I think the encumbered shares (722000) will be reflected as public shareholding. However if you add this to promoter’s stake then the total will be around 51%
Your calculation is correct. 722000 is 3.51% holding. 47.53+3.51 = 51.04%
But does that mean promoters haven’t sold their shares?
Edit: Obviously the selling has happened in January not December.
From the latest filing http://corporates.bseindia.com/xml-data/corpfiling/AttachLive/6096C5E2_304D_487F_B828_E9FF16C30762_182016.pdf
Pledged/encumbered shares of 4672232 (Row C in the image) would
include encumbered shares 722000 which is not being reflected in promoter shareholding
as of 31 Dec 2016. (722300 + 3949932 as of 31Dec SHP on BSE website = 4672232)
So after internal transfers, pledge release, and pledge of
888000 shares, to me, it seems almost certain that the promoter shareholding
has come down to 47.25% (Grand total in the image, last row last column)
Now, this does mean that promoter is trying their best to walk the talk but probably failing somewhere. they had to pledge 888000 again (to another firm - Reliance Sec as per one of the disclosures) so it could it mean that company maybe facing w.cap issues to some extent? (demonetization impact, slow receivables etc?) I would however take it easy if some slippage from target deadlines happens (as always expected in India) as long as the direction is right.
It maybe prudent to wait till results and the concall. I would wait till then to assess further add-reduce-sell decision till then will hold onto current position.
More shares have been de-pledged http://corporates.bseindia.com/xml-data/corpfiling/AttachLive/2DF6054C_7B2C_4237_A112_53E67804960D_104255.pdf
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No this is the filing for the transaction happend on 17 from the financier side.
This would have been already accounted from Omkar in their filing on 17
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Guys,
It is now clear that the promoter holding has come down to 47.25%, check below link as per insider trading disclosure :
http://www.bseindia.com/stock-share-price/stockreach_insidertrade_new.aspx?scripcode=533317&expandable=2
lets wait for another concall from the company and there explaination on this…till then hold…no further buy or sell.
My 2 cents. If promoter is not seeing value at current prices to hold the shares, I would stay away. Business may look good on paper but no one knows better than promoter. Raju had pledged/sold aggresively in Sathyam prior to the disclousres. We may miss few good opportunities but capital will be preseved.
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Hi, I just got reply from CS. Following is the reasoning given,
- Demerger in advanced Stage. Will conclude by end Feb / march. So before this need to depledge shares. Also pledged fund is high cost.
- Delay in tying up funds from banks.
My thought: this issue due to downgrade done earlier of Omkar. - Hence no other option than sell.
- Promoters can increase holding later.
So we can wait till con call and later decide.
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Dear Abhi. Thanks for following up with the company and updating all of us. Good stuff 
@giridesh3 @paresh.sarjani1 and @Hocuspocus32 http://corporates.bseindia.com/xml-data/corpfiling/AttachLive/EA2DDA0F_9D5C_4A99_B85F_DB1845FC7553_175816.pdf
"Release of Shares" update filed.
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Like abhi_2000, similar reply from the CFO. (brackets denote my comments)
To reduce high cost NBFC debt, since bank tie-up was getting delayed, promoters brought in money by share sale as unsecured loans
(ready to buy this point)
“The promoters can increase their stake in due course of time by subscribing to convertible warrants, etc. at appropriate time and consolidate their stake in the Company.”
(does it mean EPS dilution possible in future?)
“Reduction in the pledge / encumbrance has relieved the promoters from the risks, if any, arising out of volatile market conditions”
(can somebody please explain what they mean here? does it mean that margin call or forced sale risk is reduced?)
Production at Unit-V may start in FY 2017-18.
(ok, still waiting)
We are not planning to raise any big ticket capex (except the capex for regular maintenance, balancing equipment or debottlenecking of capcities) or any more borrowing by way long term debt
(ok, Q3, Full year results and con-calls should help)
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Full response…
As you are aware, the total number of promoters’ shares under pledge and encumbrance were 4672232 numbers (22.70% of Paid-up Capital) as on 31st December 2016. This has now come down to 2818232 numbers (13.70% of Paid-up Capital).
The promoters have been mentioning that, de-pledging of shares was their priority before the implementation of Scheme of Arrangements. The status of the same is at fairly at advance level and it is likely to be concluded by end February 2017 / March 2017. Hence, it is all the more important to reduce the pledge / encumbrance at the earliest.
De-pledging is also important from the point of view of reducing the cost of finance since most of the pledge is done with borrowings from NBFCs at fairly high cost.
As we have been discussing during concall, there are two options for effecting the same:
(i) By way of arranging suitable funding from banks for replacing the high cost debts.
(ii) By way of raising money by sell of promoter’s shares.
Considering the delays being witnessed in tying up with the Bank Finance, the management has decided to get this exercise done by way of sell of promoter’s shares.
The promoters have brought in money in the Company by way of sell of shares which is reflecting in the books as unsecured loans from the promoters. The promoters can increase their stake in due course of time by subscribing to convertible warrants, etc. at appropriate time and consolidate their stake in the Company.
Reduction in the pledge / encumbrance has relieved the promoters from the risks, if any, arising out of volatile market conditions.
We hope the above clarifies your queries.
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@amilshah264 @karthikprasadv Excellent follow up’s. The management is to me simply amazing. They keep reinforcing the fact that they are an “exceptional management”. Best.
Ha Ha… Seriously… They waited over the weekend to draft the mail… Nice PR you should say
Yes. Seriously. If you see very in a simple way, the same people who you might think are doing “PR” have grown the top-line from 23 Cr in 2007 to 413 Cr in 2016 and are held in very high esteem by some very high end and complex pharma companies and by at-least some of us. I see people keep on questioning them for various reasons; most of who may not have even close to 400 Cr of business capability or ability to understand what it takes to grow like that when in management. There are other logic’s like still paying dividends etc… Anyhow, we will all watch this play out invested or not . Good research though, and good to be skeptic, but I think at least, not when there is no reason to be one.
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The statement… I see people keep on questioning them for various reasons; most of who may not have even close to 400 Cr of business capability or ability to understand what it takes to grow like that when in management… looks like a personal attack. If that is the case, everybody need to be entrepreneurs… The reason everybody is skeptical is they are not able to walk the talk for sometime now… You know who typically doesn’t walk the talk.
PS: Invested
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Dear Karthik, If you felt that my words were personal, I am truly sorry for my poor choice of words and I apologize. Have a wonderful evening. Best.
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No props. Lets move on. We are all here to learn, discuss and seek counter views.
Is there any concall being planned. Any announcement on result date ?.
When i called up CS, they were not reachable,
Mail fm co… Results around mid feb. No date specified
One more disclosure today…promoter holding 47.25 to 45.25%
whats going on with the company…Its seems a great value bet but promoters are not professionals 
Any senior members girish, saran, vishnu, hitesh your views on the same.
Disc : Invested