Will try to answer to the best of my ability
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The Chairman and MD are important but decision making is mostly decentralized, power is given to the branches to make loans and check collateral with an supervision and reporting happening from top management, I think it would not be accurate to say this is a one man show, I think top management instills culture which is their most important job, if you were working in a company where you knew that the promoters do not earn a salary, what would that tell you about how much they would be respected, this company got listed in 1995, promoters have been hale and hearty for 21 years, lets pray for their continued good health
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I am very sure they have other sources of income, they have been using their personal funds to grow the business with no outside capital, I do not think this would be possible if they were not cash rich, it is not as if the salary is negligible, in the words of the finance manager I interacted with, promoters do not take even one naya paisa as salary since 1995
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below is the list of large public shareholders and their basic profiles -
Amidhara Agencies Pvt Ltd - this is a promoter family owned company - 4.98%
Fineotex Chemical Ltd - this is a listed company - 3.64%
Sharda Gupta - Large successful HNI Investor - 1.72%
Dhiraj Valji Khaniya - Mumbai based Gujarati Businessman - 1.2%
Minal Agencies Pvt Ltd - Investment company of Mumbai based Manoj Jhaveri - 3%
Tenet Bio Pharma Pvt Ltd - Mumbai based pharma player - 1.18%
Jainam Share Consultants Pvt. Ltd. and Choice Equity Broking Pvt Ltd - Gujarat and Mumbai based stockbrokers holding shares on behalf of HNI Clients - 1.1% and 2.5% respectively
Some might be related parties, some might not be, but most of them are Gujaratis based in Mumbai
I would like to point out one thing, to you and me this is a new company but looking at the way outstanding shares are held, this is a discovered company for the smart desi kind of money, I have seen this pattern play out over and over again where almost all of the free float is held by local guys who might be known to management or who might have the kind of insights we could only hope for, this to me is a very strong positive signal of pedigree
I want to point out an interesting stat
As of June 2015 Promoters hold 51.39% of the shares
As of June 2015 Public Corporate Bodies hold 24.36% of the shares
As of June 2015 Public Shareholders with more than 1 Lac Amount hold 15.54% of the shares
As of June 2015 Public Shareholders with less than 1 Lac Amount hold 8.71% of the shares
As of September 2011 quarter
As of September 2011 quarter Promoters hold 46.89% of the shares
As of September 2011 Public Corporate Bodies hold 11.99% of the shares
As of September 2011 Public Shareholders with more than 1 Lac Amount hold 10.34% of the shares
As of September 2011 Public Shareholders with less than 1 Lac Amount hold 30.77% of the shares
What has happened is that smaller stock holders have got sucked out and replaced by larger shareholders, this is a very eye opening thing, smaller less informed and less sophisticated investors being replaced by larger, more informed and more sophisticated investors
Smaller Lot shareholders declined from 30.77% to 8.71%…Wow