The chances of revival are becoming bleak day by day. Both Indiabulls Housing and Lakshmi Vilas Bank investors stand to lose in current scenario. Promoters will still go Scott free as always.
If Indiabulls Housing is looking for a banking licence in order to get low cost liability, then they should look for a better partner than Lakshmi Vilas Bank. This bank might bring more headache to Indiabulls Housing than just the low cost liability benefits. Or is it that Indiabulls Housing is very desperate to have a merger with ANY bank to hide their own NPA and corporate governance issues.
I think Indiabulls Housing should just drop its plans to merge with this bank, focus on its own business and look for banking merger opportunity in future if any good prospect comes.
Disclosure: I am invested in Indiabulls Housing for 3 years now and this is most worrisome holding in my portfolio.
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There is no smoke without fire. This is a failure of our legal system, regulators and administrators. I will take this as a price to pay for the much needed cleanup. Let’s be clear that there have been many attempts to expose the group but it has not succeeded. No investor can leave himself out from the eventual blame game when it actually implodes. This liquidity issue is a very potent one when mixed with corp. governance concerns.
Better be safe than sorry
Was invested for long time but sold out recently
Indiabulls Housing, group companies tank following probe order
Indiabulls Housing, group companies tank following probe order
Earlier Ibulls group replied to exchange on every point but surprisingly this time not yet.
A questions to ponder on.
Why and Who is targeting IBHFL in this fashion? Who are the real people behind this. Looks very political to me. All previous allegations in the past few months were hoax and with malicious intent.
Is IBHFL the only company (if at all) with corporate governance issue. What is the intent behind the chase to prove the criminal intent of the promoters.
There are hundreds of companies with worse corporate governance. Why is this company being targeted in such a fashion?
Why has this targeting started only after merger with LVB was announced?
There is clearly someone (has to be political) who does not want the merger or there is a bigger malicious intent to destroy this company.
So far IBHFL has not shown any signs of financial distress. Is there going to be a solvency or liquidity issue in this company?
The media stories in this company has been a fantastic opportunity that short sellers are feasting on. Todays stock price does not have any relation with the performance and balance sheet strength that is available in public domain.
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https://www.smartkarma.com/insights/bailable-warrant-issued-against-icici-bank-ceo-sandeep-bakhshi
Bailable warrant issued against Sandeep Bakshi for falsely putting an employee in Jail. An employee that acted as a whistle blower against mis selling by ICICI.
A question is raised if Sandeep Bakshi is a fit and proper person to to run ICICI.
Is there not a corporate governance issue? Where are those targeting IBHFL not concerned with this subject?
Something to think about why is there a witch hunt in IBHFL?
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Pointing fingers at another group / person does not make the problem / issues in IBull group go away. Investors should be very careful when dealing with groups / promoters where there are major concerns.
IBull has had allegations of wrong doing from 2014 with the Veritas Investment Research case, which was covered quite extensively even recently. Better to be very careful about such behaviour from management.
There are thousands of companies in the market and one can invest happily in others where there is no major headline grabbing issues of corporate governance.
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Even if there is no wrongdoing in this company, it is going to face a situation similar to DHFL’s. Banks and other investors will stop providing funds to Ibulls, so it will have to depend on internal sources to meet its obligations and balance sheet will keep shrinking.
It is amazing to see how often murmurs about corporate governance turn out to be true if not immediately few months or even years down the line. Yes Bank, LEEL and India Bulls are a few examples I can think of. Even before looking at the numbers CG should be the first filter. Trying to determine if someone is trying to drive the price down deliberately is a futile exercise, because you will never know and there is no way you can profit from it.
Old articles but more relevant today.
VERITAS REPORT ON INDIABULLS india bulls - bilking india.pdf (2.7 MB)
https://www.newsclick.in/The-Maze-of-Political-Links-of-Indiabull-Sameer-Gehlaut
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| Update |  |
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| Exchange Received Time 01/10/2019 13:16:54 Exchange Disseminated Time 01/10/2019 13:17:04 Time Taken 00:00:10 | ||||
| The Delhi High Court today issued notices to Prashant Bhushan on applications filed by Indiabulls Housing Finance Ltd for Perjury and for dismissal of the PIL. Taking a serious note of the apparent perjury committed by Prashant Bhushan the court directed him to file replies within 10 days and has listed the applications for hearing on 24.10.2019 on which date the court will also consider the application filed by Indiabulls Housing for dismissal of the PIL. |
In its application to the Delhi High Court, Indiabulls Housing had submitted along with proofs that the PIL has been filed with distorted and fabricated facts with the sole objective of misleading the court to issue notice on the PIL, create a continuing overhang of the PIL on the company and thereby causing damage and financial loss to Indiabulls for fulfilling ulterior motives. For further details, refer attachment.|||
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Very interesting. Never seen a company accused of corporate governance issues, seeking pre ponement in court hearing to disclose its allegedly cooked up books. Must be something unique about this company.
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RBI rejects merger
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When the first time swamyji made allegations against indiabulls promotors i warned all the small shareholders to get out of it…
But moderator dont like my view and delet the post.
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Outcome of board meeting -on buyback
This buy back reminds me of announcement of buyback by PC Jwellers(where the buyback was not approved by the lenders). Indiabulls buyback is subject to approval by lenders. There is no discussion on approval from Banks.
Banks are presently treating the loans of Indiabulls as stressed (not NPA) asset and would never allow any buyback in Indiabulls untill their loans are paid back…
In my opinion this is a just a gimmick. Future will unfold the truth.
Disclosure : Not invested tracking just for learning
10 Likes
On one side the company is not lending to new/existing projects due to liquidity issues. Further as per market sources the company is pressurizing for prepayment of existing loans where it has lended. The company will not be able to raise fresh equity in future, then why the company is playing this gimmick of buy back