Add brightcom to it as well in this types of modus operandi. As mentioned, there were PW issued to many shady entities and sales rose and story of adtech, quantum and other rosy things were told to retailers and they bought in a whale in the form of SS!
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Adding another example to the list.
Eco Hotels and Resorts Ltd
Acquired by Suchit Punnose (Redribbon …).
Previously manipulated Modulex Construction Technologies Ltd using the same model.
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Dear Sir, Could you please elaborate on the fraud in Wardwizard food. Thanks.
Wardwizard food have some fast food and beverage related business. If they had listed their business via an IPO route, there would be some scrutiny and appropriate valuation would be provided. But they listed via indirect listing by acquiring a company and manipulating it’s stock price to absurd level, investors buying at high levels will be stuck till the fundamentals improve to that level.
They may be under reporting profits as Income tax department raised their group office few months back. Although no qualified opinion was made in the limited review by the auditor.
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Thank you that was insightful. Also wanted to understand why a company will under report profit? Saw some political big shots at the opening ceremony of Wardwizard innovations which has exactly same promoters as that of the food company.
To save tax.
They had manipulated it’s stock also price after buying a company named Manvijay Development Company. They have started dumping it recently.
Thank you. Came across a similar case Time medical company taking over a laboratory chemical company viz; Fischer Chemicals. Something unusual happening a Singapore based MRI machine manufacturing company entering Indian markets through a Listed company Fischer Chem that sell laboratory chemicals and totally unrelated to MRI industry. This reverse merger story is intriguing. Please share your thoughts. Thanks
When they will integrate their business with the listed company, sales and profit will jump in quarterly results. Market cap to annualized profit will give the pe. If it is reasonable then consider otherwise avoid these manipulated stocks.
Note: the business of the acquired company is not important and can be unrelated. The business of the acquirer will drive the valuation.
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Circular trade between add shop e retailer and white organics agro.
The primary criterion for investment is small company, in my opinion, is to examine the promoter’s stake. Avoid investing if the promoter is significantly reducing their stake, even if the company’s fundamentals appear strong and promising.
ASER - 27% from 63%
Surprisingly stock is still trading at 50 cr valuation. Indian retail needs lots of education…
Credit / reference: Twit from Dr Vijay Malik
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