Just noticed Virinchi is on the radar again and want to warn new investors about this stock. As a novice, I’d invested heavily based on the hospitals story and ended up burning my fingers badly. This is an extremely shady/fraudulent company with continuous promoter dilution, dressed up numbers and weak management. I exited at a loss a while back and wouldn’t touch it with a barge pole - sharing some notes from calls I had with their ex employees who are IIM grads - these helped me make up my mind to book my losses.
The recent announcement of 525 cr warrant issuance to unknown entities is exactly what Virinchi and other junk caps did in the 2017 small cap bubble… Spin a story and announce warrants at significant premium to current price, Retail jumps in, money never really comes in, and insiders exit at the top. Look at the equity history of Virinchi and you will see that promoters have issued warrants to themselves every year with no clear use of funds, never bought a single share from the market even when it fell to sub 20 levels, and sold in the market when it suited them.
Re their hospitals business, it has been banned multiple times from treating Covid patients for medical negligence, surplus billing etc.
disc. No position