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Oh so 5 % more has been depledged on 4th or 5 th Nov . So it could mean that 63 % reported include this 5 % . This all disclosure is very confusing .Need to talk to management & clarify whether at all 5 % has been sold by management or not .If any one has got any clarification from management pls share .
Clearly, shares have been sold by the promoters. Look at the 1st line of the 2nd para of the covering letter itself - “The proceeds from the mentioned sale of shares…”.
thanks for clarification ,exited all my position don’t trust them now.
Hi Vicky, have you talked with Mr. Pravin Agarwal?
Their finance function and CFO has been lax no doubt and not just on this occasion but multiple times before as well. What I am not able to build conviction is on promoter ethics, they seem simple and humble however maybe too much technocrats that they cant see where their cash flows are heading. Can we still give the benefit of doubt and give a chance to explain in the next concall. We must remember promoter selling shares at these prices is a loss to them as well if we believe stock is undervalued assuming liquidity to improve. They have mentioned before it take time to de pledge due to contractual issues and maybe they thought they have enough before to completely de pledge. Not justifing anything but important to understand if there is enough margin of safety at current levels.
Discl. Invested sold 25% today
Talked to the CFO. Didn’t get answers to my satisfaction.
Have exited the stock entirely today.
What did he exactly say?
Hi Vicky, could you please share the summary of your discussion
was saying that earlier sum gathered for depledging was used for working capital requirement as the banks have delayed lending. And said they had to sell more for depledging.
Please do not rely on telephonic conversations by me or anyone else for your buy/sell decisions as there is no written things involved. Rely on your own conversations with IR/CFO or on company’s official communiqué.
I talked to him harshly saying isn’t this a breach of trust when you (Mr. Harlekar as well) say categorically that no more promoter stake will be sold and why couldn’t they remain non-committal earlier.
Complete U turn , From last conversation in oct where they denied any further selling to "we are going to sell more " complete hypocrite they are.
From IR understood that they are going to have a conf call tomorrow around 11:30 AM.
I had a call with Pravin Herlekar today. It took me some time to register in his mind that their actions have damaged the investor trust. He is still thinking that whatever has been done was debated at board level and then this course of action followed for the betterment of company and so it should not be a big deal etc. I told him he has lost the trust of investors now and I don’t know how are you going to regain that trust. It was very depressing call.
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Press Release.
http://www.bseindia.com/corporates/anndet_new.aspx?newsid=68fe6bb4-0b2b-4835-8a36-7176b7b56239
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Thanks Girish.
I am waiting for the quarterly results and future de-pledging to take call on this stock. Press release at least says that going forward they will maintain majority 51% stake. Hope they stick to it this time round.
disc - invested
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On a lighter note, black humor on our investment
“Stock goes up & no questions on company as well as promoters. Stock goes down & all kind of doubts emerge”. #StocksPsychology from twitter Pankaj singhal
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They had to sell 11.5 lacks share to depledge around 23 lacks shares…does it mean they will be selling again to depledge the remaining appx 35 lacks shares…I meant if they didn’t have money to depledge now they may not be having in future as well to depledge the remaining
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I am told another 19 Cr funds needed to pay back the loan and release the remaining pledge. 27 CR from July sell-off are still with the company but that is parked in WC. Need to ask them if they will be able to use this 27 CR to depledge remaining shares.
Poor corporate governance gets ignored when stocks and markets are going up…but can come back to haunt badly during corrections.
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Now can we safely say that there was no malicious intent behind recent share sale and it was probably the most preferred option considering the situation? Or would it affect the fundamentals of the company?