Another example of why shareholders are wary of Andhra Promoters

(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”


Having the TaxMan as your fellow shareholder

I had blogged earlier as how PSU Banks owing equity stakes in companies are a red flag.

But it appears that there are some wonderful(!) companies out there which have the TaxMan as a significant shareholder !

Symbol Entity # of Shares % Date End
JVLAGRO Tax Recovery Officer 6 Kanpur 1700000 1.01 201406
MAGNUM LTD Tax Recovery Officer Range 9 Ahmedabad 71900 1.13 201406

Many Thanks to Vishal for pointing out Magnum Ltd