Som Distilleries and Breweries

This a civilised forum & has no tolerance to uncivilised language & behaviour. Make sure you restrain your expressions.

I’ll say what I said to Manish ji Sorry Manish ji, I got carried away. I already apologised on the forum. Let me apologise again. Sorry.

But I stand by what I said. This company is run by loons and it deserves the PE it has atm.

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This seems a major red flag. Can we have views on this from other fellow members ?

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It appears that the situation should be considered alongside the July Rights issue, which was valued at Rs. 141 Crores at Rs. 275 per share. Additionally, it’s worth noting that promoters are consistently purchasing shares from the open market.

From this perspective, it seems like promoters are aiming to accumulate as many shares as possible at a lower price, using various means, including potentially questionable tactics.

While this news might not be favorable for existing shareholders, it does suggest that promoters have a high level of confidence in the future growth of the business.

Looking at historical precedents, similar occurrences in other companies have been overshadowed by sustained business performance. However, it’s essential to acknowledge that while this may impact the stock price in the short term, market outcomes are never guaranteed.

Ultimately, how one interprets this situation depends on individual perspectives and risk tolerance.

Disclosure: Invested

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I have written to company for clarification. will let you know what i get

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Looks like a lot of active shareholders raised the issue with the management and hence management came with a clarification.

But the important thing to note is- There is nothing in the clarification.! :stuck_out_tongue:

As per management, Company needed funds, so they decided to give company funds at 1/10th the Market valuation and Investors should be thankful to them. I don’t understand why they even came out with such a clarification.

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@Sanjeev_Bansal Yes it is disappointing. Because shareholders have issue with valuation of subsidiary(Woodpecker) not the infusion of funds.

Please help me understand

  1. if it is possible to add more fund on similar or little bit higher valuation leads to decrease in earning of the main company(SDBL) and reduce main company shareholding to 50% (or even less)?

  2. Company mentioned that it want to raise funds about 350 cr in Sept last year but it was not closed that time and again in Jan this year. Will above move be considered negative by institutional investor?

Disclosure : Invested and tracking.

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Promoters’ ongoing purchases from the open market may be seen as a positive development. However, these disclosures suggest a strategy to accumulate as much stake as possible, potentially at the expense of current stakeholders’ interests.

The question arises: Is it legal to acquire such stake at any valuation without shareholders’ permission? If so, promoters could feasibly continue acquiring stake in the future, even at lower valuations, without restrictions. Does the law permit such activities openly?

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Thanks @mendax2014 , this is a grown up forum. I dont mind using those words as it communicated to me cant trust the promoters so sell it. I agree when i look at it again. thank you for sharing and raising an alarm

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FYI.

After the founders failed to remit Goods and Services Tax in a year, they were arrested the next year. After they were released from jail, within ten days they donated Rs 1 crore to the BJP. The same year they gave another Rs 1 crore to the BJP as a donation.