What if some company takes it over? Is it possible? If they buy stake from all the financial companies?
Based on the disclosures submitted by Geeta Bhatia yesterday, the following is the calculations I did on promoter shareholding pre & post pledge (refer to table below)
Note: Would request someone to validate the above data.
So post additional pledge in meeting extra margin requirements for their earlier loan (based on pledge), they seem to hold only around 2.5 million shares. But they have sold 4 million shares yesterday.
Did this mean they released some of their pledge already ? and they may release remaining with the sale of shares now ?
Another interesting thing is that they have pledged almost around 205 crores (as of yesterday’s share price) for their initial loan of ~65 crores.
I believe RBI mandate is atleast twice the cover and may be finance institutions wanted much higher coverage post the way the stock fell in the recent past ?.
I’ve more questions than answers now and I hope Rajesh comes out to clarify his stance post the stake sale.
Consolidation with Zee Learn ? …Look at latest outcome of board of the meeting !!..How do we read this news ?
Now this explains why promoters sold their stake yesterday
The news on consolidation could also mean a sale of TreeHouse K12 business to Zee learn. This could be a big positive.
Until details of this ’ consolidation ’ are fully disclosed we will be in the dark.
Zee has financial muscle, and treehouse appears to have execution capability. K-12 business of Zee Learn (Mount Litera) is much bigger and covers almost entire length and breadth of country. If K-12 segment is transferred to Zee Learn, and Kidzee is transferred to treehouse; it can be a great arrangement. Yesterday Zee Learn promoters brought 10% stake from treehouse promoters, thus it appears that Zee wants strategic stake in treehouse. Looks good for the business of treehouse… if any hostile attempt is there (looks unlikely), it is good to be with the company being acquired.
Rajesh, pls put up a source link for this info.
VP is not the platform where you should expect people to come and guide on what to buy and what to sell, it is not a recommendation site. It is a platform that is meant for collaborative equity research. Please desist from posting such requests.
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OK got it i will keep in mind
Release of pledged shares :
JM financial has released all ( 5.22%) of the pledged shares.
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Clarification on deal with zee is one pendig item.
Other thing is how could promoters sell their shares even when they were pledged? They must have relesed the pledge by some other means and they havent informed exchanges about it ?
“Board of directors of the company today has accorded in-principle approval for exploring consolidation options with Tree House,” says Umesh Pradhan, CFO of Zee Learn.
Read more at: http://www.moneycontrol.com/news/business/zee-learn-vs-tree-house-who-isbig-fish_4462961.html?utm_source=ref_article
it again started to low…any bad news flow or just temporary profit booking?
I did not find anywhere any news on this.
Release of pledged shares:
Capital first has released all 44,600 (10.54% of total share capital) of the pledged shares.
My trust on myself has started coming back! Though my average is quite high but I am glad that I averaged 
More like a sale of pledged shares, right? This is bad for the company and the promoters, especially if other lenders take the cue.
That is what I was trying to understand, @Lynchfan. Does a release of pledged shares in the open market (see the left column of that screenshot) not amount to a sale, in this case.
A pledge can be released either by the loan borrower paying back the loan and taking back the pledged shares, or the shares being sold in the open market by the lender, because the borrower is unable to provide additional collateral, should the lender so request.
In this case it seems it is the latter. Please clarify, if you know the answer. Thanks.
The pledged shares are released bcoz the loans are repaid by the promoters.
Please reread hazariwalapu 's and my post on this issue, it will give you some clarity . It has played out the same way. The promoters sold their unpledged shares - 9.5% of total outstanding shares . At a price of Rs 200.5/share via bulk deal . They used this money to repay the loans to the lenders. The lenders have released or given back the shares to the promoters.
Now the promoter holding is at 19-20.5% . The coming q3 shareholding pattern disclosure will confirm this.
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Summary of Shares pledge, released and sale since 1st Oct’15
Date-wise Pledge created Since 1st Oct’15
Date-wise Pledge Released Since Oct’15
Promoter Sold in total 4cr shares (Geeta - 247000 and Rajesh&geeta - 153000) on 3rd Dec’15.
From the summary table - promoter pledge has come down drastically from 43.2% as of Sep’15 to 0.3% as per my workings based on disclosures company has made on BSE
I think @Lynchfan and @hazariwalapu indicated, and it gets clearer that sale of shares is primarily to release shares
Hope this help
Disclosure: not invested, will monitor further developments before taking a plunge…inclined to invest
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