Worse part is the attitude of the PE firm Rabo Bank - When asked for comment on the audit, Rabo Equity managing director Rajesh Srivastava said: “No special issue for us as it relates to all minority shareholders.”
A good lesson learned for me is to completely stay away from companies having PE stake. They are short term oriented and care only for their exit irrespective whether the company is drowned in debt or does fraud or goes belly up in the future. As a big shareholder if they cannot keep the promoter in check then what can us minority shareholders do. PNB Housing finance is another such company where carlyle is a big shareholder - IPO price was around 1000/- and now its 360/-
Anyways I am stuck with part of my holding and let’s see how the forensic audit goes through. Hope the promoters of Prabhat are severely punished by SEBI for delaying sharing the proceeds and reducing value by booking fictitious losses, high transaction charges etc. My reading of the promoter was completely wrong and all their justification of sharing the proceeds in a tax efficient way, bringing independent shareholders to board, keeping the proceeds in escrow, multiple stock exchange filings re-iterating their intent to share the proceeds etc was a complete hogwash.