Again they have pledged shares…first released 37 lac shares from smc moneywise and catalyst financial…now pledged 39 lac shares with bhadani financial…total 48% of promoter holding is pledged…any comment…
Frequent acquisition and disposal of shares by promoters is a sign of price manipulation. Their short term debt obligations are higher than their cash flow which is the reason for share price down.
Check the recent disclosure at bseindia website…First they released 37 lacs pledged shares and now they pledged again 38 lacs shares in order to raise 10 cr for bank guarantre for aquisition of coal mine.
What I don’t understand is can’t they raise 10 cr non fund facility from a bank instead of going to NBFC and pledging their shares for 10 crores. Is their credit profile that poor??
" Their short term debt obligations are higher than their cash flow which is the reason for share price down."
Can you please explain how their cash flows are less than short term debt obligation.
For ex H1 EBIDTA is Rs 184 Cr. an Long term debt repayable in the Current FY 2019-20 is only 74.34 Cr. Finance cost for the whole year will be around Rs 85 Cr. The long term debt is also around Rs 450 Cr only.
I do not foresee any liquidity issues in the Company.
Further with reference to Pledge of shares for non fund facility, as per my knowledge none of the NBFC give Non fund based credit facilities and the generally Government department accept Bank Guarantees only from Public Sector Banks.
In view of the better option now available to the company under the changed mining policy of
the government and keeping in mind the past experience of coal mining, the company has
decided to participate in forthcoming auctions of coal blocks available under commercial
mining policy and not to proceed further in case of Bhaskarpara coal block as the same is
available under captive mining policy.COAL MINE PRAKASH.pdf (579.1 KB)
As expected Prakash has left the bhaskarpara mine that it won in previous block of bidding. Now with new mining regulations it will bid for newer mines where it can sell the extra coal.
Steel demand is picking up…
Look at price chart for TMT BILLETS up by almost 10% in a month…and 20% since last 3months…
And Prakash industries promotors also showing some confidence in the business by warrants and pledge released…
Even its cyclical sector and promotos have some bad history it could be trading bet with negligible risk !!
Does this have any impact on Prakash Industries? Company gave a press release today saying they have achieved highest ever Steel production and power generation.
Prakash Industries has been granted in-principal mining lease approval for mining of iron ore mineral over an area of 274.896 Hectares in District: Kabirdham (Kawardha), Chhattisgarh for a period of 50 years by the Mineral Resources Department, Govt. of Chhattisgarh. The order dated 17 February 2021 was received by the company on 19 February 2021.
Can any body advise how much time the Company will take normally to start mining operations from this mines. Are there any additional approvals also need to be taken to start mining.
The Company had been in news in past due to its poor Corporate Governance but one thing to notice is that there had been no new instance of such kind during last 5 years. Coal block allocation and other Coal scam related issues where CBI probe is still continuing are issues which are more then 10 years old.
Has any body idea of pending cases against the Company and what is the present status.
Albeit in small quantity, promoters have purchased shares from open market continiuosly during last 8 trading sessions
