@Nolan. Thanks. Let’s hope for the best. Yes, that’s positive side. Changing top management team when CEO changes is nothing new in industry. I think, mind gets alarmed looking at what as happened in Omkar speciality chemical. How do you see selling in LASA stocks by Pravin, Rishi & Svaks Which is a promoter arm, mainly Pravin. This matches with what Pravin and Rishi did in Omkar during Sept-Dec period and now they are selling the LASA shares. Understand it could just be again a hunch but if this selling would have not happened stock would have been performing better.
As per the Dec 2017 shareholding data, Pravin Herlekar held 13,55,226 shares of LASA. But the latest disclosure dated 17th Feb states Pravin’s holding to be 16,55,226. Where have these additional 3 lakh shares of LASA come from ?
To take Dr. Omkar’s holding to 36 %, another 11 lakh shares need to be transferred from previous promoters to Dr. Omkar. However, Pravin Herlekar has only 5.55 lakh shares with him. So, where will the balance 5.45 lakh shares come from ?
Omkar speciality chemicals also hold 22 Lakhs in LASA as on Dec 2017. OSCL sold 11 Lakh shares in open market. OSCL still holds 11L LASA stocks.
Dear @prakat Yes initially I was concerned by the selling and even I feel the price was pumped to distribute promoter stakes at higher levels. But Omkar had mentioned in Sept concall that he and Pravin have agreed to reduce cross holding off the market so that the stock price shouldn’t suffer. He is doing his best to acquire Lasa stocks from Pravin as is evident from the recent updates. This urgent action from Omkar gives me some confidence that he may not have colluded with other promoters in pumping the price up.
Thanks Nolan. After 11L transfer to Omkar H(LASA MD) and recent selling, OSCL, Pravin, Rishi & Svaks are left with 6% of LASA stocks. As per conf call if Omkar H needs to have 36% stake, OSCL camp would be left with 3% LASA shares(includes data upto 23rd Jan). If OSCL camp want to get rid of all LASA stocks we can expect 3% further liquidation. However, key concern is not promoter sale going forward as damage is already done. Key question is do OSCL camp thinks the prices achieved by LASA in Sep-Jan were high and business of LASA is not upto the Mark. Do we have any clues that it’s not OSCL in waiting? Looking at Omkar situation looks like OSCL needs money hence they sold off.
I am trying to piece together what’s in the public domain about Dr. Herlekar to help establish management pedigree and integrity.
One thing I came across is Amaranth Securities Ltd. Omkar seemed to be the CEO until March 2017 and is still a non-exec director and promoter with 70.56% holding (Rs ~10 cr. at current MCap).
I went through their website and 2017 AR and could not figure out what their business is all about. They make a vague statement about being into financing and leasing of factory equipment. EBITDA margin of > 40%, a 23 year old (Mr. Hitesh Ruke) as a Whole Time Director (and MD?), 0 renumeration to directors and no dividend (what’s in for the promoters??).
Mr. Pravin and Rishi Herlekar also have less than 1% holding each. Omkar loaned Rs. 2.8 lakhs to Amarnath as per related party disclosure in AR 2017.
Does anyone know about what Mr. Omkar Herlekar’s involvement with Amarnath Securities Ltd. is all about?
I m not comfortable the way things unfolded in Omkar Chemical in previous month. Delay in result, qualified opinion of Auditors, silence of management. Similarly resignation of CFO is not considered good, similarly change of Auditors on such juncture according to me is red flag. All factors point out to poor corporate governance.
Diclosure: exited from Omkar Chemical
Having investment in LASA and may come out on any peak.
Looking at the valuation I was tempted to invest in Lasa at 170. I was also keen on the business model as there are not many -players in the same field. Only Hester and Sequent who have many different products and operate in their own niche. Luckily I did a check up on the management which saved me from investing my hard earned money in this scrip, Please check the fate of Omkar. This stock will most likely suffer the same fate and head to the same levels. Lesson to be learned: Stick to good management, even in bad times. Avoid bad management at all times, even if numbers look wonderful!
In concall also issues like depreciation were skirted. I m amazed how a CMD can answer that he is technical person and does not understand depreciation calculation. It means he signed the results without understanding every aspect. More over, regarding share holding he was unable to explain the transfer and asked the participants to send Excel sheet. As Warren Buffet said if we are unable to understand any statement, it means company does not want u to understand the statement. History repeats itself. I m waiting for a peak to come out. Perhaps I paid my tution fee.
The promoter of Sequent recently bought shares in the open market.
Do you think this will propel the stock price upward?
I sense systemic issues. I too exited but started buying back (way too early to my liking, in hindsight), thinking that there is value but alas the saga of ongoing LCs clearly reflect on the saga of messy affairs. Coming to the topic of warrants, yes, that would have been the cleanest option but required belief and that is certainly in short supply all around
@wolfe What is teh source of this info. Searched for teh same but couldn’t find except selling by Svaks.
@nkgambir, valid point, however, there is something shown as others in promoters. May be Pravin has some HUF or other accounts andd holdings
I would differ here. In many con-calls we have CEO+CFO, where CEO takes up business updates and CFO takes calls on Financial matters. We know that CFO was not present in the call. Omkar explained the SHP clearly on the call, but when a participant said that he can send across the SHP in a simpler format where everyone understands, he accepted the same and said will publish it. IMHO rather than business, the sentiment that is making the script to fall, but the 2Lack+ volumes sold everyday are being absorbed. Who is accumulating at this level…???
I attended the con-call, found nothing fishy with what Omkar said. He is trying to be as transparent as possible. No over commitments. Recent developments like changing CFO and Auditors may be taken as building his own team, very much possible in a small company like this. Unit IV being operational, I would give the management some to time to perform and deliver…may be one more year.
Auditor’s resignation is serious question mark and that too when FY-2017-18 is about to end. I just checked Auditors of Omkar is different from old auditors of LASA. Be careful, may be something serious wrong…
As per the latest Con call Mr. Omkar has said he will hold 36% of Lasa,after inter trasfer of share,As per the Dec 17 share holding patterns he increased his holding from 21.47% to 24.97%,and omkar has already informed he doesn’t know what Mr. pravin herlekar will do about his personal share ,he may dispose or he may hold, so what ever the news coming promoters are selling shares in the open market,its not an issue. in few month Mr. omkar himself acquire 36+%of shares, and fundamentally there is no change in the company,it will grow 25% know
Share holding pattern shown above is incorrect. After inter se transfer Mr Omkar’s share holding is at 31.28%.
This is what been communicated to exchanges for Inter se transfer. https://www.bseindia.com/xml-data/corpfiling/AttachHis/471e579b-6025-464f-a6ca-5a90f7d8cab6.pdf