uncomfortable to stay put.
Disc : Exited recently.