Bhansali Engineering Polymers - An Import Substitution Story!

I did a shareholding pattern analysis on BEPL and found very interesting things. There was a group of real-estate companies kinda names holding a large chunk of BEPL in 2016. Together they held 4.24 Cr shares - i.e half of what the promoter then held. These holdings seem to go back quite a few years which makes me wonder if they were benami promoter holdings.

Over the course of time post demonetisation, these entities don’t have a single share and this 4.24 Cr shares are now held by

a) Promoter - about a 1 Cr shares
b) Retail - about 3 Cr shares

Promoter - all the buying was done in Dec '16 and Mar '17 when the price was around 25 levels on average - so it is fair to assume the promoter spent 25 Cr to buy these shares.

Retail bought the 3 Cr shares on the signal from the promoter.

Now if these holdings that sold out post demonetisation (might be an unrelated event but lot of interesting things happened during this unforeseen event, so it might be related) were indeed benami holdings then the promoter succeeded in distributing a rather large 3 Cr shares by just reshuffling some holdings to his name.

If these entities were not related to the promoter then I pity their wisdom in holding such a large chunk for almost a decade and then selling out just before a 10x run-up. If they were unrelated, how did they all decide to sell in the exact same quarter? I will let you all be the judge.

Disc: I bought and sold some BEPL last year without much knowledge while riding momentum. This analysis is completely post-hoc.

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