The recent developments at Creative Newtech look interesting. I have a tracking position.
However, I have a couple of questions. I recently found that the company allotted a substantial number of preferential shares (400K equity shares and 600K warrants) for Rs 110. The approval from board was received on 1 July when the share price was around Rs 186.
Why was such a huge discount given? Is such low pricing even legal? Even if legal, such low pricing is against the interest of the minority shareholders. I am not very familiar with the regulations. Even though the company has notified a CA certificate saying that the preferential issue follows the ICDR regulations, I have my doubts. I would like to understand this issue.