How to screw shareholders- Bagrrys Edition

Bagrry’s India is a leading manufacturer of breakfast cereals and cornflakes

Their Notice of Shareholder Meeting contains this astounding excerpt:

Guess the promoters want to have the minority shareholders for breakfast !

2 replies on “How to screw shareholders- Bagrrys Edition”

Well, the must have learnt from Those. Essar Steel did it years ago. They covered part of equity capital held by non-promoter shareholders to Preference capital. Thereafter, issued equity shares to promoters at par and ensured almost total equity holding for themselves. But now, apparently, providence is paying them back. Hopefully, they will soon be losing the entire company, the way they list Essar Oil!

Baggry India Shareholders can retain their Equity Shares

It is strongly Recommended that Shareholders retain their Equity shares by writing ( by Registered Post / Speed Post ) to the Company in this regard under this provision

Page 10

i v It is clarified that an outside/non-promoter shareholder is entitled to retain his/her/its equity shareholding in the Transferee Company by giving a notice of such intention to the Transferee Company any time up to the record date to be fixed for such purpose. In all the cases where the Transferee Company receives intimation from the non-promoter Shareholders to retain their equity shareholding in the Transferee Company, equity shares with respect to all such shareholders will not be cancelled and will not be replaced with 8% non-cumulative compulsorily redeemable Preference Shares

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