i mentioned prior to exit of IFC MOL was having 57 % and promoter 18 % and IFC 25 % =100%
How MOL is having 82 % here ?
This should be 724 cr to 210 cr
Bottom line: MOL promoters have shown disregard for minority shareholders
If they really donāt want to increase stake in commodity cyclical business which is MFL where MOL holds 57% stake, what would be an ideal decision ?
Who should be allocated these 25% stake if not promotor ?
Can they sell it to some new investors and get the money and put it back into MOL ?
If they really donāt have any option ,promotor could have paid money to MOL for buying stock.
They have clearly did a unethical work which may be legally correct but how it will affect the minority shareholders mindset? Will they forget or will they dump the stock is a real question .
It was one of my high conviction and high weightage stock and I am currently in loss ,thatās why I am not selling the stock thinking shareholders will forget and will buy taking advantage of dips . If It start falling another 10% I have to sell the stock irrespective of the companys performance. Further after this incident it will not attract new investor.
Forget it many people are already gave exit decision and i dont think this is right of what they have done to minority shareholderās. Listen to the concall and they did disconnect the call while asking questions in between and how do you feel ? atleast iām not happy the way the call went.
Disc :- Exited.
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How is it possible that promoters can increase their holding in MFL without paying anything against these 25 % shares. Also in case MAL is merged with MFL and common shares holding i.e. 25 % held by MAL is killed the promoters holding post merger will be even than 24 % and not 42 % . Something seriously fishy and shared with the minority shareholder , a clear case of 420.
How 82 % ? MOL is giving money as loanā¦nt buyng 25 %ā¦ giving money doesnt mean buying alwaysā¦please read my post once moreā¦ how then original 57 becmes 82 %?
Simple logicā¦ ifc require 221 cr to exit their 25 % stakeā¦ Where this money came in the end? Mfl cash ā¦whose stake increased by 25 % ? Mol? Or promoters? Its promoters? Did they pay this amount from their own pocket or by taking loan frm bank? Noā¦ They cleverly devicedā¦ I appreciate this puzzle moveā¦ But stil people r expectng to believe the oppositeā¦ if promoters had increased their stake using their own capacity stock wudnt have fallnā¦or if mol stake had become 82 % from 57 % stock wudnt fallā¦
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Its a clear cut case of cheating with the minority shareholders.
There was no satisfactory answer from the management - neither in the conf call (was part of it) and disconnecting calls of the investors asking questions was really bad. Nor Mr Ashish Soparkar was able to answer the queries asked at CNBC for clarity.
Disclaimer: Exited.
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Digged down more and found below:
Updated: Jan 12, 2012
The executive director of a city-based manufacturer of pigments and agrochemicals was arrested in an import scam on Wednesday. Directorate of Revenue Intelligence (DRI) officials arrested Ramesh Patel of Meghmani Organics in a more than Rs 4-crore duty evasion case.
Read more at:
And he is still a Director:
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I hope this video will provide ample clarity on this matter. https://youtu.be/ux8y1j839lo
Disc- Invested & plan to add more.
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This is what i do not understand. The devaluation of MFL happened only because promoters stake increased from 18% to 43%. So ideally this 211 cr should hv been paid only by the promoters. But instead it is MFL that is going to pay this amount. i.e. as per the percentage distribution, 57% of 211 will be paid by MOL to MOL , and 43% of 211 by promoters to MOL.
Donāt you think you should have brought this earlier before investing rather than at the time of any negative event. Alarm bells should also have been raised when the stock price refused to respond to good earnings. Market certainly knew their shenanigans. This is an another accident that reminds us that large universe of stocks is simply uninvestible however attractive their fundamentals might be.
DIsc: No interest
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The person says he is assuming thingsā¦ He made this video before MOL managing director came on CNBC to explain on the mfl stake issueā¦ Please checkout that video tooā¦
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one can even notice the call being abruptly cut off.
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I also dont understand why issue debt at 8% for 10 yearsā¦ Should be 10% minimum.
If they were using their money in MOL, then atleast that stake should have reduced right.
This would have made sense if promoter stake in MOL reduced.
But their stake in MOL has remained constant and stake in MFL increased. This doesnāt make sense.
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Yes, ideally should have been 76%, 24% approx.
Dear
This video was made last night much after the MDās interview on cnbc. Video has two parts. Please watch both again. The main point which wasnāt discussed either in the concall or in the interview is that at the time when IFC was brought on board there was an agreement to give them exit at a fair value after certain period with the condition that promoters will reserve the right to buy the same number of shares at the time of IFCās exit at a price at which it was issued at that time ( i.e. Rs 30) instead of the current prevailing price. Now this may be interpreted in various ways. But to me I see it as a fees paid to the investors for bringing IFC on board in the first place and then build a company and bring it to a position at which it is today. At least they are upfront about it and have come out openly. I still see a long runway ahead for this company and donāt feel management is in the same category as that of Manpasand/Vakrangee etc. It is my view after having gone through all the details available in public domain as of now.
In short promoters bought IFCās share for Rs 221 Cr by paying the same amount to Agrochem Company. (which is 100% subsidiary of Meghmani Organic). There is nothing wrong in it. Promoters have paid the consideration. Where is the cheating? The other part of NCD of Rs 211 Cr will be paid over a period of 10% year @ 8.00 Interest. This was the same rate of interest at which the NCD;s were issued to Agrochem company. On merger of Agrochem and Finechem, the merged entity will pay Rs 211 Cr over a period of 10 years. I do not see any cheating here. If tomorrow the merged entity does not do well being in cyclical business, the parent company Meghmaniās exposure would be only 57%. If the merged entity does well then promoters would sell their acquired stake of 25% at a profit and that fund will be used by promoters to increase its stake in parent company Meghmani. I feel that the deliberate confusion was created by some vested interest to buy Meghmani shares at lower level, I will increase my holdings as the company has a great future.