While analyzing La Opala, came across some interesting points. La Opala has a promoter group entity as Genesics Export Ltd. which is a NBFC and listed on Calcutta Exchange, holding around 45% in La Opala.
La Opala also has about 10% holding in Genesics Ltd. They have Non-Current Investments of significant amt. in Genesics Ltd.
While total net worth of Genesics is only 53 cr.
Genesics also involved into Related Party Transactions with La Opala.
What I guess is that promoters have used a way to use shareholders money in name of Non Current Investments to increase promoter shareholding in La Opala and not using their own funds to increase shareholding. Company is able to find a loophole to show shareholding of promoters inflated as they increased their stake in La Opala through Genesics by using funds of shareholders in name of non current investment and did not use their own funds to increase stake. Instead of paving way of increasing shareholding of promoter through a separate entity they could have had personal increase in shareholding.
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