Are you sure you received this reply? I fail to understand how promoter would repay loan by selling his shares to then liquidating company’s debt. After receipt of the payment from share, they can advance that money to company to liquidate debt technically, but appears too good to be true in these time. Advise further investigation on the matter.
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Why they are denying on Amarnath Securities now?
Disc: Not invested… Actively Tracking
I telephoned the customer relations - the Chief Financial Officer and Chief Investor Relation Officer (CIRO) Mr. Pravin Agrawal (07767806002) 2 minutes back -
http://www.omkarchemicals.com/investorscontact.html
My questions and his answers -
the reason for selling - depledging
extent of selling (from 58% promoter holding in last disclosure) - most of the selling is done. Will be completely done in 2-3 days . Promoter holding wont go below 55%.
pledging will go down to what level from current (80lac shares) - it will go down to 30 lac shares. As soon as funds from selling the shares are received (in T+2 days of selling) , they will be payed to the NBFC and pledging will be down to 30 lac shares.
Disc: i hold (bought today as well)
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Thanks a lot for this info.
They are not denying on Amarnath Securities. They are saying it was personal preference of Mr. Omkar and company has no connection in the open offer.
Thanks for your reply… appreciate it
Press Release out… They are transperant and this is good
Disclosure: Initiated position yesterday. 5% holding
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Heavy selling today, confused whether to add or sit tight. Difficult to take a call on liquidity problems however strong business fundamentals.
Discl. Invested
the shares are trading at 148/- sudden drop . i think the promoters sell the shares for releasing the pledge. what of the the impact of it.? please any suddestion
disc; invested at 156/- per piece
there can’t be better time to enter this stock…
no doubt…it should be done slowly and steadily… because we don’t know what the bottom is… hopefull this week is last for promoter selling stake…
and there will be trading window closure during result announcement… at that time this can bounce back sharply…
As of now… nothing negative till the results have been out
IMHO… selling of own shares to unpledge exemplifies the promoter’s conservative attitude. It’s a plus sign for me on the management front.
DISC: Initiated position today by nibbling a small amount. Shall keep track on the results.
Called up Mr. Pravin Agrawal again. Asked why did they not go for equity dilution for debt reduction. Mr. Agrawal replied they were not able to find suitable investors for the dilution and said this has been communicated earlier (did they communicate in concalls? i havent heard all of their concalls.) and so the promoter decided to do stake sale for the same. He reiterated that stake will not go below 55%.
Disc.: Bought today as well. 3.8% of PF now with average buy price of ~155/-.
What’s the exact stake after yesterday’s press release… and 80L still remains pledged right?
I had called up arnd 2 pm.
On being asked about the sudden price drop and the current stake, he said he wasn’t aware of the sudden price drop, said one should not worry about short term moves which will settle down and said the investment would be fruitful in long term. Said the stake should be around 57% ( I believe he would not be knowing the exact figure as he is not the one who is offloading at the moment, it’s the promoters)
I did not ask about current pledging.
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en[/details]On being asked about the sudden price drop and the current stake, he said he wasn’t aware of the sudden price drop, said one should not worry about short term moves which will settle down and said the investment would be fruitful in long term. Said the stake should be around 57% ( I believe he would not be knowing the exact figure as he is not the one who is offloading at the moment, it’s the promoters)
I did not ask about current pledging.
how did you get to know about this
How many times these services have been correct in the past? I believe these calls are for short term. Not for long term, anyways. He invested on his own conviction. So, I think he is going to stick with it.
On being asked about the sudden price drop and the current stake, he said he wasn’t aware of the sudden price drop, said one should not worry about short term moves which will settle down and said the investment would be fruitful in long term. Said the stake should be around 57% ( I believe he would not be knowing the exact figure as he is not the one who is offloading at the moment, it’s the promoters)
I did not ask about current pledging.
I want to know how the pledging mechanism works. My understanding is that the promoter pledge his shares to an NBFC and borrows money. How will these funds flow back to the company? Is this activity happens through privately held holding company, which does the pledging and lend the money to the main company. How much difference it will make if the company borrows directly from the market vis a vis promoter lending the money to the company. Is it not a related party transaction? what if the promoter tries to make money out of this whole exercise. I am not sure whether I got the entire concept wrong or missing some link here. Can someone kindly explain, thanks for your understanding.
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