(Hat Tip:Jagadeeswaran)
If the promoter is a
Raju or a Reddy
Better sell quickly
Before you lose your “chaddi”
-Old Dalal Street saying
Another example to buttress this point is that of Amara Raja Batteries.
Amara Raja is seeking approval through a postal ballot, that ends on Friday, for entering into a lease agreement with Amara Raja Infra Pvt Ltd (ARIPL) to “take on lease land measuring 62 acres for a period of 99 years for total consideration of Rs 40.30 crore with effect from October 1”.
The land is in Andhra Pradesh’s Rayalaseema region. The new lease is in the vicinity of Amara Raja’s existing premises, part of the proposed 482 acres of an industrial park being developed by ARIPL. The company has undertaken expansion for enhancing the capacity in both industrial and automotive batteries at Nunegundlapalle village, Bangarupalyam mandal, in Chittoor district.
These facilities have already been put up on 100 acres of land taken on a 99-year leases from ARIPL. The listed firm’s promoters, Ramachandra Galla and Jayadev Galla, are directors of ARIPL and with their relatives own all the paid-up capital-from BS
So Amara Raja wants to pay its promoters upfront for a 99 year lease.
The above ditty should now be modified to:
If the promoter is a
Galla,Raju or a Reddy
Better sell quickly
Before you lose your “chaddi”
6 replies on “Another example of why shareholders are wary of Andhra Promoters”
I am from Andhra and Reddy community. I am against corruption in all forms, but felt bad that u published this write up, relating corruption to community. Don’t u think this is biased write up? You could have published the same, by just talking about wrong doing of amar raja promoters. Tell me one state or country or region or community free of corruption.
No offense meant to any community.It is true that crooks exist in every community but there is widespread distrust of Andhra promoters in aggregate owing to their poor corporate governance record.
I fully agree with rams view.It is biased against some region and community.How many such examples he wants me to show from Gujarat,Rajasthan,Madhyapradesh,Himachal pradesh?or even Mumbai? At the same time these people are forgetting that cos from Andhra has created wealth and hence even now investing community flocks around Hyderabad.Dr,Reddy,Auro Pharma,Ncc,Divis labs,granuels, hav all created wealth for investors.Pl.refrain from making such cheap comments.
just look this family takes 10% cut of companies’ profit .. there are other related party transactions .. I wounder if promoters are required at all .. looking their business empire, political interest how much time they actually give to this business .. or require to give.
Have you noticed … 8% votes got casted against this proposal, more then 20% of total casted votes.
Crooks exist everywhere not just AP. Take a look at delhi based companies. There are several wealth creators from Hyderabad like kaveri seds, vst ind, aurobindo, Avanti, natco, dr reddys, divis….
if you are not comfortable with amar raja, pl don’t invest. no need to generalize. amaraja with all these known promoter issues has been a great wealth creator.
All the scare is just because of one family from pulivendala.Just matter of time they go “Jaya” way. Pl.don’t blame all Reddy’s.They are great contributors for the state.