Well those people didn’t look closely enough at Punj Lloyd’s IPO draft prospectus. There was clearly a lot of past history of delays in project execution. Many penalty clauses were invoked by PSU oil co’s on past orders. And then Mr Punj did get caught up in the ‘next LNT’ hype and bought outSembcorp Engineers and Constructors (Sembcorp) in June 2006 for 114cr. The rest of course is well documented downhill journey of past 6 yrs.
Bottomline: It need not be a big inorganic move that can trip up a co. Might just as well be a small takeover(with big hidden contingent liabilities!) without any duediligence.
