Disposal ( off market ) of 25 lacs shares by the promoter yesterday.
It is a donation to their charitable foundation. Not a sale.
Well this is one of the things that makes me a little nervous - the foundation is completely controlled by the same management. Once donated, who is going to monitor what happens to the money - also these shares will be making their way to the market and pressure the share price
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Well you say this is a positive that there is no FI/DI holding since the stakes will go up. However, what if the company is not passing the due diligence filters of the FI/DI- it would make me nervous to see there is no FI/DI holding at all
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Just checked on screener.in
FII - 0.19%
DII - 0.44%
holdings in July 2024.
Please do re-check and share latest facts.
An interesting update on Avantel.
I’m surprised that there was no company announcement on the exchange.
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Even I was surprised and was about to post the same. One of the 3 companies shortlisted is a big achievement and yet no announcement formally on the exchange.
Thats what is good about the management and promoters, shows they are not interested in PR campaigns. Compare this with companies like Sealmatic, see the type of press release they make just to keep people interested.
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New order received:
Rs.44.49 Crores from:Larsen & Toubro Limited for Supply of Satcom Systems
It’s a substantial amount almost revenue of a quarter
LT Order.pdf (578.7 KB)
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RIGHTS ISSUE
Raising of funds by way of issue of equity shares of the Company of face value Rs.2/- (Rupee
Two Only) (‘Equity Shares’) each for an aggregate amount not exceeding Rs.49,70,00,000/-
(Rupees Forty Nine Crore Seventy Lakhs Only) on Right issue basis, on such terms and
conditions as may be decided by the Board of Directors of our Company to the eligible equity
shareholders of the Company, as on the record date (to be notified subsequently) subject to the
receipt of applicable regulatory, statutory approvals, in accordance with the provisions of the
Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements)
Regulations, 2018, Securities and Exchange Board of India (Listing Obligations and Disclosure
Requirements), Regulations, 2015, and the Companies Act, 2013 and the rules made thereunder,
as amended from time to time, (‘Rights Issue’);
The detailed terms of Right issue including the procedure for applying in the Right issue will be
specified in the letter of offer which will be sent by the company to the eligible shareholders
holding equity shares of the Company as on the record date in due course.
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amount they intend to riase is peanuts, they could have raised it as debt from banks easily, my sense is there is something else happening in the background, time will tell.
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Their debt is negligible and maybe they chose this route to keep it that way.
the cost of equity is greater than cost of debt so I would like to believe this is not a simple rights issue, there may be something else happening in the background which we will come to know when management discloses it.
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U.S. sanctions 398 firms across countries including India, accusing them of helping Russia’s war effort
Avantel is NOT part of the sanctioned as far as I checked.
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Great work - Does it update even now ??
DEAR ONES,
ANY IDEA ABOUT THE RIGHTS ISSUE STRUCTURE? IT IS ALL AT ONCE OR IN INSTALLATIONS. IF THE PREMIUM IS HIGHER THAN RT. ISSUE MAY FLOP. KEEPING MONEY in RESERVE to subscribe. hope for a happy Landing
RAJAN
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Sale of 2.07% of shares in open market from the complete promoter entity (Not an individual person but the complete promoter group). The promoter holding is down from 40.87% to 38.80%.
Normally the selling of shares is not a direct bearish or in-confidence sign for a company (as stated in books), but for a company in a major growth phase and market cap of 4000 crores, reduction in promoter holding demands more research.
Probable reason of opex or green/brown field expansion can never be strike off the table.
Absence of con-call makes it tough to monitor this situation.
Requesting fellow VP members for more insights.
Discl. Invested from lower levels
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Did you find anything on this? It’s down further at 130 levels now and looks like an interesting buy to me.
I tried to dig but wasn’t able to find anything substantial. Lack of con-calls is a real thorn in this bush.
Another one thing which has recently started popping out is the increase in trade receivables compared to revenue growth. Again, nothing fishy on its own but answers / reasons for this would have been encouraging.
Q3 results were encouraging with good expansion of margins and revenues.
Overall bullish on the company and the contract wins it usually scores / scored.
Technical Analysis - The chart looks to be taking support at the previous consolidation levels of ~130 around. To run again, has to break 150 with decent volumes.
Discl. - All views are personal. (No recommendation) / Invested as before.
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